Production Efficiency and Organization of Czech Agriculture

ERIK MATHIJS1, LIESBETH DRIES1, TOMAS DOUCHA2 and JOHAN F. M. SWINNEN3

1 Katholieke Universiteit Leuven, Department of Agricultural and Environmental Economics, Leuven, Belgium
2 Research Institute of Agricultural Economics (VUZE), Prague, Czech Republic
3 European Commission (DG Economic and Financial Affairs) and Policy Research Group, Department of Agricultural and Environmental Economics, Katholieke Universiteit Leuven, Belgium

Abstract

MATHIJS, E., L. DRIES, T. DOUCHA and J. F. M. SWINNEN, 1999. Production efficiency and organization of Czech agriculture. Bulg. J. Agric. Sci., 5:312-324

In this paper, measures of technical and scale efficiency are calculated using Data Envelopment Analysis to test the differences between organizational forms (individual farms, cooperatives and companies) and production orientations (crop, livestock and mixed farms) in Czech agricultural production The calculations show that individual farms are technically more efficient than cooperatives in crop and mixed production, but not in livestock production. Companies perform better than cooperatives in crop production, but not in mixed production. While individual farms are more scale efficient than cooperatives and companies in livestock production, they are not in crop production. An L-shaped average cost-curve is found for all production orientations.

Key words: Czech agriculture, efficiency and organization, individual farms, cooperatives, companies