Technical Efficiency and Allocative Efficiency of Beef Cattle Fattening in the Content of Digital Economy: An Empirical Study Based on Survey in China

Abstract

This study applies data envelopment analysis (DEA) to gauge technical efficiency and allocative efficiency in China’s beef cattle-fattening industry using survey data. The Tobit model considers the salient determinants that drive these efficiencies. The results indicate that (1) large-scale farms exhibit robust TE and pure technical efficiencies (PTE), whereas scale efficiencies (SE) diverge significantly between large and medium-sized operations. The cost efficiency (CE) of smaller farms lags behind their larger counterparts, with the latter displaying greater revenue efficiencies (RE) and profit efficiency (PE). (2) The influence of identical factors on the efficiency of beef cattle fattening production can vary, sometimes antithetically, across different scales. Local policy interventions must be differentiated according to farm type and size. (3) The unique context of China’s national conditions and the status quo of livestock farming render the dual implementation of environmental regulations and technological subsidies less viable for Chinese beef cattle farms. These entities should prioritize production over technological innovation and advancement. Policymakers should adopt strategies such as targeted skill/technological training for farm managers at particular scales of operation. This could represent a critical trajectory to augment the efficiency of beef cattle production and increase beef yield in China.

Keywords

• economic efficiency
• technical efficiency
• allocative efficiency
• beef cattle fattening