ASSESSING TECHNICAL EFFICIENCY IN WINE GRAPE PRODUCTION: THE CASE OF SOUTH BRAZIL

Abstract

The aim of this study is to calculate the technical efficiency of wine grape production in the South region of Brazil. Specifically, our main objective is to understand the key farm and farmer characteristics that affect agricultural productivity at the municipality level. The data from IBGE’s Brazilian Agricultural Census 2017 are used. The analysis is conducted in two stages. In the first stage, production efficiency using a VRS DEA model is estimated. In the second stage, a Tobit model is used to evaluate the main drivers that influence farm efficiency. The results show that maximum efficiency can be achieved in any of the three South Brazilian states. Efficiency is strongly related to factors such as the size of the vineyard. Moreover, the farmer’s age, as well as the participation of women and family members in management, also contribute positively to higher levels of farm efficiency.

Keywords

• data envelopment analysis
• regression analysis
• vineyards
• winegrapes
• efficiency
• brazil