Efficiency of European Union wheat producers on world market and analysis of its determinants based on the data envelopment analysis method

Abstract

The war in Ukraine has shown that the worldwide food security can be easily shaken. This article focuses on an evaluation of European Union (EU) wheat producers on the world market. Would EU producers maintain their competitive position without direct payments? What changes need to be introduced to improve the position of EU producers on the world market? To answer these questions, a data envelopment analysis has been applied. It is indicated that the competitive position of EU wheat producers is still strongly dependent on direct payments and that mechanisation costs are a key area for improved efficiency in wheat production in Europe.

Keywords

• competitiveness
• data envelopment analysis
• direct payments
• luxembourg common agricultural policy (cap) reform
• super-efficiency data
• super-efficiency model
• wheat production