TECHNICAL EFFICIENCY OF MACEDONIAN PIG FARMS

The economic transition and market globalization processes has triggered structural changes in the Macedonian agriculture. Pig producers face challenges to meet the new market requirements and regulations which cause inefficient and less competitive production compared to foreign markets. This paper aims to identify the level of technical efficiency on pig farms in the Republic of Macedonia. Data Envelopment Analysis approach is used to measure the exact quantity of inputs used in the production in relation to a given quantity of output. Furthermore, the data are analysed by making comparative analyses of the managerial behaviour and other non-measurable variables that influence the efficiency. The results determine what managerial activities influence on the efficiency. They indicate the type and level of inputs that need to change and the quantity of output that need to increase for the farms to reach the same technical efficiency as the most successful farmers