Investigating technical efficiency and potential technological change in Dutch pig farming

This paper uses data envelopment analysis (DEA) to investigate the possibilities for improving the technical, economic and environmental performance of Dutch pig farms relative to currently applied technologies and relative to currently available but not yet applied technologies. First, the efficiency is computed relating observed pig farms to the current best practice frontier. This frontier is computed from a sample of observed pig farms, using DEA based on linear programming. Second, potential technological change is computed as the change of the frontier due to addition of virtual farms (based on technologies that are available but not applied in practice yet) to the dataset. It is found that the mean technical efficiency of farms is rather high relative to the currently available technologies. Overall technical performance increases slightly when new technologies are introduced. Environmental performance increases importantly when applying new technologies. In particular, the ammonia emissions can be reduced largely by utilising the up-to-date housing techniques.

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