A Study on the Management Efficiency of ivestock Wholesale-Markets ── DEA Approach
Date Issued
2009
Date
2009
Author(s)
Lin, Shen-Hua
Abstract
Livestock wholesale-market played a crucial role in Taiwan’s economic growth process. As the GDP grew and the demand for animal protein was on the rise, pig farming industry in Taiwan flourished rapidly. And pork also became the main source of animal protein for Taiwanese. As the pig farming industry grew substantially along with the booming economy, without reaching certain mass production volume, economies of scale wouldn’t be reached. Owing to the limit of Taiwan’s domestic market demand, it would be tough to compete with international livestock wholesale-market After joining WTO （World Trade Organization）, livestock wholesale-market in Taiwan even suffered from more severe competition.aiwan’s government approved the first private electric slaughter house in 1968. This was the initial stage for Taiwan’s pig slaughter industry upgraded from traditional manual slaughter to electric way. However, after practical operation for a while, carcass transportation was found time consuming and usually wasn’t able to deliver the pork to retail market in time to ensure the quality. In view of this, the government then set up electric slaughter houses in every county in 1979 based on a new project called “the scheme for county meat industry”, which could improve meat hygiene, transportation and marketing efficiency.xclusive of Taipei City and Kinmen County, the other 22 livestock wholesale-markets were analyzed by DEA (data envelopment analysis) for their efficiency. Constructional area, operating expenses, number of market users and management expenses were taken as input variables. Traded number of pigs, management income and income from slaughter service were considered as output variables. Based on the results of efficiency and sensitivity analyses, managers would know the production efficiency of livestock wholesale-market and whether the resources were applied efficiently. The results could also be taken as the reference for decision making to ensure resources were allocated properly. In particular, Taiwan is facing competition from imported meat, so it is necessary to improve operating efficiency to increase the profit for livestock wholesale-market his study was aimed at using DEA to analyze the operation efficiency in livestock wholesale-market, overall technical efficiency in each market, pure technical efficiency and scale efficiency value. And then the returns-to-scale was analyzed to see if the scale was increasing progressively or decreasing progressively, followed by a sensitivity analysis. In general, the results revealed that the efficiency of the livestock wholesale-market was increasing gradually every year. Half of the livestock wholesale-markets were improved from progressively decreasing or increasing returns-to-scale to constant returns-to-scale, which was considered the most suitable operation size for achieving economies of scale, revealing that livestock wholesale-markets of progressively increasing or decreasing returns-to-scale could now control their production scale quite accurately then before.eywords: DEA (data envelopment analysis), Operation Efficiency, Efficiency Analysis, Sensitivity Analysis
Subjects
DEA
Operation Efficiency
Efficiency Analysis
Sensitivity Analysis
Type
thesis
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