Efficiency measures for a non-homogeneous group of family farmers

Abstract

DEA models assume the homogeneity of the units under evaluation (DMUs). However, in some cases, the DMUs use different production technologies. In such cases, they should be evaluated separately. In this paper we evaluate the efficiency of family farmers from the Brazilian Eastern Amazon, who use different agricultural production systems. We propose an alternative algorithm to assess the global efficiency, taking into account the non-homogeneity. The results show that the farmers that use the classical technology are more efficient than those considered 'environmental friendly', as we took into account only the economic point of view. © 2012 Brazilian Operations Research Society.