Changes and Factors Determining the Efficiency of Cattle Farming in the State of Pará, Brazilian Amazon

Abstract

Livestock production in the Brazilian state of Pará, located in the Amazon biome, faces challenges related to sustainable production chains and competitive production systems. Historically, expansion of pastures has led to environmental pressures and low productivity. The objective is to evaluate changes in cattle raising efficiency in the microregions of Pará state and identify the factors contributing to efficient cattle production at the state level. The data analysis techniques used include Data Envelopment Analysis, Malmquist Index, and Tobit Regression. The study found that, on average, there was a marginal improvement in livestock efficiency in Pará over the analyzed years, increasing from 0.75 (75%) in 2006 to 0.76 (76%) in 2017. However, nine out of 17 microregions showed improvement in individual efficiency, while five showed a decline. Non-family agriculture, livestock credit, and land prices were identified as factors that negatively contributed to the activity’s inefficiency, while specialization in soybeans and deforestation were factors that positively contributed to inefficiency. The study suggests that financial support for technological and infrastructure improvements, more rigorous environmental policies, and a more competitive environment can further contribute to improving the efficiency of cattle farming in Pará.