Heifer Retention Program in the Pantanal: a study with data envelopment analysis (DEA) and Malmquist index

Abstract

The objective of this study was to propose Data Envelopment Analysis (DEA) models and non-parametric Malmquist indexes to evaluate the efficiency of 11 livestock farms in the Pantanal region. These farms took out a loan from 'Fundo Constitucional de Financiamento do Centro-Oeste' - FCO (Constitutional Financial Fund for the Midwest), a line of credit for financing heifer retention. The beneficiaries were the farmers whose properties met the following conditions: farms located in the plain of Pantanal, with at least 50% of native pasture; farms that were part of managerial capacity building projects intended to ensure better management and animal performance indexes; and farms with pasture areas where the activity could potentially evolve. The management of the loan on 11 farms were studied in relation to the technology introduced in the period from 2004 to 2008. Five properties presented technical efficiency below 1, that is, the technical management efficiency with the objective to increase the cattle through heifer retention and the purchase of higher genetic quality heifers was not achieved. However, the index of technological progress was above 1 on all tested farms, which means that technology was in fact incorporated in all properties, which resulted in total factor productivity growth on all farms. The main objective was fully met, even on the technically inefficient farms.