Efficiency and selection of benchmarks in milk production in Minas Gerais - Brazil

Abstract

This study proposes to identify efficient production units in Brazilian dairy farming. For this purpose, Data Envelopment Analysis and its extensions were applied on the information gathered at 659 milk producing properties. The results obtained reveal the importance of technical efficiency at improving technical and economic performance of such properties. It is observed that the main benchmarks present higher results than the averages of the efficient properties. These results demonstrate the importance of working efficiently and that efficient practices should be disseminated in the dairy segment, directing the programs of rural extension and technology diffusion, creating a virtuous and beneficial cycle, not only for the producer, but for the whole milk production chain.