Technical Efficiency of Cooperative and Non-Cooperative Dairies in Poland: Toward the First Link of the Supply Chain

Several studies conducted in various countries have addressed the technical efficiency of dairies. However, there is a paucity of research on the technical efficiency of dairies in Poland, particularly in relation to their legal form (i.e., cooperatives vs. non-cooperatives). The existing literature...

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Main Authors: Katarzyna Ziętek-Kwaśniewska, Maria Zuba-Ciszewska, Joanna Nucińska
Format: Article
Language:English
Published: MDPI AG 2022-01-01
Series:Agriculture
Subjects:
Online Access:https://www.mdpi.com/2077-0472/12/1/52
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author Katarzyna Ziętek-Kwaśniewska
Maria Zuba-Ciszewska
Joanna Nucińska
author_facet Katarzyna Ziętek-Kwaśniewska
Maria Zuba-Ciszewska
Joanna Nucińska
author_sort Katarzyna Ziętek-Kwaśniewska
collection DOAJ
description Several studies conducted in various countries have addressed the technical efficiency of dairies. However, there is a paucity of research on the technical efficiency of dairies in Poland, particularly in relation to their legal form (i.e., cooperatives vs. non-cooperatives). The existing literature also does not provide insights into the technical efficiency of these entities with respect to different regions’ milk production capacity. Therefore, this paper aims to: (1) evaluate and compare the technical efficiency of cooperative and non-cooperative dairies in Poland, and (2) examine dairies’ technical efficiency due to spatial disparities in milk production potential. We use data envelopment analysis (DEA) to investigate the technical efficiency of 108 dairies in Poland for the year 2019. The milk production capacity of provinces is examined by applying the zero unitarization method. The results show that when assuming constant returns to scale (CRS), dairy cooperatives are less technically efficient than non-cooperatives, whereas when assuming variable returns to scale (VRS), these differences are not statistically significant. For inefficient dairies, we observe the greatest potential for improvement in labor costs and depreciation. Both cooperatives and non-cooperatives operate mostly under decreasing returns to scale. Thus, the potential for enhancing the technical efficiency of dairies through the consolidation process seems to be exploited. Our findings reveal that the technical efficiency of dairies in Poland is not differentiated by regional milk production potential.
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spelling doaj.art-7afa4f4a1e39434a88303e8f43e64a852023-11-23T12:35:26ZengMDPI AGAgriculture2077-04722022-01-011215210.3390/agriculture12010052Technical Efficiency of Cooperative and Non-Cooperative Dairies in Poland: Toward the First Link of the Supply ChainKatarzyna Ziętek-Kwaśniewska0Maria Zuba-Ciszewska1Joanna Nucińska2The Institute of Economics and Finance, Faculty of Social Sciences, The John Paul II Catholic University of Lublin, Al. Racławickie 14, 20-950 Lublin, PolandThe Institute of Economics and Finance, Faculty of Social Sciences, The John Paul II Catholic University of Lublin, Al. Racławickie 14, 20-950 Lublin, PolandThe Institute of Economics and Finance, Faculty of Social Sciences, The John Paul II Catholic University of Lublin, Al. Racławickie 14, 20-950 Lublin, PolandSeveral studies conducted in various countries have addressed the technical efficiency of dairies. However, there is a paucity of research on the technical efficiency of dairies in Poland, particularly in relation to their legal form (i.e., cooperatives vs. non-cooperatives). The existing literature also does not provide insights into the technical efficiency of these entities with respect to different regions’ milk production capacity. Therefore, this paper aims to: (1) evaluate and compare the technical efficiency of cooperative and non-cooperative dairies in Poland, and (2) examine dairies’ technical efficiency due to spatial disparities in milk production potential. We use data envelopment analysis (DEA) to investigate the technical efficiency of 108 dairies in Poland for the year 2019. The milk production capacity of provinces is examined by applying the zero unitarization method. The results show that when assuming constant returns to scale (CRS), dairy cooperatives are less technically efficient than non-cooperatives, whereas when assuming variable returns to scale (VRS), these differences are not statistically significant. For inefficient dairies, we observe the greatest potential for improvement in labor costs and depreciation. Both cooperatives and non-cooperatives operate mostly under decreasing returns to scale. Thus, the potential for enhancing the technical efficiency of dairies through the consolidation process seems to be exploited. Our findings reveal that the technical efficiency of dairies in Poland is not differentiated by regional milk production potential.https://www.mdpi.com/2077-0472/12/1/52technical efficiencycooperativesdairy processing sectorsustainabilitymilk production capacitysupply chain
spellingShingle Katarzyna Ziętek-Kwaśniewska
Maria Zuba-Ciszewska
Joanna Nucińska
Technical Efficiency of Cooperative and Non-Cooperative Dairies in Poland: Toward the First Link of the Supply Chain
Agriculture
technical efficiency
cooperatives
dairy processing sector
sustainability
milk production capacity
supply chain
title Technical Efficiency of Cooperative and Non-Cooperative Dairies in Poland: Toward the First Link of the Supply Chain
title_full Technical Efficiency of Cooperative and Non-Cooperative Dairies in Poland: Toward the First Link of the Supply Chain
title_fullStr Technical Efficiency of Cooperative and Non-Cooperative Dairies in Poland: Toward the First Link of the Supply Chain
title_full_unstemmed Technical Efficiency of Cooperative and Non-Cooperative Dairies in Poland: Toward the First Link of the Supply Chain
title_short Technical Efficiency of Cooperative and Non-Cooperative Dairies in Poland: Toward the First Link of the Supply Chain
title_sort technical efficiency of cooperative and non cooperative dairies in poland toward the first link of the supply chain
topic technical efficiency
cooperatives
dairy processing sector
sustainability
milk production capacity
supply chain
url https://www.mdpi.com/2077-0472/12/1/52
work_keys_str_mv AT katarzynazietekkwasniewska technicalefficiencyofcooperativeandnoncooperativedairiesinpolandtowardthefirstlinkofthesupplychain
AT mariazubaciszewska technicalefficiencyofcooperativeandnoncooperativedairiesinpolandtowardthefirstlinkofthesupplychain
AT joannanucinska technicalefficiencyofcooperativeandnoncooperativedairiesinpolandtowardthefirstlinkofthesupplychain