Analysis of total factor productivity growth, technical efficiency and technological change in Iranian poultry industry

Today one of the most important issues of human societies is the growing population of the world and the provision of healthy and sufficient food for this growing population. Due to the limited resources of agricultural sector, the most appropriate solution to increase production and income in the agricultural sector is the optimal use of inputs by improving efficiency and productivity. In addition, the level of technology is also one of the factors affecting productivity growth. Studies show that most of the people in the world, and especially developing countries suffering from scarce of protein, so animals protein has important role in humans health and life and its quality and amount must be optimal. The poultry industry is the one of the most important protein source. Identifying the components of total factor productivity (TFP) and examining its changes in the poultry industry during the production process leads to more efficient production and productivity growth. Moreover, improving the total factor productivity can save production resources.

The objective of this research is analyze the total factor productivity growth, technical efficiency and technological change in the Iranian poultry industry. This study uses data envelopment analysis (DEA) method and Malmquist index to calculate the total factor productivity changes and analyze its components as well as the technical efficiency of broiler production units during the study period. Based on output oriented approach, Malmquist TFP index decomposed into technical efficiency changes (Maximum output from minimal input quantities), technological changes (changes in technology that lead to an increase in productivity), pure efficiency changes and scale efficiency changes. The Malmquist TFP index measures the TFP change between two data points by calculating the ratio of the distances of each data point relative to a common technology. An advantage of the Malmquist TFP index method is that it does not require price data for the analysis. The data used in this study are information about the amounts of inputs used in the production of chicken meat, including poultry feed, labor and energy, as well as the amount of production of this product for the period 1996-2017 that are taken from the Statistics Center of Iran about 28 provinces. DEEp 2.1 software was used to measure and analyze the TFP index.

The results showed that the technical efficiency average under the assumption of variable return to scale was 0.796. This means that production units can increase their production by 20.4% without changing the amount of their consumption inputs. Only the provinces of East Azerbaijan, Isfahan, Bushehr, Kohgiluyeh and Boyer-Ahmad, Mazandaran, Markazi and Hormozgan have achieved full technical efficiency. The average of scale efficiency for the studied provinces was 0.901. The highest scale efficiency is (1.000) belongs to East Azerbaijan and markazi provinces; as well as Hormozgan province with value of 0.563 has the lowest scale efficiency among the studied provinces. The results as well as showed that annual average growth of total factor productivity in Iran broiler farms is 17.7%, which is different in provinces. Kermanshah province has the highest TFP equal to 0.461 and Yazd and Ghom have the lowest TFP respectively. Total factor productivity growth has been negative only in Kohgiluyeh, Boyer-Ahmad and Markazi provinces. The study of productivity components indicate that the technology change with an average value of 14.1% is the most important factor in term of increasing the productivity of broiler farms during the study period. Technical efficiency change with an average value of 3.2% is the second factor affecting of TFP growth. Pure efficiency change and scale efficiency change with the average values of 2% and 1.1%, respectively are in the third and fourth place in terms of impact on productivity.

The findings from the analyses are that for achieving of high total factor productivity in Broiler chicken farms in Iran, we need more attention to technology in this part. In general, the development and promotion of technological symbols such as improved breeds, improve air conditioning, lighting and feeding systems can be considered to improve the total factor productivity. Also according to the findings poultry farms show a relatively large range to improve technical efficiency. Therefore, more efficient production methods, observance of educational and sanitary principles in order to reduce losses to improve technical efficiency seems necessary. Also low scale efficiency in some provinces is a serious problem and it is suggested to increase their efficiency by determining the optimal size of their performance. The findings from the analyses are that for achieving of high total factor productivity in Broiler chicken farms in Iran, we need more attention to technology in this part. In general, the development and promotion of technological symbols such as improved breeds, improve air conditioning, lighting and feeding systems can be considered to improve the total factor productivity. Also according to the findings poultry farms show a relatively large range to improve technical efficiency. Therefore, more efficient production methods, observance of educational and sanitary principles in order to reduce losses to improve technical efficiency seems necessary. Also low scale efficiency in some provinces is a serious problem and it is suggested to increase their efficiency by determining the optimal size of their performance. The findings from the analyses are that for achieving of high total factor productivity in Broiler chicken farms in Iran, we need more attention to technology in this part. In general, the development and promotion of technological symbols such as improved breeds, improve air conditioning, lighting and feeding systems can be considered to improve the total factor productivity. Also according to the findings poultry farms show a relatively large range to improve technical efficiency. Therefore, more efficient production methods, observance of educational and sanitary principles in order to reduce losses to improve technical efficiency seems necessary. Also low scale efficiency in some provinces is a serious problem and it is suggested to increase their efficiency by determining the optimal size of their performance