This study analyzes the efficiency of integrated pig farming businesses in South Korea using Data Envelopment Analysis (DEA). The primary objective is to measure efficiency across different business types and identify key determinants affecting their ...
This study analyzes the efficiency of integrated pig farming businesses in South Korea using Data Envelopment Analysis (DEA). The primary objective is to measure efficiency across different business types and identify key determinants affecting their performance. Unlike broiler integration businesses, pig farming integration has shown slower progress, necessitating an in-depth evaluation of efficiency disparities and structural challenges. The study employs the DEA BCC input-oriented model to assess the efficiency scores of 81 integrated pig farming businesses based on financial data from 2022. The input variables include tangible assets and cost of goods sold, while the output variable is total sales revenue. The results indicate that large and mid-sized enterprises exhibit higher efficiency compared to small businesses, suggesting economies of scale. Additionally, cooperative-type businesses outperform corporate-type businesses, highlighting the impact of democratic decision-making and collaborative management structures on efficiency. The study provides policy implications for enhancing the compe-titiveness of pig integration businesses. Policymakers should consider strategies to support small businesses in achieving economies of scale, promote cooperative models, and optimize supply chain operations.