The Efficiency Improvement of Central European Corporate Milk Processors in 2008 - 2013

No 4/2015, December
pp. 175-188

Špička, J. (2015) “The Efficiency Improvement of Central European Corporate Milk Processors in 2008 - 2013”, AGRIS on-line Papers in Economics and Informatics, Vol. 7, No. 4, pp. 175 - 188, ISSN 1804-1930.


The aim of the article is to evaluate the technical efficiency improvement of the Czech, Polish and Slovak corporate milk processors in the period 2008 – 2013 to identify the possible source of low competitiveness of the Czech and Slovak milk processors towards Poland. The analysis was based on individual data of 130 milk processors (NACE 10.51). The sample covers medium-sized and large companies only. Deflated data on sales, material and energy costs, staff costs and depreciation were used as output and inputs for efficiency calculation. The DEA method was used for calculation of technical efficiency, Malmquist index estimated the efficiency change in time. Two-sample t-test and the analysis of variance enhanced by Sheffe’s test verified the statistical hypotheses. The results proved that the Czech and Slovak milk processors had lower efficiency improvement than Polish companies. Investment activity did not significantly affect the efficiency improvement. The Czech and Slovak milk processors should effectively use quite big amount of public subsidies from the Rural Development Programme in the period 2014 – 2020 to improve the efficiency since the Polish companies outstripped the Czech and Slovak companies in the period 2007 - 2013.


Competitiveness, DEA, financial ratios, Malmquist index.


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