Czech J. Food Sci., 2022, 40(2):109-117 | DOI: 10.17221/172/2021-CJFS

Analysis of production and investment efficiency in the Mexican food industry: Application of two-stage DEAOriginal Paper

Martin Flegl ORCID...*,1, Carlos Alberto Jiménez-Bandala ORCID...2, Isaac Sánchez-Juárez ORCID...3, Edgar Matus4
1 Department of Industrial and Systems Engineering, School of Engineering and Sciences, Tecnologico de Monterrey, Mexico City, Mexico
2 Tourism Management and Marketing Division, Universidad Autónoma del Estado de Quintana Roo, Cancún, Mexico
3 Department of Social Sciences, Laboratory of Structural Problems of the Mexican Economy, Autonomous University of Juárez City, Ciudad Juárez, Mexico
4 Business School, Universidad La Salle México, Mexico City, Mexico

The food industry in Mexico is a precarious sector and lags behind other manufacturing industries, it is made up mainly of small and medium-sized enterprises. Its importance in the food assurance of the country requires strategic monitoring of the yield and efficiency variables that allow successful interventions to improve results. Commonly, the efficiency in the agriculture sector is evaluated as a one-stage data envelopment analysis (DEA) process using a specific set of variables. In this article, we applied a two-stage process to evaluate the efficiency in the Mexican food industry. The first stage evaluates the efficiency of the production, whereas the second stage evaluates the efficiency of investments in the sector. The process is demonstrated on a sample of 1 672 Mexican municipalities using data from 2014 and 2019 Census. The results indicate a growth in production efficiency with significant differences between regions. Moreover, the results also revealed very low investment efficiency in the whole food sector with a negative tendency.

Keywords: data envelopment analysis; agri-food sector; production efficiency; regional development; economic asymmetries; regional polarization

Published: April 27, 2022  Show citation

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
Flegl M, Jiménez-Bandala CA, Sánchez-Juárez I, Matus E. Analysis of production and investment efficiency in the Mexican food industry: Application of two-stage DEA. Czech J. Food Sci. 2022;40(2):109-117. doi: 10.17221/172/2021-CJFS.
Share...
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. Atici K.B., Podinovski V.V. (2015): Using data envelopment analysis for the assessment of technical efficiency of units with different specialisations: An application to agriculture. Omega, 54: 72-83. Go to original source...
    2. Ayvar Campos F.J., Navarro Chávez J.C.L., Zamora Torres A.I. (2018): The Mexican agricultural sector in the context of APEC: A data envelopment analysis with presence of 'bad outputs' (El sector agropecuario Mexicano en APEC: Un análisis a través de la envolvente de datos con presencia de bad outputs). Análisis Económico, 33: 125-143. (in Spanish) Go to original source...
    3. Bagchi M., Rahman S., Shunbo Y. (2019): Growth in agricultural productivity and its components in Bangladeshi regions (1987-2009): An application of bootstrapped data envelopment analysis (DEA). Economies, 7: 37. Go to original source...
    4. Becerril-Torres O.U., Rodríguez Licea G., Ramírez Hernández J.J. (2011): Technical efficiency of the agricultural sector in Mexico: An overview of data envelopment analysis (Eficiencia técnica del sector agropecuario de México: Una perspectiva de análisis envolvente de datos). Economía, 31: 85-110. (in Spanish)
    5. Carbajal Suárez Y., de Jesús Almonte L. (2017): Manufacturing labor in the Central Region of Mexico. An estimation by great division. Contaduria y Administracion, 62: 902-923. Go to original source...
    6. Charnes A., Cooper W., Rhodes E. (1978): Measuring the efficiency of decision making units. European Journal of Operational Research, 2: 429-44. Go to original source...
    7. Cooper W., Seiford L., Zhu J. (2011): Handbook on Data Envelopment Analysis. New York, US, Springer: 1-40. Go to original source...
    8. Dios-Palomares R., Martínez-Paz J. (2011): Technical, quality and environmental efficiency of the olive oil industry. Food Policy, 36: 526-534. Go to original source...
    9. Duman G.M., Tozanli O., Kongar E., Gupta S.M. (2017): A holistic approach for performance evaluation using quantitative and qualitative data: A food industry case study. Expert Systems with Applications, 81: 410-422. Go to original source...
    10. Hoang V.N., Alauddin M. (2012): Input-orientated data envelopment analysis framework for measuring and decomposing economic, environmental and ecological efficiency: An application to OECD agriculture. Environmental and Resource Economics, 51: 431-452. Go to original source...
    11. Ibrahim M.D., Ferreira D.C., Daneshvar S., Marques R.C. (2019): Transnational resource generativity: Efficiency analysis and target setting of water, energy, land, and food nexus for OECD countries. Science of the Total Environment, 697: 134017. Go to original source... Go to PubMed...
    12. INEGI (2014): Mexico - Economic Censuses 2014 (México - Censos Económicos 2014). National Institute of Statistics and Geography [Instituto Nacional de Estadística y Geograf ía (INEGI)]. Available at https://www.inegi.org.mx/programas/ce/2014/ (accessed June 1, 2021). (in Spanish)
    13. INEGI (2019): Mexico - Economic Censuses 2019 (México - Censos Económicos 2019). National Institute of Statistics and Geography [Instituto Nacional de Estadística y Geograf ía (INEGI)]. Available at https://www.inegi.org.mx/rnm/index.php/catalog/547 (accessed June 1, 2021). (in Spanish)
    14. INEGI (2020): Mexico - System of National Accounts (México - Sistema de Cuentas Nacionales). National Institute of Statistics and Geography [Instituto Nacional de Estadística y Geograf ía (INEGI)]. Available at https://www.inegi.org.mx/sistemas/bie/ (accessed June 1, 2021). (in Spanish)
    15. Isiordia-Lachica P.C., Valenzuela A., Rodríguez-Carvajal R.A., Hernández-Ruiz J., Romero-Hidalgo J.A. (2020): Identification and analysis of technology and knowledge transfer experiences for the agro-food sector in Mexico. Journal of Open Innovation: Technology, Market, and Complexity, 6: 59. Go to original source...
    16. Jiménez-Bandala C.A. (2018): Development in Southern Mexico: Empirical verification of the 'seven erroneous theses about Latin America'. Latin American Perspectives, 45: 129-141. Go to original source...
    17. Kao C., Hwang S.N. (2008): Efficiency decomposition in two-stage data envelopment analysis: An application to non-life insurance companies in Taiwan. European Journal of Operational Research, 185: 418-429. Go to original source...
    18. Krejèí I., Moulis P., Pitrová J., Tichá I., Pilaø L., Rydval J. (2019): Traps and opportunities of Czech small-scale beef cattle farming. Sustainability, 11: 4245. Go to original source...
    19. Kuo H.F., Chen H.L., Tsou K.W. (2014): Analysis of farming environmental efficiency using a DEA model with undesirable outputs. APCBEE Procedia, 10: 154-158. Go to original source...
    20. Marcikiæ-Horvat A., Radovanov B., Popescu G.H., Panaitescu C. (2019): A two-stage DEA model to evaluate agricultural efficiency in case of Serbian districts. Economics of Agriculture, 66: 965-974. Go to original source...
    21. Mardani M., Salarpour M. (2015): Measuring technical efficiency of potato production in Iran using robust data envelopment analysis. Information Processing in Agriculture, 2: 6-14. Go to original source...
    22. Meena S.R., Meena S.D., Pratap S., Patidar R., Daultani Y. (2019): Strategic analysis of the Indian agri-food supply chain. OPSEARCH, 56: 965-982. Go to original source...
    23. Moreno-Moreno J., Velasco Morente F., Sanz Díaz M.T. (2018): Assessment of the operational and environmental efficiency of agriculture in Latin America and the Caribbean. Agricultural Economics, 64: 74-88. Go to original source...
    24. Raheli H., Rezaei R.M., Jadidi M.R., Mobtaker M.B. (2017): A two-stage DEA model to evaluate sustainability and energy efficiency of tomato production. Information Processing in Agriculture, 4: 342-350. Go to original source...
    25. Raut R.D., Luthra S., Narkhede B.E., Mangla S.K., Gardas B.B., Priyadarshinee P. (2019): Examining the performance oriented indicators for implementing green management practices in the Indian agro sector. Journal of Cleaner Production, 215: 926-943. Go to original source...
    26. Revilla D., García-Andrés A., Sánchez-Juárez I. (2015): Identification of key productive sectors in the Mexican Economy. Expert Journal of Economics, 3: 22-39.
    27. Toma E., Dobre C., Dona I., Cofas E. (2015): DEA applicability in assessment of agriculture efficiency on areas with similar geographically patterns. Agriculture and Agricultural Science Procedia, 6: 704-711. Go to original source...
    28. Tom¹íková K., Hudeèková H., Tom¹ík K. (2019): Enhancing attractiveness of secondary agricultural education in the Czech Republic. Journal on Efficiency and Responsibility in Education and Science, 12: 135-145. Go to original source...

    This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International (CC BY NC 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content