
doi: 10.3382/ps.0650441
Abstract Technical efficiency of operating input utilization for 165 hen and 200 tom turkey flocks was measured using the Farrell efficient unit isoquant technique. For each sample by sex, flocks were arrayed by whether they fell into the range of increasing (IRS), constant (CRS), or decreasing (DRS) returns to size. Technical efficiency was measured for each flock by IRS, CRS, and DRS group. Results showed all groups to be highly efficient on average, with mean values of technical efficiency ranging from 93.6 to 97.0%. Hypothesis tests for equality of means showed no significant difference between CRS and DRS groups and between CRS and IRS groups for the hen flocks. The CRS group had a significantly smaller mean than the DRS group. For toms, the CRS group had a significantly larger mean than the IRS group and a significantly smaller mean than the DRS group. Grower payment, received per pound of marketable turkey produced, was regressed on the measures of technical efficiency and other identifiable characteristics of the flocks. A 1% increase in technical efficiency resulted in increases of $.0017 and $.0018/pound in grower payments for hen and tom flocks, respectively. At the mean grower payment, this represents increases of $217.42/flock for hens and $407.07/flock for toms. Assuming a 1% increase in efficiency translates into a 1% reduction in contractor operating input production costs, the total benefit from a 1% increase in efficiency was $510.95/flock for hens and $909.96/flock for toms. Hen and tom growers received 43 and 45% of the benefits, respectively. Relationships between some of the other flock characteristics and grower payment were significant, but their independent effects were relatively small.
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