Measuring and improving the effectiveness of the cultivated tomato production in greenhouses of Lushnja district

Mariana Nikolla, Pashk Lekaj, Jona Mulliri
Fakulteti i Ekonomisë dhe Agrobiznesit, UBT

 

Abstract
The problem of evaluating the effectiveness of production in a particular section is essential for both theoreticians of the economy and economic policy makers. DEA (data envelopment analysis) is a linear programming based methodology, determining a non-parametric mathematical model. DEA embodies one of the latest models of the most important mathematical programming applications in economics, which is used to measure and improve the efficiency of production activities within a company (farm) or companies (holdings) within a region. In this article, DEA model will be applied to analyze the efficiency of 16 units (municipalities of Lushnja district), lying on the production of greenhouse tomato culture. Selected Output: Revenue of tomato cultivated in greenhouses (kv/dyn). Inputs involve: manure (kv/dyn), fertilizer (kv/dyn), liquid crystalline fertilizers (kv/dyn), pesticides (kv/dyn), water (m3/dyn). Efficiency analysis demonstrates that the units: 1, 4, 5, 6, 7, 9, 11 and 12 are efficiency operated by DEA 100%, while the other units: 2, 3, 8, 10, 13, 14, 15 and 16 are less efficient. The target in DEA is that an inefficient unit should be able to operate as efficiently as hypothetical composite unit, formed by a linear combination of efficient units. For instance, unit 2 (Municipality of Divjakë) has a score of 94.98% efficiency, so for DEA it is inefficient. The analysis of efficiency, referring to the results of the sensitivity ratio (for the Municipality of Divjakë), the absolute value of shadow prices are the composed unit weights, which result is more efficient than the unit in inquiry 2. For any inefficient unit, we have to determine the linear combination of efficient units which results in a composite unit, more efficient than the inefficient unit.

Keywords: Efficiency, production, DEA model, compound unit, Lushnja district

 

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