ECONOMIC EFFICIENCY AND ECONOMIES OF SCALE IN SWINE PRODUCTION: THE CASE OF SANTA CATARINA

Abstract

Based on a study conducted by the Centro Nacional de Pesquisa de Suínos e Aves of EMBRAPA with cooperation of EMATER-SC a sample of swine production farms, the relationship between size and costs is examined. The analysis indicates that relatively small farms can achieve the cost savings associated with size. Some sources of inefficiency are examined. It was found that allocation of labor, the average productivity of the fixed factor, sows, and the use of production infrastructures are the most important contributors to economic efficiency.