Unified analysis of the technical efficiency of sugar production in Mexico
DOI:
https://doi.org/10.29312/remexca.v17i1.3958Keywords:
data envelopment analysis, resource and input management, stochastic frontier, technical inefficiencyAbstract
In Mexico, sugarcane is an important crop because it is the primary input for sugar production and impacts employment generation in 15 states and 272 municipalities. This study aimed to estimate the technical efficiency of sugar mills of the 2022-2023 harvest in the production of standard sugar. The methodology used was the stochastic nonparametric envelopment of data (StoNED) analysis, which unifies the approaches of data envelopment analysis and stochastic frontier analysis. The results showed the existence of heterogeneity in the relative technical efficiency of sugar production across the mills. Five groups of mills were identified: a) ten mills with optimal efficiency; b) 25 mills with high relative efficiency; c) four mills at the threshold of high relative efficiency; d) five mills with potential for improvement; and e) a mill in a critical situation due to its high technical inefficiency (26%), which was El Carmen. The average efficiency of agribusiness was 96%. It is concluded that there is a regularity in the behavior of the El Carmen and El Mante mills as two decision-making units, which, given their high inefficiency in the production of standard sugar, due to causes attributable to their management and production practices, could stop operating temporarily or permanently.
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