Efficiency analysis of viticulture systems in the Portuguese Douro region

Abstract

Purpose The purpose of this paper is to estimate and analyse the technical efficiency (TE) component of productivity for a sample of winegrowers from the Douro Demarcated Region in Portugal. Design/methodology/approach The data were collected through face-to-face surveys and includes a sample of 110 farmers’ vineyards with specific input-output information and other data about production systems during the year of 2017. The authors use a two-stage data envelopment analysis using bootstrap techniques to obtain TE scores in the farmers’ vineyards and to examine the determinants of its efficiency. Findings The results show that some farmers’ vineyards have a low efficiency level and that there are essential determinants of the production system, which can influence its efficiency. This suggests considerable opportunities for improvement of wine grape productivity through better use of available resources considering the state of technology. Originality/value This work has overcome the lack of data in the farmers’ vineyards, the lack of efficiency studies in the region and also allowed to evaluate the production systems and to assess their impact on efficiency.