Characterization and Technical Efficiency of Portuguese Wine Farms

Abstract

This study aims to characterise the evolution of vineyard production, to measure the levels of technical efficiency, and to relate these with farmers and farms attributes. The sample used is composed of a panel of vineyard farms, for the period 2000-2005, belonging to Portuguese Alentejo region. The methodology used to estimate technical efficiency, was the stochastic production frontier. The results showed that there are room to improve the levels of technical efficiency in input use and that efficiency is variant with time. It was observed that technical efficiency increases with economic size and net farm income, as well as with family entrepreneurship.