2021: Just Accepted
Original Research Article

Organic and Conventional Grape Growing in Italy: a Technical Efficiency Comparison Using a Parametric Approach

Federica Cisilino
CREA – Council for Agricultural Research and Economics Research Centre for Agricultural Policies and Bio-Economy c/o University of Udine Via delle Scienze 206 33100 – Udine (Italy)
Fabio A. Madau
Department of Agricultural Sciences University of Sassari Viale Italia 39/a 07100 – Sassari (Italy)
Roberto Furesi
Department of Agricultural Sciences University of Sassari Viale Italia 39/a 07100 – Sassari (Italy)
Pietro Pulina
Department of Agricultural Sciences University of Sassari Viale Italia 39/a 07100 – Sassari (Italy)
Brunella Arru
Department of Agricultural Sciences University of Sassari Viale Italia 39/a 07100 – Sassari (Italy)
Published July 14, 2021
Keywords
  • Stochastic frontier analysis, technological homogeneity, inefficiency sources
How to Cite
Cisilino, F., Madau, F. A., Furesi, R., Pulina, P., & Arru, B. (2021). Organic and Conventional Grape Growing in Italy: a Technical Efficiency Comparison Using a Parametric Approach. Wine Economics and Policy. https://doi.org/10.36253/wep-10384

Abstract

Several studies have focused attention on the differences between organic and conventional farms in terms of efficiency, and controversial findings have resulted from these applications. One source of controversy concerns the assumption about the frontier(s) adopted for the comparison: a common frontier or two separate frontiers for organic and conventional methods? This paper aims to estimate technical efficiency in Italian grape farming. A stochastic frontier analysis (SFA) was applied to a sample of 531 farms (440 conventional and 91 organic farms) collected from the Farm Accountancy Network Database. Among others, a test for evaluating whether a unique or separate frontier was performed. The findings suggest that organic and conventional farms would lie on a common frontier and that organic farms have greater capacity than conventional farms in using their own technical inputs (efficiency amounts to 83.6% and 77.8%, respectively). A number of implications derive from these findings.