TECHNICAL EFFICIENCY OF BRAZILIAN EXPORTERS OF ANIMAL PROTEIN

The objective of this study is to evaluate the technical efficiency of Brazilian companies that operate in the international market of animal protein (beef, pork and poultry). The six business groups of interest are JBS – Friboi, BRF – Brasil Foods, Marfrig, Minerva, Minupar and Excelsior. We fit a production function for the oligopoly assuming a stochastic frontier model with technical effects affecting the inefficiency component. The data are from the consolidated balance sheet of the group for the period that starts in the first quarter of 2007 and ends in the third quarter of 2011. Overall, Brasil Foods shows the worst performance. The stocks of living animals (beef, pork and poultry) negatively affect the production function and the subprime crisis negatively affects the technical efficiency of production.