EFFICIENCY ANALYSIS OF AGRICULTURAL COOPERATIVES IN THE STATE OF RIO GRANDE DO SUL

Abstract

This study has as main objective evaluate the efficiency in the 51 largest agricultural cooperatives in Rio Grande do Sul, by applying Data Envelopment Analysis (DEA). The data for this study were obtained from the annual reports provided by OCERGS. This entity provides, periodically, several reports with information about the cooperative sector. The data was collected from the 51 largest consolidated cooperatives referring to the years 2002, 2003 and 2004. This work used data envelopment analysis to assess the degree of efficiency in cooperatives through these three years. The focus of the work was on the total degree of efficiency, managerial efficiency and scale efficiency. The results show that the number of cooperatives analyzed is operating on a homogeneous and relatively high degree of efficiency throughout the period. It was identified that the biggest problem is not related to the degree of efficiency, but to the growing increase of idleness in the capital structure of cooperatives. Another important aspect is related to the fact that it was not identified a significant relationship between indicators of efficiency and profitability.