The Power of Cooperation: Evaluating Dairy Farm Efficiency Using Bootstrap DEA

This study assesses the technical efficiency of dairy farms in the Region of Thessaly in Greece and explores the impact of cooperative participation on farm performance. The research is motivated by the need to enhance the competitiveness and sustainability of the livestock sector, particularly considering evolving economic and environmental challenges. The analysis is based on primary data collected at the farm level from 43 dairy cattle farms, of which 20 are formally registered members of recognized dairy cooperatives and 23 operate independently as non-cooperative farms. Technical efficiency was estimated using an output-oriented Data Envelopment Analysis (DEA) model with bootstrap correction. The findings indicate that cooperative farms demonstrate significantly higher technical efficiency, with an average score of 0.92, compared to 0.76 for non-cooperative farms. This efficiency gap is likely attributable to improved access to infrastructure, specialized knowledge, and broader market integration among cooperative members. The results underscore the importance of organizational structures in shaping farm-level productivity and support the case for targeted policies that reinforce cooperative frameworks. Overall, the study contributes to the literature on agricultural efficiency and offers actionable insights for policymakers and practitioners in the primary sector.