Agrifood Efficiency: DEA Evidence for Rural Competitiveness in Bulgaria

This study evaluates the productive efficiency in the agrifood sector of 21 rural Bulgarian districts as a proxy for territorial competitiveness. Output-oriented Data Envelopment Analysis (DEA) was performed using district-level data from 2022 to 2024. The analysis incorporates five inputs related to labor, land, and capital and three economic outputs from agriculture and food processing. Results indicate substantial variation in efficiency among rural districts. Twelve districts form the efficiency frontier, with effective resource use and diverse structures; nine are inefficient due to scale or organizational/technological constraints. Bootstrap bias correction revealed standard DEA underestimates efficiency gaps. Frontier districts include large plains, mountainous regions and smaller, specialized systems, indicating diverse paths to competitiveness. A composite Territorial Competitiveness Index (TCI) showed frontier status does not guarantee efficiency, often due to underused manufacturing capital. Cluster analysis identified four performance groups needing different policy support, ranging from near-frontier territories that need knowledge transfer to deeply underperforming districts that require restructuring. No geographic clustering of efficiency was found, pointing to structural and institutional, rather than geographic, drivers. These results highlight the need for territorially tailored rural policies within the Common Agricultural Policy (CAP) and offer an empirical basis for diagnosing regional agrifood efficiency gaps.