ISSN 2284-7995, ISSN Online 2285-3952
 

INEFFICIENCY AMID SUSTAINABILITY? EVALUATING TECHNICAL EFFICIENCY IN MOLDOVA'S ORGANIC FARMING SECTOR

Published in Scientific Papers. Series "Management, Economic Engineering in Agriculture and rural development", Vol. 25 ISSUE 3
Written by Liliana CIMPOIEȘ, Diana COȘALÎC

This study investigates the technical efficiency of organic farms in the Republic of Moldova, aiming to assess how efficiently certified organic farms utilize available resources to produce economic outputs. The research draws on primary data collected through a structured survey conducted between March and June 2023, covering 63 farms managing a total of 19,456 hectares, including 5,320 hectares under certified organic farming. Due to data consistency requirements, 35 farms with complete and non-zero input-output records were selected for the technical efficiency analysis. To evaluate efficiency, a non-parametric methodology was applied using an input-oriented Data Envelopment Analysis (DEA) under Variable Returns to Scale (VRS). The results reveal a low average technical efficiency (TE) score of 0.32 indicating that most farms operate significantly below their potential. Only 8.6% of farms were found to be highly efficient (TE > 0.7), while over 60% fell into the low-efficiency category (TE ≤ 0.4). High-efficiency farms tend to exhibit leaner input structures, better cost control, and more consistent revenue streams, while low-efficiency farms often manage substantial organic land without generating proportional output. Spatial disparities were also observed in certain districts (Falesti, Telenesti, and Singerei) outperforming others (Riscani and Edinet). The findings suggest that technical efficiency in Moldova’s organic farming sector is constrained not by land area or subsidies, but by managerial practices, input-output alignment, and market integration. A shift from uniform subsidy programs to performance-based support, combined with peer learning from high-performing farms and targeted training for underperforming districts, is essential to improve technical efficiency across the organic farming sector.

[Read full article] [Citation]

CIMPOIES L., COSALIC D. 2025, INEFFICIENCY AMID SUSTAINABILITY? EVALUATING TECHNICAL EFFICIENCY IN MOLDOVA'S ORGANIC FARMING SECTOR . Scientific Papers. Series "Management, Economic Engineering in Agriculture and rural development", Vol. 25 ISSUE 3, PRINT ISSN 2284-7995, 235-242.

The publisher is not responsible for the opinions published in the Volume. They represent the authors’ point of view.

© 2019 To be cited: Scientific Papers. Series “Management, Economic Engineering in Agriculture and Rural Development“.

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