An Efficiency Analysis for the State-Owned Sugar Factorıes in Turkey: 2003-2016

Abstract

The agricultural sector, as a whole, is among the strategic sectors, especially for developing countries. Sugar production and the sub-products provide very important contribution to the economy. The purpose of this study is to analyze the efficiency of 25 sugar factories belongs Turkish Sugar Industry between the years 2003-2016. Data Envelopment Analysis and Malmquist Index were used for calculation and evaluation of the efficiency scores. Six inputs (arable beet area, farmers, factory workers, amount of processed beet, fuel consumption and accumulated depreciation) and two outputs (crystal sugar and molasses) were used for measurement of efficiency. According to results, Corum, Eregli, Erzurum and Kars are the most efficient factories during the related periods. In addition to this, especially after 2012, as a whole, a decline in the efficiency of the factories is remarkable.