The Empirical Study on Operating Efficiency of Agricultural Cooperatives in Langao

Xingang Wang, Lu Sun, Yanxin Zhang


 The purpose of this paper is to investigate the operating efficiency of agricultural cooperatives in Langao which
is remote city in North East of China. Based on the Farrell’s concept of efficiency, this paper selected inputs and
output factors for agricultural cooperatives by using fuzzy Delphi method (FDM), there are four input factors
among them, namely the number of employment, assets, operating expenses and management costs, but there are
two output factors, namely the number of members and operating income.
Furthermore, this paper used data envelopment analysis to establish efficiency boundary function and obtained
the operating efficiency of agricultural cooperatives. In terms of all of the agricultural cooperatives, there are
total 14 agricultural cooperatives in the 104 DMU, and their values of operating efficiency are both one. In
addition, business entities and models of various types of agricultural cooperatives are not the same, so this study
fit vegetables and fruit and livestock farming cooperatives, which was proposed by Golany and Roll in 1989. In
the terms of efficiency of vegetables and fruits of agricultural cooperatives, the operating efficiency values of ten
ones are one, however, the livestock operators with the operating efficiency who have twelve.
Finally, the use of AHP further distinguished the efficient operation of agricultural cooperatives in order to select
the best business model. On all of the agricultural cooperatives, Lin-Xiang pig production cooperatives in
Langao area were the best operating efficiency. Solely in terms of vegetables and fruit agricultural cooperatives,
Crane Luyuan cooperatives were the highest efficient. In terms of livestock farming cooperatives, the pig
production cooperatives in Lin township had the best operational efficiency and could be a model.

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