Animal Efficiency in an Intensive Beef Production System

A stochastic input distance function is estimated to analyse the efficiency with which physical characteristics of individual lot-fed beef cattle in Australia are combined with conventional inputs to produce a final product possessing defined quality attributes. High mean technical efficiency estimates are reported for all animals and by breed. All partial output elasticities with respect to inputs are of expected sign. Of four outputs included in the analysis, carcass weight and moisture retention in meat after cooking have highly significant coefficients of expected sign, but two meat quality variables have coefficients of unexpected sign indicating that they decline as inputs increase. Some evidence is detected of scope economies between moisture retention in meat and the inverse of meat compression.