How to make meat business more effective: A case of Ukraine

Abstract

Purpose

The purpose of this paper is to find ways of improving the efficiency of the meatpacking business by achievement of a few sequential aims: an estimation of efficiency, determination of its key factors, revealing of the reserves of input reduction and potential growth of efficiency, and defining the ways of its improvement.

Design/methodology/approach

A few models of the data envelopment analysis (DEA), three‐factor production function and other tools of competitive and international benchmarking are used to analyse the efficiency of meatpacking companies. A two‐criteria analysis tool named the efficiency‐profitability matrix is used to determine the factors that influence efficiency. The results are based on the samples of 29 Ukrainian and 53 foreign meatpacking companies.

Findings

Significant reserves of inputs reduction by the domestic meatpacking companies are revealed. The offered ways of using the potential of efficiency growth for the Ukrainian meatpacking producers are connected with the use of both their internal ability (modernization of equipment, motivation of personnel) and successful experience and resources of domestic and foreign companies through the tools of co‐operation, exchange of experience, merger or friendly acquisition.

Research limitations/implications

The research is limited to a single industry that is explained by requirement of technology (product) homogeneity while using DEA tools.

Practical implications

The results contain the data and recommendations that can be practicable for meatpacking companies' management, present and potential investors and proprietors.

Originality/value

This is the first study that adopts various analysis and benchmarking tools for the versatile research of efficiency in the meatpacking industry and finding ways for its improvement.

Citation

Goncharuk, A.G. (2009), "How to make meat business more effective: A case of Ukraine", British Food Journal, Vol. 111 No. 6, pp. 583-597. https://doi.org/10.1108/00070700910966032