An Analysis of Management Efficiency in Racehorse Producing Farms

The average bid price per head of domestic race horses has been sold at almost the same level for the past 10 years, and the stability of profits for horse producers is very poor. In this study, the management efficiency of domestic racehorse producers was analyzed, and based on this, a plan for efficient farmhouse management was suggested. In this study, inputoriented DEA analysis was performed on a total of 48 farms, including 42 farms in Jeju island and 6 farms in inland. As a result of the overall DEA analysis, the overall average of the technical efficiency of the rarms was 0.35, indicating that the overall management efficiency of the racehorse breeding farms was very low. If we divide this into pure technical efficiency and scale efficiency, it was analyzed that the pure technical efficiency was 0.5 and the scale efficiency was 0.67. The pure technical efficiency of farmhouses in Jeju was 0.51, slightly higher than 0.44 in the inland area, while the scale efficiency in Jeju was 0.67, slightly lower than 0.73 in the inland area. When Jeju region was divided into three groups according to total income and management efficiency index was compared accordingly, the upper group showed the highest technical efficiency with 0.49, the middle group with 0.36, and the lower group with the lowest with 0.2. Comparing the pure technical efficiency, the middle-lower group was lower than the upper-level group, indicating that measures to improve the management inefficiency of the middle-lower group are urgently needed.