Asian Economic Journal 2008, Vol. 22 No. 3, 267–287 267 © 2008 The Authors Journal compilation © 2008 East Asian Economic Association and Blackwell Publishing Ltd. Backyard Hog Production Efficiency: Evidence from the Philippines* Amin W. Mugera and Allen M. Featherstone Received 4 September 2007; Accepted 22 February 2008 This article investigates the economic efficiency and the factors associated with efficiency for a sample of 126 hog producers in the Philippines. The input- oriented efficiency indices are computed and bootstrapped using data envelopment analysis. Econometric analysis of the factors influencing the efficiency indices are conducted using the Tobit model. Fixed capital does not influence the efficiency scores, whereas labor does negatively influence the efficiency indices. On average, technical efficiency is low, an indication that most households are not using the most efficient technology. Scale efficiency is fairly high but con- strained by lack of operating capital and managerial skills. Technical efficiency is constrained by lack of access to credit and limited experience in hog production. Keywords: technical efficiency, scale efficiency, backyard hog production, boot- strap, data envelopment analysis, the Philippines. JEL classification codes: D13, O13, Q12, R30. doi: 10.1111/j.1467-8381.2008.00278.x I. Introduction Globalization of the swine industry is leading to the disappearance of small inefficient production systems within developing countries and the emergence of highly efficient large scale production systems, with low production costs (Black, 2000). Agricultural production systems are still at the center of development in many countries and the long-term economic development of these countries crucially depends on an efficient use of scarce resources at the micro level. In the Philippines, livestock and poultry production have been the top performers in the agricultural sector, with consistent accelerated growth rates since 1980. This growth is attributed to increased domestic demand, productivity gains resulting from a shift from small to large scale operations, the adoption of new technologies embedded in imported breeds, access to veterinary medicines, and feed ingredients (Rola et al., 2003). The swine industry accounts for over 75 percent of livestock production and approximately 80 percent of livestock * Mugera (corresponding author): Department of Agricultural Economics, 342 Waters Hall, Kansas State University, Manhattan, KS 66502-4011. Email: amugera@agecon.ksu.edu. Featherstone (same address as Mugera). Email: afeather@ksu.edu. We acknowledge the International Food Policy Research Institute (IFPRI) for providing the data used in this study: Philippines smallholder livestock production dataset, 2000–2001.