Efficiency Analysis as a Tool for Revealing Best Practices and Innovations: The Case of the Sheep Meat Sector in Europe

SIMPLE SUMMARY: The European sheep meat sector faces technical, market and financial challenges that threaten its economic performance and overall sustainability. At the same time, the sector is characterized by poor and slow adoption of innovations that could help towards facing these challenges. In this study, the technical efficiency of extensive, semi-intensive and intensive sheep meat farms in France, Spain and the UK was explored to reveal the profile of the most efficient ones and identify the best practices and innovations that these farms apply. The most efficient sheep meat farms reared large flocks, used available infrastructure at full capacity and managed human labor in a rational way. These best farms emphasized feeding and grazing innovations, marketing strategies, breeding programs and use of digital technologies. The uptake of such practices and innovations by farms of similar production systems could help to increase the productivity and economic performance of the sheep meat sector. ABSTRACT: The slow adoption of innovations is a key challenge that the European sheep sector faces for its sustainability. The future of the sector lies on the adoption of best practices, modern technologies and innovations that can improve its resilience and mitigate its dependence on public support. In this study, the concept of technical efficiency was used to reveal the most efficient sheep meat farms and to identify the best practices and farm innovations that could potentially be adopted by other farms of similar production systems. Data Envelopment Analysis was applied to farm accounting data from 458 sheep meat farms of intensive, semi-intensive and extensive systems from France, Spain and the UK, and the structural and economic characteristics of the most efficient farms were analyzed. These best farmers were indicated through a survey, which was conducted within the Innovation for Sustainable Sheep and Goat Production in the Europe (iSAGE) Horizon 2020 project, the management and production practices and innovations that improve their economic performance and make them better than their peers.