The technical efficiency was applied as the fundamental measure for production efficiency estimation, which is a prerequisite for total economical efficiency of the firm. Analysis of productivity and efficiency development could be used to estimate trend and factors influencing this process. The paper deals with input efficiency estimation in the production process of agricultural basic industry companies.
The panel of financial data from the biggest milling companies in Poland is used in the article. In the polish milling branch there is a lot of factors which exert influence on the productivity change of the companies, This factors are mentioned in the article. The approach which was used in the article is the DEA-based Malmquist productivity index. The index is a useful tool in economics. It can be estimated by using a non-parametric method - Data Envelopment Analysis. This approach permits including of all inputs and outputs which can have an influence on the productivity. The DEA-based Malmquist index allows to calculate indices of total factor productivity change (TFPC) and to decompose it to: TE (technological change), TEC (technical efficiency change) and SEC (scale efficiency change).