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The purpose of this study is to examine the production efficiency of Rose farm and to explain the factors of the inefficiency. To analysis the production efficiency, SFA(Stochastic Frontier Analysis) and DEA(Data Envelopment Analysis) methods are measured, and then, Tobit regression model is used to analysis the influential factors on the production efficiency. As a result, first, the production efficiency by SFA is 88.4%, and by DEA, results are 78.5% and 85.2% in the CRS and VRS model, respectively. In particular, the production efficiency of the measurement results of the two methods are complementary, it is described in the same order of efficiency of each management body. Second, the results of tobit model shows that 6 input-factors are significant, and seed/nursery and material costs, which have the largest regression coefficient value and positive effect on production efficiency, are the most influential factors. Therefore, the results of this study indicates Rose farm can enhance their management efficiency by increasing amount of the seed/nursery and material costs.

Productive Efficiency of the Rose Farming Business: A Comparison of DEA and SFA