scholarly journals Measuring and explaining multi-directional inefficiency in the Malaysian dairy industry

2017 ◽  
Vol 119 (12) ◽  
pp. 2788-2803 ◽  
Author(s):  
Nurul Aisyah Binti Mohd Suhaimi ◽  
Yann de Mey ◽  
Alfons Oude Lansink
Keyword(s):  
Production Systems ◽  
Dairy Industry ◽  
Farming System ◽  
Dairy Farming ◽  
Truncated Regression ◽  
Dairy Farmers ◽  
Technical Inefficiency ◽  
Content Type ◽  
Factors Affecting ◽  
Farm Finance

Purpose The purpose of this paper is to measure the technical inefficiency of dairy farms and subsequently investigate the factors affecting technical inefficiency in the Malaysian dairy industry. Design/methodology/approach This study uses multi-directional efficiency analysis to measure the technical inefficiency scores on a sample of 200 farm observations and single-bootstrap truncated regression model to define factors affecting technical inefficiency. Findings Managerial and program inefficiency scores are presented for intensive and semi-intensive production systems. The results reveal marked differences in the inefficiency scores across inputs and between production systems. Practical implications Intensive systems generally have lowest managerial and program inefficiency scores in the Malaysian dairy farming sector. Policy makers could use this information to advise dairy farmers to convert their farming system to the intensive system. Social implications The results suggest that the Malaysian Government should redefine its policy for providing farm finance and should target young farmers when designing training and extension programs in order to improve the performance of the dairy sector. Originality/value The existing literature on Southeast Asian dairy farming has neither focused on investigating input-specific efficiency nor on comparing managerial and program efficiency. This paper aims to fill this gap.

The inefficiency of Vietnamese prawn-rice rotational crops: a slacks-based data envelopment analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thi Anh Ngoc Pham ◽  
Ho Huu Loc ◽  
Dung Duc Tran ◽  
Nguyen Hong Quan
Keyword(s):  
Returns To Scale ◽  
Mekong Delta ◽  
Farming System ◽  
Truncated Regression ◽  
Technical Inefficiency ◽  
Content Type ◽  
Ecological Zones ◽  
Water Surface Area ◽  
Input And Output ◽  
Production Areas

PurposeThe purpose of this paper is to investigate the input- and output-specific technical inefficiency of Vietnamese prawn-rice rotational crops (PRRC) and to identify the impacts of the socio-economic characteristics of farmers and farms on these technical inefficiencies.Design/methodology/approachThis study first used a Russell-type (input-output) directional distance function to estimate the input- and output-specific technical inefficiency. Second, it applied a bootstrap truncated regression to analyze the factors influencing these technical inefficiencies. Data were gathered through a survey among 94 farmers, from Ben Tre and Kien Giang provinces, the two popular PRRC areas in the Mekong Delta.FindingsResults show that Vietnamese PRRC farmers could reduce the water surface area by 3%, the use of seedlings by 15%, labor by 16%, fertilizers by 26%, and the use of others by 24%, while simultaneously increasing the revenue of farming system by 57% relative to the variable returns to scale (VRS) frontier. Farmers with more years of experience are generally better in managing the use of seedlings and in improvement of revenue. Farmers in Kien Giang province are more efficient in achieving revenue of the PRRC farming system than farmers in Ben Tre province.Research limitations/implicationsOutcomes of this study are useful to identify strategies in minimizing the use of inputs while simultaneously maximizing PRRC production.Originality/valueThis paper relates to the comparison of two mostly different ecological zones, being the dominant production areas of PRRC, in which, Kien Giang represents the western part, while Ben Tre is in the eastern part of the Vietnam’s Mekong Delta. The findings not only expand the current understanding but also suggest various meaningful research questions regarding the development of Vietnamese PRRC under the impacts of climate change. The study also contributes to the literature on examining the input- and output-specific technical inefficiencies and influencing factors.

Prospect of organic dairy farming in India: A review

2017 ◽  
Vol 36 (01) ◽  
Author(s):  
Saikat Maji ◽  
B. S. Meena ◽  
Pampi Paul ◽  
Vishwatej Rudroju
Keyword(s):  
Residual Effect ◽  
Farming System ◽  
Dairy Farming ◽  
Dairy Farmers ◽  
Milk Products ◽  
Organic Dairy ◽  
Rapid Spread ◽  
Indigenous Technical Knowledge ◽  
Rapid Pace ◽  
Quality Of Milk

Dairy farming has the potential for providing additional income to the farmers along with achieving major goal of organic farming i.e. diversified production and supporting biological cycle within farming system. India presently is the largest producer of milk in world supported by an astonishing growth rate in dairy sector. Apart from this due to increasing consumer awareness there has been an increased concern voiced over quality of milk and milk products including contamination, pollutant and the residual effect of various chemicals. Interest inorganic dairy farming is increasing at rapid pace worldwide as an alternative solution. Recent years have seen a sharp rise in demand of organic milk and milk products. Under Indian condition, rapid spread of organic dairy farming is possible because of some key geographical, cultural and economic advantages like traditional nature of farming and indigenous technical knowledge and practices followed by Indian farmers etc. But prevalence of small dairy farmers also poses many challenges for faster proliferation of organic dairy farming along with some other shortcomings. Present article provide some insight on strengths, weaknesses opportunities and threats of organic dairy farming in the country along with some potential ways to overcome these weaknesses and threats.

Analysing the determinants of technical efficiency of dairy farms in Brazil

2019 ◽  
Vol 68 (2) ◽  
pp. 464-481 ◽  
Author(s):  
Taciana Mareth ◽  
Luiz Felipe Scavarda ◽  
Antonio Marcio Tavares Thomé ◽  
Fernando Luiz Cyrino Oliveira ◽  
Tiago Wickstrom Alves
Keyword(s):  
Technical Efficiency ◽  
Dairy Farms ◽  
Farm Size ◽  
The South ◽  
Dairy Farmers ◽  
Content Type ◽  
Factors Affecting ◽  
Use Of Services ◽  
South Of Brazil ◽  
Productivity And Competitiveness

PurposeThe purpose of this paper is to analyse the determinants of technical efficiency (TE) in dairy farms located in the South of Brazil, aiming for a better understanding of the topic for academics, dairy farmers and policymakers to improve the productivity and competitiveness of dairy farms.Design/methodology/approachThis study was developed using a two-stage approach. Data envelopment analysis was used to estimate the TE level and regression models to understand the factors affecting TE in dairy farms. The sample size is 253 dairy farms in the South of Brazil.FindingsThe variation in the mean TE indexes reported in the literature can be explained by the attributes of the analysed studies, including the education of the farm operator, farm size (number of cows and milk), feed and labour costs, and use of services. Additionally, the results suggest that dairy farmers in the sample could increase milk output by 50.1 per cent (level of inefficiency) on average if they improve their TE.Originality/valueThis study makes three important contributions: first, it formulates hypotheses from the previous literature’s propositions on the estimation of TE in dairy farms; second, it tests the hypotheses in an empirical study to understand the main factors affecting the TE in dairy farms of the selected municipalities in the South of Brazil; and third, it compares previous findings on the determinants of TE in dairy farms serving different stakeholders, such as researchers, farmers and government representatives, to improve the productivity and competitiveness of dairy farms.

scholarly journals Factors Affecting Machinations at Dairy Farms : An Appraisal from Economic Perspective

2022 ◽  
Vol 22 (1) ◽  
pp. 32-37
Author(s):  
H.R. Meena ◽  
K.R. Kadian ◽  
B.S. Meena ◽  
Gunjan Bhandari ◽  
Vikash Kumar
Keyword(s):  
Dairy Farm ◽  
Dairy Farming ◽  
Survey Method ◽  
Dairy Farmers ◽  
Time Saving ◽  
Indian States ◽  
Factors Affecting ◽  
The Government ◽  
Milking Machine ◽  
Quality Of Milk

This study was undertaken to get a comprehensive idea about the favourable and unfavourable factors for adoption of dairy automation/ machinations as perceived by dairy farmers, and study the economic impact of semi-automatic milking machine for small, medium and large dairy unit using the analysis of total cost and monetary benefits. The study was carried out in north Indian states, 30 commercial dairy farmers were selected constituting a total of 150 respondents practicing commercial dairy farming under survey method of investigation. Results revealed that time saving in dairy farm operations, drudgery reduction, and maintenance of hygiene and quality of milk and milk products were perceived as top three favourable factors for adoption of dairy automation or machination. The high initial investment required for dairy automation, no extra milk price for hygiene and quality products through the adoption of dairy automation in the market, and high cost of equipment and less subsidy provided by the government were perceived as top three favourable factors for adoption of dairy automation or machination. The study indicated that adoption score of the respondents were not significantly correlated with age. It implies that age, education, family size land holding and experiences of dairy farming does not affect the adoption of dairy automation technologies. The additional monetary benefits apart from this economic benefit’s other benefits such as clean and hygiene milk, health care and management in economic terms were calculated about 43800, 39,600, and 64,000 per year for small, medium, and large dairy unit, respectively

scholarly journals Evaluating farm and export competitiveness of the Irish dairy industry: post-quota analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lungelo Prince Cele ◽  
Thia Hennessy ◽  
Fiona Thorne
Keyword(s):  
Dairy Products ◽  
Dairy Industry ◽  
Economic Cost ◽  
Policy Implications ◽  
Growth Potential ◽  
Export Market ◽  
Dairy Farmers ◽  
Content Type ◽  
Export Competitiveness ◽  
The Eu

Purpose This paper aims to examine the competitiveness trends and rankings of the Irish dairy sector at the farm and trade levels, relative to selected European Union (EU) Member States, in the context of the removal of the EU milk quota in 2015. Design/methodology/approach Competitiveness indicators including partial productivity measures and accountancy-based indicators were used for farm competitiveness, and net export market share and normalised revealed comparative advantae (NRCA) were used for export competitiveness. Findings Amongst the countries examined, Ireland had the highest growth in partial productivity indicators and was ranked first with the lowest total costs and cash costs per kg of milk solids post-quota. However, the total economic cost sub-components showed that Irish dairy farmers had high opportunity costs for owned land and labour. While Irish dairy products such as butter and powders have demonstrated growth potential in competitiveness post-quota with Irish butter and whey ranked in top three relative to other countries, other products, i.e. cheese and liquid milk have declined in competitiveness according to key export competitiveness indicators used. Practical implications The challenge for Irish dairy farmers is how to mitigate relatively high land and labour costs, which can limit farm competitiveness in the long run. The key players in the Irish dairy industry can now better position themselves in the global dairy market, recognizing the competitiveness dynamics of the different dairy products and their competitors. Policy implications and further areas of research have been identified to help improve the overall competitiveness position. It is surprising that Irish butter is a leader in the EU, yet not much research has been done to understand the market dynamics of this sector. Originality/value To the best of the authors’ knowledge, this study is the first of its kind to use both farm and export competitiveness measures to analyse the Irish dairy industry relative to other countries in the context of quota abolition. Unlike previous studies on dairy export competitiveness, this study has disaggregated the processed dairy products, which allowed for the ranking of countries and comparability across countries using NRCA.

Profit Efficiency among Dairy Farms in the Eastern Region of India

2020 ◽  
pp. 97-103
Keyword(s):  
New Technologies ◽  
Dairy Farms ◽  
Dairy Farming ◽  
Eastern Region ◽  
Dairy Farmers ◽  
Profit Efficiency ◽  
Factors Affecting ◽  
For Profit ◽  
Maximum Profit ◽  
The Mean

ABSTRACT The profit efficiency in dairy farming is important to keep the farmer into dairy farming. The estimates of profit efficiency provide policymakers the information to what extent milk production can be expanded by removing the factors responsible for profit inefficiencies. Keeping this in mind the present study was undertaken in the eastern region of India to explore the profit efficiency among dairy farmers and factors affecting it. It was concluded that the mean profit efficiency of the dairy farmers was 0.7215 that is the profit could be increased by 27.85 percent if both technical and allocative inefficiencies were removed. Most of the farmers had their profit efficiencies in the range of 0.66 to 0.75. About 46.26 percent of the overall variation in actual profit from the maximum profit received by dairy farmers was due to differences in farmers’ practices and random factors. The profit efficiencies in the area could be increased by farmers’ education and experience in the business. Thus, the farmers should be periodically educated on appropriate feeding practices, and new technologies in dairying to overcome the inefficiencies.

scholarly journals Waste management of traditional dairy farming for alternative energy: A feasibility study on biogas processing in Dusun Banyudono, Semarang Regency, Indonesia

2021 ◽  
Vol 5 (1) ◽  
pp. 9-24
Author(s):  
Ritma Kartika Dewi ◽  
Dwi Wahyuningsih ◽  
Dwi Elita Sari ◽  
Setia Humani Jatiningrum ◽  
Widhi Handayani
Keyword(s):  
Waste Management ◽  
Feasibility Study ◽  
Alternative Energy ◽  
Farming System ◽  
Dairy Farming ◽  
Group Level ◽  
Gas Emission ◽  
Dairy Farmers ◽  
Qualitative And Quantitative ◽  
Poor Management

Dairy farming's waste contributes to greenhouse (GHG) gas emission, and its conversion into biogas is of potential benefit to reduce emission while providing alternative energy for the dairy farmers. Although biogas conversion has been conducted in Banyudono, Semarang Regency, not all dairy farmers are interested in this biogas processing, and it seems to be related to the question of the benefit they would receive. This research aims to explain the management of the waste of dairy farming in Banyudono and a feasibility study on dairy farming in Banyudono, if biogas processing is not to be included and along with biogas processing. This study combines qualitative and quantitative approaches by conducting interviews, direct observation, documentation, and a feasibility study on biogas processing. This study finds that 8,400 kg of cow manure and 4,950 liters of urine are produced every day, by only 5.76% is processed into biogas, 11.25% is processed into manure, while 82.98% of the waste is left unused. The feasibility study indicates that biogas processing tends to increase the benefit received by independent farmers instead of the member of the dairy farmer group discussed in the study. Furthermore, our study reveals issues regarding the dairy farmers' environmental awareness, poor management of biogas distribution on the farmer group level, and technology adoption problems. Finally, a model of integrated farming system is composed to address the issue of waste management in Banyudono.

Technical efficiency and metatechnology ratios under varying resource endowment in different production systems

2014 ◽  
Vol 6 (3) ◽  
pp. 485-505 ◽  
Author(s):  
Mohammad Mohi Uddin ◽  
Bernhard Brümmer ◽  
Kurt Johanes Peters
Keyword(s):  
Technical Efficiency ◽  
Policy Design ◽  
Production Systems ◽  
Primary Data ◽  
Dairy Farmers ◽  
Content Type ◽  
Traditional System ◽  
Technological Advantage ◽  
Resource Endowment ◽  
Resource Endowments

Purpose – The purpose of this paper is to compare technical efficiency and metatechnology ratios (MTR) in three production systems confronted with different technological and resource endowments in Bangladesh to identify the suitable production systems for increasing productivity. Design/methodology/approach – The primary data collected by authors from 180 dairy farmers were sampled and modeled in a stochastic metafrontier framework due to its ability to estimate and compare the efficiency of firms among various groups with possibly different group-specific technologies and heterogeneous production environments. Findings – The empirical results show that farms from intensive system were closer to their production frontier than extensive and traditional system. Regarding productivity differences among systems, the MTR is by far highest for intensive, indicating the technological advantage of this system over others two systems. The estimation of farm-specific inefficiency model revealed that farmers’ access to extension and credit services are assumed to be significant determinants in reducing inefficiency. Practical implications – This study concludes that the ability of the farmers to increase productivity vary depending on the production systems due to variation in resource endowments and access to various inputs and support services. Thus, improving productivity depends on effective policy design on harmonizing access to resources and delivery of extension and credit services. Originality/value – The empirical analysis of data representing different production endowments by stochastic metafrontier make it possible to identify the efficiency level as well as technology gap, thus, ways to identify the possible policy options reducing those gaps and improving productivity.

scholarly journals Economic Efficiency of Smallholder Dairy Farmers in Swaziland: An Application of the Profit Function

2014 ◽  
Vol 2 (2) ◽  
pp. 132 ◽  
Author(s):  
B. B. Masuku ◽  
M. B. Masuku ◽  
A. Belete
Keyword(s):  
Economic Efficiency ◽  
Large Scale ◽  
Smallholder Farmers ◽  
Target Population ◽  
Dairy Farming ◽  
Gross Margin ◽  
Dairy Farmers ◽  
Factors Affecting ◽  
Smallholder Dairy ◽  
Margin Analysis

The purpose of the study was to analyse the economic efficiency of smallholder dairy farmers in Swaziland. Specifically, the study sought to describe the socio-economic characteristics of dairy farmers in Swaziland. The smallholder farmers are classified into: smallholder farmers, medium-scale farmers, and large-scale dairy farmers. The specific objectives of the study were to: estimate the economic efficiency of smallholder dairy farmers in Swaziland; identify factors affecting the economic efficiency of smallholder dairy farmers; and determine the profitability of the smallholder dairy enterprise. This was a descriptive and quantitative survey and the target population was all smallholder dairy farmers registered with the Swaziland Dairy Board (N = 444). A purposive and random sampling techniques was used to select the respondents (n = 111). Three methods of data analysis were used, namely; descriptive statistics, econometric analysis (Stochastic Profit Frontier Function) and gross margin analysis. The mean level of Economic Efficiency (EE) for the famers was 79.8%. The farm’s location, pasture size, soil fertility, water availability, the farmer’s years of experience in dairy farming, membership to dairy farmers’ association and training on dairy farming are factors that influenced the level of EE for smallholder dairy farmers in Swaziland. The smallholder dairy farmers were economically efficient. The institutional factors, socioeconomic and farm characteristics do affect the level of EE among smallholder dairy farmers. The dairy farming enterprise is a profitable enterprise.  

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