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 Technical Efficiency Assessment of Dairy Farm in the South-west Region of Bangladesh

2020 ◽  
pp. 21-28
Author(s):  
Fariha Farjana ◽  
Afia Khatun
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Percent Level ◽  
Dairy Farms ◽  
Farm Size ◽  
The South ◽  
Average Output ◽  
West Region ◽  
South West ◽  
South West Region

The paper concentrates on the measurement of the total factor productivity of dairy farms in the south-west region of Bangladesh. The study used stochastic frontier approach for analyzing the technical efficiency of the dairy farms. Here, seventy dairy farms are considered as a sample. The data reveals that the number of labor and the quantity of food are statistically significant at a 1 percent level of significance.The data also manifests that numerous farm-specific characteristics, i.e. farm size, farmer’s age, and amount of credit are statistically significant at 1 percent, 10 percent, and 10 percent respectively. The range of technical efficiency for the farms varies from 26 percent (minimum) to 95 percent (maximum) where the mean value is 68 percent for the dairy farms of the south-west region. This implies that an average output of milk production falls 32 percent short of maximum possible level. Hence, there is scope of improvement in this sector. Therefore, to improve the farm productivity government should provide proper training, and medical treatment facilities for the farms so that the animals become healthy. If it is possible to do so then the farm level production frontier will shift upward.

Systematic review and meta-regression analysis of technical efficiency in dairy farms

2016 ◽  
Vol 65 (3) ◽  
pp. 279-301 ◽  
Author(s):  
Taciana Mareth ◽  
Antonio Marcio Tavares Thomé ◽  
Fernando Luiz Cyrino Oliveira ◽  
Luiz Felipe Scavarda
Keyword(s):  
Systematic Review ◽  
Regression Analysis ◽  
Technical Efficiency ◽  
Geographical Location ◽  
Dairy Farms ◽  
Two Dimensions ◽  
Farm Size ◽  
Content Type ◽  
Meta Regression ◽  
Meta Regression Analysis

Purpose – The purpose of this paper is to complement and extend previous literature reviews on Technical Efficiency (TE) in dairy farms, analysing the effects of different methodologies and study-specific characteristics on Mean TE (MTE). Design/methodology/approach – The researchers independently conducted a systematic review of more than 400 abstracts and 85 full-text papers. Original keywords were applied to seven key electronic databases. Results from a meta-regression analysis of 85 published papers totalling 443 TE distributions in dairy farms worldwide are discussed. Findings – The variation in the MTE indexes reported in the literature can be explained by the methodology of estimations (method of estimation, functional form of frontier models, model dimensionality), the farms geographical location and farm size. Additionally, the results suggest that, given the state of technology prevailing in each country at the time that the studies on TE were conducted, dairy farmers in the sample could increase milk output by 20.9 per cent (level of inefficiency), on average, if they produce on their frontiers. Originality/value – This study makes two important contributions: first, it updates and compares previous works on frontier estimation of TE in dairy farms; and second, it adds two dimensions of dairy farms, size (herd and land area) and economic development, to the known differentials of TE measurement.

Technical efficiency in dairy farms

2017 ◽  
Vol 66 (3) ◽  
pp. 380-404 ◽  
Author(s):  
Taciana Mareth ◽  
Antônio Márcio Tavares Thomé ◽  
Luiz Felipe Scavarda ◽  
Fernando Luiz Cyrino Oliveira
Keyword(s):  
Survey Research ◽  
Technical Efficiency ◽  
Research Agenda ◽  
Geographical Location ◽  
Dairy Farms ◽  
Previous Literature ◽  
Farm Size ◽  
Future Research ◽  
Content Type

Purpose This systematic literature review integrates the findings of existing studies regarding technical efficiency (TE) in dairy farms. The purpose of this paper is to offer a research framework that assembles TE descriptors, a classification of previous literature that provides the basis for the synthesis and research agenda. Design/methodology/approach This paper systematically reviews 86 survey research studies using rigorous and reproducible procedures. The review is applied to published survey research. Findings The framework relates context, inputs, outputs and metrics of TE. There is no agreement among the authors on the context and determinants of TE. The main determinants of TE are geographical location, farm size, investments in veterinary care, feeding and milking practice, TE model estimation techniques, public policy, and management-related variables. This paper offers ten propositions for future research on the controversial results on the determinants of TE. The authors also explore the reasons for the discrepant results based on the Debreu-Farrell’s definition of TE, the contingency theory and the resource-based view of the firm, elucidating the literature and serving as a basis for future investigation. Implications for dairy farmers and researchers close the review. Originality/value Meta-analysis and meta-regression studies were long at the forefront of reviews in the TE of dairy farms. This paper offers a novel qualitative research synthesis with frameworks and the classification of previous literature and a research agenda, which provides a new and different perspective for analysis, by innovating over the available quantitative procedures to combine statistical results.

Classification and relationships between risks that affect lean production implementation

2015 ◽  
Vol 26 (1) ◽  
pp. 57-79 ◽  
Author(s):  
Giuliano Almeida Marodin ◽  
Tarcísio Abreu Saurin
Keyword(s):  
Factor Analysis ◽  
Lean Production ◽  
Shop Floor ◽  
Management Support ◽  
The South ◽  
Multiple Sources ◽  
Content Type ◽  
Confirmatory Factor ◽  
South Of Brazil

Purpose – The purpose of this paper is twofold: to classify the risks that affect the lean production implementation (LPI) process, and to demonstrate how that classification can help to identify the relationships between the risks. Design/methodology/approach – Initially, a survey was conducted to identify the probability and impact of 14 risks in LPI, which had been identified based on a literature review. The sample comprised 57 respondents, from companies in the south of Brazil. An exploratory factor analysis was carried out to analyze the results of the survey, allowing the identification of three groups of risks in LPI. Then, a case study was conducted in one of the companies represented in the survey, in order to identify examples of relationships between the risks. Multiple sources of evidence were used in the case study, such as interviews, observations and documents analysis. Findings – The risks that affect LPI were grouped into three categories: management of the process of LPI, top and middle management support and shop floor involvement. A number of examples of relationships between the risks were identified. Research limitations/implications – The survey was limited to companies from the south of Brazil and therefore its results cannot be completelly generalized to other companies. Moreover, the results of the survey were not subjected to a confirmatory factor analysis. Originality/value – This study helps to improve the understanding of LPI, as: it re-interprets the factors, barriers and difficulties for LPI from the perspective of risk management, which had not been used for that purpose so far; it presents a classification of the risks that affect LPI, which can support the understanding of the relationships between the risks and, as a result, it can support the development of more effective methods for LPI.

Evaluating the effect of subsidies for rural development on agri-food and forestry firms

2019 ◽  
Vol 27 (80) ◽  
pp. 150-167
Author(s):  
José A. Pérez-Méndez ◽  
María Pérez-Urdiales ◽  
David Roibas
Keyword(s):  
Rural Development ◽  
Technical Efficiency ◽  
Technical Progress ◽  
Stochastic Frontier ◽  
Content Type ◽  
Factors Affecting ◽  
Forestry Industry ◽  
The One ◽  
The Impact ◽  
Positive Effect

Purpose This paper aims to evaluate the impact of the subsidies established by Measure 123 of the Rural Development Policy on the productivity of a sample of agri-food and forestry companies in the region of Asturias over the period 2006-2009. Design/methodology/approach The authors estimate a stochastic frontier function which allows subsidies to be considered as affecting both the level of technical efficiency and technical progress. Findings The results show that while subsidies have a positive effect on the technical progress of companies in the agri-food industry, for the forestry industry, the effect materializes as an improvement in technical efficiency. Additionally, other factors affecting either, technical progress and technical efficiency were identified. Originality/value This study adopts a model that allows the separate identification of the effect of subsidies on the level of efficiency, on the one hand, and on the technical progress, on the other.

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.

scholarly journals Factors Affecting Producer Bargaining Power in Southern Fluid Milk Markets

1969 ◽  
Vol 1 (1) ◽  
pp. 65-72
Author(s):  
D. H. Carley
Keyword(s):  
Political Economy ◽  
Bargaining Power ◽  
The Political ◽  
The South ◽  
Dairy Farmers ◽  
Factors Affecting ◽  
Bargaining Position ◽  
Cooperative Bargaining ◽  
Interfirm Competition ◽  
Fluid Milk

Dairy farmers in the South have become increasingly interested in gaining a stronger bargaining position in the market arena for the purpose of obtaining a more favorable price for their milk. They have implemented this objective by organizing cooperative associations. Cooperative bargaining relationships have been of three types (1) bargaining between seller and buyer (bilateral competition), (2) bargaining between sellers or bargaining between buyers (interfirm competition), and (3) bargaining in or through the political economy.

The ripple effect of credit accessibility on the technical efficiency of maize farmers in Ghana

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anthony Siaw ◽  
Yuansheng Jiang ◽  
Martinson Ankrah Twumasi ◽  
Wonder Agbenyo ◽  
Gideon Ntim-Amo ◽  
...  
Keyword(s):  
Technical Efficiency ◽  
Farm Size ◽  
Farm Income ◽  
Agricultural Credit ◽  
Maize Production ◽  
Content Type ◽  
Frontier Analysis ◽  
Access To Credit ◽  
Variable Approach ◽  
The Impact

PurposeThe purpose of this study is to examine the impact of access to credit on technical efficiency (TE) of maize farmers in a developing country, Ghana.Design/methodology/approachThe study employed an instrumental variable approach and the stochastic frontier analysis (SFA) method for the estimation of the results.FindingsThe study found that farmers who have access to agricultural credit stand the chance of increasing TE by a margin of 8%, which also influences the maize production than those who did not have access to credit. The average TE score of the farmers was 74%. The study also found out that factors like membership, gender, farmers' access to credit, age and social network determine farmers' possibility of accessing agricultural credit. The study finds out that returns to size are increasing among the maize farmers and that significant improvement in efficiency can be realized by increasing the level of input used in production. Also, factors such as farm size, labor, seeds and fertilizer are the essential determinants of maize production output. Also, gender, extension, age, off-farm income, access to credit and membership were significant factors influencing technical inefficiency (TI).Originality/valueThe paper contributes to the existing literature on agricultural credit on rural agricultural development. The problem of endogeneity associated with access to credit, which has been considered by other researchers, is dealt with this study. This paper also provides information to government policymakers, practitioners and all other stakeholders in the maize sub-sectors and also will benefit small farmers outside the study area.

Agricultural credit and technical efficiency in Ghana: is there a nexus?

2016 ◽  
Vol 76 (2) ◽  
pp. 309-324 ◽  
Author(s):  
Abdul-Hanan Abdallah
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier ◽  
Allocative Efficiency ◽  
Probit Model ◽  
Estimation Procedure ◽  
Farm Size ◽  
Agricultural Credit ◽  
Content Type ◽  
The Impact ◽  
Unique Dataset

Purpose – The purpose of this paper is to examine the impact of agricultural credit on technical efficiency of Ghanaian maize farmers using a unique dataset drawn from the database of Sub-Saharan Africa’s intensification of food crops agriculture (Afrint II) in 2008 period. Design/methodology/approach – In this study, a two-stage estimation procedure is employed to determine impact of agricultural credit on technical efficiency of Ghanaian maize farmers. The first stage utilized probit model while the second stage utilized stochastic frontier approach to estimate impact of credit on technical efficiency of Ghanaian maize farmers. Findings – The study found that farmers are producing below the frontier with average technical efficiency of 47 percent. Policy variables such as credit access; education, extension access and farm size played a stronger role in technical efficiency. Agricultural credit in particular increased technical efficiency by 3.8 percent. Research limitations/implications – The results should not be extended to the impact of agricultural credit on economic efficiency since the allocative efficiency component is not considered in this study. Also, caution should be taken in the interpretation of these results because the data could not permit the incorporation of all variables that might affect technical efficiency. Originality/value – The originality of the paper and its contribution to existing literature largely lies from the use of a unique dataset to find evidence of the impact of credit on efficiency in Ghana.

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