scholarly journals Dairy farms efficiency analysis before the quota system abolishment

2014 ◽  
Vol 8 (2-3) ◽  
pp. 147-157
Author(s):  
Krisztián Kovács
Keyword(s):  
The Netherlands ◽  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Dairy Farms ◽  
Multidimensional Space ◽  
Quota System ◽  
High Increase ◽  
Frontier Analysis ◽  
The Eu

The abolishment of the dairy quota system in the EU is expected to increase competition across dairy farms in Europe. Assuming a common price for milk in the EU, only the most efficient farms will survive in the new environment. The main objective of the research is to compare dairy farms in Germany, The Netherlands and Hungary about their technical efficiency. In the first part of the research, the efficiency is measured by partial efficiency indexes using one dimensional efficiency measuring. In the second part, the Stochastic Frontier Analysis (SFA) have to be used to measure efficiency in a multidimensional space, using six inputs and two outputs. It appears from the results that the highest efficiency farms are in the Netherlands, and then Germany and Hungary follow thus, we get that the most efficient farms are in the Netherlands with 84% efficient. The German farms are 76% efficient. The Hungarian farms are 68% efficient. With respect the abolishment of the dairy quota system, our results suggest that the Dutch farms are the most efficient, thus probably they will increase their production after the quota system. But because the size of the country we cannot expect dramatic changes in the European Dairy market. The Germans farms efficiency is lower, but their efficiency is also lower, so we won’t expect high increase about the dairy supply. The Hungarian dairy sector is not so efficient like the Dutch, and the size of the sector has also small among the European countries, thus if they want to survive the quota system demolishing, they have to increase their technical efficiency.

scholarly journals Dutch, Hungarian and German dairy farms technical efficiency comparison

2011 ◽  
Vol 5 (1-2) ◽  
pp. 121-128 ◽  
Author(s):  
Krisztián Kovács ◽  
Grigorios Emvalomatis
Keyword(s):  
The Netherlands ◽  
Technical Efficiency ◽  
Dairy Farms ◽  
Multidimensional Space ◽  
Data Envelopment ◽  
Quota System ◽  
High Increase ◽  
Sample Size Effect ◽  
Efficiency Comparison ◽  
The Eu

The abolishment of the dairy quota system in the EU is expected to increase competition across dairy farms in Europe. Assuming a common price for milk in the EU, only the most efficient farms will survive in the new environment. The main objective of the paper is to compare dairy farms in Germany, The Netherlands and Hungary about their technical efficiency. In the first part of the research, the efficiency is measured by partial efficiency indexes using one dimensional efficiency measuring. In the second part, the Data Envelopment Analysis (DEA) have to be used to measure efficiency in a multidimensional space, using six inputs and two outputs. It appears from the results that the highest efficiency farms are in the Netherlands, and then Germany and Hungary follow. If we want to eliminate the low sample size effect, we can assume a common frontier, which decreases the efficiency scores a bit, and makes the Hungarian results more reliable. With respect the abolishment of the dairy quota system, our results suggest that the Dutch farms are the most efficient, thus probably they will increase their production after the quota system. But because the size of the country we cannot expect dramatic changes in the European Dairy market. The Germans farms efficiency is lower, but their efficiency is also lower, so we won’t expect high increase about the dairy supply. The Hungarian dairy sector is not so efficient like the Dutch, and the size of the sector has also small among the European countries, thus if they want to survive the quota system demolishing, they have to increase their technical efficiency.  

scholarly journals Factors Influencing Technical Efficiency in the EU Dairy Farms

Agriculture ◽  
2021 ◽  
Vol 11 (11) ◽  
pp. 1114
Author(s):  
Zdeňka Náglová ◽  
Tamara Rudinskaya
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Dairy Farms ◽  
P Value ◽  
Maximum Output ◽  
Frontier Analysis ◽  
Size Standard ◽  
Economic Size ◽  
The Eu

This paper aims to analyse the technical efficiency (TE) of dairy farms and find its determinants. To accomplish this problem, the Stochastic Frontier Analysis was applied. The data were obtained from the Farm Accountancy Data Network database for dairy farms (TF15-45—Specialist dairying) for 2004–2019. Dairy farms were divided into four clusters according to their physical size (number of livestock units per farm) and economic size (standard output per farm). The largest farms by physical and economic size are located in Denmark and Cyprus. The smallest, in comparison, are in Bulgaria, Croatia, Latvia, Lithuania, Austria, Poland, Romania, and Slovenia. Farms in the EU are relatively technically efficient, i.e., they use their resources efficiently to produce maximum output (production). However, they have the potential to achieve better economic results and be more competitive, as the size of farms’ is not fully optimised. The abolition of the milk quota can be considered a factor in improving technical efficiency, as the indicator is higher after the abolition. New and old member states have almost comparable technical efficiency levels (the p-value of the t-test is 0.463), with old members having slightly higher level TE. Subsidies have contradictory effects on TE. Farm efficiency with higher subsidies per cow is higher for farms with €51–100/cow. However, as subsidies increase, TE decreases. Only the group of farms with the highest subsidies has a higher TE. More diversified farms are more technically efficient than specialised farms. Milk yield did not influence the analysed indicator. The analysis results can serve the stakeholders as a tool for modelling future agricultural policy, as the European farms are very heterogenous and show different conditions and economic outcomes.

scholarly journals The trends in efficiency of Lithuanian dairy farms: a semiparametric approach

2015 ◽  
Vol 37 (2) ◽  
pp. 167-178 ◽  
Author(s):  
Tomas Baležentis ◽  
Tianxiang Li ◽  
Alvydas Baležentis
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Dairy Farms ◽  
Random Coefficients ◽  
Family Farms ◽  
Frontier Analysis ◽  
Semiparametric Approach ◽  
Farm Accountancy Data Network ◽  
Development Paths

This study aims at analysing the trends in efficiency of Lithuanian dairy farms and thus identifying the prospective development paths. The semiparametric approach based on nonparametric regression and Stochastic Frontier Analysis is applied for the analysis. The research relies on Farm Accountancy Data Network and covers family farms. The period of 2004–2011 is considered. In order to identify the underlying trends in dairy farming, we focus on such features as technical efficiency, partial elasticities, and elasticity of scale. The semiparametric approach yielded rather high efficiencies. Specifically, the average technical efficiency of 89% was observed. A decline in technical efficiency during 2004–2011 is present for both point estimates and associated bounds of the confidence interval. Analysis of the elasticity of scale implies that most of the farms could still increase their scale of operation. The obtained results were confirmed by a parametric random coefficients model.

scholarly journals Technical Efficiency of Smallholder Tomato Production in Semi-Urban Farms in Cameroon: A Stochastic Frontier Production Approach

2017 ◽  
Vol 7 (4) ◽  
pp. 27 ◽  
Author(s):  
Martin Paul Jr. Tabe-Ojong ◽  
Ernest L. Molua
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Smallholder Farmers ◽  
Research Question ◽  
Stochastic Frontier ◽  
Negative Influence ◽  
Farm Size ◽  
Primary Data ◽  
Tomato Production ◽  
Frontier Analysis

Agriculture is the mainstay of Cameroon’s economy as it serves the purposes of food, livelihood and employment. Nevertheless, the country’s agriculture is plagued by low productivity and inefficiency in production. One of the main reasons for low productivity is the inability of farmers to fully exploit available technologies and production techniques. An important research question that comes to mind is, what are the major factors that hinder the technical efficiency of smallholder farmers? This study thus aimed to determine the level of technical efficiency in the production of tomato in smallholder farms, relying on primary data collected using a structured survey instrument administered to 80 tomato farmers in the Buea municipality of Cameroon. Data was analyzed using descriptive statistics and a stochastic frontier analysis method in the Cobb-Douglas production function. The STATA.14 software was used to obtain both stochastic frontier estimates and the determinants of technical efficiency. The results indicate that farmers are not fully technically efficient with a mean technical efficiency score of 0.68 with one farmer operating on the frontier. The study also revealed that most of the farmers irrespective of the size of the holdings have shown technical inefficiency problems. The older farmers were observed with the best measures of technical efficiency. Education, age and the adoption and practice of agronomic techniques had a positive and significant influence on technical efficiency while the nearest distance to the extension agent had a rather negative influence on technical efficiency. The input-output relationship showed that the area of tomato cultivation and the quantity of improved seed used were positive and significantly related to output at the 5% level of probability. As a result, it is recommended that farmers should increase their farm size, use of improved seeds and the adoption and practice of novel techniques in production. More emphasis should be placed on extension agents as they have a significant role to play in terms of improving and augmenting farmers’ education and information base through on farm demonstrations and result oriented workshops as all this will ensure increased production and productivity thereby increasing technical efficiency and achieving food self-sufficiency.

scholarly journals Technical Efficiency and Small Scale Maize Producers in Mwanza Region: A Stochastic Frontier Analysis

2021 ◽  
Vol 9 (3) ◽  
Author(s):  
Mukole Kongolo
Keyword(s):  
Technical Efficiency ◽  
Best Practice ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Likelihood Estimation ◽  
Estimation Procedure ◽  
Farm Size ◽  
Small Scale ◽  
Maize Production ◽  
Frontier Analysis

This study measured technical efficiency and its determinants in maize production by small-scale producers in Mwanza region, using a stochastic frontier production function approach. A randomly selected sample of participants in the two districts was used. The Maximum Likelihood estimation procedure was followed to obtain the determinants of technical efficiency and technical efficiency levels of small-scale maize producers. The minimum and maximum values of technical efficiency were between 20% and 91%, indicating that the least practices of specific producer operates at a minimum level of 20%, while the best practice producers  operate  at 91% technical efficiency  level respectively. The summary results of the mean technical efficiency was 63%. The main determinants of technical efficiency were labour, farm size, producer’s experience, producer’s age, family size which were all positive and statistically significant. The findings suggest that the average efficiency of small-scale maize producers could be improved by 37% through better use of existing resources and technology. These findings highlight the need for action by government to assist small-scale maize producers improve efficiency.

scholarly journals Technical Efficiency among Pepper Farmers in Sarawak, Malaysia: A Stochastic Frontier Analysis

2020 ◽  
Vol 10 (3) ◽  
pp. 729-739
Author(s):  
Anita Rosli ◽  
Alias Radam ◽  
Khalid Abdul Rahim ◽  
Amin Mahir Abdullah
Keyword(s):  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Agricultural Practices ◽  
Piper Nigrum ◽  
Maximum Output ◽  
Full Time ◽  
Frontier Analysis ◽  
One Step ◽  
The Mean

This study aimed to estimate the technical efficiency among pepper (Piper nigrum. L) farmers in Sarawak, Malaysia, using Stochastic Frontier Analysis (SFA). SFA involves a one-step process that can estimate technical inefficacy factors simultaneously with the production frontier. 678 pepper farmers were involved in this study, and the data were collected from 2012 to 2013. The mean score for technical efficiency was 0.518, indicating that pepper farmers were not efficient. However, the inefficiency model showed that education level, membership in farmers’ association, full-time as a pepper farmer, attending courses and visiting sample farms were factors that significantly improved inefficiency. The major problem of pepper farming in Sarawak is poor agricultural practices where farmers do not fully utilize the available agricultural inputs to produce maximum output. Based on the findings, farmers must improve their knowledge and skills in pepper farming through agronomic education.

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