Agricultural Research Management Information System

Home
Research Summary
Search
About Us
- ARMIS
- Brochure
Contact Us
Report
User Request
Data Input
Help
- Operation Manual
  - PDF
  - Video
- Program Area & Commodity
We have reached 37600 number of research entries at this moment.

- Logout

Research Detail

Home
Research
Detail

Technical Efficiency of Dairy Operators in Bangladesh - a Stochastic Frontier Analysis

A. R. Khan
Commercial Bank, Bangladesh

S. K. Raha
Professor
Dept. of Cooperation and Marketing, Bangladesh Agricultural University, Mymensingh

H. Weindlmaier
Professor
Business Management of the Dairy and Food lndustry, Technical University of Munich, Germany

Abstract/ Executive Summary:

A stochastic frontier function is specified and estimated to examine the levels of farm specific technical efficiencies of dairy operation. The model has been estimated simultaneously with the economic inefficiency effect using maximum likelihood for small, medium and large sized dairy farmers in five districts of Bangladesh. The estimated mean technical efficiency of small, medium and large farmers are 64. 75 and 78 percent respectively. The study reveals that there is significant inefficiency effect in the dairy farming and labor has negative impact on the inefficiency effect for all type of farms.

Keywords: Dairy farming, Stochastic frontier, Technical efficiency, Bangladesh

Location: Gazipur, Manikgonj, Pabna, Sirajgonj and Rangpur

Start Date:

End Date:

Program Area: Socio-economic and Policy

Commodity: Milk

Objectives:

To examine the levels of farm specific technical efficiencies of dairy operation.

Methodology:

Considering the availability and geographic concentration of milk production and dairy farming being an economic activity, five districts of Bangladesh namely, Gazipur, Manikgonj, Pabna, Sirajgonj and Rangpur were selected as study areas. Two upazilas from each district were selected on the basis of concentration of milk production. So, total selected upazilas were 10. The total commercial dairy farms were stratified into three groups based on herd size namely small (2-5 cows), medium (6-11 cows) and large (12 cows and above) to observe the method of dairy cattle rearing and milk production at different level. The commercial dairy farms were selected through stratified random sampling procedure. From each upazila, eighteen farms were randomly selected taking 6 from each category of herd size namely small, medium and large. Thus the total sample size of commercial dairy farms from 10 selected upazilas was 180. There are four major approaches to measure and estimate efficiency. These are the non-parametric programming approach, the parametric programming approach, the deterministic statistical approach and stochastic frontier production function approach. Among these, the stochastic frontier production function and non-parametric programming i.e. data envelopment analysis (DEA), are the most popular approach. The stochastic frontier approach is preferred for assessing efficiency in agriculture because of the inherent stochasticity involved. There are several reviews of the applications of the stochastic frontier approach 111 agriculture.

Source of Information: Bangladesh J. Train. and Dev.; Vol. 19-20 (1&2), 2006-07: 47-59 ; ISSN 1013-0306

Article Link (Online Journal):

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

The study reveals that technical inefficiency existed in the milk production for small, medium and large dairy farms. Milk production can be considerably improved without increasing the level of inputs in all size dairy farms if the inefficiency is reduced by solving the problems associated with dairy farming were identified in the study areas.

Knowledge Management: Journal