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Technical Efficiency of Dairy Farms: An Empirical Study of Producers in Poland

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  • Artur Wilczynski
  • Ewa Koloszycz
  • Michal Switlyk

Abstract

Purpose: The main objective of this article was to determine the technical efficiency of Polish dairy farms in 2008-2017, taking into account the dependence on the herd size, the milk yield of cows and the effects of scale. Design/Methodology/Approach: The non-parametric DEA method based on the concept of border efficiency was used to assess technical efficiency. The research uses models assuming constant (CCR) and variable returns to scale (BCC). The source of the data was information collected by the Farm Accountancy Data Network (FADN) in Poland. Data came from farms specializing dairying (type 45), with more than 15 cows. Findings: The results of the conducted research indicate a higher share of efficient farms using the model assuming variable returns to scale. The average efficiency ratio increased along with the increase in the size of the herd of cows and the improvement in the milk yields of cows. Practical Implications: The results of this study will be used to determine rationally the combination of inputs in dairy production. The result of these activities is an increase of efficiency and the use of economies of scale. The article clearly presents among which farm groups exists the lowest efficiency (cow herd size and milk yield). Originality/Value: The study fills a gap in approach methods to conducting research on dairy farm efficiency. On the one hand, the value of the article is built by the size of observation field, on the other – dairy farms classification by cow herd size and milk yield.

Suggested Citation

  • Artur Wilczynski & Ewa Koloszycz & Michal Switlyk, 2020. "Technical Efficiency of Dairy Farms: An Empirical Study of Producers in Poland," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 117-127.
    • Handle: RePEc:ers:journl:v:xxiii:y:2020:i:1:p:117-127
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    Cited by:

    1. Sang Woo Han & Song Soo Lim & Aida Balkibayeva, 2022. "Productive efficiency and trade opportunities for Kazakhstan dairy farms," Economia agro-alimentare, FrancoAngeli Editore, vol. 24(1), pages 1-20.
    2. Zdeňka Náglová & Tamara Rudinskaya, 2021. "Factors Influencing Technical Efficiency in the EU Dairy Farms," Agriculture, MDPI, vol. 11(11), pages 1-14, November.
    3. Han, Sang Woo & Lim, Song Soo & Balkibayeva, Aida, 2021. "Productive efficiency and trade opportunities for Kazakhstan dairy farms," Economia agro-alimentare / Food Economy, Italian Society of Agri-food Economics/Società Italiana di Economia Agro-Alimentare (SIEA), vol. 24(1), December.

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    More about this item

    Keywords

    Returns to scale; DEA; cow herd size; milk yield; outputs; inputs.;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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