Formal Participation in a Milk Supply Chain and Technical Inefficiency of Smallholder Dairy Farms in Pakistan
AbstractThis paper provides empirical evidence on the impact on technical inefficiency of smallholder dairy producers when they formally participate in a milk supply chain. Here the stochastic production frontier and technical inefficiency effects model are estimated based on the data gathered from 800 smallholder dairy farms in Pakistan. The results suggest that the technical inefficiency of the participating farms is significantly reduced. A strong impact of the supply chain is also detected in reducing technical inefficiency of farms that are located in remote areas and on those that have larger herd-size. Experienced farmers upto the age of 36 years have the advantage of reducing technical inefficiency. The remaining differences in relative inefficiency of dairy farms are accounted for by severe long-term depressive disorders.
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Bibliographic InfoArticle provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.
Volume (Year): 50 (2011)
Issue (Month): 1 ()
Agri-food Supply Chain; Production Frontiers; Dairy Efficiency; Food Policy; Pakistan;
Find related papers by JEL classification:
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- 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
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
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