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Feed use intensification and technical efficiency of dairy farms in New Zealand

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  • Wanglin Ma
  • Kathryn Bicknell
  • Alan Renwick

Abstract

In recent years, the traditionally pasture‐based dairy farms in New Zealand have become more intensive by using higher proportions of supplementary feed. This trend has been attributed to a range of factors, such as productivity enhancement, overcoming pasture deficits and the improvement of body condition scores. However, there is a lack of knowledge as to how feed use intensification affects the technical efficiency of dairy farms in New Zealand. This paper addresses the research gap by estimating the impact of feed use intensification on the technical efficiency of New Zealand dairy farms, using a fixed effects stochastic production frontier model and a balanced panel of 257 farms from 2010 to 2013. The empirical results show that technical efficiency on New Zealand dairy farms is positively and significantly influenced by feed use intensification, herd size and milking frequency.

Suggested Citation

  • Wanglin Ma & Kathryn Bicknell & Alan Renwick, 2019. "Feed use intensification and technical efficiency of dairy farms in New Zealand," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(1), pages 20-38, January.
    • Handle: RePEc:bla:ajarec:v:63:y:2019:i:1:p:20-38
    DOI: 10.1111/1467-8489.12283
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    Cited by:

    1. Naphtal, Habiyaremye & Emily, Ouma Awuor & Nadhem, Mtimet & Gideon, Obare Aiko, 2023. "Profit efficiency and farm productivity: Implications for adoption of dairy best practices among milk producers in Rwanda," 2023 Seventh AAAE/60th AEASA Conference, September 18-21, 2023, Durban, South Africa 365968, African Association of Agricultural Economists (AAAE).
    2. Yangyuyu Luo & Sayeeda Bano, 2020. "Modelling New Zealand dairy products: evidence on export survival and duration," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), pages 605-631, July.
    3. Hongyun Zheng & Wanglin Ma, 2021. "The role of resource reallocation in promoting total factor productivity growth: Insights from China’s agricultural sector," Review of Development Economics, Wiley Blackwell, vol. 25(4), pages 2350-2371, November.
    4. Robbie Maris & Zack Dorner, 2021. "Cost Efficiency Analysis using Operating Profit Margin for the New Zealand Dairy Industry," Working Papers in Economics 21/04, University of Waikato.
    5. 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.
    6. Zetian Yu & Hao Liu & Hua Peng & Qiantong Xia & Xiaoxia Dong, 2023. "Production Efficiency of Raw Milk and Its Determinants: Application of Combining Data Envelopment Analysis and Stochastic Frontier Analysis," Agriculture, MDPI, vol. 13(2), pages 1-25, February.
    7. Zheng, Hongyun & Ma, Wanglin & Wang, Fang & Li, Gucheng, 2021. "Does internet use improve technical efficiency of banana production in China? Evidence from a selectivity-corrected analysis," Food Policy, Elsevier, vol. 102(C).
    8. Chenyang Liu & Xinyao Wang & Ziming Bai & Hongye Wang & Cuixia Li, 2023. "Does Digital Technology Application Promote Carbon Emission Efficiency in Dairy Farms? Evidence from China," Agriculture, MDPI, vol. 13(4), pages 1-23, April.
    9. Evans Brako Ntiamoah & Martinson Ankrah Twumasi & Bismark Ameyaw & Edmond Yeboah Nyamah & Dongmei Li, 2025. "Exploring the impact of agricultural innovation practices on technical efficiency: The case of smallholder pineapple farmers in Ghana," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(11), pages 26349-26373, November.
    10. Menglu Li & Shemei Zhang & Nawab Khan, 2024. "Do farmers' professional cooperatives improve agricultural technical efficiency? Evidence using a national‐level dataset of China," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 95(2), pages 363-383, June.
    11. Lingran Yuan & Shurui Zhang & Shuo Wang & Zesen Qian & Binlei Gong, 2021. "World agricultural convergence," Journal of Productivity Analysis, Springer, vol. 55(2), pages 135-153, April.

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