IDEAS home Printed from https://ideas.repec.org/a/caa/jnlage/v58y2012i2id11-2011-agricecon.html

Technical efficiency and supply chain practices in dairying: The case of India

Author

Listed:
  • Surender Mor

    (Chaudhary Devi Lal University (CDLU), Sirsa, India)

  • Supran Sharma

    (Shri Mata Vaishno Devi University (SMVDU), Katra, Jammu, India)

Abstract

The presented paper investigates the technical efficiency of small dairy farmers in India using the stochastic production frontier function approach. The study reveals that building the supply chain can increase the efficiency of dairy farmers, as the milk producers who are part of a cooperative supply chain experienced a higher technical efficiency as compared to those who do not follow the modern supply chain practices. The milk producers in the supply chain are found better crisis managers as their inefficiency is the least attributed to their own decisions. The possession of the crossbred livestock, schooling of the manager and the institutional finance have been found affecting the efficiency of the dairy farmers positively and significantly. The study recommends the expansion in the supply chain network of the cooperative milk societies for enhancing the efficiency and profitability of the dairy sector along with the provision of more crossbred livestock and an easy availability of finance.

Suggested Citation

  • Surender Mor & Supran Sharma, 2012. "Technical efficiency and supply chain practices in dairying: The case of India," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 58(2), pages 85-91.
    • Handle: RePEc:caa:jnlage:v:58:y:2012:i:2:id:11-2011-agricecon
    DOI: 10.17221/11/2011-AGRICECON
    as

    Download full text from publisher

    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/11/2011-AGRICECON.html
    Download Restriction: free of charge
    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/11/2011-AGRICECON.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.17221/11/2011-AGRICECON?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Boris E. Bravo-Ureta & Laszlo Rieger, 1991. "Dairy Farm Efficiency Measurement Using Stochastic Frontiers and Neoclassical Duality," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(2), pages 421-428.
    2. Coelli, Tim J. & Battese, George E., 1996. "Identification Of Factors Which Influence The Technical Inefficiency Of Indian Farmers," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 40(2), pages 1-26, August.
    3. Vecdi DEMIRCAN & Turan BINICI & Carl R. ZULAUF, 2010. "Assessing pure technical efficiency of dairy farms in Turkey," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 56(3), pages 141-148.
    4. Abid A. Burki & Mushtaq A. Khan, 2008. "Milk Supply Chain and Efficiency of Smallholder Dairy Producers in Pakistan," Microeconomics Working Papers 22252, East Asian Bureau of Economic Research.
    5. Reardon, Thomas & Barrett, Christopher B., 2000. "Agroindustrialization, globalization, and international development: An overview of issues, patterns, and determinants," Agricultural Economics, Blackwell, vol. 23(3), pages 195-205, September.
    6. Kodde, David A & Palm, Franz C, 1986. "Wald Criteria for Jointly Testing Equality and Inequality Restriction s," Econometrica, Econometric Society, vol. 54(5), pages 1243-1248, September.
    7. Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
    8. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
    9. Binam, Joachim Nyemeck & Tonye, Jean & wandji, Njankoua & Nyambi, Gwendoline & Akoa, Mireille, 2004. "Factors affecting the technical efficiency among smallholder farmers in the slash and burn agriculture zone of Cameroon," Food Policy, Elsevier, vol. 29(5), pages 531-545, October.
    10. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:ags:icar24:344991 is not listed on IDEAS
    2. Nikam, V. & Veesam, H. & Kiran Kumara, T.M. & Chand, P., 2023. "Farmer Producer Organizations in India: Challenges and Prospects," Policy Papers 344991, ICAR National Institute of Agricultural Economics and Policy Research (NIAP).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Saldias, Rodrigo & von Cramon-Taubadel, Stephan, 2012. "Access to credit and the determinants of technical inefficiency among specialized small farmers in Chile," DARE Discussion Papers 1211, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    2. Zahidul Islam, K.M. & Sumelius, John & Bäckman, Stefan, 2012. "Do differences in technical efficiency explain the adoption rate of HYV rice? Evidence from Bangladesh," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 13(01), pages 1-18.
    3. Paul Wilson & Dave Hadley & Stephen Ramsden & Ioannis Kaltsas, 1998. "Measuring and Explaining Technical Efficiency in UK Potato Production," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(3), pages 294-305, September.
    4. Puig-Junoy, Jaume & Argiles, Josep M., 2004. "The influence of management accounting use on farm inefficiency," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 5(2), pages 1-20, August.
    5. Nguyen To-The & Tuan Nguyen-Anh, 2021. "Impact of government intervention to maize efficiency at farmer’s level across time: a robust evidence in Northern Vietnam," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(2), pages 2038-2061, February.
    6. K. Ogundari, 2008. "Resource-productivity, allocative efficiency and determinants of technical efficiency of rainfed rice farmers: A guide for food security policy in Nigeria," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 54(5), pages 224-233.
    7. García-Suárez, Federico & Pérez-Quesada, Gabriela & Molina, Carlos, . "Rangeland cattle production in Uruguay: Single-output versus multi-output efficiency measures," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 22(01).
    8. repec:aer:wpaper:172 is not listed on IDEAS
    9. Md Abdur Rouf, 2020. "Evaluation of Agricultural Projects by Parametric Cost Efficiency and Productivity-gap Approaches: An Empirical Study of Flood Control and Drainage Systems in the Southwest Coastal Area of Bangladesh," Japanese Journal of Agricultural Economics (formerly Japanese Journal of Rural Economics), Agricultural Economics Society of Japan (AESJ), vol. 22.
    10. Karunarathna, Muditha & Wilson, Clevo, 2017. "Agricultural biodiversity and farm level technical efficiency: An empirical investigation," Journal of Forest Economics, Elsevier, vol. 29(PA), pages 38-46.
    11. Daniel Solís & Boris E. Bravo‐Ureta & Ricardo E. Quiroga, 2009. "Technical Efficiency among Peasant Farmers Participating in Natural Resource Management Programmes in Central America," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(1), pages 202-219, February.
    12. Manish Roy & Ritwik Mazumder, 2016. "Technical Efficiency of Fish Catch in Traditional Fishing: A Study in Southern Assam," Journal of Regional Development and Planning, Rajarshi Majumder, vol. 5(1), pages 55-68.
    13. Goyal, S.K. & Suhag, K.S. & Pandey, U.K., 2006. "An Estimation of Technical Efficiency of Paddy Farmers in Haryana State of India," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 61(01), pages 1-15.
    14. Adegbite, O. & Adeoye, I. B., . "Technical Efficiency of Pineapple Production in Osun State, Nigeria," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 7(01), pages 1-10.
    15. repec:ipg:wpaper:2014-448 is not listed on IDEAS
    16. Zavale, Helder & Mabaya, Edward T. & Christy, Ralph D., 2005. "Smallholders’ Cost Efficiency in Mozambique: Implications for Improved Maize Seed Adoption," Staff Papers 121066, Cornell University, Department of Applied Economics and Management.
    17. Cemaleddin Gulenay & Ibrahim Guran Yumusak, 2023. "Analyzing Common Market Options in the Scope of OIC," International Econometric Review (IER), Econometric Research Association, vol. 15(2), pages 28-44, September.
    18. Nehring, Richard & Erickson, Kenneth & Michael, Harris & Hallahan, Charlie & Katchova, Ani, "undated". "Heartland, Southern Seaboard, and Prairie Gateway: A Farm-Level Analysis," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235666, Agricultural and Applied Economics Association.
    19. Edward Ebo ONUMAH & Bernhard BRÜMMER & Gabriele HÖRSTGEN-SCHWARK, 2010. "Productivity of the hired and family labour and determinants of technical inefficiency in Ghana's fish farms," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 56(2), pages 79-88.
    20. Bozoglu, Mehmet & Ceyhan, Vedat, 2007. "Measuring the technical efficiency and exploring the inefficiency determinants of vegetable farms in Samsun province, Turkey," Agricultural Systems, Elsevier, vol. 94(3), pages 649-656, June.
    21. Dairo Estrada & Poldy Osorio, 2004. "Effects of Financial Capital on Colombian Banking Efficiency," Revista ESPE - Ensayos sobre Política Económica, Banco de la Republica de Colombia, vol. 22(47), pages 162-201, December.
    22. Olli-Pekka Kuusela & Maria S. Bowman & Gregory S. Amacher & Richard B. Howarth & Nadine T. Laporte, 2020. "Does infrastructure and resource access matter for technical efficiency? An empirical analysis of fishing and fuelwood collection in Mozambique," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(3), pages 1811-1837, March.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:caa:jnlage:v:58:y:2012:i:2:id:11-2011-agricecon. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ivo Andrle (email available below). General contact details of provider: https://www.cazv.cz/en/home/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.