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Farm-Level and Consumption Responses to Improved Efficiency of Tanzania’s Informal Dairy Value Chain

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  • Twine, Edgar
  • Katjiuongua, Hikuepi

Abstract

The study uses a partial equilibrium model to determine the benefits that would accrue to smallholder dairy producers and consumers from improved efficiency of Tanzania’s informal dairy value chain. Two sources of technical efficiency are analyzed, namely, cost efficiency and scale efficiency. Using aggregate time series data to simulate the model, the study finds that improvement in scale efficiency offers relatively large benefits to both producers and consumers. However, benefits from improvement in cost efficiency are relatively small and disproportionate. It is concluded that improving technical efficiency in general would lead to significant benefits for producers and consumers.

Suggested Citation

  • Twine, Edgar & Katjiuongua, Hikuepi, 2015. "Farm-Level and Consumption Responses to Improved Efficiency of Tanzania’s Informal Dairy Value Chain," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 200329, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea15:200329
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    File URL: http://ageconsearch.umn.edu/record/200329/files/TWINE_KATJIUONGUA_AAEA_WAEA%202015_.pdf
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    References listed on IDEAS

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    Keywords

    Demand and Price Analysis; International Development; Livestock Production/Industries; Marketing; Production Economics; Productivity Analysis;

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