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A metafrontier approach to measuring technical efficiencies across the UK dairy sector

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  • Barnes, Andrew Peter
  • Revoredo-Giha, Cesar
  • Sauer, Johannes

Abstract

A regional approach is applied to measure technical efficiencies on dairy farms which employs the deterministic metafrontier approach. We construct six super regions for the UK, i.e. Eastern, Western, Northern England, Wales, Scotland and Northern Ireland. Data are collected through three different administrative systems, all be it under the same FADN guidance. We find for dairy farming comparative indicators of performance in all three data sets. The stochastic frontier approach is applied to construct 6 regional frontiers and a pooled (UK) dataset for comparison. A likelihood ratio test rejects the null hypothesis that these regions operate under a common frontier which may indicate bias in previous attempts to measure dairying efficiency at the country level. Mean technical efficiencies are high for the period 2005 to 2008, though there is some indication that little technical progress has occurred since decoupling of CAP payments from production in all regions. The metafrontier presents estimates against a common technology and mean scores range from below 0.50 for the English regions and Northern Ireland, 0.52 for Wales and 0.56 for Scotland. This paper promotes the application of the deterministic metafrontier approach for similar sub-country studies.

Suggested Citation

  • Barnes, Andrew Peter & Revoredo-Giha, Cesar & Sauer, Johannes, 2011. "A metafrontier approach to measuring technical efficiencies across the UK dairy sector," 122nd Seminar, February 17-18, 2011, Ancona, Italy 99369, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa122:99369
    DOI: 10.22004/ag.econ.99369
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    References listed on IDEAS

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    1. C. J. O'Donnell & W. E. Griffiths, 2006. "Estimating State-Contingent Production Frontiers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(1), pages 249-266.
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    1. Bahta, Sirak & Baker, Derek & Malope, Patrick & Katijuongua, Hikuepi, 2015. "A metafronteir analysis of determinants of technical efficiency in beef farm types: an application to Botswana," 2015 Conference, August 9-14, 2015, Milan, Italy 211194, International Association of Agricultural Economists.
    2. Silva, Haroldo José Torres da & Marques, Pedro Valentim, 2021. "Heterogeneity in the productivity of sugar-energy mills in Brazil," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(3), February.
    3. Klepacka, Anna M. & Sobczyński, Tadeusz & Florkowski, Wojciech J. & Revoredo-Giha, Cesar, 2013. "Effects of the Common Agricultural Policy on Non-Family Farm Employment in Primary and Secondary Agricultural Areas," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150716, Agricultural and Applied Economics Association.
    4. Sobczynski, Tadeusz & Klepacka, Anna M. & Revoredo-Giha, Cesar & Florkowski, Wojciech Jan, 2014. "Dairy farm cost efficiency in leading milk producing regions in Poland," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182647, European Association of Agricultural Economists.

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