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Using the information about dairy herd’s genetic level and milk quality in explaining the technical efficiency of Estonian dairy farms: a two-stage (DEA and Tobit) approach

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  • Luik, Helis
  • Viira, Ants-Hannes
  • Värnik, Rando

Abstract

This paper investigates the effects of dairy herd’s genetic level and milk quality on the technical efficiency (TE) of Estonian dairy farms in 2012. A two-stage approach was used that combined data envelopment analysis (DEA), for finding the TE scores, and Tobit regression, for estimating the effects of the chosen variables on farm TE. Our results indicate that relative breeding value for milk production, which is a measure of herd’s genetic level, has a positive effect on farm TE. Milk quality affects TE also positively: higher somatic cell counts decreased and higher content of milk solids increased farm TE.

Suggested Citation

  • Luik, Helis & Viira, Ants-Hannes & Värnik, Rando, 2014. "Using the information about dairy herd’s genetic level and milk quality in explaining the technical efficiency of Estonian dairy farms: a two-stage (DEA and Tobit) approach," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182650, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae14:182650
    DOI: 10.22004/ag.econ.182650
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    References listed on IDEAS

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    1. David Roibas & Antonio Alvarez, 2012. "The contribution of genetics to milk composition: evidence from Spain," Agricultural Economics, International Association of Agricultural Economists, vol. 43(2), pages 133-141, March.
    2. Svend Rasmussen, 2010. "Scale efficiency in Danish agriculture: an input distance--function approach," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 37(3), pages 335-367, September.
    3. Peter Bogetoft & Lars Otto, 2011. "Benchmarking with DEA, SFA, and R," International Series in Operations Research and Management Science, Springer, number 978-1-4419-7961-2, December.
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    1. Silva Emiliana & Almeida Bruno & Marta-Costa Ana Alexandra, 2018. "Efficiency of the Dairy Farms: A Study from Azores (Portugal)," European Countryside, Sciendo, vol. 10(4), pages 725-734, December.

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