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Sources of technical inefficiency of smallholder farmers in milk production in Ethiopia

Author

Listed:
  • Adane, Zewdie
  • Shiferaw, Kaleb
  • Gebremedhin, Berhanu

Abstract

This paper estimates technical inefficiency in milk production of smallholder dairy farmers in the highlands of Ethiopia and identifies factors associated with the observed inefficiency using a stochastic frontier production function approach. The analysis utilizes cross-section data collected from 1277 farmers. The result indicates a mean technical efficiency of 55%, suggesting sizeable technical inefficiency in milk production. The results further show that household wealth, education level and access to markets and institutions are the main drivers of technical efficiency in dairy production. Evidently by improving smallholder access to market and institutions as well as investing on adult education, it is possible to bring considerable gain in milk production.

Suggested Citation

  • Adane, Zewdie & Shiferaw, Kaleb & Gebremedhin, Berhanu, 2015. "Sources of technical inefficiency of smallholder farmers in milk production in Ethiopia," 2015 Conference, August 9-14, 2015, Milan, Italy 210876, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae15:210876
    DOI: 10.22004/ag.econ.210876
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    Cited by:

    1. Shiferaw, K. & Gebremedhin, B. & Tegegne, A. & Hoekstra, D., 2018. "Analysis of milk production, butter marketing and household use of inputs in rural Ethiopia," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277104, International Association of Agricultural Economists.
    2. Muuz Hadush, 2021. "Does it pay to switch from free grazing to stall feeding? Impact of stall feeding practice on household welfare in Tigrai Ethiopia," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-29, December.
    3. Muuz Hadush & Berhe Gebregewergs Hagos, 2018. "The economic impact of stall feeding on cow milk production and calf death: empirical evidence from Northern Ethiopia," Asian Journal of Agriculture and rural Development, Asian Economic and Social Society, vol. 8(1), pages 64-73, January.
    4. Hadush, Muuz, 2018. "Impact of improved animal feeding practice on milk production, consumption and animal market participation in Tigrai, Ethiopia," Problems of Agricultural Economics / Zagadnienia Ekonomiki Rolnej 276473, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).

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    Keywords

    Agribusiness; Agricultural Finance;

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