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Economic Efficiency Of Dairy Farms With Intensive And Grazing Production Systems

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  • Popovic, Rade

Abstract

The objective of this research was to examine efficiency of the most common milk production systems in central Serbia. Sample with 8 farms is not statistically representative, but allows use of Data envelopment analysis (DEA). Such technique allows measurement of whole farm efficiency and gives benchmarks for further farm analysis. DEA compare levels of input and outputs for a given dairy farm with all other analysed dairy farms, determining levels of efficiency for all farms with collected consistent data set. A DEA model to measure economic efficiency was developed. It measure efficiency of producing physical (milk) and economic outputs (income) by use of physical (labour and cows) and economic inputs (feed cost). Results revealed that economic efficiency was achieved by three from eight farms. In total, milk production system with grazing period had higher level of efficiency 0,796 comparing with intensive production system with 0,579. But, in intensive milk production system one farm showed efficiency. This indicates that some other input variables like farmer’s management capabilities influenced on efficiency.

Suggested Citation

  • Popovic, Rade, 2013. "Economic Efficiency Of Dairy Farms With Intensive And Grazing Production Systems," 50th Anniversary Seminar, Agriculture and Rural Development -Challenges of Transition and Integration Processes, September 27, 2013 161805, University of Belgrade, Department of Agricultural Economics, Faculty of Agriculture.
    • Handle: RePEc:ags:ubgc50:161805
    DOI: 10.22004/ag.econ.161805
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    References listed on IDEAS

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    1. Jeffrey, Scott R. & Grant, Heather-Ann R., 2001. "An Economic Analysis Of Productive Efficiency In Alberta Dairy Production," Project Report Series 24064, University of Alberta, Department of Resource Economics and Environmental Sociology.
    2. Kelly, E & Shalloo, L & Geary, U & Kinsella, A. & Thorne, F & Wallace, M, 2013. "An analysis of the factors associated with technical and scale efficiency of Irish dairy farms," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 2(3), pages 1-11, April.
    3. William W. Cooper & Lawrence M. Seiford & Kaoru Tone, 2006. "Introduction to Data Envelopment Analysis and Its Uses," Springer Books, Springer, number 978-0-387-29122-2, December.
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    Keywords

    Livestock Production/Industries; Production Economics; Productivity Analysis;
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