IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Driving and restraining forces for economic and technical efficiency in dairy farms

  • Hansson, Helena
Registered author(s):

    The overall aim of this study was to analyze what drives and restrains efficient dairy production, based on data from dairy farms in Sweden. Key back ground factors of the study was that Swedish farms are getting larger and fewer, the Mid Term Review which changes the market situation and the evidence from several international studies that dairy farms can become more efficient than they are. The literature revealed three themes which were considered as fruitful conceptual frameworks for the analysis: the overall structure of inefficiency, the farm itself and the farmer managerial capacity. The first theme was analyzed in Paper I and II, the second theme in Paper III and the third in Paper IV. The study was based on farm accounting data from Statistics Sweden, a database of gross margin budgets for different agricultural production lines and regions in Sweden (Agriwise), a dairy cow recording scheme and a mail-questionnaire. All papers were based on data envelopment efficiency scores and regression analyzes. Paper I analyzed the structure of inefficiency by considering which efficiency perspective (input or output) offers the more opportunities for improvements. Further, the links between management's critical success factors (MCSFs) and efficiency were analyzed. It was concluded that especially the allocative input efficiency could be improved. Moreover, the links between MCSFs and efficiency were typically weak. Paper II continued to analyze the overall structure of inefficiency by analyzing how farm size affected farm level efficiency. It was concluded that technical and allocative efficiency scores are typically affected by farm size in opposite ways. Paper III analyzed how aspects of the farm itself, typically determined in the long-run strategic management, affected farm efficiency. It was e.g. concluded that high focus on dairy production restrains efficiency, while a discussion partner drives efficiency. Paper IV analyzed how differences in farmer managerial capacity, i.e. differences in personal aspects and decision making characteristics influenced farm efficiency. It was e.g. concluded that education in agriculture and participation in study circles drive efficiency whereas a positive profitability perception restrains efficiency.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://pub.epsilon.slu.se/1614/
    Download Restriction: no

    Paper provided by Swedish University of Agricultural Sciences, Department of Economics in its series Department of Economics publications with number 1614.

    as
    in new window

    Length:
    Date of creation: 2007
    Date of revision:
    Handle: RePEc:sua:ekonwp:1614
    Contact details of provider: Postal: Box 7013, 750 07 UPPSALA
    Phone: 018-67 1724
    Fax: 018-67 3502
    Web page: http://www.slu.se/ekonomi

    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. Ohlmer, Bo & Olson, Kent & Brehmer, Berndt, 1998. "Understanding farmers' decision making processes and improving managerial assistance," Agricultural Economics, Blackwell, vol. 18(3), pages 273-290, May.
    2. Alfons Oude Lansink & Ky–sti Pietola, 2002. "Effciency and productivity of conventional and organic farms in Finland 1994--1997," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 29(1), pages 51-66, March.
    3. Léopold Simar & Paul Wilson, 2000. "Statistical Inference in Nonparametric Frontier Models: The State of the Art," Journal of Productivity Analysis, Springer, vol. 13(1), pages 49-78, January.
    4. Wilson, Paul & Hadley, David & Asby, Carol, 2001. "The influence of management characteristics on the technical efficiency of wheat farmers in eastern England," Agricultural Economics, Blackwell, vol. 24(3), pages 329-338, March.
    5. Reinhard, Stijn & Knox Lovell, C. A. & Thijssen, Geert J., 2000. "Environmental efficiency with multiple environmentally detrimental variables; estimated with SFA and DEA," European Journal of Operational Research, Elsevier, vol. 121(2), pages 287-303, March.
    6. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-44, June.
    7. Afonso, Antonio & St. Aubyn, Miguel, 2006. "Cross-country efficiency of secondary education provision: A semi-parametric analysis with non-discretionary inputs," Economic Modelling, Elsevier, vol. 23(3), pages 476-491, May.
    8. Resti, Andrea, 1997. "Evaluating the cost-efficiency of the Italian Banking System: What can be learned from the joint application of parametric and non-parametric techniques," Journal of Banking & Finance, Elsevier, vol. 21(2), pages 221-250, February.
    9. Simar, Leopold & Wilson, Paul W., 2007. "Estimation and inference in two-stage, semi-parametric models of production processes," Journal of Econometrics, Elsevier, vol. 136(1), pages 31-64, January.
    10. Sharma, Khem R. & Leung, PingSun & Zaleski, Halina M., 1999. "Technical, allocative and economic efficiencies in swine production in Hawaii: a comparison of parametric and nonparametric approaches," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 20(1), January.
    11. Tauer, Loren W., 1993. "Short-Run And Long-Run Efficiencies Of New York Dairy Farms," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 22(1), April.
    12. Trip, G. & Thijssen, G. J. & Renkema, J. A. & Huirne, R. B. M., 2002. "Measuring managerial efficiency: the case of commercial greenhouse growers," Agricultural Economics, Blackwell, vol. 27(2), pages 175-181, August.
    13. Trip, G. & Thijssen, G.J. & Renkema, J.A. & Huirne, R.B.M., 2002. "Measuring managerial efficiency: the case of commercial greenhouse growers," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 27(2), August.
    14. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    15. Helfand, Steven M., 2003. "Farm Size And The Determinants Of Productive Efficiency In The Brazilian Center-West," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25890, International Association of Agricultural Economists.
    16. Rougoor, Carin W. & Trip, Ger & Huirne, Ruud B. M. & Renkema, Jan A., 1998. "How to define and study farmers' management capacity: theory and use in agricultural economics," Agricultural Economics, Blackwell, vol. 18(3), pages 261-272, May.
    17. Tim J. Coelli, 1995. "Recent Developments In Frontier Modelling And Efficiency Measurement," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 39(3), pages 219-245, December.
    18. Ohlmer, Bo & Olson, Kent & Brehmer, Berndt, 1998. "Understanding farmers' decision making processes and improving managerial assistance," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 18(3), May.
    19. Sharma, Khem R. & Leung, PingSun & Zaleski, Halina M., 1999. "Technical, allocative and economic efficiencies in swine production in Hawaii: a comparison of parametric and nonparametric approaches," Agricultural Economics, Blackwell, vol. 20(1), pages 23-35, January.
    20. Coelli, Tim & Perelman, Sergio, 1999. "A comparison of parametric and non-parametric distance functions: With application to European railways," European Journal of Operational Research, Elsevier, vol. 117(2), pages 326-339, September.
    21. Rougoor, Carin W. & Trip, Ger & Huirne, Ruud B.M. & Renkema, Jan A., 1998. "How to define and study farmers' management capacity: theory and use in agricultural economics," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 18(3), May.
    22. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    23. Cullinane, Kevin & Wang, Teng-Fei & Song, Dong-Wook & Ji, Ping, 2006. "The technical efficiency of container ports: Comparing data envelopment analysis and stochastic frontier analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(4), pages 354-374, May.
    24. de Koeijer, T. J. & Wossink, G. A. A. & Smit, A. B. & Janssens, S. R. M. & Renkema, J. A. & Struik, P. C., 2003. "Assessment of the quality of farmers' environmental management and its effects on resource use efficiency: a Dutch case study," Agricultural Systems, Elsevier, vol. 78(1), pages 85-103, October.
    25. Alvarez, Antonio & Arias, Carlos, 2004. "Technical efficiency and farm size: a conditional analysis," Agricultural Economics, Blackwell, vol. 30(3), pages 241-250, May.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:sua:ekonwp:1614. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alejandro Engelmann)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.