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

Zewdie Adane, Kaleb Shiferaw () and Berhanu Gebremedhin

No 210876, 2015 Conference, August 9-14, 2015, Milan, Italy from International Association of Agricultural Economists

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.

Keywords: Agribusiness; Agricultural Finance (search for similar items in EconPapers)
Pages: 25
Date: 2015
New Economics Papers: this item is included in nep-eff
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae15:210876

DOI: 10.22004/ag.econ.210876

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