ECONOMIC EFFICIENCY OF DAIRY FARMS WITH INTENSIVE AND GRAZING PRODUCTION SYSTEMS

Rade Popovic

No 161805, 50th Anniversary Seminar, Agriculture and Rural Development -Challenges of Transition and Integration Processes, September 27, 2013 from University of Belgrade, Department of Agricultural Economics, Faculty of Agriculture

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.

Keywords: Livestock Production/Industries; Production Economics; Productivity Analysis (search for similar items in EconPapers)
Pages: 11
Date: 2013-09
New Economics Papers: this item is included in nep-agr and nep-eff
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ubgc50:161805

DOI: 10.22004/ag.econ.161805

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