Formal Participation in a Milk Supply Chain and Technical Inefficiency of Smallholder Dairy Farms in Pakistan

Abid Burki () and Mushtaq Khan
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Mushtaq Khan: Department of Economics, Lahore University of Management Sciences, Lahore.

The Pakistan Development Review, 2011, vol. 50, issue 1, 63-81

Abstract: This paper provides empirical evidence on the impact on technical inefficiency of smallholder dairy producers when they formally participate in a milk supply chain. Here the stochastic production frontier and technical inefficiency effects model are estimated based on the data gathered from 800 smallholder dairy farms in Pakistan. The results suggest that the technical inefficiency of the participating farms is significantly reduced. A strong impact of the supply chain is also detected in reducing technical inefficiency of farms that are located in remote areas and on those that have larger herd-size. Experienced farmers upto the age of 36 years have the advantage of reducing technical inefficiency. The remaining differences in relative inefficiency of dairy farms are accounted for by severe long-term depressive disorders.

Keywords: Agri-food Supply Chain; Production Frontiers; Dairy Efficiency; Food Policy; Pakistan (search for similar items in EconPapers)
JEL-codes: D24 Q12 Q13 Q18 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:pid:journl:v:50:y:2011:i:1:p:63-81

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