Measuring Cost Efficiency in Smallholder Dairy Farms: Empirical Evidence from Northeast Thailand

Ma. Lucila A. Lapar, Alexis Arthur B. Garcia, Satit Aditto and Patcharee Suriya

No 19514, 2005 Annual meeting, July 24-27, Providence, RI from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: This paper investigates smallholder dairy competitiveness from estimates of a translog cost frontier using data from 130 smallholder dairy farms in six provinces of Northeast Thailand. Cost efficiency estimates indicate that there is significant scope for improving cost efficiency in smallholder dairy farms in Northeast Thailand, and costs can be reduced by 26 percent on average. The empirical results also strongly suggest that smaller farms are more cost efficient than larger ones within this sample of smallholder dairy farms. Proper herd management for maintaining an optimal milking cows-herd size ratio coupled with yield-enhancing technologies can enhance cost efficiency. Feed technology options that can potentially reduce costs while maintaining yield levels may also have potential for doing so but the empirical evidence on this is weak, suggesting a gap between technology dissemination and successful adoption. Further validation may be needed towards adjustment in the technology to suit the varying circumstances and resources of smallholder dairy systems. Innovations for strengthening extension modalities and their delivery systems may also need to be explored to enhance the long-term viability of smallholder dairy systems.

Keywords: Farm; Management (search for similar items in EconPapers)
Pages: 35
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://ageconsearch.umn.edu/record/19514/files/sp05la07.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea05:19514

DOI: 10.22004/ag.econ.19514

Access Statistics for this paper

More papers in 2005 Annual meeting, July 24-27, Providence, RI from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().