Scale Economies and Technical Efficiency of Quebec Dairy Farms

Alphonse G. Singbo and Bruno Larue

Cahiers de recherche CREATE from CREATE

Abstract: Canada’s average cost for milk production is amongst the highest in the world. The paper focusses on specific potential causes by estimating economies of scale and technical efficiency for a panel of Quebec dairy farms that spans the 2001-2010 period. The stochastic frontier analysis based on an input distance function is use to estimate returns to scale relationships across dairy farms. We show that there is significant economies scale to be exploited and that cost of production could also be reduced by improving technical efficiency. The results have important implications for Canada’s supply management policy, and more specifically for the trading of production quota between dairy farmers, as well as for the delivery of targeted extension services.

Keywords: Economies of scale; technical efficiency; dairy policy; supply management (search for similar items in EconPapers)
JEL-codes: Q12 Q18 (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-agr and nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.create.ulaval.ca/sites/create.ulaval.c ... ons/create2014-7.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

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:lvl:creacr:2014-7

Access Statistics for this paper

More papers in Cahiers de recherche CREATE from CREATE Contact information at EDIRC.
Bibliographic data for series maintained by Manuel Paradis ().