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Technical Efficiency and its Determinants in Dairy Cattle

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  • Michalickova, Monika
  • Krupova, Zuzana
  • Krupa, Emil

Abstract

The objective of this study was to analyse the technical efficiency (TE) of the milk production on totally 83 cattle herds (database of APRC Nitra) in the period 2006-2010 and to synthesise impact of the main inputs (costs) on the TE value. A nonparametric approach Data Envelopment Analysis with the input-oriented variable return to scale model was used to evaluate the TE value. Average value of TE in the analysed period was 0.96, i.e. evaluated herds reached 96% of technical efficiency in milk production on average. For these, reduction of inputs by 4% is recommended to reach the efficiency at the given level of milk yield. Value of individual inputs: total feed costs, material costs, labour costs, repair and service, depreciation, other direct costs and overhead costs, should be reduced by 3.7, 10.0, 3.3, 15.8, 2.1, 2.9 and 8.5% respectively, while maintaining the same level of output. It is possible to state that the analysed farms are inefficient in utilization of inputs for the given level of output. The TE value was statistically significantly influenced by the feed costs only. The negative influence of this factor indicates inefficient utilization of feeds (balance of feeding ration, losses of storage, reciprocal substitution of feeds) or inefficient utilization of its production potential in relation to the given output level.

Suggested Citation

  • Michalickova, Monika & Krupova, Zuzana & Krupa, Emil, 2013. "Technical Efficiency and its Determinants in Dairy Cattle," Acta Oeconomica et Informatica, Faculty of Economics and Management, Slovak Agricultural University in Nitra (FEM SPU), vol. 16(1), pages 1-10, February.
    • Handle: RePEc:ags:aoeisl:144682
    DOI: 10.22004/ag.econ.144682
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    References listed on IDEAS

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    2. Jindřich ŠPIČKA & Ondřej MACHEK, 2015. "Change in the production efficiency of European specialized milk farming," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 61(1), pages 1-13.
    3. Ahmed, Osama & Abdel-Salam, Sameh & Rungsuriyawiboon, Supawat, 2020. "Measuring the economic performance of mixed crop-livestock farming systems in Egypt: A non-parametric DEA approach," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 19(2), pages 133-145.
    4. Artur Wilczynski & Ewa Koloszycz & Michal Switlyk, 2020. "Technical Efficiency of Dairy Farms: An Empirical Study of Producers in Poland," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 117-127.
    5. Monika MICHALIČKOVÁ & Zuzana KRUPOVÁ & Peter POLÁK & Ladislav HETÉNYI & Emil KRUPA, 2014. "Development of competitiveness and its determinants in Slovak dairy farms," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 60(2), pages 82-88.

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