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Technical Efficiency of Dairy Farms: A Stochastic Frontier Application on Dairy Farms in Jordan

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  • Ali Al-Sharafat

Abstract

The present study was conducted to determine the level of technical efficiency of dairy producing farms in Jordan by applying the stochastic production frontier (SPF) methodology. Technical efficiency estimates were generated for 100 dairy farms in Jordan. The results of the study indicated that technical efficiency of milk production by most of dairy farms in Jordan is low. The mean technical efficiency was estimated to be only 39.5% for the sampled dairy farms. This means that an average farm in the sample could in principle increase its level of milk production by 60.5% using the current input quantities. The results also implies that the dairy farms in Jordan are producing milk to only about 40% of the potential frontier production levels of this industry, implying that the production is about 60% below the frontier due to technical inefficiency. To enhance farm efficiency there is a need to improve farmers’ access to extension services. The need to involve farmers more in the extension process itself should be encouraged.

Suggested Citation

  • Ali Al-Sharafat, 2013. "Technical Efficiency of Dairy Farms: A Stochastic Frontier Application on Dairy Farms in Jordan," Journal of Agricultural Science, Canadian Center of Science and Education, vol. 5(3), pages 1-45, February.
    • Handle: RePEc:ibn:jasjnl:v:5:y:2013:i:3:p:45
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    References listed on IDEAS

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    3. Boris E. Bravo-Ureta & Laszlo Rieger, 1991. "Dairy Farm Efficiency Measurement Using Stochastic Frontiers and Neoclassical Duality," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(2), pages 421-428.
    4. Dalton, Timothy J., 2004. "Indivisible And Spatial Components Of Dairy Firm Efficiency," 2004 Annual meeting, August 1-4, Denver, CO 20320, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Binam, Joachim Nyemeck & Tonye, Jean & wandji, Njankoua & Nyambi, Gwendoline & Akoa, Mireille, 2004. "Factors affecting the technical efficiency among smallholder farmers in the slash and burn agriculture zone of Cameroon," Food Policy, Elsevier, vol. 29(5), pages 531-545, October.
    6. Msafiri D. Mbaga & Robert Romain & Bruno Larue & Luc Lebel, 2003. "Assessing Technical Efficiency of Québec Dairy Farms," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 51(1), pages 121-137, March.
    7. Rios, Ana R. & Shively, Gerald E., 2005. "Farm size and nonparametric efficiency measurements for coffee farms in Vietnam," 2005 Annual meeting, July 24-27, Providence, RI 19159, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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    Cited by:

    1. Ali Al-Sharafat, 2016. "Analyzing Farm Accounting Skills Related to Financial Performance of Dairy Industry: An Evidence from Jordan," Journal of Agricultural Science, Canadian Center of Science and Education, vol. 8(12), pages 174-174, November.

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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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