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

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 smal...

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Bibliographic Details
Published inPakistan development review Vol. 50; no. 1; pp. 63 - 81
Main Authors Burki, Abid A., Khan, Mushtaq A.
Format Journal Article
LanguageEnglish
Published Pakistan Institute of Development Economics 01.04.2011
Subjects
Agricultural production
Dairy farming
Dairy industry
Economic efficiency
Economic performance
Farming
Farms
Food supply
Industrial agriculture
Industrial efficiency
Logistics
Milk
Milk market
Milk production
Pakistan
Production estimates
Production functions
Straw
Supply and demand
Supply chain management
Pakistan
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Summary: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.
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
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ISSN:0030-9729
DOI:10.30541/v50i1pp.63-81