Assessing technical efficiency of Québec dairy farms

Msafiri D. Mbaga, Robert Romain, Bruno Larue, Luc Lebel

Research output: Contribution to journalArticle

22 Citations (Scopus)

Abstract

The purpose of this paper is twofold. Our first objective is to measure the level of technical efficiency of Québec dairy farms. Our second objective is to gauge the robustness of our results with respect to the selection of a functional form and of a distribution for the inefficiency index. We estimate efficiency frontiers for Cobb-Douglas (C-D), translogarithmic (TL) and generalized Leontief (GL) production functions with half-normal, truncated normal and exponential distributions. Our results, based, on likelihood dominance criterion (LDC) indicate that the GL production technology dominates the other two functional forms, and this ranking is robust to changes in the distribution of the inefficiency index. Efficiency scores and ranks are highly correlated for all the functional forms and distributions. The differences in the mean levels of efficiency are statistically significant across functional forms and distributions, although the magnitude of the difference is minuscule. The very high mean level of efficiency and the low standard deviation confirms that Québec dairy farms are very homogenous in terms of getting the most from their inputs. This is not surprising, given that the sector has been very stable policy- wise and that it has been difficult for dairy farmers to expand. To augment the comparisons, results obtained from data envelopment analysis (DEA), are added to the analysis. In this case, the correlation coefficients between DEA and parametric specifications are found to be very low.

Original languageEnglish
Pages (from-to)121-137
Number of pages17
JournalCanadian Journal of Agricultural Economics
Volume51
Issue number1
DOIs
Publication statusPublished - Mar 2003

Fingerprint

technical efficiency
dairy farming
data analysis
production functions
gauges
data envelopment analysis
dairies
production technology
farmers
ranking
gauge
distribution
dairy farm
Dairy farms
Technical efficiency
Functional form
Data envelopment analysis
Inefficiency

ASJC Scopus subject areas

  • Global and Planetary Change
  • Ecology
  • Animal Science and Zoology
  • Agronomy and Crop Science
  • Economics and Econometrics

Cite this

Assessing technical efficiency of Québec dairy farms. / Mbaga, Msafiri D.; Romain, Robert; Larue, Bruno; Lebel, Luc.

In: Canadian Journal of Agricultural Economics, Vol. 51, No. 1, 03.2003, p. 121-137.

Research output: Contribution to journalArticle

Mbaga, Msafiri D. ; Romain, Robert ; Larue, Bruno ; Lebel, Luc. / Assessing technical efficiency of Québec dairy farms. In: Canadian Journal of Agricultural Economics. 2003 ; Vol. 51, No. 1. pp. 121-137.
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