Abstract
The purpose of the study was to analyse the economic efficiency of smallholder dairy farmers in Swaziland. Specifically, the study sought to describe the socio-economic characteristics of dairy farmers in Swaziland. The smallholder farmers are classified into: smallholder farmers, medium-scale farmers, and large-scale dairy farmers. The specific objectives of the study were to: estimate the economic efficiency of smallholder dairy farmers in Swaziland; identify factors affecting the economic efficiency of smallholder dairy farmers; and determine the profitability of the smallholder dairy enterprise. This was a descriptive and quantitative survey and the target population was all smallholder dairy farmers registered with the Swaziland Dairy Board (N = 444). A purposive and random sampling techniques was used to select the respondents (n = 111). Three methods of data analysis were used, namely; descriptive statistics, econometric analysis (Stochastic Profit Frontier Function) and gross margin analysis. The mean level of Economic Efficiency (EE) for the famers was 79.8%. The farm’s location, pasture size, soil fertility, water availability, the farmer’s years of experience in dairy farming, membership to dairy farmers’ association and training on dairy farming are factors that influenced the level of EE for smallholder dairy farmers in Swaziland. The smallholder dairy farmers were economically efficient. The institutional factors, socioeconomic and farm characteristics do affect the level of EE among smallholder dairy farmers. The dairy farming enterprise is a profitable enterprise.
Highlights
Swaziland has a dual land tenure system consisting of Swazi Nation Land (SNL) and Title Deed Land (TDL)
2014, Vol 2, No 2 fertility, water availability, the farmer’s years of experience in dairy farming, membership to dairy farmers’ association and training on dairy farming are factors that influenced the level of EE for smallholder dairy farmers in Swaziland
In the year 2010, the demand for milk and milk products rose to 53.53 million litres per year, whereas the raw milk production from the national dairy herd was 7.71 million litres per year (SDB, 2011).Currently, the Swaziland Dairy Board (SDB) has signed a memorandum of understanding with Swaziland Government to allow dairy farmers to source dairy cattle locally through the rehabilitation of the Gege ranch into a breeding station
Summary
Swaziland has a dual land tenure system consisting of Swazi Nation Land (SNL) and Title Deed Land (TDL). In the year 2010, the demand for milk and milk products rose to 53.53 million litres per year, whereas the raw milk production from the national dairy herd was 7.71 million litres per year (SDB, 2011).Currently, the SDB has signed a memorandum of understanding with Swaziland Government to allow dairy farmers to source dairy cattle locally through the rehabilitation of the Gege ranch into a breeding station. Even though such a provision has been made, there are still numerous challenges in milk production in the country. Even though the market for milk is available in Swaziland, but the milk production rate is low, and that is attributed to the high production costs (Makhubu, 2012)
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