Abstract

The paper concentrates on the measurement of the total factor productivity of dairy farms in the south-west region of Bangladesh. The study used stochastic frontier approach for analyzing the technical efficiency of the dairy farms. Here, seventy dairy farms are considered as a sample. The data reveals that the number of labor and the quantity of food are statistically significant at a 1 percent level of significance.The data also manifests that numerous farm-specific characteristics, i.e. farm size, farmer’s age, and amount of credit are statistically significant at 1 percent, 10 percent, and 10 percent respectively. The range of technical efficiency for the farms varies from 26 percent (minimum) to 95 percent (maximum) where the mean value is 68 percent for the dairy farms of the south-west region. This implies that an average output of milk production falls 32 percent short of maximum possible level. Hence, there is scope of improvement in this sector. Therefore, to improve the farm productivity government should provide proper training, and medical treatment facilities for the farms so that the animals become healthy. If it is possible to do so then the farm level production frontier will shift upward.

Highlights

  • Bangladesh is an agricultural country, and its economy is mainly based on agriculture (Saadullah, 2001)

  • This study considers the South-west region of

  • Bangladesh is an agro-based country, and most of the rural people are engaged in different agricultural activities. They are involved in this sector as their hereditary business

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Summary

Introduction

Bangladesh is an agricultural country, and its economy is mainly based on agriculture (Saadullah, 2001). Khai and Yabe (2011) detected that an the Cobb-Douglas stochastic frontier model for increase in area increases TE Smallholder milk producers played pivotal role in et al (2010) detected that Off-farm income has a the dairy market of Bangladesh. About 39.43 positive association between farm size and productivity percent of the total population of Khulna district and at 1 percent and 5 percent significant level These 39.84 percent of the total population of Jessore district results are the same for other authors’ findings like are involved with agricultural activities. This coefficient of experience was positive, study is those farmers who have their own dairy farm in and it was statistically significant at the 1 percent level in the study area.

Literature
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Conclusion
Findings
A Stochastic Frontier Analysis on Farm Level
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