TECHNICAL EFFICIENCY ESTIMATION OF DAIRY FARMING IN KOSOVO

Arben Musliu,Nathan Kemper,Michael Thomsen,Jennie S Popp,Blend Frangu

doi:10.30682/nm1903f

Arben Musliu, Nathan Kemper + Show 3 more

Open Access

https://doi.org/10.30682/nm1903f

Copy DOI

Abstract

The aim of this research paper is to assess the technical efficiency (TE) of milk production in Kosovo using the stochastic frontier analysis. Research data are collected through surveys from 100 commercially oriented dairy farmers. The study finds that TE of milk production by most of these farms is high. Using the Cobb-Douglas production function, individual measures of TE range from 0.87 to 0.98 (on a scale of 0 to 1.00) with the average being 0.95. There were 57 farms with TE greater than 0.95 and 35 farms with TE less than 0.95. In the study’s sample, female dairy farmers have roughly the same mean TE of 0.95 as male dairy farmers. The variation in milk production among the sampled farms was modeled in terms of concentrate and forage feed costs and pre-production costs. The study suggests that concentrate feed and pre-production costs can significantly influence TE of milk production among Kosovar dairy farms.

Highlights

Increasing global competition is of concern for many small food producers in developing countries
The common agricultural policy (CAP) in Europe can support the competitiveness of the agriculture sector for the European Union (EU) countries (Signorello and Pappaalardo, 2003; D’amico et al, 2013)
The estimates suggest that concentrate feed and pre-production costs are factors influencing total milk production in Kosovo

Summary

Introduction

Increasing global competition is of concern for many small food producers in developing countries. The main challenges facing the industry range from poor milk quality, low productivity and efficiency (Bajrami et al, 2017) to gender imbalance in dairy farming. Investigating feed costs can be vital when considering efficiency in milk production Overcoming these challenges may help the government achieve its goals and generate sustainable profits for producers. The five years present a growth opportunity for the Kosovo dairy industry to substitute imported dairy products and to increase its presence in regional markets. Both female and male dairy farmers have several opportunities. Unlike other studies that have examined technical efficiency while combining subsistence (non-commercial) and commercially oriented farmers, we focus only in the group of commercially oriented farmers

Materials and Methods

Descriptive statistics

Methods

Findings

Conclusion