Identifying Technical Efficiency of Dairy Cattle Management in Rural Areas Through a Non-Parametric Method: a Case Study for the East Mediterranean in Turkey

Abstract

There are many aspects regarding the success of dairy cattle management and productivity. In this study, amount and kinds of feed, costs of veterinary consultancy, herd size, labor and capital were utilized to estimate technical efficiency of dairy cattle management in small scale farms in the east Mediterranean region of Turkey. A non-parametric efficiency analysis was used for the data obtained through face-to-face interviews in 100 small scale farms. We used tobit regression analysis to determine the effectiveness of possible factors affecting production performances of the farms. The results suggested that the average technical efficiency is unsatisfactory since Constant Returns to Scale (CRS) and Variable Returns to Scale (VRS) values are relatively <1 (0.59 and 0.83, respectively). Only 13 and 46% of the farms were found to be efficient in terms of CRS and VRS, respectively. Data Envelopment Analysis (DEA) showed that the farms had excess input usage ranging from 10-22%. To increase efficiency scores in subsidiary profit farms in semi-arid east Mediterranean conditions, farmers should adopt new methodologies, which decrease the costs and excess input usage in such semi-pasture management systems. © Medwell Journals, 2009.