Scale efficiency in the New Zealand dairy industry: a non-parametric approach

Mohammad Jaforullah; John Whiteman

doi:10.1111/1467-8489.00093

Scale efficiency in the New Zealand dairy industry: a non-parametric approach

Mohammad Jaforullah, John Whiteman

Research output: Contribution to journal › Article › Research › peer-review

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Abstract

The aim in this article is to measure the scale efficiency of the New Zealand dairy industry and to examine the relationship between farm size and technical efficiency. Data envelopment analysis (DEA) is applied to a sample of 264 dairy farms. The results suggest that 19 per cent of these farms are operating at optimal scale, 28 per cent at above optimal scale, and 53 per cent at below optimal scale. On average, the optimal size for New Zealand dairy farms is estimated at 83 hectares with a herd of 260 animals. Average technical efficiency is estimated at 89 per cent.

Original language	English
Pages (from-to)	523-542
Number of pages	20
Journal	Australian Journal of Agricultural and Resource Economics
Volume	43
Issue number	4
DOIs	https://doi.org/10.1111/1467-8489.00093
Publication status	Published - Dec 1999

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10.1111/1467-8489.00093

Cite this

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title = "Scale efficiency in the New Zealand dairy industry: a non-parametric approach",

abstract = "The aim in this article is to measure the scale efficiency of the New Zealand dairy industry and to examine the relationship between farm size and technical efficiency. Data envelopment analysis (DEA) is applied to a sample of 264 dairy farms. The results suggest that 19 per cent of these farms are operating at optimal scale, 28 per cent at above optimal scale, and 53 per cent at below optimal scale. On average, the optimal size for New Zealand dairy farms is estimated at 83 hectares with a herd of 260 animals. Average technical efficiency is estimated at 89 per cent.",

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AB - The aim in this article is to measure the scale efficiency of the New Zealand dairy industry and to examine the relationship between farm size and technical efficiency. Data envelopment analysis (DEA) is applied to a sample of 264 dairy farms. The results suggest that 19 per cent of these farms are operating at optimal scale, 28 per cent at above optimal scale, and 53 per cent at below optimal scale. On average, the optimal size for New Zealand dairy farms is estimated at 83 hectares with a herd of 260 animals. Average technical efficiency is estimated at 89 per cent.

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DO - 10.1111/1467-8489.00093

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