Technical efficiency and supply chain practices in dairying: The case of India
S. Mor, S. Sharmahttps://doi.org/10.17221/11/2011-AGRICECONCitation:Mor S., Sharma S. (2012): Technical efficiency and supply chain practices in dairying: The case of India. Agric. Econ. – Czech, 58: 85-91.
The presented paper investigates the technical efficiency of small dairy farmers in India using the stochastic production frontier function approach. The study reveals that building the supply chain can increase the efficiency of dairy farmers, as the milk producers who are part of a cooperative supply chain experienced a higher technical efficiency as compared to those who do not follow the modern supply chain practices. The milk producers in the supply chain are found better crisis managers as their inefficiency is the least attributed to their own decisions. The possession of the crossbred livestock, schooling of the manager and the institutional finance have been found affecting the efficiency of the dairy farmers positively and significantly. The study recommends the expansion in the supply chain network of the cooperative milk societies for enhancing the efficiency and profitability of the dairy sector along with the provision of more crossbred livestock and an easy availability of finance.Keywords:
technical efficiency, cooperative milk supply chain, stochastic frontier