Technical efficiency of dairy farms in 2008-2017

Abstract

The aim of the study was to determine the technical efficiency of farms specialising in milk production (type 45) using the DEA method. The research covered the period 2008-2017. Data for calculations were collected using the indirect observation method based the data from the Polish FADN Cfor2008-2017 as the source of actual data. 11055 dairy farms were included in the study. Dairy farms with fewer than 15 cows were excluded from the study. The DEA method uses an approach that minimizes inputs and the CCR and BCC models. In the description of the results, the surveyed farms were divided into three groups: effective farms for which the technical efficiency coefficient was 100%, farms close to effective, in which the technical efficiency coefficient was within <90<100% and ineffective farms, in which the analysed coefficient was smaller than 90%. In the analysis of the results of the given dairy farms, the farms were divided according to their economic size, cow herd size and milk yield.

Measurement and Evaluation of the Efficiency and Total Productivity of Dairy Farms in Poland

“…The model assumed the sum of revenues from milk sales and processed products, live cattle, balances of subsidies and taxes, with inputs such as agricultural land area, number of dairy cows, yield costs, purchased feed, other direct costs of animal production, maintenance costs of machinery and equipment, energy costs, and amortization costs. In subsequent studies by Świtłyk [43], using the DEA method and the CCR and BCC models and adopting the same set of variables, proved that in the CCR model the highest technical efficiency coefficients were characteristic for large farms, while the lowest scale efficiency coefficients were found for medium-small farms. The highest technical efficiency coefficients for the CCR, BCC and scale efficiency models were recorded on farms with the highest milk yield.…”

“…On the other hand, the lower age of first calving, higher milk yield and higher number of somatic cells were positively correlated with technical efficiency. In the context of Poland, the issue of technical efficiency and productivity of dairy farms was raised in the research, among others, by Świtłyk [42,43], Marzec et al [11], Borecka et al [44] and Adamski [45]. Świtłyk [42], determining the technical efficiency of dairy farms depending on the size of a herd of cows using the DEA and SFA methods, showed that, according to the BCC model, farms with the smallest (<10 cows) and the largest (>40 cows) herds of cows had the most technical efficiency, while in the SFA model the highest technical efficiency coefficients were characteristic of farms with the largest herds of cows ( 30; 40 <40 and >40 cows).…”