Efficiency Measurement of Dairy Farmers under Integrated Cropping Sytems in Pakistan

by Sami Ullah
Doctoral thesis
Date of Examination:2016-07-06
Date of issue:2016-08-01
Advisor:Prof. Dr. Bernhard Brümmer
Referee:Prof. Dr. Matin Qaim
Referee:Prof. Dr. Stephan von Cramon-Taubadel
Persistent Address: http://dx.doi.org/10.53846/goediss-5784

 

 

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Abstract

English

Pakistan’s dairy sector has experienced a remarkable expansion over the past 25 years. This expansion is marked by increased milk production, an improvement in herd breed structure, enhanced extension services, and the expansion of milk collection channels. In comparison to the early 1980s when selling milk was a social taboo, more than 12 billion liters of milk are now marketed through different channels. This has led the dairy sector from subsistence farm-ing to a commercialised activity. The contribution of the dairy sector to Pakistan’s economy is enormous in terms of share in national GDP and share in the total labour force. However, de-spite all of the improvements, Pakistan is unable to meet its milk requirements and is a net importer of milk and milk based products. Agriculture in Pakistan is a combined activity of dairying and cropping, so we collected information from dairying-cropping mix farmers. In this study, we start by analysing the productivity and efficiency of dairy farmers with a focus on the determinants of technical efficiency by employing the stochastic frontier function.Secondly, we estimate the efficiency of farmers within a multi-output framework and consider the factors affecting the efficiency of farmers by using the translog output distance function. Finally, we investigate the determinants of farmers’ participation in different milk supply channels by applying the binary logit model. We derive that extension services, rented land and credit are important factors in reducing the technical inefficiencies of farmers. Furthermore, distance to milk collection unit and quantity of milk sold are important variables for participation in different milk marketing channels.
Keywords: stochastic frontier analysis, output distance function, technical efficiency; stochastic frontier analysis, output distance function, technical efficiency
 
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