Technical Efficiency Assessment of Dairy Farm in the South-west Region of Bangladesh

Abstract

The paper concentrates on the measurement of the total factor productivity of dairy farms in the south-west region of Bangladesh The study used stochastic frontier approach for analyzing the technical efficiency of the dairy farms Here seventy dairy farms are considered as a sample The data reveals that the number of labor and the quantity of food are statistically significant at a 1 percent level of significance The data also manifests that numerous farm-specific characteristics i e farm size farmer s age and amount of credit are statistically significant at 1 percent 10 percent and 10 percent respectively The range of technical efficiency for the farms varies from 26 percent minimum to 95 percent maximum where the mean value is 68 percent for the dairy farms of the south-west region This implies that an average output of milk production falls 32 percent short of maximum possible level Hence there is scope of improvement in this sector Therefore to improve the farm productivity government should provide proper training and medical treatment facilities for the farms so that the animals become healthy If it is possible to do so then the farm level production frontier will shift upward