10.4225/03/5938a42c9cad8
Jaforullah, Mohammad
Mohammad
Jaforullah
Whiteman, John L.
John L.
Whiteman
Scale efficiency in the New Zealand dairy industry: a non-parametric approach
Monash University
2017
Technical efficiency
1998
monash:6817
Benchmarking partnerships
1959.1/35469
Optimal
Data envelopment analysis (DEA)
Supra-optimal and sub-obtimal scale
2017-06-08 01:11:07
Journal contribution
https://bridges.monash.edu/articles/journal_contribution/Scale_efficiency_in_the_New_Zealand_dairy_industry_a_non-parametric_approach/5090113
The objective of this paper is to measure the scale efficiency of the New Zealand dairy industry and to examine the relationship between farm size and 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.