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Application of data envelopment analysis to measure technical efficiency on a sample of Irish dairy farms
Kelly, Eoin Shalloo, Laurence Geary, Una Kinsella, Anne Wallace, Michael
Kelly, Eoin
Shalloo, Laurence
Geary, Una
Kinsella, Anne
Wallace, Michael
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2012-12
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ijafr_20_11.pdf
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Application of data envelopment analysis to measure technical efficiency on a sample of Irish dairy farms. E. Kelly, L. Shalloo, U. Geary, A. Kinsella and M. Wallace. Irish Journal of Agricultural and Food Research, 51: 63–77, 2012
Abstract
The aim of this study was to determine the levels of technical efficiency on a sample of
Irish dairy farms utilizing Data Envelopment Analysis (DEA) and to identify key management
and production factors that differ between producers indentified as efficient
and inefficient. DEA was used in this study to generate technical efficiency scores under
assumptions of both constant returns to scale (CRS) and variable returns to scale (VRS). The average technical efficiency score was 0.785 under CRS and 0.833 under VRS. Key production characteristics of efficient and inefficient producers were compared using an analysis of variance. More technically efficient producers used less input per unit of output, had higher production per cow and per hectare and had a longer grazing season, a higher milk quality standard, were more likely to have participated in milk recording and had greater land quality compared to the inefficient producers.