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    Application of data envelopment analysis to measure technical efficiency on a sample of Irish dairy farms

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    Author
    Kelly, Eoin
    Shalloo, Laurence
    Geary, Una
    Kinsella, Anne
    Wallace, Michael
    Keyword
    Dairy
    Data envelopment analysis
    Ireland
    Technical efficiency
    Date
    2012-12
    
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    URI
    http://hdl.handle.net/11019/323
    Citation
    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.
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    Livestock Systems
    IJAFR, volume 51, 2012
    IJAFR, volume 51, 2012
    IJAFR, volume 51, 2012
    Agricultural Economics

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