Scale efficiency in the New Zealand dairy industry: a non-parametric approach

The aim in this article is to measure the scale efficiency of the New Zealand dairy industry and to examine the relationship between farm size and technical 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.


Issue Date:
1999-12
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/117215
Published in:
Australian Journal of Agricultural and Resource Economics, Volume 43, Issue 4
Page range:
523-541
Total Pages:
19




 Record created 2017-04-01, last modified 2017-11-25

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