Scale Efficiency in the New Zealand Dairy Industry: A Non-Parametric Approach

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.


Issue Date:
Jun 01 1998
Publication Type:
Working or Discussion Paper
Language:
English
Total Pages:
16
JEL Codes:
D24
Series Statement:
General Paper No. G-129




 Record created 2018-01-05, last modified 2018-01-22

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