@article{Ohlan:155486,
      recid = {155486},
      author = {Ohlan, Ramphul},
      title = {Efficiency and Total Factor Productivity Growth in Indian  Dairy Sector},
      journal = {Quarterly Journal of International Agriculture},
      address = {2013-02},
      number = {892-2016-65175},
      series = {Quarterly Journal of International Agriculture 52 (2013)},
      pages = {27},
      year = {2013},
      abstract = {This paper assesses the total factor productivity (TFP)  growth and efficiency levels in the Indian dairy processing  industry using the Tornqvist index and data envelopment  analysis (DEA) models over the period 1980-2008. We utilize  a different empirical approach and extend the data sets. To  examine the nature of scale inefficiency, nonincreasing  returns to scale DEA frontier is used. Our results suggest  that total factor productivity in the Indian dairy  processing industry has grown significantly. An average  technical efficiency level of 72% which implies  approximately a 38% inefficiency level is observed from the  study. The decomposition of TFP growth
indicates that  growth is driven more by technical efficiency changes than  by scale
efficiency. Highest input slacks are observed for  working capital. We note that a
devaluation in terms of  real effective exchange rate, profitability, export and  import penetration and research stock play a significant  role in explaining the productivity growth in the Indian  dairy industry. The non-increasing returns to scale DEA  frontier analysis suggests that on an average scale  inefficiency is due to increasing returns to scale.  Finally, it is noticed that in India, a high volume of milk  does not reach to milk processing plants. It is suggested  that for efficient utilization of existing processing  capacity in dairy plants, a systematic investment is needed  in logistics of raw milk collection and infrastructure  development. The European model may be used as a benchmark  in strengthening milk farmers for increasing farm size and  building own processing capacity.},
      url = {http://ageconsearch.umn.edu/record/155486},
      doi = {https://doi.org/10.22004/ag.econ.155486},
}