This study aims to examine input-output relationship and efficiency of commercial dairy herds in Bikaner city of Rajasthan during the year 1996–97. Primary data were collected by survey method from 100 respondents. The technical efficiency was estimated through linear programming approach. The results indicated that total investment per herd varied from Rs. 2.31 lakhs on small herds to 7.65 lakhs on large herds. Among the various inputs, concentrate and labour were more important and showed positive and significant influence on milk production. The technical efficiency of the herds at the average input level ranged between 91 and 93 per cent. Decomposition analysis revealed that the existing level of milk yield could be increased by 7 to 10 per cent by adoption of better management practices at similar input level. However, increasing input use to the level as on frontier herds, the productivity could be further enhanced by 5 and 2 per cent in medium and large herds, respectively.
