Agricultural Economics Research Review
  • Year: 2021
  • Volume: 34
  • Issue: 2

Profit efficiency among peri-urban dairy farms in Odisha: an application of the stochastic frontier function

  • Author:
  • Kamlesh Kumar Acharya1*, Ravinder Malhotra1, R. Sendhil2, Binita Kumari3
  • Total Page Count: 9
  • Page Number: 207 to 215

1Department of Dairy Economics, Statistics and Management, ICAR-National Dairy Research Institute (Deemed University), Karnal, Haryana132001

2ICAR-Indian Institute of Wheat and Barley Research, Karnal, Haryana132001

3Department of Agricultural Economics, Rashtriya Kisan (PG) College, Shamli, Uttar Pradesh247776

*Corresponding author: kamlesh.acharya30@gmail.com

Online published on 8 April, 2022.

Abstract

This study examines the profit efficiency of peri-urban dairy farms in Odisha. Inefficiencies are found, and the profit efficiency ranges from 2% to 92%; the mean is 54%. The mean profit efficiency is 76% for large farms, the highest, 64% for medium-size farms, and 60% for small farms. Concentrate price and labour wage rates affect profits significantly. Profit inefficiency is impacted positively and significantly by herd size and negatively and significantly by herd composition; decreasing the herd size and increasing the number of crossbred cows would enhance profit efficiency. Improving education and dairy farm experience would enhance the profit efficiency.

Keywords

Inefficiency model, Peri-urban, Profit efficiency, Stochastic profit frontier