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Efficiency measurement of Australian dairy farms: national and regional performance

Fraser, Iain and Graham, Mary 2005, Efficiency measurement of Australian dairy farms: national and regional performance, Australasian agribusiness review, vol. 13, pp. 1-18.

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Title Efficiency measurement of Australian dairy farms: national and regional performance
Author(s) Fraser, Iain
Graham, Mary
Journal name Australasian agribusiness review
Volume number 13
Start page 1
End page 18
Publisher The University of Melbourne
Place of publication Melbourne, Vic.
Publication date 2005-03-01
ISSN 1442-6951
Keyword(s) dairy farms
DEA
regions
bootstrapping
Summary In this paper we use Data Envelopment Analysis (DEA) to estimate technical efficiency for a sample of 1742 Australian dairy farms. Bearing in mind data limitations we find that average technical efficiency is 59 per cent, but there are significant regional differences. These results reflect differences in State level milk marketing arrangements in place before dairy deregulation in July 2000 providing an ex post explanation for the changing composition of dairy farms in Australia. We also examine two important technical aspects of DEA implementation. First, how changes in model input specification alter the relative performance of farms. Second, we employ a simple bootstrap procedure to show how changes in sample size affects estimates of technical efficiency. These results have simple but important implications for the use of DEA as an industry-benchmarking tool.
Notes Reproduced with the specific permission of the copyright owner.
Language eng
Field of Research 140201 Agricultural Economics
HERDC Research category C1 Refereed article in a scholarly journal
Copyright notice ©2005, University of Melbourne
Persistent URL http://hdl.handle.net/10536/DRO/DU:30008779

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