Work

Scale Efficiency in the New Zealand Dairy Industry: a Non‐parametric Approach

Year: 1999
Type: article
Abstract: The aim in this article is to measure the scale efficiency of the New Zealand dairy industry and to examine the relationship between farm size and technical 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.
Language: English
Open Access status: bronze
OpenAlex ID: W2021609302
FWCI: 4.722
Cites: 14
Cited by: 118
Related to: 10