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Title: Productivity Change in the Australian Sheep Industry Revisited
Contributor(s): Villano, R (author)orcid ; Fleming, E (author); Farrell, T (author); Fleming, PA (author)
Publication Date: 2006
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Abstract: Recent estimates of total factor productivity change for wool producersin the Australian sheep industry indicate that they are struggling toimprove their performance. This evidence is at odds with the views ofmany technical observers of industry performance, prompting us to reestimatetotal factor productivity change for farmers in a benchmarkinggroup in south-west Victoria who had been the subject of such anegative finding. An important transformation in sheep production inAustralia in recent decades has been a change in enterprise mix,notably a greater presence of prime lamb production. This changecomplicates the process of computing efficiency and productivitychange. We demonstrate that a multi-input multi-output approach,based on the use of a stochastic output distance function, is essentialto obtain a realistic estimation of productivity change on farmsoperating both enterprises. Following this approach, we find substantialtechnical progress and productivity gains on specialist wool propertiesover the period, 1994/1995 to 2003/2004, and modest technicalprogress but static productivity on farms operating both wool and primelamb enterprises over the period, 1996/1997 to 2003/2004, after aninitial sharp decline in 1995/1996.
Publication Type: Conference Publication
Conference Name: 26th Conference of the International Association of Agricultural Economists (IAAE), Gold Coast, Australia, 12-18 August, 2006
Conference Details: 26th Conference of the International Association of Agricultural Economists (IAAE), Gold Coast, Australia, 12-18 August, 2006
Source of Publication: Contributions of Agricultural Economics to Critical Policy Issues - Proceedings of IAAE 26: 26th Conference of the International Association of Agricultural Economics
Publisher: IAAE: International Association of Agricultural Economics
Place of Publication: Netherlands
Field of Research (FOR): 140201 Agricultural Economics
Peer Reviewed: Yes
HERDC Category Description: E1 Refereed Scholarly Conference Publication
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