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Title: An Analysis of Technical Efficiency in the Presence of Developments Toward Commercialization: Evidence from Tanzania's Milk Producers
Contributor(s): Bahta, Sirak (author); Omore, Amos (author); Baker, Derek  (author)orcid ; Okike, Iheanacho (author); Gebremedhin, Berhanu (author); Wanyoike, Francis (author)
Publication Date: 2021-06
Early Online Version: 2020-06-05
Open Access: Yes
DOI: 10.1057/s41287-020-00279-8
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Abstract: The level and determinants of technical efficiency in milk-producing households are examined in connection with households’ level of commercialization. A sample of 469 milk producers are modeled using Stochastic Frontier Analysis (SFA). Average Technical Efficiency (TE) is estimated to be 80%, with variation among regions and generally reflecting levels of commercialization. Results show that assuming milk producers are rational, TE is increased by increasing the number of cattle, cows, and crossbreeds, and by additinal veterinary and feed inputs. These results support much existing research, and our contribution is the extension of analysis to actions and characteristics of the value chain due to commercial behaviors. We identify both direct and indirect potential effects of commercialization and identify mechanisms for their operation in development programs for commercial value chains. We find that credit access, training, group membership, market participation, and female household all improve TE while non-cattle income would reduce TE. We present sub-groups of households to better contrast levels of productivity and compare a limited number of the sub-groups' characteristics and actions. We provide commentary and explanation regarding commercialization and its direct and indirect connections to productivity. Recommendations include partnerships and facilitating actions that support commercialization, in association with improving efficiency in Tanzanian dairy.
Publication Type: Journal Article
Source of Publication: The European Journal of Development Research, v.33, p. 502-525
Publisher: Palgrave Macmillan Ltd
Place of Publication: United Kingdom
ISSN: 1743-9728
Fields of Research (FoR) 2008: 140201 Agricultural Economics
Fields of Research (FoR) 2020: 300208 Farm management, rural management and agribusiness
300302 Animal management
380101 Agricultural economics
Socio-Economic Objective (SEO) 2008: 830302 Dairy Cattle
830307 Minor Livestock (e.g. Alpacas, Ostriches, Crocodiles, Farmed Rabbits)
910205 Industry Policy
Socio-Economic Objective (SEO) 2020: 280101 Expanding knowledge in the agricultural, food and veterinary sciences
280108 Expanding knowledge in economics
100402 Dairy cattle
Peer Reviewed: Yes
HERDC Category Description: C1 Refereed Article in a Scholarly Journal
Appears in Collections:Journal Article
UNE Business School

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