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https://hdl.handle.net/1959.11/29555
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) ; 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 | Handle Link: | https://hdl.handle.net/1959.11/29555 | 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 0957-8811 |
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 |
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Appears in Collections: | Journal Article UNE Business School |
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