This study focuses on finding the way to increase management efficiency in order to establish the financial stability. The dairy farms are planned and practiced by dairy farmers, the management efficiency may depend much upon the management capacity o...
This study focuses on finding the way to increase management efficiency in order to establish the financial stability. The dairy farms are planned and practiced by dairy farmers, the management efficiency may depend much upon the management capacity of dairy farmers. In order to measure efficiency of the dairy farms and management capacity of farmers, this study analyzes the survey and the business log of 19 farms. The major findings are as follows. First, DEA model estimates operational efficiency: 0.917 overall technical efficiency, 0.979 pure technical efficiency and 0.937 scale efficiency. Second, by factor analysis, five possible factors which may regulate operational efficiency are selected: the capacity in execution, sanitation, planning, collecting information, and responsiveness. Third, Tobit analysis demonstrates that the capacities in execution, sanitation, planning, and collecting information have a positive effect on efficiency, but the capacity in responsiveness has a negative effect. Furthermore, large farming size, couple co-management and the existence of inheritors have the effects on efficiency.