Profit efficiency among Kenyan smallholders milk producers: A case study of Meru-South district, Kenya

Production inefficiency is usually analyzed by economical efficiency, which is composed of two components-technical and allocative efficiencies. This study provided a direct measure of production efficiency of the smallholder milk producers in Kenya using a stochastic profit frontier and inefficienc...

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Autores principales: Karanja Ng'ang'a, Stanley, Kungu, J., Ridder, N.A. de, Herrero, Mario
Formato: Journal Article
Lenguaje:Inglés
Publicado: 2010
Materias:
Acceso en línea:https://hdl.handle.net/10568/2314
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author Karanja Ng'ang'a, Stanley
Kungu, J.
Ridder, N.A. de
Herrero, Mario
author_browse Herrero, Mario
Karanja Ng'ang'a, Stanley
Kungu, J.
Ridder, N.A. de
author_facet Karanja Ng'ang'a, Stanley
Kungu, J.
Ridder, N.A. de
Herrero, Mario
author_sort Karanja Ng'ang'a, Stanley
collection Repository of Agricultural Research Outputs (CGSpace)
description Production inefficiency is usually analyzed by economical efficiency, which is composed of two components-technical and allocative efficiencies. This study provided a direct measure of production efficiency of the smallholder milk producers in Kenya using a stochastic profit frontier and inefficiency model. The primary data were collected, using IMPACT (intergrated modeling platform for mixed animal crops systems) structured questionnaire and includes four conventional inputs and socio-economic factors affecting production. The result showed that profit efficiencies of the sampled farmers varied widely between 26% and 73% with a mean of 60% suggesting that an estimated 40% of the profit is lost due to a combination of both technical and allocative inefficiencies in the smallholder dairy milk production. This study further observed that level of education, experience, and the size of the farm influenced profit efficiency positively while profit efficiency decreased with age. This implies that profit inefficiency among smallholder dairy milk producers can be reduced significantly with improvement in the level of education of sampled farmers.
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spelling CGSpace23142025-11-12T04:29:05Z Profit efficiency among Kenyan smallholders milk producers: A case study of Meru-South district, Kenya Karanja Ng'ang'a, Stanley Kungu, J. Ridder, N.A. de Herrero, Mario dairies Production inefficiency is usually analyzed by economical efficiency, which is composed of two components-technical and allocative efficiencies. This study provided a direct measure of production efficiency of the smallholder milk producers in Kenya using a stochastic profit frontier and inefficiency model. The primary data were collected, using IMPACT (intergrated modeling platform for mixed animal crops systems) structured questionnaire and includes four conventional inputs and socio-economic factors affecting production. The result showed that profit efficiencies of the sampled farmers varied widely between 26% and 73% with a mean of 60% suggesting that an estimated 40% of the profit is lost due to a combination of both technical and allocative inefficiencies in the smallholder dairy milk production. This study further observed that level of education, experience, and the size of the farm influenced profit efficiency positively while profit efficiency decreased with age. This implies that profit inefficiency among smallholder dairy milk producers can be reduced significantly with improvement in the level of education of sampled farmers. 2010-03-04 2010-08-20T06:03:00Z 2010-08-20T06:03:00Z Journal Article https://hdl.handle.net/10568/2314 en Open Access application/pdf Nganga, S. K.; Kungu, J.; Ridder, N. de; Herrero, M. 2010. Profit efficiency among Kenyan smallholders milk producers: a case study of Meru-South district, Kenya. African Journal of Agricultural Research 5(5):332-337.
spellingShingle dairies
Karanja Ng'ang'a, Stanley
Kungu, J.
Ridder, N.A. de
Herrero, Mario
Profit efficiency among Kenyan smallholders milk producers: A case study of Meru-South district, Kenya
title Profit efficiency among Kenyan smallholders milk producers: A case study of Meru-South district, Kenya
title_full Profit efficiency among Kenyan smallholders milk producers: A case study of Meru-South district, Kenya
title_fullStr Profit efficiency among Kenyan smallholders milk producers: A case study of Meru-South district, Kenya
title_full_unstemmed Profit efficiency among Kenyan smallholders milk producers: A case study of Meru-South district, Kenya
title_short Profit efficiency among Kenyan smallholders milk producers: A case study of Meru-South district, Kenya
title_sort profit efficiency among kenyan smallholders milk producers a case study of meru south district kenya
topic dairies
url https://hdl.handle.net/10568/2314
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