A Comparison of Profitability and Economic Efficiencies Between Management-Intensive Grazing and Conventionally Managed Dairies in Michigan

Dartt, Barbara; Lloyd, James W.; Radke, Brian R.; Black, J. Roy; Kaneene, John B.

doi:10.3168/jds.s0022-0302(99)75492-5

Cited by 79 publications

(49 citation statements)

References 4 publications

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“…Oğuz et al (2004), Tijani et al (2006) and Yusuf and Malomo (2007), have established profit function models and determined the marginal impact factor of the independent variable. Profit functions have been utilized as selection criteria in dairy cattle breeding (Dartt et al, 1999, Stott and Delorenzo, 1988and Johan and Arendonk, 1991 and in broiler production systems (Dekkers et al, 1995 andPribylova et al, 1996). Many Cobb-Douglas and quadratic type production models have been used to determine marginal effects of the corn and soybean on body weight gain in broilers.…”

Section: Introductionmentioning

confidence: 99%

Factors Affecting Profitability of Layer Hens Enterprises

Altahat¹,

AL-Sharafat²,

Altarawneh³

2012

American Journal of Agricultural and Biological Sciences

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Problem statement: Layer hen enterprises suffer from low profitability or losses in many of developing countries all over the world. Jordan is not an acceptance. Approach: This study aimed at investigating the influence of ten main factors affecting the profitability of layer hen producers. The investigated factors include price of purchased pullet, feed price, cost of labor, cost of veterinary service and medicine, building and machinery depreciation, repairs and maintenance and miscellaneous costs, length of production cycle, feed conversion ratio, mortality rate, egg sale price and laying percentage. Results: The study used a multiple regression profit model to estimate the effect of the above mentioned factors on profit per kg egg produced. The direction and quantity of relationship between profit per kg egg and variables affecting profit were investigated. Data from 40 operating and randomly selected egg production enterprises in the country was collected. Data was obtained directly from the producers during April to mid August 2010. Semi structured interviews were conducted with a pre-tested questionnaire. The data obtained via interview surveys were processed to calculate profit per kg egg and other relevant information for inclusion in a profit function model. Fifteen eggs are registered to be 1 kg in the study. Cost and income items used to calculate profit in the study. The results of the study revealed that the feed price was found to be the factor which has the highest negative impact on the profitability showing the coefficient-3.01. The egg sale price was with high positive impact on profitability showing the coefficient 2.633. Conclusion/Recommendations: From the results of the study it could be concluded that higher prices of purchased or breeding pullet, higher feed price, higher cost of labor, higher cost of veterinary service and medicine, higher other costs including building and machinery depreciation, repairs and maintenance and miscellaneous costs, higher feed quantity to be converted to eggs and higher mortality rate are associated with lower profitability of laying hen enterprises, while higher length of production cycle, higher egg sale price and higher laying percentage are associated with higher profitability. Critical limits indicated for various cost components should be used as a guideline to adjust budget in commercial egg operation thereby, ensuring higher net profit per bird.

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Section: Introductionmentioning

confidence: 99%

Factors Affecting Profitability of Layer Hens Enterprises

Altahat¹,

AL-Sharafat²,

Altarawneh³

2012

American Journal of Agricultural and Biological Sciences

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“…The measurement of ET is important because it can help in both policy formulation and farm management (Russell and Young, 1983;Kalirajan, 1984;Bravo-Ureta and Rieger, 1991). Producers benefit directly from improvements in their technical performance because more efficient farms tend to generate higher incomes and thus have a better chance of surviving and staying in business (BravoUreta and Rieger, 1991;Dartt et al, 1999;Lawson et al, 2004).…”

Section: Introductionmentioning

confidence: 99%

A Study of Dairy Farm Technical Efficiency Using Meta-Regression: An International Perspective

López¹,

Bravo‐Ureta²

2009

Chilean J. Agric. Res.

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This paper develops a meta-regression analysis to explain the variation of mean technical efficiency (PETP) measurements from a total of 65 frontier studies that report technical efficiency (ET) measurements at the dairy farm level in the literature published in English and Spanish. The analysis includes the effect of methodology on ET measurements, as well as the effect of the econometric procedure on the meta-regression estimates. Eight models were estimated, and two of these were selected: a fixed effects specification with dummy variables for the most significant studies without geographical effects (EFS), and a specification where the multiple observations are averaged and geographical effects included (OP). Based on model performance, the EFS option is chosen for the analysis. The results of the EFS model suggested that non-parametric deterministic models generate higher PETP estimates than the parametric cases (stochastic and deterministic frontier models). In addition, the Cobb-Douglas and translog forms yield higher average PETP than all other functional forms, cross-sectional data produce higher ET estimates than panel data, and the PETP is higher when the study is input-oriented. The primal approach implies a higher ET estimate than the dual analysis, and when more variables are included in the model, the PETP value is higher.

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“…The negative elasticity (-0.01) of pasture days implies that a 1% increase in the number of days that cows are kept in pastures will result in a 0.01% decrease in milk production per cow. Pasturing is considered as an extensive production system, resulting in lower milk yields (Kolver and Mueller, 1998;Dartt et al, 1999;Bargo et al, 2002;Nehring et al, 2011).…”

Section: Stochastic Production Frontier Model Estimation Resultsmentioning

confidence: 99%

Factors affecting the technical efficiency of dairy farms in Kosovo

Bajrami¹,

Wailes²,

Dixon³

et al. 2017

JCEA

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A possible accession into the World Trade Organization (WTO) and an expected membership in the European Union raise significant opportunities and challenges for the agricultural sector in Kosovo. As a result of these changes, the sector will have to improve efficiency and competitiveness. This research is motivated by the need to understand better the forces that drive competitiveness in the Kosovo dairy sector. This study estimates the technical efficiency (TE) of 243 dairy farms in Kosovo and relates TE variation to farm size and other primary determinants of TE. A stochastic frontier production function is estimated using a two-stage procedure. Results reveal that concentrate feed intake, land use per cow, and the number of days cows had been kept on pasture have statistically significant impacts on milk productivity per cow. The mean technical efficiency of dairy farms was estimated at 0.72. The major determinants that increase efficiency are breed improvement, intensification of corn production on the farm, improving concentrate feed intake, and using free-range production systems. Given the results from the technical efficiency analysis, it is crucial for the Government of Kosovo to redesign their dairy policy-specifically their grant investment schemes-and target assistance on improving national herd genetics, promoting free range systems and expanding area planted in corn.

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A Comparison of Profitability and Economic Efficiencies Between Management-Intensive Grazing and Conventionally Managed Dairies in Michigan

Cited by 79 publications

References 4 publications

Factors Affecting Profitability of Layer Hens Enterprises

Factors Affecting Profitability of Layer Hens Enterprises

A Study of Dairy Farm Technical Efficiency Using Meta-Regression: An International Perspective

Factors affecting the technical efficiency of dairy farms in Kosovo

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