Resource use efficiency of milk production among different types of dairy farms in Kerala

Abstract

The present study analysed the resource use efficiency of milk production among different types of dairy farms in Kerala. The area of study and the respondents were selected using a stratified multi-stage random sampling technique. The farmers/farm households were categorized into small farms (1-2 cows), medium (3-10 cows), and large farms (more than ten cows). The relationship between inputs and milk production has been explored through the production function approach. Resource use efficiency was essentially a comparison between the Marginal Value Product (MVP) of an input with its price that gave direction on the use of that particular input in order to maximize profit. The results showed that in small farms, the MVPs of two inputs viz. roughages and labour was significantly less than unity, signifying overutilisation of these inputs. The MVP value of concentrate was significantly higher than unity, indicating their underutilisation in the milk production process. The MVP of concentrate was positive and significantly greater than unity in medium and large farms, also indicating their underutilisation.