Scale Economies, Technical Efficiency, and the Sources of Total Factor Productivity Growth of Quebec Dairy Farms

Singbo, A and Larue, B (2016) Scale Economies, Technical Efficiency, and the Sources of Total Factor Productivity Growth of Quebec Dairy Farms. Scale Economies, Technical Efficiency, and the Sources of Total Factor Productivity Growth of Quebec Dairy Farms, 64. pp. 339-363. ISSN 0008-3976

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Abstract

Canada's average cost for milk production is among the highest in the world. This paper focuses on specific potential causes by estimating economies of scale and technical efficiency for a panel of Quebec dairy farms that spans the 2001–10 period. Additionally, this paper investigates the sources of total factor productivity growth. The stochastic frontier analysis, based on an input-distance function, is used to estimate returns to scale relationships across dairy farms. The results show that there is significant economies scale to be exploited and that cost of production could also be reduced by improving technical efficiency. Accordingly, the paper indicates that input-mix effect is the main source of total factor productivity growth. The results have important implications for Canada's supply management policy, and more specifically for the trading of production quota between dairy farmers, as well as for the delivery of targeted extension services.

Item Type:	Article
Divisions:	RP-Market Institutions and Policies
CRP:	CGIAR Research Program on Policies, Institutions, and Markets (PIM)
Uncontrolled Keywords:	Canada; Quebec dairy farms; Dairy Farms; Stochastic Frontier Analysis; Dairy
Subjects:	Others > Agriculture-Farming, Production, Technology, Economics
Depositing User:	Mr Ramesh K
Date Deposited:	27 Aug 2015 06:00
Last Modified:	08 Jan 2017 06:39
URI:	http://oar.icrisat.org/id/eprint/8958
Official URL:	http://dx.doi.org/10.1111/cjag.12077
Projects:	UNSPECIFIED
Funders:	UNSPECIFIED
Acknowledgement:	UNSPECIFIED
Links:	Google Scholar

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