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Cobb-Douglas stochastic frontier production function was modeled in the context of local level agricultural innovation systems framework and estimated using milk production data on dairy farmers.
This result suggests that there is room for significant increases of production through reallocation of existing resources.
Education, farm size, extension visit and off-farm income opportunity were found to be efficiency enhancing. The study recommends that different components of an agricultural innovation system have to interact to improve the innovation capacity of different actors and thereby improve the estimated technical inefficiencies.
Agricultural innovation systems, dairy, Ethiopia, stochastic frontier analysis, technical inefficiency. However, there is significant variation across developing countries .
This suggests a need for a better understanding of the factors that influence productivity and variations in productivity among countries, development sectors and farm enterprises.
Ethiopia is one of the most populous countries in the developing world and agriculture is central in its Corresponding author: Nonetheless, there is a great concern that productivity of livestock, especially the dairy sector, in Ethiopia is still very low compared to other neighboring countries.
For example, milk productivity is among the lowest in East Africa. It is estimated to be L per cow per lactation versus L and L in neighbouring countries like Kenya and Sudan, respectively . A wide gap exists between actual dairy farm production and potential productivity D Innovation and Technical Efficiency in the Smallholder Dairy Production System in Ethiopia identified in research stations, pointing to potential technical inefficiency in their current dairy production practices.
There is, however, lack of adequate empirical evidence regarding the production efficiency of farmers in Ethiopia.
A number of studies have examined the potential of the Ethiopian dairy sector to meet the expected growth in demand as well as to improve the incomes of the farmers . Many of those studies, however, focus on technological constraints of the sector including poor genotype of local breeds, animal diseases, availability of feed, input and output markets, and related policies.
The studies ignore an important source of growth-improving the technical efficiency of farmers. There are considerable inefficiency challenges that have greatly retarded the productivity of the livestock sector in Ethiopia. Livestock agriculture lacked the policy level attention it deserves .
For example, the Ethiopian public agricultural research staff allocated to crop research accounts for Slow innovation and technology transfer are observed such as shortage of genetic material, insufficient supply of forage crop seeds and feed concentrates.
Complementary services such as extension, credit, breeding, veterinary service, and input-output marketing are poor . All these constraints will be considered to evaluate where further efficiency gains are possible. This study addresses this issue by performing a production function analysis within a comprehensive local level innovation systems approach to dairy production.Why Start A Dairy Farm Business In Pakistan (Dairy Farming Guide Series By Momekh) - Ur/Hi.
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