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Free Content How can dairy farmers become more revenue efficient? Efficiency drivers on dairy farms

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The aim of this article is to identify a set of efficiency drivers which can explain differences in revenue efficiency between dairy farms. To explore farm efficiency, we apply stochastic frontier analysis on a balanced panel of 212 Norwegian dairy farms. The results show that on average the farms can increase the revenue from dairy by 28 percentage points. The article identifies important drivers of revenue efficiency which the farmer can change in the short or medium run to increase efficiency. Automatic milking systems, high beef production per cow, low age at first calving and organic farming are among drivers which can explain differences in revenue efficiency between farms. Our findings have implications for both management scholars, practitioners and policy makers.
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Keywords: automatic milking systems; beef production; farm efficiency; farm management; panel data; stochastic frontier function

Document Type: Research Article

Publication date: July 1, 2019

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