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Economic efficiency of smallholder dairy production in Bavi District, Hanoi City, Vietnam
Dissertation Abstract:
The study analyzes the economic efficiency of smallholder dairy production in Bavi District, Hanoi City, Vietnam, focusing on milk production in response to the consumption demand driven by the cow population in the district. The Stochastic Production Frontier model assesses the technical efficiency of small-scale dairy farmers in Bavi District. Meanwhile, the Stochastic Profit Frontier model is employed to evaluate the economic efficiency of these farmers. Additionally, a cost and return analysis is conducted to estimate the profits of small-scale dairy farms.
Based on a sample of 309 randomly selected small-scale dairy farmers, the study found that the technical efficiency of dairy farms is relatively high, at approximately 91%. Notably, no farms among the surveyed respondents had an efficiency level of 0-70%. The majority of farms (203 farms), which account for more than 60% of the total surveyed respondents, fall within the 90-100% technical efficiency range. Additionally, the study found that the economic efficiency of all small-scale dairy farms is approximately 73%. Most farms (87 farms), which account for nearly 30% of the total surveyed respondents, fall within the 70-80% economic efficiency range. The remaining farms (approximately 100 farms) achieve high economic efficiency levels ranging from 80% to over 90%.
Household experience, grassland area, access to technology, and feeding practices are found to have a positive impact on economic efficiency. In contrast, age, access to input markets, and access to output markets affect economic efficiency negatively. Furthermore, sex, barn size, access to capital, and membership in cooperatives are found to have no significant effect on economic efficiency.
The findings of this study underscore the importance of adopting newer technologies. While the technical efficiency of small-scale dairy farmers is relatively high at 91%, it is evident that the current technology has reached its limits in terms of productivity. To foster further improvements, it is recommended that subsidies or financial incentives be offered to encourage small-scale farmers to invest in more advanced technologies. Moreover, training programs aimed at facilitating the gradual adoption of these new technologies would benefit farmers looking to transition to more efficient practices.