Profit efficiency among peri-urban dairy farms in Odisha: an application of the stochastic frontier function Acharya Kamlesh Kumar1*, Malhotra Ravinder1, Sendhil R.2, Kumari Binita3 1Department of Dairy Economics, Statistics and Management, ICAR-National Dairy Research Institute (Deemed University), Karnal, Haryana132001 2ICAR-Indian Institute of Wheat and Barley Research, Karnal, Haryana132001 3Department of Agricultural Economics, Rashtriya Kisan (PG) College, Shamli, Uttar Pradesh247776 *Corresponding author: kamlesh.acharya30@gmail.com
Online published on 8 April, 2022. Abstract This study examines the profit efficiency of peri-urban dairy farms in Odisha. Inefficiencies are found, and the profit efficiency ranges from 2% to 92%; the mean is 54%. The mean profit efficiency is 76% for large farms, the highest, 64% for medium-size farms, and 60% for small farms. Concentrate price and labour wage rates affect profits significantly. Profit inefficiency is impacted positively and significantly by herd size and negatively and significantly by herd composition; decreasing the herd size and increasing the number of crossbred cows would enhance profit efficiency. Improving education and dairy farm experience would enhance the profit efficiency. Top Keywords Inefficiency model, Peri-urban, Profit efficiency, Stochastic profit frontier. Top |