Contact Us

For Marketing, Sales and Subscriptions Inquiries
Rockefeller Center, 45 Rockefeller Plaza
20th Flr Unit #5, New York, NY 10111
United States

Conference List

Comparative Analysis of Technical Efficiency of Milk Production Systems in Uasin Gishu County of Kenya

Michael B. Kibiego


Job K. Lagat


Bockline O. Bebe

Michael B. Kibiego 1 ,

Job K. Lagat 1 Bockline O. Bebe 3

  1. Department of Agricultural Economics and Agribusiness Management, Egerton University, Egerton, Kenya 1

  2. Department of Animal Sciences, Egerton University, Egerton, Kenya 3

Pages: 157-168

DOI: 10.18488/journal.62/2015.2.6/

Share :


In Uasin Gishu County the rapidly declining household land sizes are a pre-requisite to increased intensification in dairy production. Although the three dairy production pathways are used by farmers in the County, it has not been established which one of them would be comparatively competitive to enhance commercialization process and lead to attractive returns to smallholders investing in milk production. The objective of this paper was to determine the economic efficiency of smallholder milk production under different intensification methods. A sample size of 246 smallholder dairy farmers was selected in Uasin Gishu County using stratified random sampling method. Using both primary and secondary data, economic efficiencies were evaluated utilizing Cobb-Douglas stochastic frontier production function. The result of the analysis indicate that presence of technical inefficiencies had effects in milk production as depicted by the significant estimated gamma coefficient of each model, the generalized likelihood ratio test and the predicted economic efficiencies within the dairy farms. Technical efficiency increased with the level of intensification of milk production with open grazing, semi-zero grazing and zero grazing recording a mean score of 0.54, 0.57 and 0.81 respectively. The maximum likelihood estimates for technical efficiency was an increasing function of cost of feeds and equipment in the three production systems with statistical significance of 5%. Market access condition the technical efficiency of milk production especially for this highly perishable product. Educational opportunities for farmers lead to initiative, innovation and improvements. There is need to increase the level of intensification in milk production to enhance technical efficiency.
Contribution/ Originality
This study contributes in the existing literature on competitiveness. It uses new estimation methodology for estimating technical efficiency. It is one of very few studies which have investigated livestock performance. The paper contributes the first logical analysis of   efficiency and this increased with intensification. This study documents milk production efficiency.




  1. Ajibefun, I.A. and A.G. Daramola, 2003. Determinants of technical and allocative efficiency of micro-enterprises: Firm-level evidence from Nigeria. African Development Review, 15(2-3): 353–395.
  2. Alemdar, T., B. Bahadir and M.N. Oren, 2010. Cost and return analysis and technical efficiency of small scale milk production: A case study for Cukurova region, Turkey. Journal of Animal and Veterinary Advances, 9(4): 844-847.
  3. Alvarez, A., J. Corral, D. Solís and J.A. Pérez, 2008. Does intensification improve the economic efficiency of dairy farms. Journal of Dairy Science, 91(9): 3693-3698.
  4. Baltenweck, S., J. Staal, M. Owango, H. Muriuki, B. Lukuyu, G. Gichungu, M. Kenyanjui, D. Njubi, J. Tanner and W. Thorpe, 2000. Intensification and competitiveness of small holder dairy production systems in the greater Nairobi milk-shed. Kenya Agricultural Research Institute/Ministry of Agriculture/International Livestock Research Institute Report, Nairobi, Kenya. pp: 11.
  5. Battese, G.E., 1992. Frontier production functions and technical efficiency: A survey of empirical applications in agricultural economics. Agricultural Econonics Journal, 7(1): 185–208.
  6. Bravo-Ureta, B.E., V.H. Moreira, A.A. Arzubi, E.D. Schilder, J. Alvarez and M. C., 2008. Technological change and technical efficiency for dairy farms in three countries of South America. Chilean Journal of Agricultural Resource, 68(1): 360-367.
  7. Coelli, T.J., 1996. A guide to DEAP version 2.1: A data envelopment analysis (Computer) program. Center for efficiency and productivity analysis (CEPA). Working paper No. 96/08. Armidale, Australia: University of New England. pp: 50.
  8. Cuesta, R.A., 2000. A production model with firm-specific temporal variation in technical inefficiency: With application to Spanish dairy farms. Journal of Production Analysis, 13(1): 139-158.
  9. Galanopoulos, K., S. Aggelopoulos, I. Kamenidou and K. Mattas, 2006. Assessing the effects of managerial and production practices on the efficiency of commercial pig farming. Agricultural Systems, 88(1): 125-141.
  10. Henningsen, A., 2012. Estimating censored regression models in R using the censreg package. Denmark: Institute of Food and Resource Economics. University of Copenhagen. pp: 12.
  11. Igbekele, A., 2003. Determinants of technical inefficiency in farm production: The case of  nde farmers in Ondo State, Nigeria. Western Agricultural Economics Association, Annual Meeting, July 13-16, 2003, Denver, Colorado. Available from [Accessed 29/01/2015].
  12. Kumbhakar, S. and K. Lovell, 2000. Stochastic frontier analysis. Cambridge, UK: Cambridge University Press.
  13. Lovo, S., 2013. Pension transfers and farm household technical efficiency: Evidence from South Africa. American Journal of Agricultural Economics, 93(5): 1391-1405.
  14. Manoharan, R., K.N. Selvakumar and S.P. Serma, 2004. Efficiency of milk production in pondicherry: A frontier production approach. Indian Journal of Animal Resources, 38(1): 20-24.
  15. Michalickova, M., Z. Krupova and E. Krupa, 2013. Technical efficiency and its determinants in dairy cattle. Acta Oeconomica et Informatica, 14(1): 2–12.
  16. Murova, O. and B. Chidmi, 2009. Impacts of federal government programs and specific farm variables on technical efficiency of dairy farms. A Paper Presented at the 2009 Southern Agricultural Economics Association Annual Meeting, Atlanta, Georgia. Available from Http://Purl.Umn.Edu/46822.
  17. Nanyeenya, W.N., J. Mugisha, S.J. Staal, D.I. Baltenweck Romney and N. Halberg, 2008. Dairy performance and intensification under traditional and economic efficiency farm plans in Uganda. Middle-East Journal of Scientific Research, 3(2): 82-89.
  18. Nganga, S.K., J. Kungu, N. De Ridder and M. Herrero, 2010. Profit Efficiency among Kenyan smallholder milk producers: A case study of Meru-South district, Kenya. African Journal of Agricultural Research, 5(4): 332-337.
  19. Ooms, D.L., 2007. Micro-economic panel data models for Dutch dairy farming. Phd Thesis, Wageningen University. pp: 134.
  20. Qushim, B., J. Gillespie and R.F. Nehring, 2013. Scale economies and economic performance in Southeastern U.S. Cow-Calf production. Southern Association of Agricultural Economists Annual Conference, February 2-5, 2013, Orlando, Florida.
  21. Tauer, L.W., 1998. Productivity of New York dairy farms measured by nonparametric malquist indices. Journal of Agricultural Economics, 49(1): 234-249.
  22. Tauer, L.W. and K.P. Belbase, 1987. Technical efficiency of New York dairy farms. Northeastern Journal of Agricultural and Resource Economics, 16(1): 10-16.
  23. Tauer, L.W. and A.K. Mishra, 2006. Dairy farm cost efficiency. Journal of Dairy Science, 89(1): 4937-4943.


Google Scholor ideas Microsoft Academic Search bing Google Scholor


Competing Interests:


Related Article

( 1 ) Profit And Loss Sharing As an Offshoot for Bank Stability: A Comparative Analysis
( 2 ) Comparative Analysis of Technical Efficiency of Milk Production Systems in Uasin Gishu County of Kenya
( 3 ) Comparative Analysis of the Effectiveness of Coub-Douglas, Real Business Cycle, and Keynsian Growth Models in Determining Economic Growth in Nigeria
( 4 ) New Evidence on the Link Between Income Inequality and Misery Index: A Nonlinear Time Series Analysis
( 5 ) Geographical Starting Points the Analysis of Current Rural Problems in Montenegro: Case Study of Rural Local Community Kralje
( 6 ) Institutionalising and Mainstreaming Policy Analysis Culture in African Environments
( 8 ) The Effect of Selected Financial Ratios on Profitability: An Empirical Analysis of Listed Firms of Cement Sector in Saudi Arabia
( 9 ) Benefit-Cost Analysis of Alternative Insect Pests Management in Cashew and Mango Orchards in Tanzania
( 11 ) An Analysis of Purchase Behavior of Generation Y in Kenya
( 12 ) Dynamic Analysis of Competitive Technology Innovation Diffusion Model
( 13 ) Causal Relationship between Imports and Economic Growth in Zimbabwe: An Empirical Analysis 1975 – 2013
( 14 ) Measuring Efficiency in Banks: A Brief Survey on Non – Parametric Technique (Data Envelopment Analysis)
( 15 ) A Theoretical Analysis Upon the Environmental Health and Justice Issue: A Case Study for a Comparison Between G20s Unitary and Federal Members
( 16 ) Decoupling Analysis of Bulgaria’s Agriculture
( 17 ) A Factor Analysis Approach Towards a Study of the Factors Affecting Students’ Choice of Higher Education Institution: A Case Study of a Private Institution (Twintech International University College of Technology)
( 18 ) Panel Data Analysis of the Impact of Economic Freedom as Well as Economic Conditions, The Quality of Life, and Public Education Spending on U.S. Undocumented Immigrant Settlement Patterns
( 19 ) Dynamics of Inflation, Economic Growth, Money Supply and Exchange Rate in India: Evidence from Multivariate Analysis
( 20 ) Purchasing Power Parity Hold in Major SAARC Countries? Panel Cointegration Analysis
( 21 ) Specifying Quality of Governance in Transition Economies with Cluster Analysis
( 22 ) Effect of Budget Defict on Private Investment in East African Community for the Period 1981-2015: A Panel Data Analysis
( 24 ) China Pakistan Economic Corridor (CPEC): Analysis of Internal and External Challenges
( 25 ) The Effects of Exchange Rate Variability on Trade Flows in Nigeria: A Cointegration Analysis
( 26 ) Social Protection Programmes, Agricultural Production and Youth Employment in Nigeria: Analysis from LSMS-ISA
( 27 ) Scenario Economic Impact Analysis of Offshore Fishing Tournaments in Ocean City
( 28 ) An Analysis of Chinas Poverty Research Based on CiteSpace
( 29 ) Dutch Disease: Myth or Reality? An Analysis of the ARDL Model
( 30 ) Analysis of the Effects of Pull and Push Factors on Brain Drain: An Example of Turkey
( 31 ) Analysis of Environmental Factors Affecting Manufacturing Small and Medium-Size Enterprises in Kogi State Nigeria
( 32 ) Estimating the Economic Determinants of Technical Efficiency of Bioenergy in EU-28: An Application of Tobit Analysis
( 33 ) Problems of Bilateral Trade Deficit between Bangladesh and India: A 2SLS Regression Analysis
( 34 ) Analysis of Effect of Profitability, Capital, Risk Financing, the Sharia Supervisory Board and Capabilities Zakat in Islamic Perspective with Circular Approach Causastion on Islamic Banks in Indonesia
( 35 ) Incidence of Short Term Private Capital Outflow: Empirical Analysis in Nigeria
( 36 ) The Trajectory and Diaspora of Women Imprisonment: An Analysis
( 37 ) German Exports, Economic Growth and Foreign Demand: An Analysis of the Period 2000–2017
( 38 ) Multivariate Analysis in Formulation of the Benefit-Cost Index Related to the Sugarcane Production System in the Quirinopolis Municipality Productive Center, Goias, Brazil
( 39 ) Determinant Analysis of Productivity on Rice Management in Indonesia
( 40 ) An Agnostic Analysis of Exchange Rate Movement in Ghana
( 41 ) Analysis of Traffic Accident Occurrence at Hazardous Road Locations: A Case Study in Tunisia
( 42 ) Analysis of Causal Nexus between Defense Spending and Economic Growth in Nigeria: A Toda-Yamamoto Approach
( 43 ) Determinant of Tax Revenue Effort in Sub-Saharan African Countries: A Stochastic Frontier Analysis
( 44 ) Analysis of Credit Ratings Determinants: Evidences in Brazilian and American States
( 45 ) Export- Led Growth Hypothesis for Ghana: A TVAR & TVECM Analysis
( 46 ) The Dimensions of the Quality Perceived by Users in a Clinical Analysis Laboratory of A University Hospital
( 47 ) An Empirical Analysis of the Impact of Decentralization on Poverty in Cameroon
( 48 ) Human Capital and Economic Growth in Latin America: A Cointegration and Causality Analysis
( 49 ) Exploring the Dimensions Using Exploratory Factor Analysis of Disruptive Factors and Inventory Control
( 50 ) A Qualitative Analysis of the Impediments to Business Innovation and Information Management in Nigeria: A Policy Stance
( 51 ) Analysis of Demographic Factors on Perceptions of Inventory Managers towards Healthcare Performance
( 52 ) Contribution of Ready-Made Garments Industry on the Economic Development of Bangladesh: An Empirical Analysis
( 53 ) The Financial Decentralization Policy for Local Development in Cameroon: An Econometric Analysis
( 54 ) Cross-Time-Frequency Analysis of Volatility Interdependence among Stock and Currency Markets
( 55 ) Financial Development and Economic Growth in Nigeria: New Evidence from a Threshold Autoregressive and Asymmetric Analysis
( 56 ) Analysis of Synergies in Indian Corporate M&A Deals: A Logit Regression Approach
( 57 ) Economic and Noneconomic Forces on Remittance Receiving: A Panel Analysis of Top Remittance Sending Countries towards Bangladesh
( 58 ) Analysis of Factors Affecting Capital Structure and the Impact on LQ-45 Share Price in 2015-2018
( 59 ) Econometric Analysis of Dutch Disease Implication of China-Africa Trade
( 60 ) The Technical Efficiency of Collective Irrigation Schemes in South-Eastern of Tunisia
( 62 ) The Correlation Between the Palestinian Civil Society Institutions and the Universities (Status: The Palestine Technical University Kadourie with Tulkarm Institutions)
( 64 ) Determinants of Technical Efficiency of Hospitals in Kenya: 2012-2016
( 69 ) Efficiency of Microfinance (MF) Institutions in Bangladesh: A Study on Top 10 MF Institutions
( 72 ) Milk or Wine: Are Critical Infrastructure Protection Architectures Improving with Age?
( 73 ) The Problem of Distribution of Food Products and their Influence on the Decision of Purchasing in the Consumer a Case Study of Milk Products in the South, Algeria
( 74 ) The Impact of Rice Production, Consumption and Importation in Nigeria: The Political Economy Perspectives