Marcelo Dias Paes Ferreira, Andre Rozemberg Peixoto Simões, Lindomar Pegorini Daniel, Charles Frederick Nicholson
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Assessing the Impacts of Compost‐Bedded Pack Barns on the Productive Efficiency of Brazilian Dairy Farms
The objective of this study was to evaluate differences in the technical efficiency of alternative milk production systems on Brazilian farms. Using a panel from 2014 to 2021 (1117 observations of 383 dairy farms) we compare the technical efficiency of more recently adopted Compost‐bedded Pack Barns (CPB) with that of Semi‐confinement (SC), and Unstructured confinement (UNS) systems. A stochastic frontier was estimated by a Generalized True Random Effects to assess the relationship between technical efficiency and the production systems adopted, decompose efficiency into Transient (short‐term) and Persistent (long‐term) components, and control for unobserved heterogeneity. We found that farms using confined systems are more efficient than those using semi‐confined systems. The decomposition of the Overall Technical Efficiency in its Persistent and Transient components suggests that farmers can be more efficient when dealing with short‐term shocks than when deciding which system to use. The use of more capital‐intensive technologies such as CPB may provide opportunities to improve dairy farm profitability and productivity growth in Brazil.
期刊介绍：
Agribusiness: An International Journal publishes research that improves our understanding of how food systems work, how they are evolving, and how public and/or private actions affect the performance of the global agro-industrial complex. The journal focuses on the application of economic analysis to the organization and performance of firms and markets in industrial food systems. Subject matter areas include supply and demand analysis, industrial organization analysis, price and trade analysis, marketing, finance, and public policy analysis. International, cross-country comparative, and within-country studies are welcome. To facilitate research the journal’s Forum section, on an intermittent basis, offers commentary and reports on business policy issues.
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