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© 1987 Oxford University Press and the Foundation for the European Review of Agricultural Economics

research-article

Farm-specific technical efficiency in the England and Wales dairy sector

P. J. DAWSON*

Department of Agricultural Economics, University of Newcastle upon Tyne U.K.

Received November 1, 1986; Revision received August 1, 1987.

Summary

This paper seeks to measure farm-specific technical efficiencies in the England and Wales dairy sector at discrete points in time. Stochastic production functions are estimated econometrically using Milk Marketing Board data for three stratified random samples of dairy farms in 1976/6, 1980/1 and 1984/5. From these results, a measure of relative technical efficiency is calculated for each farm in each year. The three distributions of technical efficiencies are examined. The distribution for 1976/7 has the lowest mean and highest variance; that for 1984/5 has the highest mean and lowest variance. The results indicate an increase in relative technical efficiency which the imposition of quotas has accelerated.


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