Measuring Dairy Farm Efficiency in the Republic of Kazakhstan

  • Aida BALKIBAYEVA Saken Seifullin Kazakh AgroTechnical University, Kazakhstan
  • Zein AIDYNOV Saken Seifullin Kazakh AgroTechnical University, Kazakhstan
  • Ayagoz ORAZBAYEVA Saken Seifullin Kazakh AgroTechnical University, Kazakhstan
  • Yuliya SHEIKO Saken Seifullin Kazakh AgroTechnical University, Kazakhstan
  • Dina AIKUPESHEVA Saken Seifullin Kazakh AgroTechnical University, Kazakhstan

Abstract

Study was conducted in the area of comparative dairy efficiency and finding the most effective farms that can be used by less effective farms and new dairy farms to increase their outputs and use inputs in more productive ways. We used the data of dairy farms for 2015 provided by National Committee on Statistics of Kazakhstan upon our request to perform this research and applied Data Envelope Analysis (DEA).  The closest to the efficiency boundary was the dairy farm with a value of 0.66 (milk production 3 573 tons per year with the following top expenses: feed $400K; depreciation $200K and salary $142.424). Based on super-efficiency factors farm No 3 which produced 762,1 tons of milk  per year with the cost closest to min mean was found as the most effective one among others. The least efficient was farm No 1 produced the most amounts of milk but with higher than average expenses.


Based on the literature-based review the concept of dairy efficiency was developed, showing the linkage between inputs such as feed, salary, depreciation, energy and others.


Further analysis can show the geographic and climatic similarity or the identity of the management system of reference, distribution of feed and tied inefficient pre-regions. Proceeding from this, it is possible to develop and make management decisions that allow inefficient enterprises to become effective companies

References

[1] Alimzhanov, B., et al. 2016. Milk Productivity and Natural Resistance of Holstein-Breed Heifers of Own Generation. Biology and Medicine, 8 (2): 1–3.
[2] Allendorf, J.J., and Wettemann, P.J.C. 2015. Does Animal Welfare Influence Dairy Farm Efficiency? A Two-Stage Approach. Journal of Dairy Science, 98 (11): 7730–40. DOI: https://doi.org/10.3168/jds.2015-9390
[3] Bojnec, Š., and Imre F. 2013. Farm Income Sources, Farm Size and Farm Technical Efficiency in Slovenia. Post-Communist Economies, 25 (3): 343–56.DOI: https://doi.org/10.1080/14631377.2013.813140
[4] Charnes, A., et al. 1985. Foundations of Data Envelopment Analysis for Pareto-Koopmans Efficient Empirical Production Functions. Journal of Econometrics, 30 (1–2): 91–107. DOI:https://doi.org/10.1016/0304-4076(85)90133-2
[5] Charnes, A., Cooper, W. W., Huang, Z. M. and Sun, D. B. 1990. Polyhedral Cone-Ratio DEA Models with an Illustrative Application to Large Commercial Banks. Journal of Econometrics, 46 (1–2): 73–91. DOI: https://doi.org/10.1016/0304-4076(90)90048-X
[6] Cooper, W., Seiford, L., and Tone, K. 2000. Data Envelopment Analysis: A comprehensive text with models, applications, references and DEA-Solver software. Kluwer Academic Publishers. DOI:https://doi.org/10.1007/978-0-387-45283-8
[7] Demircan, V., Turan Binici, and Zulauf, C. R. 2010. Assessing Pure Technical Efficiency of Dairy Farms in Turkey.Agricultural Economics-Zemedelska Ekonomika, 56 (3): 141–48.
[8] Engelen van, A. (FAO). 2011. Dairy Development in Kazakhstan. Rome.
[9] Farrell, M. J. 1957. The Measurement of Productive Efficiency. Journal of the Royal Statistical Society. Series A (General) 120 (3): 253-290. DOI:https://doi.org/10.2307/2343100

[10] Günden, C., Şahin, A., Miran, B. and Yildirim, I. 2010. Technical, Allocative and Economic Efficiencies of Turkish Dairy Farms: An Application of Data Envelopment Analysis. Journal of Applied Animal Research, 37 (2): 213–16. DOI:https://doi.org/10.1080/09712119.2010.9707126
[11] Helis L., Ants-Hannes V., and Värnik, R. 2014. Using the information about dairy herd’s genetic level and milk quality in explaining the technical efficiency of Estonian dairy farms: a two-stage (DEA and Tobit) approach. EAAE 2014 Congress ‘Agri-Food and Rural Innovations for Healthier Societies’. http://ageconsearch.umn.edu/record/182650/files/Luik-Using_the_information_about_dairy_herd_s_genetic_level_and_milk_quality-492_a.pdf?version=1
[12] Huysveld, S., et al. 2017. Communicative Farm-Specific Diagnosis of Potential Simultaneous Savings in Costs and Natural Resource Demand of Feed on Dairy Farms. Agricultural Systems, 150: 34–45. DOI:https://doi.org/10.1016/j.agsy.2016.09.020
[13] Jaforullah, M., and Whiteman, J. 1999. Scale Effciency in the New Zealand Dairy Industry : A Non-Parametric Approach. The Australian Journal of Agricultural and Resource Economics, 43 (4): 523–41. DOI: https://doi.org/10.1111/1467-8489.00093
[14] Kazkenova, A., et al. 2015. Analysis of Dairy and Meat Products in the Republic of Kazakhstan. Asian Social Science, 11 (19): 90–97. DOI:https://doi.org/10.5539/ass.v11n19p90
[15] Kirner, L. 2008. Competitiveness of Low Input Systems in Dairy Farming. Journal of the Austrian Society of Agricultural Economics, 18 (3): 87–96.
[16] Kumbhakar, Subal C., Basudeb B., and DeeVon B. 1989. A Study of Economic Efficiency of Utah Dairy Farmers: A System Approach. The Review of Economics and Statistics, 71 (4): 595–604. DOI: 10.2307/1928101. Available at: https://www.jstor.org/stable/1928101
[17] Kuzlyakin, A. 2017. Kazakhstan Buys 77% of Raw Materials for Production of Dairy Products Abroad. Http://abctv.kz. Astana. 2017
[18] HAN Sang Woo, Lim Song Soo, and Balkibayeva A. "Productive efficiency and trade opportunities for Kazakhstan dairy farms" Paper presented at The 4th International Conference on Korea Trade (ICKT 2017) and the 11th International Triangle Symposuim (ITC 2017), Daejeon, Korea, November 9-11, 2017
[19] “Milk Export Increases in Kazakhstan.”( 2017). https://regnum.ru. 2017
[20] Madau, F.A., Furesi, R., and Pulina, P. Technical efficiency and total factor productivity changes in European dairy farm sectors. Agricultural and Food Economics, 5(1): 17. DOI: https://doi.org/10.1186/s40100-017-0085-x"
[21] Nurahnova, B. 2017. An Efficient Marketing Strategy for Competitiveness of the Milk and Dairy Industry: Case of the Republic of Kazakhstan. Revistaespacious, 38 (48): 37.
[22] Nurpeisova, M. 2016. Analysis of Milk Products in the Republic of Kazakhstan. Research and Findings, 3 (71): 325–29.
[23] Oguz, C. and Canan, S. 2016. Factors Affecting Milk Production in Dairy Farming Enterprises and Effectiveness Analysis: A Case Study in Konya Province of Turkey. CUSTOS E AGRONEGOCIO ON LINE 12 (3): 121–36.
[24] Punda, Inna. 2018. Digital Technologies in Dairy. https://foodindustry.kz. 2018
[25] Ramilan, T., Scrimgeour, F. and Marsh, D. 2009. Measuring Environmental-Economic Efficiency in the Karapiro Catchment, New Zealand.18th World Imacs Congress and Modsim09 International Congress on Modelling and Simulation: Interfacing Modelling and Simulation with Mathematical and Computational Sciences, no. July: 1181–87.
[26] Sazonova, D., and Sazonov, N. 2012. The Assessment of Technical Efficiency of Productive Resources on Farms.Economis Yesterday, Today and Tomorrow, 3–4: 108–28.
[27] Tulesheva, G. 2017. It Is Not like a Cheese in Butter, 2017. http://www.kazpravda.kz/articles/view/ne-sir-v-masle
[28] Zhu, J. 2009. Quantitative Models for Performance Evaluation and Benchmarking. Operations Research 1: 336. DOI: https://doi.org/10.1007/978-0-387-85981-1
* Act of Joint Stock Company. Available at https://online.zakon.kz
* Act of LLP. Available at https://online.zakon.kz
* National Committee on Statistics of Kazakhstan. Available at www.stat.gov.kz
Published
2018-12-31
How to Cite
BALKIBAYEVA, Aida et al. Measuring Dairy Farm Efficiency in the Republic of Kazakhstan. Journal of Environmental Management and Tourism, [S.l.], v. 9, n. 5, p. 967-978, dec. 2018. ISSN 2068-7729. Available at: <https://journals.aserspublishing.eu/jemt/article/view/2586>. Date accessed: 20 jan. 2019. doi: https://doi.org/10.14505//jemt.v9.5(29).08.