Analyzing economic efficiency of dairy farmers in Don Duong District, Lam Dong Province

Abstract

During the Covid-19 pandemic, dairy farmers faced many challenges due to limited milk transportation. After the pandemic, when dairy farmers resumed production, the price of animal feed experienced a dramatic increase, leaving farmers in a dilemma. The study aimed to analyze the economic efficiency in dairy farming households in Don Duong district, Lam Dong province. The study utilized the input-oriented DEA model and collected data from 277 dairy farmers. The results indicate that, under the assumption of efficiency varying with scale, the technical efficiency (TE), distributional efficiency (AE), and average economic efficiency of dairy households were 0,982, 0,622, and 0,611, respectively. However, assuming constant efficiency to scale, these indicators were 0,968, 0,576, and 0,578, respectively. Additionally, to minimize costs, on average, each livestock household needs to reduce input costs by 39.9% (VRS) and 43.2% (CRS).