Technical efficiency of dairy producers in Uruguay

Abstract

In the work, an estimation and analysis of the technical efficiency of the dairy producers in Uruguay was carried out, based on the information available in the General Agricultural and Livestock Census corresponding to the 2010/2011 production year. It was applied a stochastic boundary analysis to obtain a measure of the technical efficiency, as well as of each establishment. The results showed that Uruguayan dairy farmers operate at 79.9% of their capacity, which shows that many producers could still improve their incomes with the available technology. In addition, the results show that the technical assistance as well as the use of silos reduces the inefficiencies possible inefficiencies.