Technical Efficiency of Milk Producers in Cattle Corridor of Uganda: Kiboga District Case

Abstract

Overall objective of the study was to analyze technical efficiency and its determinants among milk producers in cattle corridor parts of Kiboga district. Stochastic frontier approach was employed to analyze technical efficiency and Tobit model regression to establish determinants of technical efficiency. The study used cross sectional edited data of 190 randomly sampled respondents from the three sub counties of Dwaniro, Kapeke and Lwamata. Milk producers achieved average technical efficiency level of 68%. Average technical efficiency indicated that milk producers were operating below the production frontier and were not technically efficient but had potential to improve. Determinants of technical efficiency were herd size, improved cows, hired labour, land ownership, water source and extension services. Policies that will lead to increased investment in valley tanks, increased investment in cross/exotic cows and increased investment in provision of extension are recommended by the study.