TITLE:
Technical Efficiency of Milk Producers in Cattle Corridor of Uganda: Kiboga District Case
AUTHORS:
Teddy Triza Nakanwagi, Theodora S. Hyuha
KEYWORDS:
Cattle Corridor Milk Producers, Technical Efficiency, Stochastic Frontier Approach
JOURNAL NAME:
Modern Economy,
Vol.6 No.7,
July
29,
2015
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.