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


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.

Share and Cite:

Nakanwagi, T. and Hyuha, T. (2015) Technical Efficiency of Milk Producers in Cattle Corridor of Uganda: Kiboga District Case. Modern Economy, 6, 846-856. doi: 10.4236/me.2015.67079.

Conflicts of Interest

The authors declare no conflicts of interest.


[1] World Bank (2011) Uganda’s Dairy Supply Chain: Risk Assessment.
[2] Elepu, G. (2007) Policy Change in Dairy Marketing in Uganda and East Africa: Economic Impact and Pathways to Influence from Research. A Draft Report Submitted to Association for Strengthening Agricultural Research in Eastern and Central Africa.
[3] Nkamleu, G.B., Gokowski, J. and Kazianga, H. (2003) Explaining the Failure of Agricultural Production in Sub-Saharan Africa. The 25th International Conference of Agricultural Economists, Durban.
[4] Uganda Bureau of Statistics (2011) The 2011 Uganda Demographic and Health Survey.
[5] Stark, J. (2010) Climate Change and Conflict in Uganda: The Cattle Corridor and Karamoja. United States Agency for International Development.
[6] Yu, B. and Nin-Pratt, A. (2011) Agricultural Productivity and Policies in Sub-Saharan Africa. 2011 Annual Meeting, 24-26 July 2011, Pittsburgh.
[7] UNICEF (2012) Uganda Fast Facts.
[8] World Bank, FAO, ILRI and AU-IBAR (2011) Livestock Data Innovation in Africa BRIEF.
[9] Gelan, A. and Muriithi, B. (2010) Measuring and Explaining Technical Efficiency of Dairy Farms: A Case Study of Smallholder Farms in East Africa. The 3rd Conference of African Association of Agricultural Economists Africa and the Global Food and Financial Crises.
[10] Haider, M.Z., Ahmed, S. and Mallick, A. (2011) Technical Efficiency of Agricultural Farms in Khulna, Bangladesh: Stochastic Frontier Approach. International Journal of Economics and Finance, 3.
[11] Bravo-Ureta, B.E., Moreira, V.H., Arzubi, A.A., Schilder, E.D., álvarez, J. and Molina, C. (2008) Technological Change and Technical Efficiency for Dairy Farms in Three Countries of South America. Chilean Journal of Agricultural Research, 68, 360-367.
[12] Khai, H.V. and Yabe, M. (2011) Technical Efficiency Analysis of Rice production in Vietnam. Journal of ISSAAS, 17, 135-146.
[13] Rahman, K.M.M., Mia, M.I.A. and Bhuiyan, M.K.J. (2012) A Stochastic Frontier Approach to Model Technical Efficiency of Rice Farmers in Bangladesh: An Empirical Analysis. The Agriculturists, 10, 9-19.
[14] Jondrow, J., Knox Lovell, C.A., Materov, I.S. and Schmidt, P. (1982) On the Estimation of Technical Efficiency in the Stochastic Frontier Production Function Model. Journal of Econometrics, 9, 233-238.
[15] Idris, N.D.M., Siwar, C. and Talib, B. (2013) Determinants of Technical Efficiency on Pineapple Farming. American Journal of Applied Sciences, 10, 426-432.
[16] Goncalves, R.M., da Cruz Vieira, W., de Lima, J.E. and Gomes, S.T. (2008) Analysis of Technical Efficiency of Milk Producing Farms in Minas Gerais. Economia Aplicada, 12, 321-335.
[17] Feng, S. (2008) Land Rental, Off-Farm Employment and Technical Efficiency of Farm Households in Jiangxi Province, China. NJAS: Wageningen Journal of Life Sciences, 55, 363-378.
[18] Singh, S. and Sharma, S. (2011) Measurement of Technical Efficiency in Dairy Sector of India: A Stochastic Frontier Production Function Approach. TMC Academic Journal, 5, 51-64.
[19] Basnayake, B.M.J.K. and Gunaratne, L.H.P. (2002) Estimation of Technical Efficiency and Its Determinants in the Tea Small Holding Sector in the Mid Country Wet Zone of Sri Lanka. Sri Lankan Journal of Agricultural Economics, 4, 137-150.
[20] Wadud, I.K.M. and ArRashid, H. (2011) Profit Efficiency and Farm Characteristics: Evidence from Rice Farmers in Bangladesh. Proceedings of the Barcelona European Academic Conference, Barcelona, 6-9 June 2011.
[21] Obwona, M. (2006) Determinants of Technical Efficiency Differentials amongst Small and Medium Scale Farmers in Uganda: A Case of Tobacco Growers. African Economic Research Consortium Research, Paper 152.
[22] Asefa, S. (2012) Analysis of Technical Efficiency of Crop Producing Smallholder Farmers in Tigray, Ethiopia. Munich Personal RePEc Archive, No. 40461.
[23] Al-Sharafat, A. (2013) Technical Efficiency of Dairy Farms: A Stochastic Frontier Application on Dairy Farms in Jordan. Journal of Agricultural Science, 5.
[24] Ashagidigbi, W.M., Sulaiman, S.A. and Adesiyan, A. (2011) Technical and Allocative Efficiency of Poultry Producers in Nigeria. Agricultural Journal, 6, 124-130.
[25] Oluwatusin, F.M. (2011) Measuring Technical Efficiency of Yam Farmers in Nigeria: A Stochastic Parametric Approach. Agricultural Journal, 6, 40-46.
[26] Taru, V.B., Lawal, H. and Tizhe, I. (2011) Technical Efficiency of Sole Cowpea Production in Adamawa State, Nigeria: A Cobb-Douglas Stochastic Frontier Function. Journal of Economics and International Finance, 3, 504-507.
[27] Sabaghi, M.A., Badavi, H. and Ommani, A.R. (2012) Comparison of the Efficiency of Traditional and Industrial Milk Production Units in Khuzestan Province. International Journal of Agricultural Science, Research and Technology, 1, 177-183.
[28] Bagamba, F., Ruerd, R. and Mariana, R. (2007) Determinants of Banana Productivity and Technical Efficiency in Uganda. International Food Policy Research Institute, Washington DC.
[29] Food and Agriculture Organization (2012) Livestock Sector Development for Poverty Reduction: An Economic and Policy Perspective Livestock’s Many Virtues. FAO, Rome.
[30] Demircan, V., Binici, T. and Zulauf, C.R. (2010) Assessing Pure Technical Efficiency of Dairy Farms in Turkey. Agricultural Economics—Czech, 56, 141-148.
[31] Bardhan, D. and Sharma, L.M. (2013) Technical Efficiency in Milk Production in Underdeveloped Production Environment of India. SpringerPlus, 2, 65.
[32] Mor, S. and Sharma, S. (2012) Technical Efficiency and Supply Chain Practices in Dairying: The Case of India. Agricultural Economics—Czech, 58, 85-91.
[33] Abatania, L.N., Hailu, A. and Mugera, A.W. (2012) Analysis of Farm Household Technical Efficiency in Northern Ghana Using Bootstrap DEA. Proceedings of the 56th Annual Conference of the Australian Agricultural and Research Economics Society, Perth, 7-10 February 2012.
[34] Alemdar, T., Bahadir, B. and Oren, M.N. (2010) Cost and Return Analysis and Technical Efficiency of Small Scale Milk Production: A Case Study for Cukurova Region, Turkey. Journal of Animal and Veterinary Advances, 9, 744-847.
[35] Rahman, S.A. and Umar, H.S. (2009) Measurement of Technical Efficiency and Its Determinants in Crop Production in Lafia Local Government Area of Nasarawa State, Nigeria. Journal of Tropical Agriculture, Food, Environment and Extension, 8, 90-96.
[36] Majiwa, E.B., Kavoi, M.M. and Murage, H. (2012) Smallholder Dairying in Kenya: The Assessment of the Technical Efficiency Using the Stochastic Production Frontier Model. JAGST, 14.
[37] Awunyo-Vitor, D., Bakang, J. and Cofie, S. (2013) Estimation of Farm Level Technical Efficiency of Small-Scale Cowpea Production in Ghana. American-Eurasian Journal of Agricultural & Environmental Sciences, 13, 1080-1087.
[38] Binam, J.N., Tonye, J. and Wandji, N. (2005) Sources of Technical Efficiency among Small Holder Maize and Peanut Farmers in Slash and Burn Agricultural Zone of Cameroon. Journal of Economic Cooperation, 26, 193-210.
[39] Fita, L., Trivedi, M.M., Patel, A.M., Tassew, B. and Joshi, C.G. (2013) Determinants of Technical Efficiency of the Dairy Farmers in Ada District of Oromia State, Ethiopia. Iranian Journal of Applied Animal Science, 3, 59-65.
[40] Omiti, J., Wanyoike, F., Staal, S.J., Delgado, C. and Njoroge, L. (2006) Will Small-Scale Dairy Producers in Kenya Disappear Due to Economies of Scale in Production? Proceedings of the International Association of Agricultural Economists Conference, Gold Coast, Australia, 12-18 August 2006.
[41] Uzmay, A., Koyubenbe, N. and Armagan, G. (2009) Measurement of Efficiency Using Data Envelopment Analysis (DEA) and Social Factors Affecting Technical Efficiency in the Dairy Cattle Farms within the Province of Izmir, Turkey. Journal of Animal and Veterinary Advances, 8, 1110-1115.
[42] Masuku, B.B. (2014) Technical and Allocative Efficiency of Smallholder Dairy Farmers in Swaziland. Journal of Economics and Sustainable Development, 5, 1-9.
[43] Cabrera, V.E., Solis, I.D. and del Corral, J. (2010) Determinants of Technical Efficiency among Dairy Farms in Wisconsin. Journal of Dairy Science, 93, 387-393.
[44] Djokoto, J.G. (2011) Technical Efficiency of Agriculture in Ghana: A Time Series Stochastic Frontier Estimation Approach. Journal of Agricultural Science, 4, 154.
[45] Ojehomon, V.E.T., Ayinde, O.E., Adewumi, M.O. and Omotesho, O.A. (2013) Determinant of Technical Efficiency of New Rice for Africa (NERICA) Production: A Gender Approach. Ethiopian Journal of Environmental Studies and Management, 6, 453-460.
[46] Adedeji, I.A., Adelalu, K.O., Ogunjimi, S.I. and Otekunrin, A.O. (2013) Application of Stochastic Production Frontier in the Estimation of Technical Efficiency of Poultry Egg Production in Ogbomoso Metropolis of Oyo State, Nigeria. World Journal of Agricultural Research, 1, 119-123.
[47] Ahmad, M., Muhammad, R. and Ali, A. (1999) An Analysis of Technical Efficiency of Rice Farmers in Pakistani Punjab. Bangladesh Journal of Agricultural Economics, 22, 79-86.

Copyright © 2022 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.