Technical Efficiency in Milk Production of the DualPurpose Cattle System in El Salvador during Dry
and Rainy Seasons
Presenter: Angel A. Duron B.
Co-Author: Wen-Chi Huang, Ph.D.
June 20, 2011
Focus of the study
•
•
•
•
•
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Dairy industry profile:
59,914 cattle farms
1.04 million cattle
60 to 70% of the herd is dual-purpose system (DPCS)
589.5 million liters annual milk
79% of the milk is produced by DPCS farms
81.9 kg milk per capita consumption in 2006
Dual-purpose cattle system (DPCS) use crossbred
animal to produce milk and meat. (Ortega et al.,
2007)
Figure 2. El Salvador’s map, location of the study.
2
Literature review
• Developing countries will increase 2.9% in
consumption by 2020. (Delgado, 2000)
• Dual-purpose technical efficiency was
conducted in Venezuela by Ortega et al., 2007.
• DPCS are pasture-based
• Central America milk production is 40% lower
in dry season. (Lentes et al., 2010)
3
Objective of the study:
• To estimate the DPCS farm performance using
the technical efficiency and the determinants
for rainy and dry seasons
4
Methodology
• The one-step stochastic production frontier
(SPF) (FRONT4.1 Australia).
• Data from the village San Juan de la Cruz,
Morazán-El Salvador
– 26 farmers in the rainy season of 2009
– 22 farmers in the dry season of 2010
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Table 1. Descriptive statistics of output, inputs, and
socioeconomic variables in San Juan de la Cruz.
Item
Rainy season (N=26)
Daily milk (L)
Cows in lactation (n)
Total cows (n)
Milk/cow/day (L)
Family labor
Hired labor
Land (Ha)
Improved pasture (Ha)
Dry season (N=22)
Daily milk (L)
Cows in lactation (n)
Total cows (n)
Milk/cow/day (L)
Family labor
Hired labor
Feed value $/month
concentrate kg/month
Mean
45.3
9.3
21.6
4.9
.5
0.25
13.4
3.1
46.3
7.8
20.7
6.2
0.59
0.64
705.5
1242.2
SD
Min
Max
dry season:
37.9
7.5 In
157.5
6.9 village
2
30.0 a lower daily gross
- The
had
15.8
4
64.0
milk
production
(-159L)
1.9
2.9
11
- Less
of lactating cows (-69)
0.4 number
0
1.5
0.0
1.0
-0.38
Less number
of farmers milking (-4).
11.42
2.8
42.5
4.6
0.0
21.0
Input & output:
42.8
7.7
153.0
The
6.8 input
1.0 were
30.0extrapolated to 6
17.3
3.0
75.0
months
equivalent
2.3 milk
2.5 or milk
10.6 product sold for
Farm
0.43
0
1.0
months
0.56
0.0
2.0
542.8 125.6 2136.6
1279.9 181.4 5080.2
6
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Table 2. Production frontier estimates.
Rainy season
N=26
Coefficient
SE
-0.451***
0.146
0.947**
0.426
0.829
0.729
0.111
0.351
Variable
Frontier
Constant
Total cows
Labor
Farm land (Ha)/forage ($)1
Inefficient model
0.128
Constant
-0.187
Improved pasture (Ha)
Silage
Straw
-0.982**
Milk/cow/day (L)
0.158
Farm size (cows)
0.348***
Family labor ratio
0.623***
Age
-0.721
Education (years)
0.355**
Selling milk
-0.227**
Processing milk
-0.282**
Selling out
0.417***
σ2
0.674***
γ
-0.233
Log likelihood
0.462
0.936
0.521
0.677
0.119
0.232
0.602
0.146
0.102
0.129
0.100
0.104
Dry season
N=22
Coefficient
-0.346
-0.267**
0.392**
0.550**
SE
0.408
0.146
0.218
0.313
0.935*
0.558
0.434*
0.495*
-0.183
0.280
0.330
0.394
-0.962***
0.706***
-0.187
0.720*
0.206*
-0.457***
0.314
0.773***
-0.192
0.138
0.232
0.833
0.509
0.149
0.112
0.994
0.286
*10% level of significance; **5% level of significance; ***1% level of significance
1 Farm land account for rainy season and forage for dry season
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Table 3. Technical efficiency (TE)
in rainy and dry seasons.
TE interval %
0-49
50-59
60-69
70-79
80-89
90-100
average
•
Farm (n)
Rainy
Dry
season
season
7
2
1
•
6
2
5
2 •
4
2
3
14
65%
84%
Efficient vrs. Inefficient
dry
Dry season:
season:
-Milk
- Totalper
cow
cow-day
32 & 16.5
7L and 4.6L
-Monthly
- Labor 1.4income
& 1.1 US$1301 & US$270
-Monthly
- Feed US$income-cow
1081.6 & US$461
US$104.1 & US$45
rainy
- Milk
season:
production 82.4 L & 24.2L
Rainy
-Milkseason:
per cow-day 6.9L & 3.1L
-Cows
- Total per
cowhectare
38 & 11.8
2 cows & 1.7cows
-Monthly
- Labor 1 &
income
0.6 US$1513 & US$195
-Income/cow/month
- Farm land 24 ha & 7.8
US$ 81 & US$35
- Milk production 97 L & 13.8 L
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Discussion
• The DPCS farmers from San Juan de la Cruz
seems to intentionally have a higher calving
rate for rainy season and a lower in dry season
(total cows was 0.95 and -0.27 in rainy and dry
season; p < .05).
• The higher TE in dry season shows DPCS
farmers ability to upgrade farm operation
efficiency.
• The best efficient farms in the rainy and the
dry seasons are the benchmark farms.
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Conclusions
• The total cows input had positive effect on
gross milk sell for rainy season. In dry season,
total cows, labor, and feed value were
significant and positive effect except for total
cows which had a negative sign effect on
production.
• DPCS TE was on average 65 and 84% in rainy
and dry seasons, thus efficiency could be
improved by 35 and 16%, respectively.
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Thank for your attention
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