Technical efficiency of poultry farms in Vietnam non-parametric and parametric approaches

Abstract

This study attempts to estimate the technical efficiency as well as determine the factorial effects of technical efficiency level of Vietnam poultry farms under semiindustrial system and traditional system. Then, this study employs a two-stage analysis with a household-level dataset in whole country. In particular, the first stage estimates technical efficiency level of poultry farms under both systems through non-parametric and parametric approaches, which were represented by Data Envelopment Analysis and Stochastic Frontier Analysis, respectively. In the second stage, sources of efficiency will be determined by Tobit regression and least square regression with householdspecific characteristics which represent for human capital in qualitative dimension. A sample of 3,356 households in VHLSS 2010 is utilized to analyze the broiler poultry production in Vietnam, wherein 820 poultry farms under semi-industrial system and 2,536 poultry farms under traditional system. The results from the first stage show that the average technical efficiency which was obtained from SFM is higher than that in DEA; and the TE scores in SFA exhibit the variability lower than TE scores in DEA. Moreover, from the analysis in the second stage, it is can be stated that education level of farmer has significantly effects on the TE differential among poultry farms in the positive way. Finally, the results also show that TE scores of poultry farms under both systems located in the Southeast are higher than other agro-ecological regions.