Qual Quant (2012) 46:351–358
DOI 10.1007/s11135-010-9360-6
RESEARCH NOTE
Productivity and efficiency scores of dairy farms: the case
of Turkey
Goksel Armagan · Suleyman Nizam
Published online: 27 July 2010
© Springer Science+Business Media B.V. 2010
Abstract A greater productivity level in milk production is the best answer to the increas-
ing demand for this essential food. The main material of this study, which aims to determine
the total factor productivity (TFP) and efficiency of dairy farms, consists of 100 surveys
chosen from 1,429 registered farms of the Cattle Breeders Association of Aydin-Turkey by
means of stratified sampling in May, 2006. The TFP decreases with farm size which shows
that large farms fail to utilize their labour resource in full. In data envelopment analysis 15
farms work with an efficiency rate of 100%. The lowest efficiency rate was found to be 43%;
the highest one was 100% and the mean rate was 79%. The efforts to improve efficiency
levels should include participatory extension and coordinated research programs that aim to
increase the productivity and efficiency levels of these small farms in the long run.
Keywords Dairy farms · Efficiency · Total factor productivity · Farm scale · Turkey
1 Introduction
Turkey, the largest candidate country compared to Croatia and Former Yugoslav Republic of
Macedonia for European Union (EU) membership, is currently experiencing acute structural
problems within its agriculture sector. Livestock farming in Turkey is generally a small-
scale family farm activity, carried out in the vast majority of cases as a sideline activity by
arable farmers. According to the 2001 provisional Agricultural Census results, 67% of all
agricultural holdings were involved in mixed farming such as crop production and animal
husbandry, while 2% were specialized exclusively in animal husbandry (SIS 2001). Natural
conditions in Turkey are generally favorable for the raising of livestock, especially for grazing
animals. However, natural and economic conditions have deteriorated due to the degradation
G. Armagan (B ) · S. Nizam
Department of Agricultural Economics, Faculty of Agriculture, Adnan Menderes University,
Aydin 09100, Turkey
e-mail: garmagan@adu.edu.tr
123