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Profit efficiency among smallholders milk producers in Mizoram state

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Lalrinsangpuii, R. Malhotra, and Laishram Priscilla

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Abstract

Indian Journal of Economics and Development
Year : 2016, Volume : 12, Issue : 2
First page : ( 347) Last page : ( 352)
Print ISSN : 2277-5412. Online ISSN : 2322-0430.
Article DOI : 10.5958/2322-0430.2016.00146.3

Profit Efficiency among Smallholders Milk Producers in Mizoram State

Lalrinsangpuii*, Malhotra R, Priscilla Laishram
Division of Dairy Economics, Statistics & Management, National Dairy Research Institute, Karnal-132001

*Corresponding author’s email: mapuii_bh@yahoo.com

JEL Codes: C14, C18, D21, Q12, Q18

Online published on 13 June, 2016.

Abstract
This study provided a direct measure of production efficiency of the smallholder milk producers in Mizoram using a stochastic profit frontier and inefficiency model. The primary data were collected from 180 sample dairy farmers in the three districts of Mizoram viz., Aizawl, Kolasib and Champhai districts during 2014–15 using structured interview schedule. The result showed that profit efficiencies of the sampled farmers varied widely between 21 and 89 per cent with a mean of 53 per cent suggesting that an estimated 47 per cent of the profit is lost due to a combination of both technical and allocative inefficiencies. This study further observed that level of education, experience, size of the farm and number of animals influenced profit efficiency positively while profit efficiency decreased with age and non-farm income. Results found a considerable capacity to improve milk profitability in the state.