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Total factor productivity in dairy buffalo milk production in Nueva Ecija, Philippines
Thesis Abstract:
This study analyzed the Total Factor Productivity in dairy buffalo milk production in Nueva Ecija, Philippines. Specifically, it aimed to (1) identify the factors that affect dairy buffalo milk production; (2) analyze technological change; (3) analyze technical efficiency; (4) analyze scale efficiency; and (5) describe the likely environmental effects of productivity growth in dairy buffalo milk production. Milk production and waste management data for the years 2017 and 2020 were gathered from the 44 randomly selected dairy buffalo milk producers in Nueva Ecija, thereby creating panel data. The parametric stochastic frontier analysis was applied to a Cobb-Douglas production function with an inefficiency effects model. It was found that the statistically significant factors of milk production were cows, forage area, and dairy feeds. Cleaning frequency was the sole predictor that explained the variability among the respondents' technical inefficiency. The farmer's mean technical efficiency in 2017 and 2020 were 0.65 and 0.64, respectively, indicating that Technical Efficiency Change is null. With Scale Efficiency Change at [- 0.52]% and Technological Progress at 48.60%, total TFP change is 48.08% between 2017 and 2020. Increasing the number of cows and cleaning frequency can both stimulate productivity growth and threaten the environment.