Assessing the linkage between dairy productivity growth and climatic variability: The case of New York State

Despite the importance of maintaining a high productivity level for the future viability of the dairy sector in the face of changing climate, very few studies have investigated how climatic conditions impact total factor productivity (TFP) growth in dairy farming. In order to bridge this gap in lite...

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Main Authors: Ranjan Alok, Mukherjee Deep
Format: Article
Language:English
Published: De Gruyter 2018-12-01
Series:Open Agriculture
Subjects:
Online Access:https://doi.org/10.1515/opag-2018-0069
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author Ranjan Alok
Mukherjee Deep
author_facet Ranjan Alok
Mukherjee Deep
author_sort Ranjan Alok
collection DOAJ
description Despite the importance of maintaining a high productivity level for the future viability of the dairy sector in the face of changing climate, very few studies have investigated how climatic conditions impact total factor productivity (TFP) growth in dairy farming. In order to bridge this gap in literature, we conducted a TFP decomposition exercise using dairy farm summary records from the New York state which is one of the historically major milk producing regions of the United States. Stochastic frontier models with air temperature, incorporated as an environmental input in an otherwise conventional dairy production function, are estimated using an unbalanced panel of constructed ‘average’ dairy farms of various size-classes covering a sufficiently long time-period. Change in TFP is then decomposed into various components namely technological change, technical efficiency change, and scale efficiency change. Further analysis also establishes that the introduction of average air temperature in the stochastic production frontier soaks what otherwise could be attributed to inefficiency and/or model residual.
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spelling doaj.art-8df9568d73414c8fa3908c60b725d4932022-12-21T22:32:58ZengDe GruyterOpen Agriculture2391-95312018-12-013165866910.1515/opag-2018-0069opag-2018-0069Assessing the linkage between dairy productivity growth and climatic variability: The case of New York StateRanjan Alok0Mukherjee Deep1University of Illinois, Urbana- Champaign,Champaign, IL, USADepartment of Economic Sciences, Indian Institute of Technology Kanpur,Kanpur, UP, IndiaDespite the importance of maintaining a high productivity level for the future viability of the dairy sector in the face of changing climate, very few studies have investigated how climatic conditions impact total factor productivity (TFP) growth in dairy farming. In order to bridge this gap in literature, we conducted a TFP decomposition exercise using dairy farm summary records from the New York state which is one of the historically major milk producing regions of the United States. Stochastic frontier models with air temperature, incorporated as an environmental input in an otherwise conventional dairy production function, are estimated using an unbalanced panel of constructed ‘average’ dairy farms of various size-classes covering a sufficiently long time-period. Change in TFP is then decomposed into various components namely technological change, technical efficiency change, and scale efficiency change. Further analysis also establishes that the introduction of average air temperature in the stochastic production frontier soaks what otherwise could be attributed to inefficiency and/or model residual.https://doi.org/10.1515/opag-2018-0069dairystochastic frontiertechnical efficiencytotal factor productivity
spellingShingle Ranjan Alok
Mukherjee Deep
Assessing the linkage between dairy productivity growth and climatic variability: The case of New York State
Open Agriculture
dairy
stochastic frontier
technical efficiency
total factor productivity
title Assessing the linkage between dairy productivity growth and climatic variability: The case of New York State
title_full Assessing the linkage between dairy productivity growth and climatic variability: The case of New York State
title_fullStr Assessing the linkage between dairy productivity growth and climatic variability: The case of New York State
title_full_unstemmed Assessing the linkage between dairy productivity growth and climatic variability: The case of New York State
title_short Assessing the linkage between dairy productivity growth and climatic variability: The case of New York State
title_sort assessing the linkage between dairy productivity growth and climatic variability the case of new york state
topic dairy
stochastic frontier
technical efficiency
total factor productivity
url https://doi.org/10.1515/opag-2018-0069
work_keys_str_mv AT ranjanalok assessingthelinkagebetweendairyproductivitygrowthandclimaticvariabilitythecaseofnewyorkstate
AT mukherjeedeep assessingthelinkagebetweendairyproductivitygrowthandclimaticvariabilitythecaseofnewyorkstate