Measuring the efficiency in the production of milk
To produce milk, we use different indicators to compare the efficiency between one farm and another: litres/cow or litres/hectare for example. In the Congress of Technology AACREA 2010 and in the study that we did in conjunction with the UCEMA introduced the concept of the "technical efficiency" (ET) as an indicator of the efficiency with which a company uses resources with that account. On the basis of a production function of the type of Cobb-Douglas and relating them to the actual production of each dairy farm with that achieved in equal availability of resources, the drums of the top 10% of the sample (which we call Potential output):
ET (%) = 100 x Actual Production/Potential Production
The majority of individuals looking for a level of efficiency suitable for your situation, and some manage to maximizing the production and the other minimizing the media. Interesting is the concept of level of input use, and in the graph we observe that while the company making a greater use of inputs results in greater milk production, company B, despite a lower production of milk, achieves a higher ET for their level of input use.
To see the full work (The gap productive), which is located in the Documents menu from our blog click the following link :
https://dairylando.com/wp-content/uploads/2015/05/la-brecha-productiva-entre-los-tambos-crea.pdf