Efficiency of Smallholder Chicken Farms in Northwestern Vietnam: A Data Envelopment Analysis

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Efficiency of Smallholder Chicken Farms in Northwestern Vietnam: A Data Envelopment Analysis

ABSTRACT : This study aims to examine production efficiency of smallholder chicken farms in North-western provinces of Vietnam. Using input-oriented data envelopment analysis with data from Vietnam household living standard survey, we estimate and analyze overall, technical and scale efficiency of chicken farms with four input and two outputs. We also attempt to identify determinants of farm efficiency by running a Tobit regression on selected smallholder characteristics. We find that average efficiency of chicken farms is relatively low and thus farm efficiency can be improved by adopting best practices and technology. As scale efficiency is 90% on average, chicken farms cannot increase much efficiency through up-scaling. Characteristics of smallholder raisers appear insignificant in explaining farm efficiency, except for total land possession and vocational training of household head.

KEYWORDS – Chicken, Data envelopment analysis, Production efficiency, Smallholder farms, Vietnam

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