Efficiency of traditional dairy farms in Mazandaran province: implications and recommendations for improvement (fuzzy data envelopment analysis)

Traditional dairy farm can be one of the main entities of milk production in the country. Regarding livestock feed limitations and the rise in price and shortage of necessary inputs in Iran, the policy of boosting the efficiency of stock units, could be one of the good policies to reduce the costs, produces more benefits and increases the competitiveness among the units. Taking in to account the importance of this issue, this study attempted to assess the efficiency of Mazandaran traditional dairy farms, using fuzzy data envelopment analysis. The data were collected using interviews and 64 questionnaires with random sampling in 2014. The data indicates the difference of dairy farmer's efficiency for different amounts of α in 3 categories. The results indicated that the efficiency of the second group (from 6 to 10 cattle) is more than the other two groups and the efficiency of the first dairy farm (less than 6 cattle) is less than others and the efficiency of the third group (more than 10 cattle) is average. These results indicate that more efficient use of available inputs in the second group in comparison with the other two groups. Taking into account that financial problems for using inputs and low price of milk are main reasons for non-efficiency of milk production in these farms, allocating subsidies to produced milk and guaranteed purchase of milk is suggested to the planners.