Factor productivity in industrial dairy farms in Shahriar Township

This study aims to measure total factor productivity by considering two new approaches in industrial dairy farms in Shahriar Township. The necessary data were collected through completion of questionnaire from 51 dairy farms by stratified random sampling method in the year 2009. The results showed that average gross income and total production cost were less in small and medium farms as compared to large farms. The average real and apparent total factor productivity index was 1. 082 and 1. 246 for whole studied dairy farms، respectively. Existing difference is part of gross income of dairy farms، which is not considered as a profit by cow-keepers، while، this amount is an intangible cost. The results also showed that average milk yield increases with increasing herd size. Meanwhile، there was not positive and significant relationship between herd size with real and apparent total factor productivity indices (p>0. 05).