Measurement of Types of Scale Efficiencies in Milk Industry: Case Study of Kerman Province

Establishment and development of industrial husbandry in Kerman province have directed a great deal of provincial capitals toward this industry in recent years. Therefore, it is a must that efficiency of these production units is studied so that the situation of capital movement toward such units could be duly analyzed in the province. A helpful criterion to be employed is the analysis of production units’ efficiency. This article tries to study the technical, allocation and economic efficiencies of producers of cow milk and sheep milk in Kerman province with the aim of measuring the efficiency of this activity in the province. This study uses “Data Envelopment Analysis” method. The data was collected from 140 cow milk producers and 140 sheep milk producers. According to the results, the average technical, allocation and economic efficiencies for sheep milk producers were 57.6, 42.7 and 24.52 respectively while those of cow milk producers were 46.7, 39.78 and 18.58 respectively.