DETERMINANTS OF TECHNICAL EFFICIENCY AMONG DAIRY FARMS IN TUNISIA.

This study examines the determining factors of the technical efficiency of dairy farms in Tunisia. A stochastic production frontier and a two-limit Tobit models were used to analyze technical efficiency (TE) for a sample of 108 Tunisian cattle breeders. The empirical results suggest that TE ranges from 45% to 96% and that a purebred herd composition and a favorable location for breeding system including pasture and grazed grass lead to greater efficiency. In addition, we found that dairy farmers could increase their performance by joining a professional organization. The implications of these finding for development strategies of the Tunisian dairy sector were examined. [ABSTRACT FROM AUTHOR]