The effect of adoption of better farm management practices in the technical efficiency of dairy farms in Punjab,Pakistan

Pakistan dairy sector is moving toward modern technological adoptions. these adoptions will significantly affect farm efficiency,profitability and long-term sustainability of dairy sector. realizing the significance of the sector in terms of contribution to gdp,employment and importance to serve as a vehicle to alleviate poverty especially among the rural population,government also paying due attention to this sector. the goal of this study was to examine the impact of better farm management practices in the efficiency of dairy farms. for this purpose,a stochastic production function and a technical inefficiency model was used. data collected randomly by a field survey in the selected region,district toba tek singh and jhang. the results show that technical efficiency is positively related to the better management practices in the sample area. the average technical efficiency of better management practices (bmps) dairy farms was estimated about 95.27 percent while it was 87.68 percent in the case of traditional practices dairy farms. the value of γ is significantly different from one which shows that random error is playing a significant role to explain the variation in dairy production.