Farm-level and consumption responses to improved efficiency of Tanzania’s informal dairy value chain
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Twine, E.E. and Katjiuongua, H. 2015. Farm-level and consumption responses to improved efficiency of Tanzania’s informal dairy value chain. Paper presented at the Agricultural and Applied Economics Association and Western Agricultural Economics Association Annual Meeting, San Francisco, California, 26-28 July 2015
Permanent link to this item: http://hdl.handle.net/10568/66128
Internet URL: http://purl.umn.edu/200329
The study uses a partial equilibrium model to determine the benefits that would accrue to smallholder dairy producers and consumers from improved efficiency of Tanzania’s informal dairy value chain. Two sources of technical efficiency are analyzed, namely, cost efficiency and scale efficiency. Using aggregate time series data to simulate the model, the study finds that improvement in scale efficiency offers relatively large benefits to both producers and consumers. However, benefits from improvement in cost efficiency are relatively small and disproportionate. It is concluded that improving technical efficiency in general would lead to significant benefits for producers and consumers.