Presentation by Gelan, A. and Muriithi, B. for the 5th All Africa Conference on Animal Agriculture and the 18th Annual Meeting of the Ethiopian Society of Animal Production (ESAP), Addis Ababa, October 25-28, 2010.

1. TECHNICAL EFFICIENCY AND RETURNS TO SCALE IN DAIRY PRODUCTION Ayele Gelan and Beatrice Muriithi Market Opportunities Theme, ILRI, Nairobi, Kenya The 5 th All Africa Conference on Animal Agriculture, held at United Nation Conference Centre, Addis Ababa, Ethiopia October 25-28, 2010

8. DATA INPUTS Summary statistics of the variables in the study ($) Descriptions Mean Median Max SD Outputs: Milk sales 516.6 287.0 7200.4 828.8 Milk consumed values 397.1 233.7 5775.3 569.8 Animal sale values 374.3 104.3 8757.1 969.4 Manure sales 0.2 0.0 26.1 1.7 Inputs: Cattle housing cost 16.6 0.0 2272.7 136.6 Hired labor 124.4 0.0 5114.4 446.9 Family labor 312.7 257.0 1778.3 237.5 Fodder cost 14.0 0.0 1944.5 112.4 Concentrate cost 64.4 0.0 3927.3 252.6 Water cost 12.2 0.0 951.4 70.2 Animal heath cost 133.3 76.9 2090.4 214.2 Extension services cost 7.3 0.0 678.0 40.9 Breeding cost 13.4 0.0 727.3 54.7

10. DAIRY FARMS AND THEIR TECHNICAL EFFICIENCY SCORES Constant Returns to Scale (CRS) Variable Returns Scale (VRS) <0.25 0.25-0.50 0.50-0.75 0.75-0.90 0.90-0.99 1 <0.25 0.25-0.50 0.50-0.75 0.75-0.90 0.90-0.99 1 Uganda 57 25 6 2 1 11 44 18 18 7 2 13 Bbaale 15 6 0 0 0 1 11 3 5 0 1 2 Luwero 7 3 1 1 0 0 5 4 2 1 0 0 Masaka 2 4 2 1 0 3 2 3 2 2 0 3 Kakooge 23 5 0 0 1 6 17 4 6 1 0 7 Mukono 8 4 3 0 0 0 7 3 3 1 1 0 Bumanya 2 3 0 0 0 1 2 1 0 2 0 1 Rwanda 26 15 10 5 2 7 18 15 12 6 2 12 Bwisanga 2 1 1 1 0 3 2 1 1 1 0 3 Kabarore 6 5 3 1 1 1 6 2 3 1 1 4 Mbare 17 8 6 3 1 3 9 11 8 4 1 5 Nyagihanga 1 1 0 0 0 0 1 1 0 0 0 0 Kenya 77 63 27 8 2 27 57 60 38 5 3 41 Kabiyet 20 13 4 1 0 1 14 13 5 0 1 6 Metkei 22 17 2 0 0 1 17 20 3 0 0 2 Siongiro 15 9 7 0 1 1 12 9 10 0 0 2 Siaya 7 3 2 1 0 4 6 1 2 1 0 7 Soy 6 6 1 1 1 2 3 6 3 1 1 3 Kandara 3 8 4 4 0 12 2 6 7 1 1 14 Kaptumo 4 7 7 1 0 6 3 5 8 2 0 7 Total 160 103 43 15 5 45 119 93 68 18 7 66

15. ECONOMETRIC RESULTS Descriptive statistics of explanatory variables Mean SD Min Max Median Age of household head (years) (AGEHH) 50.2 15.1 18 100 49 Farming exp. of hh head (yrs) (FAEXHH) 24.7 15.8 1 75 21.5 Family size (adult equivalent) (FAMILY) 4.9 2.1 0.82 14.25 4.6 Edu. level of hh head (yrs) (EDUCATIONHH) 6.8 4.6 0 25 7 Farm size (acres) (FARM) 43.9 134.3 0.25 960 6 Number of cattle (TLU) 15.9 26.7 0.7 277.2 7.85 Ratio of improved breeds (RATIO_IMBRDS) 0.5 0.5 0 1 0.6 Off-farm income (OFF-FARM) Yes: 192 (1) No: 179 (0) Member in a dairy coop. (DAIRYCOOP) Yes: 53 (1) No: 318 (0) Practice zero grazing (ZERO_GRAZING) Yes: 37 (1) No:334 (0) Conserve feed (FEED_CONSERVE) Yes: 69 (1) No: 302 (0) Grow fodder legumes (LEGUMES) Yes: 20 (1) No: 351 (0) Milk buyer dummies Individual customers: 97; Private traders: 117; Dairy coop.: 45; Chilling plant: 29 Country dummies Uganda: 102; Rwanda: 65; Kenya: 204 Recommendation domains HH: 155; HL: 81; LH: 33 LL:102