Determination of technical efficiency of dairy farms using herd management systems

The software, known as herd management systems, provides the opportunity to record and measure the physiological, behavioral, and production data of dairy cattle while consolidating various data streams to facilitate operational analysis. Determining technical efficiency is a significant indicator used for evaluating the performance of dairy farms. In this study, the technical efficiency of dairy farms managing data using computer-assisted herd management systems in the dairy sector in Konya province during the 2019-2020 production period was evaluated through stochastic frontier analysis and artificial neural networks. Two separate sets of variable data were utilized in the study. The first dataset included recorded data from the herd management system. In the second dataset, variables were identified based on the literature. A t-test was conducted to examine whether there is a significant difference between the means of two models (t = -1.161, p < .255), and it was determined that there is no significant difference. Consequently, data obtained from herd management systems serve as a crucial tool for assessing the technical efficiency of dairy farms. The results indicated that factors such as receiving livestock-related education and operating disease-free farms reduce both technical and economic inefficiencies. Giving importance to the education of the producer and the support for disease-free farm operations will be beneficial in enhancing efficiency. Artificial neural networks (ANNs) analyze various factors influencing business performance and aid in calculating the technical efficiency levels of enterprises. However, a limitation arises from the inability to include factors causing inefficiencies related to the enterprise and its owners in the analysis. While TE calculated using the maximum formula with ANN was 89.30%, the TE value obtained through Stochastic Frontier Analysis (SSA) was 92.04%. While the TE determined by ANN (maximum) is 89.30%, the TE value calculated through Stochastic Frontier Analysis (SSA) is obtained as 92.04%. The TE (average of 10%) efficiency score is determined as 91.10%, closely approximating the value determined by SSA. ANNs can serve as a tool for calculating farms' technical efficiency levels and could play a crucial role in evaluating business performance.