Analysis of Production Efficiency of Dairy Cows of Households in Soc Trang Province of Vietnam

Background: The dairy sector encompasses a variety of products, including liquid milk, milk powders, cheese, butter, yogurt and ice cream. Several factors, such as genetics, animal breed, environmental conditions, stages of lactation, parity and nutrition, collectively influence the final composition of milk. In Vietnam and specifically in Soc Trang province, the dairy industry has seen significant growth over the years, aiding many people, particularly the ethnic minorities, in overcoming poverty. The study evaluates the efficiency of dairy cow production among farmers in Soc Trang province. Data were collected from 100 dairy households in the districts of My Xuyen, My Tu and Tran De, focusing on their income generated from this sector by the end of 2021. Methods: In addition to using secondary data, preliminary research was conducted through expert interviews, including discussions with members of the Soc Trang dairy project management board, to identify relevant factors and suitable methods for the study. For the quantitative aspect, the official research involved gathering feedback from 100 dairy farmers across three districts in Soc Trang province regarding the risks associated with dairy farming, utilizing a structured questionnaire. Result: The data envelopment analysis (DEA) results indicated that technical efficiency varied between 70% and 100%, with a technical efficiency score (TEcrs) of 0.751, suggesting that dairy farmers could enhance production efficiency by up to 24.90% through better input resource management. Inefficiencies were attributed to factors such as grass shortages during the dry season, poor management of breeding stock and inadequate family labor allocation. Additionally, factors positively correlated with technical efficiency included years of experience in dairy farming, membership in livestock cooperatives or organizations, participation in technical training and access to financing, showing statistically significance. Finally, the study emphasizes the necessity of proposing practical solutions to enhance dairy cow milk.