Received: 28-07-2021 / Accepted: 20-11-2023
This study was conducted to analyzethe determinants ofdairyfarmers’ technical efficiency in Duy Tien town, Ha Nam province by using Stochastic Frontier Analysis (SFA). Research results show that the technical efficiency of localdairy farmers reached 77.8%, ranging from 13.8% to 96.9%. To improve thetechnical efficiency, dairy farmers need to change in the input usage, such as: (i) reducing synthetic feedsand increasing green ones; (ii) paying more attention to disease prevention and treatment (i.e., veterinary cost); (iii) increasing breeding areas; (iv) moving dairy farming from residential areas to concentrated livestock areas; and, (v) scaling up the herd size to achieve the economies of scale. In addition, receiving technical support from purchasing enterprises (internal finance) and accessing banking credit (external finance) play important roles in improving technical efficiency and income of households. These are the two core activities in the agricultural value chain financing approach, howeverthis approach is still not popular in Vietnam.