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19.749 65 18.425 68 19.382 66

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1,760 5 1.089 4 1.073 4 1,174 I 4I

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7,172.80

29,509.77

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36,682.57 100

28.467.03 77.60

8.215.54 22.40

100

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26,603.48 83.08

5,418.58 16.92

32,022.06

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f[J;4-1 : ~_f[ G. S. Maddala, Econometrics, McGraw-Hill Company. 1977.P. 265-268.

( 25)

-176-

0.656

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2.134.44- 0.134I

2,088.47- 0.689

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20.811.07, 109,718,40 0.189

24.071.19 83.463.641

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15.939.11' 73,143.53 0.218

43,675.07 69.115.87 0.632

1.838***- 285.31:!

1.210 1.439.16

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1.113 1.782.11<

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0.049

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15. Borts, George. H., "The Estimation of Rail Cost Function",

Econometrica, 28(1): 108-131, January 1960.

16. De Boer, A. J. "A Further Report on the Taiwan Livestock

industry: General Policy, Conclusions and Future Research

Needs", ••~~*:¥flj ,19: 116-129, *~:k!'¥.~~5Em,~m~+

li:¥~JjQ

17. Hopkin, John A., "Economies of size in the Cattle-Feeding

Industry of California", J. F. E., 40: 417-429, 1958.

18. Johnston, J. Statisical Cost Analysis, New York: Me Graw-Hill,

1960.

19. Maddala, G. S. Econometrics, PP. 265-268, 1977(~~t]R~i!Jjjj)20. Matulich, Scottc., "Efficiencies in Large-Scale Dairying: Incen­

tives for Future Structural Change" ,A. J A. E., 60: 642-647,

Nov, 1978.

21. Tomek, William G. and Kenneth L. Robinson., Agricultural

Product Prices, Cornell University Press, 1972.

22. Tweeten, Luther G. and James S. Plaxico, "Long-Run Outlook

( 33 )

-184-

for Agricultural Adjustments Based on National Growth", J. F.E, 46(1): 39-55, Feb. 1964.

( 34 )

-185-

An Analysis of Production Structures and

Costs of Dairy Farms in Taiwan

Yi-chung Kuo*

Summary

The recent trend of Taiwan's dairy production shows that

since 1977 the number of dairy farms is decreasing while the

average scale per farm is enlarging. It is thus hypothesized that

the factor due to this changes is mainly that of production costs

under current price system and production environments. This

paper is intended to investigate the relationship between changes

of production structure and that of production costs for dairy farms

among different regions. Cross-sectional data of about 200 sample

farms in 1977 and 1978 served as the basis for analysis. The

average cost functions were constructed and estimated for diffe­

rent regions. The average cost elasticity with respect to output

was estimated to be around 0.2 in general. Which means that

economies of scale exist for the milk production. Among regions,

the average unit cost of milk in the northern area is the highest,

and the southern area, the lowest. Moreover, it is found that

due to enlargement of scales, the changes of inputs combination

are tending toward relatively capital using.

* Professor, Department of Agricultural Economics, National ChungHsing University

( 35 )