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An Analysis of Production Structures andCosts of Dairy Farms in Taiwan
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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
I_________ J_2,642.84
26,603.48 83.08
5,418.58 16.92
32,022.06
29,379.22
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1j5 1$] 4if -0 fT ~!<: ~
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12.62
1.05
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14.33
2.80
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f,j: iji l& ~ 36,772 36.362 36.851 37,283 33,730 36.683I
4ij:-0fTJf<* 14.59 I 11.99 10.48 11.23 13.07 11.53I
i'J-0ff1&1.it 14.57 I 14.45 14.33 14.37 14.08 14.33
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( 21 )
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j j+b7YXI+~CiDj+~diDj S + u (1)
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( 23 )
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DI:~~*~~~m~~ftzd~~~
D. _ f 1 '&~pJl1n'~ j (l[l- {O'M~P~JI~~ j (l[ j =2,3,4,5
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D.S= 5S'M~p"~~ j (l[ . =2 3 4 5l l 0 1§'~p~I}~~ j [,![ J ",
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l:.&.~tJ!f15U8~If71- ' f,';j~If:(EiJlIJ!£~~~ §~~r~,z.,f§IiII:t'U\t(multico
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AC= (b, + b, +d j ) + (a + blX 1 +bnX2+ baXa+b, Y +b-YX1 ) /S ·.. · (3)
1:~ffili~~UMi~i}'I3;!IUlfi8W-g~I1Utlrj~7I-' jIUIfl:~m~:ffz1J~ 0 ~tE.
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( 24 )
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1Ggef.iJM~ffIj (X 1) ftZP;jt;JJjj(;*®~.ffii~'s;J,{9='X 1 B9(f,1k 2.04 5C.~A+~.mMf.iJM~•••~ZP;~nlt*~••~,mJEt~~.A+A.&A+~.~Il~~~~'A+A.~~•• -3.965C (-5.998+2.04) ;J,{jf;mAM~~
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f[J;4-1 : ~_f[ G. S. Maddala, Econometrics, McGraw-Hill Company. 1977.P. 265-268.
( 25)
-176-
0.656
0.742
0.78'- 2.609*
2.134.44- 0.134I
2,088.47- 0.689
1.989.96 - 1.274
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1.988.07I
373.160.8
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41.666.00' 74.385.14 0.560!
20.811.07, 109,718,40 0.189
24.071.19 83.463.641
- 0.288
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<
3.629*
0.049
0.047
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2.587; -2.319**
1.968 -2.412**
1.725 -1.491
1.630 -3.656*
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- 5.998:
- 4.746,
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0.093 ,0.060'
i0.101,
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2.0401
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-10.152: 1.930: -5.261* -226.508.21 81,842.55- 2.768*,
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F(l4/200)=15.433* SEE=4,146
R2=0.9271 R2=0.9220F(14/200)=I68.68*SEE=175.862.18
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15. Borts, George. H., "The Estimation of Rail Cost Function",
Econometrica, 28(1): 108-131, January 1960.
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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.
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tives for Future Structural Change" ,A. J A. E., 60: 642-647,
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( 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
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