An Analysis of the Factors Affecting Dairy Cow Production in the South East of Vretnam

This paper examines the factors affecting dairy production in Ho Chi Minh and Binh Duong provinces in 2003, based on original data collected from 80 dairy farm households and 40 non-dairy farm households. Descriptive statistics and production function analysis are the prin-cipal methods used in the study. The findings indicate that dairy farmers in the region have been faced wlth limited quality of veterinary and breeding services, and a lack of capital and technical knowledge. In addition, herd management is poor, which results in farmers (especially beginners) having poor access to good cow breeds. Environmental pollution caused by dairy farms has also impacted negatively on the expansion of cow raising. The results from regression analyses of linear production func-tions indicate that milk yields of dairy households in the study areas are affected significantly and positively by complete feed, by-products from the brewery and cassava-processing indus-tries, and experience of the household head. There is a significant difference between Ho Chi Minh and Binh Duong in the estimated variances of the error term and also in the estimated coefficients of the complete feed variable. Using the log-linear functional form, we get a similar conclusion but the significance levels of the estimated coefficients are found to be different from those in the linear one