Evaluation the trend and direction of technical change in industrial dairy farms in Iran

Gh Dashti
BACKGROUND: The use of modern technology in production units is one of the main factors of improving input productivity in livestock sub-sector. OBJECTIVES: So the main objective of this research is analyzing the trend and technical change biases in Iran's livestock using cost duality theory. METODS: The approach given in the duality theory is found useful in estimating the structure of input demand under changing input prices and technology conditions. Applying SURE method, a Translog cost
more » ... a Translog cost function with cost share equations estimated using panel data from 24 provinces of Iran for the period 1980-2000. RESULTS: The results showed that the rate of technical change was about-0.312 percent during the studied period, which means that the rate of cost changes of production units, has been decreased. In addition, technical change in livestock industry was feed-using, labor-saving and energy-saving biases. COUNCLOSIONS: The finding does indicate, Increasing original cows and using artificial insemination as symbols of technical change, causes decrease in production cost and improve profitability of milk production.