| This study presents a production function analysis of fresh milk production in the Highlands of Eritrea, where most dairy farmers in Eritrea are located. To ensure representative production functions, this region was divided into three relatively homogenous study areas, namely Central Zone, Mendefera and Dekemhare. Most data for the study were collected in a survey of 120 respondents using a structured questionnaire. To obviate the problem of multicollinearity among explainatory variables, ridge regression was used to estimate milk production functions for each study area. Production elasticities of variable inputs, marginal products (MPx), values of marginal products (VMPx), marginal rates of input substitution (MRS) and least-cost combinations of... |
