This paper investigated how managerial capacity aspects influence efficiency of dairy farms in Sweden. Based on data development analysis, Tobit and logistic regressions, several managerial capacity aspects were found to influence long and short run input efficiency scores, but to influence output efficiency less. Examples of important aspects are internal locus of control, idea of profitability, profitability perception and participation in study circles. Personal aspects of the farmer were found more important for efficiency than management systems aspects. Based on this, a way of supporting dairy farms to become more profitable is to organize educational and discussion clubs where the farmers learn from each other and from professional dairy farm advisors. Further, actions to strengthen the farmers' locus of control, instrumental and intrinsic values might be worthwhile.
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