The objective of this study is to examine the impact of digital transformation on the economic performance of dairy farms. Using survey data from 251 dairy farms in China, we apply stochastic frontier analysis (SFA) and regression models to assess how digital transformation, quantified by digital investments, affects farm performance. The results show that, in general, digital transformation significantly improves technical efficiency, with a 1% increase in digital investment leading to an efficiency gain of 0.029%. After addressing potential endogeneity and conducting robustness checks, the p...