Change in the production efficiency of European specialized milk farming

Abstract

Th e aim of the article is to identify the key structural, yield and economic determinants of the change in regional effi ciency of specialized milk farms over the period 2007 to 2011. Th e following quantitative methods were applied on the regional FADN data (panel data of 100 regions): the Malmquist productivity index, the Welsh two-sample t-test, and the linear regression analysis. Th e article put emphasis on the investment activity and investment subsidies allocated in the sample of regions. Th e results reveal that regions with a positive change in the production effi ciency have a signifi cantly higher average milk yield, maize yield, long-term debt ratio, income level, and investment activity than the regions with a negative change in the production effi ciency. On the contrary, investment subsidies per livestock unit do not signifi cantly diff er between the progressive and other regions. Investment subsidies are slightly higher in the regions with a negative change in the production effi ciency and continuously help them to mitigate the drop in technical effi ciency.

Farms Productivity Developments Based on Malmquist Production Indices

“…Differences between positive and negative groups were very small. Contrary to our results,Špička and Machek (2015) found significantly lower Labour Input per hectare in group of successful dairy farms connected to the lower livestock intensity.Most authors describe significant impact of UtilizedLand Unit (Balcombe et al, 2005; Nieberg and Offermann, 2008; Špička, 2014; Čechura et al, 2015; Madau, 2015; Špička and Machek, 2015), Labour Input (Balcombe et al, 2005; Latruffe et al, 2008; Čechura et al, 2015; Špička and Machek, 2015), Total Livestock Unit (Špička and Machek, 2015), Crop and Livestock Production (Boudný et al, 2011; Špička, 2014; Čechura et al, 2015; Špička and Machek, 2015), Total Costs -Specific and Other Material (Boudný et al, 2011; Čechura et al, 2015; Špička and Machek, 2015), and higher income per AWU and per hectare (Špička, 2014). Total current subsidies per hectare or Farm Net Value Added per hectare did not significantly differ (Boudný et al, 2011; Špička, 2014).…”

“…Farms can be separated into more homogenic sub-samples according to the specialization, environment conditions and used technologies (Boudný et al, 2011). Development of farm productivity over a selected period can be evaluated by the Malquist index (Špička and Machek, 2015 and many others). The significant economic measures of production intensity in mixed type of farming are usually crop output per hectare, livestock output per livestock unit, productivity of energy and capital (Špička, 2014).…”

Dairy farm profit according to the herd size, milk yield, and number of cows per worker

“…At the same time, advances in the genetics, nutrition, and herd management have resulted in the increased milk yields and an associated reduction in the numbers of farms and cows in many countries (von Keyserlingk et al 2013). The improvement of agricultural productivity is a consequence of a more efficient use of the production factors (Špička and Machek 2015). Many dairy farmers have adopted new technologies to boost the dairy farm profitability and have changed the overall management of their dairy herds (Stelwagen et al 2013).…”

Improving agricultural performance for the working poverty reduction in the European Union

“…Intensifying the effect of agriculture on the reduction of working poverty, by increasing agricultural productivity, requires investing into the rural infrastructure and agricultural technology (Ravallion 2009), as well as the intensification of farming systems through yield-enhancing technologies (Diao et al 2010). According to Špička and Machek (2015), the farming intensity is a key determinant of the technical efficiency in agriculture. Moreover, measures that stimulate the diversification of production toward a higher-value agriculture are needed, making the smallholder farming more competitive and sustainable, increasing the employment opportunities in the agricultural value chains and the rural nonfarm economy de Janvry and Sadoulet 2010;WTO 2014).…”