Technical efficiency and economic performance of dairy production in the EU: the role of size

Kroupová, Zdeňka Žáková; Trnková, Gabriela

doi:10.5513/jcea01/21.4.2917

Cited by 4 publications

(4 citation statements)

References 23 publications

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“…Turning our attention to other highly specialised farming sectors such as dairy, the findings underline that the effect of subsidies on technical efficiency may be positive, null, or negative, depending on the country and the form in which decoupled subsides are paid following the 2003 CAP reforms that reduced the impact that subsidies have on technical efficiency (Latruffe et al, 2017;Nikolov and Anastasova-Chopeva, 2017). In general, the lowest levels of technical efficiency can be found in farms which receive the highest proportion of their gross income from subsidies (Žáková Kroupová and Trnková, 2020).…”

Section: Introductionmentioning

confidence: 94%

The role of CAP subsidies in all European Union member states: an analysis of technical inefficiency

Galluzzo

2023

BJAEM

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The purpose of this research was to assess the impact of CAP payments made to farms included in the European FADN dataset between 2004 and 2019 and, considering this financial aid as an environmental variable, identify patterns of inefficiency in EU farming. The study has adopted a twofold quantitative approach, applying both two-stage DEA and Multidirectional Efficiency Analysis. The results reveal significant imbalances between EU member states over the period of investigation, and underline the specific effect that total CAP disbursed subsidies and second pillar CAP support have on technical inefficiency.

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Section: Introductionmentioning

confidence: 94%

The role of CAP subsidies in all European Union member states: an analysis of technical inefficiency

Galluzzo

2023

BJAEM

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“…A wealth of literature has evaluated the factors affecting the TE of EU dairy farming (e.g., Madau et al, 2017;Čechura et al, 2021;Kroupová Žáková and Trnková, 2020). Most of the TE comparisons between organic and conventional farms utilize data about traditional inputs (land, materials) and outputs (milk, grain, etc.)…”

Section: Introductionmentioning

confidence: 99%

Are Organic Farms Less Efficient? The Case of Estonian Dairy Farms

Fertő,

Bakucs,

Viira

et al. 2024

AOL

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The paper investigates the technical efficiency of conventional and organic dairy farms in Estonia in the period 2006‒2015 using Farm Accountancy Data Network. We analyse self-selection into organic farming using the propensity-score-matching approach and explicitly test the hypothesis that organic and conventional farms apply homogeneous technology. We find that organic farms are less efficient. However, the difference in technical efficiency between organic and conventional farms decreases substantially when the technical efficiency assessment incorporates the use of the appropriate technology. The lack of growth of technical efficiency over time indicates that there might be a lack of knowledge in organic milk production that hinders its development. Since technical efficiency increases with farm size, it is important that organic dairy farms increase their scale.

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“…Some studies have evaluated the factors affecting the technical efficiency with respect to the abolition of quotas [11][12][13], to new and old EU member states [14,15], to regions [16][17][18], subsidies drawing [19,20], herd size [18,21,22], the ratio of the total number of dairy cows to the total number of cattle [23], and the economic size [24]. Technical efficiency in agriculture is influenced by many other factors such as technology, quality of factors, management and organisation on the farm, political and institutional conditions, farm economies of scale, etc.…”

Section: Introductionmentioning

confidence: 99%

Factors Influencing Technical Efficiency in the EU Dairy Farms

Náglová

Rudinskaya

2021

Agriculture

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This paper aims to analyse the technical efficiency (TE) of dairy farms and find its determinants. To accomplish this problem, the Stochastic Frontier Analysis was applied. The data were obtained from the Farm Accountancy Data Network database for dairy farms (TF15-45—Specialist dairying) for 2004–2019. Dairy farms were divided into four clusters according to their physical size (number of livestock units per farm) and economic size (standard output per farm). The largest farms by physical and economic size are located in Denmark and Cyprus. The smallest, in comparison, are in Bulgaria, Croatia, Latvia, Lithuania, Austria, Poland, Romania, and Slovenia. Farms in the EU are relatively technically efficient, i.e., they use their resources efficiently to produce maximum output (production). However, they have the potential to achieve better economic results and be more competitive, as the size of farms’ is not fully optimised. The abolition of the milk quota can be considered a factor in improving technical efficiency, as the indicator is higher after the abolition. New and old member states have almost comparable technical efficiency levels (the p-value of the t-test is 0.463), with old members having slightly higher level TE. Subsidies have contradictory effects on TE. Farm efficiency with higher subsidies per cow is higher for farms with €51–100/cow. However, as subsidies increase, TE decreases. Only the group of farms with the highest subsidies has a higher TE. More diversified farms are more technically efficient than specialised farms. Milk yield did not influence the analysed indicator. The analysis results can serve the stakeholders as a tool for modelling future agricultural policy, as the European farms are very heterogenous and show different conditions and economic outcomes.

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Technical efficiency and economic performance of dairy production in the EU: the role of size

Cited by 4 publications

References 23 publications

The role of CAP subsidies in all European Union member states: an analysis of technical inefficiency

The role of CAP subsidies in all European Union member states: an analysis of technical inefficiency

Are Organic Farms Less Efficient? The Case of Estonian Dairy Farms

Factors Influencing Technical Efficiency in the EU Dairy Farms

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