Technical Efficiency of Dairy Farms: An Empirical Study of Producers in Poland

Wilczyński, Artur; Kołoszycz, Ewa; Świtłyk, Michał

doi:10.35808/ersj/1540

Cited by 7 publications

(6 citation statements)

References 20 publications

(21 reference statements)

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“…They found higher milk yields in efficient regions, but the difference was not statistically significant. According to Wilczynski [42], the efficiency of farms increases with a higher milk yield.…”

Section: Discussionmentioning

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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Section: Discussionmentioning

confidence: 99%

Factors Influencing Technical Efficiency in the EU Dairy Farms

Náglová

Rudinskaya

2021

Agriculture

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“…Examples of such studies are the papers by Zawalińska, 2004;O'Donnell, 2010b;Rusielik and Świtłyk, 2012;Pisulewski, 2013, 2014;Marzec et al, 2015;Latruffe and Desjeux, 2016. Animal farms, including dairy farms, constitute a popular area of studies on productivity and technical efficiency. Among others, they were conducted by Latruffe et al, 2005;Balcombe, Fraser, and Kim, 2006;Latruffe et al, 2012;Singbo and Larue, 2016;Darku, Malla, and Tran, 2016;Madau, Furesi, and Pulina, 2017;and by Wilczyński et al, 2020. Research on the technical efficiency of the agricultural environment, agriculture, and farms in Poland was conducted by, among others, Świtłyk, 1999;Rusielik, 2000;Rusielik and Świtłyk, 2009;Zawalińska, 2004;Góral, 2014;Pisulewski, 2013, 2014;Marzec et al, 2015. Source data for research purposes were obtained from the Polish FADN (Farm Accountancy Data Network). The research adopted the dairy farm model consisting in 1 output (Y) and 9 (X) inputs.…”

Section: Methodsmentioning

confidence: 99%

“…The second reason for addressing this issue is a knowledge gap involving a lack of current studies on changes in productivity of the Polish agriculture, including dairy farms. While the technical efficiency of these farms is relatively well researched in Poland Pisulewski, 2013, 2014;Marzec, Pisulewski, and Prędki, 2015;Wilczyński, Kołoszycz, and Świtłyk, 2020), no current studies on farm productivity are being conducted. The vast majority of Polish papers in this field have involved the measurement of productivity using the Malmquist index and dates back to before the Poland's accession to the European Union (among others (Brümmer, Glauben, and Thijssen, 2002;Zawalińska, 2004;Latruffe, Balcombe, Davidova, and Zawalińska, 2005), while the latest research on the productivity of the Polish agriculture (Rusielik, 2015) is partially based on macroeconomic data.…”

Section: Introductionmentioning

confidence: 99%

Using the Färe-Primont Index to Measure Changes in Total Factor Productivity of Dairy Farms

Świtłyk¹

2021

Zagadnienia Ekonomiki Rolnej / Problems of Agricultural Economi

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The aim of the research was to assess the changes (in dynamic terms between 2008 and 2017) in the productivity of farms specializing in milk production with the use of the Färe-Primont aggregated total factor productivity index. The total factor productivity index was divided into the efficiency change index and technological change index. The research was conducted with the use of a data panel consisting of 730 farms per annum. Data were acquired from the Polish FADN. The research adopted the dairy farm model consisting of 1 output (Y) and 9 (X) inputs. The model of dairy farm adopted for calculation purposes was a minimum input farm, assuming variable returns to scale (VRS).Between 2008 and 2017, the Färe-Primont total factor productivity index decreased by 28% (0.720). Changes in the total factor productivity index (dTFP) were affected by a 21.6% (1.216) increase in technological changes and a 40.8% (0.592) decrease in efficiency changes (dTFPE). The research results demonstrate that the key source of productivity in Poland is the technological progress, while the efficiency changes contributed to a decrease in the Färe-Primont total factor productivity index. The larger the economic size of the farm, cow herd size, agricultural area, total labor input (AWU), and cow milk yield, the greater the changes in the Färe-Primont total factor productivity index.

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“…Several papers about sustainability of dairy farms are available (Meul et al, 2009;Acosta-Alba et al, 2012;Czyżewski et al, 2019;Nowak et al, 2019). Research most often focuses on effectiveness (Wilczyński et al, 2020) or determinants for the development of the dairy market (Wierzejski et al, 2020). However, little attention is paid to economic sustainability.…”

Section: Literature Reviewmentioning

confidence: 99%

Economic Sustainability of Dairy Farms in the EU

Bórawski¹,

Pawlewicz²,

Mickiewicz³

et al. 2020

ERSJ

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Purpose: The objective of this research is to evaluate changes in the economic sustainability of dairy farms in the European Union (EU) countries during 2007-2016 when dairy quotas were being removed in the EU. We wanted to answer the question what is the economic sustainability of dairy farms in the EU, and how has the economic sustainability in the EU countries changed after the accession of new member states in 2004 and 2017. Design/Approach/Methodology: An economic sustainability assessment of farms was conducted using the Farm Accountancy Data Network (FADN) census data with several economic efficiency indicators. We analyzed variables using the Hellwig method. Findings: Results indicate that milk production increased in almost all the countries of the EU, as did their economies. The largest annual increase in standard output (SO) was in Denmark, Slovakia, Czech Republic, Sweden and United Kingdom. In turn, the smallest annual increase in SO was in Lithuania, Bulgaria, Latvia and Poland. Dairy farms in the Czech Republic and Denmark had the highest economic sustainability, while dairy farms in Bulgaria, Croatia, Poland, Romania and Slovenia had the lowest economic sustainability. Practical Implications: While not providing a comprehensive assessment, the indicators used do provide important information about economic impacts related to the scale and distribution of production, difference in labor cost, sources of income and maintenance of farms. Originality/Value: Modern dairy farms must have production efficiency and environmental compliance to achieve sustainability. Much of the current literature focuses on the efficiency and environmental aspects of sustainability and there is a lack of data that assesses economic sustainability.

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Technical Efficiency of Dairy Farms: An Empirical Study of Producers in Poland

Cited by 7 publications

References 20 publications

Factors Influencing Technical Efficiency in the EU Dairy Farms

Factors Influencing Technical Efficiency in the EU Dairy Farms

Using the Färe-Primont Index to Measure Changes in Total Factor Productivity of Dairy Farms

Economic Sustainability of Dairy Farms in the EU

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