Factors Influencing Technical Efficiency in the EU Dairy Farms

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00027251%3A_____%2F21%3AN0000002" target="_blank" >RIV/00027251:_____/21:N0000002 - isvavai.cz</a>

Result on the web

<a href="https://www.mdpi.com/2077-0472/11/11/1114" target="_blank" >https://www.mdpi.com/2077-0472/11/11/1114</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.3390/agriculture11111114" target="_blank" >10.3390/agriculture11111114</a>

Result language

angličtina

Original language name

Factors Influencing Technical Efficiency in the EU Dairy Farms

Original language description

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.

Czech name

—

Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

—

OECD FORD branch

50204 - Business and management

Project

<a href="/en/project/QK1920398" target="_blank" >QK1920398: Duality in Czech Agriculture: Advantage or Disadvantage for New Generation Agriculture?</a><br>

Continuities

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Publication year

2021

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Agriculture

ISSN

2077-0472

e-ISSN

2077-0472

Volume of the periodical

11

Issue of the periodical within the volume

11

Country of publishing house

CH - SWITZERLAND

Number of pages

14

Pages from-to

nestrankovano

UT code for WoS article

000725774900001

EID of the result in the Scopus database

2-s2.0-85119604211