IDEAS home Printed from https://ideas.repec.org/a/caa/jnlage/v61y2015i1id112-2014-agricecon.html
   My bibliography  Save this article

Change in the production efficiency of European specialized milk farming

Author

Listed:
  • Jindřich ŠPIČKA

    (Department of Strategy, Faculty of Business Administration, University of Economics, Prague, Czech Republic)

  • Ondřej MACHEK

    (Department of Strategy, Faculty of Business Administration, University of Economics, Prague, Czech Republic)

Abstract

The aim of the article is to identify the key structural, yield and economic determinants of the change in regional efficiency of specialized milk farms over the period 2007 to 2011. The 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. The article put emphasis on the investment activity and investment subsidies allocated in the sample of regions. The results reveal that regions with a positive change in the production efficiency have a significantly 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 efficiency. On the contrary, investment subsidies per livestock unit do not significantly differ between the progressive and other regions. Investment subsidies are slightly higher in the regions with a negative change in the production efficiency and continuously help them to mitigate the drop in technical efficiency.

Suggested Citation

  • Jindřich ŠPIČKA & Ondřej MACHEK, 2015. "Change in the production efficiency of European specialized milk farming," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 61(1), pages 1-13.
    • Handle: RePEc:caa:jnlage:v:61:y:2015:i:1:id:112-2014-agricecon
    DOI: 10.17221/112/2014-AGRICECON
    as

    Download full text from publisher

    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/112/2014-AGRICECON.html
    Download Restriction: free of charge
    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/112/2014-AGRICECON.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.17221/112/2014-AGRICECON?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Loren W. Tauer, 1998. "Productivity of New York Dairy Farms Measured by Nonparametric Malmquist Indices," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(2), pages 234-249, June.
    2. Ferjani, Ali, 2011. "Environmental Regulation and Productivity: A Data Envelopment Analysis for Swiss Dairy Farms," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 12(1).
    3. Machek Ondrej, 2012. "Data Issues In Total Factor Productivity Benchmarking: A Central European Perspective," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 219-225, December.
    4. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November.
    5. William W. Cooper & Lawrence M. Seiford & Kaoru Tone, 2006. "Introduction to Data Envelopment Analysis and Its Uses," Springer Books, Springer, number 978-0-387-29122-2, December.
    6. Darla Munroe, 2001. "Economic Efficiency in Polish Peasant Farming: An International Perspective," Regional Studies, Taylor & Francis Journals, vol. 35(5), pages 461-471.
    7. Trond Bjorndal & Chandra Bahadur Adhikari, 2011. "Analyses of Technical Efficiency Using SDF and DEA Models: Evidence from Nepalese Agriculture," Post-Print hal-00708538, HAL.
    8. Laure Latruffe & Kelvin Balcombe & Sophia Davidova & Katarzyna Zawalinska, 2004. "Determinants of technical efficiency of crop and livestock farms in Poland," Applied Economics, Taylor & Francis Journals, vol. 36(12), pages 1255-1263.
    9. Carol Newman & Alan Matthews, 2007. "Evaluating the Productivity Performance of Agricultural Enterprises in Ireland using a Multiple Output Distance Function Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 58(1), pages 128-151, February.
    10. Michalickova, Monika & Krupova, Zuzana & Krupa, Emil, 2013. "Technical Efficiency and its Determinants in Dairy Cattle," Acta Oeconomica et Informatica, Faculty of Economics and Management, Slovak Agricultural University in Nitra (FEM SPU), vol. 16(1), pages 1-10, February.
    11. Ohlan, Ramphul, 2013. "Efficiency and Total Factor Productivity Growth in Indian Dairy Sector," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 52(1), pages 1-27, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Emilia HERMAN, 2016. "Improving agricultural performance for the working poverty reduction in the European Union," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 62(6), pages 247-259.
    2. Zhai, Shixian & Peng, Chao & Sheng, Yu, 2023. "Assessing the impact of digital financial inclusion on agricultural total factor productivity in China," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 26(3), January.
    3. Lenka KRPALKOVA & Victor E. CABRERA & Jindřich KVAPILIK & Jiri BURDYCH, 2016. "Dairy farm profit according to the herd size, milk yield, and number of cows per worker," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 62(5), pages 225-234.
    4. Sebastián Lozano & Belarmino Adenso-Díaz, 2021. "A DEA approach for merging dairy farms," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(6), pages 209-219.
    5. Grzelak, Aleksander, 2023. "Return On Assets In Farms And The Context Of Economic Rationality In Poland And Selected European Union Countries," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2023(4).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Anna NOWAK & Tomasz KIJEK & Katarzyna DOMAŃSKA, 2015. "Technical efficiency and its determinants in the European Union," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 61(6), pages 275-283.
    2. Andrea BONFIGLIO, 2006. "Efficiency and Productivity Changes of the Italian Agrifood Cooperatives: a Malmquist Index Analysis," Working Papers 250, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    3. Sauer, Johannes & Davidova, Sophia & Gorton, Matthew, 2012. "Land fragmentation, market integration and farm efficiency: empirical evidence from Kosovo," 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK 134968, Agricultural Economics Society.
    4. Chia-Nan Wang & Hector Tibo & Duy Hung Duong, 2020. "Renewable Energy Utilization Analysis of Highly and Newly Industrialized Countries Using an Undesirable Output Model," Energies, MDPI, vol. 13(10), pages 1-21, May.
    5. Hockmann, Heinrich & Pieniadz, Agata, 2007. "Farm Heterogeneity and Efficiency in Polish Agriculture: A Stochastic Frontier Analysis," 104th Seminar, September 5-8, 2007, Budapest, Hungary 7823, European Association of Agricultural Economists.
    6. Lajos Zoltan Bakucs & Laure Latruffe & Imre Ferto & Jozsef Fogarasi, 2006. "Technical efficiency of Hungarian farms before and after accession," Post-Print hal-02285626, HAL.
    7. Kelvin Balcombe & Sophia Davidova & Laure Latruffe, 2005. "Productivity change in Polish agriculture : an application of a bootstrap procedure to Malmquist indices," Post-Print hal-02285625, HAL.
    8. Phatima MAMARDASHVILI & Dierk SCHMID, 2013. "Performance of Swiss dairy farms under provision of public goods," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 59(7), pages 300-314.
    9. América Ivonne Zamora Torres, 2019. "Cambio tecnológico y eficiencia logística del transporte de carga internacional a través del modelo DEA. (Technological change and efficiency of the logistics system of international freight through t," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(2), pages 183-204, November.
    10. Moreira, Victor H. & Bravo-Ureta, Boris E. & Dunner, Roberto & Vidal, Ricardo, 2012. "Total Factor Productivity Change in Dairy Production in Southern Chile: Is Farm Size Significant?," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126895, International Association of Agricultural Economists.
    11. Aziz KUTLAR & Ali KABASAKAL & Adem BABACAN, 2015. "Dynamic Efficiency of Turkish Banks: a DEA Window and Malmquist Index Analysis for the Period of 2003-2012," Sosyoekonomi Journal, Sosyoekonomi Society, issue 23(24).
    12. Chemak, Fraj, 2011. "Technical Change Performance and Water Use Efficiency in the Irrigated Areas: Data Envelopment Analysis Approach," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114311, European Association of Agricultural Economists.
    13. Skevas, Ioannis & Emvalomatis, Grigorios & Brümmer, Bernhard, 2018. "Productivity growth measurement and decomposition under a dynamic inefficiency specification: The case of German dairy farms," European Journal of Operational Research, Elsevier, vol. 271(1), pages 250-261.
    14. Dakpo, K Hervé & Desjeux, Yann & Jeanneaux, Philippe & Latruffe, Laure, 2016. "Productivity, efficiency and technological change in French agriculture during 2002-2014: A Färe-Primont index decomposition," 149th Seminar, October 27-28, 2016, Rennes, France 244793, European Association of Agricultural Economists.
    15. Hockmann, Heinrich & Pieniadz, Agata & Goraj, Lech, 2007. "Modeling heterogeneity in production models: empirical evidence from individual farming in Poland [Modellierung der Heterogenität der Faktorqualitäten in Produktionsfunktionen: Empirische Ergebniss," IAMO Discussion Papers 109, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    16. Hockmann, Heinrich & Pieniadz, Agata, 2009. "Explaining differences in farms efficiencies in Polish agriculture," 2009 Conference, August 16-22, 2009, Beijing, China 51051, International Association of Agricultural Economists.
    17. Sarmento, Joaquim Miranda & Renneboog, Luc & Verga-Matos, Pedro, 2017. "Measuring highway efficiency : A DEA approach and the Malquist index," Other publications TiSEM 23264815-321e-45a3-83ee-9, Tilburg University, School of Economics and Management.
    18. Bieniek-Majka, Maryla & Guth, Marta, 2021. "Factor Productivity And Profitability Of Horticultural Holdings In Selected Countries Specializing In Fruit And Vegetable Production In The European Union In The Period 2008-2018," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2021(2).
    19. Md. Abul Kalam Azad & Susila Munisamy & Abdul Kadar Muhammad Masum & Paolo Saona & Peter Wanke, 2017. "Bank efficiency in Malaysia: a use of malmquist meta-frontier analysis," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 7(2), pages 287-311, August.
    20. Sauer, J. & Davidova, S. & Gorton, M., 2013. "Land Fragmentation and Market Integration- Heterogenous Technologies in Kosovo," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 48, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:caa:jnlage:v:61:y:2015:i:1:id:112-2014-agricecon. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ivo Andrle (email available below). General contact details of provider: https://www.cazv.cz/en/home/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.