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Feed substitution and economies of scale in Irish beef production systems

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  • Tsakiridis, Andreas
  • Hanrahan, Kevin
  • Breen, James
  • Wallace, Michael
  • O’Donoghuea, Cathal

Abstract

We use a short-run translog cost function to model Irish beef production over the period 2000-2011. Similar to other countries Irish beef farmers operate in various production systems with many farmers specializing in calf rearing, and other farmers specializing in beef fattening or other production systems. In order to identify potential technological differences and differences in scale economies across beef systems we estimate scale economies, own- and cross-price elasticities, and Morishima elasticities of substitution between purchased cattle, purchased feed, home-grown feed and veterinary services for three beef systems. Results suggest that all inputs are substitutes in the cow-calf, calf-to-finish, and other beef systems (store-to-finish and mixed beef systems) whereas extensive economies of scale exist in the cow-calf and calf-to-finish systems. The same trend is observed for other beef systems until 2005 although post-decoupling these systems operate under decreasing returns to scale.

Suggested Citation

  • Tsakiridis, Andreas & Hanrahan, Kevin & Breen, James & Wallace, Michael & O’Donoghuea, Cathal, 2016. "Feed substitution and economies of scale in Irish beef production systems," 149th Seminar, October 27-28, 2016, Rennes, France 244769, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa149:244769
    DOI: 10.22004/ag.econ.244769
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    Cited by:

    1. Hooks Teresa & Macken-Walsh Áine & McCarthy Olive & Power Carol & Henchion Maeve, 2018. "Co-Operation among Irish Beef Farmers: Current Perspectives and Future Prospects in the Context of New Producer Organisation (PO) Legislation," Sustainability, MDPI, vol. 10(11), pages 1-19, November.

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    Keywords

    Agricultural and Food Policy; Livestock Production/Industries;

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