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Do Management Profiles Matter? An Analysis of Belgian Dairy Farmers

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  • Vandermersch, Mieke
  • Mathijs, Erik

Abstract

To assess the performance of a farmer and to identify best practice among a group of farmers, the assumption is often made that all farmers maximize profits and thus share the same business goals. However, performance differs due to personal characteristics, objectives and strategies. A survey carried out among 73 Belgian dairy farmers revealed that for only 34% of the farmers "profit maximization" is a primary objective. A regression analysis revealed that self-declared profit maximizers only obtained a higher farm income per liter, not per labour unit. Through cluster analysis, four main groups of farmers were found with similar objectives and management ideas: (A) risk-taking and progressive cow farmers, (B) riskaverse and progressive labour savers, (C) risk-neutral and relatively conservative profit maximizers and (D) risk-averse and conservative cow farmers. Gross margin per liter was highest for the labour savers. Other performance parameters were higher for cluster B only compared to cluster D. Scale economies were found for all performance parameters except for gross margin per liter.

Suggested Citation

  • Vandermersch, Mieke & Mathijs, Erik, 2002. "Do Management Profiles Matter? An Analysis of Belgian Dairy Farmers," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24832, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae02:24832
    DOI: 10.22004/ag.econ.24832
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    References listed on IDEAS

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    Cited by:

    1. Sintori, Alexandra & Rozakis, Stelios & Tsiboukas, Kostas, 2009. "Multiple goals in farmers’ decision making: The case of sheep farming in Western Greece," 83rd Annual Conference, March 30 - April 1, 2009, Dublin, Ireland 51075, Agricultural Economics Society.
    2. Stelios Rozakis & Alexandra Sintori & Konstantinos Tsiboukas, 2009. "Utility-derived Supply Function of Sheep Milk: The Case of Etoloakarnania, Greece," Working Papers 2009-11, Agricultural University of Athens, Department Of Agricultural Economics.

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    Farm Management;

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