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Productivity growth of dairy farms having conventional vs. automatic milking system

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  • Heikkilä, Anna-Maija
  • Myyrä, Sami

Abstract

The aim of this study was to determine whether the switch from conventional milking systems (CMS) to automatic milking systems (AMS) has positive effects on the productivity growth. Production function analysis was implemented over a rotating panel data of 323 Finnish dairy farms during the period of 2000–2011. The total factor productivity growth was 1.7% per year on farms that stayed in CMS and 3.1% per year on farms that had switched to AMS. The improvement was linked to overall reforms in production technology and an expansion in herd size but the adoption of AMS intensified the positive development.

Suggested Citation

  • Heikkilä, Anna-Maija & Myyrä, Sami, 2014. "Productivity growth of dairy farms having conventional vs. automatic milking system," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182648, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae14:182648
    DOI: 10.22004/ag.econ.182648
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    References listed on IDEAS

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    1. Kumbhakar, Subal C & Heshmati, Almas & Hjalmarsson, Lennart, 1999. " Parametric Approaches to Productivity Measurement: A Comparison among Alternative Models," Scandinavian Journal of Economics, Wiley Blackwell, vol. 101(3), pages 405-424, September.
    2. Johannes Sauer & David Zilberman, 2012. "Sequential technology implementation, network externalities, and risk: the case of automatic milking systems," Agricultural Economics, International Association of Agricultural Economists, vol. 43(3), pages 233-252, May.
    3. Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275.
    4. Subal C. Kumbhakar & Almas Heshmati & Lennart Hjalmarsson, 1999. "Parametric Approaches to Productivity Measurement: A Comparison among Alternative Models," Scandinavian Journal of Economics, Wiley Blackwell, vol. 101(3), pages 405-424, September.
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    Productivity Analysis;

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