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Economic Assessment of Small-Scale Mountain Dairy Farms by Using Accounting Data: Evidence from an Italian Case Study

Author

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  • Staffolani, Giacomo
  • Bentivoglio, Deborah
  • Finco, Adele

Abstract

Dairy mountain farms are economically disadvantaged due to small farm sizes and high production costs. This situation was exacerbated firstly by the opening of the market linked to the abolition of milk quotas; secondly by the rising prices due to the energy crisis due to covid 19 and the war in Ukraine. However, these farms are important for the preservation of traditional landscapes, the economy of these areas and the offered ecosystem services, especially when they are managed extensively. The objective of this research is to understand if mountain dairy farms are economically sustainable and competitive through the analysis of a case study. The economic analysis takes into account the production cost of milk, profitability, and some economic indicators using accounting data. The results show that the farm profitability is decreasing, and the costs are unsustainable. As a consequence, more efficient policy support is needed to overcome this crisis.

Suggested Citation

  • Staffolani, Giacomo & Bentivoglio, Deborah & Finco, Adele, 2024. "Economic Assessment of Small-Scale Mountain Dairy Farms by Using Accounting Data: Evidence from an Italian Case Study," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 16(3), September.
    • Handle: RePEc:ags:aolpei:348991
    DOI: 10.22004/ag.econ.348991
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    References listed on IDEAS

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    1. Magali Aubert & Philippe Perrier‐Cornet, 2009. "Is there a future for small farms in developed countries? Evidence from the French case," Agricultural Economics, International Association of Agricultural Economists, vol. 40(s1), pages 797-806, November.
    2. Marie Dervillé & Gilles Allaire & Élise Maigné & Éric Cahuzac, 2017. "Internal and contextual drivers of dairy restructuring: evidence from French mountainous areas and post†quota prospects," Agricultural Economics, International Association of Agricultural Economists, vol. 48(1), pages 91-103, January.
    3. Lips, Markus, 2014. "Calculating full costs for Swiss dairy farms in the mountain region using a maximum entropy approach for joint-cost allocation," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 3(3), pages 1-9.
    4. Roel Jongeneel & Ana Gonzalez-Martinez, 2022. "EU Dairy after the Quota Abolition: Inelastic Asymmetric Price Responsiveness and Adverse Milk Supply during Crisis Time," Agriculture, MDPI, vol. 12(12), pages 1-16, November.
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    Dairy Farming;

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