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Profitability development of Czech dairy farms

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  • Zdenka ZAKOVA KROUPOVA

    (Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences Prague, Prague, Czech Republic)

Abstract

The paper deals with the development and main determinants of the profitability of Czech dairy farms. The aim of the paper is to evaluate the differences in the dynamics of profitability for two types of milk producers - specialized dairy farms and mixed farms - within the context of the agricultural policy changes. This aim is achieved by decomposing profitability into output growth, output and input price changes, changes in decoupled subsidies, technical change, scale, mark-up, and technical efficiency change components based on input distance function estimation. Based on the panel data obtained from the FADN database in the time period 2004-2011, it was found that the change in profitability was positive in the analysed time period, and slightly higher for the specialized dairy farms than for the mixed ones. The changes in output price, mark-up component and technical change are the main determinants of the development of profitability. Agricultural policy measures had different effects on these components. The strongest correlation was between the operational subsidies and the technical change and technical efficiency change, and this correlation was negative.

Suggested Citation

  • Zdenka ZAKOVA KROUPOVA, 2016. "Profitability development of Czech dairy farms," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 62(6), pages 269-279.
    • Handle: RePEc:caa:jnlage:v:62:y:2016:i:6:id:131-2015-agricecon
    DOI: 10.17221/131/2015-AGRICECON
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    References listed on IDEAS

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    1. Aleš Peprný & Lea Kubíčková, 2011. "Method of evaluating the success of the dairy Czech small and medium-sized enterprises," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 59(2), pages 221-230.
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    Cited by:

    1. Jan Syrůček & Luděk Bartoň & Dalibor Řehák & Jindřich Kvapilík & Jiří Burdych, 2019. "Evaluation of economic indicators for Czech dairy farms," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 65(11), pages 499-508.
    2. Łukasz Kryszak & Thomas Herzfeld, 2021. "One or many European models of agriculture? How heterogeneity influences income creation among farms in the European Union," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(11), pages 445-456.
    3. Łukasz Kryszak & Marta Guth & Bazyli Czyżewski, 2021. "Determinants of farm profitability in the EU regions. Does farm size matter?," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(3), pages 90-100.
    4. Vladimír Kostlivý & Zuzana Fuksová, 2019. "Technical efficiency and its determinants for Czech livestock farms," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 65(4), pages 175-184.
    5. Jan Syrůček & Luděk Bartoň & Dalibor Řehák & Magdaléna Štolcová & Jiří Burdych, 2023. "Recent development of economic indicators on Czech dairy farms," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(2), pages 45-54.

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