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Is Sustainability Compatible with Profitability? An Empirical Analysis on Family Farming Activity

Author

Listed:
  • Laura Piedra-Muñoz

    (Department of Economics and Business, University of Almería (Agrifood Campus of International Excellence, ceiA3), Ctra. Sacramento s/n, 04120 Almería, Spain)

  • Emilio Galdeano-Gómez

    (Department of Economics and Business, University of Almería (Agrifood Campus of International Excellence, ceiA3), Ctra. Sacramento s/n, 04120 Almería, Spain)

  • Juan C. Pérez-Mesa

    (Department of Economics and Business, University of Almería (Agrifood Campus of International Excellence, ceiA3), Ctra. Sacramento s/n, 04120 Almería, Spain)

Abstract

Sustainability is a social concern and a new strategic factor for productive and economic viability. Nevertheless, research on this subject in a holistic approach is limited, and even to a lesser extent when dealing with family farms. This paper analyzes the impact of different aspects of sustainability (socio-economic characteristics, environmentally respectful practices, and innovation) on profitability. The data collection instruments include a survey questionnaire on farming in Almería, a province in Southeast Spain, and the methodology followed involves a two-step regression model. The main results show how several socio-economic and environmental-innovation features of family farms have positive effects on their economic performance. Among others, profitability increases when there are better educated and younger family farm decision-makers; the farm is specialized and supported by more efficient cooperatives: and, particularly, when the family farm displays greater concern for environmental practices and better disposition towards agroecological innovation.

Suggested Citation

  • Laura Piedra-Muñoz & Emilio Galdeano-Gómez & Juan C. Pérez-Mesa, 2016. "Is Sustainability Compatible with Profitability? An Empirical Analysis on Family Farming Activity," Sustainability, MDPI, vol. 8(9), pages 1-15, September.
    • Handle: RePEc:gam:jsusta:v:8:y:2016:i:9:p:893-:d:77380
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    1. Mauro Lizot & Flavio Trojan & Paulo Afonso, 2021. "Combining Total Cost of Ownership and Multi-Criteria Decision Analysis to Improve Cost Management in Family Farming," Agriculture, MDPI, vol. 11(2), pages 1-20, February.
    2. Piotr Sulewski & Anna Kłoczko-Gajewska & Wojciech Sroka, 2018. "Relations between Agri-Environmental, Economic and Social Dimensions of Farms’ Sustainability," Sustainability, MDPI, vol. 10(12), pages 1-23, December.
    3. Juan Carlos Pérez-Mesa & Laura Piedra-Muñoz & Mª Carmen García-Barranco & Cynthia Giagnocavo, 2019. "Response of Fresh Food Suppliers to Sustainable Supply Chain Management of Large European Retailers," Sustainability, MDPI, vol. 11(14), pages 1-24, July.
    4. Beatriz García-Cornejo & José A. Pérez-Méndez & David Roibás & Alan Wall, 2020. "Efficiency and Sustainability in Farm Diversification Initiatives in Northern Spain," Sustainability, MDPI, vol. 12(10), pages 1-18, May.
    5. Paweł Chmieliński & Wioletta Wrzaszcz & Marek Zieliński & Marek Wigier, 2022. "Intensity and Biodiversity: The ‘Green’ Potential of Agriculture and Rural Territories in Poland in the Context of Sustainable Development," Energies, MDPI, vol. 15(7), pages 1-19, March.
    6. María E. Pérez-Pons & Marta Plaza-Hernández & Ricardo S. Alonso & Javier Parra-Domínguez & Javier Prieto, 2020. "Increasing Profitability and Monitoring Environmental Performance: A Case Study in the Agri-Food Industry through an Edge-IoT Platform," Sustainability, MDPI, vol. 13(1), pages 1-16, December.
    7. Cristina Keiko Yamaguchi & Stéfano Frizzo Stefenon & Ney Kassiano Ramos & Vanessa Silva dos Santos & Fernanda Forbici & Anne Carolina Rodrigues Klaar & Fernanda Cristina Silva Ferreira & Alessandra Ca, 2020. "Young People’s Perceptions about the Difficulties of Entrepreneurship and Developing Rural Properties in Family Agriculture," Sustainability, MDPI, vol. 12(21), pages 1-12, October.
    8. Dwi Ratna Hidayati & Elena Garnevska & Paul Childerhouse, 2021. "Sustainable Agrifood Value Chain—Transformation in Developing Countries," Sustainability, MDPI, vol. 13(22), pages 1-20, November.
    9. Emily A. Paskewitz, 2021. "Exploring the Impact of Emotional Intelligence on Family Farm Member Conflict Experiences," Sustainability, MDPI, vol. 13(15), pages 1-18, July.
    10. Sipan Li & Qunxi Gong & Shaolei Yang, 2019. "A Sustainable, Regional Agricultural Development Measurement System Based on Dissipative Structure Theory and the Entropy Weight Method: A Case Study in Chengdu, China," Sustainability, MDPI, vol. 11(19), pages 1-15, September.
    11. Theodoros Skevas & Ioannis Skevas & Victor E. Cabrera, 2021. "Examining the Relationship between Social Inefficiency and Financial Performance. Evidence from Wisconsin Dairy Farms," Sustainability, MDPI, vol. 13(7), pages 1-14, March.
    12. Ahmad Fathi Alheet, 2019. "Exploring the Impact of Environmental Sustainability on Firm Performance in the Manufacturing Industry in Jordan," Business, Management and Economics Research, Academic Research Publishing Group, vol. 5(8), pages 110-117, 08-2019.

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