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Animal Breeding and Productivity Growth of Dairy Farms

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  • Daniel Muluwork Atsbeha
  • Dadi Kristofersson
  • Kyrre Rickertsen

Abstract

We introduce genetic-based technical change into a Malmquist productivity index and measure the growth in productivity caused by bovine breeding. Because breeding is likely to affect milk quality, we adjust milk quantities for quality differences. We use panel data on Icelandic dairy farms from 1997 to 2006 to estimate an input distance function. The Malmquist productivity index shows that the average productivity growth rate is 1.6%. Scale effects are the most important source of this growth, but 19% of the productivity growth rate is due to breeding. If quality differences are ignored, the average productivity growth rate is reduced by 83%. Copyright 2012, Oxford University Press.

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  • Daniel Muluwork Atsbeha & Dadi Kristofersson & Kyrre Rickertsen, 2012. "Animal Breeding and Productivity Growth of Dairy Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(4), pages 996-1012.
    • Handle: RePEc:oup:ajagec:v:94:y:2012:i:4:p:996-1012
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    Cited by:

    1. Markus Lampe & Paul Sharp, 2015. "Just add milk: a productivity analysis of the revolutionary changes in nineteenth-century Danish dairying," Economic History Review, Economic History Society, vol. 68(4), pages 1132-1153, November.
    2. Malikov, Emir, 2016. "Estimating Multi-Product Production Functions and Productivity using Control Functions," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235108, Agricultural and Applied Economics Association.
    3. Richard J. Volpe & Timothy A. Park & Fengxia Dong & Helen H. Jensen, 2016. "Somatic cell counts in dairy marketing: quantile regression for count data," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 43(2), pages 331-358.
    4. Zeng, Shuwei & Du, Xiaodong & Gould, Brian, "undated". "Input/Output Measures and Implication for Productivity Estimates," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 261217, Agricultural and Applied Economics Association.
    5. Hutchins, Jared P. & Gong, Yating & Du, Xiaodong, 2021. "The Role of Animal Breeding in Productivity Growth: Evidence from Wisconsin Dairy Farms," 2021 Annual Meeting, August 1-3, Austin, Texas 313882, Agricultural and Applied Economics Association.
    6. Zeng, Shuwei & Gould, Brian & Thorne, Fiona & Laepple, Doris, "undated". "EU Milk Quota Elimination: Has the Productivity of Irish Dairy Farms Been Impacted?," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 261218, Agricultural and Applied Economics Association.
    7. Efthymios G. Tsionas & Subal C. Kumbhakar & Emir Malikov, 2015. "Estimation of Input Distance Functions: A System Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(5), pages 1478-1493.
    8. Ali, Beshir M. & de Mey, Yann & Oude Lansink, Alfons G.J.M., 2021. "The effect of farm genetics expenses on dynamic productivity growth," European Journal of Operational Research, Elsevier, vol. 290(2), pages 701-717.
    9. Daniel Atsbeha & Dadi Kristofersson & Kyrre Rickertsen, 2015. "Broad breeding goals and production costs in dairy farming," Journal of Productivity Analysis, Springer, vol. 43(3), pages 403-415, June.
    10. Maximilian Koppenberg, 2023. "Markups, organic agriculture and downstream concentration at the example of European dairy farmers," Agricultural Economics, International Association of Agricultural Economists, vol. 54(2), pages 161-178, March.
    11. Christine E Whitt & Loren W Tauer & Heather Huson, 2019. "Bull efficiency using dairy genetic traits," PLOS ONE, Public Library of Science, vol. 14(11), pages 1-14, November.

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    More about this item

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

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