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The Determinants of Dairy Farming Competitiveness in Ukraine

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  • Nivievskyi, Oleg
  • von Cramon-Taubadel, Stephan

Abstract

WTO accession and the expected free trade agreement with the EU pose significant challenges for Ukrainian agriculture, implying structural changes for the sector as well as adaptations at the farm level to improve efficiency and competitiveness. However, a recent study by von Cramon-Taubadel and Nivievskyi [2] demonstrates a clear lack of competitiveness. This directs attention to the forces that drive competitiveness in Ukrainian agriculture. Dairy farming deserves particular attention in this regard, since it is one of the main income generating sources for the rural population, and of raw material supply for the fast growing dairy processing. In this paper at first we analyze the profile of competitiveness of dairy farming in Ukraine, demonstrating that only about 20% of dairy farms produce at competitive level. Then using a fixed-effect panel regression we analyze the determinants of competitiveness in Ukrainian dairy farming. The size of the farm, productivity and labor intensity have a strong positive effect on competitiveness, while arable land per head has negative effect. Finally, total subsidies received by farms are found to have a negative impact on competitiveness, and this impact does not differ significantly between farms with different herd size.

Suggested Citation

  • Nivievskyi, Oleg & von Cramon-Taubadel, Stephan, 2008. "The Determinants of Dairy Farming Competitiveness in Ukraine," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44059, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae08:44059
    DOI: 10.22004/ag.econ.44059
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    Cited by:

    1. Nivievskyi, Oleg, 2009. "Price Support, Efficiency and Technology Change of Ukrainian dairy farms: Spatial dependence in the components of productivity growth," 2009 Conference, August 16-22, 2009, Beijing, China 51403, International Association of Agricultural Economists.
    2. Julia Langbein, 2013. "Unpacking the Russian and EU Impact on Policy Change in the Eastern Neighbourhood: The Case of Ukraine's Telecommunications and Food Safety," Europe-Asia Studies, Taylor & Francis Journals, vol. 65(4), pages 631-657.
    3. Ramanovich, Mikhail, 2010. "Zur Bestimmung der Wettbewerbsfähigkeit des weißrussischen Milchsektors: Aussagefähigkeit von Wettbewerbsindikatoren und Entwicklung eines kohärenten Messungskonzepts," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 53, number 94739.
    4. Rudinskaya, T. & Náglová, Z., 2018. "Impact of Subsidies on Technical Efficiency of Meat Processing Companies," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 10(1).
    5. Myrna van Leeuwen & Petra Salamon & Thomas Fellmann & Martin Banse & Oliver von Ledebur & Guna Salputra & Olexandr Nekhay & Robert M'barek, 2012. "The agri-food sector in Ukraine: Current situation and market outlook until 2025," JRC Research Reports JRC71776, Joint Research Centre.
    6. Bachev, Hrabrin, 2021. "Assessment of the competitiveness of agricultural holdings in Bulgaria," MPRA Paper 106341, University Library of Munich, Germany.
    7. Bachev, Hrabrin & Koteva, Nina, 2021. "Равнище На Конкурентоспособност На Българските Ферми През 2020г [Competitiveness Level of Bulgarian Farms in 2020]," MPRA Paper 106211, University Library of Munich, Germany.
    8. Hrabrin Bachev & Nina Koteva, 2021. "The competitiveness of agricultural holdings in Bulgaria," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 3-26,27-48.
    9. Bachev, Hrabrin & Koteva, Nina & Ivanov, Bojidar & Mitova, Dilyana & Boevski, Ivan & Terziev, Dimitar & Dimova, Nadejda & Dimitrova, Reneta & Marinov, Petar & Zvyatkova, Daniela & Sarov, Angel & Koste, 2021. "Холистичен Подход За Дефиниране, Оценяване И Подобряване На Конкурентоспособността На Земеделските Стопанства В България [A holistic framework for defining, evaluating, and improving the competitiv," MPRA Paper 111498, University Library of Munich, Germany.
    10. Levkovych, Inna, 2011. "Der ukrainische Außenhandel mit Produkten der Agrar- und Ernährungswirtschaft: Eine quantitative Analyse aus Sicht traditioneller und neuer Außenhandelstheorien," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 59, number 109520.

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    Keywords

    Livestock Production/Industries;

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