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Competitiveness of dairy farms in three countries: the role of CAP subsidies

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  • Zhu, Xueqin
  • Demeter, Robert Milan
  • Oude Lansink, Alfons G.J.M.

Abstract

This paper investigates the impact of CAP subsidies on the competitiveness of dairy farms in Germany, the Netherlands, and Sweden. Technical efficiency results show that coupled subsidies have negative impacts in Germany and the Netherlands, but no significant impacts in Sweden. Decoupled subsidies negatively affect technical efficiency in each country and to a larger extent than coupled subsidies. Relative productivity results indicate that Dutch technology leads to the highest output, followed by technologies in Germany and Sweden. Dutch farms can improve their competitiveness by exploring their current production potential. Besides improving efficiency, German and Swedish farms may have options to improve their production technology.

Suggested Citation

  • Zhu, Xueqin & Demeter, Robert Milan & Oude Lansink, Alfons G.J.M., 2008. "Competitiveness of dairy farms in three countries: the role of CAP subsidies," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44143, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae08:44143
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    File URL: http://purl.umn.edu/44143
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    References listed on IDEAS

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    Cited by:

    1. Fogarasi, Jozsef & Latruffe, Laure, 2009. "Farm performance and support in Central and Western Europe: a comparison of Hungary and France," 83rd Annual Conference, March 30-April 1, 2009, Dublin, Ireland 51053, Agricultural Economics Society.
    2. Skevas, Theodoros & Lansink, Alfons Oude & Stefanou, Spiro E., 2012. "Measuring technical efficiency in the presence of pesticide spillovers and production uncertainty: The case of Dutch arable farms," European Journal of Operational Research, Elsevier, vol. 223(2), pages 550-559.
    3. Laure Latruffe & Hervé Guyomard & Chantal Le Mouël, 2009. "The role of public subsidies on farms’ managerial efficiency: An application of a five-stage approach to France," Working Papers SMART - LERECO 09-05, INRA UMR SMART-LERECO.
    4. Douarin, Elodie & Latruffe, Laure, 2009. "Will the EU Single Area Payment decrease farm efficiency in the New Member States?," 2009 Conference, August 16-22, 2009, Beijing, China 51625, International Association of Agricultural Economists.

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    Keywords

    technical efficiency; output distance function; dairy farm; subsidy; relative productivity; Agricultural and Food Policy; Livestock Production/Industries;

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