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

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

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    File URL: http://purl.umn.edu/44143
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    Paper provided by European Association of Agricultural Economists in its series 2008 International Congress, August 26-29, 2008, Ghent, Belgium with number 44143.

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    Date of creation: 2008
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    Handle: RePEc:ags:eaae08:44143
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