Influence of Animal Feeding on Milk Supply in Navarre
Determining the competitive position of dairy farms depends on several technological, economic and institutional variables. Among them, are remarkable those related to animal feeding in the current context of high variability on prices. In this context, the aim of our study is to analyze the effects on milk supply and the competitiveness of dairy farms with different models of land intensification, with greater reliance on market purchases or self production of livestock feed. Our work is based on an econometric approach to a variable cost function, in a fixed effects model for unbalanced panel data of specialized dairy farms in Navarre (Spain). From this region, we use 3 geographical areas in relation to the availability of grazing land. It has been tested the absence of sample selection bias and satisfaction of regularity conditions. The study shows a flexible milk farm supply with respect to the price of milk and very dependent on the evolution of feed prices. This aspect has been emphasized by the restructuring of farms, characterized by strong size increases and productivity gains based on a greater reliance on purchases of animal feed. The provision of grazing land has an important role in determining the average costs and farm profitability. In addition, grazing land use permits greater exploitation of economies of scale present in the dairy sector.
|Date of creation:||2011|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.eaae.org|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Nijman, T.E. & Verbeek, M.J.C.M., 1992. "Testing for selectivity in panel data models," Other publications TiSEM 7ec34a6c-1d84-4052-971c-d, Tilburg University, School of Economics and Management.
- Ludo Peeters & Yves Surry, 2000. "Incorporating Price-Induced Innovation in a Symmetric Generalised McFadden Cost Function with Several Outputs," Journal of Productivity Analysis, Springer, vol. 14(1), pages 53-70, July.
- Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275, june. pag.
- Huettel, Silke & Jongeneel, Roelof A., 2009. "Impact of the EU Milk Quota on Structural Change in the Dairy Sectors of Germany and The Netherlands," 2009 Conference, August 16-22, 2009, Beijing, China 50943, International Association of Agricultural Economists.
- V. Eldon Ball & Robert G. Chambers, 1982. "An Economic Analysis of Technology in the Meat Products Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(4), pages 699-709.
- Christine Wieck & Thomas Heckelei, 2007. "Determinants, differentiation, and development of short-term marginal costs in dairy production: an empirical analysis for selected regions of the EU," Agricultural Economics, International Association of Agricultural Economists, vol. 36(2), pages 203-220, 03.
- Moro, Daniele & Nardella, Michele & Sckokai, Paolo, 2005. "Regional Distribution of Short-Run, Medium-Run and Long-Run Quota Rents Across EU-15 Milk Producers," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24615, European Association of Agricultural Economists.
- Verbeek, M.J.C.M. & Nijman, T.E., 1990.
"Testing for selectivity bias in panel data models,"
1990-18, Tilburg University, Center for Economic Research.
- Pierani, Pierpaolo & Rizzi, Pier Luigi, 2003. "Technology and efficiency in a panel of Italian dairy farms: an SGM restricted cost function approach," Agricultural Economics, Blackwell, vol. 29(2), pages 195-209, October.
- Alvarez, Antonio & Arias, Carlos & Orea, Luis, 2004.
"Explaining Differences in Milk Quota Values: The Role of Economic Efficiency,"
Efficiency Series Papers
2004/01, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
- Antonio Alvarez & Carlos Arias & Luis Orea, 2006. "Explaining Differences in Milk Quota Values: The Role of Economic Efficiency," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(1), pages 182-193.
- Kenneth G. Stewart, 2007.
"Nonjointness and Scope Economies in the Multiproduct Symmetric Generalized McFadden Cost Function,"
Econometrics Working Papers
0709, Department of Economics, University of Victoria.
- Kenneth Stewart, 2009. "Non-jointness and scope economies in the multiproduct symmetric generalized McFadden cost function," Journal of Productivity Analysis, Springer, vol. 32(3), pages 161-171, December.
- Morrison, Catherine J, 1985. "Primal and Dual Capacity Utilization: An Application to Productivity Measurement in the U.S. Automobile Industry," Journal of Business & Economic Statistics, American Statistical Association, vol. 3(4), pages 312-24, October.
- Stefanou, Spiro E, et al, 1992. "Dynamic Structure of Production under a Quota: The Case of Milk Production in the Federal Republic of Germany," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 19(3), pages 283-99.
- Diewert, Walter E & Wales, Terence J, 1987.
"Flexible Functional Forms and Global Curvature Conditions,"
Econometric Society, vol. 55(1), pages 43-68, January.
- W. Erwin Diewert & T.J. Wales, 1989. "Flexible Functional Forms and Global Curvature Conditions," NBER Technical Working Papers 0040, National Bureau of Economic Research, Inc.
- Bernhard Brümmer & Thomas Glauben & Geert Thijssen, 2002. "Decomposition of Productivity Growth Using Distance Functions: The Case of Dairy Farms in Three European Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(3), pages 628-644.
- Wooldridge, Jeffrey M., 1995. "Selection corrections for panel data models under conditional mean independence assumptions," Journal of Econometrics, Elsevier, vol. 68(1), pages 115-132, July.
- Kumbhakar, Subal C & Biswas, Basudeb & Bailey, DeeVon, 1989. "A Study of Economic Efficiency of Utah Dairy Farmers: A System Approach," The Review of Economics and Statistics, MIT Press, vol. 71(4), pages 595-604, November.
When requesting a correction, please mention this item's handle: RePEc:ags:eaae11:114316. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.