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Organic and Conventional Farming: a Comparison Analysis through the Italian FADN

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  • Cisilino, Federica
  • Madau, Fabio A.

Abstract

This paper shows some results arisen from a wider research on economic and environmental sustainability of organic farming. It focuses on organic and conventional farming comparison through an investigation of Italian FADN data. In order to identify some of the main differences between organic and conventional farms a “distance analysis” has been carried out. The study aims to highlight some of the main characteristics of those two groups of farms to better address differences (if any) in production technology, costs and revenues. Furthermore it shows the findings of a non-parametric efficiency analysis on the Italian olive-growing farms. The purpose is to estimate difference in efficiency and productivity between organic and conventional olive producers. Results reveal that looking at the average values on Invested Areas, conventional farms’ Gross Production is significantly higher than the organic ones, as the Net Margin, as the Net Product and Costs. The average values on Total Labour Force instead, shown that, even if conventional farms still have higher values than organic ones, the “distance” become shorter. That means that the two groups are quite similar and that, even if organic farms still produce a lower “economic value”, they better compensate productive factors, especially in terms of Labour Force. Regards to efficiency analysis, we found that organic olive-growing farms are more able in using their disposable resources (with reference to their own frontier), and the higher efficiency permits them to compensate the lower productivity with respect to the conventional farms.

Suggested Citation

  • Cisilino, Federica & Madau, Fabio A., 2007. "Organic and Conventional Farming: a Comparison Analysis through the Italian FADN," MPRA Paper 21786, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:21786
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    File URL: https://mpra.ub.uni-muenchen.de/21786/1/MPRA_paper_21786.pdf
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    References listed on IDEAS

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    1. Tzouvelekas, Vangelis & Pantzios, Christos J. & Fotopoulos, Christos, 2001. "Economic Efficiency in Organic Farming: Evidence from Cotton Farms in Viotia, Greece," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 33(01), pages 35-48, April.
    2. Greene, William H., 1980. "On the estimation of a flexible frontier production model," Journal of Econometrics, Elsevier, vol. 13(1), pages 101-115, May.
    3. Fare, Rolf & Knox Lovell, C. A., 1978. "Measuring the technical efficiency of production," Journal of Economic Theory, Elsevier, vol. 19(1), pages 150-162, October.
    4. Atkinson, Scott E & Cornwell, Christopher, 1994. "Estimation of Output and Input Technical Efficiency Using a Flexible Form and Panel Data," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 35(1), pages 245-255, February.
    5. Forsund, Finn R. & Lovell, C. A. Knox & Schmidt, Peter, 1980. "A survey of frontier production functions and of their relationship to efficiency measurement," Journal of Econometrics, Elsevier, vol. 13(1), pages 5-25, May.
    6. Seiford, Lawrence M. & Thrall, Robert M., 1990. "Recent developments in DEA : The mathematical programming approach to frontier analysis," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 7-38.
    7. Tzouvelekas, Vangelis & Pantzios, Christos J. & Fotopoulos, Christos, 2001. "Technical efficiency of alternative farming systems: the case of Greek organic and conventional olive-growing farms," Food Policy, Elsevier, vol. 26(6), pages 549-569, December.
    8. Tzouvelekas, Vangelis & Pantzios, Christos J. & Fotopoulos, Christos, 2002. "Empirical Evidence of Technical Efficiency Levels in Greek Organic and Conventional Farms," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 3(2), pages 1-12, August.
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    Citations

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    Cited by:

    1. Djokoto, Justice G., 2015. "Technical efficiency of organic agriculture: a quantitative review," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 117(2), pages 1-11, August.
    2. Zein Kallas & Teresa Serra & José Maria Gil, 2010. "Farmers' objectives as determinants of organic farming adoption: the case of Catalonian vineyard production," Agricultural Economics, International Association of Agricultural Economists, vol. 41(5), pages 409-423, September.
    3. Francesco Vidoli & Giancarlo Ferrara, 2015. "Analyzing Italian citrus sector by semi-nonparametric frontier efficiency models," Empirical Economics, Springer, vol. 49(2), pages 641-658, September.
    4. Madau, Fabio A., 2011. "Parametric Estimation of Technical and Scale Efficiencies in Italian Citrus Farming," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 12(1).
    5. Galluzzo, Nicola, 2014. "Analysis of efficiency in organic wine and olive farms in the Italian FADN dataset," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182978, European Association of Agricultural Economists.
    6. Madau, Fabio A., 2012. "Technical and scale efficiency in the Italian Citrus Farming: A comparison between Stochastic Frontier Analysis (SFA) and Data Envelopment Analysis(DEA) Models," MPRA Paper 41403, University Library of Munich, Germany.

    More about this item

    Keywords

    FADN Sampling Organic Farming Distance Efficiency Analysis;

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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