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Dairy productivity and climatic conditions: econometric evidence from South-eastern united States

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  • Mukherjee, Deep
  • Bravo-Ureta, Boris E.
  • De Vries, Albert

Abstract

Climate change and food security have become critical issues in the agricultural policy agenda. Although global warming is expected to increase both the frequency and severity of heat stress on dairy cattle, there are very few economic studies focusing on this issue. This paper contributes to the literature by integrating the frontier methodology, commonly used in applied production economics, with heat stress indexes used by animal scientists but largely ignored by economists. Our econometric models are useful to quantify gross benefits expected from adaptation to climatic conditions represented by the Temperature Humidity Index (THI) and alternatively by the Equivalent Temperature Index (ETI). Stochastic production frontier analysis is used to measure technical efficiency for an unbalanced panel of 103 dairy farms located in Florida and Georgia. Five alternative model specifications are evaluated. The results reveal that both THI and ETI have a significant nonlinear negative effect on milk production. The climatic indexes when incorporated in the frontier specification absorb some of the output shortfall that otherwise would be attributable to inefficiency. The results indicate that using fans combined with sprinklers is an effective adaptation to offset output losses stemming from heat stress conditions.

Suggested Citation

  • Mukherjee, Deep & Bravo-Ureta, Boris E. & De Vries, Albert, 2013. "Dairy productivity and climatic conditions: econometric evidence from South-eastern united States," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 57(1), pages 1-18.
    • Handle: RePEc:ags:aareaj:233837
    DOI: 10.22004/ag.econ.233837
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    8. Ahmad, Munir & Boris E., Bravo-Ureta, 1996. "Technical efficiency measures for dairy farms using panel data: a comparison of alternative model specifications," MPRA Paper 37703, University Library of Munich, Germany.
    9. Boris Bravo-Ureta & William Greene & Daniel Solís, 2012. "Technical efficiency analysis correcting for biases from observed and unobserved variables: an application to a natural resource management project," Empirical Economics, Springer, vol. 43(1), pages 55-72, August.
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    Cited by:

    1. Bell, Kendon, 2017. "Empirical estimation of the impact of weather on dairy production," 2017 Conference, October 19-20, Rotorua, New Zealand 269521, New Zealand Agricultural and Resource Economics Society.
    2. Lachaud, Michee Arnold & Bravo-Ureta, Boris E. & Ludena, Carlos E., 2015. "Agricultural productivity growth in Latin America and the Caribbean and other world regions: An analysis of climatic effects, convergence and catch-up," Working Papers 40, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    3. Jose A. Perez‐Mendez & David Roibas & Alan Wall, 2019. "The influence of weather conditions on dairy production," Agricultural Economics, International Association of Agricultural Economists, vol. 50(2), pages 165-175, March.
    4. Kehinde Oluseyi Olagunju & Erin Sherry & Aurelia Samuel & Paul Caskie, 2022. "Unpacking Total Factor Productivity on Dairy Farms Using Empirical Evidence," Agriculture, MDPI, vol. 12(2), pages 1-13, February.
    5. Njuki, Eric, 2022. "Sources, Trends, and Drivers of U.S. Dairy Productivity and Efficiency," Economic Research Report 320329, United States Department of Agriculture, Economic Research Service.
    6. Qi, Lingqiao & Bravo-Ureta, Boris E. & Cabrera, Victor E., 2014. "From Cold To Hot: A Preliminary Analysis Of Climatic Effects On The Productivity Of Wisconsin Dairy Farms," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 172411, Agricultural and Applied Economics Association.
    7. Lisandro Roco & Boris Bravo-Ureta & Alejandra Engler & Roberto Jara-Rojas, 2017. "The Impact of Climatic Change Adaptation on Agricultural Productivity in Central Chile: A Stochastic Production Frontier Approach," Sustainability, MDPI, vol. 9(9), pages 1-16, September.
    8. Hutchins, Jared P. & Gong, Yating & Du, Xiaodong, 2021. "The Role of Animal Breeding in Productivity Growth: Evidence from Wisconsin Dairy Farms," 2021 Annual Meeting, August 1-3, Austin, Texas 313882, Agricultural and Applied Economics Association.
    9. Njuki, Eric & Bravo-Ureta, Boris, 2014. "A Bayesian Approach to Analyzing the Economic Costs of Environmental Regulation in U.S. Dairy Farming," Working Papers 33, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    10. Michee Arnold Lachaud & Boris E. Bravo-Ureta & Carlos E. Ludena, 2017. "Agricultural productivity in Latin America and the Caribbean in the presence of unobserved heterogeneity and climatic effects," Climatic Change, Springer, vol. 143(3), pages 445-460, August.
    11. repec:ags:aaea22:335579 is not listed on IDEAS
    12. Key, Nigel D. & Sneeringer, Stacy & Marquardt, David, 2014. "Climate Change, Heat Stress, and U.S. Dairy Production," Economic Research Report 186731, United States Department of Agriculture, Economic Research Service.
    13. Roibás, David & Wall, Alan & Pérez, José A., 2014. "The influence of meteorological conditions on dairy production," Efficiency Series Papers 2014/02, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    14. Jared Hutchins & Yating Gong & Xiaodong Du, 2024. "The role of animal breeding in productivity growth: Evidence from Wisconsin dairy farms," American Journal of Agricultural Economics, John Wiley & Sons, vol. 106(1), pages 286-305, January.
    15. Zoltán Bakucs & Imre Fertő & Enikő Vígh, 2020. "Crop Productivity and Climatic Conditions: Evidence from Hungary," Agriculture, MDPI, vol. 10(9), pages 1-12, September.
    16. Gabriela Pérez Quesada, 2017. "Technical efficiency of dairy farms in Uruguay: a stochastic production frontier analysis," Documentos de Trabajo (working papers) 0517, Department of Economics - dECON.
    17. Eric Njuki & Boris E Bravo-Ureta & Víctor E Cabrera, 2020. "Climatic effects and total factor productivity: econometric evidence for Wisconsin dairy farms," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 47(3), pages 1276-1301.
    18. Eric Njuki & Boris E Bravo-Ureta & Christopher J O’Donnell, 2018. "A new look at the decomposition of agricultural productivity growth incorporating weather effects," PLOS ONE, Public Library of Science, vol. 13(2), pages 1-21, February.
    19. Lachaud, Michee & Bravo-Ureta, Boris & Ludena, Carlos, 2015. "Agricultural Productivity Growth in Latin America and the Caribbean (LAC): An analysis of Climatic Effects, Convergence, and Catch-up," 2015 Conference, August 9-14, 2015, Milan, Italy 211721, International Association of Agricultural Economists.

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