IDEAS home Printed from https://ideas.repec.org/a/ags/aolpei/348991.html
   My bibliography  Save this article

Economic Assessment of Small-Scale Mountain Dairy Farms by Using Accounting Data: Evidence from an Italian Case Study

Author

Listed:
  • Staffolani, Giacomo
  • Bentivoglio, Deborah
  • Finco, Adele

Abstract

Dairy mountain farms are economically disadvantaged due to small farm sizes and high production costs. This situation was exacerbated firstly by the opening of the market linked to the abolition of milk quotas; secondly by the rising prices due to the energy crisis due to covid 19 and the war in Ukraine. However, these farms are important for the preservation of traditional landscapes, the economy of these areas and the offered ecosystem services, especially when they are managed extensively. The objective of this research is to understand if mountain dairy farms are economically sustainable and competitive through the analysis of a case study. The economic analysis takes into account the production cost of milk, profitability, and some economic indicators using accounting data. The results show that the farm profitability is decreasing, and the costs are unsustainable. As a consequence, more efficient policy support is needed to overcome this crisis.

Suggested Citation

  • Staffolani, Giacomo & Bentivoglio, Deborah & Finco, Adele, 2024. "Economic Assessment of Small-Scale Mountain Dairy Farms by Using Accounting Data: Evidence from an Italian Case Study," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 16(3), September.
    • Handle: RePEc:ags:aolpei:348991
    DOI: 10.22004/ag.econ.348991
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/348991/files/629_agris-on-line-3-2024-staffolani-bentivoglio-finco.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.348991?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Magali Aubert & Philippe Perrier‐Cornet, 2009. "Is there a future for small farms in developed countries? Evidence from the French case," Agricultural Economics, International Association of Agricultural Economists, vol. 40(s1), pages 797-806, November.
    2. Lips, Markus, 2014. "Calculating full costs for Swiss dairy farms in the mountain region using a maximum entropy approach for joint-cost allocation," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 3(3), pages 1-9.
    3. Roel Jongeneel & Ana Gonzalez-Martinez, 2022. "EU Dairy after the Quota Abolition: Inelastic Asymmetric Price Responsiveness and Adverse Milk Supply during Crisis Time," Agriculture, MDPI, vol. 12(12), pages 1-16, November.
    4. Marie Dervillé & Gilles Allaire & Élise Maigné & Éric Cahuzac, 2017. "Internal and contextual drivers of dairy restructuring: evidence from French mountainous areas and post†quota prospects," Agricultural Economics, International Association of Agricultural Economists, vol. 48(1), pages 91-103, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Derek Byerlee & Klaus Deininger, 2013. "The Rise of Large Farms in Land-Abundant Countries: Do They Have a Future?," Palgrave Macmillan Books, in: Stein T. Holden & Keijiro Otsuka & Klaus Deininger (ed.), Land Tenure Reform in Asia and Africa, chapter 14, pages 333-353, Palgrave Macmillan.
    2. DESBOIS, Dominique, 2015. "La qualité du lait a-t-elle un prix ? Une estimation hédonique de la valeur des attributs spécifiques du lait de vache," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 96(3), September.
    3. Magali Aubert & Geoffroy Enjolras, 2015. "Are short food supply chains a solution for farms facing financial difficulties?," Post-Print hal-02800273, HAL.
    4. Aubert, Magali & Enjolras, Geoffroy, 2016. "Which stability for marketing channels? The case of short food supply chains in French agriculture," 149th Seminar, October 27-28, 2016, Rennes, France 244895, European Association of Agricultural Economists.
    5. Bignebat, C. & Bosc, P.M. & Perrier-Cornet, P., 2015. "A labour-based approach to the analysis of structural transformation: Application to French agricultural holdings 2000," Working Papers MoISA 201501, UMR MoISA : Montpellier Interdisciplinary center on Sustainable Agri-food systems (social and nutritional sciences): CIHEAM-IAMM, CIRAD, INRAE, L'Institut Agro, Montpellier SupAgro, IRD - Montpellier, France.
    6. Aubert, Magali & Enjoylras, Geoffroy, 2016. "Analyse financière des exploitations fruitières et maraîchères françaises qui vendent au détail," Économie rurale, French Society of Rural Economics (SFER Société Française d'Economie Rurale), vol. 356(November-).
    7. Geoffroy Enjolras & Philippe Madiès, 2020. "The role of bank analysts and scores in the prediction of financial distress: Evidence from French farms," Economics Bulletin, AccessEcon, vol. 40(4), pages 2978-2993.
    8. A. Bailey & S. Davidova & P. Hazell, 2009. "Introduction to the special issue “small farms: decline or persistence?”," Agricultural Economics, International Association of Agricultural Economists, vol. 40(s1), pages 715-717, November.
    9. Geoffroy Enjolras & Magali Aubert, 2014. "Le mode de commercialisation est-il une échappatoire pour les exploitations en difficulté financière ?," Post-Print hal-02047868, HAL.
    10. Provost, Jennifer & Rosero, Gabriel & Brümmer, Bernhard & Schlecht, Eva, 2022. "To sell, not to sell, or to quit: Exploring milk producers’ approaches after a supply chain disruption in Northwest Cameroon," World Development, Elsevier, vol. 150(C).
    11. Arita, Shawn & Hemanchandra, Dilini & Leung, PingSun, 2014. "Can Local Farms Survive Globalization?," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 43(2), pages 1-22, August.
    12. Teresa Hooks & Áine Macken-Walsh & Olive McCarthy & Carol Power, 2017. "The Impact of a Values-Based Supply Chain (VBSC) on Farm-Level Viability, Sustainability and Resilience: Case Study Evidence," Sustainability, MDPI, vol. 9(2), pages 1-19, February.
    13. Dino Genovese & Francesca Culasso & Elisa Giacosa & Luca Maria Battaglini, 2017. "Can Livestock Farming and Tourism Coexist in Mountain Regions? A New Business Model for Sustainability," Sustainability, MDPI, vol. 9(11), pages 1-21, November.
    14. Kubala, Sebastian & Stanuch, Marcin, 2023. "Evaluation of the Level of Self-Sufficiency of Cow's Milk Production in the Countries of Central and Eastern Europe," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2023(01).
    15. Bingham, Logan Robert, 2021. "Vittel as a model case in PES discourse: Review and critical perspective," Ecosystem Services, Elsevier, vol. 48(C).
    16. Fertő, Imre & Bojnec, Štefan & Iwasaki, Ichiro & Shida, Yoshisada, 2024. "Why do corporate farms survive in Central and Eastern Europe?," Agricultural Systems, Elsevier, vol. 218(C).
    17. Enjolras, Geoffroy & Madiès, Philippe, 2017. "The determinants of financial distress in French farms: Analysts versus Algorithms," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259168, Agricultural and Applied Economics Association.
    18. Magali Aubert, 2015. "The determinants of selling through a short food supply chains: an application to the French case," Post-Print hal-01296422, HAL.
    19. Pauline Lécole, 2015. "Paysage des petites exploitationsagricoles en France:Typologie et analyse statistique," Post-Print hal-01417734, HAL.
    20. Rūta Savickienė & Aistė Galnaitytė, 2024. "Unveiling Determinants of Successful Dairy Farm Performance from Dairy Exporting EU Countries," Agriculture, MDPI, vol. 14(7), pages 1-23, July.

    More about this item

    Keywords

    Dairy Farming;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aolpei:348991. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/fevszcz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.