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Diversification in Spanish Dairy Farms: Key Drivers of Performance

Author

Listed:
  • Alvarez, Antonio
  • Garcia-Cornejo, Beatriz
  • Perez-Mendez, Jose A.
  • Roibas, David

Abstract

Recent downward trends in milk prices and the abolition of European Union (EU) milk production quotas have raised questions among Spanish farmers exploring whether diversification initiatives are profitable. The objective of this paper is to provide empirical evidence measuring the financial performance of value-added dairy farm ventures. The study analyzes forty-nine farms in Northern Spain that have diversified activities through milk commercialization and related niche products. Data collected through in-depth interviews with farmers shows that knowledge management, management control systems (MCS) and a differentiated value proposition for customers positively affect performance. Contrary to what is expected, networks and the technological level of the ventures (innovation of the production process and the use of IT systems) do not assure positive performance outcomes.

Suggested Citation

  • Alvarez, Antonio & Garcia-Cornejo, Beatriz & Perez-Mendez, Jose A. & Roibas, David, 2016. "Diversification in Spanish Dairy Farms: Key Drivers of Performance," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(B), pages 1-26, August.
    • Handle: RePEc:ags:ifaamr:244626
    DOI: 10.22004/ag.econ.244626
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    References listed on IDEAS

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