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Change in the production efficiency of European specialized milk farming

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  • Jindřich ŠPIČKA

    (Department of Strategy, Faculty of Business Administration, University of Economics, Prague, Czech Republic)

  • Ondřej MACHEK

    (Department of Strategy, Faculty of Business Administration, University of Economics, Prague, Czech Republic)

Abstract

The aim of the article is to identify the key structural, yield and economic determinants of the change in regional efficiency of specialized milk farms over the period 2007 to 2011. The following quantitative methods were applied on the regional FADN data (panel data of 100 regions): the Malmquist productivity index, the Welsh two-sample t-test, and the linear regression analysis. The article put emphasis on the investment activity and investment subsidies allocated in the sample of regions. The results reveal that regions with a positive change in the production efficiency have a significantly higher average milk yield, maize yield, long-term debt ratio, income level, and investment activity than the regions with a negative change in the production efficiency. On the contrary, investment subsidies per livestock unit do not significantly differ between the progressive and other regions. Investment subsidies are slightly higher in the regions with a negative change in the production efficiency and continuously help them to mitigate the drop in technical efficiency.

Suggested Citation

  • Jindřich ŠPIČKA & Ondřej MACHEK, 2015. "Change in the production efficiency of European specialized milk farming," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 61(1), pages 1-13.
    • Handle: RePEc:caa:jnlage:v:61:y:2015:i:1:id:112-2014-agricecon
    DOI: 10.17221/112/2014-AGRICECON
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    Cited by:

    1. Lenka KRPALKOVA & Victor E. CABRERA & Jindřich KVAPILIK & Jiri BURDYCH, 2016. "Dairy farm profit according to the herd size, milk yield, and number of cows per worker," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 62(5), pages 225-234.
    2. Sebastián Lozano & Belarmino Adenso-Díaz, 2021. "A DEA approach for merging dairy farms," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(6), pages 209-219.
    3. Grzelak, Aleksander, 2023. "Return on Assets in Farms and the Context of Economic Rationality in Poland and Selected European Union Countries," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2023(4).
    4. Emilia HERMAN, 2016. "Improving agricultural performance for the working poverty reduction in the European Union," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 62(6), pages 247-259.
    5. Zhai, Shixian & Peng, Chao & Sheng, Yu, 2023. "Assessing the impact of digital financial inclusion on agricultural total factor productivity in China," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 26(3), January.

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