IDEAS home Printed from https://ideas.repec.org/a/ers/journl/vxxivy2021i3bp993-1011.html
   My bibliography  Save this article

Income Situation of Dairy Farms in European Union Countries: A Synthetic Approach

Author

Listed:
  • Joanna Sredzinska
  • Pawel Sieminski
  • Monika Godek

Abstract

Purpose: The purpose of this paper is to determine the market position of Polish milk producers based on a synthetic assessment of the profitability of dairy farms compared to their business partners in the European Union in 2013–2017. Design/Methodology/Approach: Source materials used in this analysis was 2013–2017 data for the “dairy cows” type of farming, as retrieved from the FADN. A synthetic characteristic was used to carry out a summary assessment of dairy farms’ income situation; its value was determined without making a reference to an ideal solution. Findings: This study revealed the large complexity and heterogeneity of income situation of Union’s milk producers. Only some farms engaged in milk production have enough income to be able to continue or develop milk production in the coming years. At the same time, a significant part of dairy farms find themselves in a poor income situation, as confirmed by a negative production profitability ratio. These farms will face considerable development challenges in the future. It follows from this study that some of the Polish dairy farms face major restructuring and modernization challenges. Also, a part of them are likely to discontinue milk production in the future. Practical implications: Findings from this study can be used by the Union’s agricultural policymakers and by agricultural producers and their associations. The results identify the countries where dairy farms are likely to be competitive in the future and those where dairy farms face major development challenges. Originality/value: The results of this comparative analysis supplement previous research on the profitability of dairy farms. This paper proposes the use of linear ordering in assessing the profitability of dairy farms.

Suggested Citation

  • Joanna Sredzinska & Pawel Sieminski & Monika Godek, 2021. "Income Situation of Dairy Farms in European Union Countries: A Synthetic Approach," European Research Studies Journal, European Research Studies Journal, vol. 0(3B), pages 993-1011.
    • Handle: RePEc:ers:journl:v:xxiv:y:2021:i:3b:p:993-1011
    as

    Download full text from publisher

    File URL: https://ersj.eu/journal/2552/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Pierre Damien Ntihinyurwa & Walter Timo de Vries, 2021. "Farmland Fragmentation, Farmland Consolidation and Food Security: Relationships, Research Lapses and Future Perspectives," Land, MDPI, vol. 10(2), pages 1-39, January.
    2. Lehtonen, Heikki, 2008. "Impact Of Phasing Out Milk Quotas On Structure And Production Of Finnish Dairy Sector," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6465, European Association of Agricultural Economists.
    3. Guiomar, N. & Godinho, S. & Pinto-Correia, T. & Almeida, M. & Bartolini, F. & Bezák, P. & Biró, M. & Bjørkhaug, H. & Bojnec, Š. & Brunori, G. & Corazzin, M. & Czekaj, M. & Davidova, S. & Kania, J. & K, 2018. "Typology and distribution of small farms in Europe: Towards a better picture," Land Use Policy, Elsevier, vol. 75(C), pages 784-798.
    4. Popa, Daniela Grigore & Dinu, Toma Adrian, 2015. "Correlations Between Fragmentation of Farms in the Republic of Moldova and its Impact on Farm Incomes Compared to Poland and Romania," Problems of World Agriculture / Problemy Rolnictwa Światowego, Warsaw University of Life Sciences, vol. 15(30), pages 1-14, December.
    5. Boulanger, Pierre & Philippidis, George, 2015. "The EU budget battle: Assessing the trade and welfare impacts of CAP budgetary reform," Food Policy, Elsevier, vol. 51(C), pages 119-130.
    6. Alpmann, Jan & Bitsch, Vera, 2017. "Dynamics of asymmetric conflict: The case of the German Milk Conflict," Food Policy, Elsevier, vol. 66(C), pages 62-72.
    7. Binfield, Julian C.R. & Donnellan, Trevor & Hanrahan, Kevin F., 2008. "An Examination of Milk Quota expansion at EU member State Level with specific emphasis on Ireland," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6467, European Association of Agricultural Economists.
    8. Malak-Rawlikowska, Agata & Milczarek-Andrzejewska, Dominika, 2016. "How do Farmers interact with Input Suppliers: Some Evidence from the Dairy Sector in Poland," 2016 International European Forum (151st EAAE Seminar), February 15-19, 2016, Innsbruck-Igls, Austria 244537, International European Forum on System Dynamics and Innovation in Food Networks.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rūta Savickienė & Aistė Galnaitytė, 2024. "Unveiling Determinants of Successful Dairy Farm Performance from Dairy Exporting EU Countries," Agriculture, MDPI, vol. 14(7), pages 1-24, July.

    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. Joanna Sredzinska & Pawel Sieminski & Natalia Marciniak, 2021. "Regional Diversification of Financial Situation of the Horticultural Farms in European Union Countries," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 4), pages 819-836.
    2. Piotr Borawski & Adam Pawlewicz & Bartosz Mickiewicz & Katarzyna Pawlewicz & Aneta Bełdycka-Borawska & Lisa Holden & Agnieszka Brelik, 2020. "Economic Sustainability of Dairy Farms in the EU," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 955-978.
    3. Piotr Bórawski & Adam Pawlewicz & Andrzej Parzonko & Jayson, K. Harper & Lisa Holden, 2020. "Factors Shaping Cow’s Milk Production in the EU," Sustainability, MDPI, vol. 12(1), pages 1-15, January.
    4. Antimiani, Alessandro & Finizia, A. & Henke, Roberto & Manfredi, G. & Merciai, S., 2008. "The impact of the reform of the milk quota regime on the Italian dairy sector," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43658, European Association of Agricultural Economists.
    5. Piotr Bórawski & Marta Guth & Andrzej Parzonko & Tomasz Rokicki & Aleksandra Perkowska & James William Dunn, 2021. "Price volatility of milk and dairy products in Poland after accession to the EU," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(3), pages 111-119.
    6. Marcin Pigłowski, 2021. "The Intra-European Union Food Trade with the Relation to the Notifications in the Rapid Alert System for Food and Feed," IJERPH, MDPI, vol. 18(4), pages 1-19, February.
    7. Mark Christopher Navin & J. M. Dieterle, 2018. "Cooptation or solidarity: food sovereignty in the developed world," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 35(2), pages 319-329, June.
    8. Boulanger, Pierre H & Dudu, Hasan & Ferrari, Emanuele & M'barek, Robert & Philippidis, George, 2017. "2030 European agricultural policy: A new CAP at a crossroad between market competitiveness and sustainability," Conference papers 332882, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    9. Yari Vecchio & Paolo De Castro & Margherita Masi & Felice Adinolfi, 2021. "Do Rural Development Policies Really Help Small Farms? A Reflection from Italy," EuroChoices, The Agricultural Economics Society, vol. 20(3), pages 75-80, December.
    10. Gohin, Alexandre & Zheng, Yu, 2015. "Assessing the Market Impacts of the Common Agricultural Policy: Does Farmers’ Risk Attitude Matter?," 2015: Trade and Societal Well-Being, December 13-15, 2015, Clearwater Beach, Florida 229235, International Agricultural Trade Research Consortium.
    11. Urban, Kirsten & Jensen, Hans G. & Brockmeier, Martina, 2016. "How decoupled is the Single Farm Payment and does it matter for international trade?," Food Policy, Elsevier, vol. 59(C), pages 126-138.
    12. Stępień Sebastian & Smędzik-Ambroży Katarzyna & Polcyn Jan & Kwiliński Aleksy & Maican Ionut, 2023. "Are small farms sustainable and technologically smart? Evidence from Poland, Romania, and Lithuania," Central European Economic Journal, Sciendo, vol. 10(57), pages 116-132, January.
    13. Ar. R. T. Hidayat & Corinthias P. M. Sianipar & Shizuka Hashimoto & Satoshi Hoshino & Muhammad Dimyati & Ahmad E. Yustika, 2023. "Personal Cognition and Implicit Constructs Affecting Preferential Decisions on Farmland Ownership: Multiple Case Studies in Kediri, East Java, Indonesia," Land, MDPI, vol. 12(10), pages 1-23, September.
    14. Boysen-Urban, Kirsten & Boysen, Ole & Matthews, Alan & Brockmeier, Martina, 2018. "EU Common Agricultural Policy Post-2020: Exploring the Effects of Safety-Net Policy Instruments," Conference papers 332991, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    15. Alexandre Gohin & Yu Zheng, 2016. "Assessing the Market Impacts of the Common Agricultural Policy: Does Farmers' Risk Attitude Matter?," FOODSECURE Working papers 46, LEI Wageningen UR.
    16. Anthony N. Rezitis, 2019. "Investigating price transmission in the Finnish dairy sector: an asymmetric NARDL approach," Empirical Economics, Springer, vol. 57(3), pages 861-900, September.
    17. Marlen Haß, 2022. "Coupled support for sugar beet in the European Union: Does it lead to market distortions?," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(1), pages 86-111, February.
    18. Montserrat Costa†Font & Cesar Revoredo†Giha, 2018. "An empirical analysis of U.K. milk contract prices 2004–2016," Agribusiness, John Wiley & Sons, Ltd., vol. 34(1), pages 112-141, December.
    19. Pierre Boulanger & George Philippidis, 2015. "The End of a Romance? A Note on the Quantitative Impacts of a ‘Brexit’ from the EU," Journal of Agricultural Economics, Wiley Blackwell, vol. 66(3), pages 832-842, September.
    20. George Philippidis & Robert M’barek & Emanuele Ferrari, 2016. "Drivers of the European Bioeconomy in Transition (BioEconomy2030): an exploratory, model-based assessment," JRC Research Reports JRC98160, Joint Research Centre.

    More about this item

    Keywords

    Dairy farms; FADN; synthetic characteristic; EU; income situation.;
    All these keywords.

    JEL classification:

    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance

    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:ers:journl:v:xxiv:y:2021:i:3b:p:993-1011. 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: Marios Agiomavritis (email available below). General contact details of provider: https://ersj.eu/ .

    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.