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Productivity and Efficiency in European Milk Production: Can We Observe the Effects of Abolishing Milk Quotas?

Author

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  • Lukáš Čechura

    (Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences Prague, Kamýcká 129, 16500 Prague, Czech Republic)

  • Zdeňka Žáková Kroupová

    (Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences Prague, Kamýcká 129, 16500 Prague, Czech Republic)

  • Irena Benešová

    (Department of Economics, Faculty of Economics and Management, Czech University of Life Sciences Prague, Kamýcká 129, 16500 Prague, Czech Republic)

Abstract

The study aims to explore the sources of competitiveness of dairy producers before and after the abolition of milk quotas in selected EU member states. The investigation is based on the stochastic frontier modelling of an input distance function in the specification of the four-error-component model. The model is estimated with a multistep procedure employing the generalized method of moments estimator, addressing the potential endogeneity of netputs, and panel data gained from the FADN database. The results revealed that total factor productivity experienced an increasing trend in the majority of the analysed countries. Since the main driver of productivity growth was found to be the scale effect, our findings support the hypothesis that abolishing milk quotas has a positive effect.

Suggested Citation

  • Lukáš Čechura & Zdeňka Žáková Kroupová & Irena Benešová, 2021. "Productivity and Efficiency in European Milk Production: Can We Observe the Effects of Abolishing Milk Quotas?," Agriculture, MDPI, vol. 11(9), pages 1-21, August.
    • Handle: RePEc:gam:jagris:v:11:y:2021:i:9:p:835-:d:626526
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    3. Frederic Ang & Stephen J. Ramsden, 2024. "Analysing determinate components of an approximated Luenberger–Hicks–Moorsteen productivity indicator: An application to German dairy‐processing firms," Agribusiness, John Wiley & Sons, Ltd., vol. 40(2), pages 349-370, April.
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    5. Georgia Koutouzidou & Athanasios Ragkos & Alexandros Theodoridis & Georgios Arsenos, 2022. "Entrepreneurship in Dairy Cattle Sector: Key Features of Successful Administration and Management," Land, MDPI, vol. 11(10), pages 1-13, October.

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