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Is Sustainability Compatible with Profitability? An Empirical Analysis on Family Farming Activity

Author

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  • Laura Piedra-Muñoz

    (Department of Economics and Business, University of Almería (Agrifood Campus of International Excellence, ceiA3), Ctra. Sacramento s/n, 04120 Almería, Spain)

  • Emilio Galdeano-Gómez

    (Department of Economics and Business, University of Almería (Agrifood Campus of International Excellence, ceiA3), Ctra. Sacramento s/n, 04120 Almería, Spain)

  • Juan C. Pérez-Mesa

    (Department of Economics and Business, University of Almería (Agrifood Campus of International Excellence, ceiA3), Ctra. Sacramento s/n, 04120 Almería, Spain)

Abstract

Sustainability is a social concern and a new strategic factor for productive and economic viability. Nevertheless, research on this subject in a holistic approach is limited, and even to a lesser extent when dealing with family farms. This paper analyzes the impact of different aspects of sustainability (socio-economic characteristics, environmentally respectful practices, and innovation) on profitability. The data collection instruments include a survey questionnaire on farming in Almería, a province in Southeast Spain, and the methodology followed involves a two-step regression model. The main results show how several socio-economic and environmental-innovation features of family farms have positive effects on their economic performance. Among others, profitability increases when there are better educated and younger family farm decision-makers; the farm is specialized and supported by more efficient cooperatives: and, particularly, when the family farm displays greater concern for environmental practices and better disposition towards agroecological innovation.

Suggested Citation

  • Laura Piedra-Muñoz & Emilio Galdeano-Gómez & Juan C. Pérez-Mesa, 2016. "Is Sustainability Compatible with Profitability? An Empirical Analysis on Family Farming Activity," Sustainability, MDPI, vol. 8(9), pages 1-15, September.
    • Handle: RePEc:gam:jsusta:v:8:y:2016:i:9:p:893-:d:77380
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    2. Piotr Sulewski & Anna Kłoczko-Gajewska & Wojciech Sroka, 2018. "Relations between Agri-Environmental, Economic and Social Dimensions of Farms’ Sustainability," Sustainability, MDPI, vol. 10(12), pages 1-23, December.
    3. Dwi Ratna Hidayati & Elena Garnevska & Paul Childerhouse, 2021. "Sustainable Agrifood Value Chain—Transformation in Developing Countries," Sustainability, MDPI, vol. 13(22), pages 1-20, November.
    4. Juan Carlos Pérez-Mesa & Laura Piedra-Muñoz & Mª Carmen García-Barranco & Cynthia Giagnocavo, 2019. "Response of Fresh Food Suppliers to Sustainable Supply Chain Management of Large European Retailers," Sustainability, MDPI, vol. 11(14), pages 1-24, July.
    5. Emily A. Paskewitz, 2021. "Exploring the Impact of Emotional Intelligence on Family Farm Member Conflict Experiences," Sustainability, MDPI, vol. 13(15), pages 1-18, July.
    6. Beatriz García-Cornejo & José A. Pérez-Méndez & David Roibás & Alan Wall, 2020. "Efficiency and Sustainability in Farm Diversification Initiatives in Northern Spain," Sustainability, MDPI, vol. 12(10), pages 1-18, May.
    7. Paweł Chmieliński & Wioletta Wrzaszcz & Marek Zieliński & Marek Wigier, 2022. "Intensity and Biodiversity: The ‘Green’ Potential of Agriculture and Rural Territories in Poland in the Context of Sustainable Development," Energies, MDPI, vol. 15(7), pages 1-19, March.
    8. Sipan Li & Qunxi Gong & Shaolei Yang, 2019. "A Sustainable, Regional Agricultural Development Measurement System Based on Dissipative Structure Theory and the Entropy Weight Method: A Case Study in Chengdu, China," Sustainability, MDPI, vol. 11(19), pages 1-15, September.
    9. Theodoros Skevas & Ioannis Skevas & Victor E. Cabrera, 2021. "Examining the Relationship between Social Inefficiency and Financial Performance. Evidence from Wisconsin Dairy Farms," Sustainability, MDPI, vol. 13(7), pages 1-14, March.
    10. María E. Pérez-Pons & Marta Plaza-Hernández & Ricardo S. Alonso & Javier Parra-Domínguez & Javier Prieto, 2020. "Increasing Profitability and Monitoring Environmental Performance: A Case Study in the Agri-Food Industry through an Edge-IoT Platform," Sustainability, MDPI, vol. 13(1), pages 1-16, December.
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    12. Cristina Keiko Yamaguchi & Stéfano Frizzo Stefenon & Ney Kassiano Ramos & Vanessa Silva dos Santos & Fernanda Forbici & Anne Carolina Rodrigues Klaar & Fernanda Cristina Silva Ferreira & Alessandra Ca, 2020. "Young People’s Perceptions about the Difficulties of Entrepreneurship and Developing Rural Properties in Family Agriculture," Sustainability, MDPI, vol. 12(21), pages 1-12, October.

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