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Total factor productivity change of Swiss dairy farms in the mountain region in the period 1999 to 2008

Author

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  • Pierrick Jan

    (Agroscope Reckenholz-Tänikon Research Station ART, Farm Economics Research Group, Tänikon 1, 8356 Ettenhausen, Switzerland)

  • Markus Lips
  • Michel Dumondel

Abstract

In the present contribution we assess the total factor productivity (TFP) change in the period 1999- 2008 of Swiss dairy farms located in the mountain region using the Malmquist productivity index. We furthermore analyze the robustness of the results of this assessment to the effect of the type of panel used and to different modeling options regarding the inclusion of the ecological and ethological direct payments in the output set. The yearly TFP growth is shown to vary between +1.3% and +3.0% depending on the panel type and modelling option chosen. The results of our work suggest that the TFP growth rate of Swiss dairy farms in the mountain region is not lower than the levels observed in the dairy sector of other European countries. More generally, our investigation shows how sensitive the results of TFP change assessments are to data-related methodological choices and thus highlights the necessity of considering this issue when performing such assessments.

Suggested Citation

  • Pierrick Jan & Markus Lips & Michel Dumondel, 2012. "Total factor productivity change of Swiss dairy farms in the mountain region in the period 1999 to 2008," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 93(3), pages 273-298.
    • Handle: RePEc:rae:jourae:v:93:y:2012:i:3:p:273-298
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    Cited by:

    1. Kantelhardt, Jochen & Kapfer, Martin & Franzel, Martin & Kirchweger, Stefan, 2013. "Development of Efficiency in Alpine Farming - A Combination of the Malmquist Index Approach and Matching–," 53rd Annual Conference, Berlin, Germany, September 25-27, 2013 156136, German Association of Agricultural Economists (GEWISOLA).
    2. Nina Repar & Pierrick Jan & Thomas Nemecek & Dunja Dux & Reiner Doluschitz, 2018. "Factors Affecting Global versus Local Environmental and Economic Performance of Dairying: A Case Study of Swiss Mountain Farms," Sustainability, MDPI, vol. 10(8), pages 1-21, August.
    3. Hoop, Daniel & Mack, Gabriele & Mann, Stefan & Schmid, Dierk, 2014. "On the dynamics of agricultural labour input and their impact on productivity and income: an empirical study of Swiss family farms," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 3(4), pages 1-11.

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    More about this item

    Keywords

    Swiss dairy farming; mountain agriculture; Total Factor Productivity growth; Malmquist index; sensitivity analysis; agri-environmental direct payments;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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