Author(s): Ľubica Bartová, Peter Fandel, Jaroslava Košařová
Title: Regional Differences in the Slovak Dairy Farm Performance
Source: International Scientific Days 2018 :: Towards Productive, Sustainable and Resilient Global Agriculture and Food Systems :: Proceedings
ISBN: 978-80-7598-180-6
DOI: https://doi.org/10.15414/isd2018.s13.03
Publisher: Wolters Kluwer ČR, Prague
PY, pages: 2018, 2390-2405
Published on-line: 2018-11-09
Language: eng
Abstract: Milk sector in Slovakia significantly contributes to the domestic agricultural production
in terms of value. In the paper we analysed regional differences in productivity and efficiency
of dairy farms in Slovakia with regard to pooled sample technological frontier as
well as with regard to particular regional frontiers over period 2004-2008. Technical efficiency
and productivity changes were expressed by the Malmquist indices and estimated
by non-parametric DEA. We used balanced panel FADN data of 106 dairy farms with
prevailing dairy production. Dairy farms in all regions showed technical inefficiency,
ranging from 11% in Western Slovakia (WS) to 23% in Eastern Slovakia. Western Slovakia
dairy farms were the most efficient, with the highest level of technical efficiency and
higher homogeneity of the farm performance. Differences in total technical efficiency,
calculated with regard to both, the common and particular region frontier, result from
differences in managerial efficiency rather than from differences in scale efficiency. We
found only minor total factor productivity (TFP) improvement over the observed period.
The highest average yearly productivity growth was observed in 2007 when the new programming
period of RDP started and direct payments per livestock unit were introduced.
The TFP growth resulted more from technological progress than from technical efficiency
improvement and this technical efficiency change was driven mainly by managerial efficiency
improvement. The highest TFP growth achieved Western and Eastern Slovakian
farms, while the highest managerial efficiency improvement reached farms in Eastern
Slovakia. Our findings suggest that policies designed to support improvement of efficiency
of the Slovak dairy farm would have been desired.
Keywords: Data envelopment analysis, dairy farms, efficiency, Malmquist indices,
productivity
JEL Classification: C61, Q12
Rights:Open Access :: Creative Commons BY-NC-SA 4.0 International Licence
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