Identifying and assessing intensive and extensive technologies in European dairy farming

Laure Latruffe, Andreas Niedermayr, Yann Desjeux, K. Herve Dakpo, Kassoum Ayouba, Lena Schaller, Jochen Kantelhardt, Yan Jin, Kevin Kilcline, Mary Ryan and Cathal O’donoghue
Additional contact information
Andreas Niedermayr: Institute of Agricultural and Forestry Economics, Department of Economics and Social Sciences, University of Natural Resources and Life Sciences, Vienna, Austria
K. Herve Dakpo: UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, ETH Zürich - Eidgenössische Technische Hochschule - Swiss Federal Institute of Technology [Zürich]
Lena Schaller: Institute of Agricultural and Forestry Economics, Department of Economics and Social Sciences, University of Natural Resources and Life Sciences, Vienna, Austria
Jochen Kantelhardt: Institute of Agricultural and Forestry Economics, Department of Economics and Social Sciences, University of Natural Resources and Life Sciences, Vienna, Austria
Yan Jin: Center for Agro-food Economics and Development (CREDA-UPC-IRTA), Technical University of Catalonia, Castelldefels, Spain
Kevin Kilcline: Mellows Campus, Teagasc Rural Economy and Development Centre, Athenry, Co. Galway, Ireland
Mary Ryan: Mellows Campus, Teagasc Rural Economy and Development Centre, Athenry, Co. Galway, Ireland
Cathal O’donoghue: NUI Galway - National University of Ireland [Galway]

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Abstract: In order to tackle climate change and biodiversity loss, the European Union (EU) promotes extensive farming. However, identifying such farms across countries and assessing their performance for policy purposes remains challenging. This paper combines a latent class stochastic frontier model (LCSFM) with a novel nested metafrontier approach. The resulting model enables the identification of intensive and extensive farms across countries, estimation of farm efficiency and identification of different technology gaps. Based on Farm Accountancy Data Network data of French, Irish and Austrian dairy farms,we find poorer environmental but better economic performance of intensive farms, compared to extensive farms. The largest productivity differences stem from technology gaps and not from inefficiency. The approach enables a more nuanced analysis of sources of inefficiency to assist policy design for future green payments in the EU.

Keywords: efficiency; dairy farms; latent class stochastic frontier; nested metafrontiers; European Union (search for similar items in EconPapers)
Date: 2023-07-05
New Economics Papers: this item is included in nep-agr, nep-eff and nep-env
Note: View the original document on HAL open archive server: https://hal.science/hal-04159101v1
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Citations: View citations in EconPapers (2)

Published in European Review of Agricultural Economics, In press, 50 (3), ⟨10.1093/erae/jbad023⟩

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Journal Article: Identifying and assessing intensive and extensive technologies in European dairy farming (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04159101

DOI: 10.1093/erae/jbad023

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