Impact of Regional Location and Territorial Characteristics on Profitability in the Spanish Pig Farming Industry

Alba Cardil (), José Luis Gallizo and Manuel Salvador
Additional contact information
Alba Cardil: Department of Economics and Business, Faculty of Law, Economics and Tourism, University of Lleida, 25001 Lleida, Spain
José Luis Gallizo: Department of Economics and Business, Faculty of Law, Economics and Tourism, University of Lleida, 25001 Lleida, Spain
Manuel Salvador: Department of Applied Economics, Faculty of Economics and Business, University of Zaragoza, 50005 Zaragoza, Spain

Agriculture, 2024, vol. 15, issue 1, 1-24

Abstract: This work aimed to identify the locational, territorial and financial characteristics that impact the profitability of companies in the Spanish pig sector. The data were extracted from the SABI database, which contains economic and financial information. A sample of 1247 Spanish companies (14,254 observations) was obtained, providing an unbalanced panel dataset for the 2004–2018 period. The statistical analysis considered factors that potentially influence the profitability of companies, considering the potential existence of endogeneity issues among some of the variables analyzed. Companies tended to be located in autonomous communities in inland areas, which had higher depopulation rates and shorter average distances from companies to feed mills and slaughterhouses. There was regional specialization, which was influenced by the ability to invest in infrastructure, proximity to the markets, farm size and efficiency in resource management, which had a positive influence on profitability. These factors led to differences between regions, together with the support of public administration for companies that invest in sparsely populated areas. The results obtained will be of interest to policymakers developing measures aimed at providing better access to inputs through proximity to feed mills and slaughterhouses, as well as to new entrepreneurs in the sector who want to establish their businesses in the most specialized regions.

Keywords: pig sector; livestock production; profitability; location; panel data; endogeneity (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2077-0472/15/1/3/pdf (application/pdf)
https://www.mdpi.com/2077-0472/15/1/3/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jagris:v:15:y:2024:i:1:p:3-:d:1551458

Access Statistics for this article

Agriculture is currently edited by Ms. Leda Xuan

More articles in Agriculture from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().