Competitiveness of Dairy Farms In Northern Europe: A Cross-Country analysis

Abstract

The milk sector has received much attention in Europe due to the abolition of milk quotas in 2015 and its potential effect on the geographical distribution of milk production across countries. As a way of assessing the competitive advantage of Nordic EU countries, we investigated the productivity level and productivity growth of milk farms across eight countries of the Baltic Sea region from 1995 to 2010. We found considerable discrepancy in the productivity performance of dairy farms across countries. TFP growth rates indicate that, at farm level, the competitive positions of the older EU members are stable, and that there is no catching up from the newer EU entrants. We offer explanations for this evolution based on the different patterns of structural change followed by the studied countries.

The investment behaviour of dairy farms in transition economies

“…The use of farm bio-economic models for agri-food systems along with their development and policy impact assessment has become interdisciplinary. A few studies have investigated the economic performance of dairy farms (Irz & Jansik, 2015;Kimura & Sauer, 2015;Latruffe et al, 2017;Sipiläinen et al, 2014;Skevas et al, 2018a), but no research has investigated the role of CAP investment subsidies and SBC in the investment behaviour of dairy farms, particularly not through a comparative analysis of Estonia, Hungary and Slovenia. Therefore, this section introduces the academic literature on the link between dairy farm investment and CAP subsidies within the framework of SBC and capital market imperfections, focusing on BCE transition economies and referring to some of the experiences of Western economies.…”

Evaluating farm and export competitiveness of the Irish dairy industry: post-quota analysis

“…As noted by Boyle (2002), high productivity may compensate for relatively low output prices. In fact, Ireland had been producing above the imposed quota before 1984 and was not producing at its most effective level during the quota phase (Jansik et al , 2014; Donnellan et al , 2015; Läpple and Sirr, 2019). Farmers adjust their practices regularly to improve productivity and to remain resilient to negative price effects.…”

“…Policy changes in domestic and international markets continue to be the primary driver of competitiveness research (Jansik et al , 2014; Thorne et al , 2017). Research on the implications of the changes in price-distorting support systems is expected to grow, as more countries become engaged in and exposed to world markets where productivity and profitability are essential for the survival of an industry (Boyle, 2002; Bojnec and Fertő, 2014).…”

“…Likewise, Bojnec and Fertő (2014) found that Belgium, Denmark, France, Ireland and The Netherlands had a competitive advantage in the global market. Based on that, Jansik et al (2014) noted that Ireland, The Netherlands, Germany and Denmark were most constrained by the milk quota system. According to Giles (2015), countries that had high growth potential post-quota were those countries with a comparative advantage in the international market, e.g.…”

The Concept of Financial Sustainability Measurement: A Case of Food Companies from Northern Europe

“…For example, the role of the institution in shaping financial sustainability is visible in nonprofit organizations that have to compromise the high reliance on external sources of financing with a range of economic, cultural, and social demands that go beyond the social mission of the organization [32]. In dairy cooperatives, the duality of the function of members, usually being the owners and suppliers of raw material at the same time, may result in conflicts and deteriorate the financial strategy and sustainability of an institution [33]. On a firm level, financial sustainability may refer to viability, stability, or security of a business.…”