THE ANALYSIS OF SUBREGIONAL DIFFERENCES IN COST EFFICIENCY OF POLISH DAIRY FARMS USING THE FADN DATABASE

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Dec 17, 2013
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Vol. 100 No. 4 (2013)
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Tadeusz Sobczyński
Katedra Ekonomiki i Doradztwa w Agrobiznesie Uniwersytetu Techniczno-Przyrodniczego w Bydgoszczy
Wojciech Florkowski
University of Georgia, USA
https://orcid.org/0000-0003-1947-2182
Anna Klepacka
Warsaw University of Life Sciences – SGGW, Poland
https://orcid.org/0000-0002-2828-5429
Cesar Revoredo-Giha
Scotland’s Rural College, UK
https://orcid.org/0000-0001-9890-4160

DOI: https://doi.org/10.22630/RNR.2013.100.4.56
Keywords : FADN data, FADN regions, FADN subregions, cost frontier function, fixed effects, inefficiency, cost efficiency index
Abstract
The cost efficiency of the dairy subsector has been analyzed using data for two FADN regions and four subregions in Poland for the period 2004/05-2007/08. The cost efficiency indexes have been calculated for each farm from two FADN regions and two other FADN regions after each was further subdivided into two subregions. Both regional and subregional analyses revealed large differences in relative cost efficiency of dairy farms in each area. In particular, the subregional analysis suggests that Podlaskie and Łódzkie subregion seem to have a relatively larger number of very efficient dairy farms followed by the Wielkopolskie and Kujawsko-Pomorskie subregion. Overall, however, every region seems to have a large number of farms, which could improve their cost efficiency. Given the location of dairy processors, dairy farms in the two mentioned subregions and the region of Pomorskie and Mazury have a relative advantage, while the subregion Mazowieckie and Lubelskie has an easy access to the largest market represented by Warsaw and surroundings. The dairy industry may generate some jobs in subregions leading in milk production, especially if the elimination of milk quota in 2014 will increase demand for milk and dairy products in neighboring countries leading to expansion of milk production.

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How to Cite
Sobczyński, T., Florkowski, W., Klepacka, A., & Revoredo-Giha, C. (2013). THE ANALYSIS OF SUBREGIONAL DIFFERENCES IN COST EFFICIENCY OF POLISH DAIRY FARMS USING THE FADN DATABASE. Annals of Agricultural Economics and Rural Development, 100(4), 103–113. https://doi.org/10.22630/RNR.2013.100.4.56
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