Dutch, Hungarian and German dairy farms technical efficiency comparison

The abolishment of the dairy quota system in the EU is expected to increase competition across dairy farms in Europe. Assuming a common price for milk in the EU, only the most efficient farms will survive in the new environment. The main objective of the paper is to compare dairy farms in Germany, T...

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Main Authors: Krisztián Kovács, Grigorios Emvalomatis
Format: Article
Language:English
Published: University of Debrecen 2011-06-01
Series:Apstract: Applied Studies in Agribusiness and Commerce
Subjects:
Online Access:https://ojs.lib.unideb.hu/apstract/article/view/7702
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author Krisztián Kovács
Grigorios Emvalomatis
author_facet Krisztián Kovács
Grigorios Emvalomatis
author_sort Krisztián Kovács
collection DOAJ
description The abolishment of the dairy quota system in the EU is expected to increase competition across dairy farms in Europe. Assuming a common price for milk in the EU, only the most efficient farms will survive in the new environment. The main objective of the paper is to compare dairy farms in Germany, The Netherlands and Hungary about their technical efficiency. In the first part of the research, the efficiency is measured by partial efficiency indexes using one dimensional efficiency measuring. In the second part, the Data Envelopment Analysis (DEA) have to be used to measure efficiency in a multidimensional space, using six inputs and two outputs. It appears from the results that the highest efficiency farms are in the Netherlands, and then Germany and Hungary follow. If we want to eliminate the low sample size effect, we can assume a common frontier, which decreases the efficiency scores a bit, and makes the Hungarian results more reliable. With respect the abolishment of the dairy quota system, our results suggest that the Dutch farms are the most efficient, thus probably they will increase their production after the quota system. But because the size of the country we cannot expect dramatic changes in the European Dairy market. The Germans farms efficiency is lower, but their efficiency is also lower, so we won’t expect high increase about the dairy supply. The Hungarian dairy sector is not so efficient like the Dutch, and the size of the sector has also small among the European countries, thus if they want to survive the quota system demolishing, they have to increase their technical efficiency.
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spelling doaj.art-882bf115b9a44c79886649f2947385eb2022-12-22T02:57:26ZengUniversity of DebrecenApstract: Applied Studies in Agribusiness and Commerce1789-221X1789-78742011-06-0151-210.19041/APSTRACT/2011/1-2/15Dutch, Hungarian and German dairy farms technical efficiency comparisonKrisztián Kovács0Grigorios Emvalomatis1University of Debrecen Wageningen University The abolishment of the dairy quota system in the EU is expected to increase competition across dairy farms in Europe. Assuming a common price for milk in the EU, only the most efficient farms will survive in the new environment. The main objective of the paper is to compare dairy farms in Germany, The Netherlands and Hungary about their technical efficiency. In the first part of the research, the efficiency is measured by partial efficiency indexes using one dimensional efficiency measuring. In the second part, the Data Envelopment Analysis (DEA) have to be used to measure efficiency in a multidimensional space, using six inputs and two outputs. It appears from the results that the highest efficiency farms are in the Netherlands, and then Germany and Hungary follow. If we want to eliminate the low sample size effect, we can assume a common frontier, which decreases the efficiency scores a bit, and makes the Hungarian results more reliable. With respect the abolishment of the dairy quota system, our results suggest that the Dutch farms are the most efficient, thus probably they will increase their production after the quota system. But because the size of the country we cannot expect dramatic changes in the European Dairy market. The Germans farms efficiency is lower, but their efficiency is also lower, so we won’t expect high increase about the dairy supply. The Hungarian dairy sector is not so efficient like the Dutch, and the size of the sector has also small among the European countries, thus if they want to survive the quota system demolishing, they have to increase their technical efficiency.https://ojs.lib.unideb.hu/apstract/article/view/7702efficiencydairy quota systemdairy farmingData Envelopment Analysis
spellingShingle Krisztián Kovács
Grigorios Emvalomatis
Dutch, Hungarian and German dairy farms technical efficiency comparison
Apstract: Applied Studies in Agribusiness and Commerce
efficiency
dairy quota system
dairy farming
Data Envelopment Analysis
title Dutch, Hungarian and German dairy farms technical efficiency comparison
title_full Dutch, Hungarian and German dairy farms technical efficiency comparison
title_fullStr Dutch, Hungarian and German dairy farms technical efficiency comparison
title_full_unstemmed Dutch, Hungarian and German dairy farms technical efficiency comparison
title_short Dutch, Hungarian and German dairy farms technical efficiency comparison
title_sort dutch hungarian and german dairy farms technical efficiency comparison
topic efficiency
dairy quota system
dairy farming
Data Envelopment Analysis
url https://ojs.lib.unideb.hu/apstract/article/view/7702
work_keys_str_mv AT krisztiankovacs dutchhungarianandgermandairyfarmstechnicalefficiencycomparison
AT grigoriosemvalomatis dutchhungarianandgermandairyfarmstechnicalefficiencycomparison