The effect of intensification on dairy farm efficiency

Antonio Álvarez, Julio del Corral, José Antonio Pérez, Daniel Solís

Abstract

This study analyzes the differences on production cost associated with the intensification of production for a sample of dairy farms in Asturias. In doing so, we account for two methodological issues which are not usually considered in the empirical literature. On the one hand, we allow for different technologies within the sample. On the other hand, we estimate ex ante cost functions, which use ‘planned output’ instead of the traditional ex post approach which uses the ‘observed output’. Our results show a positive relation between intensification and efficiency.

Keywords

Cluster analysis; efficiency; ex ante cost function; intensification

Subject classification

Q12, C23.

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References

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 Universitat Politècnica de València

e-ISSN: 2174-7350   ISSN: 1578-0732   https://doi.org/10.4995/earn