Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

One Percent Growth In Dairy Farm Production

27.02.2008
The 1990s witnessed a one percent annual growth in Finnish dairy farm production. Growth was significantly affected by annual fluctuations.

- One percent growth is minor when compared to other sectors of industry. The low level of growth can be explained by the 1990s recession and the initial rigidity that accompanied EU accession, MTT (MTT Agrifood Research Finland) Senior Scientist Timo Sipiläinen concludes. Research for his dissertation focuses particularly on Finnish dairy farm production.

- Entering into force of statutes on investment grants and other items undoubtedly applied a brake on dairy farm development right up to the end of the decade. Dairy farms easily need a few years to adjust to changes on this scale, which means that benefits are not immediately apparent, Sipiläinen says.

COMPARISON COVERS PERIODS BEFORE AND AFTER FINNISH EU ACCESSION

The common feature of all three panel data sets used by Sipiläinen is that they cover the periods before and after Finnish EU accession in 1995. Data on 138 farms produced by agricultural advisory services describes silage production on animal farms. The second set is MTT’s bookkeeping data covering 72 dairy farms. The third set of data Sipiläinen examines is on 459 accounting farms representing different production branches.

Sipiläinen concentrates on three key factors for production growth: technical change, changes in technical efficiency, and scale effect. He observes technical change, such as advances in animal and plant breeding and in available technology, as being a significant component in production growth.

By technical efficiency Sipiläinen means the relationship between the yield achieved through actual farm input and the best possible yield that can be achieved. He notes that EU accession has had no immediate effects with regard to technical efficiency. In fact, a slightly downward trend in the technical efficiency of dairy farms emerged during the period under investigation.

Only a few dairy farms achieved an increase in production through scale effect. A positive scale effect would be important for improving the competitiveness of Finnish agriculture through increasing farm size.

- This minimal scale effect is linked to the fact that there are still a large number of small dairy farms, with less than 20 cows. For the majority of large farms heavy investment began at the end of the 1990s, and the full exploitation of production capacity takes time. Scale effects were clearly greater in the data which were not restricted to dairy farms, Sipiläinen points out.

PUTTING ASSESSMENT METHODS IN ORDER

In the five articles comprising his research Timo Sipiläinen also compares the assessment methods for production change. For supplying the best possible information as background for decision-makers the correct use of methods is vital. - Fortunately, data from agricultural enterprises is available for research purposes, such as MTT’s bookkeeping data, he commented appreciatively.

The Malmqvist and Fisher indices used by Sipiläinen are in widespread use in the field of economics. Malmqvist indices are often used in production growth research, although price data is missing. Calculation using the Fisher indices requires that price and quantity data are either directly available or can be deduced hypothetically.

Licentiate of Science (Agriculture and Forestry) Timo Sipiläinen’s agricultural economics dissertation “Components of Productivity Growth in Finnish Agriculture” will be reviewed on 7 March 2008 at the University of Helsinki. The opponent will be Professor Subal C. Kumbhakar from Binghamton University in the United States (State University of New York) and the custodian Professor Matti Ylätalo.

Further details: Timo Sipiläinen, tel. +358 9 5608 6221, timo.sipilainen@mtt.fi

Ulla Jauhiainen | alfa
Further information:
http://www.mtt.fi

More articles from Agricultural and Forestry Science:

nachricht Raiding the rape field
23.05.2018 | Julius-Maximilians-Universität Würzburg

nachricht New technique reveals details of forest fire recovery
17.05.2018 | DOE/Brookhaven National Laboratory

All articles from Agricultural and Forestry Science >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Powerful IT security for the car of the future – research alliance develops new approaches

The more electronics steer, accelerate and brake cars, the more important it is to protect them against cyber-attacks. That is why 15 partners from industry and academia will work together over the next three years on new approaches to IT security in self-driving cars. The joint project goes by the name Security For Connected, Autonomous Cars (SecForCARs) and has funding of €7.2 million from the German Federal Ministry of Education and Research. Infineon is leading the project.

Vehicles already offer diverse communication interfaces and more and more automated functions, such as distance and lane-keeping assist systems. At the same...

Im Focus: Molecular switch will facilitate the development of pioneering electro-optical devices

A research team led by physicists at the Technical University of Munich (TUM) has developed molecular nanoswitches that can be toggled between two structurally different states using an applied voltage. They can serve as the basis for a pioneering class of devices that could replace silicon-based components with organic molecules.

The development of new electronic technologies drives the incessant reduction of functional component sizes. In the context of an international collaborative...

Im Focus: LZH showcases laser material processing of tomorrow at the LASYS 2018

At the LASYS 2018, from June 5th to 7th, the Laser Zentrum Hannover e.V. (LZH) will be showcasing processes for the laser material processing of tomorrow in hall 4 at stand 4E75. With blown bomb shells the LZH will present first results of a research project on civil security.

At this year's LASYS, the LZH will exhibit light-based processes such as cutting, welding, ablation and structuring as well as additive manufacturing for...

Im Focus: Self-illuminating pixels for a new display generation

There are videos on the internet that can make one marvel at technology. For example, a smartphone is casually bent around the arm or a thin-film display is rolled in all directions and with almost every diameter. From the user's point of view, this looks fantastic. From a professional point of view, however, the question arises: Is that already possible?

At Display Week 2018, scientists from the Fraunhofer Institute for Applied Polymer Research IAP will be demonstrating today’s technological possibilities and...

Im Focus: Explanation for puzzling quantum oscillations has been found

So-called quantum many-body scars allow quantum systems to stay out of equilibrium much longer, explaining experiment | Study published in Nature Physics

Recently, researchers from Harvard and MIT succeeded in trapping a record 53 atoms and individually controlling their quantum state, realizing what is called a...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

VideoLinks
Industry & Economy
Event News

In focus: Climate adapted plants

25.05.2018 | Event News

Save the date: Forum European Neuroscience – 07-11 July 2018 in Berlin, Germany

02.05.2018 | Event News

Invitation to the upcoming "Current Topics in Bioinformatics: Big Data in Genomics and Medicine"

13.04.2018 | Event News

 
Latest News

In focus: Climate adapted plants

25.05.2018 | Event News

Flow probes from the 3D printer

25.05.2018 | Machine Engineering

Less is more? Gene switch for healthy aging found

25.05.2018 | Life Sciences

VideoLinks
Science & Research
Overview of more VideoLinks >>>