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 New gene for atrazine resistance identified in waterhemp
24.02.2017 | University of Illinois College of Agricultural, Consumer and Environmental Sciences

nachricht Researchers discover a new link to fight billion-dollar threat to soybean production
14.02.2017 | University of Missouri-Columbia

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: Breakthrough with a chain of gold atoms

In the field of nanoscience, an international team of physicists with participants from Konstanz has achieved a breakthrough in understanding heat transport

In the field of nanoscience, an international team of physicists with participants from Konstanz has achieved a breakthrough in understanding heat transport

Im Focus: DNA repair: a new letter in the cell alphabet

Results reveal how discoveries may be hidden in scientific “blind spots”

Cells need to repair damaged DNA in our genes to prevent the development of cancer and other diseases. Our cells therefore activate and send “repair-proteins”...

Im Focus: Dresdner scientists print tomorrow’s world

The Fraunhofer IWS Dresden and Technische Universität Dresden inaugurated their jointly operated Center for Additive Manufacturing Dresden (AMCD) with a festive ceremony on February 7, 2017. Scientists from various disciplines perform research on materials, additive manufacturing processes and innovative technologies, which build up components in a layer by layer process. This technology opens up new horizons for component design and combinations of functions. For example during fabrication, electrical conductors and sensors are already able to be additively manufactured into components. They provide information about stress conditions of a product during operation.

The 3D-printing technology, or additive manufacturing as it is often called, has long made the step out of scientific research laboratories into industrial...

Im Focus: Mimicking nature's cellular architectures via 3-D printing

Research offers new level of control over the structure of 3-D printed materials

Nature does amazing things with limited design materials. Grass, for example, can support its own weight, resist strong wind loads, and recover after being...

Im Focus: Three Magnetic States for Each Hole

Nanometer-scale magnetic perforated grids could create new possibilities for computing. Together with international colleagues, scientists from the Helmholtz Zentrum Dresden-Rossendorf (HZDR) have shown how a cobalt grid can be reliably programmed at room temperature. In addition they discovered that for every hole ("antidot") three magnetic states can be configured. The results have been published in the journal "Scientific Reports".

Physicist Dr. Rantej Bali from the HZDR, together with scientists from Singapore and Australia, designed a special grid structure in a thin layer of cobalt in...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Booth and panel discussion – The Lindau Nobel Laureate Meetings at the AAAS 2017 Annual Meeting

13.02.2017 | Event News

Complex Loading versus Hidden Reserves

10.02.2017 | Event News

International Conference on Crystal Growth in Freiburg

09.02.2017 | Event News

 
Latest News

Stingless bees have their nests protected by soldiers

24.02.2017 | Life Sciences

New risk factors for anxiety disorders

24.02.2017 | Life Sciences

MWC 2017: 5G Capital Berlin

24.02.2017 | Trade Fair News

VideoLinks
B2B-VideoLinks
More VideoLinks >>>