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 Plasma-zapping process could yield trans fat-free soybean oil product
02.12.2016 | Purdue University

nachricht New findings about the deformed wing virus, a major factor in honey bee colony mortality
11.11.2016 | Veterinärmedizinische Universität Wien

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: Traffic jam in empty space

New success for Konstanz physicists in studying the quantum vacuum

An important step towards a completely new experimental access to quantum physics has been made at University of Konstanz. The team of scientists headed by...

Im Focus: How gut bacteria can make us ill

HZI researchers decipher infection mechanisms of Yersinia and immune responses of the host

Yersiniae cause severe intestinal infections. Studies using Yersinia pseudotuberculosis as a model organism aim to elucidate the infection mechanisms of these...

Im Focus: Interfacial Superconductivity: Magnetic and superconducting order revealed simultaneously

Researchers from the University of Hamburg in Germany, in collaboration with colleagues from the University of Aarhus in Denmark, have synthesized a new superconducting material by growing a few layers of an antiferromagnetic transition-metal chalcogenide on a bismuth-based topological insulator, both being non-superconducting materials.

While superconductivity and magnetism are generally believed to be mutually exclusive, surprisingly, in this new material, superconducting correlations...

Im Focus: Studying fundamental particles in materials

Laser-driving of semimetals allows creating novel quasiparticle states within condensed matter systems and switching between different states on ultrafast time scales

Studying properties of fundamental particles in condensed matter systems is a promising approach to quantum field theory. Quasiparticles offer the opportunity...

Im Focus: Designing Architecture with Solar Building Envelopes

Among the general public, solar thermal energy is currently associated with dark blue, rectangular collectors on building roofs. Technologies are needed for aesthetically high quality architecture which offer the architect more room for manoeuvre when it comes to low- and plus-energy buildings. With the “ArKol” project, researchers at Fraunhofer ISE together with partners are currently developing two façade collectors for solar thermal energy generation, which permit a high degree of design flexibility: a strip collector for opaque façade sections and a solar thermal blind for transparent sections. The current state of the two developments will be presented at the BAU 2017 trade fair.

As part of the “ArKol – development of architecturally highly integrated façade collectors with heat pipes” project, Fraunhofer ISE together with its partners...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Sustainable Water use in Agriculture in Eastern Europe and Central Asia

19.01.2017 | Event News

12V, 48V, high-voltage – trends in E/E automotive architecture

10.01.2017 | Event News

2nd Conference on Non-Textual Information on 10 and 11 May 2017 in Hannover

09.01.2017 | Event News

 
Latest News

New Study Will Help Find the Best Locations for Thermal Power Stations in Iceland

19.01.2017 | Earth Sciences

Not of Divided Mind

19.01.2017 | Life Sciences

Molecule flash mob

19.01.2017 | Physics and Astronomy

VideoLinks
B2B-VideoLinks
More VideoLinks >>>