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 'Sneezing' plants contribute to disease proliferation
24.06.2019 | Virginia Tech

nachricht New parsley virus discovered by Braunschweig researchers
17.05.2019 | Leibniz-Institut DSMZ-Deutsche Sammlung von Mikroorganismen und Zellkulturen GmbH

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: Fraunhofer IDMT demonstrates its method for acoustic quality inspection at »Sensor+Test 2019« in Nürnberg

From June 25th to 27th 2019, the Fraunhofer Institute for Digital Media Technology IDMT in Ilmenau (Germany) will be presenting a new solution for acoustic quality inspection allowing contact-free, non-destructive testing of manufactured parts and components. The method which has reached Technology Readiness Level 6 already, is currently being successfully tested in practical use together with a number of industrial partners.

Reducing machine downtime, manufacturing defects, and excessive scrap

Im Focus: Successfully Tested in Praxis: Bidirectional Sensor Technology Optimizes Laser Material Deposition

The quality of additively manufactured components depends not only on the manufacturing process, but also on the inline process control. The process control ensures a reliable coating process because it detects deviations from the target geometry immediately. At LASER World of PHOTONICS 2019, the Fraunhofer Institute for Laser Technology ILT will be demonstrating how well bi-directional sensor technology can already be used for Laser Material Deposition (LMD) in combination with commercial optics at booth A2.431.

Fraunhofer ILT has been developing optical sensor technology specifically for production measurement technology for around 10 years. In particular, its »bd-1«...

Im Focus: The hidden structure of the periodic system

The well-known representation of chemical elements is just one example of how objects can be arranged and classified

The periodic table of elements that most chemistry books depict is only one special case. This tabular overview of the chemical elements, which goes back to...

Im Focus: MPSD team discovers light-induced ferroelectricity in strontium titanate

Light can be used not only to measure materials’ properties, but also to change them. Especially interesting are those cases in which the function of a material can be modified, such as its ability to conduct electricity or to store information in its magnetic state. A team led by Andrea Cavalleri from the Max Planck Institute for the Structure and Dynamics of Matter in Hamburg used terahertz frequency light pulses to transform a non-ferroelectric material into a ferroelectric one.

Ferroelectricity is a state in which the constituent lattice “looks” in one specific direction, forming a macroscopic electrical polarisation. The ability to...

Im Focus: Determining the Earth’s gravity field more accurately than ever before

Researchers at TU Graz calculate the most accurate gravity field determination of the Earth using 1.16 billion satellite measurements. This yields valuable knowledge for climate research.

The Earth’s gravity fluctuates from place to place. Geodesists use this phenomenon to observe geodynamic and climatological processes. Using...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

VideoLinks
Industry & Economy
Event News

2nd International Conference on UV LED Technologies & Applications – ICULTA 2020 | Call for Abstracts

24.06.2019 | Event News

SEMANTiCS 2019 brings together industry leaders and data scientists in Karlsruhe

29.04.2019 | Event News

Revered mathematicians and computer scientists converge with 200 young researchers in Heidelberg!

17.04.2019 | Event News

 
Latest News

2nd International Conference on UV LED Technologies & Applications – ICULTA 2020 | Call for Abstracts

24.06.2019 | Event News

'Sneezing' plants contribute to disease proliferation

24.06.2019 | Agricultural and Forestry Science

Researchers find new mutation in the leptin gene

24.06.2019 | Life Sciences

VideoLinks
Science & Research
Overview of more VideoLinks >>>