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Influence of climate stress on technical efficiency and economic downside risk exposure of EU dairy farms

Quiédeville, Sylvain; Grovermann, Christian; Leiber, Florian; Cozzi, Giulio; Lora, Isabella; Eory, Vera and Moakes, Simon (2022) Influence of climate stress on technical efficiency and economic downside risk exposure of EU dairy farms. The Journal of Agricultural Science, 160 (5), pp. 289-301.

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Document available online at: https://www.cambridge.org/core/journals/journal-of-agricultural-science/article/influence-of-climate-stress-on-technical-efficiency-and-economic-downside-risk-exposure-of-eu-dairy-farms/EF201949A76A78D7CF02C23733C6F1F5


Summary in the original language of the document

This paper assesses the influence of heat and drought stress on the economic performance of the European dairy sector. Climatic data from the Gridded Agro-Meteorological data in Europe were combined with dairy enterprise data from the Farm Accountancy Data Network, resulting in a data set of 4412 farms in 22 European Union (EU) countries over the period 2007–2013. Since the performance of dairy farms is influenced by the context in which they operate, farms were grouped into areas representing similar climatic conditions through the use of a latent class analysis. Technical efficiency (TE) and economic downside risk were used as performance indicators against which the effect of climatic stress factors was evaluated. TE was estimated using a ‘true-fixed’ effect stochastic frontier model.
Economic downside risk was based on gross margin deviations. Regression analysis suggests a significant negative effect of drought and heat stress on both TE and the downside gross margin difference in most climatic classes, with few exceptions. Results imply that both drought and heat stress-related issues need to be considered when designing adaptation strategies to address threats to the economic performance of the EU dairy sector.


EPrint Type:Journal paper
Keywords:Climate stress, dairy farms, economic resilience, stochastic frontier analysis, technical efficiency, Abacus, FiBL5008101, GenTORE 1.0, FiBL50081, GenTORE
Agrovoc keywords:
Language
Value
URI
English
dairy farms
http://aims.fao.org/aos/agrovoc/c_34762
English
stress
http://aims.fao.org/aos/agrovoc/c_7452
English
animal welfare
http://aims.fao.org/aos/agrovoc/c_443
Subjects: Animal husbandry > Production systems > Dairy cattle
Animal husbandry > Health and welfare
Research affiliation: European Union > Horizon 2020 > GenTORE
Switzerland > FiBL - Research Institute of Organic Agriculture Switzerland > Animal > Animal welfare & housing
Switzerland > FiBL - Research Institute of Organic Agriculture Switzerland > Animal > Cattle
Switzerland > FiBL - Research Institute of Organic Agriculture Switzerland > Society > Economics & market > Farm economics
Switzerland > FiBL - Research Institute of Organic Agriculture Switzerland > Sustainability > Climate
Italy > Univ. Padova
UK > Scottish Rural Colleges (SRUC - previously SAC)
DOI:10.1017/S0021859622000375
Related Links:https://www.fibl.org/en/themes/projectdatabase/projectitem/project/1326
Deposited By: Forschungsinstitut für biologischen Landbau, FiBL
ID Code:44424
Deposited On:31 Aug 2022 09:25
Last Modified:24 May 2024 07:00
Document Language:English
Status:Published
Refereed:Peer-reviewed and accepted

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