Neljapäev, 2. mai 2019 kell 14.00-15.00 J. Liivi 4, ruum 103
RAUL OMEL (Tartu Ülikool, Eesti Maaülikool)
Efficiency and productivity change of Estonian dairy farms
The aim of the proposed paper is to analyse productivity change of Estonian dairy farms. Data envelopment analysis is used to estimate the technical efficiency of producers and Malmquist and Färe-Primont productivity index for analysis of total factor productivity change. Estonian FADN data is used in analysis. Analysis of technical efficiency and total factor productivity has been divided into two stages. At first stage, the evaluation of total factor productivity and technical efficiency in Estonian dairy production is conducted. In the second stage of analysis fixed effects models is used in order to estimate the effects of various factors on technical efficiency (DEA PTE scores) and total factor productivity index. The fixed effects model was preferred to first difference model because of lower serial correlation of the error term. In the period of investigation there are only minor changes in productivity levels. The level of productivity increases towards the large farms. Small farms form the most of the sample and lower the overall level of productivity. Farm gate milk prices have considerable effect on total factor productivity change. Number of cows and milk yield has positive and dependence on subsidies, stocking density and capital to working hours ratio have negative effects on total factor productivity change.
Keywords: Malmquist productivity index, Färe-Primont productivity index, technical efficiency, technical change, data envelopment analysis, dairy production.