Competitiveness of Polish dairy farms in the European Union

Abstract

This article analyses the competitiveness of dairy farms in Poland in relation to selected EU countries. The competitive advantage of dairy farms was evaluated and compared based on remuneration for family labour. Two variants of the above indicator were calculated: (1) Remuneration for family labour (FL1) as the relationship between farm net income and the farmer’s unpaid labour input, and (2) Remuneration for family labour (FL2) as the relationship between farm net income minus the opportunity costs of own land and capital to the farmer’s unpaid labour input. The calculations were performed based on EU FADN (European Union Farm Accountancy Data Network) data for an average dairy farm in 2005, 2010 and 2016. The study revealed the highest average remuneration for family labour (FL1) in Irish and German dairy farms. The value of the second indicator (FL2) was also highest in Germany, followed by France. The analysis produced interesting results regarding dairy farms in Denmark and the Netherlands which were characterised by the highest scale of production in the evaluated period (high net value added), but very low farm incomes and remuneration for family labour. The study revealed that Polish dairy farms were characterised by average competitiveness relative.