Differentiation in the production potential and efficiency of farms in the member states of the European Union

Abstract

This paper contains an evaluation of the differentiation of the production potential and efficiency of farms in the member states of the European Union in 2013–2016. To this end, a taxonomic method – Hellwig’s development measure – was used. The study was based on data from the European Union Farm Accountancy Data Network (FADN). The study results indicate that member states such as the Netherlands, Denmark, Luxembourg, Belgium, the United Kingdom and Slovakia were characterised by the best agricultural production potential. The first four member states also showed the highest efficiency with regard to the utilisation of production factors. On the other hand, low and average potential and efficiency were characteristic of farms in most of the new member states.