Abstract
This study estimated the possibilities of reducing costs and improving input use in a sample of Swedish farms specialising in beef production. Input use efficiency was measured in a multi-output, multi-input function distance function analysis, covering the period 2008-2011. For comparison, both the classical radial and the generalised non-parametric approach were used. The results revealed that on average, costs could be decreased by 20%. Both models constructed frontiers where: i) the rankings of farms according to efficiency were positively and highly correlated and ii) the size and the significance of the parameter estimates were similar. Input-saving technologies were found to be positively influenced by livestock density, pasture availability and the use of coupled income support. Larger farms, farms with higher specialisation in beef cattle, farms with a larger number of animals older than 2 years, farms converting to organic production, farms located in less favoured areas and farms located in regions with a shorter grazing period were found be less efficient.
Highlights
The beef sector in Sweden is facing challenges to its development
These results show that at country level, an efficiency level higher than 80% was attained by about 50% of farms in our sample (42 and 52% for classical radial distance function (CRDF) and generalized directional distance function (GDDF), respectively)
The relative possibilities for cost decreases and improvements in the use of inputs in a sample of Swedish farms specialising in beef production (2008–2011) were estimated using multi-output, multi-input distance function analysis
Summary
The beef sector in Sweden is facing challenges to its development. Compared with other agricultural specializations, Swedish beef production is more variable in terms of the economic benefit (considered in terms of economic output efficiency, where low efficiency implies higher variations in the economic benefit) obtained by farmers (Manevska-Tasevska et al 2013). Input selection was linked to the typical production characteristics of the beef systems, represented by: i) the number of cattle for fattening, expressed in livestock units (LU); ii) labour use on the farm, expressed in total working hours; iii) total area utilized, expressed in hectares; iv) feed costs, including value of feed produced on the farm and purchased feed, expressed in SEK; v) energy costs, representing the total value of the energy (including electricity and fuel for heating) consumed on the farm, expressed in SEK; and vi) other animal handling costs (specific livestock costs for veterinary fees, medicine, artificial insemination, castration, registration in herd books, maintaining livestock equipment, short-term rent of buildings used to house animals or storage, marketing etc.), expressed in SEK. 7% of the beef farms were in northern Sweden (FADN Region 3) (9% in grazing region 3), where the grazing period is less than 3 months
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