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Competitiveness of the dairy and beef industries in Spain faced to the agenda 2000

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Authors: J.A. Gómez‑Limón, L. Meza, A.I. Sanjuán
Issue: 96A-2 (143-154)
Topic: Animal Production
Keywords: Dairying and beef farms, Farm Accountancy Data Network (FADN), productivity, factor costs

The goal of this paper is to analyse the degree of competitiveness of dairy and beef forms in Spain in relation to the main producer countries in the European Union. For each type of farming, and for each factor (land, labour and capital) an index is constructed, using productivity and costs measures. Data for dairy and beef and veal from the Farm Accountancy Data Network are used. Results show that the Spanish farms competitiveness is not as bad as it is usually thought. They occupy average positions in comparison to other European Union countries. The main advantages come from the low costs of land and labour. Main disadvantages arise from lower labour productivity and smaller size of farms. The first factor is explained by milk and meat yields far bellow the European average while farm size leads to high concentration of livestock units per hectare, precluding the possibility of getting extensification premia.

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