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• W2896099744 abstract "To explore the competitiveness of the Finnish dairy chain, we analysed its productivity performance relative to that of other Baltic countries: Sweden, Denmark, Germany, Poland, and the three Baltic states. We used partial productivity indicators and indices of total factor productivity (TFP) to investigate productivity growth and productivity levels in both dairy farming and dairy manufacturing, using data from the Farm Accountancy Data Network as well as national industrial statistics. At farm level, there are enormous differences in the level of labour productivity across the eight countries: a dairy farmer in Denmark produces 13 times more milk than one in Latvia or Lithuania. Labour productivity in Finland is also significantly lower than in the other old EU countries – not only Denmark, the clear leader, but also Germany and Sweden. Further, there is evidence that Estonia is catching up with Finland in terms of labour productivity. A decomposition analysis then shows that the cross-country differences in labour productivity on farms are driven primarily by differences in labour requirements per cow, while differences in milk yields account for a much smaller share of the difference. Thus, the key to high labour productivity in dairy is the farm structure and the adoption of mechanical innovations, while differences in adoption of biological innovations (e.g., genetic improvement, feeds) are relatively less important. In a second step, a growth accounting exercise indicates that growth in farm-level production in the four older EU members has occurred through different channels, but that TFP growth rates have been roughly comparable from 1995 to 2010. Thus, the competitive position of Finnish dairy farms relative to those in Sweden, Germany and Denmark has not changed greatly over the last two decades. More positively, we find that in recent years (i.e., since 2004), TFP on Finnish farms has grown much faster than on German and Swedish farms. Altogether, Finnish farms appear in the process of raising their productivity to the level achieved by German and Swedish farms, while Danish farms are probably out of reach. Extending the comparison to include the new EU members reveals that dairy farms in those countries are lagging behind Finnish ones in terms of productivity and are not catching up. Although Estonian farms, which are on average relatively large, have recorded impressive increases in yields and labour productivity, this has been achieved more by substitutions of other production factors for labour than real efficiency gains. The processing level of the Finnish dairy supply chain appears more competitive when benchmarked against the processing sectors of the old EU members, although TFP growth has been slow in absolute terms. However, the productivity of dairy manufacturing in Poland and Lithuania is increasing rapidly and converging towards the levels observed in the older EU countries. Overall, the evolution documented in the paper is consistent with the view that transferring technologies and organisational forms from the productivity leaders to the productivity “laggards” is easier in the manufacturing sector than in primary production, due to the typical difference in the size of firms as well as the more pronounced reliance of the primary sector on country-specific agro-ecological conditions." @default.
• W2896099744 created "2018-10-26" @default.
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• W2896099744 date "2014-01-31" @default.
• W2896099744 modified "2023-09-28" @default.
• W2896099744 title "Productivity of Dairy Supply Chains: A Comparative Analysis Across the Countries of the Baltic Sea Region" @default.
• W2896099744 doi "https://doi.org/10.33354/smst.75271" @default.
• W2896099744 hasPublicationYear "2014" @default.
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