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Understanding the dairy sector in Slovenia : a modeling approach for policy evaluation and decision support
ID
Žgajnar, Jaka
(
Author
),
ID
Kavčič, Stane
(
Author
)
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MD5: D9DB503C535206A983850668171E712A
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https://www.mdpi.com/2071-1050/16/14/6009
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Abstract
This study investigates the dairy sector in Slovenia, focusing on farm heterogeneity, efficiency in resource utilization, and policy implementations. Through a modeling approach, we explore the differences among dairy farms, considering factors such as herd size, farm management, natural conditions, and production potential. Based on 32 typical dairy farms, representing the entire dairy sector, composed of 6400 dairy farms, the analysis was performed using the farm model (SiTFarm). We emphasize the importance of accurate assessments, given the variability of policy impacts across farm types. While medium-to-large, specialized farms dominate milk production, smaller farms, particularly in less favored areas, hold social and environmental importance despite facing competitive challenges. Addressing environmental sustainability could involve promoting practices that improve milk yield and include grazing, as this tends to lower greenhouse gas emissions per kilogram of milk (−5%). Dairy farms contribute about one-third of the generated revenue in Slovene agriculture, of which a good half goes to farms located in less favored areas. They manage a good quarter of permanent grassland in Slovenia, and it is certainly the sector that can achieve the highest return on these areas. In 75% of the farms, the gross margin is higher than 1756 EUR/ha and using best practices they exceed 3400 EUR/ha. The model results indicate that the average hourly rate on dairy farms during the observed period falls within the range of EUR 7.3 to 17.4 of gross margin for most farms, with the top-performing ones exceeding 24 EUR/h. However, due to the significant reliance on budgetary payments (on average, 58% of the gross margin), the implementation of the common agricultural policy strategic plan generally leads to a deterioration in the economic indicators of dairy farms. This impact is particularly pronounced on medium-sized and larger farms, increasing the effect on income due to the substantial fixed costs involved. Our findings underscore the interplay between policy interventions, farm characteristics, and sectoral outcomes, offering valuable insights for policy-makers and stakeholders.
Language:
English
Keywords:
milk production
,
farm model
,
mathematical programming
,
dairy sector analysis
,
GHG
Work type:
Article
Typology:
1.01 - Original Scientific Article
Organization:
BF - Biotechnical Faculty
Publication status:
Published
Publication version:
Version of Record
Year:
2024
Number of pages:
20 str.
Numbering:
Vol. 16, iss. 14, art. 16146009
PID:
20.500.12556/RUL-159658
UDC:
636.2
ISSN on article:
2071-1050
DOI:
10.3390/su16146009
COBISS.SI-ID:
201966851
Publication date in RUL:
17.07.2024
Views:
143
Downloads:
15
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Record is a part of a journal
Title:
Sustainability
Shortened title:
Sustainability
Publisher:
MDPI
ISSN:
2071-1050
COBISS.SI-ID:
5324897
Licences
License:
CC BY 4.0, Creative Commons Attribution 4.0 International
Link:
http://creativecommons.org/licenses/by/4.0/
Description:
This is the standard Creative Commons license that gives others maximum freedom to do what they want with the work as long as they credit the author.
Secondary language
Language:
Slovenian
Keywords:
govedoreja
,
prireja mleka
,
kmetije
,
modeli
,
matematično programiranje
Projects
Funder:
ARIS - Slovenian Research and Innovation Agency
Project number:
P4-0022
Name:
Ekonomika agroživilstva in naravnih virov
Funder:
Other - Other funder or multiple funders
Funding programme:
Ministry of Agriculture, Forestry and Food
Project number:
2330-18-000231
Name:
Grant no. 2330-18-000231
Funder:
ARIS - Slovenian Research and Innovation Agency
Project number:
V4-1809
Name:
Razvoj modela za sistematično spremljanje ekonomskega položaja in analizo vpliva kmetijske politike na ravni tipičnih kmetijskih gospodarstev
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