Determinants of Persistent and Transient Technical Efficiency of Milk Production in EU

This paper deals with the estimation of technical efficiency of milk production in the EU, its decomposition and the analysis of determinants of transient and persistent efficiency. Attention was focused on specialized milk production using FADN data in the period from 2004 to 2017. The analysis is based on the four-component model that represents the most advanced approach to technical efficiency analysis at present and the multi-step estimation procedure extended by technical efficiency determinants. To the best of our knowledge, this is the first application of this model based on the multi-step estimation with the inclusion of technical efficiency determinants on this type of specialization in the EU. The results show that the overall technical efficiency achieves the mean value of 68% and is relatively dense around the mean. The persistent inefficiency poses a greater problem for dairy production and varies considerably across European regions compared to the transient part. Based on the assessment of the development of transient efficiency, it is evident that it is influenced by the situation on the dairy market, in particular by the milk crises. The most effective conversion of inputs to outputs is achieved in the Netherlands, the United Kingdom, and Belgium and is least burdened with institutional and structural rigidities. The results show that transient efficiency is positively influenced by paid labour share, rented land share, level of modernization and level of off-farm activities and negatively by the level of subsidies on livestock. The positive effect of the economies of size on persistent efficiency is not proved. However, specialization, despite the higher vulnerability of specialized farms to price shocks, affects persistent efficiency positively. Localization of farms in LFAs, as expected, has a negative impact on persistent technical efficiency.

Technology efficiency or allocation efficiency

Purpose The emergence of mega-farms in middle-income countries like Brazil and Ukraine and the efforts to consolidate small farms into larger ones in China and elsewhere have suggested that new institutional arrangements and technology progress may increase the significant farm economies of size, and therefore challenging the classical inverse relationship (IR) between productivity and farm size. The purpose of this paper is to conduct a research to examine the existence of IR in China’s cereal production and further explore the possible mechanism. Design/methodology/approach Based on the panel data concerning farms from 31 provinces in China in 2009–2014, technology efficiency and allocation efficiency in cereal production were measured based on the Translog production function. Findings In China, an IR exists between wheat, rice and maize production after controlling the related variables. Further, the presence of this IR is due to allocation efficiency rather than technology efficiency. Results of technology efficiency show that there is no significant difference between different size groups; in other words, even the larger size groups enjoy a higher technology efficiency in rice production. Results of allocation efficiency demonstrate that, compared with the larger farms, smaller holders tend to invest more in factors which are beneficial in growing productivity. Hence, yields of small-size farms exceed those of large-size farms, which consequently leads to the IR. Practical implications The scale consolidation of cropland is harmless to the efficiency of factor utilization and, conversely, may contribute in improving the technology efficiency of specific crops (like rice). Based on the results of allocation efficiency estimation, the extent of misallocation in large scales is relatively less due to their less input of fertilizer and pesticide; thus, the size-improving policy of farmland may contribute to the ease of the non-point pollution in agriculture. Originality/value The existing discussions of the IR in the context of recent China mainly focus on the accurate verification of IRs. This paper steps forward from the perspective of technology efficiency and allocation efficiency and explores the exact resources of IR with up-to-date and representative data and hopes to find some new conclusions.

Perceptions of Precision Agriculture Technologies in the U.S. Fresh Apple Industry

Advances in precision agriculture technologies provide opportunities to improve the efficiency of agricultural production systems, especially for high-value specialty crops such as fresh apples (Malus domestica). We distributed an online survey to apple growers in Washington, New York, and Michigan to elicit stakeholder perceptions of precision agriculture technologies. Findings from this study demonstrated that growers are willing to adopt precision agriculture technologies when they receive results from applied research projects and are engaged with active extension programs. The availability of customized services and purchasing and rental options may minimize the effects of the economies of size that create barriers to adopting increasing access to technologies. Finally, respondents deemed collaborative efforts between industry and academic institutions crucial for adapting the innovation to better address the needs of growers.

Post acquisition business synergies of a foreign affiliate. Case study of companies in Nuevo Leon

Key words: Acquisition, globalization, Mexico, synergiesSummary: This article will explain the importance of creating synergies after having acquired foreign affiliates. Interviews were conducted to executives of four of the most important manufacturing companies in Nuevo Leon, which have been involved in the international acquisition process of foreign affiliates. Also presented are 10 areas where synergies may be obtained after having acquired a foreign affiliate, in accordance with (Marin and Ketelhohn, 2008) economies of size at corporate headquarters, greater opportunities for professional development, corporate image, interdivisional transactions, vertical integration, economies of scale and/or scope, coordination of skills, learning center, leverage of intangible assets and unleashing of skills.Palabras clave: Adquisición de empresas, globalización, México, sinergiasResumen: Este artículo explica la importancia de la creación de sinergias después de realizar una adquisición de filiales en el extranjero. Se realizaron entrevistas a ejecutivos de cuatro de las más importantes compañías manufactureras en Nuevo León con experiencia en un proceso de adquisición de filiales extranjeras. Asimismo, considerando el trabajo de Marin Ketelhohn (2008) se estudian 10 áreas en las cuales se hayan obtenido sinergiasdespués de haber adquirido una filial extranjera, esto es, economías de escala a nivel dirección del coorporativo, mayores oportunidades para el desarrollo profesional, imagen corporativa, transacciones interdivisionales, integración vertical, economías de escala y/o alcance, coordinación de habilidades, centros de aprendizaje, apalancamiento de activos intangibles.

Control of BRD in large dairy calf populations

Bovine respiratory disease (BRD) is a leading cause of morbidity and mortality in dairy calves. As the number of calves being raised on the dairy farm or at a calf-raising operation has become larger, both opportunity and risk have increased. Opportunities for applying economies of size and scale exist in these large dairy calf populations while meeting specific needs of the dairy calf. BRD control requires effective biosecurity and biocontainment efforts, adequate passive transfer of immunoglobulins, a strategic immunization program, and appropriate diagnostic strategies for ongoing disease surveillance. These components are necessary to achieve an evidence-based approach for preventing and reducing severity of BRD cases. Proper nutrition, housing, and environmental management are important for achieving optimal dairy calf health and performance. Good record keeping and analysis of outcomes are needed to document dairy calf health and performance and to efficiently identify new problems that require attention in these large dairy calf populations. Proper management of calves to prevent and control BRD requires careful planning and follow through to achieve those results but will likely pay big dividends in improved calf health and future productivity.

Business Decisions In A Cooperative Environment

<span style="font-family: &quot;Times New Roman&quot;,&quot;serif&quot;; font-size: 10pt; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA;">The trend for cooperative consolidation in the grain industry continues to be common throughout the United States.<span style="mso-spacerun: yes;">&nbsp; </span>In the state of Washington, for example, the total number of agribusiness cooperatives has decreased by nearly 40% over the past 3 decades.<span style="mso-spacerun: yes;">&nbsp; </span>Grain cooperatives in eastern Washington have diminished by 30% over this same period, and by 60% over the past 55 years (Monson, 2003).<span style="mso-spacerun: yes;">&nbsp; </span>The bulk of this reduction in numbers may be attributed to mergers and consolidations, but a few liquidations are also evident.<span style="mso-spacerun: yes;">&nbsp; </span>While many factors have contributed towards this long-standing trend, most would argue that a persistence of &ldquo;economies of size&rdquo; appears as a dominant force encouraging industry restructuring at almost every level.<span style="mso-spacerun: yes;">&nbsp; </span>The incentive and motivation to lower long-run average total costs by increasing size, capacity and volume is present for both types of grain agribusinesses (cooperatives and private (or publicly) owned businesses) while the implicit objective function for these different business forms is slightly different.<span style="mso-spacerun: yes;">&nbsp; </span>The primary objective for privately owned businesses is to maximize profit, subject to a constraint on technology which may be influenced by the private firm&rsquo;s access to capital and management expertise.<span style="mso-spacerun: yes;">&nbsp; </span></span>