Original scientific paper

https://doi.org/10.15567/mljekarstvo.2018.0307

Value-based food chains as an opportunity to improve the economic situation of dairy farms: a translog profit function approach

Jernej Prišenk orcid.org/0000-0002-6799-5378 ; University of Maribor, Faculty of Agriculture and Life Sciences, Pivola 10, 2311 Hoče, Slovenia
Ivo Grgić orcid.org/0000-0003-3900-4925 ; University of Zagreb, Faculty of Agriculture, Svetošimunska 25, 10000 Zagreb, Croatia
Magdalena Zrakić orcid.org/0000-0002-0577-1109 ; University of Zagreb, Faculty of Agriculture, Svetošimunska 25, 10000 Zagreb, Croatia
Jernej Turk ; University of Maribor, Faculty of Agriculture and Life Sciences, Pivola 10, 2311 Hoče, Slovenia

Abstract

This paper utilizes available data sets and a single translog profit function to examine the performance of dairy farms operating in mountain and lowland areas, respectively. A translog profit model estimates reveal an apparent trend going toward explaining the better economic performance of highland dairy farms stemming from their capability to adjust accurately to underlying changes in the milk market. The empirical analysis finds mostly inelastic price elasticity trends. Translog profit model alleviates the path of understanding in explaining the better economic situation of these high-land dairy farms stemming from their capability to adjust adequately and promptly to ongoing changes in the milk market. Finally, the results of the study could at the same time deliver a new dimension in further debate about CAP post-2020 developments.

Keywords

agro-food chain; value added; dairy farms; mountain regions; translog profit function

Hrčak ID:

202368

URI

https://hrcak.srce.hr/202368

Publication date:

28.6.2018.

Article data in other languages: croatian

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