The determinants of a dairy farmer to stay in business : the case of Jämtland County
Agricultural production essential for human livelihood generating: food, fiber, and ecosystem services is conducted worldwide. All since the introduction of modern technology within the agricultural sector the productivity rate on farm level has increased significantly (Zvelebil & Dolukhanov, 1991)...
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| Formato: | H3 |
| Lenguaje: | Inglés sueco |
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SLU/Dept. of Economics
2016
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| Sumario: | Agricultural production essential for human livelihood generating: food, fiber, and ecosystem services is conducted worldwide. All since the introduction of modern technology within the agricultural sector the productivity rate on farm level has increased significantly (Zvelebil & Dolukhanov, 1991) and farm units have become larger in size (MacDonald et al., 2000). In Western Europe such development has led to a decrease in the number of farmers conducting production and Sweden is no exception (The Swedish Board of Agriculture, 2012). All since 2005 the number of Swedish dairy farmers conducting production has declined with 21 % (LRF Milk, 2015a), as for the case of Jämtland County the corresponding number is 50 % (LRF Milk, 2014:pers., com., Eriksson, 2015). Furthermore the overall rate of cattle grazing in the region has declined with 13 % during the same period of time (LRF Milk, 2015c). The reduction in the number of cattle grazing contributes to a number of societal consequences in Jämtland County: discouraging biodiversity (Jämtland County Administrative Board, 2010), taking fertile agricultural land out of production (Bruinsma, 2009) and decreasing the number of job opportunities in rural areas (SN, 2015).
Given the information above the aim of this study was to identify factors, if any, influencing dairy farm owners/farm managers in Jämtland County when making a business related decision with respect to further dairy farm maintenance. The objective of the study was also based on the findings to comment on the future of Jämtland County’s dairy sector. The data used to conduct the analysis was collected through a mixed method approach, using surveys and interviews.
The results from the quantitative study (surveys), according to estimations from an ordered probit model showed that the farm owners/farm manager in Jämtland County considered the following factors when making decisions with respect to further dairy farm maintenance, the number of employees on farm level, the farmers year of birth (age) and the parameter uncertainty (changes in weather conditions, outbreaks of various diseases and pests). Furthermore the study showed that the farm location seemed to be of significance, as a producer operating in Åre County was less likely to maintain production over time.
The results of the qualitative study (case studies, interviews) showed that dairy farm owners/farm managers in Jämtland County considered factors such as availability of new technology, agricultural land and labor, together with their family situation, possibilities to co-operate with other producers geographically, regulations related to production and the option of receiving financial support from the EU and Swedish Government when making business-related decisions with respect to further dairy farm maintenance. |
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