RESEARCH PAPER
RESULTS OF DAIRY FARMS IN POLAND COMPARED TO THE LARGEST MILK PRODUCERS IN THE EUROPEAN UNION
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Instytut Ekonomiki Rolnictwa i Gospodarki Żywnościowej – Państwowy Instytut Badawczy Warszawa
Acceptance date: 2017-12-07
Publication date: 2017-12-11
Zagadnienia Ekonomiki Rolnej / Problems of Agricultural Economics 2017;353(4):24-49
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ABSTRACT
The article presents economic results and production efficiency in milk production farms in the six EU countries, which are the largest producers in the EU (i.e. Germany, France, Great Britain, Poland, the Netherlands and Italy). The analysis used FADN EU average data for 2010-2013. The results of Polish farms in 2014-2015 were also evaluated, the data collected in the Polish FADN system was used. The measure of the economic situation of farms was net added value and farm income. Production efficiency was assessed using the productivity index of inputs and fixed assets, profitability index of production and the relation of costs to value production and to farm income without subsidies. The investment activity, the level of debt and the wealth of the farm and its use were also analysed.
In terms of production efficiency dairy farms in Italy and Poland stand out. This is shown by high profitability of production, relatively low costs, production of 100 euro value of production and 100 euro of income without subsidies and high productivity of inputs. The results were influenced by low level of debt of farms, as a result lower costs. In the case of Italian farms, liabilities financed 1.1% of the value of their assets, in the case of Polish farms – 5.7%, while 42.7% for French farms. This means that French farms were characterized by high financial risks related to running a production activity. Polish FADN data indicate a deterioration of the income situation of dairy farms in Poland in 2015 (i.e. after the abolition of milk quotas) compared to 2014. Income without subsidies decreased by 50.7% and income with subsidies – by 15.4%. Due to lower revenues (e.g. due to the fall in the price of milk), the economic efficiency of production has also deteriorated.