Does multi-functionality affect technical efficiency? A non-parametric analysis of the Scottish dairy industry.

A P Barnes

doi:10.1016/j.jenvman.2005.09.020

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Does multi-functionality affect technical efficiency? A non-parametric analysis of the Scottish dairy industry.

A P Barnes

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Abstract

Recent policy changes within the Common Agricultural Policy have led to a shift from a solely production-led agriculture towards the promotion of multi-functionality. Conversely, the removal of production-led supports would indicate that an increased concentration on production efficiencies would seem a critical strategy for a country's future competitiveness. This paper explores the relationship between the 'multi-functional' farming attitude desired by policy makers and its effect on technical efficiency within Scottish dairy farming. Technical efficiency scores are calculated by applying the non-parametric data envelopment analysis technique and then measured against causes of inefficiency. Amongst these explanatory factors is a constructed score of multi-functionality. This research finds that, amongst other factors, a multi-functional attitude has a significant positive effect on technical efficiency. Consequently, this seems to validate the promotion of a multi-functional approach to farming currently being championed by policy-makers.

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Dairy Products Food Industry Scotland Statistics, Nonparametric Journal Article

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A P Barnes. 2006-03-23. Does multi-functionality affect technical efficiency? A non-parametric analysis of the Scottish dairy industry.. https://doi.org/10.1016/j.jenvman.2005.09.020

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