Athanasios Ragkos

Minimizing adverse environmental effects of agriculture: a multi-objective programming approach

The mitigation of adverse effects of agriculture on ecosystems, due to the use of agrochemicals and irrigation water, is expected to have implications on farm incomes. This study examines the possibilities of simultaneously achieving environmental goals such as the reduction of agrochemical and irrigation water use as well as acceptable farm incomes. The empirical analysis employs the multi-objective programming method in order to define alternative crop plans for River Strymonas region in Greece. The results reveal considerable possibilities for reducing input use as well as severe impact on incomes in terms of gross margin, which indicate a wide range of policy options. It is argued that the choice of the ideal solution should be based on several criteria including non-market values of environmental benefits, the particular objectives of policy makers and human preferences, especially the acceptance of each crop plan by stakeholders.

Using the choice experiment method in the design of breeding goals in dairy sheep.

Market failures are the main cause of poor acknowledgement of the true impact of functional sheep traits on the management and economic performance of farms, which results in their omission from the breeding goal or the estimation of non-representative economic weights in the breeding goal. Consequently, stated-preference non-market valuation techniques, which recently emerged to mitigate these problems, are necessary to estimate economic weights for functional traits. The purpose of this paper is to present an example of the use of a choice experiment (CE) in the estimation of economic weights for sheep traits for the design of breeding goals. Through a questionnaire survey the preferences of sheep farmers are recorded and their marginal willingness to pay (MWTP) for 10 production and functional traits is estimated. Data are analysed using random parameter logit models. The results reveal unobserved preference heterogeneity for fertility, adaptability to grazing and resistance to disease, thus highlighting that these traits are appreciated differently by farmers, because their needs are diverse. Positive MWTP is found for Greek breeds, high milk production and lambs with low fat deposition, for which there is high demand in Greek markets. On the other hand, MWTP for the cheese-making ability of milk is negative, stemming from the fact that sheep milk prices in Greece are not formulated according to milk composition. In addition, farmers seem to understand differences between udder shapes and attribute different values to various types. This application of the CE method indicates that communication channels among farmers and breeders should be established in order to enhance market performance and to provide orientation to the design of breeding programmes. Non-market valuation can be used complementarily to market valuation techniques, in order to provide accurate estimates for production and functional traits.

Technical indicators of economic performance in dairy sheep farming

In this study, the level of technical efficiency of 58 sheep farms rearing the Chios breed in Greece was measured through the application of the stochastic frontier analysis method. A Translog stochastic frontier production function was estimated using farm accounting data of Chios sheep farms and the impact of various socio-demographic and biophysical factors on the estimated efficiency of the farms was evaluated. The farms were classified into efficiency groups on the basis of the estimated level of efficiency and a technical and economic descriptive analysis was applied in order to illustrate an indicative picture of their structure and productivity. The results of the stochastic frontier model indicate that there are substantial production inefficiencies among the Chios sheep farms and that these farms could increase their production through the improvement of technical efficiency, whereas the results of the inefficiency effects model reveal that the farm-specific explanatory factors can partly explain the observed efficiency differentials. The measurement of technical inefficiency and the detection of its determinants can be used to form the basis of policy recommendations that could contribute to the development of the sector.

In Search of Strategies to Face the Economic Crisis: Evidence from Greek Farms

Abstract This study examines the strategies – defensive or aggressive, individual or collective – undertaken by sheep farms in a Greek rural area in order to face the repercussions of the economic crisis and their effects on the productivity and economic performance of these farms. The article presents the results of a farm management survey conducted in 2010 and repeated in 2014 in northern Evros, Greece. The mix of strategies – mainly passive – adopted by farmers shows their confusion in the face of crisis conditions, which has resulted in reduced productivity, more use of family labour and a rise in collective actions.

Dairy Farmers’ Strategies against the Crisis and the Economic Performance of Farms☆

Abstract Dairy farming in Greece constitutes a particular case of livestock farming, because of its highly entrepreneurial nature. The modern Greek dairy cattle farming is predominantly based in Northern Greece, where more than 80% of Greek cow milk is produced. Since the 2000s the dairy cattle sector is characterized by a rapid increase in the mean size of farms, which permits them to undertake investments in machinery and buildings and to have access to improved genetic material for the achievement of higher productivity. Nevertheless, this development renders dairy farms vulnerable to volatile economic conditions, as they are heavily dependent on capital endowments. The main purpose of this study is to examine the consequences of the economic crisis on the dairy cattle sector and the strategies undertaken by farmers to cope with it. The analysis is based on data from a questionnaire survey of farmers in Northern Greece. Strategies undertaken by dairy farmers in order to face the crisis and to ensure the survival of their businesses are recorded through a set of Likert-scale questions. Technical and economic data are also analyzed in order to examine the economic performance of farms, revealing that the sampled dairy farms are viable, with satisfactory economic results, with capital returns of 6.2% annually. Based on the Likert-scale data, dairy farmers adopt active strategies to face the crisis, by undertaking investments and augmenting their farm sizes, while they deem that the crisis does not have catastrophic results on the profitability of their farms. On the other hand, strategies which entail less expenses and/or diminished productivity are unpopular among dairy farmers. Finally, the vast majority of respondents claim to have seen negative consequences on their farms from the recent measures concerning the prolongation of the duration of fresh milk in retail markets: lower quality, increased vulnerability to international competition, shrinking dairy sector.

Exploring the reproduction practices of dairy farms: a typology

The purpose of this study is to examine the profile of dairy farms according to their reproduction management practices. Using established methodological tools on data from an extensive survey of 123 dairy farms the analysis yields five alternative profiles. It appears that artificial insemination is the preferred method of reproduction, however a non-trivial percentage (22%) also applies natural mating - solely or complementarily. Farms having adopted modern practices are divided in those which use them efficiently and those which lack the technical training to implement them properly; on the other hand, experienced farmers tend to keep established methods.

Technical efficiency measurement of mussel aquaculture in Greece

In this study, the non-parametric data envelopment analysis was applied in a sample of 66 mussel aquaculture farms for the estimation of the level of technical efficiency. The differences in this estimated level of efficiency were investigated through the application of a Tobit regression model and a technical and economic descriptive analysis provided an indicative picture of the structure and the economic performance of the efficient farms. The results indicated significant inefficiencies in the utilization of the existing production technology. The estimated mean technical efficiency was 0.761, indicating that the mussel farms could increase their production by 23% given the level of inputs. Moreover, the results of the Tobit regression model showed that socio-demographic variables, such as farmer’s age, experience in aquaculture, vocational training, and level of education, can partly explain the efficiency differentials. The technical and economic analysis showed that the efficient mussel farms compared to the inefficient farms are larger in size, use less labor per hectare of sea area, and achieve higher net profit.

Defining the breeding goal for a sheep breed including production and functional traits using market data

In this study, the economic values for production and functional traits of dairy sheep are estimated through the application of a profit function model using farm-level technical and economic data. The traits incorporated in the model were milk production, prolificacy, fertility, milking speed, longevity and mastitis occurrence. The economic values for these traits were derived as the approximate partial derivative of the specified profit function. A sensitivity analysis was also conducted in order to examine how potential changes in input and output prices would affect the breeding goal. The estimated economic values of the traits revealed their economic impact on the definition of the breeding goal for the specified production system. Milk production and fertility had the highest economic values (€40.30 and €20.28 per standard genetic deviation (SDa)), while, mastitis only had a low negative value of -0.57 €/SDa. Therefore, breeding for clinical mastitis will have a minor impact on farm profitability because it affects a small proportion of the flock and has low additive variance. The production traits, which include milk production, prolificacy and milking speed, contributed most to the breeding goal (70.0%), but functional traits still had a considerable share (30.0%). The results of this study highlight the importance of the knowledge of economic values of traits in the design of a breeding program. It is also suggested that the production and functional traits under consideration can be categorized as those which can be efficiently treated through genetic improvement (e.g. milk production and fertility) while others would be better dealt with through managerial interventions (e.g. mastitis occurrence). Also, sub-clinical mastitis that affects a higher proportion of flocks could have a higher contribution to breeding goals.