Christos J. Pantzios

Technical efficiency of alternative farming systems: the case of Greek organic and conventional olive-growing farms

Abstract Olive-growing is a major farming activity in Greek agriculture. This paper analyzes empirically the technical efficiency of organic and conventional olive-growing farms using a stochastic production frontier methodology and a translog functional specification. Findings indicate that the organic olive-growing farms examined exhibit a higher degree of technical efficiency (relative to their production frontier) than do conventional olive-growing farms. Reasons may include lower profit margins and restrictions on inputs permitted, thus forcing organic farmers to be more cautious with input use. However, both input- and output-oriented technical efficiency scores are still relatively low for both types of olive-farming. Thus there is considerable scope for cost reducing and farm income improvement in both farming modes. This could prove crucial for the long-run viability and the future course of the sector.

Measuring multiple and single factor technical efficiency in organic farming

Estimates the output‐oriented and input‐specific technical efficiency in two samples of Greek, durum wheat farms – organic and conventional ones – using Kalirajan and Obwona’s stochastic varying coefficient regression model. Findings indicate that the organic wheat farms examined are relatively more efficient. Reasons may include lower profit margins and restrictions on inputs permitted, which may force organic farmers to be more cautious with input use. However, technical efficiency scores are still relatively low for both types of wheat farming. Therefore, considerable scope for cost reducing and farm income improvement may exist in both farming modes. This realization could prove crucial for the long‐run viability and the future course of organic wheat farming.

The impacts of regulated notions of quality on farm efficiency: A DEA application

Recent European Union policy has attempted to regulate agricultural quality production through schemes that either place emphasis on the physical properties and the geographical zone of production of denominated products or on methods and processes of production of organic products. This paper attempts to examine the effects of these two distinct regulated notions of quality on farm efficiency, by estimating efficiency scores using data envelopment analysis (DEA) on a sample of Greek black currant producers who either employ conventional methods of production or organic methods, and who are located either inside or outside a denominated zone of quality production. Findings indicate that the location of the farm significantly affects the technical and scale efficiency scores in the sample of conventional producers, while it does not have any statistically significant effect in the sample of organic farmers. Thus, regulating quality in terms of organic production weakens the effectiveness of regulating quality in terms of the geographical area and denomination of production. Due to these conflicting impacts of quality policy on farm efficiency, the incentives for the cultivation of organic products should apply only outside the denominated areas of quality production.

Malmquist productivity index estimation with zero-value variables: The case of Greek prefectural training councils

Abstract The paper suggests a technique for the parametric estimation of the Malmquist productivity growth index when the dataset to be analyzed contains a considerable number of observations with zero values. A dummy variable technique suggested by Battese (J. Agric. Econom. 48 (1997) 250) is extended to a translog specification of the input distance function. Moreover, technical changes (TCs) are decomposed into neutral and biased components and the sources of total productivity growth are computed via formulae explicitly accounting for the discrete nature of the data. Our approach has been applied to the Greek prefectural training councils—a state extension system for the general public. Findings indicate a considerably negative productivity growth primarily attributable to regressive TC.

Evading Farm Support Reduction via Efficient Input Use: The Case of Greek Cotton Growers

The present paper examines the importance that efficient resource use may have for cotton growers under the current EU policy regime. To that end, input-oriented technical and scale efficiency score for a sample of 172 cotton-growing farms are empirically quantified. The results suggest that cotton farms in the sample are not efficient mainly due to the nature of the policy regime governing the sector throughout EU. By becoming efficient, the co-responsibility levy will be reduced by 18.3% and farms may increase their profits by 50.1% on the average.

The Role of Public Infrastructure in the Agricultural Sector

With the establishment of the World Trade Organization (WTO), as the world appears to be moving towards a freer agricultural trade regime, questions around competitiveness become front line issues in the relevant research and policy agendas. However, the data required for quantitative analysis is not yet available, so that studies addressing these questions will necessarily remain exploratory in nature. Among the key variables influencing the competitiveness of agriculture is productivity (Barkema, Drabestott, and Tweeten, 1990). Productivity is dependent on investment decisions made by the farmer, as well as investment decisions made by the state, including public infrastructure. Competitiveness is often achieved at the expense of environmental sustainability, and public pressure calls for action in this arena too. Environmental sustainability in agriculture is usually approached using qualitative analysis.

Stochastic Trends in Productivity Analysis: An Application to the Fleet of Bottom Trawlers

The use of fishing nets to sweep the sea bottom is a fishing method widely criticized for the adverse environmental impact it may cause via indiscriminate harvesting or overharvesting of fish populations. In Greece, although the fleet of bottom trawlers constitutes less than 5 percent of the total number of vessels operating in the country, it accounts for almost 20 percent of the total catch. The activities of the fleet are closely monitored by National and EU authorities because of their serious impact on fish populations. A number of additional restrictions have also been imposed on this fishing method via a set of EU regulations since the early 1990s.