Isabel Bardají

The Spanish beef sector in the 1990s: impact of the BSE crisis on efficiency and profitability

The beef sector has undergone a series of changes as a result of successive food scares and agricultural policy reforms. The purpose of the paper is to analyse technical efficiency and profitability in Spanish livestock enterprises during the 1990s, focusing on the possible impact of the BSE crisis and the 1992 CAP reform on each of these variables. The main findings reveal the existence of technical inefficiency during the sample period. Some factors have a positive impact, others a negative impact, on efficiency. As far as the effects of CAP reform and the BSE crisis are concerned, the results show the ineffectiveness of agricultural policy regulation to promote efficiency in the sector and the improvement in the efficiency as a consequence of the BSE crisis. The profitability analysis reveals the importance of direct subsidies, however. In their absence, a large percentage of holdings is unable to remunerate either own or rented factors. Analysis shows, therefore, that there are two counteracting effects from subsidies. On the one hand, they form a major part of the resources of livestock farmers, allowing them to meet input costs and preventing land abandonment. On the other hand, they have a significant negative impact on the level of technical efficiency estimated.

Exploring adaptation choices for grapevine regions in Spain

AbstractOur aim was to explore the adaptation choices to climate change in the grapevine regions of Spain from two points of view. First, what are the main reasons for concern? Second, how large is the adaptation effort in each region? We address the first question by measuring sensitivity to climate change with Huglin, Cold Night and Dryness Indices over the entire territory, providing information on the adaptation type (e.g. varieties, zoning, water allocation). We then estimate probabilistic projections across scenario, zone and sensitivity indices in the 56 Protected Designation of Origin areas to inform on the magnitude of the adaptation effort. Second, we propose an adaptation effort measure that is framed according to the local environmental context. Results suggest that most areas urgently need an adaptation plan due to the deterioration of production and quality indices as a result of climate change. Potential opportunities in many climate regions might be limited by current policy. The production objectives of quality and quantity trade-offs will probably need to be revised by analysing the sustainability of grapevine production.

Product Differentiation in the Spanish Beef Industry

Abstract This paper aims to investigate changes in the structure of the Spanish quality beef industry in response to the significant decline in beef consumption happened over the last few decades. The role of product differentiation, mechanisms and factors involved in it, are specially studied. We use focus groups and a survey to examine the outlook for the organization of the beef industry, and trends in the development of product differentiation mechanisms and vertical co-ordination strategies. Results reveal the existence of a restructuring process that is being implemented in two ways: Protected Geographical Indications (PGI) and Quality Certified Brands (QCB). Each strategy forms its own entry barriers: the origin of calves in the case of PGI and farm size in QCB; they are therefore complementary rather than competitive.

Uneven responses to climate and market influencing the geography of high-quality wine production in Europe

Analysis of the adaptive capacity and vulnerability of production systems faced with increasing risk from sources including climate change and fluctuating market forces is essential for the development of practical strategies to sustain product viability. In the wine production industry, market and climate risk factors are closely related. Climate influences both yields and quality and thereby prices and revenue, while market pressures force farmers to maintain levels of quality wine production in order to meet increasing consumer demand. This paper analyses wine production at regional European level by explaining technical efficiency in a multiple exposure context and exploring climate–efficiency and climate–performance relationships. The methodology includes estimation of a multi-output frontier production function and an inefficiency effects model. The results reveal significant effects of climate variables, most notably temperature, both on output and efficiency, as well as regional differences in adaptive capacity. The use of larger quantities of intermediate inputs has contributed to reducing the vulnerability of the northern regions to climate change, while labour and capital-intensive technologies have been used to adapt to market changes. The potential to improve economic performance by increasing technical efficiency is considerable, particularly in the southern regions, where the existing level is lower.

Export performance: insights on the Spanish wine industry

This paper examines the relative importance of intention in an export performance model using data from a postal survey of a sample of Spanish wineries. The results show that a more active intention to export has some predictive value for success in foreign markets. Other contributory factors include professional experience, firm size, geographical location and institutional support.

Do ‘Protected Geographical Indications’ (PGI)-Certified Farms Perform Better? The Case of Beef Farms in Spain

European rural development policy is gaining in importance through one of its key instruments, the Protected Geographical Indications (PGI) system, which is designed to improve quality standards. Previous research has shown that PGI-certified beef farms tend to be more extensively managed operations that are better adapted to mountainous areas. This paper describes a comparative study of two production systems, one with PGI certification and one without, focusing on a number of economic variables. The results show a positive association between PGI production and profitability. In efficiency terms, non-certified farms show better pure technical efficiency scores, while PGI-certified holdings score higher on scale efficiency.

Export Intentions of Wineries

The theory of reasoned action, initially proposed by Fishbein and Ajzen (1975) and Ajzen and Fishbein (1980), is one of the most widely used models that explains the relationship between attitudes, intentions and behaviour. The theory rests on the assumption that behaviour results from intentions, which in turn are the result of attitudes and subjective norms, the latter being a reflection of social norms (Beedell and Rehman 2000). Extending from this, the theory of planned behaviour (TPB), posited by Ajzen (1985, 1991), introduces perceived behavioural control or perceived ability to perform an action as additional factors to explain intentions. This theory, which focuses on the motives underlying decisions, may prove useful in exploring the internal determinants of export behaviour (Marshall et al. 2005; Sommer 2010;Sommer and Haug 2011).