OECD Economist presents analysis on productivity
Date published:
In an AFBI seminar on the 1st February Dr Shingo Kimura from the Organisation for Economic Co-operation and Development (OECD) presented cross-country comparisons of drivers of the productivity of specialist dairy farms in England, Estonia and the Netherlands.
Changes in the productivity of specialist dairy farms were driven by the interactions of three main drivers:
- the exit of less productive small farms and entry of more efficient units;
- resource reallocation between the remaining farms resulting in farm size expansion; and
- productivity growth at the individual farm level.
In England the positive impacts of exit and entry along with resource reallocation between farms was outweighed by a decline in on-farm productivity, resulting in an overall decline in dairy farm productivity at the sector level.
At the individual farm level it was stressed that efficient management of inputs was crucial in enhancing dairy farm productivity.
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