Measuring economic productivity of meat cattle farms in the Balkan Member States of the European Union
DOI:
https://doi.org/10.61308/GLMY2571Keywords:
farm structure, meat cattle farming, economic productivity, Balkans, European UnionAbstract
Farm structure as a scale identifier is a crucial production objective for creating value-added and farm profitability while maintaining rural areas’ viability, productivity, and sustainability. On the other hand, productivity is one of the most important components in efficiency measurements. This study aims to compare the productivity conditions in terms of livestock units, labor force, and farm capital of the Balkan cattle farms that are producing high nutrient value for human consumption and keeping the natural environment in a productive shape as well.
Indicators and the variables that are the objects of the study are forming a final index of productivity and are related to the performance of the working force, livestock, and capital.
As structures, the Balkan farms are smaller than the average of the EU in terms of the most important economic categories: the total utilized agricultural area, total livestock units, and, respectively, the farm capital. The comparison includes Bulgaria, Romania, Greece, Croatia, and Slovenia, while as a benchmark, the average EU level covering a time period from 2013 to 2023 is used. The Farm Accountancy Data Network provides the dataset used, combining variables to estimate productivity as output-based measures. Productivity is calculated by comparing the total gross output per unit of labor and capital. Livestock productivity is measured involving the gross output of animal origin.
Results reveal all the Balkan Member States are below the reference level, while the highest increase of labor productivity in the cattle meat sector belongs to Romania and Croatia, while Greek farmers are losing positions in recent years. In terms of capital productivity, Romania is the highest performer; even Bulgaria is a competitor during the first stage of the studied period, and only Slovenia is below the EU reference. The competition in productivity of livestock units is led by Croatia and Romania, while Bulgaria is at the bottom. The total productivity indicator refers to the fact that only Romania is able to deliver significantly higher results than the benchmark, as is no other Balkan member state; even Croatia is trying to follow the EU trend.
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