Feed prices and production costs on Spanish dairy farms

This paper analyses the impact of livestock feed prices and pasture quality on the long and short-term costs of milk production in a region of Spain (Navarre). The empirical results are obtained from the estimation of a flexible short-run cost function, followed by the approximation of long-run equilibrium based on the quasi-fixed factors adjusted to their optimal levels. The results reveal a high sensitivity of milk production costs to changes in livestock feed prices due to two reasons. One is that, as milk production expands, it tends to become technologically more intensive. The other is that, in the current structure of dairy farming, land input is suboptimal, particularly in the case of large farms and areas of poor pasture. The results reveal that short-run substitution between feed and livestock is a potential strategy for farms to respond to feed price increases. They also suggest that structural policies designed to strengthen the dairy sector’s competitiveness should vary according to agro-climatic conditions. In areas of poor pasture, herd growth might be used as a long-term measure to increase competitiveness through economies of scale; while the alternatives for farms in better-endowed regions also include extensification of dairy production.This paper analyses the impact of livestock feed prices and pasture quality on long and short-term milk production costs in a region in Spain (Navarre). The empirical results are obtained by estimating a flexible short-run cost function and then approximating long-run equilibrium by adjusting the quasi-fixed factors to their optimal levels. The results reveal a high sensitivity of milk production costs to changes in livestock feed prices due to two reasons. One is that milk production tends to become technologically more intensive as milk production expands. In optimum conditions, large dairy farms appear to become less land-dependent and to rely more heavily on purchased livestock feed. The other is that the current dairy farm structure shows suboptimal quantity of land, particularly by large farms and in areas with poor pasture quality. The results reveal that short-run substitution between feed and livestock is a potential strategy for farms to respond to feed price increases. The results also suggest that structural policies to strengthen the dairy sector’s competitiveness could be made to vary across agro-climatic areas. In poor pasture areas, herd growth might be used as a long-term measure to increase competitiveness through economies of scale; while the alternatives for farms in better-endowed regions also include extensification of dairy production

More is better than one: the impact of different numbers of input aggregators in technical efficiency estimation

The results of an experiment with simulated data show that combining inputs with different criteria (as cost, material inputs aggregates and other) increases the accuracy of the Data Envelopment Analysis (DEA) technical efficiency estimator in data sets with dimensionality problems. The positive impact of this approach surpasses that of reducing the number of variables, since replacement of the original inputs with an equal number of aggregates improves DEA performance in a wide range of cases

Input aggregation bias in technical efficiency with multiple criteria analysis

We extend the Tauer (2001) and Färe et al. (2004) analyses of aggregation bias in technical efficiency measurement to multiple criteria decision analysis. We show input aggregation conditions consistent with multiple criteria evaluation of overall efficiency in conjunction with variation in aggregation bias

More is better than one: the impact of different numbers of input aggregators in technical efficiency estimation

The results of an experiment with simulated data show that combining inputs with different criteria (as cost, material inputs aggregates and other) increases the accuracy of the Data Envelopment Analysis (DEA) technical efficiency estimator in data sets with dimensionality problems. The positive impact of this approach surpasses that of reducing the number of variables, since replacement of the original inputs with an equal number of aggregates improves DEA performance in a wide range of cases

A note on the impact of multiple input aggregators in technical efficiency estimation

The results of an experiment with simulated data show that using multiple positive lineal aggregators of the same inputs instead of the original variables increases the accuracy of the Data Envelopment Analysis (DEA) technical efficiency estimator in data sets beset by dimensionality problems. Aggregation of the inputs achieves more than the mere reduction of the number of variables, since replacement of the original inputs with an equal number of aggregates improves DEA performance in a wide range of case

A note on the impact of multiple input aggregators in technical efficiency estimation

The results of an experiment with simulated data show that using multiple positive lineal aggregators of the same inputs instead of the original variables increases the accuracy of the Data Envelopment Analysis (DEA) technical efficiency estimator in data sets beset by dimensionality problems. Aggregation of the inputs achieves more than the mere reduction of the number of variables, since replacement of the original inputs with an equal number of aggregates improves DEA performance in a wide range of case

Cost-constrained measures of environmental efficiency: a material balance approach

Joint cost-environmental efficiency analysis based on the material balance principle (MBP) has an important short-coming, in that the measures of allocative efficiency it produces do not fully integrate environmental and economic outcomes. Their limitation lies in their failure to take into account some decision-making units (DMU) use a combination of inputs that is more environmentally-harmful than that of the least-cost unit, or, more rarely, more costly than that of the least-polluting unit. Input substitution can therefore bring both environmental and economic benefits. This paper develops a method for differentiating between environmental allocative efficiency gains that involve an economic trade-off and those that do not. Drawing insight from the literature on multi-criteria analysis, we extend the MBP approach to new measures of cost-constrained environmental efficiency using data envelopment analysis (DEA). The proposed approach is illustrated by an application geared to assessing the efficiency of a sample of greenhouse horticultural production units in Almeria, Spain. The results for this case show that it is possible to increase environmental allocative efficiency by up to 34 % on average without incurring additional costs

Algal diversity associated with Patella candei candei D’Orbigny, 1840 (a limpet on the verge of extinction) on the island of Fuerteventura

Environmental degradation and over-fishing have taken the limpet Patella candei candei D´Orbigny, 1840 to the brink of extinction in the Canaries archipelago, where only a few populations persist on the island of Fuerteventura. Efforts to conserve this endemic Macaronesic species are centred on characterising the habitats of these different populations. Seaweed is an important resource in the feeding of this species, and therefore the study of marine flora and vegetation is necessary. In the present paper, 10 taxa are recorded for the first time on Fuerteventura; indeed, our citation of Nodularia harveyana Thuret ex Bornet et Flahault is the first for the entire Canary Islands.Los problemas ocasionados por la degradación medioambiental y la práctica de un marisqueo excesivo han llevado al gasterópodo Patella candei candei D'Orbigny, 1840 al borde de la extinción en el litoral canario, donde únicamente se mantienen algunas poblaciones en la isla de Fuerteventura. La conservación de este molusco endémico macaronésico se centra en la caracterización del hábitat de las diferentes poblaciones. Las algas son un recurso importante en la alimentación de esta especie, por ello es fundamental el estudio de la flora y la vegetación marinas de su entorno. En este trabajo se citan por primera vez diez especies de algas para la isla de Fuerteventura, y en él, la presencia de Nodularia harveyana Thuret ex Bornet et Flahault constituye la primera cita para el archipiélago canario.Instituto Español de Oceanografí