TECHNICAL EFFICIENCY IN ORGANIC AND CONVENTIONAL FARMING: EVIDENCE FROM ITALIAN CEREAL FARMS

A stochastic frontier production model was applied to estimate technical efficiency in a sample of Italian organic and conventional cereal farms. The main purpose was to assess which production technique revealed higher efficiency. Statistical tests on the common production function model suggested that the two cultivation methods might lie on different frontiers. Separate analyses of two sub-samples (93 and 138 observations for organic and conventional farms, respectively) found that conventional farms were significantly more efficient than organic farms, with respect to their specific technology (0.902 vs. 0.831). Analysis also estimated that efficiency plays a crucial role into the factors affecting productivity in the organic process. Some policy implications can be drawn from these findings

Technical Efficiency in Organic Farming: An Application on Italian Cereal Farms Using a Parametric Approach

A stochastic frontier production model was applied to estimate technical efficiency in a sample of Italian organic and conventional cereal farms. The main purpose was to assess which production technique revealed higher efficiency. Statistical tests on the pool sample model suggested that differences between the two cultivation methods were significant from a technological viewpoint. Separate analyses of two sub-samples (93 and 138 observations for organic and conventional farms, respectively) found that conventional farms were significantly more efficient than organic farms, with respect to their specific technology (0.892 vs. 0.825). This implies that organic (conventional) cereal farmers could increase their income to 99.19 /ha (40.95 /ha). Analysis also estimated that land was the technical input with the highest elasticity for both technologies. Furthermore, findings indicated that 63.7% of the differentials between observed and best-practice output was explained by technical inefficiency for the conventional group, while this value was close to unity for organic farms. Some policy implications can be drawn from these findings.organic farming, comparison analysis, cereal-growing, technical efficiency, stochastic frontier production models, Crop Production/Industries, C61, Q18,

Parametric Estimation Of Technical And Scale Efficiencies In Italian Citrus Farming

Ray (1998) has proposed a model for estimating scale efficiency using a parametric approach. Following this methodology, a scale efficiency measure is obtained from the estimated parameters of the production frontier function and from the estimated scale elasticities. This study aims to estimate technical and scale efficiencies achieved by the Italian citrus fruit-growing farms. A stochastic frontier production model is considered in order to estimate technical and scale efficiencies. The analysis is expected to estimate the role of both technical and scale efficiencies in conditioning productivity. Particular attention is put on determining the (technical and scale) inefficiency effects associated with a set of structural and environmental variables that should affect efficiency and on the relationship between technical and scale efficiency scores. Empirical findings suggest that the greater portion of overall inefficiency in the sample might depend on producing below the production frontier than on operating under an inefficient scale. Indeed, room for improving technical efficiency is, on average, larger (29%) than the margin due to scale inefficiency (18.2%). Results also indicate a weak relationship between the two efficiency measures.Technical efficiency Scale efficiency Stochastic Frontier Analysis Citrus farming Italy

A Comparative Analysis of Organic and Conventional Farming trough the Italian FADN

This paper presents some results from a wider research on economic and environmental sustainability of organic farming. It aims to compare organic and conventional farming in order to identify some of the main differences between those groups of farms that participated in the official Farm Accountancy Data Network (FADN)-2003. The study is organized in two sections. The first part, after a brief literature review of the most recent statistical methodologies applied to identify the two similar groups of farms, presents some key economic variables (production, costs and revenues) and the most widely-used structural, economic and balance sheet indexes. The second part describes findings from a case study on the Italian fruit-growing sector. A non-parametric input-oriented frontier analysis (Data Envelopment Analysis, DEA)was used to evaluate which technique makes better use of their disposable productive inputs. Findings show that organic farmers can (partially) overcome the productivity gap (with respect to conventional ones) by more efficient use of their inputs (with respect to their own frontier)

Organic and Conventional Farming: a Comparison Analysis through the Italian FADN

This paper shows some results arisen from a wider research on economic and environmental sustainability of organic farming. It focuses on organic and conventional farming comparison through an investigation of Italian FADN data. In order to identify some of the main differences between organic and conventional farms a “distance analysis” has been carried out. The study aims to highlight some of the main characteristics of those two groups of farms to better address differences (if any) in production technology, costs and revenues. Furthermore it shows the findings of a non-parametric efficiency analysis on the Italian olive-growing farms. The purpose is to estimate difference in efficiency and productivity between organic and conventional olive producers. Results reveal that looking at the average values on Invested Areas, conventional farms’ Gross Production is significantly higher than the organic ones, as the Net Margin, as the Net Product and Costs. The average values on Total Labour Force instead, shown that, even if conventional farms still have higher values than organic ones, the “distance” become shorter. That means that the two groups are quite similar and that, even if organic farms still produce a lower “economic value”, they better compensate productive factors, especially in terms of Labour Force. Regards to efficiency analysis, we found that organic olive-growing farms are more able in using their disposable resources (with reference to their own frontier), and the higher efficiency permits them to compensate the lower productivity with respect to the conventional farms

Organic and Conventional Farming: a Comparison Analysis through the Italian FADN

This paper shows some results arisen from a wider research on economic and environmental sustainability of organic farming. It focuses on organic and conventional farming comparison through an investigation of Italian FADN data. In order to identify some of the main differences between organic and conventional farms a “distance analysis” has been carried out. The study aims to highlight some of the main characteristics of those two groups of farms to better address differences (if any) in production technology, costs and revenues. Furthermore it shows the findings of a non-parametric efficiency analysis on the Italian olive-growing farms. The purpose is to estimate difference in efficiency and productivity between organic and conventional olive producers. Results reveal that looking at the average values on Invested Areas, conventional farms’ Gross Production is significantly higher than the organic ones, as the Net Margin, as the Net Product and Costs. The average values on Total Labour Force instead, shown that, even if conventional farms still have higher values than organic ones, the “distance” become shorter. That means that the two groups are quite similar and that, even if organic farms still produce a lower “economic value”, they better compensate productive factors, especially in terms of Labour Force. Regards to efficiency analysis, we found that organic olive-growing farms are more able in using their disposable resources (with reference to their own frontier), and the higher efficiency permits them to compensate the lower productivity with respect to the conventional farms.FADN Sampling Organic Farming Distance Efficiency Analysis

The Motivational Profile of Organic Food Consumers: a Survey of Specialized Stores Customers in Italy

Organic food demand is becoming increasingly important throughout the world. Despite this relevance, however, not many attempts have been carried out to profile this food market segment. This paper aims to investigate on motivations that drive consumers towards purchasing organic foods in Italy. Through a survey carried out in some organic specialized stores sited in Sardinia, we explored organic consumer behaviour with specific emphasis on understanding consumer reasons to buy organic products. A Multiple Correspondence Analysis has obtained four consumers’ motivational profiles and several findings. Furthermore, a Logit regression allowed us to evaluate the relationships between individual motivations and some socio-demographic characteristics of organic consumers. Some marketing and policy implications arise from the obtained results

Technical Efficiency in the Sheep Dairy Industry: an Application on the Sardinian (Italy) Sector

Sardinia (Italy) is one of the most important European regions for sheep dairy and sheep milk cheese production. However the Sardinian sheep dairy industry is currently going through a dramatic crisis, and verifying whether it can recover part of its profitability is now a priority. Attention is now focused on estimating whether the sheep dairy firms can improve their productivity by more efficient use of their available technical resources. This paper aims to estimate technical efficiency in the Sardinian sheep dairy industry. A stochastic frontier analysis approach was used on panel data from 36 sheep dairy firms over the period 2004-2009 in order to assess whether there are some margins for technical improvements in productivity, given the existing level of technology. A comparative analysis of private firms and cooperatives was also carried out, in order to establish if there were differences in the technology they used and/or their efficiency in using technical inputs. Our findings suggest that there is technological homogeneity among the firms and between private firms and cooperatives. Technical efficiency is equal to 0.905 and it is significantly different between private firms (0.933) and cooperatives (0.877). Our findings have certain implications for what policies should be implemented in order to improve efficiency in the sector and on the orientation of decision makers strategies.Sheep dairy industry, technical efficiency, stochastic frontier analysis (SFA), private firms and cooperatives, Sardinia, Livestock Production/Industries,

Trends in the world olive-oil sector market

This paper aims to put on evidence data, trend and informations on world market of olive and olive-oil. Specific attention is put on the Italian sector and on the role of Italy into the world market.olive-oil food market Italy

The Motivational Profile of Organic Food Consumers: a Survey of Specialized Stores Customers in Italy

Organic food demand is becoming increasingly important throughout the world. Despite this relevance, however, not many attempts have been carried out to profile this food market segment. This paper aims to investigate on motivations that drive consumers towards purchasing organic foods in Italy. Through a survey carried out in some organic specialized stores sited in Sardinia, we explored organic consumer behaviour with specific emphasis on understanding reasons consumers have to buy organic products. A Multiple Correspondence Analysis has obtained four consumers’ motivational profiles and several findings. Furthermore, a Logit regression allowed us to evaluate the relationships between individual motivations and some socio-demographic characteristics of organic consumers. Some marketing and policy implications arisen from the obtained results.Organic food purchase, Consumer’s motivational profilers, Logit regression., Demand and Price Analysis, Food Consumption/Nutrition/Food Safety,