Efficiency and environmental pressures of farrow-to-finish and finishing pig farms in Hungary
2010
Latruffe , Laure (INRA , Rennes (France). UMR 1302 Structures et Marchés Agricoles, Ressources et Territoires) | Desjeux , Yann (INRA , Rennes (France). UMR 1302 Structures et Marchés Agricoles, Ressources et Territoires) | Fogarasi , Jozsef (Research Institute of Agricultural Economics(Hongrie).) | Bakucs , Lajos (Hungarian Academy of Sciences(Hongrie). Institute of Economics) | Ferto , Imre (Hungarian Academy of Sciences(Hongrie). Institute of Economics)
Pig farming is one of the strongest polluter of water resources in developed countries, due to its intensive production techniques and slurry rejection. Several countries have already introduced environmental regulations aiming at reducing nitrate and phosphorus waste from pig farming, but not yet Hungary. This paper aims at shedding light on how Hungarian pig farms would be affected if such regulations are to be introduced in the country. We calculate farm technical efficiency separately for farrowing only and farrow-to-finish farms (FAFI farms), and finishing only farms (FI farms), using farm data relating to pig activity in 2001 and Data Envelopment Analysis (DEA). We then investigate whether environmental regulations would affect Hungarian pig farms’ technical efficiency, with the help of a second-stage regression and various environmental pressures. Results indicate that the level of nitrogen produced by livestock per hectare of agricultural land is still much lower than the potential authorised limit that could be introduced, and that farmers have incentives to reduce such pollution in their region in order to increase their efficiency even in the absence of regulation.
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