Factors Influencing Technical Efficiency in the EU Dairy Farms

This paper aims to analyse the technical efficiency (TE) of dairy farms and find its determinants. To accomplish this problem, Stochastic Frontier Analysis was applied. The data were obtained from Farm Accountancy Data Network database for (TF15-45—Specialist dairying) 2004–2019. Dairy divided into four clusters according their physical size (number livestock units per farm) economic (standard output farm). largest by are located in Denmark Cyprus. smallest, comparison, Bulgaria, Croatia, Latvia, Lithuania, Austria, Poland, Romania, Slovenia. Farms EU relatively technically efficient, i.e., they use resources efficiently produce maximum (production). However, have potential achieve better results be more competitive, as farms’ is not fully optimised. abolition milk quota can considered a factor improving efficiency, indicator higher after abolition. New old member states almost comparable levels (the p-value t-test 0.463), with members having slightly level TE. Subsidies contradictory effects on subsidies cow €51–100/cow. increase, TE decreases. Only group highest has More diversified efficient than specialised farms. Milk yield did influence analysed indicator. analysis serve stakeholders tool modelling future agricultural policy, European very heterogenous show different conditions outcomes.