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Dairy Farming from a Production Economics Perspective: An Overview of the Literature

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Handbook of Production Economics

Abstract

The purpose of this chapter is to give a broad overview of the published empirical work on the production economics of dairy farming as well as an outlook on future challenges for this area of research. This chapter shows that the vast production economics literature on dairy farming has been used to address a wide variety of topics including efficiency and productivity, technology adoption, economies of size, scale and scope, the effects of government intervention policies in the sector, the effect of risk and uncertainty, and issues relating to sustainability including climatic effects, animal welfare, and environmental efficiency. Dairy farming faces important challenges, particularly with regard to environmental sustainability, animal welfare, structural changes, and input and output price volatility, all of which provide fertile ground for future production economics research in dairy. The conceptual frameworks and empirical analyses reviewed in this chapter show that production economists have several tools at their disposal to carry out studies related to these challenges and thereby contribute to policy analyses and formulation. Moreover, the role of production economists, working with scientists in various other disciplines, will be paramount in the search for avenues to improve the overall productivity of dairy farming while offering policymakers sound advice on sustainable technologies and tools to deal with greater risk and uncertainty.

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Acknowledgments

Boris E. Bravo-Ureta acknowledges partial support from USDA-NIFA Grant #2016-67024-24760. Alan Wall is grateful for support from the Spanish Ministry of Economics, Industry and Competitiveness grant ECO2017-85788-R.

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Authors and Affiliations

  1. Agricultural and Resource Economics, University of Connecticut, Storrs, CT, USA

    Boris E. Bravo-Ureta & Florian Neubauer

  2. Department of Economics, University of Oviedo, Oviedo, Spain

    Alan Wall

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Correspondence to Boris E. Bravo-Ureta .

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Editors and Affiliations

  1. Department of Economics, University of Connecticut, Storrs, CT, USA

    Subhash C. Ray

  2. Department of Agricultural and Resource Economics, University of Maryland, College Park, MD, USA

    Robert G. Chambers

  3. Department of Economics, Binghamton University, Binghamton, NY, USA

    Subal C. Kumbhakar

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Bravo-Ureta, B.E., Wall, A., Neubauer, F. (2021). Dairy Farming from a Production Economics Perspective: An Overview of the Literature. In: Ray, S.C., Chambers, R.G., Kumbhakar, S.C. (eds) Handbook of Production Economics. Springer, Singapore. https://doi.org/10.1007/978-981-10-3450-3_31-1

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  • DOI: https://doi.org/10.1007/978-981-10-3450-3_31-1

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  • Publisher Name: Springer, Singapore

  • Print ISBN: 978-981-10-3450-3

  • Online ISBN: 978-981-10-3450-3

  • eBook Packages: Springer Reference Economics and FinanceReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences

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