Does European Union's Agricultural Support Contribute to Energy Efficiency of Dairy Farms?

Document Type : Original Research

Authors
A. ÖRS 1
C. OĞUZ 2
1 Agriculture and Rural Development Institute, Konya Provincial Coordination Unit, Konya, Turkey
2 Department of Agricultural Economics, Faculty of Agriculture, Selçuk University, Konya, Turkey
Abstract
The purpose of this research was to investigate whether the European Union's high amounts of construction and technology grants provided to dairy farms under The Instrument for Pre-accession Assistance for Rural Development (IPARD) program make a real contribution in terms of energy use and efficiency. The primary data of the study were obtained from Dairy Farms Supported (SDF) and Non-Supported (NSDF) by the IPARD program by using a questionnaire filled during the face-to-face interviews. The full count method was used to determine the 50 SDF while the Neyman allocation sampling method was used to determine the 100 NSDF. Energy indicators were used to evaluate the efficiency of input energy transformation into output and data envelopment analysis was used to calculate technical efficiency and pure technical efficiency. Unlike other studies in the literature, we analyzed energy efficiency of dairy farms in terms of the contribution of the EU supports. The results showed that SDF were more energy-efficient dairy farms with much better energy indicators and efficiency scores than NSDF. Productivity, benefit/cost ratios, and energy scores clearly show that EU grants given to dairy farms contribute to the efficient use of resources, including energy, increasing the competitiveness of dairy farms, and contributing to the rural area through energy efficiency and economic performance.

Keywords

Subjects

[1] Rajbhandari A, Zhang F. Does Energy Efficiency Promote Economic Growth? Evidence from a Multicountry and Multisectoral Panel Dataset. Energy Economics (2017). 2017.
[2] Bilandzija N, Voca N, Jelcic B, Jurisic V, Matin A, Grubor M, et al. Evaluation of Croatian agricultural solid biomass energy potential. Renewable and Sustainable Energy Reviews. 2018;93:225-30.
[3] Scaramuzzino C, Garegnani G, Zambelli P. Integrated approach for the identification of spatial patterns related to renewable energy potential in European territories. Renewable and Sustainable Energy Reviews. 2019;101:1-13.
[4] Edelenbosch OY, Van Vuuren D, Blok K, Calvin K, Fujimori S. Mitigating energy demand sector emissions: The integrated modelling perspective. Applied Energy. 2020;261:114347.
[5] Palm J, Thollander P. Reframing energy efficiency in industry: A discussion of definitions, rationales, and management practices. Energy and Behaviour: Elsevier; 2020. p. 153-75.
[6] Röck M, Saade MRM, Balouktsi M, Rasmussen FN, Birgisdottir H, Frischknecht R, et al. Embodied GHG emissions of buildings–The hidden challenge for effective climate change mitigation. Applied Energy. 2020;258:114107.
[7] Sattler S, Clemmer S, Richardson J, Cowin R. Opportunities in energy: National policy approaches for addressing climate change. The Electricity Journal. 2020;33(1):106693.
[8] Swain RB, Karimu A. Renewable electricity and sustainable development goals in the EU. World Development. 2020;125:104693.
[9] Mulholland R. Energy efficiency: A key component of US competitiveness. 2009.
[10] Commission E. Good Practice in Energy Efficiency For a sustainable, safer and more competitive Europe. 2017.
[11] Galeotti M, Salini S, Verdolini E. Measuring Environmental Policy Stringency: Approaches, Validity, and Impact on Energy Efficiency. Centro Studi Luca d'Agliano Development Studies Working Paper. 2017(412).
[12] Tvaronavičienė M, Prakapienė D, Garškaitė-Milvydienė K, Prakapas R, Nawrot Ł. Energy efficiency in the long run in the selected European countries. Economics & Sociology. 2018;11(1):245-54.
[13] Figus G, McGregor PG, Swales JK, Turner K. Do sticky energy prices impact the time paths of rebound effects associated with energy efficiency actions? Energy Economics. 2020:104657.
[14] Ilham NI, Hasanuzzaman M, Mamun M. World energy policies. Energy for Sustainable Development: Elsevier; 2020. p. 179-98.
[15] Council E. European Council (23 and 24 October 2014) Conclusions on 2030 climate and energy policy framework for the EU. 2014.
[16] Commission E. Rural development. 2020.
[17] Commission E. Overview of EU pre-accession assistance for rural development (IPARD). 2020.
[18] Kaya E, Örs A. Comparison of IPARD I and IPARD II Programmes as a Source of Rural Development Financing in Turkey. Turkish Journal of Agriculture-Food Science and Technology. 2019;7(1):92-8.
[19] Ministry of Food AaLRA. Instrument for Pre-Accession Assistance on Rural Development (IPARD) Programme (2014-2020). 2015.
[20] Hosseinzadeh-Bandbafha H, Safarzadeh D, Ahmadi E, Nabavi-Pelesaraei A. Optimization of energy consumption of dairy farms using data envelopment analysis–A case study: Qazvin city of Iran. Journal of the Saudi Society of Agricultural Sciences. 2018;17(3):217-28.
[21] Elahi E, Weijun C, Jha SK, Zhang H. Estimation of realistic renewable and non-renewable energy use targets for livestock production systems utilising an artificial neural network method: A step towards livestock sustainability. Energy. 2019.
[22] Upton J, Humphreys J, Koerkamp PG, French P, Dillon P, De Boer I. Energy demand on dairy farms in Ireland. Journal of dairy science. 2013;96(10):6489-98.
[23] Uzal S. Comparison of the energy efficiency of dairy production farms using different housing systems. Environmental Progress & Sustainable Energy. 2013;32(4):1202-8.
[24] Shine P, Scully T, Upton J, Shalloo L, Murphy M. Electricity & direct water consumption on Irish pasture based dairy farms: A statistical analysis. Applied Energy. 2018;210:529-37.
[25] Oğuz C, Yener A. The Use of Energy in Milk Production; A Case Study from Konya Province of Turkey. Energy. 2019.
[26] Unakıtan G, Kumbar N. Analysis of feed conversion efficiency in dairy cattle farms in Thrace Region, Turkey. Energy. 2019;176:589-95.
[27] Aldeseit B. Measurement of scale efficiency in dairy farms: data envelopment analysis (DEA) Approach. Journal of Agricultural Science. 2013;5(9):37.
[28] Yamane T. Elementary sampling theory prentice Inc. Englewood Cliffs NS, USA. 1967;1:371-90.
[29] Alluvione F, Moretti B, Sacco D, Grignani C. EUE (energy use efficiency) of cropping systems for a sustainable agriculture. Energy. 2011;36(7):4468-81.
[30] Jankowski KJ, Dubis B, Budzyński WS, Bórawski P, Bułkowska K. Energy efficiency of crops grown for biogas production in a large-scale farm in Poland. Energy. 2016;109:277-86.
[31] Heidari M, Omid M, Akram A. Energy efficiency and econometric analysis of broiler production farms. Energy. 2011;36(11):6536-41.
[32] Ramedani Z, Rafiee S, Heidari M. An investigation on energy consumption and sensitivity analysis of soybean production farms. Energy. 2011;36(11):6340-4.
[33] Mousavi-Avval SH, Rafiee S, Jafari A, Mohammadi A. Improving energy use efficiency of canola production using data envelopment analysis (DEA) approach. Energy. 2011;36(5):2765-72.
[34] Soni P, Sinha R, Perret SR. Energy use and efficiency in selected rice-based cropping systems of the Middle-Indo Gangetic Plains in India. Energy Reports. 2018;4:554-64.
[35] Kizilaslan H. Input–output energy analysis of cherries production in Tokat Province of Turkey. Applied Energy. 2009;86(7-8):1354-8.
[36] Ghorbani R, Mondani F, Amirmoradi S, Feizi H, Khorramdel S, Teimouri M, et al. A case study of energy use and economical analysis of irrigated and dryland wheat production systems. Applied Energy. 2011;88(1):283-8.
[37] Lee C, Ji Y-b. Data envelopment analysis in Stata. under review by the Stata Journal. 2009.
[38] Charnes A, Cooper WW, Rhodes E. Measuring the efficiency of decision making units. European journal of operational research. 1978;2(6):429-44.
[39] Tan Y. Performance, risk and competition in the Chinese banking industry: Chandos Publishing, 2014.
[40] Banker RD, Charnes A, Cooper WW. Some models for estimating technical and scale inefficiencies in data envelopment analysis. Management science. 1984;30(9):1078-92.
[41] Cooper WW, Seiford LM, Tone K. Introduction to data envelopment analysis and its uses: with DEA-solver software and references: Springer Science & Business Media, 2006.
[42] Gelan A, Muriithi BW. Measuring and explaining technical efficiency of dairy farms: a case study of smallholder farms in East Africa. Agrekon. 2012;51(2):53-74.
[43] Meul M, Nevens F, Reheul D, Hofman G. Energy use efficiency of specialised dairy, arable and pig farms in Flanders. Agriculture, Ecosystems & Environment. 2007;119(1-2):135-44.
[44] Wójcicki Z. Equipment, materials and energy inputs in growth-oriented farms. Warszawa, Poland, IBMER[In Polish]. 2000:1-139.
[45] Refsgaard K, Halberg N, Kristensen ES. Energy utilization in crop and dairy production in organic and conventional livestock production systems. Agricultural systems. 1998;57(4):599-630.
[46] Nassiri SM, Singh S. Study on energy use efficiency for paddy crop using data envelopment analysis (DEA) technique. Applied Energy. 2009;86(7-8):1320-5.
[47] Maikhuri R. Eco-energetic analysis of village ecosystem of different traditional societies of Northeast India. Energy. 1996;21(12):1287-97.
[48] Singh H, Mishra D, Nahar N, Ranjan M. Energy use pattern in production agriculture of a typical village in arid zone India: part II. Energy Conversion and Management. 2003;44(7):1053-67.
[49] Açıl AF, Demirci R. Agricultural economics courses. Ankara University Faculty of Agriculture Pub. (880).
[50] Kıral T, Kasnakoğlu H, Tatlıdil F, Fidan H, Gündoğmuş E. Tarımsal Ürünler İçin Maliyet Hesaplama Metodolojisi ve Veri Tabanı Rehberi. Proje Raporu 1999-13. Yayın No: 37. Tarımsal Ekonomi Araştırma Enstitüsü, Ankara. 1999.
[51] Tranel LF, Gary F. Managing dairy farm finances: Iowa State University Extension Publication, 2002.
[52] Shoemaker D, Eastridge M, Breece D, Woodruff J, Rader D, Marrison D. Measures of Dairy Farm Competitiveness. The Ohio State University.
[53] Çetin B. Uygulamalı tarım ekonomisi: Nobel Akademik Yayıncılık, 2013.
[54] Geetha K, Lavanya V. Economics analysis of dairy farming in Vellalore village in Coimbatore district. Journal of Economic & Social Development. 2013;9(1):25-37.
[55] Kumawat R, Singh N, Meena C. Economic analysis of cost and returns of milk production, extent of adoption of recommended management practices on sample dairy farms in bikaner district of Rajasthan. GJSFR: D Agriculture and Veterinary. 2014;14.
[56] Hanrahan L, McHugh N, Hennessy T, Moran B, Kearney R, Wallace M, et al. Factors associated with profitability in pasture-based systems of milk production. Journal of Dairy Science. 2018;101(6):5474-85.
[57] Ramsbottom G, Horan B, Berry DP, Roche JR. Factors associated with the financial performance of spring-calving, pasture-based dairy farms. Journal of Dairy Science. 2015;98(5):3526-40.
[58] Tapki N. The comparison of dairy farms in different scales regarding milk production cost and profitability in Turkey: A case study from Hatay province. CUSTOS E AGRONEGOCIO ON LINE. 2019;15(2):48-62.
[59] Örs A, Oğuz C. Comparison of economic Analysis of dairy farms supported and non-supported by IPARD program: a case study of Konya Province, Turkey. CUSTOS E AGRONEGOCIO ON LINE. 2019;15(2):192-212.
[60] Ke-fei L. Application of DEA method in the evaluation of agriculture economic efficiency. Journal of Chemical and Pharmaceutical Research. 2015;7(3):997-1000.
Journal of Agricultural Science and Technology
Volume 24, Issue 5
September and October 2022
Pages 1003-1015