Competitiveness of dairy farms in three countries: the role of CAP subsidies
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This paper investigates the impact of CAP
subsidies on the competitiveness of dairy farms in
Germany, the Netherlands, and Sweden. Technical
efficiency results show that coupled subsidies have
negative impacts in Germany and the Netherlands, but
no significant impacts in Sweden. Decoupled subsidies
negatively affect technical efficiency in each country and
to a larger extent than coupled subsidies. Relative
productivity results indicate that Dutch technology leads
to the highest output, followed by technologies in
Germany and Sweden. Dutch farms can improve their
competitiveness by exploring their current production
potential. Besides improving efficiency, German and
Swedish farms may have options to improve their
production technology.