Economic risk assessment of the quality labels and productive efficiency strategies in Spanish extensive sheep farms

Bertolozzi-Caredio, Daniele and Soriano Martínez, Bárbara and Bardaji de Azcarate, Isabel and Garrido Colmenero, Alberto (2021). Economic risk assessment of the quality labels and productive efficiency strategies in Spanish extensive sheep farms. "Agricultural Systems", v. 191 (n. 103169); pp. 1-12. https://doi.org/10.1016/j.agsy.2021.103169.

Description

Title: Economic risk assessment of the quality labels and productive efficiency strategies in Spanish extensive sheep farms
Author/s:
  • Bertolozzi-Caredio, Daniele
  • Soriano Martínez, Bárbara
  • Bardaji de Azcarate, Isabel
  • Garrido Colmenero, Alberto
Item Type: Article
Título de Revista/Publicación: Agricultural Systems
Date: June 2021
Volume: 191
Subjects:
Faculty: E.T.S. de Ingeniería Agronómica, Alimentaria y de Biosistemas (UPM)
Department: Economía Agraria, Estadística y Gestión de Empresas
Creative Commons Licenses: Recognition - No derivative works - Non commercial

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Abstract

CONTEXT The socio-economic decline of extensive sheep farming caused by its low profitability in southern European Union (EU) regions threatens marginal depopulated rural areas' survival. In the face of new future institutional and climate challenges, there appears to be an urgent need for strategies to improve economic performance. OBJECTIVE This paper aims to evaluate the economic performance and risk of two alternative demand-oriented and productive efficiency strategies: i) protected geographical indication certification, and ii) increased ewe reproduction prolificacy. Method Based on regional farm records and price data and a survey of 54 local farmers, we formulated a stochastic gross margin model to simulate and analyze four strategic scenarios (baseline, quality labelling, productive efficiency, and joint strategies) under two specific stressors, namely decreased lamb prices and increased feeding costs. RESULTS AND CONCLUSIONS We found that feeding costs constitute the main risk factor, whereas price instability has less influence. Our findings highlight improvements in performance under a quality scenario, albeit with higher vulnerability to price variability with respect to the baseline scenario. In contrast, the productive efficiency scenario performs much better in terms of average gross margin and reduced vulnerability to feeding costs, albeit with a larger variation for the expected outcomes. SIGNIFICANCE The paper casts light on the vulnerability of the quality label under price risk, and suggests the potential for the joint implementation of both quality production and productive efficiency strategies, which could compensate for their respective weaknesses.

Funding Projects

TypeCodeAcronymLeaderTitle
Horizon 2020727520SURE-FarmUnspecifiedSURE-Farm - Toward SUstainable and REsilient EU Farming Systems

More information

Item ID: 66996
DC Identifier: https://oa.upm.es/66996/
OAI Identifier: oai:oa.upm.es:66996
DOI: 10.1016/j.agsy.2021.103169
Official URL: https://doi.org/10.1016/j.agsy.2021.103169
Deposited by: Mr. Daniele Bertolozzi Caredio
Deposited on: 10 May 2021 06:32
Last Modified: 10 May 2021 06:32
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