Measuring financial performance on dairy farms

Autor:	Grete Stokstad, Bjørn Gunnar Hansen
Rok vydání:	2005
Předmět:	Ranking media_common.quotation_subject Service (economics) Statistics Data envelopment analysis Economics Strategic management Operations management Benchmarking Welfare Dairy farming Gross margin media_common
Zdroj:	Food Economics - Acta Agriculturae Scandinavica, Section C. 2:99-109
ISSN:	1651-288X 1650-7541
DOI:	10.1080/16507540500539308
Popis:	The motivation for this paper was to improve the information provided by the extension service for dairy farming. Databases as the Norwegian Dairy Financial Recording (NDFR) are commonly used for comparative analysis of farms. In the present paper, the problems related to these comparisons are discussed. Four different measures of financial performance are presented. The measures are; the gross margin, extended gross margin, and two different efficiency indexes based on use of data envelopment analysis (DEA). All four measures have advantages and disadvantages. The two gross margins are suitable for ranking farms when evaluating the impact of operative management variables, e.g., disease and miscellaneous welfare enhancing inputs on performance. However, efficiency indexes, which are estimated as ratios of actual and maximum output, given inputs, are more suitable when evaluating the impact of strategic management variables, e.g., concentrate or roughage per litre milk produced on performance.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::569d6b1d77b7588530fa9dfac9b5e2c7 https://doi.org/10.1080/16507540500539308 Zobrazit plný text záznamu