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    Examining the Relative Competitiveness of Irish Agriculture (1996 – 2003/4)

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    Author
    Thorne, Fiona
    Keyword
    International Farm comparisons
    Competitiveness
    Agriculture
    Ireland
    Date
    01/01/2007
    
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    URI
    http://hdl.handle.net/11019/925
    Citation
    Thorne, F.S., Examining the Relative Competitiveness of Irish Agriculture (1996 – 2003/4), End of Project Report, Teagasc, 2007.
    Abstract
    This paper examines the competitiveness of Irish agriculture compared to that of other EU and non-EU countries. The analysis was based on two main data sources – the Farm Accountancy Data Network (FADN) for years 1996-2003 and the International Farm Comparisons Network (IFCN) for 2003 for beef production and for 2004 for milk production. Results showed that the Irish competitive position compared to other EU and non-EU countries was positive when total cash costs were considered indicating a positive outlook for Irish milk production in the short to medium term. However, as the opportunity costs of owned resources are not included in ‘cash cost’ calculations, total economic costs which include imputed charges for owned resources were considered to examine the longer term outlook for the competitiveness of the sector. Using this measure, the competitive ranking for Irish agriculture slipped relative to the other countries. It was found that the main reason for the relatively high economic costs on Irish farms was due to the high imputed land and labour costs. These findings could be considered as a warning signal for the future competitive performance for the average sized Irish farm. However, based on FADN data the competitive position of ‘larger’ Irish dairy farms (in the 50-99 dairy cow size category) did manage to maintain their competitive position within Europe even when total economic costs were considered. Hence, it could be concluded that part of the explanation of the deterioration of competitive ranking for the average Irish dairy farm when total economic costs are considered relates to the relatively low scale of primary agricultural activity in Ireland during this period.
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