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Abstract

The decline of Southern Europe’s traditional sheep- and goat-farming systems creates a need for studies on the economic determinants that underlie their production processes. Using data from the FADN, we built a panel of 37 regions from 5 countries over an 8-year period (2004–2012). A Cobb-Douglas was specified and a stochastic frontier production was estimated. Total Factor Productivity (TFP) and its components were calculated. The farms have had sustained, positive development of TFP since 2008, with a significant correlation with the labour factor of production. We detected moderate technical progress change, which was accompanied by decreasing efficiency.

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