The Spatial Patterns of Dairy Farming In Molise

Open access


The greater market orientation of European dairy production, caused by the end of quota regime, is likely to have consequences on less favoured areas, where breeding of dairy cattle plays both a crucial socio-economic and environmental role. Within this new framework, endogenous factors determining spatial reorganisation of the sector are becoming of increasing relevance. Based on these considerations, this study analyses the impact of the three broader classes of location determinants suggested by economic theory - factor endowment, market potential, and spatial agglomeration externalities - on the spatial pattern of milk production in Molise, a rural region in the south of Italy. Milk production is measured in term of dairy cows per hectare. The truncated distribution of this variable and its high degree of spatial autocorrelation prompted us to apply a Spatial Autoregressive Tobit model. Estimation results reveal that all three categories have a positive effect on the location of milk production, even if the influence of factor endowment (intended as forage area), and market potential (measured in term of proximity of dairy companies) is quite limited. On the contrary, the impact of spatial externalities (related variety) on the regional localisation of milk production is strongly significant. These results cast some doubts on the current measures of intervention and might suggest a new policy framework both at firm and spatial level

[1] Bagarani, M. & Belliggiano, A. (1997). L’industria agro-alimentare molisana. In Tartaglia A., ed., Identificazione e sviluppo di un modello locale: il caso del frumento nel Molise. Campobasso: P. F. RAISA CNR, pp. 39-81.

[2] Bagarani, M., Belliggiano, A., Ievoli, C. & Scardera, A. (2014). Analisi di contesto del Programma di Sviluppo Rurale 2014-2020 [Research Report], Studio dell’Università del Molise per conto dell’ARSIAM.

[3] Beaudry, C. & Schiffauerova, A., (2009). Who’s right, Marshall or Jacobs? The localization versus urbanization debate. Research Policy 38(2), 318-337. DOI: 10.1016/j.respol.2008.11.010.

[4] Ben Arfa, N., Rodriguez, C., Daniel, K. & Shonkwiler, J. S. (2009). Spatial Structure of the French dairy sector: a spatial HAC estimation [Paper presented at 3èmes journées de recherches en sciences sociales INRA SFER CIRAD 09, 10 & 11 décembre, Montpellier].

[5] Ben Arfa, N., Rodriguez, C., Daniel, K. & Shonkwiler, S. J. (2010). Spatial Structure of Agricultural Production in France: Role of the Common Agricultural Policy [OECD Workshop on the Disaggregated Impacts of CAP Reform, 10-11 March].

[6] Bichler, B., Haring, A. M., Dabbert, S. & Lippert, C. (2005). Determinants of Spatial Distribution of Organic Farming in Germany [a paper read at the conference Researching Sustainable Systems, Adelaide].

[7] Boschma, R. A. (2005). Editorial. Role of proximity in interaction and performance. Conceptual and empirical challenges. Regional Studies 39(1), 41-45. DOI: 10.1080/0034340052000320878.

[8] Boschma, R. A. & Wenting, R. (2007). The spatial evolution of the British automobile industry: Does location matter? Industrial and Corporate Change 16(2), 2213-238. DOI: 10.1093/icc/dtm004.

[9] Boschma, R. A. & Iammarino, S. (2009). Related Variety, Trade Linkages and Regional Growth. Economic Geography 85(3), 289-311. DOI: 10.1111/j.1944-8287.2009.01034.x.

[10] Boschma, R. & Frenken, K. (2011). The emerging empirics of evolutionary economic geography, Journal of Economic Geography 11(2), 295-307. DOI: 10.1093/jeg/lbq053.

[11] Duranton, G. & Puga, D. (2004). Micro-foundations of urban agglomeration economies. In Henderson, J. V. & Thisse, J. F., eds., Handbook of Regional and Urban Economics (pp. 2063-2117). Amsterdam: Elsevier.

[12] Duranton, G. & Puga, D. (2001). Nursery Cities: Urban Diversity, Process Innovation, and the Life Cycle of Products. The American Economic Review 91(5), 1454-1477. DOI: 10.1257/aer.91.5.1454.

[13] Forti, R. & Henrard, M., eds. (2016). Agriculture, forestry and fishery statistics, 2015 edition, Luxembourg: Publications Office of the European Union. DOI: 10.2785/906420.

[14] Fasolino, G. & Ievoli, C. (1997). Il grano duro nel Molise: l’evoluzione dell’intervento regionale e l’impatto della nuova politica comunitaria. In Tartaglia, A., (ed.), (1997) Identificazione e sviluppo di un modello locale: il caso del frumento nel Molise. RAISA CNR, Campobasso, Arti Grafiche La Regione, pp. 243-265.

[15] Frenken, K., Van Oort, F. G. & Verburg, T. (2007). Related variety, unrelated variety and regional economic growth. Regional Studies, 41(5), 685-697. DOI: 10.1080/00343400601120296.

[16] Glaeser, E. L., Kallal, H. D., Scheinkman, J. A. & Shleifer, A. (1992). Growth in Cities, The Journal of Political Economy 100(6), 1126-1152. DOI: 10.1086/261856.

[17] Henderson, V., Kuncoro, A. & Turner, M. (1995). Industrial development in cities. Journal of Political Economy, 103(5), 1067-1090. DOI: 10.1086/262013.

[18] Isik, M. (2004). Environmental Regulation and the Spatial Structure of the US Dairy Sector. American Journal of Agricultural Economics 86, 949-962. DOI: 10.1111/j.0002-9092.2004.00645.x.

[19] Jacobs, J. (1969). The Economy of Cities. New York, Random House.

[20] Karelakis, C., Zafeiriou, E., Galanopoulos, K. & Koutroumanidis, T. (2013). Natural resources in regional and rural development: moving from public perceptions to policy action, New Medit 12(1), 56-64.

[21] Läpple, D. & Kelley, H. (2015). Spatial dependence in the adoption of organic drystock farming in Ireland. European Review of Agricultural Economics 42(2), 315-337. DOI: 10.1093/erae/jbu024.

[22] Larue, S., Abildtrup, J. & Schmitt, B. (2007). Modeling the Spatial Structure of Pig Production in Denmark [Paper presented at Annual North American meetings of the Regional Science Association International, Nov 2007, Savannah].

[23] LeSage, J. & Pace, R. K. (2009). Introduction to Spatial Econometrics. London: Chapman and Hall.

[24] MacDonald, J. M., O’Donoghue, E. J., McBride, W. D., Nehring, R. F., Sandretto, C. L. & Mosheim, R. (2007). Profits, Costs, and the Changing Structure of Dairy Farming [Economic Research Report 47], Washington, DC: United States Department of Agriculture.

[25] Neffke, F. M. H, Henning, M. & Boschma, R. A. (2011). How do regions diversify over time? Industry relatedness and the development of new growth paths in regions. Economic Geography 87(3), 237-265. DOI: 10.1111/j.1944-8287.2011.01121.x.

[26] Paladino, M. & Scardera, A. (2014). L’agricoltura del Molise. Roma: INEA.

[27] Peterson, H. H. (2002). Geographic Changes in U.S. Dairy Production [Paper presented at the Annual Meeting of the American Agricultural Economics Association, Long Beach, July 28-31].

[28] Qu, X., Lee, L. (2013). Locally most powerful tests for spatial interactions in the simultaneous SAR Tobit model. Regional Science and Urban Economics. 43(2), 307-321. DOI: 10.1016/j.regsciurbeco.2012.07.010.

[29] Roe, B., Irwin, E. G. & Sharp, J. (2002). Pig in Space: Modeling the spatial structure of hog production in traditional and nontraditional production regions. American Journal of Agricultural Economics 84(2), 259-278. DOI: 10.1111/1467-8276.00296.

[30] Rosenthal, S. S. & Strange, W. C. (2004). Evidence on the nature and sources of agglomeration economies. In Henderson, J. V. & Thisse, J.-F., eds., Handbook of Urban and Regional Economics, vol. 4 (pp. 2119-2172). Amsterdam: Elsevier.

[31] Thornton, P. K. (2010). Livestock production: recent trends, future prospects. Philosophical Transaction of the Royal Society B 365, 2853-2867. DOI: 10.1098/rstb.2010.0134.

[32] Wieck, C. & Mosnier, C. (2010). Determinants of spatial dynamics of dairy production: a review, Agricultural and Resource Economics [Discussion Paper 2], Institute for Food and Resource Economics University of Bonn.

[33] Wieck, C. & Mosnier, C. (2011). Dynamiques régionales de la production laitière en France, en Allemagne et au Royaume-Uni. Économie Rurale 332, 132-146. DOI: 10.4000/economierurale.3748.

[34] Wieck, C. & Mosnier, C. (2011). Determinants of the spatial dynamics of regional dairy production systems [Paper prepared for presentation in the Organized Session “Spatial competition in the dairy sector” at the EAAE 2011 Congress “Change and Uncertainty”, August 30 to September 2, ETH Zurich].

[35] Wollni, M. & Andersson, C. (2014). Spatial patterns of organic agriculture adoption: Evidence from Honduras. Ecological Economics 97, 120-128. DOI: 10.1016/j.ecolecon.2013.11.010.

[36] Xingbai, X. & Lee L. (2015). Maximum likelihood estimation of a spatial autoregressive Tobit model, Journal of Econometrics 188(1), 264-280. DOI: 10.1016/j.jeconom.2015.05.004.

[37] Zimmermann, A. & Heckelei, T. (2012). Structural Change of European Dairy Farms - A Cross-Regional Analysis. Journal of Agricultural Economics 63(3), 576-603. DOI: 10.1111/j.1477-9552.2012.00355.x.

[38] CEAS Consultants (Wye) Ltd Centre for European Agricultural Studies and The European Forum on Nature Conservation and Pastoralism (2000), The Environmental Impact of Dairy Production in the EU: Practical Options for the Improvement of the Environmental Impact - Final Report for European Commission (DGXI).

European Countryside

The Journal of Mendel University in Brno

Journal Information

CiteScore 2016: 0.69

SCImago Journal Rank (SJR) 2016: 0.190
Source Normalized Impact per Paper (SNIP) 2016: 0.896


All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 67 67 22
PDF Downloads 28 28 10