Competitiveness of farms in new European Union member states

Abstract

The aim of the study was to assess the competitiveness of farms in new EU member states against the background of the so-called ‘old Union’ countries in the years 2014–2016. The research was carried out using the EU FADN database. As a measure of competitiveness, partial productivity indicators of production factors (land, labor, capital) were adopted. The research has shown the unfavorable competitive position of agricultural holdings in new member states in terms of land and labour productivity. Capital productivity less differentiated the countries studied, and the distance separating them from the EU-15 countries was not as large as in the case of the other two factors of production. The results obtained should be explained, among others, by relatively lower production potential of farms and low investment expenditures. The average value of these outlays per 1 ha of agricultural land in 13 EU countries in the analyzed years was 44% lower than in the EU-15 countries.