Factors that affect profitability in the Spanish pig farming industry

Aim of study: To identify factors that boost the financial profits of pig producers. These factors refer to the company, the industry and the territory where they are located. We also incorporated an environmental factor according to greenhouse gas emissions. Area of study: Spain. Material and methods: The data used came from a sample of 1,810 Spanish entities that provided unbalanced panel data for the 2003-2018 period. Main results: In recent decades, the pig farming industry has undergone considerable development characterised by an increase in production, exports and in the productivity of pig farms. The study enabled us to detect the factors that most influence the profitability of pig producers, bearing in mind the possible existence of endogeneity problems between some of the variables analysed. Research highlights: The results obtained have practical implications, insofar as they facilitate decision-making as regards the location and characteristics that farms must possess in order to obtain competitive profitability.