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Recent downward trends in milk prices and the abolition of European Union (EU) milk production quotas have raised questions among Spanish farmers exploring whether diversification initiatives are profitable. The objective of this paper is to provide empirical evidence measuring the financial performance of value-added dairy farm ventures. The study analyzes forty-nine farms in Northern Spain that have diversified activities through milk commercialization and related niche products. Data collected through in-depth interviews with farmers shows that knowledge management, management control systems (MCS) and a differentiated value proposition for customers positively affect performance. Contrary to what is expected, networks and the technological level of the ventures (innovation of the production process and the use of IT systems) do not assure positive performance outcomes.

Keywords: farm diversification ; resource-based view ; balanced scorecard ; Spain ; dairy farms

Editor(s): IFAMR, IFAMA

Subject(s): Community/Rural/Urban Development

Demand and Price Analysis

Food Consumption/Nutrition/Food Safety

Institutional and Behavioral Economics

International Development

International Relations/Trade

Production Economics

Productivity Analysis

Issue Date: Aug 15 2016

Publication Type: Journal Article

DOI and Other Identifiers: (ISSN #: 1559-2448) (Other)

PURL Identifier: http://purl.umn.edu/244626 Published in: International Food and Agribusiness Management Review, Volume 19, Special Issue B Page range: 163-188

Total Pages: 26

JEL Codes: M10; Q12

Note: The IFAMR is published quarterly my IFAMA. For more information visit: www.ifama.org.

Series Statement: Volume 19

Issue B

Record appears in: International Food and Agribusiness Management Association (IFAMA) > International Food and Agribusiness Management Review

Autor: Alvarez, Antonio ; Garcia-Cornejo, Beatriz ; Perez-Mendez, Jose A. ; Roibas, David

Fuente: http://ageconsearch.umn.edu/record/244626?ln=en

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