Analysis of strategic planning of Dutch pig farmers using a multivariate probit model

This paper analyses the factors underlying the probability that Dutch pig farmers have plans to (a) stop, (b) to increase farm size and/or (re)build a barn, (c) to improve the quality of the production process and (d) to make manure processing facility at the own farm. A computer-based questionnaire was carried out among pig farmers in 1999 and 2000. Farmer plans were analysed using a multivariate probit model. The results show that farm size and life cycle are important variables explaining the probability of farmers having plans. Furthermore, risk averse farmers more frequently have plans to improve the quality of the production process, whereas farmers with a negative attitude towards biological farming search for opportunities to make a manure processing facility at their own farm. Results also reveal that most plans are significantly correlated and that the explanatory power of the model is relatively low, with the latter finding suggesting that more study is required to obtain a good understanding of strategic planning. (C) 2003 Elsevier Ltd. All rights reserved