Journal of Food, Agriculture and Environment

Vol 10, Issue 2,2012
Online ISSN: 1459-0263
Print ISSN: 1459-0255

Assessing financial incentives for Greek dairy sheep farmers


Irene Tzouramani 1*, Alexandra Sintori 2, Angelos Liontakis 2, George Alexopoulos 2

Recieved Date: 2012-02-12, Accepted Date: 2012-05-02


The importance of sheep farming in Greece and the increasing demand for specialised and traditional products create positive opportunities for the reorganisation of the dairy sheep sector during the current economic crisis. New policy measures have been introduced to transform Greek dairy sheep farming into a more innovative, environmentally friendly and economically sustainable sector. However, farmers will adopt these measures only if they are confident about their future returns. Under uncertain conditions, investment in agriculture involves a risk, which plays a significant role in farmers’ decision making. Well-designed policy schemes which take into account the dynamic nature of the agricultural industry and that reinforce the sector will determine the right framework for understanding the investment behaviour of farmers. This study examines the effects of income variability on decisions to adopt new techniques and production systems by dairy sheep farmers in Greece. More specifically, two investment options for organic and conventional Greek dairy sheep farmers are evaluated, both for newcomers to the industry who undertake large- scale investments and for existing farmers who improve their farms under small-scale investment programs. Real options analysis reveals that investment in dairy sheep farming is viable if attractive economic incentives are offered to farmers to compensate for the risk and uncertainty of the activity. Recommended financial incentives will have a significant impact on the dairy sheep sector by encouraging innovation, increasing competitiveness, preserving ecosystems and promoting rural development. 


Agricultural policy, organic farming, sheep farming, livestock, real options

Journal: Journal of Food, Agriculture and Environment
Year: 2012
Volume: 10
Issue: 2
Category: Agriculture
Pages: 493-499

Full text for Subscribers

Note to users

The requested document is freely available only to subscribers/registered users with an online subscription to the Journal of Food, Agriculture & Environment. If you have set up a personal subscription to this title please enter your user name and password. All abstracts are available for free.

Article purchasing

If you like to purchase this specific document such as article, review or this journal issue, contact us. Specify the title of the article or review, issue, number, volume and date of the publication. Software and compilation, Science & Technology, all rights reserved. Your use of this website details or service is governed by terms of use. Authors are invited to check from time to time news or information.

Purchase this Article:   20 Purchase PDF Order Reprints for 15

Share this article :