Work

The economic performance of sheep pastoral systems in the Mediterranean: An analysis based on typologies

Year: 2025

Type: article

Abstract: • The paper presents an analysis of multiple aspects of economic performance of Mediterranean pastoral sheep farms. • Net profit is negative or low in most countries but pastoral farms have cost advantages as well as the potential to add value to their products. • Use of local resources, diversification and integration with other value chains imply good examples for increasing economic performance. • Family labor is the main source of workforce and more attractiveness is required to improve the situation for the sector. Driven by numerous factors, in the last decades a constant decline in pastoral systems is witnessed in numerous Mediterranean areas. Previous research has shown that pastoral systems share common features such as low productivity and low production costs even if the latter do not always counterbalance the former. However, in general little attention has been paid on the economic performance of pastoral farms and the analysis of main drivers of revenues and costs. In this paper, the economic performance of Mediterranean pastoral sheep farms is investigated with a view to provide a deeper understanding of strong and weak aspects in their operation and respond to common discussions about pastoralism and its future trajectories. The analysis is based on primary technical and economic data from pastoral farms rearing sheep from eight territories of seven Mediterranean countries (Greece, Croatia, Cyprus, Turkiye, France, Italy, Algeria). Typologies of pastoral sheep farms were developed in each territory based on criteria which were relevant and specific to each one of them. Then, using a questionnaire that was specifically designed for the activity, detailed technical and economic data were collected from representative farms from each type. The analysis revealed significant differences across countries and types in terms of farm organization structure, use of local resources and choice of activities, all of which are reflected in indicators of economic performance. The role of income support was very important in EU pastoral systems while for the non-EU countries local markets played a more important role for product sales. There is a need to support successful pastoral examples that can orient Mediterranean systems towards diversification and sustainable use of resources. An enabling policy framework and further research are required to promote well-informed discussions and policy making.

Source: Livestock Science

DOI: 10.1016/j.livsci.2025.105738