Competitiveness vs. sustainability: An assessment of profitability as a component of an approach on “sustainable competitiveness” in extensive farming systems of central Spain

Abstract

The “Europe 2020 Strategy” launched by European Institutions is a commitment to increase growth based on the coexistence of both competitiveness and sustainable development. This paper analyzes the competitiveness of production systems in the cereal steppes of Castile, Spain. An indicator based on each production system’s profitability threshold was built. The diagnostic analysis methodology allowed the identification of 20 production system models related to agrarian, livestock and mixed farming systems. The results show very different levels of competitiveness which are not necessarily related to the farms’ sizes or capitalization levels but mostly to production costs and the farmers’ ages. The response of these models to future input and output price scenarios shows that mixed farms are less dependent on external production factors.