World Perspectives

Value of Scale Recognized

Agriculture ministers from five EU countries (Bulgaria, Poland, Romania, Hungary, and Slovakia) are asking the European Commission to come up with a solution to the harm they say is being caused by imports of grain from Ukraine. One option is to impose tariffs on Ukraine. However, it is their analysis of why Ukraine is more competitive that is noteworthy. They say, “The main reason for this is that cheaper Ukrainian agricultural products, due to different farming standards and land sizes…” The data is very tricky but the EU’s own stats show that the average farm size in Ukraine is 15 times larger than the average EU farm size. Amongst the complaining EU members, Slovakia actually has a larger average farm size than...

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Illuminating the value of technical research

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