RESEARCH ON PROFIT VARIATION DEPENDING ON MARKETED MILK AND PRODUCTION COST IN DAIRY FARMING
Journal: Scientific Papers Series ?Management, Economic Engineering and Rural Development” (Vol.14, No. 2)Publication Date: 2015-04-01
Authors : Agatha POPESCU;
Page : 223-230
Keywords : income from marketed milk; labor cost; material cost; milk cost; profitability; return;
Abstract
The paper aimed to analyze the effect of marketed milk production and milk production cost on profit in dairy farming in Romania. In this purpose, the data from 10 dairy farms situated in the Southern Romania were collected in the period 2011-2013. The average marketed milk per cow accounted for 5,507 kg with a variation coefficient of 10.90 %. The average milk production cost registered Lei 1.07/kg milk, while the average milk price was Lei 1.23/kg. The average profit coming from marketed milk accounted for Lei 984.89 per cow and yaer with a variation between Lei 2,375/cow/year, the highest level and Lei 314.4/cow/year, the lowest level. The variation coefficient, 69.90 % reflected a large variation from a farm to another. Based on the equation of the regression plan, Z = 1.187 x +11.46 y - 4,262 which assured the minimum residual variance, three variants of simulation were set up. A constant milk production cost, Y= Lei 1.07/kg, and a 100 kg growth of marketed milk could determine Lei 18.7 additonal profit per cow and year. For a constant marketed milk of 5,507 kg, and an increased milk production cost by Lei 0.02/kg has no influence on profit level. When marketed milk increases by 100 kg and milk production cost by Lei 0.02 per kg, farmers' profit could increase by Lei 118.9/cow and year. Marketed milk and milk price have a positive impact on profit, while production cost has a negative impact.
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Last modified: 2015-05-29 19:22:49