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Dairy farm profit according to the herd size, milk yield, and number of cows per worker

Author

Listed:
  • Lenka KRPALKOVA

    (Department of Cattle Breeding, Institute of Animal Science, Prague, Czech Republic)

  • Victor E. CABRERA

    (Department of Dairy Science, University of Wisconsin, Madison, USA)

  • Jindřich KVAPILIK

    (Department of Cattle Breeding, Institute of Animal Science, Prague, Czech Republic)

  • Jiri BURDYCH

    (Department of Nutrition and feeding of farm animals, Institute of Animal Science, Prague, Czech Republic
    VVS Verměřovice s.r.o, Verměřovice, Czech Republic)

Abstract

The study evaluates the associations of the farm herd size (HERD), the milk yield (MY, kg/cow per year), and cows per worker (CW) with the production, reproduction, and economic traits in 60 commercial dairy herds (34 633 cows) in the Czech Republic. Each parameter was split into 3 groups. The largest herds (≥ 750 cows) had the highest profitability of costs without subsidies (-3.8 ± 4.3%), the lowest cost for roughages (1.2 CZK/L milk), and the lowest cost for breeding operations (0.17 CZK/L milk), but the highest costs for the cereal grains and concentrates (2.4 CZK/L milk). Herds with the lowest MY (≤ 7 499) had the lowest profitability of costs without subsidies (-15.8 ± 3.93%), the highest total costs (9.27 CZK/L milk), the highest labour costs (1.6 CZK/L milk), and the highest cow depreciation costs (0.97 CZK/L milk). Herds with the lowest CW (≤ 39) had the highest mean labour costs (1.51 CZK/L milk) and the highest costs for breeding operations (0.22 CZK/L milk). Herds with the highest CW (≥ 60) and the lowest CW (≤ 39) also differed in the total feed costs (4.1 vs. 3.73 CZK/L milk) and the costs of cereals and concentrates (2.34 vs. 1.96 CZK/L milk). The increasing herd size tended to be accompanied by higher milk yields and the overall efficiency.

Suggested Citation

  • Lenka KRPALKOVA & Victor E. CABRERA & Jindřich KVAPILIK & Jiri BURDYCH, 2016. "Dairy farm profit according to the herd size, milk yield, and number of cows per worker," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 62(5), pages 225-234.
    • Handle: RePEc:caa:jnlage:v:62:y:2016:i:5:id:126-2015-agricecon
    DOI: 10.17221/126/2015-AGRICECON
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    References listed on IDEAS

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    1. J. Přibyl & P. Šafus & M. Štípková & L. Stádník & V. Čermák, 2004. "Selection index for bulls of Holstein cattle in the Czech Republic," Czech Journal of Animal Science, Czech Academy of Agricultural Sciences, vol. 49(6), pages 244-256.
    2. Jindřich ŠPIČKA & Ondřej MACHEK, 2015. "Change in the production efficiency of European specialized milk farming," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 61(1), pages 1-13.
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    Cited by:

    1. Piotr Borawski & Marta Guth & Wojciech Truszkowski & Dagmara Zuzek & Aneta Beldycka-Borawska & Bartosz Mickiewicz & Elzbieta Szymanska & Jayson Kennedy Harper & James William Dunn, 2020. "Milk price changes in Poland in the context of the Common Agricultural Policy," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(1), pages 19-26.
    2. Jan Syrůček & Luděk Bartoň & Dalibor Řehák & Jindřich Kvapilík & Jiří Burdych, 2019. "Evaluation of economic indicators for Czech dairy farms," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 65(11), pages 499-508.
    3. Andrzej Parzonko & Piotr Bórawski, 2020. "Competitiveness of Polish dairy farms in the European Union," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(4), pages 168-174.

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