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Evaluation of economic indicators for Czech dairy farms

Author

Listed:
  • Jan Syrůček

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

  • Luděk Bartoň

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

  • Dalibor Řehák

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

  • Jindřich Kvapilík

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

  • Jiří 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

Milk production is one of the most important areas of the Czech agrarian sector, as evidenced by its 50% share (at 2017 prices) in revenues from livestock production. As for any business, a certain level of profitability is a prerequisite for long-term and sustainable development of dairy farms. This study's aim was to evaluate the economic efficiency of milk production from both Czech Fleckvieh (C) and Holstein (H) cows based on data collected each year from 48 to 70 Czech dairy farms in the period from 2012 to 2017. Total costs per feeding day and litre of milk, level of profitability, and income over feed costs were calculated. The influences of herd size and milk yield on profitability and break-even points were examined while sensitivity analysis and model calculations were utilised to predict profitability. The farms with higher average milk yields (>7 500 and >9 500 L per lactation for C and H, respectively) had higher costs per feeding day, lower costs per litre of milk, and improved profitability (p < 0.05). Average break-even points were estimated for milk price (0.31 and 0.32 EUR) and milk yield (7 257 and 9 209 L) in C and H herds, respectively.

Suggested Citation

  • 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.
    • Handle: RePEc:caa:jnlage:v:65:y:2019:i:11:id:136-2019-agricecon
    DOI: 10.17221/136/2019-AGRICECON
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    References listed on IDEAS

    as
    1. Zdenka ZAKOVA KROUPOVA, 2016. "Profitability development of Czech dairy farms," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 62(6), pages 269-279.
    2. Tomáš DOUCHA & Ivan Foltýn & Jaroslav HUMPÁL, 2012. "Profitability of dairy and suckler cows breeding on Czech farms," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 58(9), pages 397-408.
    3. Monika MICHALIČKOVÁ & Zuzana KRUPOVÁ & Peter POLÁK & Ladislav HETÉNYI & Emil KRUPA, 2014. "Development of competitiveness and its determinants in Slovak dairy farms," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 60(2), pages 82-88.
    4. 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.
    5. F. Střeleček & P. Kollar, 2002. "Searching the proportional level of operating costs - specification of the minimum volume of production," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 48(3), pages 106-116.
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    Cited by:

    1. Jan Syrůček & Luděk Bartoň & Jiří Burdych, 2022. "Break-even point analysis for milk production - Selected EU countries," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 68(6), pages 199-206.
    2. Jan Syrůček & Luděk Bartoň & Dalibor Řehák & Magdaléna Štolcová & Jiří Burdych, 2023. "Recent development of economic indicators on Czech dairy farms," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(2), pages 45-54.

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