Development of competitiveness and its determinants in Slovak dairy farms

Abstract

The competitiveness and its determinants for Slovak dairy cattle farms during the years 2007 to 2011 was analysed. The economic database of the Research Institute for Animal Production Nitra was used as the basis. The profit in milk production with including the direct subsidies was assumed as the main parameter of the dairy farm competitiveness. The influence of the individual cost items and milk yield on the competitiveness was quantified using the multivariable linear regression model. Our results indicate that the farms were competitive in milk production only in 2007 and 2008. The highest profit (0.026 € per 1 kg of milk) was reached in 2007. It was mainly determined by the level of the milk price (+9%) and unit costs (–10%) in the evaluated period. The negative regression to the competitiveness was observed for the feed costs, labour costs, repairs and services, depreciations, other direct costs and overheads. On the other hand, the statistically positive impact of the milk yield was found. Generally, the effective utilization of the production potential of animals should be recommended as the main factor of the unit costs reduction as well as for the improvement of the dairy cattle farms profit.