Abstract
The main aim of the article is to present changes in the return on equity as one of the main financial indicators determining the economic rationality of dairy farms. The subject of analysis was Polish farms specialised in milk production, differentiated by economic size, separated within the FADN system in the years 2005-2020. Du Pont analysis was applied to assess changes in the economic efficiency of dairy farms. The research shows that the return on equity in Polish dairy farms was higher in the years 2005-2007 than in the years 2008-2020. There was also a close correlation in the return on equity, irrespective of the economic size of Polish dairy farms, with the situation on the world milk market. The widely accepted fact among agricultural economists that an important determinant of the return on equity on dairy farms is the scale of milk production was confirmed. Farms in the group characterised by the largest economic size (from 100 to 500 thousand euro) in 2009-2020 were characterised by the highest return on equity. In 2020, this indicator in this group was 2.4 times higher than in the group of farms with an economic size of between 8 and 25 thousand euro.
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