Abstract
The issue of profitability of the agricultural production is often discussed within the framework of the problems of agricultural economics. The study showed a diversification in the profitability of the milk production depending on the cow herd’s size and identified the main determinants of positive economic results. The studies were conducted on commodity farms, which have been grouped according to the production scale, the criterion of scale was the number of dairy cows in the herd. Three scale ranges have been identified, i.e. small, medium and large. The data of 2014 and 2017 was used for the analysis. What was examined was the effectiveness of feeding cows in the identified farm groups and the technical and economic efficiency of the milk production. The full costs of the milk production (i.e. economic costs) were assessed and income from management activity was calculated. The results of the analyses show that as the number of cows in the herd increases, their milk yield and the price of milk are increasing. Farms with a large number of cows in the herd incurred the lowest full costs of the milk production, while obtaining the highest income from management activity per 1 cow and per 1 litre of milk. The measure of the milk production’s economic efficiency was the profitability index (revenues-to-economic costs ratio), the highest was recorded for the large-scale milk production, for the small scale this index did not exceed the profitability threshold.
Highlights
In Poland, the agricultural commodity production is dominated by the livestock production, in the years 2014-2017 its share was between 58.2 and 60.7%
It is estimated that the milk production technology used on farms keeping relatively large cow herds led to an increase in their milk yield
The results achieved present the profitability of milk production in the groups of farms differing in terms of the production scale
Summary
In Poland, the agricultural commodity production is dominated by the livestock production, in the years 2014-2017 its share was between 58.2 and 60.7%. Taking into account the utilised agricultural area (UAA) and the scale of cow rearing, in groups of farms keeping 1-2 and 3-9 cows small entities were most numerous. In the context of economic features, the reason for conducting the commodity production is to obtain income adequate to expectations, i.e. comparable with income of other socio-professional groups This is the farmer’s primary objective, but its implementation requires proper organisation of the production process and the interaction of many factors. The analysis of the milk production costs on farms keeping agricultural accounts shows that an important factor shaping their amount is the herd size and milk yield of cows (Czakowska and Sass, 2009 after: Mańko, 2007; Ziętara, 2007). Given the cognitive and utilitarian aspects of the studies conducted, it is necessary to stress the possibility and need to implement them into economic reality, which, just like the studies themselves, can take place at various levels of generality
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