Development of milk production costs in dairy farms in the Czech Republic and their relationship to production indicators

SYRŮČEK, Jan, BARTOŇ, Luděk, ŘEHÁK, Dalibor, KVAPILÍK, Jindřich and BURDYCH, Jiří. Development of milk production costs in dairy farms in the Czech Republic and their relationship to production indicators. In 16th Congress of the European Association of Agricultural Economists, EAAE. PowePpoint Presentation: Prague, 2021, s. . ISBN .
Year2021
CathegoryOthers
Internal link21086.pdf
Abstract

Milk production is one of the most important areas of the Czech agrarian sector. An adequate level of profitability is necessary to ensure the long-term sustainability and development of dairy farms and to achieve and maintain self-sufficiency in milk production. In addition to milk prices, which are mainly due to supply and demand on markets, economic efficiency is influenced by the level of costs, which is partly related to the herd management. The objective of this study is to analyse the amount, structure, development and relationships between production indicators and production costs of milk production in the Czech Republic in recent years. Data were obtained from dairy cattle farms located in different regions of the Czech Republic for the period from 2010 to 2019 using a questionnaire. The farms were evaluated separately according to the used breed (Holstein farms H and Czech Fleckvieh farms C). The farms were divided according to the herd size and milk yield per cow and year. The results show that, between 2010 and 2019, the total costs per feeding day and litre of sold milk increased by 32 and 6 %, respectively by 34 and 9 % according to the breed C, respectively H. Feed costs represented the largest cost item, accounting for 43 % of the total cost. Compared to the farms with the C breed, H breed farms had in each analysed year higher costs per feeding day but, due to higher milk yields, the cost per litre of milk sold was lower. The analyses revealed that the costs were mainly influenced by the level of yearly milk yields.