Economic efficiency of milk production in the Czech Republic in 2019

SYRŮČEK, Jan, BURDYCH, Jiří and BARTOŇ, Luděk. Economic efficiency of milk production in the Czech Republic in 2019. Náš chov, 2020, vol. 80(7), p. 14-20. ISSN 0027-8068.
CathegoryPublication in specialized journals
Internal link20072.pdf

In 2019, according to the preliminary data of the Czech Statistical Office, milk production in current prices in the Czech Republic accounted for 51% of animal production and 19% of the total agricultural production. With the sales of almost 3 billion liters the total milk revenues amounted to 26 billion CZK, which confirms the importance of dairy sector in the Czech agriculture. Economic efficiency of production plays an important role in the decision-making process of every agricultural enterprise, including milk producers. The aim of this study was to analyze the economic indicators of milk production in the Czech Republic in 2019 and to compare them with the results of previous years. Data for 2019 were obtained from 108 dairy farms from the Czech Republic using the questionnaire method. Total costs and profit without and including subsidies were calculated. The results showed that compared to the previous year the total costs per cow and year increased by 3,630 CZK and amounted to 80,105 CZK in 2019. The costs per l of milk sold increased by 0.40 CZK and after deduction of the value of animal production secondary outputs (i.e. of calves and manure) these costs were 8.96 CZK. The total costs were on average higher than the income from milk sales, indicating an economic loss. Positive profitability was only achieved when all subsidies were taken into account. Different costs were demonstrated in the groups of farms divided according to the cattle breed, production area, farm size and annual milk yield.