Economic context of milk production in the Czech Republic in 2020

SYRŮČEK, Jan, BURDYCH, Jiří and BARTOŇ, Luděk. Economic context of milk production in the Czech Republic in 2020. Náš chov, 2021, vol. 81(8), p. 10-15. ISSN 0027-8068.
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Economic efficiency of production plays an important role in the decision-making process of every agricultural enterprise, including milk producers. Economic results of 2020 were affected by the decline of milk prices, which may have been caused by a higher milk supply than demand and difficult marketing conditions. The aim of this study was to analyse the economic indicators of milk production in the Czech Republic in 2020 and to compare them with the results of previous years. Data were obtained from 124 dairy farms from the Czech Republic using the questionnaire method. The results showed that compared to the previous year the total costs per cow and year increased by 2,931 CZK and amounted to 83,036 CZK in 2020. The costs after the deduction of secondary outputs (calves and manure) per l of milk sold was 9.07 CZK, which represents an increase by 0.12 CZK. As in the previous year, it was not possible to cover all costs from milk sales and, on average, the production was unprofitable. Positive profitability was only achieved when all subsidies were considered. Over the last four years, price of milk has not significantly changed, while the cost per litre of milk sold has increased by 8%. The analysis confirmed the different levels of costs for groups of farms according to the cattle breed, production area, farm size and annual milk yield.