Costs and profitability of dairy farms in the Czech Republic in 2020

SYRŮČEK, Jan, BARTOŇ, Luděk and BURDYCH, Jiří. Costs and profitability of dairy farms in the Czech Republic in 2020. Černostrakaté novinky, 2021, vol. 2021(2), p. 14-18. ISSN .
Year2021
CathegoryOthers
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Abstract

Statistical data show that milk production is not only in the Czech Republic, but also in most countries of the European Union, among the most important areas of the agricultural sector. For the maintenance and further development of dairy cattle breeding respectively milk production, however, it is essential that the economic result of farming is a reasonable level of profit. The presented results are based on data obtained from the cost survey of milk production in the Czech Republic carried out annually by the questionnaire method by the Institute of Animal Science. For 2020, data were obtained and analyzed from 124 dairy farms in the Czech Republic. Farms were divided and evaluated separately according to the breed (Czech Fleckvieh (C) and Holstein (H). The average annual milk yield of the evaluated farms was 8,972 liters per cow and the market production was 8,720 liters, which represents an increase of 226 liters (2.6%), respectively by 211 liters (2.5%) compared to the results of 108 analyzed dairy farms in 2019. Costs after deduction of value of secondary outputs of animal production were 79.1 thousand CZK, i.e. 9.07 CZK per liter of milk sold. Compared to 2019, the costs after deduction increased by 2,931 CZK per cow and year, respectively by 0.12 CZK per liter of milk sold. In 2020, it was not possible to cover all costs from the income from the sale of milk, and production was on average unprofitable without subsidies. The profit was achieved only taking into subsidies. Farms breeding dairy cows H breed had on average 44 CZK per feeding day higher average costs after deduction compared to farms breeding dairy cows C breed. However, due to higher milk yields, farms with H breed per liter of milk sold recorded lower average costs by 0.65 CZK.