Economic Analysis of Dairy Cattle Farms in Sivas Turkey

  • Hakan Murat
Keywords: Cost, Dairy Cattle, Economic Analysis, Profitability

Abstract

This research aims to make economic analysis by considering the production activities of dairy cattle enterprises in Sivas Province, Turkey and to determine whether they are working profitably. This study was conducted in 80 dairy cattle farms, members of the Dairy Cattle Breeders Association of Sivas, in 2019-2020. Among the selected establishments, those with a maximum of 5 cows were defined as small-scale, those with up to 6-15 cows were medium-scale, and those with 16 or more cows were defined as large-scale enterprises. According to the results of the research, the percentage of cost items that comprise the cost consist of  were as follows; 51.3% feed, 30.1% labor costs, 3.4% health expenses, 2.6% general administrative expenses, and 2.6% other expenses, respectively. Looking at examined the income items, milk income ranks first with 71.7%. This item is followed by calf income with 12.2%, an increase in inventory value with 11.4%, and state support with 4.6%. The average cost of 1 liter of milk was found to be $ 0.19 in the study. When we look at the financial profitability, economic profitability, and profitability factors, it is seen that small-scale enterprises are located negatively position and the cost-to-return ratio of these enterprises is less than 1. These values ​​show that small-scale farms' are not working profitably. In medium and large enterprises, these values ​​are located in a positive area. It is seen that the ratio of cost to revenue in medium-sized enterprises is equal to "1", that these enterprises are in transition to the profit part, and in the analysis of the profitability parameters in large-scale enterprises, they have been seen located in the fully profitable region.

Published
2020-12-26
How to Cite
Murat, H. (2020). Economic Analysis of Dairy Cattle Farms in Sivas Turkey. International Journal of Veterinary and Animal Research (IJVAR), 3(3), 49-54. Retrieved from http://ijvar.org/index.php/ijvar/article/view/468
Section
Articles