Research concerning gross margin in dairy farming in Romania
2009
Popescu, A., University of Agricultural Sciences and Veterinary Medicine, Bucarest (Romania)
This study aimed to present a comparison between dairy farms of various herd size, average milk production and juridical status using gross margin per farm whose value was compared to standard gross margin provided by Eurostat in order to establish in what kind of category each farm could be classified, how Romanian dairy business farms could be quoted compared to the EU standards. The comparison is done between three types of farms as follows: V1 - a family farm raising 12 dairy cows whose average milk yield was 3,500 kg/cow/year, V2 - a family association raising 50 dairy cows whose average milk yield was 5,000 kg/cow/lactation and V3 - a dairy commercial farm raising 150 cows whose average milk yield was 6,000 kg/cow/year. Gross margin is a barometer of economic efficiency in dairy farms showing how much gross product is achieved per each unit of variable costs. The higher are farm size and milk production, the higher are gross margin, net profit and profit rate. Family farm recorded 2,97 ESU which allows that its business is very small according to EU standards. This means that farms of such a type are not profitable. Family association has a small business becouse it registered 20,38 ESU. Commercial farm has a medium business size accoerding to EU satandards.
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