Economic Analysis of Dairy Farms in Province of Izmir

Abstract

This study aimed to analyze the economic structure of dairy cattle farms, which were members of the Cattle Breeders‘ Association in İzmir Province. For this purpose, Ödemiş, Tire, Bayındır and Kiraz districts of İzmir province were included in the study. The main material of the study consisted of data obtained from the farmers through the questionnaire. The data belongs to the 2017 production period. The number of farmers interviewed was determined as 67 by proportional sampling method. When the data were being analyzed, farms were evaluated in three groups depending on their size. According to farm groups, number of cows, respectively, was 5-14, 15-49 and over 50. In the farms surveyed, the average number of animals was 49 heads, the number of milked animals was 22 heads, the daily milk yield was 22 kg and the lactation yield was 7,123 kg. The total active capital of the farms was $373,449 and the share of animal capital in active capital was 22%. Total variable costs per farm were $44,599, fixed costs were $15,605 and production costs were $60,204. Variable costs constituted 74% of the production costs. The share of feed costs in variable costs was 78%. Gross production value was calculated as $67,211. The share of milk sales in gross production value was 61%. Average gross profit per farm is estimated as $22,612, net profit as $7,007 and proportional profit as 12%. It has been revealed that the net profit and proportional profit of small farms were negative. As a result, it can be said that the profitability level of medium and large-scale farms is high, whereas small scale farms meet with loses in the research region.