The possibilities and economical explanations for development of dairy directed farms

Main Article Content

Andrzej Parzonko


Keywords : milk production economics, production scale, farm profit
Abstract
In the article there were presented possibilities and economical explanations for development of the dairy directed farms, delivering yearly 28 thousands liters of milk. Mentioned milk sales level per farm represents average farm deliveries to the dairy purchasers within the milk quota year 2004/2005. Basing on the results it may be concluded that milk production at the abovementioned level is slightly profitable. Taking into consideration additionally costs of the owned production factors (land, capital and labour) it occurs that this production scale generates large loses. Investments in an increase of the production scale, financed by the preferential credits, lead to fluency problems. Therefore it may be predicted that those farms doesn’t have much chances for development in direction of milk production. Hence they must rather search for an additional income outside the farm.

Article Details

How to Cite
Parzonko, A. (2006). The possibilities and economical explanations for development of dairy directed farms. Annals of Agricultural Economics and Rural Development, 93(1), 83–91. https://doi.org/10.22630/RNR.2006.93.1.9
References

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