Economic Viability of Family Dairy Farms

Abstract

For optimal farm management, it is very important to research potential opportunities of raising its rental ability. These opportunities lie as by side of selling income as of its costs. It causes a necesity of constant cost control and of looking for new methods of reducing these costs. The aim of study was the assessment of economic viability of family dairy farms .The economic efficiency of these farms was analysed according to scale of production. Basic indicators and measures of the economic efficiency of production, such as net agricultural income, gross margin, production costs, parity income and break-even point were calculated. The paper presents the analyze of disproportion income between small and large farms. The executed analysis showed that from economic point of view the optimal dairy farms maintains about 60 cows.