International comparisons of the economics of milk production in Isfahan’s Holstein farms

Authors

1 Isfahan University of Technology

2 Department of Animal Science College of Agriculture Isfahan University of Technology

3 IFCN Dairy

Abstract

Abstract
Background and objectives: One of the most important goals of dairy cows breeding is to increase profitability by reducing production costs. Cost analysis is one of the basic needs to calculate the economic efficiency of cattle breeding to reduce the cost of milk. Considering that the study of the present subject has not been seriously considered by researchers and officials, we conducted a study aimed at investigating the economic aspects of milk production in Holstein herds in Iran compared it to other countries in the world.
Materials and Methods: For this purpose, economic and returns indicators, and affecting factors on milk production costs in five Isfahan dairy herds as a sample in 1396 over one year was calculated. Data were collected through a questionnaire and economic analyses were performed by using the TIPI-CAL model which was developed by the IFCN Dairy World Network, and statistical analyses were performed using SAS software. IFCN Dairy is an international farm Comparison network that economically and productively analyzes the information of best farms from more than 100 countries, and for a more accurate and comprehensive understanding of the dairy world with compiles, a milk global map Compares together.
Results: Studies showed that the highest cost of the dairy herd with an average of 68% in Iran and 55% on a world scale was related to feed. The labour costs had a 7% share and the share of depreciation on machinery and buildings was 7.8% of total costs. In typical farms, per 100 kg energy-corrected milk (ECM), an average of Feed cost was 26.0 USD, Vet & medicine cost was 4.1 USD, machinery and buildings costs was 3.1 USD and the labor costs had an average of 2.8 USD. On average, Cash costs were adjusted to 36 USD, depreciation, and lost opportunity costs were also 1.7 and 0.7 USD/100 kg ECM. The average cost of producing milk only in typical farms was 29.8 USD/100 kg ECM. World milk price indicator, world feed price indicator, and IFCN sustainability indicator were calculated on IRAN and global scale in the last 10 years, and also was seen in 1396 typical farms with 1.2 sustainability indicator were financially justified and profitable.
Conclusion: The results of the study indicate the existence of profitability and financial and economic justification in the studied farms, which was estimated by examining the factors affecting the cost of milk and also calculating economic indicators. The financial and economic study of dairy farms can better identify the location of these farms and increase the level of awareness of policymakers and investors of agricultural activities to make principled decisions or solve existing problems. The results of this research can provide a new approach to comparing dairy herds in different countries and compare it with dairy farms in Iran by using the economic, return, and profitability indicators to dairy farmers and experts.

Keywords

References

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Journal of Ruminant Research
Volume 9, Issue 2
September 2021
Pages 107-120

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