Acta Veterinaria Eurasia
Research Article

FACTORS INFLUENCING PROFITABILITY IN DAIRY HERDS: A QUANTITATIVE METHOD APPROACH

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Department of Animal Health Economics and Management, Faculty of Veterinary Medicine, University of Afyon Kocatepe, Afyonkarahisar, Turkey

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Department of Animal Husbandry, Faculty of Veterinary Medicine, University of Afyon Kocatepe, Afyonkarahisar, Turkey

Acta Vet Eurasia 2008; 34: 25-32
Read: 1143 Downloads: 597 Published: 24 December 2019

This research was carried out to determine the factors affecting profits by quantitative methods in dairy cattle. The material of the study was obtained from 78 dairy enterprises running in Afyonkarahisar by random sampling method. Multiple regression method was used to predict the way and  quantity of the relations between the profit per cattle and variables which were thought to have influences on profitability. All the independent variables involved in the model found to have significant effects on profit per cattle (P<0.001; P<0.05) according to the established prediction equation. This result indicated that a one TL increase in feed, labour, veterinarian-health, other and general management, maintenance and amortization expenditures on Y (profit/cattle) cause a decrease of -0.869; -0.838; -1.090; -2.168 and -1.163 TL respectively. However, a one liter additional gain in lactation milk yield and a one TL increase in the selling price of milk results in an increase of 0.193 and 45.815 TL respectively in Y (profit/cattle). The profitability of the enterprise is significantly affected due to the lack of farmers' using an initiative on determining the feed and milk prices. It was concluded that, the function of profit regression model could be used as a decision support tool in case of any change in sale prices and cost-effect factors in milk production.

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EISSN 2619-905X