Assessment of Profitability of Subsistence Dairy Cattle Farms From Size Perspective: a Case Study in Eastern Part of Turkey

Abstract

The major purpose of the study was to determine the profitability rates in comparison for small-scale, medium-scale and large-scale subsistence dairy farms in Eastern part of Turkey (Van Province). The data collected from 66 dairy farm managers through questionnaires belong to 2009 production year. Daily milk yield per cow was 9.88, 7.71 and 9.06 kg, for small, medium and large-scale farms, respectively. Feed costs per farm was the single major item and accounted for 85.37, 86.62 and 83.56 % of total variable costs for small-scale, medium-scale and large-scale farms, respectively. Profitability rates decreased in proportion to farm size being 8.78 % for small-scale farms against 3.28 % for large-scale farms. The total production elasticity of inputs (Sigma bi) was 1.82, which means increasing return to scale.