Economic Analysis of Sheep Farms: a Case Study From Eastern Part of Turkey

Abstract

Gross profit and profitability rates of 72 sheep farms in Center town of Hakkari was calculated and the relationship between milk production quantity per farm during lactation period and major production factors were determined using Coob-Douglas production function. Daily milk yield per sheep production unit and daily milk yield per sheep production unit per lactation was 0.28 g. and 47.59 kg, respectively. More than half (53 %) of gross production value ($ 8,435) was obtained from the selling values of lamb and goat followed by production values of milk with 25.7 %. Daily feed intake per sheep production unit was 1.87 kg, which roughage feed made up 97.64 % of total feed intake. On the other hand, feed costs per sheep production unit made up nearly two- third (74.68 %) of total variable costs. Gross profit per sheep production unit was $ 71. Coob-Douglas production function showed that a positive and strong relationship (R2 = 0.963) existed between total milk quantity per farm during lactation period and the major production factors. The total production elasticities was 1.71, which means increasing return to scale.