Economic Factors Affecting Milk Production on Dairy Farms Between 2016 to 2020

Abstract

Due to ongoing improvements in genetic breeding and changes in farm management and the economic environment, there is a need to reassess factors related to milk production economics. This study aimed to evaluate economic indicators between 2016 and 2020 on Czech dairy farms that kept either Czech Fleckvieh or Holstein breeds and had varying milk yields. Data from 66 dairy farms in different regions of the Czech Republic Were collected using a questionnaire. Farms Were categorized into four groups based on breed and 2016 milk yield. Production costs increased by 13% to 17% across all groups due to higher milk yields, increased feed consumption, and input prices. Farms with above-average milk yields showed a higher annual growth rate of costs per liter of milk compared to those with below-average yields. Holstein farms with above-average milk yields Were the most profitable before subsidies. Groups with higher milk yields consistently showed higher income over feed costs. Low farm gate milk prices resulted in lower profitability across all groups in 2016 compared to other years.