Research Concerning Standard Gross Margin Depending on Yield in Dairy Farming

Abstract

The paper aimed to establish gross margin for three levels of milk yield/cow/year under the condition of Romania: V1-4,000 kg, V2-5,000 kg and V3-6,000 kg. The technical data were collected from three dairy farms and the economic calculations were based on the EU methodology taking into consideration prices of the year 2011.The following indicators were determined for each level of milk yield: gross product, variable cost and gross margin. The estimates for gross margin/cow were Lei 1,927 for the variant with the smallest milk yield, Lei 2,561 for the variant with the middle yield and Lei 3,454 for the variant with the highest milk yield. As a conclusion, gross product and variable cost were directly influenced by milk yield and the higher the milk yield, the higher gross margin and economic efficiency per cow. In order to increase farm financial performance expressed by gross margin and profit, farmers have to rise milk yield per cow using high productive animals, sufficient and high quality forages and keep production cost, mainly variable cost under control.