Sensitivity of contribution margin in milk production on family farms
Abstract
Milk production in Serbia is characterized by small surface of production and a large number of small family farms. For rural areas where this production is mostly carried out, economic profitability of production contributes to becoming a family business. This study refers to milk family farms of smaller and medium economic and production capacity, for which the economic analysis in the period of three years was applied and production results were calculated. Applying the calculation method the total revenues and total costs, and contribution margins per cow and per liter of produced milk were computed. By comparing the results obtained on farms A and B, conclusions were drawn, and the sensitivity of contribution margins to change of the given parameters (purchase prices of milk and milk produced per cow) was determined by sensitivity analysis. The stability in production is realized by achieving higher contribution margins with satisfactory milk yield per cow and quality milk, as wel...l acceptable purchase prices of milk.
Keywords:
case study / milk costs / revenues / sensitive analysisSource:
Journal of Central European Agriculture, 2018, 19, 3, 658-677Publisher:
- Univ Zagreb, Fac Agriculture, Zagreb
Funding / projects:
- The Improvement and Preservation of Biotechnology Procedures for Rational Energy Use and Improvement of Agricultural Production Quality (RS-MESTD-Technological Development (TD or TR)-31051)
DOI: 10.5513/JCEA01/19.3.2095
ISSN: 1332-9049
WoS: 000444695400014
Scopus: 2-s2.0-85059475914
Collections
Institution/Community
Poljoprivredni fakultetTY - JOUR AU - Veljković, Biljana AU - Koprivica, Ranko AU - Radivojević, Dušan AU - Mileusnić, Zoran PY - 2018 UR - http://aspace.agrif.bg.ac.rs/handle/123456789/4657 AB - Milk production in Serbia is characterized by small surface of production and a large number of small family farms. For rural areas where this production is mostly carried out, economic profitability of production contributes to becoming a family business. This study refers to milk family farms of smaller and medium economic and production capacity, for which the economic analysis in the period of three years was applied and production results were calculated. Applying the calculation method the total revenues and total costs, and contribution margins per cow and per liter of produced milk were computed. By comparing the results obtained on farms A and B, conclusions were drawn, and the sensitivity of contribution margins to change of the given parameters (purchase prices of milk and milk produced per cow) was determined by sensitivity analysis. The stability in production is realized by achieving higher contribution margins with satisfactory milk yield per cow and quality milk, as well acceptable purchase prices of milk. PB - Univ Zagreb, Fac Agriculture, Zagreb T2 - Journal of Central European Agriculture T1 - Sensitivity of contribution margin in milk production on family farms EP - 677 IS - 3 SP - 658 VL - 19 DO - 10.5513/JCEA01/19.3.2095 ER -
@article{ author = "Veljković, Biljana and Koprivica, Ranko and Radivojević, Dušan and Mileusnić, Zoran", year = "2018", abstract = "Milk production in Serbia is characterized by small surface of production and a large number of small family farms. For rural areas where this production is mostly carried out, economic profitability of production contributes to becoming a family business. This study refers to milk family farms of smaller and medium economic and production capacity, for which the economic analysis in the period of three years was applied and production results were calculated. Applying the calculation method the total revenues and total costs, and contribution margins per cow and per liter of produced milk were computed. By comparing the results obtained on farms A and B, conclusions were drawn, and the sensitivity of contribution margins to change of the given parameters (purchase prices of milk and milk produced per cow) was determined by sensitivity analysis. The stability in production is realized by achieving higher contribution margins with satisfactory milk yield per cow and quality milk, as well acceptable purchase prices of milk.", publisher = "Univ Zagreb, Fac Agriculture, Zagreb", journal = "Journal of Central European Agriculture", title = "Sensitivity of contribution margin in milk production on family farms", pages = "677-658", number = "3", volume = "19", doi = "10.5513/JCEA01/19.3.2095" }
Veljković, B., Koprivica, R., Radivojević, D.,& Mileusnić, Z.. (2018). Sensitivity of contribution margin in milk production on family farms. in Journal of Central European Agriculture Univ Zagreb, Fac Agriculture, Zagreb., 19(3), 658-677. https://doi.org/10.5513/JCEA01/19.3.2095
Veljković B, Koprivica R, Radivojević D, Mileusnić Z. Sensitivity of contribution margin in milk production on family farms. in Journal of Central European Agriculture. 2018;19(3):658-677. doi:10.5513/JCEA01/19.3.2095 .
Veljković, Biljana, Koprivica, Ranko, Radivojević, Dušan, Mileusnić, Zoran, "Sensitivity of contribution margin in milk production on family farms" in Journal of Central European Agriculture, 19, no. 3 (2018):658-677, https://doi.org/10.5513/JCEA01/19.3.2095 . .