Economic Analysis of Dairy Cattle Farms by Farms Sizes and Geographic Regions in Türkiye

Abstract

Dairy cattle breeding is one of the most important agricultural activities, providing a continuous supply of animal protein, employment opportunities, and income for rural households. The sustainability and profitability of dairy farms are influenced by various factors, including farm size, production efficiency, input costs, and regional differences. Therefore, evaluating the economic performance of dairy farms is essential for improving the competitiveness and sustainability of the dairy sector. Dairy cattle breeding worldwide and in Türkiye contributes to the family and national economy in many ways and creates added value. This study aimed to evaluate the economic analysis of dairy cattle farms in terms of costs, profit, and productivity by farm size groups and regions in Türkiye. Data were obtained from face-to-face interviews with 662 dairy cattle farms located in 12 provinces of Türkiye. The farms were divided into four groups according to the number of dairy cattle. The total costs, milk production, income, and profit per animal unit were then calculated. According to the results, as the size of the farm increased, the lactation length, milk yield, and milk sales price increased. Milk sales revenue (49.36%) consisted of the farm revenue. Feed costs had the highest share (84.30%) of the total variable costs. In addition, while the total income of dairy cattle farms in the study was higher in the provinces located in the west, it was lower in the provinces in the east. The average cost-benefit ratio was 1.56 and tended to increase as the farm size increased. The findings indicate that economies of scale play a significant role in improving the profitability and efficiency of dairy cattle farms. Supporting productivity-enhancing practices, particularly in small-scale farms and less-developed regions, may contribute to reducing regional disparities and strengthening the sustainability of the dairy sector. The results provide valuable insights for policymakers, extension services, and producers in developing strategies aimed at increasing farm competitiveness and ensuring long-term economic viability.

Keywords

• Dairy cattle
• economic analysis
• income
• gross profit
• net profit

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