IMPACT OF ECONOMIC ENVIRONMENT ON HERD SIZE AND MILK PRODUCTION IN A DAIRY CATTLE FARM

In the last 10 years, the situation of Hungarian dairy farmers is critical. This condition can also be observed in EU Member States. The problem is caused by several factors. Increasing feedstuffs prices and low buying prices have serious effects on the situation of the farmers. The aim of this study is to determine the effect of economic environment on herd size and milk production. Data were collected for 4 years from 2012 to 2015 from a dairy cattle farm in South-Hungary. The number of cows was 419 at the end of 2015, having suffered a fall of 16% over the 4 years. The largest number of animals was seen at beginning of August 2013 (604 cows), the population decreased by 30% between the middle of 2013 and the end of 2015. The average milk production (mean/all cows) changed between 9.4 kg (2013 Third Q.) and 20.7 kg (2012. First Q.). This value of milked cows was 12.1 kg and 24.2 kg in same period. We found strong positive correlation between milk price and herd size (r=0.72; R 2 =0.512) and weak correlation between milk price and average milk production (r=0.325; R 2 =0.106). We conclude that decreasing milk price and increasing input prices have played a role in decreased population size and reduced milk production of population.