2020Unpublished venueOpen access

Assessment of Economic Efficiency of Production and Sale of Raw Milk by Dairy Farms Within an Agroholding

Vladimir V. Krupitsyn, L.V. Vostroilov, Л. А. Запорожцева, E.I. Ruzhkov

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Abstract

The article presents the assessment with the justification of the economic efficiency of the dairy farms in the conditions of an agricultural holding, which has a technologically interconnected mechanism connecting the production, processing, and sale of raw milk and dairy products.A model of structural and logical production factors affecting the volume of raw milk production, as well as the level of its consumer properties, is proposed.This model is applied for the production technology and is a part of the overall quality management system for raw milk.During the period of 2017-2019 the profit of the agrarian complex of EcoNivaAgro, LLC, was naverage -2513836 ths rubles.Profit per 1 hectare of agricultural land was naverage -22874.1 ths rubles, and per 1 man-hour naverage -2376.0ths rubles, correspondingly.Milk productivity per 1 forage-fed cow was naverage -24.8 kg dayly during the period of the study.Profit from the sale of the raw milk per 1 forage-fed cow was -93424.6 rubles.The efficiency of the produced raw milk at cattle-breeding companies within the agricultural holding at the initial stage of its organization was unprofitable, however, later and to the present moment, the profitability indicator of milk production and sale is relatively high and is respectively naverage -60.6 and 38.8 %.The profitability level, as an economic efficiency indicator, is affected by technological factors that determine the cost of production of raw milk.Based on the work carried out, it can be noted that agricultural holdings have a high potential for competitiveness and development in their area of activity, both dairy cattle breeding and other agricultural sectors, while saving resources, taking into account joint and effective work due to a balanced mechanism.

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The article presents the assessment with the justification of the economic efficiency of the dairy farms in the conditions of an agricultural holding, which has a technologically interconnected mechanism connecting the production, processing, and sale of raw milk and dairy products.A model of structural and logical production factors affecting the volume of raw milk production, as well as the level of its consumer properties, is proposed.This model is applied for the production technology and is a part of the overall quality management system for raw milk.During the period of 2017-2019 the profit of the agrarian complex of EcoNivaAgro, LLC, was naverage -2513836 ths rubles.Profit per 1 hectare of agricultural land was naverage -22874.1 ths rubles, and per 1 man-hour naverage -2376.0ths rubles, correspondingly.Milk productivity per 1 forage-fed cow was naverage -24.8 kg dayly during the period of the study.Profit from the sale of the raw milk per 1 forage-fed cow was -93424.6 rubles.The efficiency of the produced raw milk at cattle-breeding companies within the agricultural holding at the initial stage of its organization was unprofitable, however, later and to the present moment, the profitability indicator of milk production and sale is relatively high and is respectively naverage -60.6 and 38.8 %.The profitability level, as an economic efficiency indicator, is affected by technological factors that determine the cost of production of raw milk.Based on the work carried out, it can be noted that agricultural holdings have a high potential for competitiveness and development in their area of activity, both dairy cattle breeding and other agricultural sectors, while saving resources, taking into account joint and effective work due to a balanced mechanism.

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Available abstract

The article presents the assessment with the justification of the economic efficiency of the dairy farms in the conditions of an agricultural holding, which has a technologically interconnected mechanism connecting the production, processing, and sale of raw milk and dairy products.A model of structural and logical production factors affecting the volume of raw milk production, as well as the level of its consumer properties, is proposed.This model is applied for the production technology and is a part of the overall quality management system for raw milk.During the period of 2017-2019 the profit of the agrarian complex of EcoNivaAgro, LLC, was naverage -2513836 ths rubles.Profit per 1 hectare of agricultural land was naverage -22874.1 ths rubles, and per 1 man-hour naverage -2376.0ths rubles, correspondingly.Milk productivity per 1 forage-fed cow was naverage -24.8 kg dayly during the period of the study.Profit from the sale of the raw milk per 1 forage-fed cow was -93424.6 rubles.The efficiency of the produced raw milk at cattle-breeding companies within the agricultural holding at the initial stage of its organization was unprofitable, however, later and to the present moment, the profitability indicator of milk production and sale is relatively high and is respectively naverage -60.6 and 38.8 %.The profitability level, as an economic efficiency indicator, is affected by technological factors that determine the cost of production of raw milk.Based on the work carried out, it can be noted that agricultural holdings have a high potential for competitiveness and development in their area of activity, both dairy cattle breeding and other agricultural sectors, while saving resources, taking into account joint and effective work due to a balanced mechanism.

Key concepts: Raw milk, Production (economics), Milk production, Business, Agricultural science, Dairy industry, Raw material, Agricultural economics

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