engleski

Business results and competitiveness of dairy farms in Eastern Croatia

The dairy sector is important part of Croatian agriculture. The fact is domestic production in past 6 years was not able to cover national demand on milk and beef. Since some progress is evident it is interesting to determine financial results of dairy businesses and its competitiveness in comparison to other agricultural enterprises. Survey was conducted in 19 Eastern Croatia villages (mainly in Osijek-baranja county) with "cluster" sample. Results of the analysis show that characteristics and financial results of investigated farms are significantly above the national average. The farm cultivates in average 12.34ą9.17 ha of arable land and has 7.33ą7.03 cows. More than 2/3 of all farms rent arable land and rented lands participate with 54.45ą24.49% in total cultivated land. Milk yield per cow and year is 4184ą1475 litres with 3.74ą0.27% MF. From total milk production 73.97ą9.26% is marketed. Family has 5.03ą1.47 members and they spend on the farm 21.02ą10.36 labor hours daily. Average farm net worth is 540441ą426512 kunas, a farm operation generates sufficient funds for family living. The net income is 18377ą40890 kunas, rate of return to farm equity is -5.02ą9.18% and return to unpaid labor and management is -42712ą44912 kunas. Negative net incomes (9 farms), negative rates of return to farm equity (21 farms) and negative return to labor and management (24 farms) indicates serious business problems and inadequate resource utilization. Further analysis shows that impacts of milk marketing strategy, herd size and additional incomes on rate of return to farm equity are not significant.

Dairy farm; farm financial analysis; Eastern Croatia

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