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12
Wojtyra Bozena, Balcerak Marek ©
Warsaw University of Life Sciences Faculty of Animal Sciences
EVALUATION OF PROFITABLE SITUATION OF MILK PRODUCTION IN 2007
Key words: cows, milk production, seasonal character of milk production, costs, price of milk
Introduction
Cow breeding and milk production are closely addicted by the feeding stuffs production in the household. Milk production based on feeding stuffs from the purchase is unprofitable.
In Poland the greatest concentration of dairy cattle is appearing in four provinces: warminsko - mazurskie, podlaskie, mazowieckie, lubelskie. These are particularly beneficial lands for the breeding of dairy cattle, caused by great participation of meadows and pastures in the structure of the farmlands.
In current study seasonal character of milk production, incurred costs and gain profits from the milk production were presented in 2007 in an chosen farm.
Material and Methods Data concerning the scale of the milk production in the three-year period and costs and the price of the milk to the creamery for 2007.
In the realization of the trial data compared in chosen arable farm were used. In 2007 evaluation of profitable situation of milk production was carried out on the profit level based on activity. Independently of direct costs also indirect costs were taken into consideration. Value of the production, incurred costs and gained profits from the milk production were given in converting into 1 cow.
Discussion
Seasonal character of the production of the milk in years 2005 - 2007
Milk production in the analysed farm has fluctuated from 356 kg in November 2005 to 473 in August 2007. The indicator of the seasonal character of the milk production in the examined farm took out 76.2 % (in 2005), 81 % (in 2006) and 82.9 % (in 2007) and diverged from the assumptions.
Producers are aspiring for the maintenance of milk production on the identical level. It is quite difficult, because one should spread calve out of cows evenly in the year and to provide with fodders of the good quality all through the year.
In households examined by Wojtyra (1996) the evenness of the milk production was smaller. Only in three national barns, in three consecutive years, an indicator of the
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seasonal character crossing 70 %, and as far as in five cases below 50 %. However in two barns the rate amounted below 20 % what shows, that between the minimal and maximum monthly milk production the difference was fivefold.
Analysing monthly milk production presented in the figure 1 in years 20052007 existence of seasonal changes, which for years are a considerable problem for the creamery, were observed. The milk production in winter was on the lower level. The increase of milk production was noticed in spring and was constans to the October.
2005r. 2006r. 2007r.
Figure 1. Monthly milk production in the examined farm in 2005 - 2007 (kg)
50
0
This adverse phenomenon is unfavorable for creameries, because there is no such amount of the material to exploit the processing capacity, as well for suppliers, because have lower incomes.
A negative influence of seasonal character of production effects on the competitiveness of the sector by the increase of regular costs in total costs. For raising the competitiveness of Polish milk producers action for reducing the phenomenon for the seasonal character should be taken.
About the fact that the milk production is higher in the season sping-summer versus autumn-winter, informed many authors (Janicki, 1974; Lewczuk, 1973; Woloszynski, 1978).
According to Wojcik et al. (1999) the great seasonal character of the production is provoked with the deficiency and the poor quality of bulky feeds in winter period nutrition, with notable seasonal character of calving, which in farm are planned for the spring period.
Prices, costs and the profitability of milk production
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In Figure 2 milk price in years 2005-2007 and costs of the milk production in 2007 in the monthly arrangement were presented.
The smallest hesitations of milk prices took place in 2006. In years 2005 -2006 milk price in the period since May to August dropped, in the period of increased production. Specific situation appeared in 2007, because the milk price systematically rose. It was related directly with a worldwide milk price rise. This trend was stopped in December. In Poland average milk price of the purchase in December 2007 grew to 132.15 PLN/100 kg, towards 98.35 PLN/100 kg in 2006 year- about by 34.4 % (Smolenski, Zdziarska; 2008).
In 2007, in the examined farm slightly slower grew costs of milk production, at least around similar to trend of milk price. In April costs were lowest and then systematically they grew.
In Table 1 costs and profits on the milk production were presented (in converting into 1 cow in the bygone year). It should be noticed that mainly value of the milk production decides the milk price. It's assessed, that the income from milk sell make average 90 % of farm incomes in dairy cattle. In the structure of direct costs maintenances of dairy cows, a large stake constituted costs of own feeding stuffs. In dairy cows nutrition silages were applied and prewilted silage and cereals. Feeding stuffs from out of farm are cereals, mineral-vitamin feeds, beet pulp. Possibly a full cover of their nutritional needs is a principle of feeding dairy cows, at the maximum participation of bulky feeds.
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- 2005r.
- 2006r. 2007r.
koszty 2007r.
III IV V VI VII VIII IX X XI XII
month
1.6
1.4
1.2
0.8
0.6
0.4
0.2
0
Figure 2. Monthly milk prices in 2005-2007 and costs of production in 2007 in
the examined farm (PLN/kg)
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Table 1
the Production, costs and get profits on the production of the milk (zloty to 1 _cow) in 2007 r.__
No Specification Value (PLN)
1. Value of total production 6795
In it: milk 6445
Weaned calf 154
Rejected dairy cow 196
2. Direct costs 3761
In it: feeding stuffs from purchase 758
Own feeding stuffs 1986
Other 1017
3. Direct surplus (1 - 2) 3033
4. Real indirect costs 1502
5. Gross value added from activity (3 - 4) 1531
6. Depreciation (of buildings, machines and devices) 210
7. Net value added from activity (5 - 6) 1321
8. Costs of extrinsic factors 6
9. Profit on activity (7 - 8) 1315
10. Cost of 1 litre milk production (2+ 4+ 6+ 8)/ 13 1,05
11. Cost of 1 litre milk (1/ 13) 1,31
12. Profitability of the production (%) (11-10)/10*100% 24
13. Milk Production (litres/cow) 5200
In the examined farm the milk production was profitable. In 2007 price of 1 litre of milk exceeded its production costs for 0.26 PLN. Every 100 PLN of incurred costs yielded 24 PLN profit. The profit on activity in converting into 1 cow amounted to 1315 PLN, what was caused with considerable height of the milk price in 2007.
Conclusions:
1. A seasonal character didn't manage to avoid the purchase of the milk. Much milk was bought since May until the end of the October but less in winter months.
2. In 2007 a considerable milk price rise, what was bound with a worldwide rise of milk prices.
3. In the examined household the production of the milk was profitable. In 2007 the price of 1 litre of milk exceeded costs of his production for 0.26 PLN.
References
1. Janicki Cz., 1980: Wplyw wieku pierwszego wycielenia oraz sezonu wycielenia na wydajnosc mleka krow odmiany holsztynsko- fryzyjskiej i miejscowej czarno- bialej w POHZ Osowa Sien. Rocz. AR Poznan, 28:43-50.
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2. Lewczuk A., 1973:Wpfyw niektorych czynnikow na wydajnosc i sklad mleka w kolejnych pi^ciu laktacjach krow rasy ncb w wojewodztwie olsztynskim. Cz^sc II . Wplyw miesi^ca ocielenia. Rocz. Nauk Rol. 95-B-1: 23-36.
3. Smolenski Z., Zdziarska T., 2008: Rynek mleka. W zbiorze Rynek Rolny, IERiGZ - PIB
4. Wojtyra B., 1996: Analiza porownawcza wskaznikow techniczno -produkcyjnych i ekonomicznych wybranych ferm bydla mlecznego. Praca doktorska. Biblioteka Glowna SGGW w Warszawie.
5. Woloszynski W.,1978: Zmiennosc wydajnosci mleka oraz procentowej zawartosci tluszczu i bialka w mleku krow pierwiastek ncb na terenie Wielkopolski w zaleznosci od miesi^ca wycielenia. Zesz. Prob. Post. Nauk Rol. 207:13-20.
6. Wojcik J., Kamieniecki H., Rzewucka E., Czajkowska T., 1999: Analiza skupu mleka w wybranych zakladach mleczarskich na terenie Pomorza Zachodniego. Mat. Konf. Nauk. Szczecin :51-56.
Summary
In current article the seasonal character of the milk production, incurred costs and profits from the milk production in 2007 in an chosen arable farm was described. The indicator of the seasonal character of milk production in the examined farm took out 76.2 % (in 2005), 81 % (in 2006) and 82.9 % (in 2007) and diverged from assumptions. The smallest hesitations of milk prices took place in 2006. The specific situation appeared in 2007, the milk price systematically rose. It was related to worldwide rise of milk prices. In the examined farm the milk production was profitable. Every 100 PLN of incurred costs yielded 24 PLN ofprofit.
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