An Analysis of the Factors Discriminating

Nazari, Mohammadreza; Koupahi, Majid; Shams-o-din Vandi, Reza

An Analysis of the Factors Discriminating "Successful" and "Less Competent" Holstein Dairy Farms in Shahriar County

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Abstract

Factors differentiating the successful and less competent dairy farms were identified, using data from 56 Shahriar dairy farms. Then, were determined the role and share of different factors, including management, efficiency and scale in the discrimination trend. In order to have the dairy farms classified into "successful" and "less competent" ones cluster analysis as based on different profitability indices was employed. Following a consistency test of the results of the indices, two logit models were estimated. The results indicated that production scale (herd size) is an important factor influencing the discrimination betweenthe two categories and shows a nonlinear relation with probability in success. Among the efficiency factors, feed efficiency and cow productivity are in positive and significant relation with profitability. Manager experience, education related to animal science, use of modern technologies and bank loan were among the most important managerial discriminating factors. Also, such variables as stability of herd combination, reproduction management and production diversification index are factors influencing dairy farm profitability.

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