Investigate the effect of management factors on production and profitability of industrial dairy cattle breeding farms: the case study of southern Tehran province

Amini Shal, Hashem; Yazdani, Ahmad Reza; Chizari, Amirhossien; Alaei Borujeni, Pezchman; Rafiei, Hamed

doi:10.22059/ijaedr.2013.36069

Investigate the effect of management factors on production and profitability of industrial dairy cattle breeding farms: the case study of southern Tehran province

Document Type : Research Paper

Authors

Hashem Amini Shal ¹

Ahmad Reza Yazdani ²

Amirhossien Chizari ³

Pezchman Alaei Borujeni ⁴

Hamed Rafiei ⁵

¹ M.Sc student for animal husbandry management of Gorgan university agricultural sciences & natural resources

² Assistant professor, faculty of animal science of Gorgan university agricultural sciences & natural resources

³ Assistant Professor, department of agricultural economics university of Tehran, faculty of agricultural sciences & natural resources

⁴ P.H.D student for agricultural economics university of Tarbiat Modares, faculty of agriculture

⁵ P.H.D student for agricultural economics university of Tehran, faculty of agricultural sciences & natural resources

10.22059/ijaedr.2013.36069

Abstract

One of the main factors affecting on the technical and economic performance of farms and livestock is the ability or capacity management. Main goal of farm management is achieving specific performance, profitability and productivity; there for measurement management and performance in livestock farms are necessary. Considering the necessity of increasing production and quality in the dairy industry, to investigate the effect of different inputs and also total factor productivity and management impact on output and profitability, milk production and profit functions, were estimated using Ordinary Least Squares (OLS) method. In this study, data and information were collected by studying documents, observation and interview procedures. Results of production and profit functions estimation showed that productivity and management have positive significant effects on output and profitability. The total factor productivity of them was measured using Tornqvist-Theil indicator; total factor productivity of farms was calculated 0.92 in average. Also, management index for each farm were measured using Multiple Attribute Decision Making (MADM) techniques; the average of management indicator were obtained 0.55. Among the variables included in the production function, two edible inputs; concentrates and alfalfa, and then the labor, respectively have the highest milk production elasticity. It was also showed that the fuel input was used consumedly and in non-economic region of production. Results of profit function estimation showed that fuel price after the price of alfalfa have the greatest negative impact on profitability of dairy farms; on the other hand, concentrates price, wages and cost of each time artificial insemination, have the positive effect on profitability.

Keywords

dairy cattle farm

management

Production Function

profit function

productivity