| COMPETITIVENESS OF SERBIAN DAIRY PRODUCTION |
Project name: Competitiveness
of Serbian dairy production
About project: Department for agricultural economics and agribusiness has
joined to International farm comparison network – Dairy (IFCN- Dairy) at
beginning of 2008. IFCN, which Serbia is represented by Faculty of Economics
Subotica, is a network of dairy researchers from 78 countries. Those countries
produce over 90% of world milk production. Based on national level data,
collected on same method, IFCN perform analysis of the economic situation of
dairy farming world wide since the year 2000. Project of cooperation with IFCN
has particularly importance for all participants in dairy chain on Serbian
market.
Project partners in 2008:
• International farm comparison network – Dairy
• Department of agriculture, forestry and water management Republics of
Serbia
• ad "IMLEK"
• "Elopak" doo
• "Somboled" doo
• "Mlekara Subotica" ad
• The Faculty of Economics Subotica
Project partners in 2009:
• ad "IMLEK"
• "Elopak" doo
• Chamber of Economy of Vojvodina
• The Faculty of Economics Subotica
Project partners in 2010:
•
ad "IMLEK"
•
"Mlekara Subotica" ad
• The Faculty of Economics Subotica
Project partners in 2011:
•
ad "IMLEK"
•
"Mlekara Subotica" ad
• The Faculty of Economics Subotica
Project goals:
1. Improve transparency of dairy production in Serbia,
2. Achieve better understanding of market position participants in all
segments of dairy chain in Serbia and
3. Analyze of competitiveness of Serbian milk production in globalize
world.
Contact:
Rade Popovic
e-mail: popovicr@ef.uns.ac.rs
phone: +38124628064; +381638041301
:: Sustainability of dairy farming systems in central Serbia - RP - MK 2012 IEP (.pdf, 244 KB)
::
Data for benchmarking (table 1)
::
Cooperation The Faculty of Economics with IFCN (.ppt, 1,83 MB)
::
World milk market trends and effects on serbian market (.ppt,
1,32 MB) (.pdf,
128 KB)
::
Competitiveness of Serbian dairy production
(.ppt, 1,58 MB)
::
Dairy chain analysis – The case of Serbian market (.pdf, 136 KB)
::
Photos from workshop - 03.12.2008
Department for agricultural
economics and agribusiness has conducted research through 2007, on 24 dairy
family farms in sample from lowland production regions West-Backa, North-Backa
and North-Banat. From presented data it could be easily noted the variety of
factors determine the milk production profitability. All other dairy farmers can
use data presented in economic dairy budget enterprise as base for benchmarking.
Important rule during benchmarking is that showed data are not goals, they
represent just average in branch, and farmers have to tend to be above presented
data of profit.
Table 1. Data for benchmarking
|
Revenue, costs and profit per cow in 2007 for lowland producing region in Serbia |
||||||
|
DATA FROM SAMPLED FARMS |
Farms from 5 to 9 cows |
Farms from 10 to 19 cows |
Farms from 20 to 29 cows |
Farms from 30 to 39 cows |
Farms from 40 to 49 cows |
Farms with 50 and more cows |
|
Farms number |
3 |
3 |
4 |
6 |
4 |
4 |
|
Average land used (ha) |
16 |
21 |
57 |
43 |
54 |
176 |
|
Own land (ha) |
9 |
7 |
27 |
24 |
29 |
35 |
|
Average cow number |
7 |
12 |
23 |
35 |
43 |
69 |
|
Average milk yield (l/cow/year) |
6.085 |
5.897 |
5.653 |
5.639 |
5.102 |
6.471 |
|
Labor productivity (kg milk per cow) |
15 |
18 |
24 |
32 |
39 |
64 |
|
1. REVENUE |
168.249 |
175.864 |
173.573 |
181.337 |
163.953 |
211.320 |
|
- Revenue from milk sales |
123.724 |
135.604 |
135.869 |
141.176 |
126.989 |
168.921 |
|
- Revenue from calf sales |
13.091 |
11.333 |
9.200 |
11.942 |
9.895 |
11.090 |
|
- Revenue from manure sales |
10.500 |
11.208 |
10.917 |
10.738 |
10.844 |
10.333 |
|
- Subsidies (milk premiums, sub. for first time calved cows, …) |
20.934 |
17.719 |
17.587 |
16.999 |
16.225 |
20.975 |
|
- Other revenues |
0 |
0 |
0 |
1.493 |
0 |
0 |
|
2. COSTS |
196.829 |
196.289 |
191.822 |
175.803 |
151.991 |
178.130 |
|
Variable costs |
102.319 |
109.508 |
118.556 |
105.914 |
93.612 |
107.649 |
|
- Concentrates |
35.786 |
40.013 |
49.207 |
47.544 |
46.937 |
52.860 |
|
- Bulk feeds* |
33.086 |
35.240 |
36.548 |
32.288 |
25.918 |
33.744 |
|
- Bedding |
4.032 |
9.855 |
9.571 |
5.801 |
5.304 |
3.166 |
|
- Water |
794 |
788 |
161 |
628 |
286 |
426 |
|
- Insemination |
3.600 |
3.506 |
3.047 |
2.584 |
1.742 |
3.313 |
|
- Veterinary service and medicines |
10.432 |
6.944 |
8.111 |
6.080 |
4.854 |
6.471 |
|
- Dairy sundries (disinfectants, detergents, ...) |
5.932 |
5.817 |
3.754 |
3.267 |
3.921 |
3.061 |
|
- Contract work (foot trimming, herd selection, manure spreading) |
5.356 |
3.812 |
4.333 |
4.305 |
1.630 |
1.135 |
|
- Interest on operative capital |
3.301 |
3.533 |
3.824 |
3.417 |
3.020 |
3.473 |
|
Fixed costs |
94.511 |
86.781 |
73.266 |
69.889 |
58.378 |
70.481 |
|
- Labor (family and paid) |
54.128 |
47.328 |
33.270 |
22.596 |
17.700 |
11.847 |
|
- Machinery and equipment (depreciation + maintenance) |
2.435 |
4.583 |
6.057 |
8.426 |
8.139 |
14.919 |
|
- Buildings (depreciation + maintenance) |
6.659 |
5.042 |
3.744 |
3.869 |
4.374 |
4.493 |
|
- Herd depreciation |
8.364 |
10.923 |
15.443 |
17.475 |
12.509 |
20.781 |
|
- Tax on land |
325 |
535 |
397 |
275 |
0 |
0 |
|
- Insurance (herd, …) |
0 |
0 |
0 |
2.217 |
0 |
0 |
|
- Overhead costs (labor, water, electricity, telephone, professional fees, insurance, bookkeeping, ...) |
9.174 |
7.077 |
3.871 |
4.734 |
4.133 |
4.688 |
|
- Interest on fixed capital |
13.425 |
11.292 |
10.483 |
12.514 |
11.522 |
13.752 |
|
3. PROFIT |
|
|
|
|
|
|
|
OCCUPIER'S INCOME = Economic profit + return to management + family labor cost + interest on fixed and operate capital |
40.011 |
37.476 |
25.058 |
36.712 |
38.929 |
57.421 |
|
NET INCOME = Economic profit + return to management + family labor cost |
21.815 |
21.132 |
9.598 |
19.757 |
23.617 |
38.101 |
|
ENTERPRENEURS PROFIT = Economic profit + return to management |
-28.580 |
-20.425 |
-18.249 |
5.534 |
11.963 |
33.189 |
|
* Rental value for farmer land is included in silage production costs |
||||||
Photos from workshop - 03.12.2008
