Comparison of economic Analysis of dairy farms supported and non- supported by IPARD program: a case study of Konya Province, Turkey

The aim of this study was to compare the economic analysis of dairy farms, supported and non-supported by The Instrument for Pre-Accession Assistance-Rural Development (IPARD) program in Konya where has an important place in milk production in Turkey. The primary data of the study were obtained from dairy farms supported and non-supported by the IPARD program by using a questionnaire filled during the face-to-face interviews. Full count method was used to determine the 50 dairy farms supported by IPARD Program (SDF) while Neyman allocation sampling method was used to determine the 100 dairy farms non-supported by IPARD program (NSDF). As a result of the study, the average gross production value (GPV) was found as $154,618.59 per farm in NSDF while it was found as $624,334.06 in SDF. The average GPV per Large Animal Unit (LAU) was $3,104.98 in NSDF while it was $3,909.29 in SDF. As expected, for both groups, most of the costs constituted from feed costs. In NSDF, 48.65% of the variable costs were concentrated feed and 42.09% was roughage in NSDF, while these rates were 46.40% and 38.51% in SDF, respectively. Total production costs in NSDF were $129,624.43 while it was $461,403.75 in SDF. Total production costs per large animal unit (LAU) were $2,603.06 in NSDF while it was $2,889.10 in SDF. The average unit milk cost was determined as 0.37 $ / Kg and average milk selling price was determined as 0.38 $ / Kg in NSDF. The average unit milk cost was determined as 0.33 $ / Kg and average milk selling price was determined as 0.40 $ / Kg in SDF. When milk support was taken into account, the cost of unit milk in NSDF falls to 0.32 $ / Kg and in SDF to 0.28 $ / Kg. The average gross profit value for NSDF was $719.45 per LAU, while it was $1,397.53 per LAU for SDF. When the average gross profit values per LAU were evaluated, it was seen that dairy farms supported by IPARD program were much more profitable.