Economic evaluation of the milk production of cattle varieties

Buzás, Gyula – Szabó, Ferenc

Keywords: milk yield, milk fat, milk protein, milk processing, premiums

We looked at the costs of and incomes from milk production in the event of cattle varieties (Holstein Fries, Hungarian Piebald, Jersey) producing different quantities of milk with different fat and protein content. We also looked at the relationship between the premium paid for more concentrated milk and the cost savings achievable in the course of its processing. If was found that at the current prices, dairy farms only make some profit thanks to the governmental subsidies, regardless of the cattle variety the keep. The competitiveness of dairy cattle varieties is best compares on the basis of differences in their production value and feed cost, as the majority of other costs does not depend on the variety. In terms of milk production, the Hungarian Piebald variety cannot compete with the single-purpose dairy cattle varieties. There are no significant differences between the economic parameters of Holstein Fries, which produces more milk, and Jersey, which produces more concentrated milk: Jerseys require less but more costly feed. When milk is processed, the dairy industry can produce more butter and cheese from one unit of the more concentrated milk produced by Jersey cows, but the advantage of this variety is smaller when expressed in terms of product quantity per cow. In the course of turning the milk of Holstein Fries cows into butter and cheese, various valuable by-products are obtained. The premium paid by the dairy industry for the higher fat content is generally higher, while the premium paid for the protein content is generally lower than the cost savings achieved in the course of processing. Under the current circumstances, increasing the share of varieties producing more concentrated milk would not provide significant advantage in the domestic milk production market.

Full article