Economical analysis of dairy operations: The case of Savsat town of Artvin province

In this thesis, economic analysis was performed for dairy operations in Şavşat town of Artvin province, milk production costs were calculated and the factors influencing milk production were identified. Economic efficiency scores of dairy operations were also calculated with the aid of data envelopment analysis (DEA). Research data were gathered through the questionnaires made with 118 dairy operations selected through random sampling method. Present findings revealed that number of ovine units per operation was 33.37. Of average active capital of the operations, 61.27% was composed of operational capital and 38.73% was composed of land capital. Average net output was 334 166.16 TL, agricultural income was 361 010.78 TL, economic rentability was 39.44%, financial rentability was 39.50% and rentability factor was 67.94%. Of milk production costs, 57.76% was composed of variable costs. Production output of the milk produced by the operations was 194 229.42 TL. In investigated operations, production cost of 1-litermilk was calculated as 0.75 TL. According the data envelopment analysis, average efficiency of operations was identified as 14.00%. The Tobit analysis performed to put forth the relationships between DEA efficiency coefficients and socio-economic variables of the operations revealed that inefficiency increased with increasing herd sizes.