Capacity-profitability relationship of dairy operations: The case of Tokat province

The aim of the current study is to determine the relationship between capacity and profitability in dairy cattle activity in Tokat province. To reach this aim, 111 enterprises were included in the study in collecting the data obtained from the surveys. The average animal stock per farm in the enterprises examined was found as 41.22 animal units. The average barn capacity in the enterprises was 61.5 cows, and the capacity utilization rate was 43.6%. The utilization ratio of the income obtained from plant production in the enterprises was calculated as 58.50%. Among the income items of the enterprises, milk income (45.57%), inventory increase (21.72%) and animal sales revenues (16.95%) and feed costs purchased (34.43%), feed cost used from the enterprise (21.26%), and family labor provision (9.91) take an important place. The enterprises' average net profit was computed as -71 595.04 Turkish Liras and the gross profit as -15 167.54 Turkish Liras. Dairy cattle production activity is determined to be unprofitable, considering total expenses and variable expenses. It has been observed that the enterprises continue production by evaluating their fixed capital assets and family workforce. When the total and variable expenses related to milk cost are taken into account, it is concluded that the milk cost is above the milk sales price. Moreover, in the analysis made according to actual expenses, it was found that the milk cost fell below the milk sales price. Finally, according to the chi-square analysis, it was found that there is a significant relationship between the business capacities of the enterprises and some of their demographic features that are the educational status of the operators, the membership status of the associations, the change in animal assets in the last five years and the status of the family members to continue dairy cattle in the next years.