Influence of milk performance on the profitability of milk production

There are no doubts so far that the yield of milk per cow is the one of the most important factors for the profitability in the dairy sector. But is that also true for very high yields? To address this question, this article presents a set of calculations based on a broad data survey in Germany. As the main result we can see that there is no limit for enhancing the yield per cow from the economic point of view, so there is no other way for increasing profits even facing the quota system in the EU. Furthermore, the author shows that the opportunities of increasing the net benefit by lowering the fat rate are often overestimated taking into account the farm production limit set by the reference quantities.

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