EFFICIENCY OF DAIRY AND BEEF CATTLE FARMS DIFFERING IN LAND AREA SIZE

Abstract

The increasing size of farms, specialisation and growing scale of production are the primary factors in the improvement of resource utilisation in agriculture. In this context, the aim of this study is to assess and compare the efficiency of resource management in farms differing in land area size and specialising in the production of milk and cattle for slaughter. This assessment was based on data from farms participating in the FADN agricultural accountancy system in 2019. The efficiency of utilised factors of production in the researched farms was evaluated based on indexes of productivity and profitability of land, labour and capital. In dairy farms, the productivity of land was considerably higher and was growing with an increase in their size, whereas in beef cattle type farms it generally deteriorated. Productivity of labour and capital was also much greater and was growing faster in dairy farms. The highest profitability of land was recorded for medium-sized farms of both production types, while the profitability of labour and capital was highest in the largest farms. It needs to be stressed that the income and economic efficiency of farms specialising in the production of cattle for slaughter are determined by financial support within the EU Common Agricultural Policy.