Economic Performance of Dairy Sheep Farms in Less-Favoured Areas of Greece: A Comparative Analysis Based on Flock Size and Farming System

Abstract

Dairy sheep farming is a significant agricultural sector in Mediterranean countries, providing income and employment opportunities in less-favoured areas (LFAs). The economic performance of dairy sheep farms is of significant interest to LFAs. However, relevant literature is scarce. The objectives here were to evaluate the economic performance of dairy sheep farms in LFAs of Greece and perform a comparative analysis based on flock size and farming system. In total, 19 and 26 dairy sheep farms for two production periods were used. Farm technical (flock size, production, grazing and nutritional management) and economic (income and variable costs) data were collected. The economic performance of farms was estimated using Happy Goats, a decision support tool for small ruminant farming. Estimated economic parameters were analysed by flock size (≤150 ewes vs. >150 ewes) and farming system (intensive/semi-intensive vs. semi-extensive). Results showed that 37% and 31% of farms were operating with losses in each production period, respectively. Based on nutritional management, ewes produced about 50 kg less milk per milking period. Smaller and semi-extensive farms had significantly (p < 0.05) lower incomes and variable costs. A significantly (p < 0.05) lower average gross margin was reported for smaller compared to larger farms. Results suggest a better economic perspective for larger flock sizes.