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• Economic Analysis of a Good Quality Hungarian Dairy Farm with Leading Technology

  43-64

  Krisztián Kovács

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  The research includes an economic analysis of the dairy farm based on farm data, which makes it possible to assess the cost-income ratio and partial efficiency of each sector, assuming that it operates at a good production level, and in the case of assumed greenfield investments, economy based on dynamic indicators (NPV, IRR, PI, DPP). As many domestic dairy farms produce with the most advanced technology available, and their indicators do not lag far behind the best farms in Western Europe, the so-called analyses refer to “good production standards or practices”. The performed analysis is based on a deterministic simulation modelling created from a production plant’s primary data which uses its own database. Some of the research findings are supported by data and calculations, while others are based on expert estimates and expert opinions. Based on our investigations, it can be stated that the so-called most important specific natural, economic, and investment analysis indicators of the model plant following good production practice in the case of milk production are the following: Specific annual milk yield 11,000 kg/year; Production value: 1,548.5 thousand HUF/cow; Production cost: 1,312 thousand HUF/cow; Net income: 236.5 thousand HUF/cow; EBITDA: 404.6 thousand HUF/cow; Discounted payback period without investment subsidy: 11 year; Discounted payback period at 50% subsidy intensity: 6 years.
  
  JEL codes: Q12, Q13