Some Aspects for Raising of Economic Competitiveness of Dairy Farming

In Hungary the last decade the number of cattle stock practically has diminished 50% because of the unfavourable economic conditions. This fact and the nearing joining to EU reflect the important for developing dairy farming in the knew circumstances. Theoretically the over production is favourable for the profitability, because of the decreasing of the specific stable cost. Unfortunately, this way is closed for the Hungarian dairy farming because of the quota system. Raising of the milk quality is more possible and real way for raising of the economic competitiveness in the milk farming, especially in lower classes. In connection profit, price and cost it can be said, that the production cost of milk is lower at the private farms, but the milk price is higher at company farms every year. This means, that private farms are responsive to cost (more economical production, adaptation to environment, etc.), and the companies are responsive to price (higher milk quality, technical level, etc.). The two opposite tendencies result in higher income at private farms. The production cost, of course, depends on a lot of factors (labour, technology, keeping, etc.) but the feed cost plays decisive role. The feed cost variation is 2-3 times more than the average milk cost variation, so we can say, that environmentally adapted milk production throw the feed cost will play decisive role in milk economics. This fact especially will be true in the next quota system and guaranteed price! Purpose of the investigation was to examine some opportunities for raising of competitiveness of dairy farming