PR - DETERMINANTS OF FULL COSTS OF DAIRY PRODUCTION IN SWITZERLAND – A COMPARISON OF TWO DISPROPORTIONATE JOINT COSTS ALLOCATIONS

Daniel Hoop, Alexander Zorn, Markus Lips and Christian Gazzarin

No 345755, 20th Congress, Quebec, Canada, 2015 from International Farm Management Association

Abstract: By means of a maximum entropy joint cost allocation model with farm-specific allocation factors that account for economies of scale, full costs of 198 milk producers in the Swiss plain region are calculated. The effect of farm-specific allocation factors is found to be small; nevertheless it contributes to a more precise joint cost allocation to the enterprises of a farm. Average milk costs are CHF 1.31/kg – twice as high as producer milk price – and differ substantially between farms. In a regression analysis, the herd size and the milk yield per cow turned out to be the major cost-cutting factors.

Keywords: Farm Management; Industrial Organization (search for similar items in EconPapers)
Pages: 8
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ifma15:345755

DOI: 10.22004/ag.econ.345755

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