INFLUENCE OF FARM MILK PRICES ON PROFITABILITY AND LONG-TERM ASSETS EFFICIENCY

This paper analyses the development of milk prices and effectiveness of holdings included in particular production category of Farm Accountancy Data Network “411 Milk” and their relations. The influence of prices on profitability, elasticity of production, effectiveness of long-term assets and resulting cost changes are discussed in particular. Milk profitability was not significantly influenced by different prices in individual states, but variation of prices in time was more important. The production is supposed to grow with delay. Milk yield and number of cows per worker are main determinants of labour productivity growth in in-kind expression. The influence of prices on labour productivity in monetary expression among individual states is not as important as was supposed. Supported by the Ministry of Agriculture (Grant No. QG 60042).