Influence of stock size on profitability of milk production

Many opinions of the effects of stock size on the profitability of agricult ural production and mainly of milk production occur in the special literatu re. Opinions reach from denying the advantages of farm or stock size up to statements of considerably positive effects of size structure. Frequently considerable size advantages are substantiated on the basis of c alculations made under idealized conditions. Actual results demonstrating t he effect of different stock sizes are only limited and refer mostly to sit uations in the United States and may, therefore, not be applied without res erve to our conditions. Actual results obtained in the free State of Saxe show only little differen ces in the economic result due to stock sizes in milk production. If one regards the accounting results there seems to be an advantage in fav our of larger enterprises. However, this advantage is due mainly to the sma ller allowances for depreciation which are first of all the result of the h istorical development of the enterprises and which, therefore, are only to a limited extent attributable to stock size. Analyses of farm-collected data of milk production in Saxe show only little advantages in favour of large milk production units. The advantages centre on fixed charges and here mainly on personnel expenses and depreciation. - On the basis of the actual results obtained in Saxe, great advantages of la rger stocks, as shown in the special literature, cannot be confirmed. The r esults illustrate that management practice of the individual farm exerts a greater influence on the operating result than stock size. - The agrarian policy's task must be the safeguarding of developmental opport unities for all forms of law and all farm and stock sizes. These prerequisi tes only will bring about structural changes enabling reasonable and durabl e farm and stock sizes as well as types of farming to be developed to face the international competition.