This work was carried out with the objective of both evaluating costs production structure as well as technical and economical effectiveness of milk production in Minas Gerais State. Data involving 574 commercial dairy farmers from all regions in the state were analysed during the agricultural years 1995/6 2001/2. Results show inadequate zootechnical levels, as well as low productivity of factors such as land, labor and animals. The economical profile analysis of the sector show that due to the low technical effectiveness of the activity the cost of the milk per liter was high, a quarter of dollar. These results show the need to modernize and professionalize the dairy farms administration. We also suggest the need for investments aimed at improving farming skills and worker productivity by providing technical and administrative training.
Milk; costs of production; technical and economical effectiveness
