ABSTRACT
We identified which performance indicators determined the variation in profitability of 159 farms of the Triângulo Mineiro-Alto Paranaíba region of Minas Gerais. Profitability was measured by annual net income (RL), RL over assets value, and RL over gross income. The 119 farms with positive profitability produced more milk per labor and per cow, had a greater proportion of lactating cows in the herd, had concentrates cost as a greater proportion and labor cost as a smaller proportion of the production cost, and had smaller ratio of labor cost to concentrates cost than the 40 farms with negative profitability (P<0.01). Principal component analysis showed that the key determinants of profitability variation among farms were: The ratio of labor cost to concentrates cost, labor cost per liter of milk, milk yield per labor, milk yield per cow, and the proportion of lactating cows in the herd. Increased profitability was associated with more efficient labor usage, the result of larger investment in concentrates and greater yield per cow.
Keywords:
dairy farming; accounting; performance indicators; Brazil
