Factors Affecting Raw Milk Production Cost of Farmers in Sakon Nakhon Province

Abstract

The purposes of this research were to study general information of dairy farmers, dairy farming conditions, cost and returns of milk production, and the factors affecting the cost of milk production in Sakon Nakhon Province. The data of 110 households was collected in 2016. Descriptive statistics was used to analyze the data, and binary logistic regression was used to determine the factors affecting raw milk production cost. The results showed that most of the farmers were male at the age of 49 years old on average and received primary education. The farmers had 16-year experience in dairy farming. The study also indicated that the famers had the average area of 5.01 rai for dairy farming per household with the labor force of 2 persons. Thai Friesian breeders were popular among the farmers. The calculated main cost of dairy farming was the feed at 48.46% of the total cost. The average economic cost of raw milk was
20.28 baht per kilogram. The average accounting cost was 12.56 baht per kilogram. The raw milk price was 17.92 baht per kilogram. Therefore, the economic profit and accounting profit were -2.95 and 5.36 baht per kilogram respectively. The analysis revealed the factors affecting raw milk production cost of the farmers in Sakon Nakhon Province including: 1) Farm size (P<0.01) - the medium-size farms had more chance to have lower cost than average the group 26.74 times when compared to the small-size farms; 2) education (P<0.05) - the famers which higher education than primary level had more chance to have ower cost than average the group 2.87 times compared the others; and 3) Labor (P<0.01)- with an addition
of one worker chance to have lower cost than average the group decrease 0.43 times