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Pr - Determinants Of Full Costs Of Dairy Production In Switzerland €“ A Comparison Of Two Disproportionate Joint Costs Allocations

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  • Hoop, Daniel
  • Zorn, Alexander
  • Lips, Markus
  • Gazzarin, Christian

Abstract

By means of a maximum entropy joint cost allocation model with farm-specific allocation factors that account for economies of scale, full costs of 198 milk producers in the Swiss plain region are calculated. The effect of farm-specific allocation factors is found to be small; nevertheless it contributes to a more precise joint cost allocation to the enterprises of a farm. Average milk costs are CHF 1.31/kg – twice as high as producer milk price – and differ substantially between farms. In a regression analysis, the herd size and the milk yield per cow turned out to be the major cost-cutting factors.

Suggested Citation

  • Hoop, Daniel & Zorn, Alexander & Lips, Markus & Gazzarin, Christian, 2015. "Pr - Determinants Of Full Costs Of Dairy Production In Switzerland €“ A Comparison Of Two Disproportionate Joint Costs Allocations," 20th Congress, Quebec, Canada, 2015 345755, International Farm Management Association.
    • Handle: RePEc:ags:ifma15:345755
    DOI: 10.22004/ag.econ.345755
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    Keywords

    Farm Management; Industrial Organization;

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