Economics of Milk Production and Processing

Dear Colleagues,

Globalization has become an important economic phenomenon in the economy of the early 21st century. Its main causes are the following: (1) technical progress, which facilitates communication and reduces transport costs, and (2) liberalization at the level of nation states in the flow of products, services, capital, and labor. The degree of interdependence of economic life is differentiated by the type of products produced or services provided. Although food products, due to their specificity, are less traded internationally, a significant increase has been observed in the last 30 years. Some countries have seen an increase in milk production and exports of dairy products, while others have been characterized by a certain stability or have abandoned dairy farming. There is no doubt that a very important determinant of change is the cost of milk production and processing, depending both on the entrepreneur’s skills and resources and on natural and administrative conditions. Increasingly, in some countries, administrative restrictions are being imposed on dairy farms in terms of production concentration and animal welfare, contributing to the rising costs of milk production. Are these measures justified in the face of a growing world population and increasing globalization processes?

Different macroeconomic conditions, culture, and traditions in milk consumption and production determine the organization of the dairy sector and, within it, dairy farms in different countries of the world. What all farmers have in common is the desire to make money from their milk production. Do they succeed? What are the main determinants of milk production efficiency? How are dairy farms and processing plants organized? How do various environmental and animal welfare regulations affect the economic efficiency of milk production? What measures are taken by farmers and dairies to reduce production costs? Attempting to answer these questions can broaden our understanding of the dairy sector’s economic strength in different regions of the world. I invite you to share your research findings in this Special Issue on the “Economics of Milk Production and Processing”.

This Special Issue aims to provide an overview of the economics of milk production in different regions, covering the following main topics of interest:

• Changes in the profitability of dairy farms;
• Determinants of milk production profitability in farms;
• The impact of increased animal welfare and environmental requirements on milk production costs;
• The organization of cooperation between farmers and dairies;
• Short dairy supply chains;
• The economics of milk processing;
• The impact of global conditions on the economics of milk production in selected countries.

Prof. Dr. Andrzej Parzonko
Guest Editor

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• profitability of dairy farms
• determinants of milk production efficiency
• energy cost of milk production
• economic competitiveness of dairy farms
• impact of milk production scale on the economic performance of dairy farms
• short supply chains
• organization of milk processing
• economic strength of dairies
• environmental constraints in milk production
• impact of agricultural policy on dairy development
• determinants of the consumption of milk and dairy products