In times of crisis, there are recurring questions regarding the economics of dairy farming and the search for new solutions for the given challenges. When it comes to milk production one of them is the choice of appropriate breed. The focus of this master thesis was a comparison of the economic indicators of production in the two most common breeds of dairy cows in Slovenia: Simmental and Holstein Friesian breeds. Using upgraded model calculations, we compared the achieved gross margins of dairy cows in different groups, on an annual level and per average animal in the herd. The following items were included in the performed calculation: Sold milk, sold calves, culled cows, variable costs of restocking the herd, the costs of feed, veterinary services, insurance and all tied capital. Groups of dairy cows were formed according to the representation of the breeds in the herd and herd milk yields. We tested the efficiency of breeds under different conditions. Using the applied approach, we found that the highest gross margin in 2016 was achieved by dairy cows of Simmental breed from the group of mixed breeds with the highest milk yield. A similar economic result was achieved under the same conditions of farming, at the 2016 milk producer price, if the Simmental cow gives 5,500 kg of milk annually and the Holstein Friesian between 7,500 kg and 8,000 kg. The Simmental breed increases the stability of income on an agricultural holding and is more competitive particularly in the period of low milk prices.
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