The specific of the market for agricultural products imply the use of appropriate farm management methods. Their application in practice can facilitate farmers to make managerial decisions. In this respect, the gross margin method, which refers to the group of economic methods, can be useful. The method has been widely used in the UK since the early 1960s and has been popularized for the needs of agrarian management analysis and planning.
The purpose of this study is to evaluate the effectiveness of dairy cattle in a two-year period using the gross margin method.
The results of the analysis show that obtaining a higher price for production is a major factor leading to an increase in the gross margin. There are also large variations in the cost of an animal, which indicates that different approaches are used to provide the necessary resources. This, in turn, determines the importance of subsidies received to achieve a higher gross margin.