An evaluation of comparative advantage and stability of semi-industrial dairy farms in the Zanjan province

Despite the passage of more than half a century of introducing modern systems of dairy farms in the livestock sector, few economic studies have been done on these systems.
Due to the industrialization of dairy farming, study of the competitiveness and the stability of the Semi-industrial farms, as a link between traditional and industrialized farms, is essential. The objective of this study is to investigate the comparative advantage of the semiindustrial system.
In this study, after defining the representative semi-industrial farms in the Zanjan province, and collection of inputs and outputs price and quantity data, domestic resource cost, DRC, social costs-benefits, SCB, and net social profitability, NSP, was calculated and analyzed.
The results indicated that the province has a comparative advantage in semi-industrial dairy farms.
CONCLUSINS: Analysis showed that the high daily milk yield is the main reason for this advantage. So that even if milk per cow per day will be reduced to 18 kg, the system still has a comparative advantage. Also, even if the exchange rate falls to 9390 rials per dollar, the production still has a comparative advantage.