PROFITABILITY GAP IN THE MILK PRODUCTION CHAIN: EVIDENCE FROM SERBIA
The main goal of this paper is to compare proftability of large dairies (processors) versus large milk producers, i.e. farms with 100 or more cows, organized as companies. Proftability is measured by following indicators: return on assets and return on equity. Proftability gap analyzis shows that milk processors achieved signifcantly higher proftability compared to cow breeders. Furthermore research results suggest that the existence of differences in the level of proftability among the participants in the milk production primarily affects capital turnover, and then the proft margin.
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