The quality of milk and its marketing

A precondition of the realization of milk on the market is its high quality and this has become one of the basic prerequisites for profit and for the maintenance of the customer on the competitive market. An analysis has therefore been carried out of the economic indicators of the dynamics of milk yield, overall production and the quality indicators of milk, the bulk purchase and buying price of milk, during the years 1998 to 2004, including a survey of the costs, profits and the marketability of milk in the given years. During the year 2004, the purchase price of milk, including compensation payment, ranged around 8.00 crowns (CZK) per litre. However, the production costs of one litre of milk sold increased to 8.42 crowns causing lack of profitability. This was a result of speeding growth rate in expenditure over milk yield. The level of expenditure and profits of the milk production of agricultural enterprises is going to be comparable with average results attained in EU-15. Static level of milk production is characteristic for all countries operating with a milk quota regime. Individual reference quantities become a limiting factor for many producers. Based on EU data milk output is forecast to exceed national quota for 2005-06 in Czech and Poland.

Keywords: milk, milk yield, price, profitability