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Analysis and Measurement of Dairy Cattle Management—Los Angeles County, California

Department of Animal Sciences, Purdue University, Lafayette, Indiana

S. F. Liu and E. R. Swanson

Department of Agricultural Economics, University of Illinois, Urbana

ABSTRACT

A production function was estimated for large commercial dairies in Los Angeles County from 1956 to 1960. Six classes of resources were considered as independent variables: number of cows, total labor, operating cost, nonanimal capital, hay-equivalent, and concentrates. Based on the differences between marginal value productivity and cost during the five-year period, there is virtually no evidence of unprofitable use of resources for the dairymen as a group. Residuals from the production function analysis were used to rank dairymen on a within-year and on an over-all basis. A statistical test indicated a pattern of consistent performance by individual dairymen during the period. A rank correlation test showed a significant relationship (P > .01) between this procedure and ranking on a per cent return on capital investment. After adjusting for the over-all size of the dairy operation, of seven management factors, milk production per cow emerges as the most important factor significantly influencing economic performance (all five years). Conformance to the feeding standard had a significant influence on economic performance in two of the five years analyzed. The prices paid for hay, concentrates, and cows; percentage of dry cows; and culling percentage showed no significant influence.