VI. Profile of Survey Sample

6.1 Profile of Dairy Survey Sample

The dairy sample was taken based on the predominance of Minas Gerais as the main producing state, although production conditions are similar to other regions. See Table 6.1 Rio Grande do Sul has a dairy production characterized by small-scale farmers, thus deserving a special attention given the objectives of this study. Goias is state with the particular characteristic of having milk production based on mixed - milk and beef - herds In others states, the sampling procedure was based on the relative share.

Table 6.1 Numbers of sample dairy farms per states

Source: Cepea/FAO

Table 6.2 shows that small-scale dairy farmers predominate in Rio Grande do Sul and Santa Catarina. Goias and Minas Gerais present the largest share of large-scale farmers.

Table 6.2 Percent Distribution of sample dairy farms according to herd size

Source: Cepea/FAO

Farmers from Rio Grande do Sul and Santa Catarina present a high use of family labor; that is, theses are mainly family farms. See Table 6.3. The family lives in the farm although some members may work off farm. Farms tend to be close to urban centers and roads and telephone are in general available.

Center western farms still are based on mixed cattle. The milk activity is more intense during rain season, being complementary to the beef activity. In this region more cows have to be milked to obtain the same milk production as the southern farms. Hired labor tends to be used in the milk producing season.

Table 6.3 Percent Distribution of hired and family labor according to dairy farm herd size

Source: Cepea/FAO

The mostly used dairy productivity measure in Brazil is the daily production per cow. The field survey (see Table 6.4) confirms the technical hypothesis that productivity of small-scale farmers in the south is higher than that of large -scale farmers of the Center West and Southeast. Data on share of milking cows also confirm the hypothesis of a more specialized herd in the south.

Table 6.5 indicates the use of feed according to the size of the farms. Feed is used in small-scale farms of the south, but not in the center west. This is related to the weather conditions. Of course the expenditure with pasture maintenance and formation dominates in every case.

Table 6.4 Technical coefficients according to dairy farm herd sizes

Source: Cepea/FAO

Table 6.5 Total feeding expenses (R$/year) according to dairy farm herd size

Source: Cepea/FAO
* Maintenance and formation

Table 6.6 also indicates a higher use of medicines, electricity and machinery in small-scale farms of the south and by large-scale producers of the center west.

Table 6.6 Other expenses in dairy farms (R$/year)

Source: Cepea/FAO
* Machinery, equipments and infrastructure facilities

As Table 6.7 indicates farm areas are larger in the center west. Dairy is an important alternative for small farmers in the south. The alternative of producing grains in small farms is certainly less competitive than the production in large-scale farms in the center west.

In the center west and southeast farmers used mixed herds to produce both milk and beef. This is why larger pasture areas are observed in these regions.

Table 6.7 Land use according dairy farm herd size

Source: Cepea/FAO

Table 6.8 shows the distribution of farm land dedicated to crops. It is worth mentioning that the soy area may have had increased this year due the exceptional market conditions, occupying land used before for corn and pasture.

Table 6.8 Management systems in dairy farms

Source: Cepea/FAO

Table 6.9 indicates that in general there is no apparent relationship between farm scale and distance to urban areas.

Table 6.10 indicates in general milk farms in general are not managed by the owner, but rather mainly by another family member. Except in Rio Grande do Sul, the dominance of this second system is overwhelming.

Table 6.9 Distance form dairy farm to main regional city according to herd size

Source: Cepea/FAO

Table 6.10 Management systems in dairy farms

Source: Cepea/FAO

Table 6.11 shows that the owner's experience in the milk business is more than 10 years for the majority of dairy farmers. The schooling level between 6 and 12 years is above the national mean of 4.5 years. It is worth noticing that in Rio Grande do Sul opportunities for attending courses are larger or better used than elsewhere.

Southern farmers live in the farm while center western farmers tend to live in urban areas. See Table 6.12.This pattern is associated with the fact that in the south family labor dominates in dairy activities while hired labor is more employed in the center west. It is also known that in the south the owner is himself more fully involved in farm activities, while in the center west the owner - particularly the better educated- is frequently dedicating part of his time to off farm business.

Table 6.11 Dairy farm owner's data

Source: Cepea/FAO

Table 6.12 Dairy farm owner's family data

Source: Cepea/FAO

Environment mitigation costs - particularly manure cleaning and storing - are more important in Rio Grande do Sul as far as small-scale farms are concerned. See Table 6.13. These are not important cost items, however.

Table 6.13 Form of mitigation of environmental problems in dairy farms

Source: Cepea/FAO
* The remaining is incinerated

Dairy Survey Map (79 municipios in 6 states)