Effects of Agricultural Subsidy Applications on Productivity and Product Costs in Dairy Cattle Enterprises: A Case Study of Hatay Province-Turkey

Year 2017, Volume: 14 Issue: 2, 0 - 0, 16.05.2017

Arif Semerci , Ahmet Duran Çelik

Abstract

Agricultural subsidy is one of the important and substantial issues at this time. Countries are continuing to subsidise agricultural production at varying rates depending on the world’s changing trade rules. Turkey reserved 3,9 billion $ to subsidise agricultural production in 2014. In the same year, the amount of agricultural subsidy in Hatay was around 75 million $. The share of the Hatay province in Turkey’s total agricultural subsidy is around 2%. While the amount of subsidy per farmer is 1.779,924$ in Turkey, it is 3.490,01$ in the Hatay province. Livestock is one of the important agricultural production sectors, and the share of agricultural subsidy for livestock is gradually increasing in Turkey. In this study, the utilisation level of subsidies in dairy cattle enterprises were examined in Hatay. It was found that 52,17% of the enterprises were growing feed crop, and 25,53% of them were utilising the feed crop subsidy. Milk production of the enterprises which were utilising the subsidy was 5.728,9 lt, the milk cost was 0,38$/lt, and the absolute profit was found as 0,03$/lt. In terms of enterprises which weren’t utilising the subsidy, these values were found respectively as; 5.334,4 lt, 0,44$/lt, and 0,09$/lt. According to the research results, it’s been concluded that livestock subsidies are decreasing production costs and increasing farmers’ income significantly.

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