Effect of workforce diversity on the cost-effectiveness of milk production systems participating in the “full bucket” program

Abstract

This study aimed to analyze the effect of each workforce type on the cost-effectiveness of 20 dairy farms participating in the “Full Bucket” program, from January to December 2011, in the State of Rio de Janeiro. A stepwise multiple linear regression was used to identify the production cost components that most affected net margin, profitability, and cost-effectiveness. Workforce type influenced both profitability and cost-effectiveness, as well as total production cost. Economic analysis showed that farms with a hired workforce had the lowest total unit costs and a positive result. This way, the activity is able to produce in the long term and farmers are capitalizing. The farms that adopted mixed and family workforce had a positive net margin and a negative result, obtaining conditions to produce in the medium term. The highest representativeness on the items of effective operating cost in the family workforce stratum, in a descending order, were food, miscellaneous expenses, and energy. The most representative items in the mixed and hired workforce strata were food, workforce, and miscellaneous expenses.