ChileanJAR

Different studies reveal that herd size, cow productivity and feeding system are factors that have an important role in dairy profitability. However, the studies do not always agree about the impact of each of these factors on the economic results. The aim of this study was to analyze the cash flow per hectare of dairy farms of the south central region of Chile and to identify the variables that explain economic results using regression analysis. The study uses a sample of dairy farms involved in the Producer Development Program of the local milk industry located in Bio Bio Region. The results show that an increase of 1000 liters per hectare in productivity leads to an increase of $ 20 ,140 in the cash flow per hectare. In the same way, a reduction of $ 1 in labor and indirect costs per liter milk results in an increase of $ 5 ,830 and $ 11 ,209 in cash flow ha^-1, respectively. These results allow the conclusion that efficiency in forage production and supplementary crops have a positive impact on economic results. On the other hand, management of labor and indirect costs are essential for good economic performance.