Effects of monetary support in the economic viability of dairy farms of S. Miguel

Abstract

Milk production in the Azores contributes with 30% of national production. With the end of milk quotas and Community support to the production, farmers face risks and uncertainties that influence their decisions on the quantity of milk to produce and respective price to practice.

Focusing on the economic performance of milk producers of São Miguel, this work aims to categorize the economic viability of their dairy farms after the elimination of all or part of the Community and regional subsidies, and incorporated the remuneration to family labor. The results indicate that only a small number of farms does not have economic and competitive viability and all of them are viable in financial terms.