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2. INTRODUCTION
This study forms part of a rolling programme of Enterprise Cost Studies undertaken by the Scottish Government. The objective of the study is to identify the weighted average gross margin of the dairy enterprise in Scotland for the year ended 31 March 2007 and to provide an interpretation of the physical and economic factors contributing to the results.
Participants were dairy farms with more than 100 cows drawn from across Scotland. One participant averaged only 95 cows but this was due to an unforeseen decrease in the herd size. Participants were selected randomly from a database provided by the Scottish Government and telephoned to obtain their participation in the study.
League tables showing the performance of each participant relative to their peers were prepared. The league tables analyse the various factors contributing to gross margin performance and identify the key indicators associated with above and below average performance.
Fixed costs were collected from a sample of the participants to enable 10 net margins to be calculated.
Throughout the report, the methodology used has been in accordance with the Special Studies Manual produced by the Scottish Government.
50 participants took place in the study. Their distribution by region and herd size is shown in the table below: -
Table 2.1 - Table Showing the Herd Size and Regional Distribution
Region | Number of Farms by Region | Number of Farms with a Specified Herd Size |
|---|
100-149 | 150-199 | 200-249 | 250-299 | 300-349 | 350+ |
|---|
South West | 35 | 7 | 13 | 7 | 5 | 0 | 3 |
|---|
North East | 4 | 2 | 0 | 2 | 0 | 0 | 0 |
|---|
South East | 11 | 4 | 2 | 3 | 0 | 1 | 1 |
|---|
Total | 50 | 13 | 15 | 12 | 5 | 1 | 4 |
|---|
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