Overview

Agricultural economics plays a crucial role in optimizing the dairy industry, focusing on how resources are allocated to maximize productivity, reduce costs, and enhance food security while meeting the increasing demand for dairy products. This module explores the economic principles behind dairy farming, emphasizing the importance of efficient resource use and its impact on both farm profitability and broader economic development. Dairy economics is shaped by the allocation of resources such as land, labor, capital, and feed, all of which contribute to the production of milk and other dairy products. Understanding the economics of dairy farming helps farmers make informed decisions about production methods, pricing, and market access, ultimately driving growth in the sector. The module address factors of production, which include the land, labor, and capital required to run a dairy farm, and how they contribute to the production of dairy goods. Dairy businesses are tasked with efficiently utilizing these factors to produce milk while managing costs and maintaining a sustainable operation. Additionally, the module covers agricultural marketing, the process of moving dairy products from the farm to the consumer. Topics will include pricing strategies, supply chain management, and the role of dairy cooperatives, which help ensure that dairy products reach the market efficiently and profitably. By the end of this module, participants will gain a comprehensive understanding of how agricultural economics shapes the dairy industry, including key economic principles and practical strategies for improving farm management, pricing, and marketing in dairy farming.