Effect of production scale on the economical results of milk production systems in Lavras (MG, Brasil) region, in years 2 004 and 2 005.

The profitability of the milk activity was studied in the region of Lavras, MG by analyzing the influence of the production scale on the milk production cost. It was identified the components with major influence on the final cost of the activity and calculated the breakeven point. Monthly data from 17 production systems representing in one of three production strata (small, average and large), were taken from January 2 004 to December 2 005. It was considered the gross margin, the net (profit or loss) as indicators of economical efficiency. The production scale influenced the total milk cost, and then, rentability and the profitability, as the production systems with medium scale being_ the ones that had the lowest total unitary costs. The production scale influenced the “weights’’ of the component items of the effective operational cost of milk activity, being these different in each of the three production strata. In the economical analysis, for having positive net margin and positive results, in the medium and large strata production, it’s concluded the milk activity has conditions to produce at long term, with a consequent capitalization of the farmers; while the small ones could just get back the expenses with the effective operational costs. (Pt).