Investigating Determinants of Adopting Diversified Activities by Dairy Farmers in Shiraz and Marvdasht: A Choice Modelling Approach

Document Type : Research Article

Authors

M. Jafarnia

M. Bakhshoodeh

Department of Agricultural Economics, Agriculture Faculty, Shiraz University

https://doi.org/10.22067/jead2.v1389i3.7733

Abstract

Abstract
The industrial dairy farms in Iran are facing several economic problems and about six percent of these farms were shut down in Fars province due to low profitability. Despite such problems and availability of other enterprises in the region, farmers do not switch to other farm activities. In this context, the factors affecting acceptance of diversification options were investigated in this study applying a choice modelling, data collected randomly from a sample of 100 dairy farms in Shiraz and Marvdasht. The results indicate that profit maximizing and production risk are key elements in acceptance of diversification options. Based on the findings, only a few farmers choose these options, revealing that dairy industry is still the preferred activity, hoping that market conditions will improve.

Keywords

Dairy Cattle

Diversification

Choice Modelling

Shiraz

Marvdasht

20.1001.1.20084722.1389.24.3.10.7

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