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Economical evaluation of industrial milk production units in Khuzestan province

Mohammad Aghapour Sabbaghi

This study, because of the importance of milk production in Khuzestan province, was aimed at evaluating the economical situation of milk production in this region`s industrial units. Using the information of the census 2012, 33 industrial units were studied. Cost function approach was used to evaluate these units` economical situation. Results indicate a too large difference between the industrial units in terms of rate of cost, production, and per capita income. In addition, evaluations indicate that the province`s milk production industry has an increasing returns to scale, so it is suggested that, by adopting policies, managers of these units increase their production so that they can achieve suitable economic profit in this industry.