Abstract
The dairy cattle breeding industry makes a large contribution to food balance of the republic, provides industry with raw materials, and the population - with biologically valuable food products. Increasing efficiency of milk production is becoming a major task for both large and small dairy agri farms. A successful solution to this problem will increase production indicators, reduce cost of production and increase its competitiveness in the Kazakhstan dairy market. The purpose of the study is to analyze the key criteria that determine profitability of milk production in peasant (farming) households of the Almaty region based on stochastic frontier approach (SFA) model. Methods - comparative analysis, generalization, statistical, SFA are used to consider general trends and patterns of development of small business entities. Results - using the SFA model, the relationship between costs and volumes of obtained raw materials was studied. The authors identified main factors that have a significant impact on the performance, productivity of cattle and quality of dairy farms, reducing costs of herd maintenance, labor costs and equipment. It should be noted that there is low level of investment in production processes in modernization, high feed prices. Conclusions - in order to expand capabilities and strengthen the potential of dairy sector, it is necessary to optimize labor costs for breeding and grazing cattle by mastering modern feeding technologies and veterinary services, organize training of highly qualified personnel, invest in modern agricultural equipment, improve livestock genetics, breeding work, introduce zootechnical innovations, and apply modern farm management systems. A comprehensive solution to these problems will ensure sustainable development of dairy cattle breeding in the Almaty region and increase its contribution to the country's food security.