Financial Risk Analysis of Dairy Farms in Erzurum Province

The aim of this study is to determine the risk levels based on the performances of the dairy farms by creating the income and costs account tables including their current period data in Erzurum during 2013-2014. For this end, the primary data obtained from a survey conducted on 145 dairy farms in Oltu, Narman, Pasinler and ？at Districts were used for the main material of the study. The income and costs account tables for 2013-2014 production period of the dairy farms was created by taking into consideration these data, and then it were done financial risk analyses related to some operating and profitability rates associated with their management successes. The results of the study indicated that the dairy farms in Narman and Pasinler Districts in terms of their sustainable activities faced with lower economic risks, but pointed out a potential risk due to low capital turnover. However, the dairy farms in other districts faced with much greater risks as a result of the interaction between the operating and capital turnover. On the other hand, it was highlighted that the dairy farms in Narman District had an absolute advantage in view of the profitability ratios at the end of their activity, and that their successes were much higher than the others. All the dairy farms, therefore, could make it possible to perform a profitable and sustainable activity at the medium and long terms by increasing in their assets via their equities, especially net working capital