Abstract
Buffalo breeding are one of the important agricultural activities of economic yield farms and breeding Buffalo in traditional farms mainly for milk in the area of Badush (study area) where the buffalo products are of great interest to citizens and represent a special place in the economic structure The research aims to analyze the economics of production and costs of these farms in the sample of the study (58) farm for the productive season 2013, which accounted about 50% of the research community in Nineveh province through the estimation of production and costs of the application of principles of selection in using of elements of production and to show the impact of these elements and contribute to help farmers in using their resources with a degree of efficiency and making productive decisions based on the economic derivatives of these functions to determine the optimal production and most of the profits. Results of the estimation showed that the double logarithmic formula is the best formula for the representation of production function and that the function and all the explanatory variables are statistically significant except for green feed and veterinary services.The most significant effect of the employment variable was on the production process، with elasticity of 0.277 and positive indication، and the results of the cost function estimate the best formulas to represent the relationship. The total cost house and total milk production is the spring formula. The optimum production volume was 10.77 kg / dayو (1266) dinars / kg, while the maximum production volume of the profits (15.99) kg / day per animal and the average cost (988) dinars / kg، and in the light of the previous results recommend the need to work at the maximum level of profit at the farm when the potential for expansion exist especially the physical and the administrative
