Comparative Analysis of Main Economic Indicators of Cattle Breeding Farms of Different Classes
Konstantin Stankov
Abstract: A study was conducted on 90 dairy farms, divided into four groups: 8 small with 1-9 cows; 32 medium with 10 to 49 cows; 32 large with 50 to 99 cows and 18 large with over 100 cows.
The aim of the study is to establish the impact of the scale and size of the farm and the relationship between basic and additional income, fixed and variable costs.
The results of the study show that the scale and size of the farm has a significant impact on economic indicators, farms with a capacity of over 50 cows realize significantly better income, covering the costs incurred and make a satisfactory profit.
The prime cost for one production cycle varies in a fairly wide range of BGN 0.57 per 1 kg. milk for large ones up to BGN 0.73 for small farms at a purchase price of BGN 0.60. This is an indicator of low economic efficiency and is largely determined by the low purchase price of milk, as well as the fully realized genetic potential for high milk production.
The aim of the study is to establish the impact of the scale and size of the farm and the relationship between basic and additional income, fixed and variable costs.
The results of the study show that the scale and size of the farm has a significant impact on economic indicators, farms with a capacity of over 50 cows realize significantly better income, covering the costs incurred and make a satisfactory profit.
The prime cost for one production cycle varies in a fairly wide range of BGN 0.57 per 1 kg. milk for large ones up to BGN 0.73 for small farms at a purchase price of BGN 0.60. This is an indicator of low economic efficiency and is largely determined by the low purchase price of milk, as well as the fully realized genetic potential for high milk production.
Keywords: cost; costs; economic efficiency; profit; revenues
Date published: 2020-08-27
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