Economic efficiency of suckler cow herds in the Czech Republic

Jan Syrucek, Jindrich Kvapilik, Ludek Barton, Mojmir Vacek and Ludek Stadnik
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Jan Syrucek: Department of Cattle Breeding, Institute of Animal Science, Prague, Czech Republic
Jindrich Kvapilik: Department of Cattle Breeding, Institute of Animal Science, Prague, Czech Republic
Ludek Barton: Department of Cattle Breeding, Institute of Animal Science, Prague, Czech Republic
Mojmir Vacek: Department of Animal Husbandry, Faculty of Agrobiology, Food and Natural Resources, Czech University of Life Sciences Prague, Prague, Czech Republic
Ludek Stadnik: Department of Animal Husbandry, Faculty of Agrobiology, Food and Natural Resources, Czech University of Life Sciences Prague, Prague, Czech Republic

Agricultural Economics, 2017, vol. 63, issue 1, 34-43

Abstract: The objective of the study was to assess the profitability of suckler cow herds located in different regions of the Czech Republic. Data on 2164 suckler cows were collected for 2013 from 20 beef farms using a questionnaire and the covered production, reproduction, and economic traits. Model calculations were used to determine the level of profitability with support payments either included (2.15%) or excluded (-45.5%). Break-even points defined as the points when the operation reaches zero profitability were estimated for the number of calves weaned and sold (81 calves/100 cows) and for the selling price of calves (54.6 CZK/kg). Fixed cost as a proportion of the total costs was reduced with the increasing herd size. Based on the results of a sensitivity analysis, the selling price for calves, the number of calves weaned the calving interval, and the amount of support payments were identified as the factors with the highest impact on the overall herd profitability.

Keywords: break-even point; costs; price; profitability; sensitivity analysis; suckler cows (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:caa:jnlage:v:63:y:2017:i:1:id:263-2015-agricecon

DOI: 10.17221/263/2015-AGRICECON

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