Economic efficiency of suckler cow herds in the Czech Republic

Abstract

Th e objective of the study was to assess the profi tability of suckler cow herds located in diff erent 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 profi tability with support payments either included (2.15%) or excluded (−45.5%). Break-even points defi ned as the points when the operation reaches zero profi tability 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 identifi ed as the factors with the highest impact on the overall herd profi tability.

Understanding the decision‐making in small‐scale beef cattle herd management through a mathematical programming model

“…The common ratio used for the baseline calculation is 1–1.5 ha per cow (Kvapilík and Kohoutek, 2009; Syrůček et al., 2017a), and our study employed a baseline of 1.5 ha/cow, similar to Syrůček et al. (2017b).…”

“…Although Czech beef cattle farming without subsidies would not be profitable in current circumstances (Syr ůček et al, 2017a(Syr ůček et al, , 2017b, one must understand that the big market players conduct both primary production and beef processing; therefore, they constitute the demand for small farmers' products. These players know the value of production costs and volumes of subsidies; moreover, they maintain a much stronger market position than small individual farmers (Fousekis et al, 2016;Koláčková et al, 2017).…”

“…In terms of biological process length (breeding, fattening, and the consequent gap between the investment and revenue), livestock production focused on cattle and buffalo is more demanding in comparison with other types of livestock production (Mayberry et al., 2018). Moreover, meat production, which generates profit from capacity extension after breeding and fattening, is also characterized by very low profitability (Syrůček et al., 2017b). Similar situations can be observed in many other countries (Manevska‐Tasevska et al., 2014; Ekowati et al., 2018; Lopes et al., 2018), where the wholesale level of the production chain benefits from the weak market position of primary producers (Fousekis et al., 2016).…”