The impact of sowing structure on profitability of family farms directed at the final production of fattened beef cattle
2010
Todorović, S., Faculty of Agriculture, Belgrade - Zemun (Serbia) | Filipović, N., Faculty of Agriculture, Belgrade - Zemun (Serbia) | Paunović, T., Faculty of Agriculture, Belgrade - Zemun (Serbia)
Small and inadequately used estates of family farms limit the capacities of cattle production because of limited forage production which is the basis of farm economic sustainability. Insufficient and inadequate use of soil resources leads to the decrease of their competitiveness which also results in the need of finding more rational ways of their organisation. Bearing that in mind, the decision on buying mercantile maize on the market instead of producing it on the farm is taken into consideration. As a consequence of the previous decision, the possibility of the change of sowing structure is raised. Applying partial budget analysis, it was examined whether the decision on buying mercantile maize on the market and changing the sowing structure was economically justified and under what conditions using additional procedure of sensitive analysis. Applying this approach, it was investigated to what extent that decision contributed to improving the profitability of family farm. The results of the conducted research show that buying mercantile maize on the market will enable changes in the sowing structure, that is, buying mercantile maize will make the area free, which according to some conservative estimations, can be used for production of sufficient amounts of alfalfa hay and silage maize for fattening of additional 19 head. In addition, it is shown that more rational way of organising family farms directed at the final production of fattened beef cattle can additionally use available resources and in that way increase profitability and improve competitiveness.
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