Economic aspects of cattle fattening production in lowland region of the Republic of Serbia
2019
Miljatović, Aleksandar (https://orcid.org/0000-0002-3978-5832) | Vukoje, Veljko (https://orcid.org/0000-0002-0801-9043)
This paper examinees economic, production and organizational aspects of cattle fattening production. The aim of the paper is to determine and evaluate profitability level of cattle fattening production. This is being examined throw the determination of the justification of investment in raising a modern fattening farm in domestic conditions. The results of the survey indicate that investment in rising a modern fattening farm is payable after 8 years and 350 days, which can be considered as an acceptable period of time for this kind of production. Internal rate of return is relatively high (13.25%) and it is much higher than average level of current interest rates. The cost prices of the cattle from own production (200.0 RSD/kg) is significantly lower than the cost price of the bull’s from import (218.9 RSD/kg). Sensitive analysis shows that the cattle from own production can sustain significant increase of material costs (up to 49%), i.e. decrease of market prices of final products (up to 32%).
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