Investments in beef cattle farms

Tatiana Ivanova, Tsvetana Harizanova-Metodieva

Abstract: The aim of the study was to analyze the investment costs for the establishment of beef cattle
farms in Bulgaria. Questionnaire information was collected from 2 beef cattle farms in Bulgaria in
2018. The first farm raised 168 cows from the Limousin and Simmental breeds, and the second – 145
cows from the Aberdeen Angus breed. It was found that investments in buildings, land and breeding
animals occupied close in value percentages in both farms. Significant differences were observed in
the percentage values of agricultural machinery and vehicles and other fixed assets. With a similar
amount of investments per 1 cow from the main herd (5.4 thousand BGN in the first farm and 5.2
thousand BGN in the second, respectively), the return on investment from the sale of calves was negative
in the first farm (-4.2%) and positive in the second (9.5%). The main reason for these differences,
in our opinion, was due to the conditions in a farm level and the management of farms in general. In
the first farm the animals were in relatively poorer health, the mortality rate of calves was higher, the
nutrition was not balanced, the calves realized a lower live weight at a higher cost. In the second farm,
the animals were kept in better conditions and the feed was excellent, which contributed to better
health of the animals and higher live weight. The higher purchase price per 1 kg live weight of calves
was extremely important for the effectiveness of farms.

Keywords: beef cattle farms; cost; investments; revenues

Date published: 2021-10-27