Analysis of the Еconomic Efficiency in Sheep Breeding of the Ille-de-France

Maria Mihailova-Toneva

Abstract: The aim of the study is to evaluate indicators of economic efficiency of a flock of sheep of the Ille-de-France breed bred in the Experimental base of the Institute of Animal Science – Kostinbrod in three consecutive years within the framework of the Common Agricultural Policy 2014–2020. The economic purpose of the breed is for meat, wool and industrial crossbreeding. The sheep are raised on stable and pasture. The herd is under selection control. The data on the income received and the expenses incurred in raising the animals for the period were provided by the accounting department of the Institute. The economic efficiency of the sheep breeding activity is determined by the indicators of total revenues, production costs (variable and fixed), gross margin, gross margin rate, profit and rate of profitability, calculated on the basis of ewe per year. The following conclusions were drawn from the obtained results. The average total income with subsidies in the amount of BGN 264.44 is obtained from an ewe for the period, and the total income without subsidies is BGN 131.43. In the structure of the income received from realised production, lambs occupy 35% and the share of subsidies is 51%. The total production costs per ewe are BGN 319.34 on average for the period, including variable costs in the amount of BGN 188.04. In the structure of production costs, fed feed occupies 45% and labour costs are 35%. The average amount of concentrated fodder for an ewe is 178 kg per year with a price of BGN 0.37/kg. The obtained gross margin has an increasing tendency and in the third year it is BGN 104.39/ewe. The gross margin rate also increases and at the end of the period is 36.38%. Profit has a negative sign even with subsidies during the study period. The average rate of return is (-12.37%). This shows the strong dependence of the economic results in raising sheep of the Ille-de-France breed on the amount of subsidies received.

Keywords: gross margin; Ille-de-France; production costs; rate of profitability; revenues

Date published: 2023-02-27