Analysis of revenues and production costs of dairy sheep farm

Abstract

The purpose of this study is to analyze the revenues and production costs of a dairy sheep farm to optimize the number of livestock.Statistical methods, comparative analysis are used.The results obtained show that the optimum number of sheep on the farm should be 500. The performed analysis about the activities of dairy Bulgarian Synthetic Dairy Population sheep farm, allowed concluding that: Over the three years of the analysed period, revenues from sales of milk had the greatest share in total revenues of the farm (45-52 %). In fact this confirmed the profile of the farm as dairy farm. The percentage of meat varied within a narrow range with lamb meat occupying the greatest share of meat revenues (26 -29 %). The participation of other types of meat in farm's revenues was minor. The share of wool as element of revenues was insignificant over the 3-yar period. Wool production was rather a concomitant production therefore serious revenues from wool are not expected as at the time of the study, there is no market demand for this product. Among variable costs, the feed costs proportion was the greatest (40 -44 %). Then followed labour, insurances and fuel costs. It should be mentioned that during the last year of the analysed period, costs for purchase of shearing machine and sharpening device are planned. Permanent costs did not change in 2016-2018. The share of depreciation costs from total costs was approximately 3 %.

Costs, income and economic efficiency of dairy sheep flocks

“…The main component were feed costs (28% of total costs), labour costs (18% of total costs) and other direct primary costs (13% of total costs). As a difference to the current study (feed costs found between 19 and 23%), higher proportion of feed costs (between 35 and 62%) were found by Tzouramani et al (2011), Milan et al (2014 and Pamukova and Momchilov (2017). Labour costs were about 20% in the majority of studies (social security fees and insurances considered within labour costs) mentioned above (an exception were labour costs equal to 28% in Greek organic sheep farms was reported by Tzouramani et al (2011) Incomes.…”

“…According to study of Michaličková et al (2014), lamb sales contributed to total income by 35%. Milk sales were the main component of income (0.85 vs. 0.15) in Spanish dairy sheep farms (Milán et al, 2014), whereas in Bulgaria a more balanced proportion (0.5 vs. 0.5) between milk and lamb sales was reported (Pamukova and Momchilov, 2017).…”