2012
DOI: 10.17221/181/2011-agricecon
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Profitability of dairy and suckler cows breeding on Czech farms

Abstract: Th e EU Common Agricultural Policy enables to provide coupled payments for cattle breeding. Th e article compares the profi tability in dairy cows and suckler cows breeding under the Czech agricultural policy and market conditions. It is approved that particularly very large farms with an extensive suckler cows breeding on permanent grassland are oversupported and realize rents. Based on the analytical results, suggestions to distribute the supports more eff ectively and fairly, particularly those under the Co… Show more

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Cited by 12 publications
(12 citation statements)
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“…However, the profitability change was less volatile in the mixed farms. A significant change in profitability was recognized in the year 2008 for both types of farms, but for the mixed farms the most significant negative probability change was in the year 2009, similarly to Doucha et al (2012). This was due in particular to an output price decrease connected with crises in the EU commodity market (see the price output component in Figures 1 and 2).…”
Section: Resultsmentioning
confidence: 92%
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“…However, the profitability change was less volatile in the mixed farms. A significant change in profitability was recognized in the year 2008 for both types of farms, but for the mixed farms the most significant negative probability change was in the year 2009, similarly to Doucha et al (2012). This was due in particular to an output price decrease connected with crises in the EU commodity market (see the price output component in Figures 1 and 2).…”
Section: Resultsmentioning
confidence: 92%
“…Besides these subsidies, dairy farms are also supported by the Single Area Payment Scheme and gain advantages in the investment support. Doucha et al (2012) added that the profitability of milk production would be negative without these subsidies. On the other hand, under the suppositions, the total profitability of milk production can be relatively high (about 10%).…”
mentioning
confidence: 99%
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“…The average of all area supports per hectare of grasslands reached 15 thousand CZK (approximately € 600) in 2011. In spite of terrible unprofitability of the extensive beef production, such a support is perceived to be inadequate, generating excessive profits particularly on large extensive farms (Doucha et al 2012a). …”
Section: Introductionmentioning
confidence: 99%
“…Payment support is also an important element inasmuch as the suckler cow herds are mostly unprofitable and unsustainable over the long term without subsidies (Wolfová et al 2004;Jones 2007;Boudný and Janotová 2012). Support for the suckler cows at the time of the data analysis included mainly the following payments (Doucha et al 2012 The objectives of this study were to assess the profitability of suckler cow herds in the CR based on the data acquired at the farm level and the subsequent model calculations, to determine the break-even points, and to evaluate the impact of various factors, including payment supports, on the overall profitability of the system. In addition, we investigated farmers' views of different factors influencing the economic performance of their operations.…”
mentioning
confidence: 99%