Acta Univ. Agric. Silvic. Mendelianae Brun. 2017, 65(2), 527-536 | DOI: 10.11118/actaun201765020527

Economic Efficiency of Bull Fattening Operations in the Czech Republic

Jan Syrůček1, Jindřich Kvapilík1, Luděk Bartoň1, Mojmír Vacek2, Luděk Stádník2
1 Department of Cattle Breeding, Institute of Animal Science, Přátelství 815, 10400 Prague 10 - Uhříněves, Czech Republic
2 Department of Animal Husbandry, Faculty of Agrobiology, Food and Natural Resources, Czech University of Life Sciences Prague, Kamýcká 129, 165 21 Prague 6 - Suchdol, Czech Republic

Fattened bulls are the main source of beef in the Czech Republic (CR) and in most other EU countries. Profitability of fattening operations is a fundamental prerequisite for increasing domestic beef production. The objective of this study was to assess the economic efficiency of bull fattening operations in CR during 2013 and 2014. Data from 17 operations were collected using a questionnaire. Major cost items were determined and the return on costs was calculated while either including or excluding support payments. In 2013, average total costs reached 24,038 CZK per bull and a 1,152 CZK loss was incurred. In 2014, total costs were similar as in 2013 but the loss was 3,238 CZK per bull as a result of a higher initial purchase price of bulls at the beginning of the fattening period. Break-even points, defined as those points at which the operation reaches zero profitability, were estimated for daily live weight gains (1,189 and 1,290 g/day in 2013 and 2014, respectively) and for selling prices of bulls (91.19 and 96.05 CZK/kg of carcass in 2013 and 2014, respectively). A sensitivity analysis revealed that the most influential parameters were purchase and selling prices and live weight gains of bulls.

Keywords: break-even point, bull fattening, costs, price, sensitivity analysis
Grants and funding:

This research was supported by project MZERO0714 from the Ministry of Agriculture of the Czech Republic, project NAZV QJ1510191 from the National Agency for Agricultural Research of the Czech Republic and by the Ministry of Education, Youth and Sports of the Czech Republic ("S" grant).

Prepublished online: April 30, 2017; Published: May 1, 2017  Show citation

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Syrůček, J., Kvapilík, J., Bartoň, L., Vacek, M., & Stádník, L. (2017). Economic Efficiency of Bull Fattening Operations in the Czech Republic. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 65(2), 527-536. doi: 10.11118/actaun201765020527
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