2Original scientific paper Economics of Agriculture 2/2016
UDC: 631.11:636.4
OPERATING COSTS OF AGRICULTURAL HOLDINGS WITH EQUAL PRODUCTION POSSIBILITIES
Ivan Micic1, Dragana Urosevic2, Radosav Vujic3, Ivana Micic4, Marko Micic5,
Marija Micic6
Abstract
Research subject is the analysis of state and basic problems in farm production ofpork, as well as economic analysis of fattening pigs. Research included specific case studies on a family farm, pig farm in Gracanica, found in central Kosovo and Metohija and a cooperative farm, a pig farm in Zitorada located in Toplica district. During a time period in 2012, the volume and applied technology ofproducing fattened pigs was monitored on both farms and given economic results were analyzed. In the observed period it was determined that the number offattened livestock on the private farm was 40, while on the cooperative farm it was 30,000. Produced fattened pig on the private farm costs 87 € and pork meat side is 1.16 €/kg. The price of a fattened pig on a cooperative farm is 142 € and pork meat side is 1.94 €/kg. Average weight of a fattened pig on both farms is 100 kg, while the share of pork meat sides varies from 78% - 79%.
Key words: Production of fattened ^pigs, pork meat - pork sides, price, quality, economic results.
JEL: Q12, Q13
1 Ivan Micic M.A., PhD student, University in Belgrade, Faculty of Agriculture, Nemanjina street no. 6, 11080 Zemun, Srbija, Phone: +381 11 261 53 15, E-mail: divanlav@gmail.com
2 DraganaUrosevic M.A., University in Belgrade, Faculty of Agriculture, Nemanjina street no. 6, 11080 Zemun, Srbija, Phone: +381 63 881 49 35, E-mail: dragana.urosevic91@yahoo.com
3 Radosav Vujic, P.hD., Agricultural expert and extension service Valjevo, Bircaninova street no. 128A, 14000 Valjevo, E-mail: pssvaljevo@mts.rs
4 IvanaMiciC, M.A, PhD student, Facultyof Economics, University of Nis, Trgkralja Aleksandra Ujedinitelja 11 Nis,Srbija, Phone: +381 63 233 603, E-mail: ivancica@gmail.com
5 Marko Micic, Dipl. ecc., Facultyof Economics, University of Nis, Trgkralja Aleksandra Ujedinitelja 11 Nis,Srbija, Phone: +381 63 680 040, E-mail: markomicic89@gmail.com
6 MarijaMicic, M.A, PhD student, Faculty of Technology in Leskovac, University of Nis, BulevarOslobodenja 124 Leskovac, Serbia, Phone: +381 62 867 45 98, E-mail: marija84micic@gmail.com
Introduction
Production of pork meatis one of activities in agriculture which secures a source of income to all participants in the production chain, conducted in several technological, mutually organization-dependent phases (from care, breeding and feeding of sows and gilts, farrowing, upbringing of piglets and fattening, through feeding, etc.). Regardless of what the natural indicators in intensive, market oriented production of pigs are, it is very difficult to provide a detailed insight into the production cost of fattened pigs, which represents the research basis of the paper and proof that the pig production process is cost effective. Tesanovic (1969) determines that with an increase in the number of piglets per sow from 10 to 20, the production cost per piglet reduced by 79.09%, while cost per sow increased by 11.67% per annum. Increase in the genetic basis of pigs represents a necessary precondition for the achievement of greater intensity in this branch of livestock production. So Vidovic et al. (2012) report that the annual genetic progress for average daily growth was 8-11 gr, food conversion from 0.03 - 0.05 kg as well as 0.35 - 1.00% for the content of meat in sides. Based on previous research and results in practice there is opinion that better results can be expected in due time as follows: 30 fattened pigs per sow per year, conversion of food bellow 2 kg, less than 120 days of life to reach 100 kg of body weight, daily gain of live weight of about 2 kg. Rahelic (1984) states that the characteristic of breeds of pigs as well as individual characteristics of livestock to achieve greater daily weight gain, greater amount of meat and better carcass yield in same growing conditions are of great significance to successful and cost-effective pork meat production. By better use of these properties the fattening period is reduced and at the same time total production is increased. Zivkovic, Perunovic, (2012) state that pork meat production in Serbia is characterized by the increasing participation of large farms (10,000 to 30,000, and more fattened pigs per year), and quality of pigs has significantly increased, especially on farms, and it can be said it is approaching the European average. Pork meat production is carried out by determining production cost of 1 kg, produced pork meat sides in first and second phase. Research of the economic parameters of producing fattened pigs deals with costs in the first phase of the production process and determining total cost of producing pork meat sides in the second phase, by the division calculation method. Tomovic et al. (2005) state that there is a possibility of using the two point method for grading pork meat sides in slaughterhouses whose weekly capacity is less that 200 pigs. Orovic et al. (2015) analyze in their paper the business ofthree groups of 20 individual farms with different primary production, crop, fruit growing and livestock production. Necessary data for production of a basic model was collected by a survey on 60 agricultural holdings on the territory of Toplica. Research in the paper has the goal to provide wither application with the given results in relation to both farms. This allows for the given results to have common, rather than only local significance (Andric, 1998; Jovanovic et al., 1998).
Research goal
This paper represents data given by research results, both during research and procedure analysis. During research and proving, primarily a scientific method is used, whose basic application enables explanation and prediction of relations between individual relevant inputs, and results of achieved effects in production of pork meat. In accordance with the development strategy of producing pork meat, the research goal is to improve the quality of pork meat production which originate from noble pure breed, raised on farms A and B, by a large number of analyzed and realized economic parameters. The representation of the given results of plant production on farm A and pig production on both farms will be given. During preparation of this work, data from multiple sources was used. The data used were the production quantity, analysis of pig production and pork meat in long time period. The analysis of this data wouldn't be possible if it weren't approved by both farms and the data was processed by mathematical-statistical methods. This data source was especially important when determining average values, loss, food conversion etc.
Materials and methods
The research conducted included family agricultural holding on farm A in Gracanica whose owner is Bojan Jovanovic, address Kosovske Devojke 417 and a cooperative farm B, "1 Decembar" in Zitorada. Both farms have a closed production cycle that includes pig production fattening. Farm A produces 40 fattened pigs and farm B around 30,000 a year. Within farm A 2 persons and 4 minors are employed and in farm B 80 people with corresponding qualifications are employed. Costs of producing fattened pigs on both farms are based on natural indicators determined based on research done in 2012 and all variable categories of costs in accordance with the production process. Material costs relate to consumption of nutrients and medicine used in the production process. Amortization costs are covering 2012 based on norms of necessary space and equipment, we approach the investment estimate, estimate of amortization costs based on which the fixed costs categories are calculated (Segrt, Kolarski, 2015). When determining costs of producing costs we start from the price of a pig, weight of a pork meat side obtained by slaughter, variable costs of slaughter service and freezing. Results of plant production of farm A and fattened pig production on both farms relates to one year period (2012). In order to make a conclusion, the production parameters were monitored: grain on farm A and food consumption of farms A and B per 1 kg of growth, total growth and cost of food on both farms:
Total food consumption
food consumption per kilogram of growth =-
Total growth
Total growth = number of feeding days x growth per feeding day
Total revenue
production efficiency = ----------------------------
Total expenses
Gain
production profitability
■ h 100
Investment Gain
Profit rate (profitability)
■ h 100
Total revenue
Significance of results in production of fattened pigs and pork meatin 2012 was followed independently on farms A and B during one research year.
Starting from the previously pointed facts and characteristics of pork meat side production strategy, we analyzed on both farms:
- Plant production on 10 ha on farm A,
- Pork meat side production on farms A and B,
- Characteristics of pork meat side quality on both farms.
We analyzed in the paper:
1. Production of meatwith special emphasis on pork meat production on the province Kosovo and Metohija in Gracanica on a pig farm A of the owner Bojan Jovanovic, Kosovke Devojke street no. 417 and a cooperative farm B "1 Decembar" in Zitorada in Toplica county in Serbia.
2. Production efficiency of pork meaton farms A and B by using achieved economic indicators of production.
Next to theoretical explanation and application on general examples, we showed efficiency of optimal feeding on an example of feeding mixture for fattened pigs on farm A. Production costs of fattened pigs on both farms are based on naturally determined indicators. Calculation of fixed and variable costs was calculated on both farms in accordance with the production process. Also costs are related to consumption of nutrients and medicine which are used in the production process, as well as amortization of the livestock, existing space and equipment which is done based on norms.
Natural and financial indicators of agricultural production on the farm shown in 2012 were: corn (Tablel), triticale (Table2), wheat (Table3)and barley (Table4).
Research results and discussion
Table 1. Achieved economic indicators of corn production on 2 ha
No. Production year: 2012 Amount Unit of measure Price Unit of measure Amount of EUR on 2 ha
I Revenue
1. Corn from 2 ha 6.5 t/ha 130.00 EUR/t 1,690.00 EUR
2. Cornstalks from 2 ha 9 t/ha 17.98 EUR/t 323.70 EUR
A) Total revenue (1 to 2) for2 ha 2,013.70 EUR
3 Expenses
4. Seed for 2 ha 50 kg 1.50 EUR/kg 75.00 EUR
5. Fertilizer
6. Manure for2 ha 10 t 4.00 EUR/t 40.00 EUR
7. KAN (29%N) 400 kg 0.30 EUR/kg 120.00 EUR
8. Pesticides
9. Guardian 6 L 3.00 EUR/L 18.00 EUR
10. Tezis 6 L 2.50 EUR/L 15.00 EUR
11. Irrigation
12. Energy source for2 ha 15 L 1.40 EUR/L 42.00 EUR
13. Diesel fuel 60 L 1.40 EUR/L 84.00 EUR
14. Maintaining mechanics 2 ha 15.00 EUR/ha 30.00 EUR
15. Paid services
16. Plowing 2 ha EUR/ha 0 EUR
17. Land preparation 2 ha EUR/ha 0 EUR
18. Sowing 2 ha 35.00 EUR/ha 70.00 EUR
19. Harvest 2 ha 65.00 EUR/ha 130.00 EUR
20. Paid seasonal work force 40 working hours 1.50 EUR/ working hour 60.00 EUR
21. Other variable costs
B) Total costsfi to 21) 684.00 EUR
II GAIN/LOSS
22. Total without incentive ( A - B ) 1,329.70 EUR
23. Per ha without incentive(22 : 17) 664.85 EUR
24. Costs of grain in kg (22 : 1) 0.10 EUR
25. Production efficiency (A : B) 2.94
26. Revenue profitability (22:A)h100 66.03%
Source: Authors' calculation based on data from Micic, 2012
From Table 1 we can see that the average corn yield on the farm in 2012 was 6.5 t/ ha and in the observed period in 2912 moved in the span from 6.0 t/ha to 7.0 t/ha. Total realized profit on 2 ha is 1,329.70 €, production efficiency is 2.94 and revenue profitability is 66.03 %.
Table 2. Achieved economic indicators of triticale production on 3 ha
No. Production year: 2012. Amount Unit of measure Price Unit of measure Amount of EUR for 3 ha
I Revenue
1. Triticale for 3 ha 5.0 t/ha 150.00 EUR/t 2,250.00 EUR
2. Straw from 3 ha 5 t/ha 19.50 EUR/t 292.50 EUR
A) Total revenue (1 to 2) for 3 ha 2,542.50 EUR
3. Expenses
4. Seed for 3 ha 750 kg 0.20 EUR/kg 150 EUR
5. Fertilizer
6. Manure for 3 ha 15.0 t 4.00 EUR/t 60.00 EUR
7. Urea 600 kg 0.30 EUR/kg 180.00 EUR
8. Foliar fertilization 6 kg 3.00 EUR/kg 18.00 EUR
9. Pesticides
10. Meteor 30 g 0.15 EUR/L 4.50 EUR
11. Irrigation
12. Energy source for 3 ha 15 L 1.40 EUR/L 63.00 EUR
13. Diesel fuel 90 L 1.40 EUR/L 126.00 EUR
14. Maintenance of mechanization 3 ha 19.00 EUR/ha 57.00 EUR
15. Paid Services
16. Sowing 3 ha 30.50 EUR/ha 91.50 EUR
17. Harvest 3 ha 52.00 EUR/ha 156.00 EUR
18. Paid season work force 50 working hour 1.50 EUR/ working hour 75.00 EUR
19. Other variable costs
B) Total coststo 19) 981.00 EUR
II GAIN/LOSS
20. Total without incentive ( A - B ) 1,561.50 EUR
21. Per ha without incentive (20 : 17) 520.50 EUR
22. Cost of grain in kg (20 : 1) 0.10 EUR
23. Production efficiency (A : B) 2.59
24. Revenue profitability (20 : A) h 100 61.42%
Source: Authors' calculation based on data from Micic, 2012
From Table 2 we can see that the average yield from triticale is 5.0 t/ha on the examined farm A and that it ranged from 4.5 t/ha to 5.5 t/ha. Total realized gain on 3 ha is 1,561.50 EUR, profitability of revenue is 61.42 %.
Table 3. Achieved economic indicators of wheat production on 2 ha
No. Production year: 2012 Amount Unit of measure Price Unit of measure Amount of EUR for 2 ha
I Revenue
1. Wheat from 2 ha 5 t/ha 170.00 EUR/t 1,700.00 EUR
2. Straw from 2 ha 5 t/ha 16.90 EUR/t 169.00 EUR
A) Total revenue^! to 2)for 2 ha 1,869.00 EUR
3 Expenses
4. Seed for 2 ha 500 kg 0.20 EUR/kg 100.00 EUR
5. Fertilizer
6. Manure for 2 ha 10 t 4.00 EUR/ t 40.00 EUR
7. Urea 400 kg 0.30 EUR/kg 120.00 EUR
8. Foliar fertilization 4 kg 3.00 EUR/kg 12.00 EUR
9. Pesticides
10. Meteor 20 g 0.15 EUR/L 3.00 EUR
11. Irrigation
12. Energy source for 2 ha 15 L 1.40 EUR/L 42.00 EUR
13. Diesel fuel 60 L 1.40 EUR/L 84.00 EUR
14. Maintenance of mechanization 2 ha 19.00 EUR/ha 38.00 EUR
15. Paid services ha
16. Plowing 2 ha EUR/ha 0 EUR
17. Preparing the ground 2 ha EUR/ha 0 EUR
18. Sowing 2 ha 30.00 EUR/ha 60.00 EUR
19. Harvest 2 ha 55.00 EUR/ha 110.00 EUR
20. Paid season work force 30 working hours 1.50 EUR/ working hour 45.00 EUR
21. Other variable costs
B) Total costsfi to 21) 654.00 EUR
II GAIN/LOSS
22. Total without incentive ( A - B ) 1,215.00 EUR
23. Per ha without incentive(22 : 17) 607.50 EUR
24. Cost of grain kg (22: 1) 0.12 EUR
25. Production efficiency (A : B) 2.86
26. Revenue profitability (22 : A) h 100 65.00 %
Source: Authors' calculation based on data from Micic, 2012
From Table 3 we can see that the average yield of wheat is 5.0 t/ha on the examined farm and that it ranged from 4.5 t/ha to 5.5 t/ha. Total profit on 2 ha is 1,215.00 EUR and revenue profitability is 65.00 %.
Table 4. Achieved economic indicators of barley production on 3 ha
No. Production year: 2012 Amount Unit of measure Price Unit of Measure Amount of EUR for 3 ha
I Revenue
1. Barley from3 ha 4 t/ha 170.00 EUR/t 2,040.00 EUR
2. Straw from3 ha 5 t/ha 17.04 EUR/t 255.60 EUR
A) Total revenue(7 to 2) for 3 ha 2,295.60 EUR
3. Expenses
4. Seed for 3 ha 750 kg 0.20 EUR/kg 150.00 EUR
5. Fertilizer
6. Manure for 3 ha 15.0 t 4.00 EUR/t 60.00 EUR
7. Urea 600 kg 0.30 EUR/kg 180.00 EUR
8. Foliar fertilization 6 kg 3.00 EUR/kg 18.00 EUR
9. Pesticides
10. Meteor 30 g 0.15 EUR/L 4.50 EUR
11. Irrigation
12. Energy source for 3 ha 15 L 1.40 EUR/L 63.00 EUR
13. Diesel fuel 90 L 1.40 EUR/L 126.00 EUR
14. Maintenance of mechanization 3 ha 19.00 EUR/ha 57.00 EUR
15. Paid services
16. Plowing ha EUR/ha 0 EUR
17. Preparation of ground 3 ha EUR/ha 0 EUR
18. Sowing 3 ha 30.50 EUR/ha 91.50 EUR
19. Harvest 3 ha 55.00 EUR/ha 165.00 EUR
20. Paid season work force 44 r. hours 1.50 EUR/r.s. 66.00 EUR
21. Other variable costs
B) Total costs(3 to 21) 981.00 EUR
II GAIN/LOSS
22. Total without incentive ( A - B ) 1,314.60 EUR
23. Per ha without incentive (22 : 17) 438.20 EUR
24. Cost of grain kg (22: 1) 0.11 EUR
25. Production efficiency (A : B) 2.34
26. Revenue profitability (22 : A) h 100 57.26%
Source: Authors' calculation based on data from Micic, 2012
From Table 4 we can see that the average yield of barley on the farm was 4.0 t/ha and that it ranged from 3.5 t/ha to 4.5 t/ha. Total gain on 3 ha is 1,314.60 EUR, production efficiency is 2.34 and revenue profitability is 57.26 %. It can also be seen that revenue from grain on farm A is 50 t, it moved from 3.5 t/ha to 7.5 t/ha and from total amounts of plant production farm A used 1/3 to feed the heard while 2/3 was sold on the market.
Pricelist of mixture for feeding pigs on farm A
During price calculation of the mixture from own produced grain for breeding pigs on farm, price of all products was taken into consideration, calculated in tons (t). More data about it is shown in Table 5.
Table 5. Prices of concentrate mixtures on farm A
PRICELIST OF FEED MIXTURE FOR PIGS ON A FARM IN KOSOVO AND METOHIJA IN GRACANICA IN 2012 Price EUR/kg
Pre-starter mixture for feeding pigs up to 10kg (PS) 0.27
Grover mixture for feeding pigs from 15 to 25 kg (SS) 0.22
Starter mixture for feeding pigs up to 15 kg (SG) 0.24
Mixture for feeding fattened pigs from 25 to 60 kg (TS-1) 0.20
Mixture for feeding fattened pigs from 60 to 100 kg (TS-2) 0.19
Mixture for feeding pregnant gilts and sows (SK) 0.17
Mixture feeding lactating sows and boars (SKD) 0.16
Source: Authors' calculation based on data from Micic, 2012
From Table 5 we can see that the feeding mixture for all categories of pigs farm A produces by itself in powder form in their blenders at producers prices.
Price of the concentrate mixture on the farm was calculated by average exchange rate of the National Bank of Serbia in EUR/kg/116 RSD in 2012.
Productivity of sows and raising piglets on farm A
Farm had ten sows of landrace breed which had two farrowing a year with an average of ten piglets per brood, i.e. 20 piglets per sow a year and one boar of the Yorkshire breed.
Piglets were weaned after 21 days with an average body weight of 5.24 kg. Their breeding lasted 38 days after that until they reached 25 kg, with the achieved daily growth of 0.52 kg/day (Table 6).
Table 6. Productivity of sows and raising piglets up to 25 kg in 2012 on farm A
Livestock number on farm 10 Lowland region
Racial composition Landrace + Yorkshire Input weight
Time for fattening in years (two rounds) Exiting weight 25 kg
Average 20 piglets/sow a year Weight of a piglet after weaning 5.24 kg
Age of piglets when weaning 21 day Raising piglets 38 days x 0.52 kg/day
I Revenue Amount Price per unit EUR Total EUR
Number of pigs kg/ livestock Total kg
1 Raising piglets 200 25 5.000 2.80 14,000.00
2 Incentive RS 200 - - - -
3 Incentive RS (sow) 10 - - - -
4 Insurance reimbursement -
A) T o t a l( 1 to 4) 14,000.00
II EXPENSES
5 Feeding piglets
6 -pre-starter (0.2 kg/day x10days x200 livestock) 200 2 400 0.2695 107.80
7 -SS (to 15 kg) (0.5 kg/day x 13days x200 livestock) 200 6.5 1.300 0.2415 313.95
8 -SG (15-25 kg) (1.56 kg/day x15days x200 livestock) 200 23.4 4.680 0.2190 1,024.92
9 Feeding sows (2.5 kg/day x365days x10 livestock) 10 912.5 9.125 0.1666 1,520.23
10 Feeding boars (2.2 kg/day x 365days x 1livestock) 1 803 803 0.1616 129.76
B) Total feedC 5 to 10) 3,096.66
11 Losses in feeding 1% 50 2.40 120.00
12 Water and medicine - sow 10 - - 10.00 100.00
13 Human labor (personal or someone else's) working day 40 10.00 400.00
14 Amortization of the heard (400-100=300x20%) 10 - - 60.00 600.00
15 Amortization of the facility and equipment 8.000 2.5% 200.00
16 Total direct costsf 5 to 15) 4,906.66
17 Indirect costs of the farm 490.00
C) Total costsf 5 to 17) 5,006.66
III GAIN/LOSS
18 On a farm without r incentive (A - C) 8,993.34
19 Per pig without incentive (18 : 3) 899.33
20 Price of a kg (C : 1) 1.00
21 Production efficiency (A : C) 2.79
22 Revenue profitability (18 : A) h 100 64.24%
Source: Authors' calculation based on data from Micic, 2012
From Table 6 we can see that the average weight of piglets on the farm in Gracanica is 25 kg/livestock and that it ranged from 24 to 26 kg/ livestock, with the achieved average price of 1 €/kg and the value of 1 pig was 25.00 €. Total achieved gain for 200
piglets was 8,993.34 €, production efficiency 2.79 and revenue profitability 64.24 %. In Table 7 there are 40 fattened livestock in 2012 on a family farm A.
Fattened pigs on farm A
Farm A fattens 40 pigs a year in 4 turns and sells them ex-loaded on the farm as well as excess piglets. Farm A breeds around 200 piglets a year of average weight of 25 kf and raises gilts for themselves. Farm A sells 80% of piglets free loaded after they have achieved 25 kg of mass at the price of 2.8 euros, in 2012 (Table 7), as well as total achieved economic indicators (Table 8).
Table 7. Achieved economic indicators in fattened pigs on farm A for 2012
No. Production year: 2012. Amount Stopa konverzije kg hrane: 2.68 kg growth
1. Fattening period: Jan-Dec - Unit of Measure Mortality rate in feeding: 2.43%
2. Number of pigs placed in fattening: 41 livestock
3. Average weight of fattened: 100 kg/ livestock
4. Fattening time: 87 days
I Revenue - - Price Unit of Measure Amount/€ Amount (€/ livestock)
5. Fattened pigs ( 3 x 5) 40.00 livestock 1.58 EUR/kg б.320.00 158.00 EUR
б. Manure 20.00 t 4.00 EUR/t 80.00 2.00 EUR
7. Subventions per pig 40.00 livestock 8.70 EUR/ livestock 348.00 8.70 EUR
A) Total revenue (1 to 7) - 6.748.00 168.70 EUR
II Expenses - Unit of measure Price Unit of measure Amount/€ (EUR/ livestock)
8. Piglets (average livestock) 25.00 kg / livestock
9. Piglets (2 x 8) 1,025.00 kg / livestock 1.00 EUR/kg 1,025.00 25.00 EUR
10. Own mixture of concentrate
11. TS1 (from 25-60 kg) (2.15kg/day x 41days x40 g.) 3.526 0.20 EUR/kg 705.00 17.б3 EUR
12. TS2 (from 60-100 kg) (2.45kg/ day x46days x40 g.) 4.508 0.19 EUR/kg 85б.50 21.41 EUR
13. Average daily per pig 2.31 kg/EUR
14. Mechanical work (7 h14) kg/EUR 2.00 EUR/kg 80.00 2.00 EUR
15. Water per pig(15x4) x 8:1.000 10 L/day 1.25 EUR/m3 43.50 1.08 EUR
1б. Veterinary services and medicine(7x16) 1.00 EUR/ livestock 40.00 1.00 EUR
No. Production year: 2012. AmOUnt Stopa konverzije kg hrane: 2.68 kg growth
17. Human labor(3 x 5) x 17 0.15 EUR/ livestock 600.00 15.00 EUR
18. Indirect costs( 7 x 18) 1.40 EUR/ livestock 56.00 1.40 EUR
19. Amortization of facilities and equipment (7 x 19) 2.00 EUR/ livestock 80.00 2.00 EUR
B) Total costsf to 30) 3,486.00 86.52EUR
III GAIN/LOSS
20. On farm with incentive(A - B) 3.262.00 81.55EUR
21. Price in kg B : (3 x 5) 0.87
22. Production efficiency (A : B) 1.94
23. Revenue profitability (20 : A) x 100 48.34%
Source: Authors' calculation based on data from Micic, 2012
From Table 7 we can see that the value of one fattened pig was 87.00 EUR/pig. Total achieved gain for 40 fattened pigs is 3,262.00 EUR, production efficiency 1.94 and revenue profitability 48.34 %.
Table 8. Total achieved economic results in agricultural and livestock production on farm A
No. Farm in Gracanica Production year: 2012 Revenue Amount Unit of measure Price Unit of measure Amount in EUR for 2 ha
I REVENUES For e
1. Corn from2 ha 2 6.5 7.1844 t/ha 130.00 EUR/t 933.97 EUR
2. Cornstalks from2ha 2 9 18 t/ha 17.98 EUR/t 323.70 EUR
3. Triticale from 3 ha 3 5 11.618 t/ha 150.00 EUR/t 1,742.70 EUR
4. Straw from 3 ha 3 5 15 t/ha 19.50 EUR/t 292.50 EUR
5. Wheat from 2 ha 2 5 8.6036 t/ha 170.00 EUR/t 1,462.61 EUR
6. Straw from 2 ha 2 5 10 t/ha 16.90 EUR/t 169.00 EUR
7. Barleyfrom3 ha 3 4 6.141 t/ha 170.00 EUR/t 1,043.97 EUR
8. Strawfrom3 ha 3 5 15 t/ha 17.04 EUR/t 255.60 EUR
9. Piglets livestock 159 25 3.975 kg 2.80 EUR/kg 11,130.00 EUR
10. Fattened pigs 40 100 4.000 kg 1.58 EUR/kg 6,320.00 EUR
11. Manure per q 5 livestock 40 20 t 4.00 EUR/t 80.00 EUR
12. Subventions livestock 40 livestock 8.70 EUR/ livestock 348.00 EUR
A) Total revenue (1 to 12) 24,102.05 EUR
II Expenses
13. Cornfrom2 ha 684.00 EUR
14. Triticale for 3 ha 981.00 EUR
15. Wheat for 2 ha 654.00 EUR
16. Barley for 3 ha 981.00 EUR
17. Upbringing piglets 3,300.72 EUR
18. Fattening pigs40 livestock 900.00 EUR
B) Total expenses(13 to 18) 7,500.72 EUR
II GAIN/LOSS
19. Total with incentive ( A - B ) 16,601.33 EUR
20. Production efficiency (A:B) 3.21
21. Revenue profitability (19 : A)h100 68.88%
Source: Authors' calculation based on data from Micic, 2012
From Table 8 we can see that in 2012 the farm achieved total revenue of 24,102.05 EUR; expenses in the amount of 7,500.72 EUR; gain in the amount of 16,601.33 EUR; in agriculture and livestock production and sale production efficiency 3.21; a d revenue profitability 68.88 %.
Pricelist of concentrate mixtures on farm B for feeding pigs of all categories is shown in Table 9.
Table 9.Price of concentrate mixture on farm B
PRICELEST OF MIXTURE FOR FEEDING PIGS ON A FARM ON KOSOVO AND METOHIJA IN GRACANICA IN 2012 PRICE EUR/kg
Pre-starter mixture for feeding piglets to 10 kg (PS) 0.48
Grover mixture for feeding piglets from 15 to 25 kg (SS) 0.34
Starter mixture for feeding piglets to 15 kg (SG) 0.33
Mixture for feeding fattened pigs from 25 to 60 kg (TS-1) 0.28
Mixture for feeding fattened pigs from 60 to 100 kg (TS-2) 0.26
Mixture for feeding pregnant gilts and sows (SK) 0.25
Mixture for feeding lactating sows and boars (SKD) 0.29
Source: Authors' calculation based on data from Micic, 2012
The Farm has its own blenders that operates independently and is located by the entrance gate and by the above mentioned pricelist of mixture entrusts farm B.
Productivity of sows and upbringing of piglets on farm B
Farm B has 1,500 sows Landrace + Yorkshire which had two farrowing a year in the average of 10.3 raised piglets per breed, i.e. 20.6 piglets a year. Piglets are weaning after 28 days with the average body weight of 6.6 kg. Their upbringing lasted 34 days after that up to body weight of 25 kg, with the achieved daily growth of 0.54 kg a day.
More data on productivity of sows and raising piglets on farm B is given in Table 10.
Table 10. Productivity of sows and raising piglets up to 25 kg on farm B in 2012
Livestock Number on farm 1,500 Lowland region
Racial composition Landrace +Yorkshire Entrance weight
Fattening weight in years (two cycles) Exiting weight 25 kg
Average 20.6 piglets/pig a year Weight of a piglet after weaning 6.6 kg
Age of piglets after weaning 28 days Raising piglets 34 days x 0.54 kg/day
I REVENUE Number of livestock kg/ livestock Total kg Price unit Total €
1 Raising piglets put for fattening: 30,600
2 Average end weight of piglets: 30,000 25 750,000 2.39 1,792,500.00
3 Manure (sows)total 1,500 500 750,000 0.01 7,500.00
A T o t a l (1 to 3) 1,800,000.00
II EXPENSES
5 Feeding piglets/ mixture according to pricelist Table 8.
6 -pre-starter (0.2 kg /day x10days x30,000 pigs) 30,000 2 60,000 0.48 28,800.00
7 -SP1 (to 15 kg) (0.6kg /day x11days x30,000 pigs) 30,000 6.6 198,000 0.34 67,320.00
8 -SP2 (15-25kg) (1.8 kg /day x13days x30,000 pigs) 30,000 23.4 702,000 0.32 224,640.00
9 Feed to sow (4.5kg/day x46days x1,500 pigs) 1,500 207 310,500 0.28 86,940.00
10 Feeding a sow (4.5 kg/day x365days x1,500 pigs) 1,500 1,642.5 2,463,750 0.26 640,575.00
11 Feeding a boar (4 kg/day x365days x25 pigs) 25 1,460 36,500 0.26 9,490.00
B) Total feed (5 to 11) 3,341.5 3,770,750 1,057,765.00
12 Loss in fattening piglets 2% - - 36,000.00
13 Under vacuum 30,000 1.00 30,000.00
14 Water and medicine - sow and boars 1,525 - - 20.00 30,500.00
15 Human labor (personal someone else's) working day 365 400.00 146,000.00
16 Amortization of pigs (450 -150=300x20%) 1,525 - - 60.00 91,500.00
17 Amortization of facilities and equipment 1,449,275 3% 43,478.00
18 Total direct costs(5 to 18) 1,494,718.00
19 Indirect costs of the farm 93,559.00
C) Total costs(18 + 19) 1,528,802.00
III GAIN/LOSS
20 On a farm without incentive(A - C) 271,198.00
21 Per pig without incentive (20 : 3) 180.79
22 Price for kg (C : 2) 2.04
23 Production efficiency (A : C) 1.18
24. Revenue profitability (20 : A) x 100 15.07%
Source: Authors' calculation based on data from Micic, 2012
From Table 10 it is visible that breeding sows-piglets on farm B has the gain from 271,198 EUR, efficiency is 1.18 and revenue profitability is 15.07 %.
Table 11 shows achieved economic indicators in fattened pigs on farm B in 2012.
Table 11. Achieved economic indicators in fattened pigs on farm B
1. Production year: 2012 Amount Conversion rate of feed in kg: 3.21 kg/growth
2. Fattening period: Jan-Dec Unit of Measure Mortality rate of fattened: 2.0%
3. Number of pigs put for fattening: 30,600 livestock
4. Average weight of a fattened pig: 100 kg / livestock
5. Length of fattening: 98 Days
I Revenue - Unit of measure Price Unit of measure Amount total Amount €/ livestock
6. Fattened pigs( 4 x 6) 30,000 livestock 1,58 EUR/kg 4,740,000.00 1,158.00 EUR
7. Manure 15,000 t 4,00 EUR/t 60,000.00 2.00 EUR
8. Subventions per Pig 30,000 livestock 8,70 EUR/ livestock 261,000.00 8,70 EUR
A) Total revenue (1 do 8) - 5,061,000.00 168.70 EUR
II Expenses -
9. Piglets (average/ pig) 25.0 kg / livestock
10. Piglets(J x 9) 765,000 kg/ livestock 2,04 EUR/kg 1,560,600.00 52.02 EUR
11. Farm is has the mixture according to pricelist
12. TS1 (from 25- 60 kg) 2.35kg/ dayx46days x30,000 pigs 0,28 EUR/kg 908,040.00 30.27 EUR
13. TS2 (from 60-100 kg) 2.55kg/ dayx52days x30,000 pigs 0,26 EUR/kg 1,034,280.00 34.48 EUR
14. Average daily per livestock 2.46 kg/EUR
15. Mechanical work (6 x 15) - kg/EUR 1,4967 EUR/kg 44,901.00 1.50 EUR
16. Water per livestock (16 x 5) x 6:1.000 10 L /day 1,15 EUR/m3 33,810.00 1.12 EUR
17. Veterinary services and medicine(6 x 17) 0,80 EUR/ livestock 24,000.00 0.80 EUR
18. Human labor(4x6) x 18 kg/EUR 0,18 EUR/ livestock 540,000.00 18.00 EUR
19. Indirect costs (6 x 19) kg/EUR 1,00 EUR/ livestock 30,000.00 1.00 EUR
20. Amortization of facilities and equipment (6 x 20) 3,53 EUR/ livestock 105,900.00 3.53 EUR
B) Total costs(9 to 20) 4,281,531.00 142.72 EUR
III GAIN/LOSS
21. On farm with incentive (A - B) 779,469.00 25.98 EUR
22. Cost per kg B :(4x 6) 1.42
23. Production efficiency (A : B) 1.18
24. Revenue profitability (21 : A) x 100 % 15.40
Source: Authors' calculation based on data from Micic, 2012
From Table 11 we can see that total achieved gain for 30,000 fattened pigs is 779,469.00 EUR, production efficiency 1.18 and revenue profitability is 15.40 %.
Table 12 shows total achieved economic indicators in pig fattening on farm B in 2012.
Table 12. Total achieved economic indicators in pig fattening on farm B
No. Production year: 2012 Amount Amount Unit of measure Price Unit of measure Amount EUR
I REVENUE Livestock
2. Manure(sow) 1,500 500 750,000 kg 0.01 € /kg 7,500.00EUR
3. Fattened pigs 30,000 100 3,000,000 kg 1.58 € /kg 4,740,000.00EUR
4. Manure (fattened pig) 30,000 0.5 15,000 t 4.00 € /t 60,000.00EUR
5. Subventions 30,000 livestock 8.70 livestock 261,000,00EUR
A) Total revenue (1 to 5) 5,068,500,00EUR
II EXPENSES
6. Fattened pigs 30,000 livestock € 4,281,531,00EUR
B) Total expenses 4,281,531,00EUR
III GAIN/LOSS
8. Total with incentive ( A - B ) 786,969.00EUR
9. Production efficiency (A : B) 1.18
10. Revenue profitability (8 : A) x 100 % 15.53
Source: Authors' calculation based on data from Micic, 2012
From Table 12 we can see that total realized gain on farm B was 786,969.00 €, production efficiency 1.18 and revenue profitability 15.53 %.
Production efficiency of fattened pigs on both farms in 2012
In order to research production efficiency in fattening pigs, two farms from Serbia and Kosovo and Metohija were taken into consideration since they have the necessary conditions for such production. We researched farm A which has 40 fattened pigs and farm B which has 30,000 livestock. Average entrance weight of piglets for fattening was 25 kg and achieved exit weight was 100 kg. On farm B average fattening period of pigs was 98 days with the daily gain of 0.76 kg/livestock/day, while on farm A it lasted 87 days, with an average daily growth of 0.86 kg/livestock/day. Our results are in accordance with the results stated (Vidovic et al., 2012) in the performance test of pure breeds of pigs, landrace and Yorkshire. Calculation of income includes only the revenue from selling pigs while potential revenue from pig meat wasn't taken into consideration (Table 13).
Table 13. Economic indicators of pork meat production - pork meat side on farm A and B in 2012
I Indicator Unit of measure FarmA/ FarmB/
A. Fresh pork meat sides livestock 40.00 30,000.00
B. Livestock weight of live pig weight kg 100.00 100.00
1. Total weight, pig (A x B ) kg 4,000.00 3,000,000.00
2. Pork sides/livestock % 79.00 78.00
3. Total pork/side kg (1 x 2) : 100 kg 3,160.00 2,340,000.00
4. Price of pork sides € /kg 2.82 2.82
V. Total revenue ( 3 x 4 ) € 8,911.20 6,598,800.00
II EXPENSES
5. Price of the slaughter service €/ livestock 8.70 8.70
6. Direct costs of live pig weight € 3,480.00 4,281,531.00
7. Total pig slaughter service (Ax 5) € 348.00 261,000.00
G. Total expenses( 6 + 7 ) € 3,828.00 4,542,531.00
III GAIN/LOSS €
8. Pork sides from farms (V - G) € 5,083.20 2,056,269.00
9. Pork side livestock/EUR (8 : A) € 127.08 68.54
10. Pork side price kg (G : 3) € 1.21 1.94
11. Meat production efficiency (V : G) 2.33 1.45
12. Revenue profitability (8 : V) x 100 % 57.04 31.16
Source: Authors' calculation based on data from Micic, 2012
From the shown data it can be seen that pork meat side price on farm A is 1.21 EUR/ kg and that this production has the efficiency of 2.33 and revenue profitability of 57.04 %, while on farm B pork meat side price is 1.94 EUR/kg and that this production has the efficiency of 1.45 and revenue profitability of 31.16 %. It can further be seen that on both farms the calculation of slaughter expenses, cooling and processing of sides amounts to 8.70 EUR per fattened pig.
Calculation was conducted in accordance with the achieved yield of slaughtered pigs, value of fattened pig with the mass of 100 kg with the price of 87.00 EUR + 8.70 EUR slaughter expenses, which amounts to 85.70 EUR on farm A.
Slaughtered pigs have amounted to 79 kg of cooled side x 2.82 EUR price of a side, giving the value of 222.78 EUR, and when we take the price of pork meat (side) 95.70 EUR, we het the gain per livestock of 127.08 EUR/kg. It can be easily concluded that the price of a cooled side is 132.79 % bigger than the price of a fattened pig, which doesn't represent an usual relation on the market. Farm A achieved gain in the amount of 5,083.20 EUR.
A calculation was also conducted of farm B in accordance with the yield of slaughtered pigs and the value of a fattened pig with the weight of 100 kg is 142 EUR + slaughter costs 8.7 EUR which amounts to 150.70 EUR, and since cooled pork meat side weighing 78 kg with the price of 2.82 EUR per kg, the value of the livestock (side) is 219.96 EUR.
Slaughtering pigs they obtained pork meat sides with uniform mass, an average of 78 kg per livestock. Farm B realized a profit in the amount of 2,056,047 EUR.
It can easily be concluded that the price of a cooled side is 45.96% bigger than the price of a fattened pig.
We came to new scientific findings in the paper on the practical application of quality feeding in fattening pigs. Advantages of such a method of raising pigs was examined and the scientific contribution to promoting development of producing quality pork
meat, for which Serbia with its pig raising tradition has great geographic-ecological potentials, especially in its agricultural and livestock production. As a final conclusion of the research it can be recommended to pig breeding farms to organize production groups, cooperatives, clusters and francizes so they could more easily open pig raising-repro-center and perfect their products so they could be placed on the market faster.
Conclusion
Based on the analysis of the state in agricultural-food production, specifically pork meat, we came to a conclusion when the approach in this type of production is in question. Another argument in the request for determining fattened pig price on the slaughter line is the given quality according to the share of meat, which is shown in the research on farm A, that it's best to close the entire production cycle from a field to fork. We primarily think on the market of fattened pigs, piglets and pork meat in Serbia in 2012. After the research, we answered a few very important questions in the paper, which are: the price level is not such that it stimulates pig breeders and the price influences production level. One of the reasons the there is a reduction and stoppage of slaughtering of big industries in the Republic of Serbia (facilities in Sombor, Subotica and Coka). There is an expansion of big private slaughterhouses at the same time, which are far more flexible the industries, therefore their production is far more efficient. Pork meat consumption cyclically reduces due to relatively high prices and a decline in life standard. An increase in price of this products leads to lower demand and meat consumption. The abovementioned indicator shows very significant economic effects of the stated technology in feeding pigs, high strategic efficiency in production development. Pork meat production on both farms is economically justified and development of intensive production of goods can be expected in farm conditions in Serbia.
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TROSKOVI POLJOPRIVREDNIH GAZDINSTAVA (FARMA, POLJ. PREDUZECA, SELJACKO GAZDINSTVO) SA JEDNAKIM MOGUCNOSTIMA PROIZVODNJE
IvanMicic7, Dragana Urosevic8, Radosav Vujic9, Ivana Micic10, Marko Micic11,
Marija Micic12
Rezime
Predmet istrazivanja u radu je analiza stanja i osnovnih problema u farmskoj proizvodnji svinjskog mesa, kao i ekonomska analiza tova svinja. Istrazivanja su obuhvatila konkretne studije slucaja na porodicnom poljoprivrednom gazdinstvu, svinjogojskoj farmi u Gracanici, u centralnom delu Kosova i Metohije i na zadruznom poljoprivrednom gazdinstvu, svinjogojsku farmu u Zitoradi u Toplickom okrugu. U periodu u 2012. godini pracen je obim i primenjena tehnologija proizvodnje tovnih svinja na obe farme i analizirani su dobijeni ekonomski rezultati. U posmatranom periodu utvrdeno je da na privatnoj farmi ukupan broj tovljenika iznosi 40 grla, dok na zadruznoj farmi, broj tovljenika iznosi 30.000 grla. Proizvedeni tovljenik na privatno jfarmikosta 87 €, i svinjsko meso upolutki 1,16 €/kg. Na zadruznoj farmi cena tovljenika iznosi 142 €, i svinjsko meso u polutki 1,94 €/kg. Prosecna masa tovljenika na obe farme je 100 kg, dok je udeo svinjskih polutki varirao od 78%-79%.
Kljucne reci: Proizvodnja tovljenika, svinjskog mesa -polutki, cena, kvalitet, ekonomski rezultati.
7 Mr Ivan Micic, doktorand, Univerzitet u Beogradu, Poljoprivredni fakultet, Nemanjina ulica br. 6, 11080 Zemun, Srbija, Telefon: +381 11 261 53 15, E-mail:divanlav@gmail.com
8 Master Dragana Urosevic, Univerzitet u Beogradu, Poljoprivredni fakultet, Nemanjina ulica br. 6, 11080 Zemun, Srbija, Telefon: +381 63 881 49 35, E-mail: dragana. urosevic91@yahoo.com
9 Dr Radosav Vujic, Poljoprivredno strucna i savetodavna sluzbaValjevo , Bircaninova br. 128 A , 14000 Valjevo,Srbija, Telefon: +381 64 843 54 58 E-mail: pssvaljevo@mts.rs
10 Master Ivana Micic, doktorand, Ekonomski fakultet , Univerzitet u Nisu , Trg Kralja Aleksandra Ujedinitelja 11, 18000 Nisu , Srbija, Telefon: +381 63 233 603, E-mail: (ivancica@gmail.com)
11 Marko Micic, Dipl. ecc, Univerzitet u Nisu, Ekonomski fakultet ,Trg Kralja Aleksandra Ujedinitelja 11, 18000 Nisu, Srbija,Telefon: +381 63 680 040, E-mail: (markomicic89@ gmail.com)
12 Master Marija Micic, doktorand, Univerzitet u Nisu, Tehnoloski fakultet u Leskovcu, Bulevar Oslobodenja 124, 16000 Leskovac, Srbija, Telefon: +381 62 867 45 98, E-mail: (marija84micic@gmail.com)
