Economic efficiency of suckler cow herds in the Czech Republic

Abstract

The objective of the study was to assess the profitability of suckler cow herds located in different regions of the Czech Republic. Data on 2164 suckler cows were collected for 2013 from 20 beef farms using a questionnaire and the covered production, reproduction, and economic traits. Model calculations were used to determine the level of profitability with support payments either included (2.15%) or excluded (−45.5%). Break-even points defined as the points when the operation reaches zero profitability were estimated for the number of calves weaned and sold (81 calves/100 cows) and for the selling price of calves (54.6 CZK/kg). Fixed cost as a proportion of the total costs was reduced with the increasing herd size. Based on the results of a sensitivity analysis, the selling price for calves, the number of calves weaned the calving interval, and the amount of support payments were identified as the factors with the highest impact on the overall herd profitability.