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TSVETANA HARIZANOVA-METODIEVA, NIKOLA METODIEV

posted Mar 9, 2020, 10:59 PM by WEB MASTER
ANALYSIS OF INCOMING AND OUTGOING CASH FLOWS OF DAIRY SHEEP BREEDING FARMS IN BULGARIA

Summary: The aim of the study is to explore cash flow categories (incoming, outgoing and net cash flow per ewe), generated by dairy sheep breeding farms in Bulgaria. The study was carried out with 3 conventional dairy sheep farms (511 ewes totally, all from the breed – Synthetic Population Bulgarian Milk), in which extensive farming system was applied. The information was collected through a questionnaire from farm owners in 2016.  The study found that all three farms have positive net cash flow (735 EUR, 6415 EUR, and 32034 EUR). The cash flows of farms vary according to the specifics of their activity, but the largest share of the outgoing cash flows have that for labour payments (from 30.8% to 50.5%) and for the purchase of forages (from 10.8% to 47.3%). Fuel costs vary considerably (from 1.8% to 7.2%). From the incoming cash flows, substantial portion took the sales of sheep milk (from 32% to 54.8%) and lambs (from 23.6% to 38.4%), followed by subsidies (from 17% to 27.7%). The net cash flow per ewe greatly varied and took values of 7 EUR, 77 EUR, and 99 EUR, meaning that the profitable operation of each farm depends on local factors of the natural environment, business conditions and management decisions of the farm owners. It is necessary for the farmers to take precautions to keep lambs alive and healthy in order to maximize the financial effectiveness of the farm, as well as to sell milk at better price.

Keywords: dairy sheep farms, sales, cash flows, Bulgaria

JEL Classification: Q12


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WEB MASTER,
Mar 9, 2020, 10:59 PM
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