PROFITABILITY AND ECONOMIC PROFITABILITY OF MILK PRODUCTION FROM THE SIMMENTAL CATTLE BREED IN THE BITOLA PART OF PELAGONIA
PROFITABILITY AND ECONOMIC PROFITABILITY OF MILK PRODUCTION FROM THE SIMMENTAL CATTLE BREED IN THE BITOLA PART OF PELAGONIA

Summary/Abstract: The quantitative property for milk production is under the control of multiple genes and the external environment. By using selective and genetic methods, the Simetal milk breed has been created, which is also known by the name Swiss Fleckvieh. The aim of the research is to determine, through an economic analysis, the profitability and rentability of the quantitative property of milk production, among cows of the Simmental breed in the Bitola part of Pelagonia. In the economic analysis, a calculation method was used in order to calculate the value of production-revenues, variable costs and gross margin. Based on the results obtained from the production profitability indicators for the production year 2021, it can be concluded that the total value of production amounts to 9,330,900.00 denars or 151,230.14 euros, while the total variable costs amount to 7,770,000.00 denars or 125,931.92 euros and the margin of coverage or profit is 1,560,900.00 denars or 25,298.22 euros. In the production year 2022, it is concluded that the total value of production amounts to 12,319,784.00 denars or 199,349.25 euros, the total variable costs amount to 11,528,980.00 denars or 186,553.07 euros, while the profit amounts to 790,804.00 denars or 12,796.18 euros. From the analysis of the two years, it can be concluded that the profitability of the farm is higher in the production year 2021 for 770,096.00 denars or 6,251.02 euros. The results of reduced profitability in 2022 are increased variable costs. Subsidization by the state also has an impact on the profitability of the farm to a large extent.

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