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Milevska, Jasmina, 2010. Sheep enterprise budgets : beneficial planning tools within Agriwise Macedonia. Second cycle, A2E. Uppsala: SLU, Dept. of Economics

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Abstract

Generally in Macedonia keeping farm records and farm business planning is not often practiced like an ordinary activity in farming. Therefore one of the crucial things to do it is to comprise and continuously practice record keeping of farm data. The efficient and justified farm business planning should be based on farm records about the previous work of the farm, which will bring a structured approach for planning all the activities, as well as provide a good basis for attracting investors and creditors for the additional expansion of the business.

Given that sheep breeding holds an important part of the livestock production in Macedonia, there is a need for adding analytical sheep enterprise budgets to support the farm business planning process at sheep farms.
The aim of this research was to develop sheep enterprise budgets created on the best production practice for Macedonian conditions of breeding and test their applicability into the farm business plan model Agriwise Macedonia.

The sheep budgets were composed with a process of data collecting consisted of direct farm data (for the cases), expert's consultation and relevant desk research, as well as a literature study. The aim of doing it was to attain more accurate calculations of the enterprise budgets, which will result in a more precise outcome in the farm business plan model Agriwise Macedonia. For the fulfilment of the aim of the study two types of sheep enterprise budgets were composed. One type of budgets is with the accelerating lambing system (potential) and another with the current (traditional) technology of production. The main users of the sheep enterprise budgets and the farm business planning model Agriwise Macedonia will be advisors, providing it for farmers. The budgets integrated in the Agriwise Macedonia model can be used in the teaching process as well.

From the composed sheep enterprise budgets with 2009 price level it can be concluded that the traditional-cheese enterprise budget was the most profitable with 8937 MKD total income (including subsidies) per ewe and after covering 6526 MKD for direct-separate costs 1, the obtained gross margin1 is 2411 MKD per ewe. The main reason for this outcome is the high market price of the cheese. The income from white sheep cheese is 3483 MKD per ewe, or represents 44% of the total incomes.

From the obtained results with the Agriwise Macedonia model can be concluded/suggested that for the family farms with a herd size between 200-500 ewes for production like most profitable is the traditional system with production of traditional white sheep cheese. These results can be even better with improvement of the conditions for cheese preparation and taking some initiatives for making a brand of traditional Macedonian white cheese. As a result it can be exported out of the country with a higher than the present price which means it will accumulate more profit.

The traditional way of breeding with selling the milk as raw without processing it is not that profitable and that does not depend on the size of the flock.

The accelerating lambing system with production of three lambs in 2 years from the obtained results can be recommended for a herd size above 500 ewes for production. The reason is more efficient use of the available resources, as it was tested in the case study with the agricultural company. And also confirmed with the family farm where with 260 ewes in total, it was more profitable to use only the traditional-cheese system of production
With support of constant farm record keeping and the farm business model Agriwise Macedonia, these sheep budgets can be of great value for the strategic and operational planning in sheep farms in Macedonia, as well as an investment document in applying for credit or grant. That will contribute for justified future decisions in achievement of more profitable results, which will lead/contribute to a modern and competitive farm management tool in the Macedonian agriculture.

Main title:Sheep enterprise budgets
Subtitle:beneficial planning tools within Agriwise Macedonia
Authors:Milevska, Jasmina
Supervisor:Öhlmer, Bo and Martinovska-Stojceska, Aleksandra
Examiner:Hakelius, Karin
Series:Thesis / SLU, Department of Economics
Volume/Sequential designation:589
Year of Publication:2010
Level and depth descriptor:Second cycle, A2E
Student's programme affiliation:NM002 Agricultural Economics and Management - Master's Programme 120 HEC
Department:(NL, NJ) > Dept. of Economics
Keywords:farm management planning tool, farm records, business planning, sheep enterprise budgets, Agriwise Macedonia
URN:NBN:urn:nbn:se:slu:epsilon-8-516
Permanent URL:
http://urn.kb.se/resolve?urn=urn:nbn:se:slu:epsilon-8-516
Subjects:Economics and management
Language:English
Deposited On:11 Jun 2010 07:30
Metadata Last Modified:20 Apr 2012 14:13

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