Tag: profitability

Farm-level benchmarking and comparative analysis provide a basis for orientation on national, regional and global level. In the agri benchmark global network, we compare beef and sheep farms (as well as other branches) from more than 30 countries. In a partnership approach with researchers, producers and local experts, we collect and validated farm-level data using a standard operating procedure and a farm-level simulation model. In cow-calf farms, winter housing is associated with higher live weight production. Profitability is mainly driven by weaner prices and their variation and to a lesser extent by costs. In the EU, government payments play a crucial role in determining profitability. In sheep farming, performance and economic framework conditions differ across production systems and countries. Sheep profitability shows large variations with higher profits being achieved outside of Europe. The global outlook for beef and sheep production remains positive, with declining numbers in Europe and challenges related to workforce and environmental regulations.

This paper presents the outcome from a case study analysis for a Canadian farm that does site-specific fertilisation (SSF), a precision farming approach which takes into consideration the spatial variability of soils. The economic results for three years of wheat and canola production are compared to a neighbouring farm, which is practicing conventional broadcast application of fertilisers. Since no additional investments in machinery are needed, the annual variable cost is 6 CAD/acre. In the standard case, the average profit is 30 CAD/acre. The rather pronounced difference in the effects from SSF application in wheat vs. canola leads one to question whether this is a crop-related systematic outcome or instead represents something more random. Sensitivity analyses generated two main insights. First, the economics of SSF are sensitive to a modification in commodity prices – a 50 % cut would reduce the average profit to about 9 CAD/acre. Second, another scenario calculation in which no-till is assumed to generate a 5% increase in yields suggests that the net profit would be just 7 CAD/acre. Given the existence of so many uncertainties, this paper calls for more farm-based economic analysis of SSF, one which should also include a comparison of different service providers ...

The main objective of this study is to compare the efficiencies of organic and conventional farms in Poland. As shown by the conducted analysis, acting in compliance with the essential production principles, organic farms practiced extensive farming which resulted in reduced efficiency of productive inputs. The efficiency of land and labour measured by the Adjusted Net Value Added was respectively nearly 30 and 65 per cent higher in conventional holdings. Moreover, subsidies contribute more to the income of organic farms, making them strongly dependent on external support (this is especially true for farms with grazing livestock). As a part of policy planning, it should be taken into consideration that organic farms may in the future encounter a development barrier stemming from lower efficiency, difficult access to subsidies and, finally, lower levels of income.

An increasing number of villages in many countries do not have any local supplier at all. In the retail sector of Germany, the large supermarket companies require at least 5,000 inhabitants in the catchment area to run a shop. The aim of this paper is to describe the contribution of village shops to local supply and social life as well as to assess their economic viability. Therefore, findings from a telephone survey of approximately 100 shop operators in Germany are presented. The results show the limited supply and social function of the shops as well as their precarious economic situation. Many shops only offer a small range of goods so that the coverage of basic needs is difficult and they are mostly visited for supplementary purchases. Most village shops provide a snack area as a meeting place, but these are relatively seldom used. The findings indicate that permanent public and civic support is required to sustain many small shops in small villages. Because of the market conditions, however, public initiatives cannot halt the trend towards increasing numbers of ‘food deserts’; at best they can slow down the process. Where village shops cannot be sustained economically, home delivery services, mobile supermarkets ...