Economic efficiency of rearing Karakachan sheep in the mountain regions of Bulgaria

Stanimira Slavova, Staika Laleva, Yovka Popova and Tsonka Odzhakova

Abstract: The purpose of the study is to make an economic assessment of rearing Karakachan sheep in the mountain regions of Bulgaria. Subject of research is a model of a farm with 300 Karakachan ewes and the corresponding categories rams and lambs. Production system has been analyzed, based on parameters, averaged after surveys, conducted on several sheep farms. Revenues, costs and subsidies, which are a subject of the economic analysis, are valued by current prices and rates for 2017. The profit and profitability rate are calculated, applying the Benefit-cost analysis.
On the basis of results obtained, the following conclusions are drawn: Total Costs predominate in terms of Gross Production, meaning that the level of productivity of the animals is not high enough to compensate them;
The highest relative share in the structure of the Total Revenues show the Subsidies – 64.5%, which is an indicator of the strong dependence of the farm on their availability and size;
The Rate of Profitability after Subsidies has a positive value – 20.39%, i.e. rearing of Karakachan sheep in the mountainous regions of Bulgaria under the parameters of the study would be cost-effective.

Keywords: economic efficiency; Karakachan sheep; rate of profitability; sheep farm

Date published: 2021-02-25