Beef production is an important sector in Slovenian agricultural . Main challenges facing the industry of beef production are low prices for animals and high costs, which leads to poor economic results of fattening. This master’s thesis aims to show positive effects of selling meat at farm gate by analysing joint investment into a cutting plant. Methods of mathematical programming were used to analyse different scenarios relating utilization of the cutting plant. Agricultural holdings increase their annual gross margin by selling meat at farm gate, and also the gross margin per hour improves despite the labour input increase. We found out that the joint investment into the cutting plant pays off to all agricultural holdings, while investments into independent plants pay off to only few. The volume of the dissected meat and the selling price at farm gate are the main impacts to the investment return. It was also determined that the monetary and marketing investments pay off if they sufficiently increase the number of sales at farm gate.
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