Algorithm for Calculating Size and Number of Dairy Cattle for Earning Small Family Farm´s Living in Conditions of the Slovak Republic

Slovakia's agricultural policy is based on the Common Agricultural Policy ("CAP"). One of the objectives of the CAP reform in the dairy sector is to contribute to increasing its competitiveness and market orientation, especially in view of the increasing demand for milk and dairy products in the world market. The reform of the SPP in the milk and dairy products sector has focused production on market requirements and the aid is not linked to production but is geared to meeting food safety, animal welfare and environmental requirements. The aim of the submitted paper was to calculate the minimum size and the minimum number of dairy cattle needed to cover the consumer expenditures of the family farm farming in mountain production conditions in the Slovak Republic. As a small family farm, we defined a 4-member family 2 adults and 2 children, based on the assumption that the family will not process milk but will sell it. We also assume that the family will not employ other workers. The calculations show that to cover household consumption expenditures, which was amounted to 18,607 Euros in 2015, the area of the meadows is 40.85 ha and the area of the pastures is 28.83 ha, which together represents 69.68 ha of agricultural land. Regarding the structure of cattle, the farm will record 10 dairy cows, 5 calves, 9.39 heifers, 0.44 heavily pregnant cows and 6.37 fattening cattle. If a farm will record higher farmland sizes and higher animal numbers, it will only have a positive economic impact on family management.