Open AccessINFLUENCE OF SUBSIDIES ON THE EFFICIENCY OF PRODUCTION IN SHEEP BREEDING (ON THE EXAMPLE OF SHEEP FARMS FROM SOUTH-WEST BULGARIA)
Author(s) -
H. Momchilov,
D. Pamukova
Publication year - 2019
Publication title -
trakia journal of sciences
Language(s) - English
Resource type - Journals
eISSN - 1313-3551
pISSN - 1312-1723
DOI - 10.15547/tjs.2019.s.01.068
Subject(s) - subsidy , profitability index , revenue , profit (economics) , production (economics) , agricultural science , business , agriculture , agricultural economics , economic efficiency , economics , biology , finance , market economy , ecology , microeconomics
The purpose of this study is to clarify the influence of subsidies on the efficiency of production in sheep breeding by analyzing the mechanism of functioning based on different types of farms in the southwest region of Bulgaria. Options have been identified that could lead to a positive economic result. Most attention is paid to the profitability of production when farms do not receive or receive subsidies from the state. Small farms (with up to 50 ewes) were strongly dependent on the subsidies for pastures. With subsidy, the profitability of costs and revenues was higher. In farms with 50 tо 99 ewes subsidies also played an important role for increasing the profitability of operations. In farms with more than 100 ewes, which also received the highest subsidies could not survive only from sales of produce, as in most of these farms, the profit was negative, e.g. they were at a loss, hence the negative profitability results.