Cost-effective horse breeding in the Republic of Bashkortostan, Russia

Abstract

Background and Aim: There is a lack of reliable data in agribusiness regarding the economic efficiency of horse breeding, and this limits its further development. The purpose of this study was to create rational parameters for the development of productive horse breeding as an effective agricultural business, in particular, in relation to farms. Materials and Methods: The methods of investigation used were induction and deduction, as well as analytical, statistical, and economic-mathematical analysis. We also used the dynamics of time series, CVP analysis, direct costing, and microeconomic analysis. Data were taken from the Russian Federation's official statistics on animal husbandry as well as closed (commercial) data of agricultural enterprises from our study region. Results: Horse ownership in the Republic of Bashkortostan is higher than in the rest of Russia with about 9% of the total number of horses in Russia. We found that landowners need one hectare of arable land to ensure profit and that the highest economic income occurs on farms specializing in kumis production. The production of kumis under intensive farming is less profitable than with free-range horses kept in pastures. Family farms need a large amount of arable land with natural foliage to balance space and profit. Conclusion: Successful implementation of these parameters will make it possible to turn agriculture into successful horse breeding businesses. The expected volume of agricultural production may be approximately 9-11 thousand US dollars per employee.