Intensification of production as a factor of increase indicators of livestock efficiency

Abstract

The article analyzes influence of the livestock industry’s intensification level on the indicators of its efficiency. The following methods were used in the research: a monographic, analytical, grouping method, graphic method. The statistical base of the research included statistical data on the development of cattle breeding, presented by the State Statistics Service of Ukraine and business entities of Kharkiv region. Using the method of regional economic entities’ grouping, based on costs per head of livestock,it has been proved that there is an increase in the efficiency indicators of dairy cattle breeding with their growth in accordance with the law of diminishing returns. In beef cattle breeding, with the existing actual cost per 1 head of cattle and its increase in the farms of Kharkiv region in 2019, there is a decrease in efficiency indicators. We have substantiated the limiting value of costs per cow. After reaching it, there is a decrease in the efficiency indicators of dairy cattle breeding. In 2019, the maximum cost was a value equal to UAH 43.000. The obtained theoretical conclusions are of practical importance for farm managers from the point of view of decision-making on determining the rational value of costs in cattle breeding per cow. Higher intensity of dairy cattle breeding appears to be accompanied by an increase in the livestock population per enterprise, as well as an increase in the average annual milk yield of cows and density of cows per 100 hectares of agricultural land. The operation of the law of diminishing returns in the field of dairy cattle breeding has been substantiated. According to this, an increase in costs per cow leads to an increase in certain indicators of the industry's efficiency to a certain level, after which they decrease. This conclusion is confirmed by dependences between the costs per cow and the average annual milk yield per 1 cow, cost recovery from milk sales, profit (loss) per 1 centner of milk. Key words: intensification, livestock industry, costs, efficiency, the law of diminishing returns.