Growing bull-calves for meat in Ukraine now gives 10-15% of profitability. This level of income does not cause much interest in this business among farmers.
However, the profitability of meat production can be increased due to the intensive technology of fattening with high-nutrient premixes and selling products for export. This was told by Pyotr Bagachevich, an IFC expert on financing the agricultural sector during the broadcast on AgroFM.
The expert gives an example. The farm with a herd of 100 animals has annual sales of about 1 million UAH. Of these, 150 thousand UAH is profit.
This farm can additionally buy 50-60-70 heads of 2 month-old bull-calves from the population. And with intensive fattening, you get a considerable homogeneous batch of marketable products. It can be sold much more expensive if you find buyers in the foreign market.
But, to buy more bull-calves a farm will have to take a loan from the bank. To do this, it must be registered and have transparent reporting. And the farm also should prove to the bank its solvency.
Bagachevich accentuates: to collect a sufficient batch for export, farmers will have to cooperate.
“It can be a formal cooperative or informal. The main thing is for farmers to be united by an idea and agree on the cultivation of bulls by the same standards. It can not be that everyone will grow in their own way, because for the export it is necessary to provide a homogeneous lot,” the specialist says.
At the same time, he advises first to find the customer, and only then to adjust the production technology for him. After all, technology will entail an increase in costs, for example, high-energy fodder or equipment.
In general, according to IFC calculations, it is possible to grow up to 1000 head of bulls effectively in Ukrainian conditions, Bagachevich adds.
Let us recall that earlier FAO developed a business plan for intensive grain fattening of young cattle. Imprint: to feed 3 500 bulls to 550 kilograms of live weight for 15 months. To implement such a project, it will take $ 3.4 million, and the investment will be paid off in 8.5 years.
Another business plan is the calculation of the organization of processing such a quantity of meat. Investments in slaughter and boning will amount to $ 6 million, but it will bring it to the business owner a lot.
In general, according to FAO estimates, fattening the bulls for meat, Ukraine can earn an additional $ 2 billion annually.