Search

Greece is a country with a long tradition in animal breeding, particularly involving small ruminants and goat farming is an important livestock industry. Despite the high productivity and high quality of products, the goat industry shows low competitiveness due to high production costs compared to other EU countries. For economic sustainability, farms have to be profitable; therefore, it is important to maximize income whilst controlling costs. The aim of this paper is to identify the strengths and weaknesses of the goat breeding industry so that it is not only viable but also competitive. The economic performance of goat farms are evaluated in this study, as well as the factors that influence financial results. Capital formation and production costs composition of the holdings are examined. Moreover, the purpose of the analysis is to draw conclusions regarding the gross return achieved, the participation of production factors (land, labor, capital) in the composition of total costs, and the financial results achieved. Results show that the cost of feed, depreciation, and the value of animals contribute most in the formulation of cost.

Goat farming is an important production sector not only for Greece, but also for other Mediterranean countries, as it contributes to the family economy in rural areas. Despite the importance of goat farming, this sector has experienced economic difficulties due to poor management and increased production costs. The aim of our research is to determine goat farm profitability by surveying goat farmers for revenues, variable costs, and fixed costs of their farms. With the use of Principal Component Analysis, all economic factors contributing to overall production costs are examined, as well as their specific impacts on cost formulation. According to our results, goat farms in Greece are not profitable and they cannot survive without government subsidies. Farm economics and agricultural policies could be leveraged to improve community and environmental outcomes in order for farms to be economically and financially sustainable. [ABSTRACT FROM AUTHOR]