Profitability and scale of livestock production in Slovakia

The paper reviews changes in the profitability of the dairy, beef, pork and poultry sub-sectors of the livestock industry in Slovakia during the period between 1990 and 2000. The review is based on sample survey (panel) data on costs and receipts, collected by the Research Institute of Agricultural and Food Economics throughout the entire period of transition. The deteriorating terms of trade and low productivity have been the main reasons for insufficient profitability of livestock enterprises during this period. Public transfers still provide a significant proportion of farmers' income. There is an obvious need for further investigation on how far the productivity and profitability in livestock enterprises have been influenced by the prevailing farming structure in the country. The dual pattern typical of many transition countries, where large-scale and small-scale farms coexist, is also reflected in herd sizes. Within the sphere of commercial farming, large-scale companies have the major share of livestock. Nevertheless, during the recent few years, a reduction in average herd sizes can be observed. The last section of the paper presents statistical data on this issue.