Transcript Perčinović Ltd - Sarajevo Business Forum

ECONOMIC PROGRAM OF CATTLE BREEDING
BASED ON THE „COW-CALF“ SYSTEM
Tomislavgrad – December, 2013
Location:
Bosnia and Herzegovina
Tomislavgrad and Kupres municipality
The location of the implementation of beef cows breeding in the cow-calf system project on the territories of
Tomislavgrad and Kupres municipalities (south-east Bosnia and Herzegovina – Kupreško Field and Duvanjsko Field
with spacious surrounding mountain pastures) has all the acceptable characteristics and potentials for success in
this breeding, which is definitely confirmed by the successfully implemented projects in this area, one of them
being the farm of Perčinović Ltd Tomislavgrad which in its breeding has 1,850 head of Angus breed.
The territories of Tomislavgrad and Kupres municipalities are located in the south-east Europe in Bosnia and
Herzegovina, approximately 100 km far from the Adriatic Sea.
Tomislavgrad Municipality territory
Kupres Municipality territory
Basic site information:
The Company Perčinović Ltd Tomislavgrad, with its headquarters at Obilaznica bb – 80240 Tomislavgrad, is registered
as a limited liability company and with ownership structure Perica Papić 50%, Slaven Papić 50%.
The activity of the company is cattle breeding based on the „cow-calf” system, with predominant breed of Red Angus.
At the moment, the company carries on the business of breeding cattle for meat production on three locations:
Eminovo Selo – Tomislavgrad, Pakline – Tomislavgrad and Zvirnjača – Kupres.
One of the most important things in organizing cattle breeding based on the „cow-calf“ system is the good choice of
breed because breed is one of determining factors which directly influence the rentability of production. Cattle
breeding based on the „cow-calf“ system in this presentation is designed on purchase and breeding of head of ANGUS
breed which has demonstrably already adapted well to the life and development on these areas (high altitude,
vegetation, cold winters,…). This is the reason why there is neither uncertainty nor potential risk of mistake when
choosing which breed to rear.
.
Current total number of livestock of the company Perčinović Ltd Tomislavgrad,
by type (age) is listed in the following chart:
Cattle type
Number/ head
900
200
150
230
250
70
50
1.850
cows
Heifers for breeding – over two years old
Heifers for breeding- between one and two years old
Heifers -3 to 12 months old - female
heifers -3 do 12 months old- male
Calves up to 3 months old
Bulls for breeding
Total number of head:
Agricultural land which the company manages is placed in the following
locations in the quoted areas and field crops:
Description
In property (ha)
leased (ha)
Cadastral municipality
10
25
Tomislavgrad
Pasture
5
Tomislavgrad
Meadow
1.760
Kupres
Pasture
558
Kupres
Arable land
104
Kupres
Arable land
Total (ha):
10
2.452
Investment
Breeding of additional 10,000 head by the „cow-calf“ system could be realized with an investment of app
50,000,000 KM (25,564,594 EUR).
For the acquisition of the parent herd it is necessary to ensure app € 17.895.000 (10,000 head x 1.790 EUR), and
for the construction of buildings, purchase of machinery and food for the first year of breeding app 7,605,000
EUR.
It is possible to realize the acquisition of the parent herd by purchase from suppliers from Hungary and partially
from the local breeders in Bosnia and Herzegovina.
The acquisition of the parent herd would be carried out by buying young cattle which have already been
impregnated and which will have calving in the spring season. From the total number of 10,000 head, app 100 of
them would be young purebred breeding bulls. For a completely natural reproduction it is necessary to have one
breeding bull per approximately 30 cows, which is not economically feasible. Thus, the insemination of cows will
be organized by artificial insemination of semen from purebred bulls from the same herd, which would result in
better controlled and coordinated calving sessions.
Accordingly, from the total number of 10,000 head, there would be 9,900 cows capable of reproducing and with
app 9,000 calves in the spring season. The loss of 900 calves is planned according to the average of 1% mortality
rate of calves during calving or at the early stage of life.
Foreign market (export) is definitely one of the greatest challenges in terms of product placement (cattle, meat,
meat products). The reason for this is because the legal regulations defined that the companies with minimum of
30% of the total revenue generated by export are not obliged to pay the tax on net profit, which is, according to
the current rate, 10% of net profit.
It is necessary to note here that there are state incentives for livestock farming and agricultural production. The
example of this is that in cattle breeding based on the „cow-calf“ system the producer gets state incentive at the
amount of 500.00 KM (255.64 EUR) for each calved head, and the additional 500.00 KM (255.64 EUR) if that
head is intended for fattening
Mode of cooperation with
potential investor
- Partnership in the form of shares is
in proportion to the amount of
capital investment to a maximum
ratio of 50%: 50%.
Contacts:
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Owner/Developer:
Perčinović Ltd – Obilaznica bb
80240 Tomislavgrad
Bosnia and Herzegovina
Magdalena Papić - director;
Selver Aladjuz - director for development
Phone: +387 34 356 261;
Cell phone: +387 61 166 055
Fax: +387 34 356 261
E-mail: [email protected]
Company’s Website: www.percinovic.com