Understanding the decision‐making in small‐scale beef cattle herd management through a mathematical programming model

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Abstract
We address the issue of managing beef herds from the perspective of small‐scale farmers and propose an optimization model applicable to the conditions of the Czech Republic. Our research focused on optimization under existing system conditions with established procedures. We present a linear programming model of beef herd development over a 10‐year period that considers the limited capacity of small‐scale farms. The key decision‐making variables represent the acquisition of heifers and the selection of heifers for fattening and breeding. For 102 selected scenarios, we demonstrate the impact of proper heifer acquisition and farmers’ profit sensitivity on the key parameters. For the key parameters, we identify thresholds that determine the sustainability of small‐scale Czech beef farms. The proposed model demonstrates the crucial impact of subsidies on the profitability of beef farms. A 24% decrease in subsidies is shown to be the threshold at which a farmer's optimal strategy is to leave the market.

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