CHAPTER 6

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HAYVANCILIK EKONOMİSİ DERS NOTLARI HAYVANCILIK EKONOMİSİ DERS NOTLARI

Prof. Dr. Yılmaz ARAL Prof. Dr. Yılmaz ARAL

CHAPTER 6

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HAYVANCILIK EKONOMİSİ DERS NOTLARI HAYVANCILIK EKONOMİSİ DERS NOTLARI

DEFINITION AND SCOPE OF BUSINESS ECONOMY Enterprises that are established in a specific place which meet the needs of the production of economic goods and services, technical, economic and legal entities are called enterprises. In more scientific terms, business; These are economic units that combine production factors consciously and systematically, produce for maximum profit and create added value as a result of this production. In accordance with this definition, livestock business can be defined as follows.

In order to obtain animal and animal products, the

economic units that consciously and systematically

combine the factors of production and produce in order

to obtain maximum profit and create added value as a

result of this production are called as livestock

enterprises. If we need to detail this definition;

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HAYVANCILIK EKONOMİSİ DERS NOTLARI HAYVANCILIK EKONOMİSİ DERS NOTLARI

a. Conscious and systematic combination of production factors: When an enterprise starts its production activity, it cannot randomly combine factors of production such as labor, capital and nature. Especially in today's modern enterprises, the growing of investment activities necessitates the production of production factors to be combined more consciously and systematically.

Business occurs with entrepreneurs (entrepreneurs), who is

real or legal person and taking certain risks, resources

together in a planned and systematic way.

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HAYVANCILIK EKONOMİSİ DERS NOTLARI HAYVANCILIK EKONOMİSİ DERS NOTLARI

b. Maximum profitability principle: The most important principle of the economic relationship between the individuals who make up the society, that is consumers and enterprises (producers), is rationality. For example, rationality for consumers is to provide the highest satisfaction and satisfaction according to budget facilities. The rationality for the producers is to get the highest profit in the production activities.

c. Profit maximization: At first, there are some negative reactions.

It can be interpreted that producers (enterprises) generate some income from which they exploit (not deserve) consumers. However, even in conditions of incomplete competition, the prices of economic goods and services and its determination are not at the discretion of the enterprises. These prices occur under free market conditions.

Therefore, it is not possible for an enterprise to dominate prices alone. The entity tries to maximize profit only by controlling the cost elements at its discretion. For this reason, management is referred to as “the art of controlling costs ”.

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HAYVANCILIK EKONOMİSİ DERS NOTLARI HAYVANCILIK EKONOMİSİ DERS NOTLARI

d. Added value creation principle: Every production in economic units contributes to the income of the society. When calculating community income (National Income), the entire value of production is not taken into account. For example, an entity provides some input from other businesses while performing a particular production. The added value created by an entity is the value obtained after deducting input from sales revenue from other enterprises. This value is shared among production factors in the enterprise as salary and wage, interest, rent and profit.

e. The principle of being an economic unit: The purpose of the activity should be to minimize the waste of resources and use the resources in the most efficient way and the production should be oriented towards the market.

In addition to economic units in economies, the principle of economics exists in the second-place enterprises. For example, in associations, foundations, Red Crescent, Child Protection Agency and so on. social goals are at the forefront of charitable organizations. However, even in these institutions, there is an obligation to balance revenues and expenses to ensure continuity.

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HAYVANCILIK EKONOMİSİ DERS NOTLARI HAYVANCILIK EKONOMİSİ DERS NOTLARI

The Place and Importance of Businesses in Economy If we compare the general economy to a human body,

enterprises can be a collection of cells.

The economy is a community of businesses of various sizes and in various fields, just as a living thing consists of different

cells. If we continue to simulate money in this living body serves as blood.

There are three important questions they need to answer simultaneously throughout the business. These are the

questions;

Which goods?

How?

For whom?

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INCOMES EXPENSES REVENUE

S

COSTS

 



 



 

 





Home Administrations





 



Enterprises

Goods and Services Market





Production Factors Market

Nature Capital

Labor







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HAYVANCILIK EKONOMİSİ DERS NOTLARI HAYVANCILIK EKONOMİSİ DERS NOTLARI

As seen in the figure, enterprises demand the factors of production that they need to produce a certain good from the market of production factors. On the other hand, the people present the factors of labor, capital and nature to the market of production factors. The enterprises that make up the economic goods present their products to the goods and services market. Consumers demand these goods from the same market. This is the way of circulation between business and economy.

The growth and development of an economy is the growth and the increase in the scales of the enterprises operating in that economy. For this reason, in developed economies, businesses are growing both in number and scale. Business structures are becoming rational to operate continuously and at full capacity.

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HAYVANCILIK EKONOMİSİ DERS NOTLARI HAYVANCILIK EKONOMİSİ DERS NOTLARI

In other words, enterprises can be classified according to the type of production, to the ownership of production factors, to the size of enterprises, to legal privileges and so on.

Another mode of operation is cooperative enterprises;

cooperative enterprises are divided into two: these;

Production cooperative enterprises Consumer cooperative enterprises

Main principles that should be dominated by businesses;

It is the principle of economics and profitability.

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HAYVANCILIK EKONOMİSİ DERS NOTLARI HAYVANCILIK EKONOMİSİ DERS NOTLARI

BUSINESS TYPES

Businesses can be classified in various ways. For example, businesses can be classified according to sectors such as agriculture, animal husbandry, industry, trade and services, or according to legal privileges such as joint

stock company, limited liability company, sole proprietorship, ordinary partnership etc.

In Turkey, enterprises can be classified as small, medium and large scale according to labour number that work in businesses. In addition, it may be three kinds of business in Turkey, according to another classification. These

are:

- Private sector enterprises,

- Public sector enterprises (SEEs), - Foreign capital enterprises.

- In the international classification, enterprises are first divided into sectors (agriculture, animal husbandry, etc.) and then each sector is divided into sub-sectors.

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HAYVANCILIK EKONOMİSİ DERS NOTLARI HAYVANCILIK EKONOMİSİ DERS NOTLARI

If we formulate profitability;

R=

^Profit

Capital

X 100

Profitability (profitability)

is defined as the ratio of the profit that an enterprise provides at a given time to the capital used in that enterprise.

Productivity is an important factor to be taken into consideration in today's enterprises. In the past, classical economists gave great importance to the profitability factor in the enterprise, but they did not consider the importance of productivity.

However, in today's business, it is understood that both factors

are important.

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HAYVANCILIK EKONOMİSİ DERS NOTLARI HAYVANCILIK EKONOMİSİ DERS NOTLARI

P = ^(Output)

(Input)

Productivity refers to the relationship between product (production) and the factors used to achieve this product.

Production factors should be combined to achieve the highest yields. In this case, productivity is the measure of the success of production.

The outputs of the livestock sector (meat, milk, eggs, skin

intestines, etc.) are the inputs of other sectors. If there is

higher output of the livestock sector, there can be the

higher output of the other sectors, so economic

development can take place.

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HAYVANCILIK EKONOMİSİ DERS NOTLARI HAYVANCILIK EKONOMİSİ DERS NOTLARI

In addition to healthy nutrition, the livestock sector has assumed important economic functions in terms of national development.

These economic functions are;

1. Supply of raw materials to industry

2. Increasing national income and improving export

3. Creating new employment areas for industry and services sector

4. Improving employment in rural areas

5. Ensuring social and economic interregional development in balance

6. Ensuring the stability of national development through

balanced cross-sectoral development

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HAYVANCILIK EKONOMİSİ DERS NOTLARI HAYVANCILIK EKONOMİSİ DERS NOTLARI

Considering shown as distributions of bovine available in Turkey, enterprises with between 1-4 bovine animals it is seen that constitutes 59.7 percent of the current. The proportion of enterprises with 5-9 bovine animals is 25.6%, the proportion of enterprises with 10-19 bovine animals is 11.2%, while the proportion of enterprises with 20 and above bovine animals is only 3.5%.

When the distribution of sheep and goats is examined, the

enterprises with 50-100 animals constitute 33.46% of the existing

enterprises. This group is followed by those having animals

between 1-19 heads with 31.55% and those having animals

between 20-49 heads with 26.39%. Accordingly, the rate of

enterprises having more than 100 ovine animals in our country is

as low as 8.90%.

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HAYVANCILIK EKONOMİSİ DERS NOTLARI HAYVANCILIK EKONOMİSİ DERS NOTLARI

Socio-economic structure of livestock enterprises can be examined and analyzed according to 3 different criteria. These are;

1. According to undertaking sectors,

2. According to production shapes and features, 3. According to the economic scale

For example, according to the undertaking sectors of the enterprise, livestock enterprises consist of 2 sub-sections. These are;

1. Private sector (public) livestock enterprises

2. State livestock enterprises

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HAYVANCILIK EKONOMİSİ DERS NOTLARI HAYVANCILIK EKONOMİSİ DERS NOTLARI

Enterprises are divided into 3 groups according to the shape and characteristics of production.

1. Main (cattle and ovine) livestock enterprises, 2. Poultry enterprises,

3. Fisheries and fishing enterprises.

According to economic scales;

1. Small scale

2. Medium scale

3. Large scale

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HAYVANCILIK EKONOMİSİ DERS NOTLARI HAYVANCILIK EKONOMİSİ DERS NOTLARI

Large and ovine livestock enterprises, which are classified as enterprises according to undertaking sectors, consist of 3 sub-socio- economic groups. These are;

-Village livestock enterprises,

- Large herd enterprises in extensible structure, - Large capital enterprises in intensive structure,

Village animal husbandry enterprises are the traditional structure,

with lack of economic consciousness and scientific, insufficient

production outward throughout the country. They do not have

sufficient information about the price, quantity and quality trends of

the consumer markets. Since the terminal is far from the market,

they need a large number of intermediary services to market their

products. It is very difficult to assess the labor of the producer.

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HAYVANCILIK EKONOMİSİ DERS NOTLARI HAYVANCILIK EKONOMİSİ DERS NOTLARI

Large herd enterprises in the extensible structure are rational enterprises in which production is carried out in bulk. There is a specialization in the field of handling, management and nutrition of the herd, evaluation and marketing of the products. It is the business of large family groups in Eastern and Southeastern Anatolia Regions.

Large capital enterprises in the intensive structure are intensive

enterprises that require large investment. They are concentrated

close to the terminal market and have sufficient knowledge of the

quantity, price and quality trends of the consumer market. Terminal

market means the last market. It is the irreversible market in which

the producer has to accept the prices formed in the market.

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HAYVANCILIK EKONOMİSİ DERS NOTLARI HAYVANCILIK EKONOMİSİ DERS NOTLARI

These businesses can be divided into four groups:

1. Cattle fattening enterprises 2. Lamb fattening enterprises

3. Integrated beef-delicatessen enterprises 4. Intensive dairy cattle enterprises

Cattle fattening enterprises consist young calf and fattening

cattles. These enterprises, which carry out fattening activities

according to the genetic structure, fattening performance and

economic conjuncture of the fattened animals, are generally

rational enterprises at the national level.

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HAYVANCILIK EKONOMİSİ DERS NOTLARI HAYVANCILIK EKONOMİSİ DERS NOTLARI

Lamb fattening enterprises are mostly fattening enterprises specific to Thrace, Marmara and Aegean Regions. Lambs usually feed for 3-6 months and gain live weight to market.

Integrated beef-delicatessen enterprises are capital-intensive large enterprises. These enterprises are economic units which have integrated fattening and industry evaluation together and have higher economic efficiency than other fattening enterprises.

On the other hand, intensive dairy cattle farms were

established in the vicinity of large consumption centers as well as

in the regions where the dairy industry is concentrated. In

particular, these enterprises, where culture cattle are dominant,

are rational enterprises integrated with dairy industry enterprises.

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HAYVANCILIK EKONOMİSİ DERS NOTLARI HAYVANCILIK EKONOMİSİ DERS NOTLARI

Poultry enterprises;

Chicken, duck, goose breeding enterprises are examined in this group. Poultry holdings in poultry holdings can be considered in two socio-economic groups.