A Study on Profitability of the Japanese Brown Calf Raising

Lee Byung-Oh, Tsuchiya Keizo

doi:10.15017/22297

It cannot be emphasised too much that calf raising must be based on grass utilization, since only with this we can increase the producers' income and also can supply more beef to consumers at inexpensive prices. Japanese Brown Cattle is recognized as a breed of high utilization of roughage and of excellent daily gain of body weight. The objective of this study is to analyze the profitability of Japanese Brown Calf raising in Kumamoto Pref., a main raising provine in Japan. Farm records for the period 1976-1980 from the Survey on Production Cost of Japanese Brown Calves conducted by the Ministry of Agriculture, Forestry and Fisheries of Japanese (MAFFJ) provided the data for this study. The results of calf raising farms are small scale and are operated in combination with rice production etc. In 1980, average number of breeding cow per household was 3.9 heads. 2. Comparing the production costs and profitabilities among three types of operations such as grazing with rice production (Aso district), grazing with upland field cropping (Takamori district) and housing with rice production (Yabe district), a little diference was found out. One reason for this is longer accounting period of calf production in grazing districts. Secondly in the case of grazing districts, the input invested in purchasing feed and in family labor in order to raise high price calves is more than that in housing district. 3. Accouning period of production cost is dependent on managerial ability and opening times of calf marketing. The ideal accounting period of calf production is one year. 4. Atheoretical survey about economies of scale was carried out. Also, small scale calf raising possessed scale merit. 5. The profitability of calf raising was in very low levels compared with other agricultural and livestock products. The ratio of calf price upon secondary production cost was highly correlated with income. 6. Ammendment of the formal method of the calculation of the profitability by adding self-supplied indirect labor cost about forage crops, pasture and mowing grassland to income and family labor earning accounts for to a certain degree the existence of small scale calf raising. 7. Fluctuation of calf prices and habit of meat assessment by marbling to excess restricted the size enlargement of calf raising.

A Study on Profitability of the Japanese Brown Calf Raising

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