Volume 16, Issue 2 (8-2022)                   مرتع 2022, 16(2): 345-358 | Back to browse issues page

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Mofidi-Chelan M. Financial Analysis of Traditional Rangeland-based Livestock Husbandry in Pastoral Units of Sahand Mountain Rangelands. مرتع. 2022; 16 (2) :345-358
URL: http://rangelandsrm.ir/article-1-1089-en.html
Department of Range and Watershed Management, Faculty of Agricultre and Natural Resources, University of Mohaghegh Ardabili, Ardabil
Abstract:   (331 Views)
Background and objectives: Despite implementing rangeland plans, several reports on unfavorable condition of rangeland management are published. This indicates that the pressure on the rangeland is higher than their capacity. Their exploitation did not comply with the scale of its production and not equal to the scientific criteria (Mohamadi et al., 2007). Therefore, the description of the services of rangeland management plans should be revised. During the rangeland’s technical evaluation and issuing livestock grazing license, it paid special attention to the number of herders and suitable rangeland area required by each herder. It is believed that determining the optimal number of livestock is the most important management decision in the production and economy of pastoral units. This decision is very complex and depends on different criteria. Recognizing the costs and revenues of pastoral units for short and long-term planning of rangeland manager and government sectors is important in the basic use and maintenance of rangeland ecosystems.
Methodology: Evaluation and economic analysis of traditional rangeland-based livestock husbandry in pastoral units of Sahand rangelands was the aim of the study. Through stratified random sampling method 45 pastoral units were selected. Finally, the economic evaluation questionnaire was randomly completed by 205 utilizers. Expenses and incomes and Net present value and Cost-benefit ratios of traditional animal husbandry in pastoral units of Sahand rangelands were extracted using questionnaire information. Also, economic rent and expected value from the perspective of Livestock Husbandry and forage production for the mentioned rangelands were calculated. The economic rent is the annual economic profit obtained from selling one product per unit area. Economic rent is calculated by subtracting explicit and hidden costs from the gross income and dividing the resulting value by the surface area. the expected value of each hectare of the investigated rangeland in terms of rangeland-based animal husbandry was determined by dividing the value of the economic rent by the Real discount rate. For calculations related to the economic justification of traditional livestock husbandry in pastoral units of Sahand rangelands, two indices of net present value of profit (NPV) and benefit to cost ratio (BCR) have been used. In the following equation, t is the useful life of the livestock husbandry period, B and C are the profit and cost of livestock husbandry in each year, i is the discount rate and n is the number of years.
                                        
Results: Results showed that the utilizers of pastoral units of Sahand rangelands have an average of 85.19 hectares of rangelands and the average number of livestock for each utilizer in these rangelands is 277. Annually, each utilizer in traditional livestock spends 1994.14 million rials, most of which is related to the supply of feed and manual feeding of livestock. The total income of each operator during the year was an average of 2697.38 million rials, the major part of which is related to the sale of livestock. Economic benefit per utilizer in summer rangelands is 1704.38 million Rials. In the winter sector, the economic loss was estimated at 539.10 million Rials per utilizer. The economic rent of exploiting the pastoral units of Sahand rangelands for animal husbandry was estimated at 8.26 million Rials per hectare and the expected value of these rangelands was 1.53 million Rials per hectare. According to the results of economic justification; In the scenario with a discount rate of 14%, there is 2.712 million Rials and in the scenario with a discount rate of 18%, there is an economic loss of 2.928 million Rials per utilizer. The Cost-benefit ratio in the scenario with a discount rate of 14% was 0.79 and in the scenario with a discount rate of 18% was estimated 0.76, which indicates the economic loss of rangeland-based livestock husbandry units in the pastoral units of Sahand rangelands.
Conclusion: Financial analysis of Traditional Rangeland-based Livestock Husbandry units can provide the necessary information and guidance to the country's rangeland managers and can also be used in the planning and macroeconomic policies of the country as well as the management of Rangeland-based Livestock.In order to achieve the desired economic profitability and reduce livestock pressure on rangelands, the priority of the bureau of Rangeland Affairs should be the preparation of economic rangeland management plans. To achieve this, it is necessary to reduce the costs of livestock breeding by using new technologies and to make rangeland management as an economic activity by using multi-purpose use of rangelands. Cheaper rangeland management, empowerment of rangeland owners and increasing their welfare are the three basic preconditions for economic rangeland management and prevention of rangeland destruction.
 
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Type of Study: Research | Subject: Special
Received: 2021/12/11 | Accepted: 2022/03/19 | Published: 2022/08/1

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