74880 - Economics Of Livestock Production

Learning outcomes

At the end of the course, the student will have knowledge of the animal production system within the broader economic dynamics of development. They understand the market for products and production inputs as a space where supply and demand meet and interact. They are familiar with national and EU policies and regulations related to animal production.

In particular, the student is able to:

• Analyze sectoral interdependencies within the agro-livestock-food system

• Analyze productive and environmental interdependencies

• Use aggregate and business-level economic functions to identify criteria for the technical and economic planning of primary production, processing, and distribution enterprises

• Apply methods for analyzing the efficiency of choices

• Manage business organizational systems

• Handle the economic aspects of genetics, nutrition, and animal health

By the end of the course, the student will also have learned the concept of business economics within institutions and society. They will understand what is meant by an economic entity and models of governance, as well as business strategies, organizational structures, the financial statement model, economic performance analysis, and the system of financial ratios. They will also learn accounting tools to support economic decision-making.

In particular, the student will be able to:

• Analyze the main economic elements that characterize business activities

• Determine revenues and costs

• Apply the financial statement tool to guide economic decisions

Course contents

Course Presentation

Review of Basic Concepts in Political Economy:

• Market equilibrium and the choices of economic agents

• Utility and consumer behavior

• Production theory and cost analysis

• Demand, supply, and the concept of elasticity

• Market structures

Management of animal farm businesses:

• The business system and economic management of animal farms

• Definitions, classification, and legal forms ofanimal farm businesses

• Aspects of business management: financial, economic, and asset management; financial and economic equilibrium of animal farm businesses

• The production cycle and factors of production in animal farms

• Determination of production value and production costs in animal farms

• Animal farm income and remuneration of production factors

• Accounting System and Economic Performance Evaluation of Agro-Livestock Enterprises: General and analytical accounting and their purposes; The financial statement; Reclassification and analysis of the balance sheet and income statement; Assets and liabilities in the balance sheet; Revenues and costs in the income statement

• Evaluation of Business Efficiency: Financial ratios related to balance sheet and income statement components

• Economic Analysis Tools and Techniques for Production: Production costs, gross margin, partial budgets

• The concept of added value and its application for tax purposes

• Economic and Financial Feasibility Analysis of Investments: Business plan, cash flows, consideration of the time factor, and investment evaluation criteria; Risk and uncertainty in business investment evaluation

Agri-Food System, Animal Production Supply Chains, and Sector Policies:

• Concepts of the agri-food system and product supply chains

• The role of the agri-food sector in the national economy

• Agricultural, industrial, and distribution components of the Italian agri-food system

• The competitiveness of the Italian agri-food sector in international trade and the role of animal-origin product supply chains

• Animal-Origin Product Supply Chains: Milk and dairy products, beef, pork, poultry and eggs, sheep and goat milk and meat, and less economically significant animal chains

• Policies for the Livestock Production Sector

Animal Health Economics:

• Economic analysis of animal disease control: basic theoretical elements

• Control of animal diseases: private and public utility aspects

• Animal health in the context of humans, wildlife, and the environment: the One Health approach

• Economic analysis of zoonoses and evaluation of interventions from a One Health perspective:

  • Cost analysis

  • Cost-effectiveness analysis

  • Cost-utility analysis

  • Cost-benefit analysis

• Risk and Uncertainty in Evaluating Interventions: Deterministic and probabilistic sensitivity analysis

Readings/Bibliography

Lectures' notes (downloadable from the UNIBO teaching platform "Virtuale")

Teaching methods

During the course, case studies on issues related to the management of animal farms and sector policies will be examined and discussed.

Assessment methods

The exam is conducted through a multiple-choice test. The test consists of 30 questions to be answered within a maximum time of 30 minutes. Scoring Criteria:

• 1 point is awarded for each correct answer

• 0.5 points are deducted for each incorrect answer

• 0 points are assigned for unanswered questions

The final score will correspond to the total number of points earned, rounded down to the nearest whole number. The exam is considered passed with a minimum score of 18 out of 30.

At the student’s request, if the written test is passed, the instructor may supplement the test with one or more oral questions. Honors (cum laude) may be awarded with a score of 30/30 on the written test, supplemented by an oral exam.

The evaluation of the oral component will take into account the student’s knowledge of the topics covered in class and his capacity to master the subject-specific terminology

The development of activities during class, as agreed upon with the instructor, may also contribute to the final grade, based on methods defined on a case-by-case basis.

Teaching tools

Distribution of teaching materials and teaching assistance through the Unibo's web platform "Virtuale"

Office hours

See the website of Massimo Canali