Good Practice - Project
CAP results help reduce vulnerability of beef farming in disadvantaged areas of Bulgaria
Investing in quality beef husbandry to attract premium prices and protect economic resilience for the EU meat sector.
General information
RDP Priority
- P2. Competitiveness
RDP Focus Area
- 2A: Farm’s performance, restructuring & modernisation
RDP Measure
- M04: Investments in physical assets
Beneficiary type
- Farmer / land manager
Summary
Commercial agrifood opportunities are possible from farm developments that improve product quality. Beef quality can help livestock farmers in disadvantaged areas and other rural territories to secure and safeguard market positions that command premium prices. This ultimately contributes to the sector's resilience against external threats.
A beef farmer from Bulgaria recognised the economic potential of investing in quality production and prepared a business strategy to increase CAP funding support for this purpose. Nikolay Dimov had been receiving CAP income support for his beef herd in an area with natural constraints. He secured additional CAP support for his investment project to restructure, modernise and improve the farm’s efficiency, productivity and production conditions with new technologies.
Results
One new agricultural job resulted from this rural development investment project and other outcomes include better production of high-quality animal products and livestock feed, thanks to:
- Improved overall farm activity and competitiveness.
- Lower production costs per unit.
- Enhanced husbandry conditions.
- Increased livestock nutrition and health.
Promoter
Nikolay Dimov
Funding
Total budget: 566 454 (EUR)
EAFRD: 289 049 (EUR)
National/Regional: 51 008 (EUR)
Private/own: 226 397 (EUR)
Resources
Links
Context
The EU beef sector faces challenges from climate change, market volatility, health impacts and increasing demand for sustainable practices from both consumers and governments. Investing in quality beef production can serve as a strategic response to these challenges by reducing vulnerability to price instability and fluctuating profitability.
By enhancing production processes to improve quality and welfare standards and adopting sustainable farming practices, beef farmers can align with consumer preferences while improving product quality. Investment in technology-driven solutions such as precision agriculture can further optimise beef husbandry. This can aid access to commercial opportunities, such as promoting high-quality beef through certification schemes to secure and safeguard market positions and command premium prices, ultimately contributing to the sector's resilience against external threats.
A beef farmer from Bulgaria recognised the business potential of investing in quality production and prepared a strategy to increase CAP funding support for this purpose. Nikolay Dimov had been receiving income support from the CAP for his beef herd of Bulgarian cattle crossbred with Gascon heifers from France, and he also owned four purebred Aberdeen Angus bulls. He has pioneered no-till technology, and a large part of his farmland is in areas with natural disadvantages, which are awarded higher compensatory rates under CAP funding.
Nikolay was aware that prospects for his farm and the wider Bulgarian beef sector are influenced by high EU production standards, price volatility, more frequent and severe meteorological events, and sanitary and phytosanitary crises affecting livestock and agronomic assets. A funding application was prepared for CAP farm investment support to reflect this market-led operational context.
Objectives
Nikolay’s ‘Agroles Dimov’ company received CAP funds with aims for investing in restructuring, modernisation and new technologies to improve the farm’s efficiency, productivity and production conditions.
Specific objectives of this investment project included adapting the farm to market trends and the growing demand for high-quality meat, and protecting against the negative effects of higher market risks, price instability, more frequent and severe natural events, and sanitary and phytosanitary crises that may affect production.
Activities
The farmer used CAP co-finance to help cover the costs of equipment purchase for a forage mixing trailer with a patented mechanism and a patented mixing system, a hay rake, two mowers, a straw baler, a belt sprinkler, a vertical multistage pump, a diesel engine pump for supplying two tubular roller sprinklers, and a photovoltaic system to improve energy autonomy.
In 2017, the farm invested in German beef Simmental dams and Aberdeen Angus dams, as well as eight Aberdeen Angus, Limousin and Simmental bulls from Ireland.
Grant rates covering up to 60% of the project’s eligible costs were available in Nikolay’s case because his land is designated as an area with natural constraints.
Main results
One new agricultural job resulted from this rural development investment project and its other important outcomes include better production of high-quality animal products and livestock feed, thanks to:
- Improved overall activity and competitiveness of the farm through restructuring to develop existing capacities by introducing new processes, equipment and technologies.
- Reduced production costs due to reduced dependence on external suppliers of goods and services.
- Lower unit production cost due to refinements that optimised feeding, mowing, hay collection, pasture management and the use of the sprinkler irrigation system.
- Enhanced husbandry conditions in terms of hygienic, veterinary, phytosanitary and environmental factors.
- Increased nutrition and health of cattle from patented feeding technology.
Key lessons
- Premium prices for quality beef cattle require serious investments in purebred animals, restructuring, modernisation, new technologies, machinery and equipment to support the growing livestock activity.
- This is a good example of a sustainable farming model that is even possible in disadvantaged rural areas.
- The project demonstrates how CAP contributes to the development of rural areas and allows farming decisions to be driven more by market-oriented thinking rather than reliance on public subsidy.
If an entrepreneur is convinced of a given concept, has the vision and courage to realise the idea and is persistent, this can lead to impressive results.
Thanks to grant financial support, breeding herds have been created that will contribute to increasing the efficiency of beef cattle breeding in Bulgaria. This farm is a model of measured risk-taking, based on investments in established beef breeds.