Good Practice - Project
Mozsi Croft - Limousin beef breeding farm
A livestock farm uses CAP funds to realise several investments that will improve its competitiveness and create new jobs.
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
József Mozsgai and his wife, and business partner, left behind Budapest city life in 2011, at the age of almost 40, when they set about creating their Limousin free-range beef cattle farm. The farm was built in Sellye, in southern Hungary, where József's father had some pastures that had been left fallow. With financial support in the form of three separate EAFRD grants, received under the Rural Development Programme (RDP) measure ‘modernisation of animal farms’, the couple were able to create and enhance their now-successful farm business. The first grant supported them through the initial difficulties of establishing the farm, whilst subsequent funding has allowed them to invest in modern equipment. Over time, their hard work and dedication have turned the farm into a thriving, sustainable business that now operates in harmony with the surrounding environment.
Results
- The business investments have not only led to an overall reduction in maintenance costs but have also resulted in greater efficiency and an improvement in the quality of the fodder. Further improvements in the feeding process and animal hygiene have led to healthier and faster growth of the cattle. As a result, the quality and the value of the farm’s produce have increased.
- The investments have created two sustainable full-time jobs.
Promoter
Mozsgai József
Funding
Investment 1
Total budget: 85 000 (EUR)
EAFRD: 34 000 (EUR)
National/Regional: 8 500 (EUR)
Private/own: 42 500 (EUR)
Investment 2
Total budget: 110 000 (EUR)
EAFRD: 44 000 (EUR)
National/Regional: 11 000 (EUR)
Private/own: 55 000 (EUR)
Context
Looking to escape ‘the rat race’, József Mozsgai and his wife traded their office jobs in Budapest for 30 hectares of overgrown pasture inherited from József’s father, located just a few kilometres from the Croatian border in southern Hungary. Their aim was not just to farm the land, but to establish a meaningful way of life that was both environmentally sustainable and economically viable. They had always wanted to deal with cattle, but as their farm area was too small to start producing goods, they decided instead to focus on raising and selling high-value breeding animals.
The Limousin breed was ideal, being strong, disease-resistant and easy to calve, with good meat production. The couple began with 15 heifers and one bull as they set about clearing and cultivating the land. They soon expanded to 40 hectares and eventually acquired a further 18 hectares of arable land and six hectares of Natura 2000 grassland.
They built their infrastructure from the ground up, and the early years were very hard. However, through perseverance and with the help of an old Soviet-era tractor, the couple managed to prioritise green, sustainable investments, which have ensured their long-term success. Their journey highlights not only a commitment to sustainable farming but also the potential of rural revitalisation.
Objectives
The primary objective was to establish a sustainable livelihood by investing in the essential machinery and tools needed to operate a modern, efficient livestock farm. Further investments aimed to ensure the farm's self-sufficiency, reduce reliance on external contractors, improve product quality, and ultimately increase market competitiveness.
Activities
Since establishing their farm, the couple has submitted three successful applications for European Agricultural Fund for Rural Development (EAFRD) support under the measure ‘Modernisation of animal farms’. The first was implemented when the farm was founded, creating the initial conditions for a start-up business.
The second was implemented during 2018-2020, and enabled the farmers to purchase a baler, a mower and a hay tedder. They chose the reliable, German ‘Krone’ brand with 80 and 110 horsepower engines to replace their old machines, knowing that these would serve them well for years to come.
The most recent batch of funding was awarded in 2021-2022 to cover the replacement of the farm’s ‘antique’ tractor with a 110 horsepower John Deere tractor and the purchase of a high pressure hot water washer, a 50-animal neck holding system, and a front-end loader with digital scales (allowing them to measure how much hay was brought in from which area and identify bales that may be more prone to mould).
Main results
- Thanks to the investment realised between 2018 and 2020, fodder harvesting, which had previously been done by hired labour, became a task that the farmers could carry out themselves. This not only resulted in a cost reduction in terms of farm maintenance but also led to an improvement in the quality of the fodder. The reliance on external contractors, who must be booked in advance for a fixed date, meant that the farmers could not be sure that the work would be carried out in ideal weather conditions. Wet straw bales gathered on rainy days become mouldy during storage, so with this investment, the vulnerability of the farm was reduced.
- Thanks to the next investment, implemented between 2021 and 2022, they were able to improve the feeding process itself, which also improves animal hygiene, leading to healthier and faster growth.
- Overall, these two initial investments have enabled the farmers to increase their herd of mother cows from 25-30 to 45-50, resulting in 32-38 healthy calves being produced every year. Thanks to the increased quality of these healthier and stronger cattle, the farmers can sell them at a higher price.
- Thanks to careful choices and targeted investments, the EAFRD support has enabled two full-time jobs, making rural life viable for József and his wife.
- Despite inflation making exact comparisons difficult (as all products have become more expensive), the price of a breeding bull has nearly doubled since 2017: from EUR 2 400 in 2017 to EUR 4 600 in recent years, indicating strong returns on investment.
Key lessons
- So far, the farmers’ goals have been achieved, except where external issues have caused complications. Unfortunately, the most recent plan to acquire new machinery had to be postponed due to inflation, which raised prices beyond the couple's budget.
- József and his wife are unable to increase their breeding capacity further, as they are now utilising the maximum area available to them. Their farm of pasture and arable land is surrounded by forests, which they would never seek to convert for the sake of growing their business.
Project applications must be planned realistically, ensuring that at least 80% of the foreseen activities are completed. The non-fulfilment of planned investments results in serious financial penalties, so it is better to plan for several smaller projects and proceed step by step. Within a given project, milestones should be planned in a way that prioritises implementing elements that could potentially generate more income.
Mozsgai József