THE EFFECTIVENESS OF THE PROJECT TO IMPROVE THE SAFETY OF REINDEER HERDS

DOI 10.32651/2310-67

Issue № 10, 2023, article № 12, pages 67-72

Section: Agrofood market

Language: Russian

Original language title: ЭФФЕКТИВНОСТЬ ПРОЕКТА ПОВЫШЕНИЯ СОХРАННОСТИ ПОГОЛОВЬЯ СЕВЕРНОГО ОЛЕНЯ

Keywords: REINDEER GRAZING DOG, KENNEL, INVESTMENT PROJECT, PROJECT FEASIBILITY, FAIR DISTRIBUTION OF BENEFITS

Abstract: Improving the safety of the reindeer population is one of the most important factors in the restoration and development of reindeer husbandry. The organization of grazing has a significant impact on the safety of livestock. To solve this problem, it is necessary to improve the quality of reindeer herding dogs used by reindeer herders. To this end, it is required to implement a project to create a kennel for breeding and training Nenets huskies for the subsequent sale of dogs to reindeer herding farms in the Far North. The main potential beneficiaries of the project, in addition to its initiator, are reindeer herding farms, which will acquire specially bred and trained dogs for grazing reindeers. The assessment of the effectiveness of the kennel construction is carried out according to the international methodology for the analysis of investment projects, using dynamic indicators that take into account future financial benefits, capital and operational expenses, as well as lost net benefits from alternative use of capital and in case of rejection of the project. The effects are evaluated both for the initiator of the project and for its other participants. A mechanism is proposed for the fair distribution of project revenues among participants by equalizing their Benefit / Cost Ratios. The results of cash flow calculations indicate the significant effectiveness of the project for reindeer herders who purchase dogs in the kennel, which is achieved by increasing the safety of the reindeer population. However, the feasibility of the project remains doubtful for the initiator of the project, which involves the construction of the kennel, unless an agreement is reached on participation in its financing by the main beneficiaries (reindeer herding farms). The study showed that the participants would be financially interested in the joint implementation of the project if the capital investments for the creation of a kennel are distributed in proportion to the number of dogs purchased, taking into account the dynamics of additional income from improving the safety of the reindeer population.

Authors: Koshelev Valerii Mikhailovich, Frolova Arina Petrovna