Assessment of business efficiency of scaling broodstock production in the USA for European demand

Abstract

In the context of globalization, optimizing international agricultural supply systems is critical for competitiveness, especially in the high-quality genetics segment. Growing European demand for breeding queens, combined with the significant production potential of the US, is shaping new strategic trade directions that require comprehensive economic justification.

The purpose of this article is to justify the economic efficiency and identify the determinants of scaling up the production of breeding stock in the US for export to Europe, given the lack of an integrated assessment methodology that combines production, logistics, regulatory, macroeconomic, and sociocultural aspects.

The study is based on a systematic approach. Scenario analysis and sensitivity analysis were used to determine the impact of external factors on financial indicators. Macroeconomic, operational, logistical, veterinary and sanitary, and geopolitical risks were identified and classified. An analysis of the US’s production advantages in animal genetics and resource supply, as well as the challenges of transcontinental logistics and EU regulatory requirements, was carried out.

The results indicate that scaling up the production of breeding stock in the US has significant economic potential due to the country’s undisputed leadership in genetics and the high efficiency of production processes. However, this potential is limited by significant logistical and veterinary and sanitary barriers, which necessitate significant adaptation measures and operational costs. The efficiency of supply depends on the ability to overcome EU regulatory requirements.

The conclusions summarize that the success of breeding queen bee exports from the US to Europe depends on effective management of logistical risks, adaptation to strict regulatory requirements, and consideration of specific market conditions. The implementation of comprehensive risk management strategies and investments in infrastructure are crucial for achieving long-term profitability and competitiveness, opening up new prospects for the development of transcontinental agricultural supply systems.