THE IMPACT OF ENERGY COST ON THE COST OF LIVESTOCK PRODUCTION

This article proposes a modified method for calculating specific energy intensity and constructs a panel cost model to analyze the impact of energy costs on the cost of milk and meat. The modification was implemented to assess the impact of direct and indirect energy costs on the cost of livestock production. The data source used was reports from 26 agricultural enterprises of various types in southern Russia for the pe-riod 2022–2024, as well as tariff and agricultural statistics data. The relevance of this issue is that farms annually consume 930–1,540 kWh per head of cattle. Pig farming requires 28.7–48.7 kWh to raise one animal from birth to fattening, depending on the housing system. In cow-calf systems, total energy consumption varies from 3,000 to 12,600 megajoules per head of cattle per year, with indirect energy costs for feed ac-counting for the largest portion. Energy costs affect production through direct operat-ing costs (heating, ventilation, lighting, equipment) and indirectly, through feed costs. Methods include elimination, numerical modeling, scenario analysis, and calculation of energy costs in physical units. A methodology for accounting for indirect energy costs is proposed. A factor model has been built that allows for a quantitative assess-ment of the impact of energy prices on production costs, highlighting differences by farm type. Practically significant results of a scenario analysis have been obtained for energy cost increases (10%, 20%, 50%), highlighting differences by enterprise type. The methodology for accounting for indirect energy costs (feed production, transport) has been refined. A model has been built that allows for studying energy price increase scenarios and assessing differences by farm type. A positive and statis-tically significant relationship has been established between the specific energy cost and production costs; With a 10% increase in energy prices, the average cost of live-stock production increases by 1.26%, while with a 20% increase in energy prices, the increase is 2.63%. We summarized various energy costs in standard physical units (J, kWh). We developed a methodology for accounting for direct and indirect energy costs at the enterprise level. The research results can serve as the basis for proposals for energy conservation and support measures for livestock production to improve its sustainability.