Definition: Fixed asset livestock
Gross fixed capital formation for livestock corresponds to the following elements:
· the annual growth of livestock (until they reach maturity);
· livestock acquisitions (imports) less disposals (slaughterings and exports);
· the costs associated with the transfer of ownership incurred in trade between agricultural units.
In accordance with the ESA 95, gross fixed capital formation for livestock is a measure of the difference between livestock acquisitions (natural growth and imports) over the year, including those resulting from own-account production, and livestock disposals (for slaughter ( ), export or any other final use), to which is added the cost of transfer of ownership. GFCF for livestock occurs throughout the animal's life. To begin with, the GFCF mainly consists of the natural growth of the animal. When it reaches the age of maturity, the GFCF is mainly measured by way of disposals (sales for slaughter or export). Imports, exports and costs associated with the transfer of ownership are components of GFCF for livestock which are likely to occur throughout the animal's useful life. The natural growth of livestock (and not the GFCF as a whole) constitutes own-account agricultural production of fixed assets in livestock.
Eurostat, "Manual on the economic accounts for agriculture and forestry EAA/EA 97 (Rev. 1.1)", Luxembourg, 2000