The Economic Evaluation and Financial Analysis of Dairy Farms in Chahar Mahal and Bakhtiari Province (Case Study of Shahrekord County)
Journal Title: Applied Science Reports - Year 2013, Vol 1, Issue 3
Abstract
This study aimed to measure total factor productivity by considering two new approaches in industrial dairy farms in Shahrekord County. The necessary data were collected through completion of questionnaire from 40 dairy farms by stratified random sampling method in the year 2012. In this study, the cost of foods, Initial cost of milk production, net present value of (NPV), total factors productivity (TFP) and Break-Even point (BEP) for milk production were investigated. The results showed that average gross income and total production cost were less in small and medium farms as compared to large farms. Financial and economic indicators showed the average profitability and financial feasibility of these types of activities and we founded those Policies to maintain stable revenues from the dairy farm inputs prices were higher priority than stability for Production inputs. It was mainly in the higher unit capacity, the net present value of the project increases. The results showed that TFP index of the farms studied was equal to 1.34.The cost of food on, Industrial, semi-industrial and traditional factory farms is 4850, 4503 and 4401 Rials per kg of milk respectively. Also Break-Even Point analysis of milk price per year for each unit of industrial, semi-industrial and traditional on 2012 was 6586.8, 6558.32 and 6213.95 Rials respectively. Sell for less than these amounts lead to economic losses for farmers and Production units will not be able to recoup their fixed and variable costs. In summary, if dairy projects are analyzed based on the financial evaluation, Economic evaluation will have a greater profitability and this has been indicated that assistance from the government is supporting these units.
Authors and Affiliations
Mohammad Reza Mahmoodieh, Yaser Rahimian, Fatemeh Asgarian, Ali Rafiee , Ghorban Ali Hadadi, Hossein Ghaedi
Keywords
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