Calculation of economic indicators in cattle breeding
|Cathegory||Methodologies and software|
The methodology is intended for farmers of dairy and suckler cows to provide basic and new information about possibilities of evaluation the economic efficiency of their farm. Farmers can calculate besides costs, revenues and profit also contribution margin, opportunity cost and break-even point. Quantification of contribution margin can also be used to compare own results with competitors within EU member states as well. In the methodology are newly presented methods of calculation the break-even point of price and production, ie. situation where the costs are equal to the revenues and therefore the profit is equal to zero. Farmers provide information about possibilities on how to achieve a positive profitability. The methodology also describes methods of calculating the sensitivity analysis that will allow responsible staff to estimate future economic variables when changing input parameters. The methodology provides clear guidance on the calculation of all costs and revenues, thus giving a real view of the farming practices in dairy and suckler cows and facilitates the farmers’ further decision making.
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