Economic effects of investment in dairy farming
Abstract
Dairy farming is the most significant part of cattle raising. During the previous several years the volume of milk production has been maintained at a stable level, while there came to fall in number of dairy cows and number of farms engaged in dairy farming. Although the farms that own just a few heads of dairy cows usually step out the milk production, there are still a small number of farms specialized in dairy farming. The main paper objective is to present the economic effects of investment in the construction and equipping of dairy farm adequate for raising of 12 dairy cows. Economic analysis was based on the use of static and dynamic methods for investment assessment. Besides, there is also conducted the analysis of investment under the risk conditions (use of the break-even analysis). According to gained results (e.g. Internal rate of return, 11.98%, positive value of the Net present value, Payback period shorter than 5 years) the investment implementation is economically justi...fied.
Keywords:
Republic of Serbia / NPV / milk production / economic effects of investmentSource:
Western Balkan Journal of Agricultural Economics and Rural Development, 2020, 2, 2, 135-146Publisher:
- Institute of Agricultural Economics, Belgrade
Funding / projects:
Collections
Institution/Community
Istraživačko razvojni institut TAMIŠTY - JOUR AU - Subić, Jonel AU - Nastić, Lana AU - Roljević Nikolić, Svetlana PY - 2020 UR - https://intam.institut-tamis.rs/handle/123456789/203 AB - Dairy farming is the most significant part of cattle raising. During the previous several years the volume of milk production has been maintained at a stable level, while there came to fall in number of dairy cows and number of farms engaged in dairy farming. Although the farms that own just a few heads of dairy cows usually step out the milk production, there are still a small number of farms specialized in dairy farming. The main paper objective is to present the economic effects of investment in the construction and equipping of dairy farm adequate for raising of 12 dairy cows. Economic analysis was based on the use of static and dynamic methods for investment assessment. Besides, there is also conducted the analysis of investment under the risk conditions (use of the break-even analysis). According to gained results (e.g. Internal rate of return, 11.98%, positive value of the Net present value, Payback period shorter than 5 years) the investment implementation is economically justified. PB - Institute of Agricultural Economics, Belgrade T2 - Western Balkan Journal of Agricultural Economics and Rural Development T1 - Economic effects of investment in dairy farming EP - 146 IS - 2 SP - 135 VL - 2 DO - 10.5937/WBJAE2002135S UR - conv_143 ER -
@article{ author = "Subić, Jonel and Nastić, Lana and Roljević Nikolić, Svetlana", year = "2020", abstract = "Dairy farming is the most significant part of cattle raising. During the previous several years the volume of milk production has been maintained at a stable level, while there came to fall in number of dairy cows and number of farms engaged in dairy farming. Although the farms that own just a few heads of dairy cows usually step out the milk production, there are still a small number of farms specialized in dairy farming. The main paper objective is to present the economic effects of investment in the construction and equipping of dairy farm adequate for raising of 12 dairy cows. Economic analysis was based on the use of static and dynamic methods for investment assessment. Besides, there is also conducted the analysis of investment under the risk conditions (use of the break-even analysis). According to gained results (e.g. Internal rate of return, 11.98%, positive value of the Net present value, Payback period shorter than 5 years) the investment implementation is economically justified.", publisher = "Institute of Agricultural Economics, Belgrade", journal = "Western Balkan Journal of Agricultural Economics and Rural Development", title = "Economic effects of investment in dairy farming", pages = "146-135", number = "2", volume = "2", doi = "10.5937/WBJAE2002135S", url = "conv_143" }
Subić, J., Nastić, L.,& Roljević Nikolić, S.. (2020). Economic effects of investment in dairy farming. in Western Balkan Journal of Agricultural Economics and Rural Development Institute of Agricultural Economics, Belgrade., 2(2), 135-146. https://doi.org/10.5937/WBJAE2002135S conv_143
Subić J, Nastić L, Roljević Nikolić S. Economic effects of investment in dairy farming. in Western Balkan Journal of Agricultural Economics and Rural Development. 2020;2(2):135-146. doi:10.5937/WBJAE2002135S conv_143 .
Subić, Jonel, Nastić, Lana, Roljević Nikolić, Svetlana, "Economic effects of investment in dairy farming" in Western Balkan Journal of Agricultural Economics and Rural Development, 2, no. 2 (2020):135-146, https://doi.org/10.5937/WBJAE2002135S ., conv_143 .