The Insight Into Financial Performance Of “Chiang Mai Fresh Milk Farm” And Small Scale Dairy Farming At Thailand

Seruni, AinunPizar (2015) The Insight Into Financial Performance Of “Chiang Mai Fresh Milk Farm” And Small Scale Dairy Farming At Thailand. Sarjana thesis, Universitas Brawijaya.

Abstract

Research was carried out at at 379/1, (7) Tambon sub district Lauyau district, Banhong-Lamphun province-Thailand 5113. The aim of this research was to determine the income structure and to investigate the dairy farm financial performance. The case study observed two dairy farming types, namely the “Chiang Mai Fresh Milk Farm” and small scale dairy farming. Data were collected from 8th July to 8th August 2014. Primary data involving capital, production costs, revenue were gathered by survey method using a structured questionnaire. Secondary data were obtained from Chiang Mai Fresh Milk Farm data and related sources. Descriptive method vi using the economic formulation, production costs, revenue, profit, Break Even Point (BEP), Margin of Safety (MOS), and R/C ratio. Results declared that the “CFM Farm” represented the profitable enterprise than those of small scale dairy farming that supported by the following financial performance indicators. During one month, dairy farming per animal unit required more capital of 19,626.84 baht and less production costs of 5086.05baht than those 12,303.63 baht and 5286.09 baht, respectively of small scale dairy farming. Hence, more revenue (8503.42 baht) and profit (2989.19 baht) was gained by commercial farm in comparison with small scale dairy farming which yielded 8205.26 baht of milk selling and 2919.18 baht of earning. Study also discovered that the “CFM” farm was efficiently in running the enterprise based on 13.02 baht/kg of BEP, 38% of MOS, and 1.63 of R/C ratio. Small scale dairy farming, however, was considered inefficient in operating the farm since it was appeared less value in BEP (10.31baht/kg), MOS (35.51%), and R/C ratio (1.55).It was suggested to give more attention in dairy cattle replacement management for small scale farming and the culling practice of low production cow for commercial dairy farm.

English Abstract

Dairy farming is one of few options that available to rural residents. The development of dairy farming in Indonesia has shown a positive impact on rural development. This farm can provide steady cash income and employment for rural labour throughout the year, and it can also assist in stabilising household income. In addition, dairy farming unit accounts also one of the sources of income for business unit at Thailand. Among farm enterprises unit, dairy farming dominate in the third position for farm income with providing employment and income on regular basis. Furthermore, incomes generation of dairy farming unit are guaranteed by the availability of dairy milk market. Therefore, dairy viii farming unit is one of few options available to Thailand as promising business unit. The participation of dairy farming scientist in dairying becomes important because it would improve their capability in managing this farming. The good management will lead to good profit obtained by this business unit; the assessment of profit was required since it can use to evaluate the financial position on the farm. Financial performance is explored to make decision whether the dairy farm is feasible operated or the farm has no reason to be continued. The farm performed an eligible business when the profit is positive. On the contrary, negative profit represents the loss business, and therefore, dairy farming has no reason to operate. “Chiang Mai Fresh Milk” and small scale dairy farming farm will recognize as profitable business since they can efficiently allocate their asset for operating dairy farm. This research was conducted at “Chiang Mai Fresh Milk Farm” and small scale dairy farming where located in 379/1, (7)Tambon sub district Lauyau district, Banhong-Lamphun province-Thailand 5113. The research location was selected by purposive sampling method. The “Chiang Mai Fresh Milk Farm” has a good management, and modern technology with the number of dairy cattle about 1467 heads. The types of dairy cattle are Holstein Cross with the average production is about 25±5.03 kg/day. On the contrary, small scale dairy farming with the conventional management and simple ix technology was used as a comparison study. The research in this commercial farm and small scale dairy farming was case study. Data were collected from 8th July to 8th August 2014. Primary data involving capital, production cost, revenue were gathered by survey method using a structured questionnaire. Secondary data were obtained from Chiang Mai Fresh Milk Farm data and related sources. Data were analysed by descriptive method including the economic formula, Production Costs, Revenue, Profit, Break Even Point, Margin of Safety, and R/C ratio. Study found that “Chiang Mai Fresh Milk Farm” observed as profitable industry than those of small scale dairy farming. This evidence was based on the following financial performance indicators. Commercial farm indicates have a high capital (19,626.84 bath/AU/month) and lower production costs (5086.05baht/AU/month) compared to small scale dairy farming (12,303.63 baht/AU/month and 5286.09 baht/AU/month, respectively). Commercial farm can generate higher revenue (8503.42 bath/AU/month) of dairy than their counterparts (8205.26 baht/AU/month). Profit indicates higher (2989.19 baht/AU/month) for commercial farm in comparison with small scale dairy farming (2919.18bath/AU/month). BEP per kg milk performs efficient for commercial farm (13.02 baht/kg) than the small scale dairy farming (10.31bath/kg). The MOS of commercial farm present higher (38%) than the small x scale dairy farming (35.51%). R/C ratio in commercial farm explained somewhat high (1.63) comparing with small scale dairy farming (1.55). The study concluded that the “CFM”Farm represented the profitable enterprise than those of small scale dairy farming that supported by the following financial performance indicators. During one month, dairy farming per animal unit required more capital of 19,626.84 baht and less production costs of 5086.05baht than those 12,303.63 baht and 5286.09 baht, respectively of small scale dairy farming. Hence, more revenue (8503.42 baht) and profit (2989.19 baht) was gained by commercial farm in comparison with small scale dairy farming which yielded 8205.26 baht of milk selling and 2919.18 baht of earning. Study also discovered that the “CFM” farm was efficiently in running the enterprise based on 13.02 baht/kg of BEP, 38% of MOS, and 1.63 of R/C ratio. Small scale dairy farming, however, was considered inefficient in operating the farm since it was appeared less value in BEP (10.31baht/kg), MOS (35.51%), and R/C ratio (1.55).It was suggested to give more attention in dairy cattle replacement management for small scale farming and the culling practice of low production cow for commercial dairy farm. It was suggested to give more attention in dairy cattle replacement management for small scale farming and the culling practice of low production cow for commercial dairy farm.

Item Type: Thesis (Sarjana)
Identification Number: SKR/FPT/2015/52/ 051502404
Subjects: 600 Technology (Applied sciences) > 636 Animal husbandry
Divisions: Fakultas Peternakan > Peternakan
Depositing User: Kustati
Date Deposited: 30 Mar 2015 09:53
Last Modified: 30 Mar 2015 09:53
URI: http://repository.ub.ac.id/id/eprint/137639
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