ECONOMICS OF DAIRY FARMING

OUTPUT
• The output of a business enterprise is a product
or service which earns money
• For a dairy farm, the primary output is milk sales
• Outputs may also be termed revenue or income
in management budgets or accounts
• Keeping track of the returns (or 'output') from the
business and the costs it has to pay is essential
for the effective management of a farm
business's overall finances.
 milk fat,
produced by
churning cream
 forms by
coagulation of
the milk protein
casein
Milk which has been
completely
concentrated by
evaporation
 preparations
based on milk or
cream cooked
with egg yolk to
thicken it
boiling rice or
broken wheat
with milk and
sugar
 prepared by
simmering butter
 slowly frozen
cream, milk, flavors
and emulsifying
additives
 blend of curd,
water, spices and
sometimes fruit
 manufactured
dairy product
made by
evaporating milk
to dryness
Liquid drained from
curds and used for
further processing
confection made by
rolling into a ball
and boiling in
syrup.
DAIRY FARM OUTPUTS:
Process

https://youtu.be/SFwWk_iCo8c
DAIRY PROCESS

https://youtu.be/Xoo7FdMAjms
THE CONCEPT OF PRODUCTIVITY
Challenges to improve productivity

• Socio-economic resilience
• Animal care
• Resource efficiency
• Biodiversity
PRODUCTIVITY: COWS TREATED
WELL PRODUCE WELL...
Increasing milk productivity by:
- Watching TV

https://youtu.be/iIwIOnTVsiY
- Keeping cows cool

https://youtu.be/KQIjnzK5R2I
- Offering more water

https://youtu.be/gm13ZmmFqq0
- Making them feel comfortable

https://youtu.be/HU8_A_EIwAs
 NAME THE MILK PRODUCT

Y_ _ _ _ _T M_ _ _ _ _ _ _E
M_ _ K
C_ _ _ _E
C_ _ D
P_ _ _ _ _R
G_ _ E
B_ _ _ _R
K_ _ _ _I
L_ _ _I
I_ _ _ _ _ _M
 BENCHMARKING
• Benchmarking compares the best and worst
performing farming
• requires detailed management accounting
• demonstrates why knowing the farm's finances
using these measures can help to keep it
profitable
• Management accounts can be structured to allow
accurate and fair comparison between farm
businesses of a similar size and type, and can
enable a farmer to identify, for example, where
costs may be saved or productivity improved.
 Market
• Internal and External Markets
• Internal consumption- liquid milk
• International trade- processed dairy
products like milk powder

“SIZE MATTERS”
Question: Why is India’s exports low?
BONUS: How they make TOBLERONE chocolates

https://youtu.be/0SvuKc64DRo
 REFERENCE
• https://dairy.ahdb.org.uk/technical-
information/business-
management/accounts/outputs-money-
which-earns/#.W1XytNIzbIV
• https://en.wikipedia.org/wiki/Dairy_farming
• http://www.dairyknowledge.in/sites/default/f
iles/ch6.pdf