Effect of technical indexes on cost-effectiveness in dairy farms participating in the “Balde Cheio” program at different stages of production

Abstract

This study assesses the effects of technical and managerial indexes on the cost-effectiveness of 20 demonstration units (DUs) that participated in the “Full Bucket” (“Balde Cheio”) program, at different stages of production, in the state of Rio de Janeiro, from January to December 2011. Here, cost-effectiveness was assessed by considering gross margin, net margin, result (financial profit or loss), cost-effectiveness, and profitability as indicators of financial efficiency. Data were analyzed using PASW 18.0. A multiple linear regression model was used with the stepwise method to identify the managerial, technical, and other indexes that most affected profitability and cost-effectiveness. The production systems were categorized into three production levels: small (nine DUs), medium (nine DUs), or large (two DUs). The managerial and technical indexes differed according to the stages of production under study. The daily milk production for the three categories were below 151 kg, 151 to 400 kg, and above 400 kg, respectively. The best profitability and cost-effectiveness at the large production level resulted from selling livestock. This level showed greater animal/day productivity (kg of milk), the best cows/farm manpower ratio, and the best number of herd animals/farm manpower ratio, whereas the medium level showed a lower fixed cost/total cost relation. The small production level showed the best percentages of lactating cows, cows in the herd, and lactating cows in the herd, as well as the best productivity/ha/year and lactating cows/ha. However, the latter results were not sufficient to generate a profit, owing to the small scale of production.