Evaluation of investment in milking equipment in dairy farms
2006
Lachev, G. | Petrov, E. | Gergovska, Zh.
The main determinants for improving the qualitative indicators of raw milk (total number of microorganisms and total number of somatic sells) refer to the technological performance of milking equipment. The purpose of this paper is to evaluate investments in milking equipment. We estimate the dependence between investment expenses for new equipment, improvement of milk quality and increased revenues. We evaluate two alternative projects: parlor and central milking pipes. The return of investment in central milking equipment is higher but the quality of milk is not constant. Parlor equipment is related to high constant quality of milk and higher revenues but also - to higher initial investment. In order to reach higher return there is needed to enlarge the production scale.
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