Some alternatives of improvement the cow milk production efficiency in Albania (cash flow analysis)

Meco, Maksim and Keco, Remzi and Kapaj, Ilir and Naqellari, Alqi: Some alternatives of improvement the cow milk production efficiency in Albania (cash flow analysis). Review on agriculture and rural development, (3) 1. pp. 277-286. (2014)

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Abstract

Any major new capital investment, such as the purchase of land, machinery, buildings or animals, can have a large effect on cash flows, particulary if additonal capital is borrrowed to finance the purchase. Borrowed capital requires principial and interest payments. The questions to answer before making the new investment is: Will the investment generate enough additional cash income to meet its additional cash requirments? In other words, is the investment financially feasible, as oposed to economically profitable? Farms with high production efficiency are more successful due to three factors. High levels of production result: (1) low cost per unit of output, (2) with an increase in the effective size of the farm business, and (3) with an increased effectiveness of labor and machinery (Ronald D, Kay, farm management 1994). The high level of production provides a simple and effective method of increasing farm size. Farms with high agricultural productivity and high levels of productivity per head resulting in a large volume of business compared with farms with the same size but with lower production levels. This additional business volume is the result of working more effectively, without increasing the surface of the land or the size of the activities. The main methods of raising the level of productivity of livestock production are: i) selection and improvement of breed; ii) choice of a balanced food ration in relation to the level of production, iii) sheltering conditions and health care, iv) appropriate and timely nutrition and; v) a good combination between use of pasture and concentrated food.

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