Efficiency in Livestock Farms PDF

# Efficiency in Livestock Farms ## Efficiency definition - Efficiency is concerned with the relation between resources (inputs) and outputs. - When each resource used in production process gives its maximum production with maximum profit and minimum cost, this means efficient farm. ## Types of ef...

# Efficiency in Livestock Farms ## Efficiency definition - Efficiency is concerned with the relation between resources (inputs) and outputs. - When each resource used in production process gives its maximum production with maximum profit and minimum cost, this means efficient farm. ## Types of efficiency - There are different types of efficiency, which include: - Economic - Productive - Technical - Allocative - Behavioral ### 1 - Economic efficiency - The economic efficiency reflects the ability of a farm to obtain maximum output from a given set of inputs and available technology on the lowest cost basis. - The economic efficiency could be explained by factors of financial stability, income, milk or egg collection, performance. - The economic efficiency is the product of technical efficiency and allocative efficiency. #### 1.1 - Technical efficiency - Technical efficiency refers to the physical relationship between resources used and the outcome from introduction of modern technology and new machines in livestock farms. - Education and experience are positively correlated to adoption of improved technology leading to increase of technical efficiency. #### 1.2 - Allocative efficiency - It is one of economic efficiency components that deals with prices or the cost of different combinations of the available resources. - It is achieved when distribution of limited resources by manner in which the marginal return is equal to marginal cost for each resource or when the value of marginal return for each resource becomes equal in all farms. - Also, it is achieved when resources were best allocated to maximize the welfare of the community or achievement of maximum return from the best combination of the available resources. - Allocative efficiency - achieved when it is impossible to make someone better off without making someone else worse off also called Pareto Optimality. ### 2 - Productive efficiency - Productive efficiency is the number of units of output per unit of input. - The more units of output per unit of input are, the higher the productive efficiency. - The productive efficiency deals with how to maximize the output form a given inputs. - For example, in dairy farms, Productive efficiency is the ability of a dairy cow to produce maximum milk from a given inputs. - The productive efficiency of cow equals total income from milk sale divided by total cost of milk production and should be higher than unitary. - And so on for other livestock farms. ### 3 - Reproductive efficiency - Reproductive efficiency is the ability of a dairy producer to get cows bred back rapidly after calving with a minimum number of breeding per cow. - Inefficient reproduction decreases profit by reducing both the efficiency of milk production and the number of available replacement heifers. ### 4 - Behavioral efficiency - Could be explained by factors of adaptation of de-worming in calves and provision of housing facilities, health of animals, incidence of contagious diseases, record keeping and adaptation of crossbred animals. ## Efficiency measures The figure shows efficiency measures classified into two types: - **Measures:** - **Collective** - **Partial** ### Collective efficiency measures - It is the most popular use for efficiency estimation in livestock farms and deals with total input-output relationship during a certain period of time. - It includes the estimation of: - The total cost, total return, net profit - Milk price to concentrate price (Dairy farm). - Total out-put produced (total meat, egg and milk production) - Marginal costs, benefits and gross margin. - Comparing efficiencies of different herds and farms. - Annual milk yield, calving interval, age at maturity, annual cost/milk - Cost benefits analysis. - Family income from the farm. - Income derived from enterprises. ### Partial efficiency measures - The partial measures of efficiency are dealing with analysis of each element which used in production process. - It includes estimation of: - Cost of each kilogram of live broiler meat or kg of milk or meat from drugs, vaccines, disinfectants and veterinary supervision, etc. - Also ratio of veterinary inputs to total variable and total cost. - Productivity, returns, costs, and net profit/animal. - Returns, costs, and net profit/Kilogram milk. - Marginal production for each resource. - Elasticity of production for each resource. ## Efficiency achievement - There are ten points the farmers or manager must follow to achieve the efficiency and welfare to the different animal farms. ### 1 - Efficient herd/flock management - Such as house cleanout, optimum density, effective vaccination, improved chick quality and litter management. - Using modern drinkers and feeders. - The feed distribution system, feeding space and distribution times are critical. ### 2 - Good planning and policy - Any competitive business requires superior management skills for good planning to select such decisions as increased flock size and chick density with improved housing, shorter grow out periods, and variable health programs. ### 3 - Genetic improvement with efficient selection ### 4 - Efficient data collection with efficient statistical analysis ### 5 - Efficient budget design and usage ### 6 - Efficient computer usage ### 7 - Introduction of efficient new technology ### 8 - Efficient housing system with efficient management ### 9 - Efficient recording with efficient record keeping ### 10- Efficient labor usage # Management of Farm Records ## Farm record - It is a document that is used to keep accounts of different activities, events, materials regarding the farm operation. - Farm record is also used to record financial aspects of farm operation. ## Farm record keeping - It is the art of keeping track of different activities on the farm. It is a daily task that must be done by the farm manager especially in the case of a big farm. - Having a farm record allows taking your farm business to the next level shortly. - It contains things like purchases and sales, feeding schedules, mortality, and so on. ## Importance of Farm Record Keeping ### 1 - Helps to determine Income and Expenses - If you look into record and find that the expenses are more than the income, then you know there is an issue that needs to be fixed. - Without a record, you won't know what is happening on the farm. ### 2. Better farm planning - Help the manager to plan and do realistic forecasting because it provides valuable information on which methods work. - The manager can better predict price changes of inputs and product from expenditures and sales records kept from previous years. ### 3 - Payment of tax - Without a record, it is possible to pay more when you are supposed to pay less and vice versa, but having a farm record will save you when it is time for paying tax. ### 4 - Easy Access to loan - One day you will need to expand your business. If the amount of money you have isn't enough for expansion, you will need help from banks or the government in form of loans or grants. With a farm record insight, it will be easy for you to access this loan because the creditor will see that if they lend you the money, it will not be difficult to pay back the loan. - Having a record will give you something to show for your work over the years. ### 5 - It provides information on farm history and level of production of the farm business (progress monitoring). ### 6 - They help in decision making for proper management. ### 7 - Helps the farm manager to increase his efficiency by providing grounds in the efficient utilization of available resources ### 8 - Provide basis in allocating the profit among the different owners of the business ## Qualities of a Good Farm Record - a) Easy to keep - b) Must contain the necessary information - c) Must give information when it is needed ## Tips in Record Keeping - a) Keep it simple - b) Record immediately - c) Record accurately - d) Organize ## Methods of Farm Record Keeping: ### 1 - Traditional/ Manual method: - This method involves the recording by hand of all financial transactions. - Although this method has a low initial expense and easy to implement, however, it is time-consuming and there are more opportunities to make mistakes. ### 2 - Digital Method: - This method takes advantage of technology. - If you have workers that are skilled and can use a computer, then they can record daily farm activity on a system application/software or phone software. - Examples of software that can be used are Google sheet, Microsoft Excel, or an application called Poultry Manager. - This method is Fast and Accurate but it requires a lot of training and initial expense. ## Types of Farm Records: ### 1. Farm Diary - This is a record for tracking of the daily farm activities. - It is possible to identify weaknesses in the farming industry with this record. ### 2. Livestock records. - In dairy farms, especially in intensive livestock production, keeping track of individual animal is very important. - Some of the key records to keep include: - **a) Calving dates:** - To follow through different stages of each cow's lactation and to assess weight and age of young stock. - Also to update annual livestock inventory as stock change classification, e.g. from calves to yearlings. - They are also useful to identify cows that are due to be mated. - **b) Daily milk yields:** For closer animal observations if they suddenly and unexpectedly change. - **c) Daily herd milk yield:** To check up on milk payments and to fine tune feeding programs. - **d) Regular milk composition data:** If provided by the cooperative or processor, to closely monitor the effects of diet. - **e) Mastitis treatment:** For individual cows and other treatments requiring milk not being sold. The drug with holding period must be followed to ensure milk quality is not compromised. - **f) Routine monitoring of feed offered (forages as well as concentrates) and actually consumed,** which can indicate if cows are on heat or sub-clinically sick. - **g) Live weight and body condition of adult cows:** to monitor milking performance during the entire lactation. - **h) Live weight and body condition of young stock:** to monitor feeding management required to achieve growth targets. - **i) Dates when each cow is on heat:** to manage artificial insemination (AI) programs as well as predict expected dates of calving. - **j) Dates and results of pregnancy diagnoses:** if undertaken, to predict expected calving dates. - **k) Animal sickness, veterinary visits and drug treatment:** to follow through animals' responses to treatment. With replacement heifers, it also provides a guide as to whether the heifer's lifetime productivity might be compromised. - **l) Routine vaccination and drenching:** to ensure they are timely and to plan future programs. - **m) Stock purchases and sales of culls:** to update livestock inventory. - **n) Stock deaths and probable causes:** to update livestock inventory and also monitor general herd health. - **o) Age when culled from the milking herd, reason for culling and number of lactations while in milking herd.** - **p) Milk and concentrate intakes of young calves:** to plan weaning and calculate total rearing costs. - **q) Other dairy enterprise sales**: such as stock fattened for sale, cow manure and any excess forages, for accounting purpose.