Risk analysis of investments in-farm milk cooling tanks

Detalhes bibliográficos
Autor(a) principal: Sant´Anna,Danielle D.
Data de Publicação: 2003
Outros Autores: Silva,Carlos Arthur B. da, Gomes,Sebastião T.
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Revista de Economia e Sociologia Rural
Texto Completo: http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0103-20032003000200005
Resumo: A risk analysis for the installation of milk cooling tanks (250, 500 and 1,000 L) on Brazilian rural properties was conducted in this study. The results showed that all investments had a return higher than the annual 12% minimum rate of attractiveness. There was a direct relationship between tank size and investment profitability and an inverse relation between size and risk. The probability of achieving returns lower than the opportunity cost was highest for the smallest tank (42%). In order to make the investment in small cooling tanks more attractive, the dairy industry incentives offered to farmers for supplying cooled milk could be increased. However, this approach might make investments in bulk milk collection by dairy companies infeasible. Thus, a recommendable strategy for a successful modernization of the Brazilian dairy sector’s inbound logistics would be to promote an increase in the volume of the milk produced per farm.
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spelling Risk analysis of investments in-farm milk cooling tanksmilkbulk milk collectionrisk analysisA risk analysis for the installation of milk cooling tanks (250, 500 and 1,000 L) on Brazilian rural properties was conducted in this study. The results showed that all investments had a return higher than the annual 12% minimum rate of attractiveness. There was a direct relationship between tank size and investment profitability and an inverse relation between size and risk. The probability of achieving returns lower than the opportunity cost was highest for the smallest tank (42%). In order to make the investment in small cooling tanks more attractive, the dairy industry incentives offered to farmers for supplying cooled milk could be increased. However, this approach might make investments in bulk milk collection by dairy companies infeasible. Thus, a recommendable strategy for a successful modernization of the Brazilian dairy sector’s inbound logistics would be to promote an increase in the volume of the milk produced per farm.Sociedade Brasileira de Economia e Sociologia Rural2003-06-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersiontext/htmlhttp://old.scielo.br/scielo.php?script=sci_arttext&pid=S0103-20032003000200005Revista de Economia e Sociologia Rural v.41 n.2 2003reponame:Revista de Economia e Sociologia Ruralinstname:Sociedade Brasileira de Economia e Sociologia Rural (SBESR)instacron:SBESR10.1590/S0103-20032003000200005info:eu-repo/semantics/openAccessSant´Anna,Danielle D.Silva,Carlos Arthur B. daGomes,Sebastião T.eng2003-07-16T00:00:00Zoai:scielo:S0103-20032003000200005Revistahttps://www.revistasober.org/ONGhttps://old.scielo.br/oai/scielo-oai.phpsober@sober.org.br||resr@revistasober.org1806-94790103-2003opendoar:2003-07-16T00:00Revista de Economia e Sociologia Rural - Sociedade Brasileira de Economia e Sociologia Rural (SBESR)false
dc.title.none.fl_str_mv Risk analysis of investments in-farm milk cooling tanks
title Risk analysis of investments in-farm milk cooling tanks
spellingShingle Risk analysis of investments in-farm milk cooling tanks
Sant´Anna,Danielle D.
milk
bulk milk collection
risk analysis
title_short Risk analysis of investments in-farm milk cooling tanks
title_full Risk analysis of investments in-farm milk cooling tanks
title_fullStr Risk analysis of investments in-farm milk cooling tanks
title_full_unstemmed Risk analysis of investments in-farm milk cooling tanks
title_sort Risk analysis of investments in-farm milk cooling tanks
author Sant´Anna,Danielle D.
author_facet Sant´Anna,Danielle D.
Silva,Carlos Arthur B. da
Gomes,Sebastião T.
author_role author
author2 Silva,Carlos Arthur B. da
Gomes,Sebastião T.
author2_role author
author
dc.contributor.author.fl_str_mv Sant´Anna,Danielle D.
Silva,Carlos Arthur B. da
Gomes,Sebastião T.
dc.subject.por.fl_str_mv milk
bulk milk collection
risk analysis
topic milk
bulk milk collection
risk analysis
description A risk analysis for the installation of milk cooling tanks (250, 500 and 1,000 L) on Brazilian rural properties was conducted in this study. The results showed that all investments had a return higher than the annual 12% minimum rate of attractiveness. There was a direct relationship between tank size and investment profitability and an inverse relation between size and risk. The probability of achieving returns lower than the opportunity cost was highest for the smallest tank (42%). In order to make the investment in small cooling tanks more attractive, the dairy industry incentives offered to farmers for supplying cooled milk could be increased. However, this approach might make investments in bulk milk collection by dairy companies infeasible. Thus, a recommendable strategy for a successful modernization of the Brazilian dairy sector’s inbound logistics would be to promote an increase in the volume of the milk produced per farm.
publishDate 2003
dc.date.none.fl_str_mv 2003-06-01
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
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status_str publishedVersion
dc.identifier.uri.fl_str_mv http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0103-20032003000200005
url http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0103-20032003000200005
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 10.1590/S0103-20032003000200005
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv text/html
dc.publisher.none.fl_str_mv Sociedade Brasileira de Economia e Sociologia Rural
publisher.none.fl_str_mv Sociedade Brasileira de Economia e Sociologia Rural
dc.source.none.fl_str_mv Revista de Economia e Sociologia Rural v.41 n.2 2003
reponame:Revista de Economia e Sociologia Rural
instname:Sociedade Brasileira de Economia e Sociologia Rural (SBESR)
instacron:SBESR
instname_str Sociedade Brasileira de Economia e Sociologia Rural (SBESR)
instacron_str SBESR
institution SBESR
reponame_str Revista de Economia e Sociologia Rural
collection Revista de Economia e Sociologia Rural
repository.name.fl_str_mv Revista de Economia e Sociologia Rural - Sociedade Brasileira de Economia e Sociologia Rural (SBESR)
repository.mail.fl_str_mv sober@sober.org.br||resr@revistasober.org
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