How can dairies maximize their profits and properly remunerate their dairy farmers?
Autor(a) principal: | |
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Data de Publicação: | 2016 |
Outros Autores: | , , , , , , |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Scientia Agrícola (Online) |
Texto Completo: | http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0103-90162016000100051 |
Resumo: | ABSTRACT The current pricing process of raw milk in Brazil discourages producers from improving milk composition, which affects both yield and quality of dairy products. Furthermore, small and medium-sized dairies face great difficulties when it comes to planning production. Thus, a linear programming model was developed to price the raw milk and determine the optimal mix (combination of quantities) of dairy products that maximizes total contribution margin (TCM) under daily scenarios of high (January) and low (July) raw milk supplies (summer and winter, respectively) by comparing optimal solutions with actual results. The TCM of optimal and actual mixes were higher in January due to the greater availability of raw material. Packaging was a limiting factor in the production of cheese in optimal mixes. The relationship between unit contribution margin (UCM) and the required amount of raw materials per product unit and resource availability is crucial to defining the mix of dairy products and TCM of the dairy. Casein and raw milk volume showed shadow prices. Under both scenarios, the calculated prices of raw milk were higher than the prices charged by the dairy and were higher in January. The proposed model remunerates the producers based on the quantity and quality of raw milk. The dairy can maximize its TCM by better planning its mix of products with the use of linear programming. |
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How can dairies maximize their profits and properly remunerate their dairy farmers?contribution margindairy productslinear programmingmilk componentsmilk pricingABSTRACT The current pricing process of raw milk in Brazil discourages producers from improving milk composition, which affects both yield and quality of dairy products. Furthermore, small and medium-sized dairies face great difficulties when it comes to planning production. Thus, a linear programming model was developed to price the raw milk and determine the optimal mix (combination of quantities) of dairy products that maximizes total contribution margin (TCM) under daily scenarios of high (January) and low (July) raw milk supplies (summer and winter, respectively) by comparing optimal solutions with actual results. The TCM of optimal and actual mixes were higher in January due to the greater availability of raw material. Packaging was a limiting factor in the production of cheese in optimal mixes. The relationship between unit contribution margin (UCM) and the required amount of raw materials per product unit and resource availability is crucial to defining the mix of dairy products and TCM of the dairy. Casein and raw milk volume showed shadow prices. Under both scenarios, the calculated prices of raw milk were higher than the prices charged by the dairy and were higher in January. The proposed model remunerates the producers based on the quantity and quality of raw milk. The dairy can maximize its TCM by better planning its mix of products with the use of linear programming.Escola Superior de Agricultura "Luiz de Queiroz"2016-02-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersiontext/htmlhttp://old.scielo.br/scielo.php?script=sci_arttext&pid=S0103-90162016000100051Scientia Agricola v.73 n.1 2016reponame:Scientia Agrícola (Online)instname:Universidade de São Paulo (USP)instacron:USP10.1590/0103-9016-2014-0261info:eu-repo/semantics/openAccessMeneghini,Rafael Cedric MöllerCassoli,Laerte DagherMartines Filho,João GomesXavier,Carlos Eduardo OsórioSantos,Marcos Veiga dosCaixeta Filho,José VicenteNatel,Andressa SantannaMachado,Paulo Fernandoeng2015-12-09T00:00:00Zoai:scielo:S0103-90162016000100051Revistahttp://revistas.usp.br/sa/indexPUBhttps://old.scielo.br/oai/scielo-oai.phpscientia@usp.br||alleoni@usp.br1678-992X0103-9016opendoar:2015-12-09T00:00Scientia Agrícola (Online) - Universidade de São Paulo (USP)false |
dc.title.none.fl_str_mv |
How can dairies maximize their profits and properly remunerate their dairy farmers? |
title |
How can dairies maximize their profits and properly remunerate their dairy farmers? |
spellingShingle |
How can dairies maximize their profits and properly remunerate their dairy farmers? Meneghini,Rafael Cedric Möller contribution margin dairy products linear programming milk components milk pricing |
title_short |
How can dairies maximize their profits and properly remunerate their dairy farmers? |
title_full |
How can dairies maximize their profits and properly remunerate their dairy farmers? |
title_fullStr |
How can dairies maximize their profits and properly remunerate their dairy farmers? |
title_full_unstemmed |
How can dairies maximize their profits and properly remunerate their dairy farmers? |
title_sort |
How can dairies maximize their profits and properly remunerate their dairy farmers? |
author |
Meneghini,Rafael Cedric Möller |
author_facet |
Meneghini,Rafael Cedric Möller Cassoli,Laerte Dagher Martines Filho,João Gomes Xavier,Carlos Eduardo Osório Santos,Marcos Veiga dos Caixeta Filho,José Vicente Natel,Andressa Santanna Machado,Paulo Fernando |
author_role |
author |
author2 |
Cassoli,Laerte Dagher Martines Filho,João Gomes Xavier,Carlos Eduardo Osório Santos,Marcos Veiga dos Caixeta Filho,José Vicente Natel,Andressa Santanna Machado,Paulo Fernando |
author2_role |
author author author author author author author |
dc.contributor.author.fl_str_mv |
Meneghini,Rafael Cedric Möller Cassoli,Laerte Dagher Martines Filho,João Gomes Xavier,Carlos Eduardo Osório Santos,Marcos Veiga dos Caixeta Filho,José Vicente Natel,Andressa Santanna Machado,Paulo Fernando |
dc.subject.por.fl_str_mv |
contribution margin dairy products linear programming milk components milk pricing |
topic |
contribution margin dairy products linear programming milk components milk pricing |
description |
ABSTRACT The current pricing process of raw milk in Brazil discourages producers from improving milk composition, which affects both yield and quality of dairy products. Furthermore, small and medium-sized dairies face great difficulties when it comes to planning production. Thus, a linear programming model was developed to price the raw milk and determine the optimal mix (combination of quantities) of dairy products that maximizes total contribution margin (TCM) under daily scenarios of high (January) and low (July) raw milk supplies (summer and winter, respectively) by comparing optimal solutions with actual results. The TCM of optimal and actual mixes were higher in January due to the greater availability of raw material. Packaging was a limiting factor in the production of cheese in optimal mixes. The relationship between unit contribution margin (UCM) and the required amount of raw materials per product unit and resource availability is crucial to defining the mix of dairy products and TCM of the dairy. Casein and raw milk volume showed shadow prices. Under both scenarios, the calculated prices of raw milk were higher than the prices charged by the dairy and were higher in January. The proposed model remunerates the producers based on the quantity and quality of raw milk. The dairy can maximize its TCM by better planning its mix of products with the use of linear programming. |
publishDate |
2016 |
dc.date.none.fl_str_mv |
2016-02-01 |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0103-90162016000100051 |
url |
http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0103-90162016000100051 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
10.1590/0103-9016-2014-0261 |
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 |
Escola Superior de Agricultura "Luiz de Queiroz" |
publisher.none.fl_str_mv |
Escola Superior de Agricultura "Luiz de Queiroz" |
dc.source.none.fl_str_mv |
Scientia Agricola v.73 n.1 2016 reponame:Scientia Agrícola (Online) instname:Universidade de São Paulo (USP) instacron:USP |
instname_str |
Universidade de São Paulo (USP) |
instacron_str |
USP |
institution |
USP |
reponame_str |
Scientia Agrícola (Online) |
collection |
Scientia Agrícola (Online) |
repository.name.fl_str_mv |
Scientia Agrícola (Online) - Universidade de São Paulo (USP) |
repository.mail.fl_str_mv |
scientia@usp.br||alleoni@usp.br |
_version_ |
1748936463844638720 |