Economical and financial analysis of 29 small dairy farms in the area of Paillaco

Abstract

Within the agricultural year between 1996-1997 management process carried out by 29 farmers was analyzed. They belonging to the dairy collection centers of Paillaco, Reumén, Pucara, Ustaritz, Santa Rosa, Pumol, La Misión and Pichirropulli, all of them located in the province of Valdivia on tenth region of Chile. Besides, the producers were part of the CEGE Paillaco.
Each activity developed by the producers were budgeted and analyzed using the System of Management Accounting Agricultural (CONGA). This program was useful to the short term predial planning issuing reports such as presupposed economic technical personnel of each one of the Items of the company, the global result of the development, the structure of the expenses and income and the box budget. It was also possible to keep the control over the outlined objectives by means of the counting movement register.
Furthermore, after the accounting period, the economic and financial results were analized. The economic analysis consisted of a profit study and of the milk production cost. Moreover, the financial analysis, was based upon the solvency and liquidity indexes. Both parameters, either economic or financial, were compared to some values regorded as a rule for farmers having similar features from the tenth region.