ipl-logo

Hypothesis In Dairy Farm

1827 Words8 Pages

Methodology

Hypothesis 1: The first hypothesis states that the bigger the size of a dairy firm, the lower the average total cost per 100kg milk.

At first the average cost per 100kg milk for each size class is calculated for each year, and this information will be displayed in a bar graph. After visualizing the differences among the mean of the 5 year 100kg milk prices for all the size groups, statistical tests will be conducted on the data. The use of statistical tests is chosen to increase the scientific relevance of this paper. This hypothesis is tested by applying the Paired Sample T-Test on the data set. The sets are grouped by size class and paired by year.

At first the differences between the pairs are calculated. After that the …show more content…

Conclusion
The aim of the research was to study the economies of scale occuring in the dairy farm industry. The data used includes the different types of costs of production and the ammount produced by different types of dairy farms. The source of the data is LEI. In order to answer the research question two hypotheses have been developed and testsed.
The results from the first hypothesis is not suprising and it does not opose what has already been researched in the past. Bigger dairy farms have lower average cost per 100g produced, compared to smaller farms, in the Netherlands just as it has been proven to be in other parts of the world.
With the second hypothesis the results are not that easy to explain as the first one. The hypothesis itself has been proven true because according to the test at least 1 out the 3 researched sub costs has decreasing ammounts as size of the farms increase. For the feed costs there are no economies of scale taking place and as for the depreciation the results are mixed. The type of costs which has passed the test is the labor costs. From this research conclusions about the most important cost cannot be made, but it is likely that labor is the driver of the economies of scale in the total costs. Also it has to be mentioned that even if feed costs do not decrease as farm size grows that does not make it less profitable because …show more content…

Economies of scale take place for sure in the dairy farm industry. As to what extend that holds trure, the answer is in the labor and depriciasion costs. Labour costs drop sharply from the first(smallest) to the forth group but then the difference between the forth and fifth group is not that big. For the depriciation costs economies of scale does not hold, futhermore they have a slow increasing trend as size grows. Virtually as size increases these 2 costs will form the optimal operating size and after it the costs for production of 100kg milk will start to

Show More
Related

  • Tootsie Roll Financial Analysis

    668 Words  | 3 Pages

    The Hershey manufacturer and the Tootsie Roll company both are firms in confection enterprise; they specialize in a vast form of chocolate sweet products. I compared each companies for the years 2002, 2003, and 2004 towards every different and in opposition to the enterprise averages so as to make a selection about which organization investors would decide on to put money into. The comparisons I used to make this decision were ratios for liquidity, solvency, and

    Read More

  • Summary Of The Omnivore's Dilemma

    280 Words  | 2 Pages

    In the corn section of The Omnivore's Dilemma the author, Michael Pollan, goes on a journey to follow the industrial food chain and on his journey he finds out that corn is in nearly everything we eat. Since it is fed to cows, salmon and other animal corn ends up in places we would not think of like hamburgers, milk and soda. In one of the chapters Pollan tells the readers that for every bushel of corn it cost one dollar more to produce it than to buy it. The abundance of corn has caused the price to go down, however farmers are still producing corn due to government subsidies, even though they necessarily won’t make a profit off of it. This in turn keeps farmers in business but not out of debt.

    Read More

  • Corn Atanagi Case Study

    699 Words  | 3 Pages

    b. What is the opportunity cost of increasing the annual output of corn from 800 to 1000 pounds? The opportunity cost of increasing corn by 200 pounds (=1000-800) is the amount of poultry output that must be sacrificed. We look at two points on PPC-(800,500) and (1000, 300). The increase in corn is accompanied by decrease in poultry by 200 units (=500-300).

    Read More

  • Wisconsin's Dairy Leaders: A Case Study

    66 Words  | 1 Pages

    In 1864, a cheese factory opened at Ladoga in Fond du Lac County, Wisconsin. This factory, opened by Chester Hazen, set the groundwork for Wisconsin to become "America's Dairyland". As of 2015, Wisconsin had around 9,900 dairy farms. Without Hazen, Wisconsin may never have become one of the nation's dairy leaders. Therefore, this historical event is very important to what Wisconsin is and who Wisconsinites

    Read More

  • San Joaquin County Research Paper

    1110 Words  | 5 Pages

    Working Conditions of Farm workers in San Joaquin County Besides its strategic location, San Joaquin County produces more than 250 verities of crops. Key of these crops includes fruits, vegetables and partly dairy animal production. The produce leads to top development of San Joaquin county maturity. Moreover, the recent research shows that, the county gross product increases up to 25 billion every year.

    Read More

  • How Does Dairy Farming Affect Vermont

    55 Words  | 1 Pages

    Megan Vorsteveld 3/22/16 People may say that dairy farming affects Vermont in only negative ways, for example runoff and greenhouse gasses, but without farms it would cause a lot of problems for the people and for Vermont itself. Dairy farming helps with nutrients in the soil, helps the people of Vermont, and helps the

    Read More

  • Rhetorical Analysis Of The Great Milk Debate

    1717 Words  | 7 Pages

    The advertisement is not so persuasive for its intended audience. It can be said so because the author is trying to convince everyone to change instead of taking small steps and starting from people who do not like cow milk or the ones who already care a lot about cows and their pain or the ones who do not want to support the veal industry. I believe that after this advertisement only a very small segment of society will try to adapt to this change of milk sources. To make it more impactful and efficient the author should have used examples of people that actually felt different and benefited from plant based milk. Also, the author should have presented both sides of the coin, it means that the lack of cow milk advantages from the advertisement shows that the author tried to play smart with a thought that the audience is not so smart.

    Read More

  • Thesis Statement For Perdue Farm

    193 Words  | 1 Pages

    Introduction Perdue Farms is one of the largest producers of broilers in the United States. The company was started in 1920 by Arthur Perdue on his farm in Maryland. The company began selling eggs in the beginning and in 1925 the company built its first hatchery and began specializing in layer chicks selling. It’s not out of the ordinary for a company to experience controversies during their success. Perdue Farms is one of those brand names that has had many difficulties in the form of environmental issues, workplace safety, government-regulation compliance, operations problems, and more commonly animal-treatment controversies.

    Read More

  • Why Is Factory Farming Bad

    314 Words  | 2 Pages

    Industrial farming is intensive animal farming it’s also called factory farming. Animals are stuck in cages all day. More than 9.3 million cows were used to produce milk in the United States in 2008. More than 2.5 million dairy cows were slaughtered for meat. Usually just within hours of birth, calves are taken away from their mothers.

    Read More

  • Animals Practicing Complexity Analysis

    1660 Words  | 7 Pages

    If a farm is producing efficiently enough, it determines whether an industrial farm is competent or not. Berry notes, “Today, with hundreds of farm families losing their farms every week, the economists are still saying, as they have said all along, that these people deserve to fail, that they have failed because they are the ‘least efficient producers,’ and that the rest of us are better off for their failure” (105 ). If farms are not producing efficiently enough, they are seen as failing and farmers end up losing their farms. ‘Better off for their failure’ meaning if growers fail then machines will take their place and will be more efficient, producing more products. Pollan asserts, “’Efficiency’ is the term usually invoked to defend large-scale industrial farms, and it usually refers to the economies of scale that can be achieved by the application of technology and standardization” (377).

    Read More

  • Summary Of Every Farm A Factory

    1297 Words  | 6 Pages

    Deborah Fitzgerald wrote Every Farm a Factory, which was published in 2003 by Yale University. Fitzgerald is the Kenan Sahin Dean of the MIT School of Humanities, Arts, and Social Sciences. She is also a Professor of the History of Technology, in Science, Technology and Society. Deborah Fitzgerald’s work revolves around the history of agriculture and food in modern America. She has had two books published on the subject:

    Read More

  • The Animals Practicing Complexity Analysis

    315 Words  | 2 Pages

    This chain of profit very beneficial to farms because overall they spend much less money and have more money to spend elsewhere. There 's

    Read More

  • Swot Analysis Of Maple Leaf Foods

    859 Words  | 4 Pages

    Keeping in mind an equivalent philosophy Maple Leaf Foods place all their promoting efforts in reducing the price of production and strengthening their distribution system. So as to cut back the price of production and to bring it all the way down to the minimum level, Maple Leaf Foods take pleasure in giant scale production. This helps them in effecting the social science of the massive scale production. Consequently, the price of production per unit is reduced.

    Read More

  • Milk Industry In The 1800s

    804 Words  | 4 Pages

    As transportation of milk became easier with the introduction of different cars design specifically for liquids, the railroad companies started to take advantage of dairy farms by having high prices for transporting. In addition to such a burden on the farmers, they also had to spend their money on the cows and feed for the production of milk. After subtracting all of these expenses, it can be seen that the farmers are losing a lot of money in this industry. This left the dairy farmers in a quagmire. They either had to boycott the railroads and deal with slower transportation through other means like cars or they just had to deal with the high prices of the transportation.

    Read More

  • Personal Essay: Growing Up On A Dairy Farm

    921 Words  | 4 Pages

    When you grow up on a dairy farm, you learn alot of life lessons at a very young age, and even if you don't realise that you have learnt them at the time you will carry them with you and they will benefit you for the rest of your life. Here are some of the lessons that I have learned growing up on a farm that I think are the most important. One of the first things that you will learn on a farm is that a solid work ethic is an essential part of your attitude for whatever you do, if you want to be successful. On the farm when we were growing up we would see our dad leaving to go to work at 4 AM and sometimes he would get back home at as late as eight o'clock at night if things were not going his way.

    Read More

More about Hypothesis In Dairy Farm

Open Document