Determination of Competitiveness of a Dairy Production System in Family Farming by Management Systematization as an Extension Practice

Abstract

Through a case study, the goals of this paper were: First, to provide whether the technical and financial results were adequate to determine the competitiveness of family farming unit to response for enhancing its dairy production system. Second, to propose an alternative analysis methodology titled concentrate rationing to measure the financial performance of the dairy cows. Third, to provide a method to analyze the performance of technical assistance and rural extension. Data were collected by control spreadsheets on family farming unit in Alegre, Espírito Santo, Brazil. Indicators related to income and production costs were analyzed by Excel® software spreadsheets as well the concentrate rationing tool. Financial analysis evidenced that the intensification process resulted in an income increase of 92.5% in dairy sales and a reduction of 38% in the total cost of dairy production; however, the scale of production can be an obstacle for farmers to meet their business opportunities. The best financial results were achieved with the cows that showed the highest milk production and were fed the highest amount of concentrate, implying that the concentrate feeding can be an ally for the family farmer. The intensification process demonstrated be positive in meeting the production costs requirements provided that there is scale; the concentrate rationing tool sets a new perspective for the financial evaluation of a dairy farm; and the interaction between the extension technician and the farmer should bring knowledge so that the family farming becomes the main character in the production structure of the dairy supply chain.