Analytical Tools for Material and Energy Balance, Cash Flow, and Environmental Loads in a Dairy Cattle Enterprise

¹ Michigan State University, East Lansing 48824

Analytical tools for the preconstruction technical design and postconstruction management of a dairy enterprise are presented. The enterprise is represented as a network of production processes with alternative operating technologies and scale of operation as technical parameters of environmental loads and cash flow. The operating technologies of the network are represented by material conversion coefficients and energetic cost functions. Generalized laws of material and energy balance are used to define an on-line management accounting system for recording resource and product flows, physical energy, and human time involved in the production process. Cash flow and value added are computed from the technologies of the network, prices of material and energetic resources, and costs of operating facilities. A microcomputer application was developed to evaluate the environmental loads and the economic consequences of alternative technologies, product prices, and amortization schedules for facility and equipment costs. The concepts and analytical tools presented for the design and management of dairy enterprises provide a framework through which scientists across disciplines and producers across product lines can work together to increase overall farm profitability and to reduce environmental loads.

Key Words: systems modeling • management • environment • dairy

Submitted on September 3, 1993
Accepted on November 12, 1993