Considerations on the formulation of livestock investment projects.

in #agriculturelast year (edited)
Dear readers, the agricultural market is fundamental, because through it food is guaranteed for the population in addition to providing raw materials to the agro-industry, those who produce these are the agro-ecosystems also known as agricultural production units or agribusiness. In these agricultural enterprises it is necessary to make big investments to fulfill the tasks of own production, In this sense, investment projects are a great alternative for obtaining financing provided that a correct formulation of them is made that allows consolidating the agricultural business.

Design by @amestyj with image of your property

In the same vein, it is important to note that the idea of a project is part of the planning carried out by the management of the farm to meet the objectives set, according to the FAO (Food and Agriculture Organization of the United Nations) a project is the combination of human and non-human resources that are integrated to solve or strengthen a specific situation and for this purpose has a defined duration and resources. Below, we describe some stages that according to Díaz’s criterion in 2010 should be considered for the formulation of a livestock investment project.

- Diagnosis

As we all know when we talk about diagnosis is referred to the knowledge of the situation and the environment, so a review of the agricultural company should be done in depth, as well as the financial and commercial policies that are in force, since from there the route of financing of the project is directed. It is also important to know the location of agribusiness, the agro-ecological characteristics of the area, access roads, production systems that predominate among other characteristics. In itself, what is sought is to know the potential and limitations of the company with the intention of formulating concrete objectives and goals.

- Market research

It can be said that market research is part of the diagnosis, it is done with the intention of determining demand, supply, prices, marketing, all this information will allow to project prices, What will be the means of marketing and of course know if the product to be generated has a viable market, in the case of livestock the most marketed products are milk or meat. In some rural areas there are agro-industries such as slaughterhouses and milk processors that guarantee that the product will have an assured destination.

Image alluding to market research

Design by amestyj with public domain image taken from PIXABAY

Generally the most used sources of information to obtain concrete data based on official statistics are censuses, economic studies carried out by universities, among other data that can be provided by government agencies.

- Valuation of agricultural assets

It is clear that the valuation of the assets of the agricultural enterprise is carried out with the aim of formulating a fair value of the property, of course, which will generate value any good that provides a utility such as in the case of agro-ecosystems the machinery, implements among others with which a service is provided for the agronomic works of the property. The following aspects may also be considered:

  • Value of good works: they are those works that facilitate the handling of animals or machinery in the farms such as, for example: fences, cowgirls, sheds among others.

  • Value of animals: this reflects the value of all animals found on the farm of any species.

  • Value of the crops: refers to the value that the crops may have within the farm, these can be of short cycle, annual or perennial.

In summary, dear readers, for the implementation of an investment project it is necessary to gather a large amount of information in order to establish goals and objectives that can be achieved, for this, market research plays a fundamental factor, for the feasibility of the project.

Bibliographic references
  • Díaz, F. (2010). Formulation and evaluation of investment projects. Feunet. San Cristobal
  • Contreras, J. (1996). Avaluos de Fincas. Espasande. Caracas.

I hope the article was to your liking, Thank you for staying with me till the end.