MILK PRODUCTION PROCESS AND QUALITY: ITS IMPACT ON THE PROFITABILITY OF GOAT FARMING SMEs

Abstract

The goat milkery sector conform a very important agro industrial complex in the Argentinean Norwest. Around the 60% of the national production is extracted at the region, and almost entire milk production is used by
the industry in the artisan elaboration of the goat.

The general objective of this paper is the study of cost structure and profits variations as a result of a not too much fit manufacture
techniques and differentials milk qualities.

For the current investigation a multidisciplinary team has been working whit a modern factory
during a period of time of nine month, studying milk qualities and production costs, determining
theoretical and real yields for 18 elaborations; and the points of balance and monthly results
for such period.

The analysis shows the existence of an important cost fluctuation at the direct
production materials: we can observe minimum and maximum values of $ 7.54 and $ 11.86,
respectively. The difference between real and theoretical yields impacts in annual business
profits in $ 1,926.08; and milk quality does the same in $ 10,358.60.
With the obtained information we arrive to the conclusion that the rent and profits of these
small businesses are seriously affected in consequence of the milk quality and manufacture techniques.