Alternative Courses of Action
Alternative Courses of Action
Alternative Courses of Action
poor management practice of the farm in dairy cattle production, the following
increase the milk yield per cow. In every increase of 1 kilogram of milk yield per cow 10
percent of the sale will add to the salary of the laborers which PhP. 260.00 per day.
Therefore if the present milk yield of the farm cow is 3.29 kilogram (Exhibit 5) and
increase this by at least 10 kilogram and per kilogram selling price is PhP. 60.00, the
caretakers has additional PhP.70.00 in there salary. With this system of management the
caretakers will more empowered to take task in most effort or take it the most quality and
In the administration of this action first take a preparation plan for the given works
and impart to every employee the objective and the purposed of the plan. The benefit that
they can get if they do the task effectively and to set there minds and empowered them to
But in the compliance in this reward laborer must first improve the given feed intake
by the animals, improve the quality of the water source for the intake of the animals and
the management of proper waste and sanitation. The others are, as proposed to required
by the management to take handled the put up of a water sprinkler to the outside free
stall area and ventilation inside the building to at least lessen up the stress heat
2
experience by the animals and expansion of another free stall cubicle to required a proper
space for the animals. With all of this effort and work it probably quite up lift the milk
productivity of the animals for at least 10 kilogram of milk per cow per day from the 5
Advantage:
Administering a reward system could improve the health and body condition of
perform accordingly.
Disadvantage:
materials to the improvement of facilities, additional farm supply and the rewards for the
laborers.
If the all of the concern issue are settle down the reward system is stop by the
Animal nutritionist could address the major issue of the farm particularly the feeding
and nutrient requirement in recommend the proper supplement needed by the animals to
Moreover, hiring animals nutritionist can lead to much more productive dairy cattle
area because almost of the time their is the one who can supervise the laborers and with
this its not just addressed the concerns of farm production side but also the human
3
resource where laborers that become disobedience to the work if any immediate
supervisors didn’t present in the farm can be much productive because they know their is
the one that supervised and checking their every work in farm.
For the hiring process of animal nutritionist it can be inquire to BMEG La union
for a more capable and good background applicant that regularly done in hiring process
for the needed employee for office works or can inquired a help to National Dairy
Authority besides most of the dairy cattle of the farm is under their cattle dispersal
program. For the improvement of the other concerns with the credit for the hired animal
nutritionist the management must impart to the employee the improvement objective and
program of the farm and remind them that they are frequently visit by the immediate
Advantage:
Hiring of Animal nutritionist will probably improved the concerns for the nutrient
deficiency to the animals that can lead to a much higher production rate of dairy milk.
The other issues about farm practices and management could be also improve.
Furthermore, not just improved the production side of the farm but also can addressed
the issue of human resource management where laborers are disobedience with the
presence of Animal nutritionist working activity of the laborers are frequently monitored.
Disadvantage:
for the improvement of facilities, expense for the additional farm supply and salary for
Applying the previous set of decision criteria to the proposed action that cited
above for the improvement of management practice for dairy cattle production are rated
as fallows:
After evaluating the advantage and disadvantage of the two different proposed
an action in hiring an animals nutritionist were they could seek assistant from BMEG La
Union or through the help of National Dairy Authority were the dairy cattle of the farm
was under. Eventually, the management must impart to the new hired animal nutritionist
what the present situation encountered by the farm at the dairy cattle operation, to
formulate a proper plan to addressed all the issues. Take an assembly meeting for all the
workers that also involve in the improvement plan for the dairy production to impart to
the objectives of the work and the different concerns that must taken in action.
In the action plan, first off improved the concerns that has a easy work load,
administer a proper sanitation and cleanliness in the farm area, cleaning water sources
5
and put up a sprinkler in the outside free range area and ventilation inside the building to
at least lessen the heat stress of the cattle experience. Afterward focus in the
construction improving facilities. During this plan animal nutritionist must formulate a
proper feed ration from different maturity of the animals and impart this to the caretakers
of dairy cattle aside from supervising the laborers in their work area. Furthermore,
During and after the improvement in all of the concern area and impart the other
practices that must taken every single day in the everyday route by the management.
With this it gradually increase the milk production for at least almost in normal milk
production.
Potential Problem
The farm laborers will be under the supervision of the animal nutritionist. They will
be obliged to work continuously than their regular time they used to. Since, there will be
additional labor for them, they might demand for salary increase.
Fallback Position
Reward system can be done by setting up an employee of the month that can only
Annex 1
DS BOLONG INCORPORATED
Incremental Benefit Cost Analysis for Alternative 1
Incremental Sale
Milk Sale 2,736,000.00
Incremental cost
Farm Expense 51,896.57
Management Expense 943,910.21
Production Expense 228,000.00
Incremental Benefit 1,512,193.22
Annex 2
DS BOLONG INCORPORATED
Incremental Benefit Cost Analysis for Alternative 2
Incremental Sale
Milk Sale 3,384,000.00
Incremental cost
Farm Expense 51,896.57
Management Expense 943,910.21
Production Expense 282,000.00
Incremental Benefit 2,106,193.22
Annex 3
DS BOLONG INCORPORATED
Forecasted Financial Statement for Alternative 1
MONTH
Particulars
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov
SALES: -Milk 126,000 360,000 378,000 324,000 306,000 270,000 252,000 216,000 198,000 162,000 144,000
LESS: cost of sales: -Milk 10,500 30,000 31,500 27,000 25,500 22,500 21,000 18,000 16,500 13,500 12,000
GROSS INCOME 115,500 330,000 346,500 297,000 280,500 247,500 231,000 198,000 181,500 148,500 132,000
LESS: Farm Expenses
Depreciation expense 4,717.87 4,717.87 4,717.87 4,717.87 4,717.87 4,717.87 4,717.87 4,717.87 4,717.87 4,717.87 4,717.87
LESS: Management expenses
Building Expansion 100,000
Equipment and machinery 20,000
salaries and wages 2,631.25 22,631.25 22,631.25 22,631.25 22,631.25 22,631.25 22,631.25 22,631.25 22,631.25 22,631.25 22,631.25
Fringe and Benefit 1937.06 1937.06 1937.06 1937.06 1937.06 1937.06 1937.06 1937.06 1937.06 1937.06 1937.06
feeds 33,696 33,696 33,696 33,696 33,696 33,696 33,696 33,696 33,696 33,696 33,696
veterinary medicine 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Electric and water bill 2,377.81 2,377.81 2,377.81 2,377.81 2,377.81 2,377.81 2,377.81 2,377.81 2,377.81 2,377.81 2,377.81
Gas and oil 6,076.99 6,076.99 6,076.99 6,076.99 6,076.99 6,076.99 6,076.99 6,076.99 6,076.99 6,076.99 6,076.99
Total expenses 181,436.98 84,436.98 84,436.98 84,436.98 84,436.98 84,436.98 84,436.98 84,436.98 84,436.98 84,436.98 84,436.98
NET INCOME -65,936.98 245,563.02 262,063.02 212,563.02 196,063.02 163,063.02 146,563.02 113,563.02 97,063.02 64,063.02 47,563.02
8
9
Annex 4
DS BOLONG INCORPORATED
Assumption Made for the Forecasted Financial Statement for Alternative 1
Assumption Made :
1. Forecasted Sales of milk are accumulated from potential 5 th lactation period (Annex 9)
minus the margin of error (multiplied by the number milk days (30 days), multiplied by
the sales per liter which is PhP. 60.00 and multiplied by the 10 active milking cow.
2. Forecasted expense for the Building Expansion and the equipment and machinery’s are
comes from the allotted budget for the improvement of free stall cubicle and installation
3. Forecasted expense for the salaries and wages are the average expense of the farm as
indicated in financial statement of the farm (Exhibit 6). and the additional Average of
Php.10.00 per day of reward system for the 10 laborers of the farm.
4. Forecasted expense for the, fringe and benefit, electric and water bill, feeds and the gas
and oil are comes from the average report in the financial statement of the farm for dairy
5. Forecasted expense for the Veterinary and vaccination are comes from the price for
Vitamin ADE vaccine which is Php. 1000.00. a set of three Vitamin ADE can g
accommodate 10 cattle and farm had a total of 31 dairy cattle therefore farm need 10 set
DS BOLONG INCORPORATED
Forecasted Financial Statement for Alternative 2
MONTH
Particulars
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov
SALES: -Milk 198,000 432,000 432,000 414,000 378,000 342,000 306,000 270,000 234,000 198,000 180,000
LESS: cost of sales:
16,500 36,000 36,000 34,500 31,500 28,500 25,500 22,500 19,500 16,500 15,000
-Milk
GROSS INCOME 181,500 396,000 396,000 379,500 346,500 313,500 280,500 247,500 214,500 181,500 165,000
LESS: Farm Expenses
Depreciation expense 4,717.87 4,717.87 4,717.87 4,717.87 4,717.87 4,717.87 4,717.87 4,717.87 4,717.87 4,717.87 4,717.87
LESS: Management
expenses
Building Expansion 100,000
Equipment and machinery 20,000
salaries and wages 2,631.25 22,631.25 22,631.25 22,631.25 22,631.25 22,631.25 22,631.25 22,631.25 22,631.25 22,631.25 22,631.25
Fringe and Benefit 1937.06 1937.06 1937.06 1937.06 1937.06 1937.06 1937.06 1937.06 1937.06 1937.06 1937.06
feeds 33,696 33,696 33,696 33,696 33,696 33,696 33,696 33,696 33,696 33,696 33,696
veterinary medicine 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Electric and water bill 2,377.81 2,377.81 2,377.81 2,377.81 2,377.81 2,377.81 2,377.81 2,377.81 2,377.81 2,377.81 2,377.81
Gas and oil 6,076.99 6,076.99 6,076.99 6,076.99 6,076.99 6,076.99 6,076.99 6,076.99 6,076.99 6,076.99 6,076.99
Total expenses 181,436.98 84,436.98 84,436.98 84,436.98 84,436.98 84,436.98 84,436.98 84,436.98 84,436.98 84,436.98 84,436.98
NET INCOME 63.02 311,563.02 311,563.02 295,063.02 262,063.02 229,063.02 196,063.02 163,063.02 130,063.02 97,063.02 80,563.02
10
11
Annex 6
DS BOLONG INCORPORATED
Assumption Made for the Forecasted Financial Statement for Alternative 2
Assumption Made:
1. Forecasted Sales of milk are accumulated from potential 5 th lactation period (Annex 9)
(multiplied by the number milk days (30 days), multiplied by the sales per liter which is
2. Forecasted expense for the Building Expansion and the equipment and machinery’s are
comes from the allotted budget for the improvement of free stall cubicle and installation
3. Forecasted expense for the fringe and benefit, electric and water bill and the gas and oil
are comes from the average report in the financial statement of the farm for dairy cattle
(Exhibit 6).
4. Forecasted expense for the Veterinary and vaccination are comes from the price for
Vitamin ADE vaccine which is Php. 1000.00. a set of three Vitamin ADE can g
accommodate 10 cattle and farm had a total of 31 dairy cattle therefore farm need 10 set
5. Forecasted expense for the Salaries and wages are comes from the average salaries and
wages of caretaker of dairy cattle in the financial statement of the farm for dairy cattle
(Exhibit 6) and the allotted salary for the hired animal nutritionist per month.
6. Forecasted expense for the feeds are comes from the allocated budget for animal feed
per day per head which is Php.50.00 multiply to the number of farm cow which is 31
DS BOLONG INCORPORATED
Benefit Cost Ratio for Alternative 1 and 2
Assumption: incremental benefit and cost are based on the expense and total sales to the
forecasted financial statement of alternative 1 and 2
Alternative 1 Alternative 2
Incremental Benefits Incremental Benefits
2,736,000.00 3,384,000.00
Incremental Cost Incremental Cost
1,223,806.78 1,277,806.78
Computation:
2,736,000.00
For alternative 1: BCR = 1,223,806.78 = 2.24 Acceptable
3,384,000.00
For alternative 2: BCR = 1,277,806.78 = 2.65 Acceptable
Therefore the two alternatives are acceptable but alternative two a much higher
acceptance but it not probably said this is choosing the alternative with much higher
alternatives so for more confirmation of which the two alternatives has more acceptable
DS BOLONG INCORPORATED
Incremental analysis for Alternative 1 and 2
Note:
1. Take the higher first cost alternative and minus to the lower first cost.
Computation:
648,000.00
BCR = 54,000.00 = 12
DS BOLONG INCORPORATED
Potential and actual 5th lactation
Days in Milk
30 60 90 120 150 180 210 240 270 300 330
11.3 +/- 24.6 +/- 24.9 +/- 23.0 +/- 21.4 +/- 19.3 +/- 17.7 +/- 15.8 +/- 13.6 +/- 11.4 +/- 10.0 +/-
Potential 5th Lactation 3.6 4.7 4.3 4.9 4.1 4.3 3.1 3.3 2.6 2.1 1.9
Cattle Farm 5th
2.3 4 3.6 3.5 3.5 3.3 3.1 2.7 - - -
Lactation
Assumption:
* Potential 5th lactation (Exhibit 17 and 18)
** Cattle Farm 5th Lactation (Exhibit 4 and 5)
***+/- margin of error
14
BIBLIOGRAPHY
Grant, R. and Miner, W., 2015. “Economic Benefits of Improved Cow Comfort”.
Retrieved December 19, 2018 from
http://www.dairychallenge.org/pdfs/2015_National/resources/Novus_Economic_Benefits
_of_Improved_Cow_Comfort_April_2015.pdf
Fidler, A., 2000. “Agriculture and Natural Resources: Heat Stress in Dairy Cattle”.
Retrieved November 21, 2018 from https://www.uaex.edu/publications/pdf/fsa-3040.pdf
Schroeder , J.W. “Water Needs and Quality Guidelines for Dairy Cattle”. Retrieved
November 22, 2018 from https://www.ag.ndsu.edu/publications/livestock/water-needs-
and-quality-guidelines-for-dairy-cattle
Makkar, H., 2014. “ Feeding Dairy Cattle in the Tropics: A Manual for Trainers and
Practitioners”. Retrieved November 13, 2018 from https://www.google.com/search?
source=hp&ei=KhQ8XMrQOYz-vgSc56-
YAg&q=feed+dairy+cattle+in+the+tropics+a+manual+for+trainers+and+practitioner&o
q=feed+dairy+cattle+in+the+
+tropics+a+manual+for+trainers+and+practition+&gs_l=mobile-gws-wiz-
hp.1.0.30i10.159898.207578..209655...6.0..1.1801.34636.2-
1j43j17j7j7j0j1......0....1.......5..35i39j0i131j0j46i131j46j0i10j0i22i30j0i13j0i13i30j33i22i
29i30j33i160j33i10.03WyNgsIm0M