Many farms in Slovenia struggle to achieve satisfactory economic results. To address
this, many farmers explore opportunities in supplementary activities. However, before
embarking on such ventures, it is crucial to evaluate the farm's capabilities. This
evaluation must consider natural conditions, available financial resources, market
demands, and competition analysis. As part of this diploma thesis, we analysed an
agricultural holding currently engaged in raising suckler cows and fattening bulls. The
scale of operations, however, is insufficient to sustain full-time employment. The
prospective young successor aims to establish a steady income and secure employment
by introducing milk processing as a supplementary activity. This study examines the
requirements for initiating milk processing as a supplementary activity, including the
anticipated investment in a small processing plant. The necessary funds for this
investment will come from the farm’s own resources. The required facilities for milk
processing will be set up, and operations will be managed by the farm owners. We
detailed the associated costs and projected revenues, assuming that the new venture will
require significant additional labour—approximately one FTE or 1,800 effective hours
per year. The results present the farm's current economic situation alongside the
projected changes brought about by the planned investment, which is expected to have
a lifespan of 15 years, as well as the effects of extending or shortening the lifespan.With
the introduction of complementary milk processing activities is expected to improve the
Turk farm's economic indicators compared to its current state. However, under the given
assumptions, the profitability would remain relatively modest. With an anticipated
hourly rate of EUR 9, the internal rate of return is estimated at just 4%.
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