Comparing the profitability of a dairy business with alternative investments

Abstract

In the present study, the profitability of a dairy-farm case study evaluated over the period 2003-2004 to 2014-2015 was compared with the performance of other dairy farms and other non-agricultural investments over the same time. Investments are generally made on the expectation that a net return will be earned that justifies using capital in one particular way rather than an alternative way. The expected, and actual, returns from capital invested in different assets will differ according to the risks involved. Investors choose an investment, and mixes of investments, that align with their goals, preferences for risk and anticipated returns over time. Dairy farming involves investing in asse..