logging in or signing up RoboticMilkEc Alfanso Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINTLite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 349 Category: Entertainment License: All Rights Reserved Like it (0) Dislike it (0) Added: January 04, 2008 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... Premium member Presentation Transcript Robotic Milking Economics: Is the Technology Profitable?: Robotic Milking Economics: Is the Technology Profitable? Jeffrey Hyde Phoebe Engel Department of Agricultural Economics and Rural Sociology Penn State University Penn State is committed to affirmative action, equal opportunity, and the diversity of its workforce Revised 2/14/02Coming Attractions: Coming Attractions Brief History Market Players Economic Considerations Other Considerations Wrap UpBrief History of the Technology: Brief History of the Technology Experimentation and innovation: 1980sBrief History of the Technology: Brief History of the Technology Experimentation and innovation: 1980s First farm installation: 1992Brief History of the Technology: Brief History of the Technology Experimentation and innovation: 1980s First farm installation: 1992 Over 1000 units installed world-wide Most in Europe, half of all new systems are robots Some in Japan About 25 in Canada 6 in PA, 8 in WI, several others plannedPlayers in the Market: Players in the Market Lely - AstronautPlayers in the Market: Players in the Market Lely - Astronaut Source: Lely Web SitePlayers in the Market: Players in the Market Bou-Matic Source: Bou-Matic Web SitePlayers in the Market: Players in the Market DeLaval Source: DeLaval Web SitePlayers in the Market: Players in the Market AMS – Liberty Players in the Market: Players in the Market Lely, Bou-Matic, and Delaval Single unit systems Each unit serves 60-65 cows Players in the Market: Players in the Market Lely, Bou-Matic, and Delaval Single unit systems Each unit serves 60-65 cows AMS-Liberty Multiple units served by one robot Four units serves ~150 cows Milking System: Milking System Source: Lely Web SiteEconomic Considerations: Economic Considerations Can a producer afford to purchase a robotic milking unit relative to a new parlor? Economic Considerations: Economic Considerations What are the investment’s costs? Machinery and Equipment About $125,000 per unit Other costs depend on other constructionEconomic Considerations: Economic Considerations What are the investment’s costs? Maintenance costs Higher than parlor! Maybe twice that of a parlor Depends on contractEconomic Considerations: Economic Considerations What are the investment’s costs? Increased feed bill Cows milked more often eat more Increase costs by about 10%Economic Considerations: Economic Considerations What are the investment’s costs? Potential decrease in component levels Butterfat percentage may fall Research has used a 1% decline in priceEconomic Considerations: Economic Considerations What are the investment’s costs? Shorter life than parlor Not as many years to recoup investment Parlor: 12 years – Robots: 7 yearsEconomic Considerations: Economic Considerations What are the investment’s costs? Herd health concerns Economic Considerations: Economic Considerations What are the investment’s costs? Herd health concerns Transition period substantial – 2 years Economic Considerations: Economic Considerations What are the investment’s benefits? Labor savings Not as significant as you might think! Increase over time Around 31% savings in the long run Percentage may be greater for larger herdsEconomic Considerations: Economic Considerations What are the investment’s benefits? Increase milk production Increase some cows to 3X or more About 7.5 pounds/cow/dayEconomic Considerations: Economic Considerations What are the investment’s benefits? Free time to focus on other thingsEconomic Considerations: Economic Considerations What are the investment’s benefits? Free time to focus on other things Wealth of information per cow Production Health Milking frequencyEconomic Considerations: Economic Considerations What are the investment’s benefits? Free time to focus on other things Wealth of information per cow Production Health Milking frequency Increased cow comfort??Economic Considerations: Economic Considerations Can Pennsylvania farmers afford it? Need to weigh the costs and benefitsEconomic Considerations: Economic Considerations Can Pennsylvania farmers afford it? Need to weigh the costs and benefits Time aspect is very important!Economic Considerations: Economic Considerations Can Pennsylvania farmers afford it? Need to weigh the costs and benefits Time aspect is very important! Much uncertainty Milk price Feed price Production Useful lifeEconomic Considerations: Economic Considerations Can Pennsylvania farmers afford it? Research at Penn State on robot valuesEconomic Considerations: Economic Considerations Can Pennsylvania farmers afford it? Research at Penn State on robot values Simulation AnalysisEconomic Considerations: Economic Considerations Can Pennsylvania farmers afford it? Research at Penn State on robot values Simulation Analysis Estimated breakeven robot values: The maximum the producer can pay for the robot(s) given other parameters in the model (cost of parlor, changes in production, etc.)Economic Considerations: Economic Considerations A series of scenarios were developed based upon: Herd size Alternative milking equipment (parlor) cost Production level Labor cost Length of useful life of the systems OthersEconomic Considerations: Economic Considerations Research Results With 60 cows (1 unit - $125,000) Base Case Breakeven Value = $188,380 Parlor cost = $100,000 Production = 18,000 Labor cost = $10,000 Milk Price = $14.00Economic Considerations: Economic Considerations Research Results With 120 cows (2 units - $250,000) Base Case Breakeven Value = $361,198 Parlor cost = $150,000 Production = 18,000 Labor cost = $20,000 Milk Price = $14.00Economic Considerations: Economic Considerations Research Results With 180 cows (3 units - $375,000) Base Case Breakeven Value = $534,016 Parlor cost = $200,000 Production = 18,000 Labor cost = $30,000 Milk Price = $14.00Economic Considerations: Economic ConsiderationsEconomic Considerations: Economic Considerations Sensitivity Analysis – Parlor Cost $1000 increase = $690 increase in breakevenEconomic Considerations: Economic Considerations Sensitivity Analysis – Labor Cost $1 increase = $3.68 increase in breakevenEconomic Considerations: Economic Considerations Sensitivity Analysis – Production 1 lb./cow increase = -$2.84 per robotic unit -$5.68 for two units -$8.52 for three units…Economic Considerations: Economic Considerations Sensitivity Analysis – Milk Price $1 increase = $8,583 per robotic unitEconomic Considerations: Economic Considerations Sensitivity Analysis – Useful life of robot(s) 1 year increase = about $18,000 per robotic unitEconomic Considerations: Economic Considerations Sensitivity Analysis – Useful life of parlor 1 year increase = about -$3,750 per robotic unitEconomic Considerations: Economic Considerations Sensitivity Analysis – General Can (roughly) add effects of individual sensitivity analysesOther Considerations: Other Considerations Milk quality is a concernOther Considerations: Other Considerations Milk quality is a concern Transition period is substantial – 2 yearsOther Considerations: Other Considerations Milk quality is a concern Transition period is substantial – 2 years More information on cowsOther Considerations: Other Considerations Milk quality is a concern Transition period is substantial – 2 years More information on cows Avoid labor managementOther Considerations: Other Considerations Milk quality is a concern Transition period is substantial – 2 years More information on cows Avoid labor management “Free” timeTough Choice!: Tough Choice! Good record keeping is the key! Without, possibility of bad choice increasesTough Choice!: Tough Choice! Good record keeping is the key! Without, possibility of bad choice increases Do your homework Take a trip!Tough Choice!: Tough Choice! Good record keeping is the key! Without, possibility of bad choice increases Do your homework Take a trip! Use the Penn State Decision Tool http://farmmanagement.aers.psu.eduThank You!: Thank You! A computer doesn’t charge for overtime and doesn’t get health care benefits. -Adam Smith You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
RoboticMilkEc Alfanso Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINTLite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 349 Category: Entertainment License: All Rights Reserved Like it (0) Dislike it (0) Added: January 04, 2008 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... Premium member Presentation Transcript Robotic Milking Economics: Is the Technology Profitable?: Robotic Milking Economics: Is the Technology Profitable? Jeffrey Hyde Phoebe Engel Department of Agricultural Economics and Rural Sociology Penn State University Penn State is committed to affirmative action, equal opportunity, and the diversity of its workforce Revised 2/14/02Coming Attractions: Coming Attractions Brief History Market Players Economic Considerations Other Considerations Wrap UpBrief History of the Technology: Brief History of the Technology Experimentation and innovation: 1980sBrief History of the Technology: Brief History of the Technology Experimentation and innovation: 1980s First farm installation: 1992Brief History of the Technology: Brief History of the Technology Experimentation and innovation: 1980s First farm installation: 1992 Over 1000 units installed world-wide Most in Europe, half of all new systems are robots Some in Japan About 25 in Canada 6 in PA, 8 in WI, several others plannedPlayers in the Market: Players in the Market Lely - AstronautPlayers in the Market: Players in the Market Lely - Astronaut Source: Lely Web SitePlayers in the Market: Players in the Market Bou-Matic Source: Bou-Matic Web SitePlayers in the Market: Players in the Market DeLaval Source: DeLaval Web SitePlayers in the Market: Players in the Market AMS – Liberty Players in the Market: Players in the Market Lely, Bou-Matic, and Delaval Single unit systems Each unit serves 60-65 cows Players in the Market: Players in the Market Lely, Bou-Matic, and Delaval Single unit systems Each unit serves 60-65 cows AMS-Liberty Multiple units served by one robot Four units serves ~150 cows Milking System: Milking System Source: Lely Web SiteEconomic Considerations: Economic Considerations Can a producer afford to purchase a robotic milking unit relative to a new parlor? Economic Considerations: Economic Considerations What are the investment’s costs? Machinery and Equipment About $125,000 per unit Other costs depend on other constructionEconomic Considerations: Economic Considerations What are the investment’s costs? Maintenance costs Higher than parlor! Maybe twice that of a parlor Depends on contractEconomic Considerations: Economic Considerations What are the investment’s costs? Increased feed bill Cows milked more often eat more Increase costs by about 10%Economic Considerations: Economic Considerations What are the investment’s costs? Potential decrease in component levels Butterfat percentage may fall Research has used a 1% decline in priceEconomic Considerations: Economic Considerations What are the investment’s costs? Shorter life than parlor Not as many years to recoup investment Parlor: 12 years – Robots: 7 yearsEconomic Considerations: Economic Considerations What are the investment’s costs? Herd health concerns Economic Considerations: Economic Considerations What are the investment’s costs? Herd health concerns Transition period substantial – 2 years Economic Considerations: Economic Considerations What are the investment’s benefits? Labor savings Not as significant as you might think! Increase over time Around 31% savings in the long run Percentage may be greater for larger herdsEconomic Considerations: Economic Considerations What are the investment’s benefits? Increase milk production Increase some cows to 3X or more About 7.5 pounds/cow/dayEconomic Considerations: Economic Considerations What are the investment’s benefits? Free time to focus on other thingsEconomic Considerations: Economic Considerations What are the investment’s benefits? Free time to focus on other things Wealth of information per cow Production Health Milking frequencyEconomic Considerations: Economic Considerations What are the investment’s benefits? Free time to focus on other things Wealth of information per cow Production Health Milking frequency Increased cow comfort??Economic Considerations: Economic Considerations Can Pennsylvania farmers afford it? Need to weigh the costs and benefitsEconomic Considerations: Economic Considerations Can Pennsylvania farmers afford it? Need to weigh the costs and benefits Time aspect is very important!Economic Considerations: Economic Considerations Can Pennsylvania farmers afford it? Need to weigh the costs and benefits Time aspect is very important! Much uncertainty Milk price Feed price Production Useful lifeEconomic Considerations: Economic Considerations Can Pennsylvania farmers afford it? Research at Penn State on robot valuesEconomic Considerations: Economic Considerations Can Pennsylvania farmers afford it? Research at Penn State on robot values Simulation AnalysisEconomic Considerations: Economic Considerations Can Pennsylvania farmers afford it? Research at Penn State on robot values Simulation Analysis Estimated breakeven robot values: The maximum the producer can pay for the robot(s) given other parameters in the model (cost of parlor, changes in production, etc.)Economic Considerations: Economic Considerations A series of scenarios were developed based upon: Herd size Alternative milking equipment (parlor) cost Production level Labor cost Length of useful life of the systems OthersEconomic Considerations: Economic Considerations Research Results With 60 cows (1 unit - $125,000) Base Case Breakeven Value = $188,380 Parlor cost = $100,000 Production = 18,000 Labor cost = $10,000 Milk Price = $14.00Economic Considerations: Economic Considerations Research Results With 120 cows (2 units - $250,000) Base Case Breakeven Value = $361,198 Parlor cost = $150,000 Production = 18,000 Labor cost = $20,000 Milk Price = $14.00Economic Considerations: Economic Considerations Research Results With 180 cows (3 units - $375,000) Base Case Breakeven Value = $534,016 Parlor cost = $200,000 Production = 18,000 Labor cost = $30,000 Milk Price = $14.00Economic Considerations: Economic ConsiderationsEconomic Considerations: Economic Considerations Sensitivity Analysis – Parlor Cost $1000 increase = $690 increase in breakevenEconomic Considerations: Economic Considerations Sensitivity Analysis – Labor Cost $1 increase = $3.68 increase in breakevenEconomic Considerations: Economic Considerations Sensitivity Analysis – Production 1 lb./cow increase = -$2.84 per robotic unit -$5.68 for two units -$8.52 for three units…Economic Considerations: Economic Considerations Sensitivity Analysis – Milk Price $1 increase = $8,583 per robotic unitEconomic Considerations: Economic Considerations Sensitivity Analysis – Useful life of robot(s) 1 year increase = about $18,000 per robotic unitEconomic Considerations: Economic Considerations Sensitivity Analysis – Useful life of parlor 1 year increase = about -$3,750 per robotic unitEconomic Considerations: Economic Considerations Sensitivity Analysis – General Can (roughly) add effects of individual sensitivity analysesOther Considerations: Other Considerations Milk quality is a concernOther Considerations: Other Considerations Milk quality is a concern Transition period is substantial – 2 yearsOther Considerations: Other Considerations Milk quality is a concern Transition period is substantial – 2 years More information on cowsOther Considerations: Other Considerations Milk quality is a concern Transition period is substantial – 2 years More information on cows Avoid labor managementOther Considerations: Other Considerations Milk quality is a concern Transition period is substantial – 2 years More information on cows Avoid labor management “Free” timeTough Choice!: Tough Choice! Good record keeping is the key! Without, possibility of bad choice increasesTough Choice!: Tough Choice! Good record keeping is the key! Without, possibility of bad choice increases Do your homework Take a trip!Tough Choice!: Tough Choice! Good record keeping is the key! Without, possibility of bad choice increases Do your homework Take a trip! Use the Penn State Decision Tool http://farmmanagement.aers.psu.eduThank You!: Thank You! A computer doesn’t charge for overtime and doesn’t get health care benefits. -Adam Smith