DECISION SUPPORTING SYSTEM FOR ANIMAL BREEDING
SMALL FARMS
Székelyhidi, Tamás
Kovács, Attila
Agricultural Cooperative
Development International
Volunteers in Overseas Cooperative Assistance
Budapest, Hungary
Gödöllő University of
Agricultural Sciences
Department of economy
Gödöllő, Hungary
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ABSTRACT
Our objective has been to develop a computerized application to assist (small and medium size enterprises)
new farmers, and farmers experienced in livestock production in decision making.
We were trying to consider the objectives that we thought were important in relation to developing the system
as well as to meet the needs of the farmers. Also our aim was to develop a decision making support system for
those farming practices which did not have anything until now (goat, sheep, red deer, fallow deer wild boar,
pigeon, etc. - basically for the new alternative enterprises).
The software program includes various units:
 basic information on the specific stock, basic references;
 livestock management plan;
 feeding plan;
 stock management plan;
 calculation of costs based on the variation of livestock;
 calculation of the income;
 loan calculations and liquidity assessment;
 summary tables.
During the last four months the ACDI/VOCA organized four training programme for goat producers. The
software became the best communication tool between farmers and lecturers and adviser because they could set
up models easily and predict the future opportunities for farmers.
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INTRODUCTION
The principles of the software programme originate from the Malom Vezetői és
Tulajdonosi Információs Rendszer (Mill Management and Owners Information System),
which is one of the products that we developed. This decision supporting system of
spreadsheets based on simple cell references provides an opportunity to assess various input
procurement (when, how much, at what cost), product sales and storage capacity alternatives.
After analysing various stock-keeping strategies, the selection considered to be the most
appropriate from the viewpoint of the management, the decision-makers or the owners can be
made. By using the “credit module”, financial plans for obtaining loans can be made easily
and quickly. Besides the afore-mentioned issues, the software programme provides an
opportunity to clarify the problems associated with the balance of the VAT resulting from the
different timing of tax paying and reclaiming. Finally, the ultimate advantage of the software
programme is that each specific alternative plan can be compared to the one utilized on the
given farm.
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Following is a description of the spreadsheet-based software programme supporting
livestock farmers.
Our objective has been to develop a computerized application to assist small and medium
size enterprises, new farmers, and farmers experienced in livestock production in decision
making. The application developed makes it possible to elaborate a planning model for an
additional species of livestock in one or two days upon obtaining the appropriate information
on the relevant feeding, livestock management and production technology used.
When developing the software programme, we intended to enable it to monitor the
processing of products (if there is any on-farm processing) as well.
The software programme shall
 be appropriate to be used within the framework of a future training programme;
 meet the needs of the financial institutions concerning the information required on the
enterprises when evaluating their loan applications;
 render it possible to monitor the sales and the procurement of the major products and
inventories of strategic importance, and consequently to make it possible to quickly
develop sales and procurement alternatives;
 be suitable to assess the economic efficiency of the investments;
 provide for the break-even analyses;
 make it possible to assess the various feeding alternatives.
MATERIAL AND METHODS
The structure of the programme
The software programme includes various units:
1. basic information on the specific stock, basic references;
2. livestock management plan;
3. feeding plan;
4. stock management plan;
5. calculation of costs based on the variation of livestock;
6. calculation of the income;
7. loan calculations and liquidity assessment;
8. summary tables.
Besides the units listed above we have been trying to consider various additional
objectives. When developing the software programme we used Microsoft Excel 5.0 as a basis
and aimed at making the software programme easily adaptable to each specific environment as
well as at providing for the opportunity to append new modules to the existing units.
1. Basic data and basic correlations in regard to the specific stock
This unit incorporates the data and correlations on which the system is based including:
 a table of age groups;
In this table the description of the various age groups, and the needs of these age groups
for dry matter, net energy and crude protein are included. These data provide for the
basis for preparing a feeding plan. This table shall include age groups with uniform
feeding requirements. The package continues with a background table where the users
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
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can find the list of different nutrients with the basic data. The user can convert these into
the table very easily (the table can be developed in any environment).
a table of correlation between various age groups;
The user can find in this section the matrix of decreases and increases, and matrix of the
offspring.
a table of the progeny ratio;
a table of the death ratio;
feeding losses.
2. Plan for the changing livestock
In the plan for the changing livestock the following are included:
 the table including the increase and decrease of the age group;
 the table of the feeding plan containing the above requirements and the balances of dry
material, net energy and crude;
 the quantity, cost and - if the feed is produced by the producer itself - the area required for
the production of feed consumed.
The above values were added by age groups and included in a summary table.
3. Stock management plan
By means of this plan the purchase and the stock of three major materials of strategic
importance can be monitored.
The financial plan can be influenced by the choice of the purchasing time.
4. Cost budgeting as a function of stock, income calculation
The operation costs will be included. Cost budgeting will be prepared corresponding to the
previously determined stock size. Therefore, only those costs can be included which vary by
the size of production. Income values are calculated in a similar way. (The cost of TQM
system can be calculated in this part.)
5. Loan calculations and liquidity analysis
In this section one can apply for three types of the most important loans. From these, two
are current assets loans and one is a long-term loan (additional possibilities can be found too).
The programme records automatically the repayment of the loans corresponding to the terms.
The operational costs and the income are summarized in this table necessary for the liquidity
analysis. A diagram as a function of time shows financing. Also connected to this section is a
software which can help the users to write business plans for banks and can calculate 14
different liquidity numbers by the use of the summary table. Also this part is a clear phase for
the bank which wants to monitor the project or the enterprise.
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6. Summarizing tables
The data in the table are representing one Hungarian goat farm (up to 30 does).
year
1996
1997
1998
1999
2000
(ha)
Area requirement
1 Milking goat
3.1
3.1
3.1
3.1
3.1
2 Dry goat
1.3
1.1
1.1
1.1
1.1
3 Goat in gestation
1.0
1.1
1.1
1.1
1.1
4 Seed goats
1.8
2.0
2.0
2.0
2.0
0.2
0.2
0.2
0.2
0.2
7.4
7.4
7.4
7.4
7.4
5 Young goat
6 Kid
Total:
(HUF)
Investment costs
1
2
Total:
(HUF)
Incomes
Milk and milk products
sales of milk
cottage cheese
425.0
430.1
430.1
430.1
430.1
yogurt
522.5
528.8
528.8
528.8
528.8
cottage cheese
337.5
341.6
341.6
341.6
341.6
spiced cheese with butter
511.5
517.6
517.6
517.6
517.6
fresh cheese
466.2
480.2
480.2
480.2
480.2
spiced cheese
686.7
720.3
720.3
720.3
720.3
510.0
510.0
510.0
510.0
510.0
livestock
Milking goat
Dry goat
Goat in gestation
Seed goat
Young goat
Kid
Total:
107.8
107.8
107.8
107.8
107.8
3567.2
3636.4
3636.4
3636.4
3636.4
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year
1996
1997
1998
1999
2000
(HUF)
Costs
Feed costs
Milking goat
369.0
369.0
369.0
369.0
369.0
Dry goat
153.0
127.6
127.6
127.6
127.6
Goat in gestation
120.0
127.6
127.6
127.6
127.6
Seed male
134.2
146.9
146.9
146.9
146.9
Young
12.5
12.5
12.5
12.5
12.5
Kid
36.7
36.7
36.7
36.7
36.7
Other costs.
117.3
116.6
116.6
116.6
116.6
Processing costs
354.6
352.7
352.7
352.7
352.7
Transportation costs
162.9
162.0
162.0
162.0
162.0
Young goat costs
218.1
216.9
216.9
216.9
216.9
Bedding
102.6
102.0
102.0
102.0
102.0
Extension
97.7
97.2
97.2
97.2
97.2
Feed analysis.
65.1
64.8
64.8
64.8
64.8
Milk analysis
97.7
97.2
97.2
97.2
97.2
Product analysis
195.4
194.4
194.4
194.4
194.4
Rapier costs
58.6
58.3
58.3
58.3
58.3
Development
81.4
81.0
81.0
81.0
81.0
Cost of facility
42.3
42.1
42.1
42.1
42.1
2419.2
2405.4
2405.4
2405.4
2405.4
Cost of envi.prot.
Labor/h
etc.
Total:
(HUF)
Loan
Loans
- Loans on current assets 1.
196.4
- Loans on current assets 2.
500.0
- Long term loans
Total:
696.4
Loan repayment
- Capital repayment of current assets loan 1.
196.4
- Interest repayment of current assets loan. 1.
19.8
- . Capital repayment of current assets loan 2.
500.0
-. 2. Interest repayment of current assets loan.
80.0
-Capital repayment of long term loan.
- Interest repayment of long term loan
Total:
796.1
year
1996
Cash flow before tax and VAT
Total income
1997
1998
1999
2000
HUF
4263.6
3636.4
3636.4
3636.4
3636.4
total costs
3215.3
2405.4
2405.4
2405.4
2405.4
Balance
1048.3
1230.9
1230.9
1230.9
1230.9
Cumulative balance
1048.3
2279.2
3510.2
4741.1
5972.1
In the above table data are to be analyzed further in the other part of the software package
and which can generate into a bookkeeping system.
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CONCLUSIONS
Our objective has been to develop a computerized application to assist small and medium
size enterprises, new farmers, and farmers experienced in livestock production in decision
making.
The system that we developed is a user-friendly system. It can be used by extensions and
banks as well to give advice and monitor farm production.
The major advantage of this Manager information system is that the user can analyse the
current situation and predict the future of the farm very quickly.
Because the programme contains all the parameters of the TQM requirement, sustainability
of the farm is growing with the use of it.
The application developed makes it possible to elaborate a planning model for an
additional species of livestock in one or two days upon obtaining the appropriate information
on the relevant feeding, livestock management and production technology used.
RESULTS
During the last four months the ACDI/VOCA organized four training programmes for goat
producers. The software became the best communication tool between farmers and lecturers
and adviser because they could set up models easily and predict the future opportunities for
farmers.
The ACDI/VOCA decided to put on CD-ROM the whole information and decision-making
support system to promote the extension work in the industry.
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gazdaságokban kecsketej termékek előállítása során. In: XXVI Óvári Tudományos Napok.
PATE Mosomagarovar. III. Kötet pp. 595-601.
Székelyhidi T.- Fercsik P. 1996. Kecsketenyésztéssel foglalkozó családi gazdaságok
állatállományának genetikai fenntarthatósága. In: XXVI Óvári Tudományos Napok PATE
Mosomagyaróvár I. Kötet pp. 178.-183.
Székelyhidi T. – Fercsik P. 1996. Kecskére alapozott családi vállalkozási modell
kialakításának lehetősége egy rendszergazda irányításával és biztosítékaival, kecsketej
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Kötet pp. 742-746.
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vizsgálata, illetve a költségcsökkentő tényezők alkalmazásának lehetőségei. In: XXVI Óvár
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