Assessment of Semi-tangible benefits
The tool calculates the break-even point where the costs of implementing the PLF technology are exactly compensated by increased revenues and/or decreased production costs.
Let's consider a farmer who envisage to install a PLF technology with an investment cost of 25 000 €, depreciation period 10 years and yearly maintenance costs 1% of the investment costs.
Example : Example 1 : The technology is expected to increase milk yield
The break-even point is 8 209 kg milk per cow per year : the production must increase by more than 109 kg milk per cow per year for the farmer to have an economic advantage in implementing the PLF technology.
Example : Example 2 : The technology is expected to reduce the cost of concentrates
The break-even point is 637.5 € per year : the cost of concentrates must decrease by more than 42.5 € per cow per year for the farmer to have an economic advantage in implementing the PLF technology.
Example : Example 3 : The technology is expected to reduce labour hours
The break-even point is 1 892 hours per year : the labour time must decrease by more than 188 hours per year for the farmer to have an economic advantage in implementing the PLF technology.
Complement :
Use the Excel tool for the calculation of semi-tangible benefits at farm level
