Investments always kept a significant impact on the development of any economic sectors, and therefore dairy cattle are no exception. But now the question of return of investments in dairy production is particularly acute — both experienced professionals working in this area most of his life, and those who have just joined dairy production are worried about it. This was the topic of our conversation with Elman Hasanovych Orudzhov, well- known expert in dairy cattle.

Obstacles to Investments

Now the story of unprofitability of dairy farm milkman almost entirely refuted — in many regions on farms with their own forage, profitability of milk production exceeds 35-40%. High performance indicators, including productivity of cows of 7-8 or even 9 tons of milk per cow is no longer a novelty for Ukrainian milkman. However, specific industry needs to consider a number of technical and technological nuances, because the quantity and quality of yields (and hence profits) can be affected by the smallest detail.

For potential investors, the question of return of investment in dairy business is the most important. If you consider the experience of Ukraine and Russia, we see that investment in dairy complexes can be returned after a long time — 10 to 15 years. For most investors, this is unacceptable, because there are industries where return is two or three years. So why risk it and wait so long? However, according to the elementary estimate payback in dairy production should not exceed four or five years. And this discrepancy between theory and reality is a major problem for the development of industrial milk production and major obstacle to investment.

More you can read in «Milk and Farm» magazine #4 (11), August 2012.