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Economic preliminary study;

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HAYVANCILIK EKONOMİSİ DERS NOTLARI HAYVANCILIK EKONOMİSİ DERS NOTLARI

Prof. Dr. Yılmaz ARAL Prof. Dr. Yılmaz ARAL

What are the technical, economic and financial preliminary information?

Economic preliminary study;

- How much goods or services the enterprise should produce,

- The price at which the goods will be sold,

- Market research for the product, - Growth rates of the market,

- Explains the capacity where the

business should be established.

(2)

HAYVANCILIK EKONOMİSİ DERS NOTLARI HAYVANCILIK EKONOMİSİ DERS NOTLARI

Prof. Dr. Yılmaz ARAL Prof. Dr. Yılmaz ARAL

Technical preliminary study;

- Which production method to choose,

- What the necessary machinery and equipment can be,

- What type of buildings and how much land is needed,

- Determines the order in which works go on.

(3)

HAYVANCILIK EKONOMİSİ DERS NOTLARI HAYVANCILIK EKONOMİSİ DERS NOTLARI

Prof. Dr. Yılmaz ARAL Prof. Dr. Yılmaz ARAL

Financial preliminary study;

 Determination of investment cost and revolving fund needs of the enterprise to be established,

 Internal and outsourcing funds,

 Production cost and

 Reveals whether the business will work profitably.

(4)

HAYVANCILIK EKONOMİSİ DERS NOTLARI HAYVANCILIK EKONOMİSİ DERS NOTLARI

Prof. Dr. Yılmaz ARAL Prof. Dr. Yılmaz ARAL

Factors affecting the choice of establishment location in enterprises can be examined in two ways. These are economic and non- economic factors.

Non-economic factors; can be classified as social, political and strategic factors.

Social factors; As a result of policies aimed at eliminating the

differences in economic development between regions, they are

effective factors in determining the location of the enterprise. The

aim is to establish enterprises that will provide labor force

employment in the region and which predominate social purpose as

well as profitable and productive work.

(5)

HAYVANCILIK EKONOMİSİ DERS NOTLARI HAYVANCILIK EKONOMİSİ DERS NOTLARI

Prof. Dr. Yılmaz ARAL Prof. Dr. Yılmaz ARAL

Political factors; They are effective factors in the establishment of

enterprises under the influence of political decisions. There are

enterprises established under the influence of such irrational decisions in various periods, with a more or less dose in each period.

Strategic factors; defense industry (war industry) enterprises are

established under the influence of these factors. For example, the war

industry is important for the defense and economy of the country, and

they are not established near the borders or at the ports.

(6)

HAYVANCILIK EKONOMİSİ DERS NOTLARI HAYVANCILIK EKONOMİSİ DERS NOTLARI

Prof. Dr. Yılmaz ARAL Prof. Dr. Yılmaz ARAL

Economic factors; are the factors that require rational behaviors in choosing the place of establishment of enterprises.

a. Cost of transportation

b. The availability of production factors in the place where the

enterprise is located and the relative costs between production factors,

c. Infrastructure such as energy, water, electricity, natural conditions

such as climate, legal conditions such as tax system and legislation can be

considered as effective factors.

(7)

HAYVANCILIK EKONOMİSİ DERS NOTLARI HAYVANCILIK EKONOMİSİ DERS NOTLARI

Prof. Dr. Yılmaz ARAL Prof. Dr. Yılmaz ARAL

Choosing the optimum location

• In order to make a rational decision in choosing the place of establishment in the enterprise, it is necessary to find the optimum balance.

The factors that affect the optimum balance are sales cost, sales price and profit.

• From these effects, at the point of the minimum cost of sales, and at the point of maximum sales price and profit is the optimum balance of the place of establishment.

• * The following example shows how the profit from the product produced

in the enterprises established in 3 different regions changes depending on

the location of the establishment.

(8)

HAYVANCILIK EKONOMİSİ DERS NOTLARI HAYVANCILIK EKONOMİSİ DERS NOTLARI

Prof. Dr. Yılmaz ARAL Prof. Dr. Yılmaz ARAL

As it is seen in the example, production costs in the enterprise are important in choosing the place of establishment of the enterprise but do not constitute a criterion in decision making. Considering the total production cost in the example, Region A is the most suitable location for the establishment of the enterprise.

Deciding at this stage can be misleading.

Therefore, it is necessary to find the place where the sales cost is minimized (minimized) rather than the production cost. As you can see, this area is zone B. Since the entity expects a certain income from product sales, the place where the profit is maximized has emerged as the establishment location of B.

Criteria Regions

A B C

Production Factors

Labor Capital

Natural Resource

15.000 25.500 30.000

16.000 25.300 31.000

16.500 25.000 32.000

I.Cost of Production 70.500 72.300 73.500

II. Marketing and Transportation Costs 18.000 10.000 12.500

I + II = III Total Cost (Sales Cost) Sales Income

88.500 150.000

82.300 150.000

86.000 150.000

Profit (TL) 61.500 67.700 64.000

Comparison of candidate establishment locations in choosing optimum establishment location

(9)

HAYVANCILIK EKONOMİSİ DERS NOTLARI HAYVANCILIK EKONOMİSİ DERS NOTLARI

Prof. Dr. Yılmaz ARAL Prof. Dr. Yılmaz ARAL

The cost of sales, which is one of the factors affecting the location of the

establishment in the enterprises, is much more important than the production cost.

This is because sales costs may not always be minimum in the region or region where production costs are minimized.

For this reason, it is necessary to evaluate separately where the cost of sales is minimized after minimization of production cost in project works for the enterprise establishment.

In other words, where production costs are minimized, sales costs shouldnt

always be minimized.

(10)

HAYVANCILIK EKONOMİSİ DERS NOTLARI HAYVANCILIK EKONOMİSİ DERS NOTLARI

Prof. Dr. Yılmaz ARAL Prof. Dr. Yılmaz ARAL

In this context, the most important factor in the success and rational production of livestock enterprises (cattle fattening, dairy cattle breeding, poultry enterprises, etc.) is the most accurate and appropriate choice of establishment.

Differences in production characteristics and market structures of livestock subsectors should be taken into account during investment.

In order to achieve the optimum in the selection of place of establishment for livestock enterprises, the factors that constitute the production costs (feed, labor, animal material, vaccine-medicine, infrastructure, stocking and material expenses, etc.), marketing and transportation costs, product sales price and revenue, unit cost and profitability must be handled and examined in integrity.

Within the scope of pre-establishment studies in veterinary clinic

establishments, issues such as investment cost amount, financing need,

determination of income elements and estimation of periodic earnings,

return on investment should be considered.

(11)

HAYVANCILIK EKONOMİSİ DERS NOTLARI HAYVANCILIK EKONOMİSİ DERS NOTLARI

Prof. Dr. Yılmaz ARAL Prof. Dr. Yılmaz ARAL

Any Questions ?!?

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