Sarda Farms Case Study Solution
Alternate Strategies
Artificial Insemination using Bull’s Semen:
Since artificial insemination is the most effective tool to increase cow productivity and milk yield. The organization can import bull’s semen from international markets as it is locally unavailable and keeping the bull will be riskier for the organization. The artificial insemination will benefit the organization as it prevents injuries to animals occurring from natural bleeding, keeps the cows safe from sexually transmitted diseases, keeps cow indoors to protect them from harsh climatic conditions, promotes high quality genetics resulting in higher yields and fewer inputs (Weebly, 2019)However, since this process requires more time as compared to natural services, is more costly, requires trained and specialized staff, this process might not be beneficial for the organization due to limited employees and resources
Import Holsteins:
Given that the time period to implement the strategy is short as demand will increase after six months, the organization can consider importing Holsteins, high yielding cows. Although, it will require high cost, it will benefit the organization in expanding its production capacity and meet the future demand of milk. Heifer usually milks thrice a day, on average can produce up to 23,385 lbs of milk, 858 lbs of butterfat and 719 lbs of protein a year, therefore, 9-10 Holsteins will be adequate to meet the organization’s production capacity. However,import barriers and other political restrictions should be considered while implementing this strategy.
Recommendation& Solution
Since the artificial insemination using bull’s Semen requires special equipment, trained individuals and can cause lower fertility in cows if instruments are cleaned improperly or insanitary conditions are not good. Also, if the bulls are not properly tested, genital diseases can be passed to cows (Husbandry, 2019)therefore it would be recommended that in order to increase the production capacity, the organization should consider importing Holsteins as these cows have the potential to yield higher milk.
In order to reduce the feed cost the organization can minimize waste and use feed additives such as Bovatec, Catalyst and Rumens in which will also improve efficiency by 4% to 10%(Progress, 2015). Alternatively, it can find a supplier that provides quality fodder at reasonable rates to ensure the feed cost is cut without compromising the health of the cows and adequate funds are available for future investment needs.
Implementation
In order to increase the production capacity of Sarda Farms, Holstein will be imported from US. It is assumed that the organization will finance the import of cows from a combination of debt and equity. The cows will be purchased for INR 1489per cow(Amazon India, 2019) without import duties and since import duties are high, the cows will need to be purchased in bulk.
Once the cows are imported to India, they will need to be checked by the veterinarian to identify any health issues, after being examined these cows will need to be kept in the air conditioned rooms as they are Europe originated therefore, will take some time to get adjust to the Indian environment. The ALPRO herd management software will need to be fitted in the cow’s necks so that their lactation cycles and health could be monitored from time to time. The organization will need to monitor the milk yield of each cow from time to time to ensure whether the predicted milk demand will be easily met or not. The revenue and cash flow streams should also be monitored on a timely basis to determine the revenues and cost savings after the implementation of this strategy……………….
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