Milk Processing on a Family Farm

This study was carried out to analyse the feasibility of setting up a milk processing agro-industry on a family dairy farm located in the rural area of Campestre/MG in 2014 with the aim of assessing the technical economic and financial viability of milk processing. The results show that the agro-industrial activity is economically viable and can make a profit. However from a financial point of view this activity is inefficient due to the high demand for resources and low return on capital invested resulting in a low opportunity cost. This can be attributed to the bureaucratic difficulties that exist in the municipality of Campestre/MG forcing the agro-industry to invest excessively in facilities and machinery that are unnecessary given its estimated production. With this in mind it can be concluded that faced with the impositions of municipal legislation there is no justification for setting up the agro-industry for as long as there is no municipal legislation regulating agro-industrial production for commercialisation in the municipality.