Permalink : http://hdl.handle.net/2115/63587

This article will discuss the aspects of financial operation via cash-flow analysis in large-scale dairy farm management that strategically aims to expand its operation further. The conclusions are as follows. First, when trying to analyze management in the process of dynamic expansion, there was a significant difference in evaluating between the management analysis method with its emphasis on profitability, versus one with an emphasis on cash flow and stability. It becomes important to diagnose financial stability based on cash flow when evaluating large amounts of investment and dairy farm management in the process of further expansion. Second, the investment timing and priority were deeply related to the increase and decrease in cash amount. In dairy farm management, the production process goes through multiple stages such as feeding, raising and milking, thus decision-making concerning where to place investment priority among various sectors becomes highly critical. Especially for the type of large-scale, extensive land use dairy farming seen in Hokkaido, investment priority should be placed on milking (including the purchase of new cattle) rather than upgrading the feeding stage in order to stabilize financial operation.