Formulating the Least Cost Feeding Strategy of a Custom Feeding Programme: A Linear Programming Approach

8 Pages Posted: 18 Feb 2015

See all articles by Bonani Nyhodo

Bonani Nyhodo

National Agricultural Marketing Council - Markets and Economic Research Centre

Victor Mmbengwa

National Agricultural Marketing Council (NAMC)

Abongile Balarane

National Agricultural Marketing Council - Agribusiness Development

Xolile Ngetu

National Agricultural Marketing Council - Agricultural Trusts

Date Written: December 30, 2014

Abstract

The profitability of a developmental project depends on effective use of available resources. That is normally referred to as appropriate decision making that requires a computation of a feasible option among several options to determine the optimal choice. To do that (get the optimal choice) a mathematical technique called Linear Programming was used in this study to provide the cost minimisation option (feed ration). The feed ration that was computed is the least cost feeding strategy (cheapest feed ration that meets the dietary requirements of cattle) appropriate for the custom feeding programme run by the National Agricultural Marketing Council (NAMC). The custom feeding programme, like commercial feedlots, keep animals in a zero grazing and unlike the commercial feedlots accepts even older animals. Noteworthy is that the cost of feed constitute the biggest input used in the custom feeding programme (more than 60% share of total cost of all input used). Therefore, minimising the cost of buying feed is very important to the NAMC and all stakeholders involved in purchasing of feed. The optimal solution indicates that the least or cheapest feed would cost the NAMC R4.71c/kg which is a combination of VM and MB. The most expensive feed to add in the ration would be Lucerne and yellow maize meal. The feasible solution has surpluses of each of the required nutrients.

Keywords: Beef, NRMDP, Linear Programming, Feed, Optimization

Suggested Citation

Nyhodo, Bonani and Mmbengwa, Victor and Balarane, Abongile and Ngetu, Xolile, Formulating the Least Cost Feeding Strategy of a Custom Feeding Programme: A Linear Programming Approach (December 30, 2014). OIDA International Journal of Sustainable Development, Vol. 07, No. 10, pp. 85-92, 2014, Available at SSRN: https://ssrn.com/abstract=2566034

Bonani Nyhodo

National Agricultural Marketing Council - Markets and Economic Research Centre ( email )

Pretoria
South Africa

Victor Mmbengwa (Contact Author)

National Agricultural Marketing Council (NAMC) ( email )

Pretoria
South Africa

Abongile Balarane

National Agricultural Marketing Council - Agribusiness Development ( email )

Pretoria
South Africa

Xolile Ngetu

National Agricultural Marketing Council - Agricultural Trusts ( email )

Pretoria
South Africa

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