Return on Investment
Return on Investment
|
Daily Milk Processing/day |
10,000 l |
|
Production Days/year |
300 days |
|
Price per Kilo Fat |
£ 2.50 |
|
Price per Litre Skim Milk |
£ 0.20 |
|
Production target – Semi Skim |
1.7 % fat |
|
New target – Semi Skim |
1.55 % fat |
|
Improvement |
0.15 % |
|
Annual Saving |
£ 10,575 |
Return On Investment Calculation: (Example)
• Calculations:
(10,000 x 0.15% x £2.5 x 300) – (10,000 x 0.15% x £0.15 x 300)
• Return on Investment < 6 month