Financial Analysis of Adapting Artificial Insemination (AI) Technology in Selected Dairy Cattle Farms in Lipa City, Batangas, Philippines

The Application of Artificial Insemination (AI) technology in cattle breeding has been a promising method in developing dairy cattle production. The aim of the study was to analyze the financial aspect of selected farms in Lipa City, Batangas, by adapting AI with the assistance of Philippine Asian Biotechnology Research and Development (PABRD). Three models of payment scheme were used to project the herd inventory, namely (1) purchasing the straws at Php1, 200 each, (2) returning one calf to PABRD for every five calves born, and (3) returning one calf for every six calves conceived. The financial statement analysis showed that the selected farms have weak to stable financial statuses with respect to the financial standard available for dairy cattle industry. Both farms were operating below the breakeven point based on breakeven analysis. The sensitivity analysis suggests that applying AI technology will be a good investment for the farmers, especially when the first model of payment scheme is observed.