|Publication date:||June 2012|
|Published by:||Grootfontein Agricultural Development Institute|
SM2006 is a simulation model for the calculation of the profitability of different small stock enterprises at the gross margin level. It is a Microsoft Excel spreadsheet that consists of all the formulas to perform the aforementioned calculation.
It is often expected from sheep and goat advisors to know all the economic realities of different aspects of small stock farming and its associated management practices. Due to the complexity of such calculations, the economic implications of advice given by advisors are in most cases not known and therefore not provided by advisors to producers. As a result of this, the Grootfontein Agricultural Development Institute initiated a project in 1987, which would enable the then extension officers of the Department of Agriculture to give more informed advice to extensive sheep producers. By 1988, several simulation models were released. Today, fifteen years after their release, these models are still being used for the supply of financially based advice to producers. Minor improvements and upgrading over the years kept the models relevant and the SM2006 model is the Microsoft Excel version of the models released in 1988.
Although SM2006 has been used to give financially based advice to producers it should always be kept in mind that it has a specific field of application as well as certain limitations, such as:
Extensive grazing land: SM2006 was developed for the provision of financially sound advice for extensive sheep and goat farming
Enterprise modulation: SM2006 was developed as simulation model for small stock enterprises to the level of Gross Margin and not for the purpose of viability studies of farming businesses. It is, however, ideal for performing economic impact analysis on small stock enterprises.
Mating seasons: SM2006 can perform simulations of systems where one of the following three mating systems are followed: (i) once a year (ii) twice a year (iii) three times in two years
Angora goats: Although SM2006 correctly calculates animal numbers of Angora goat farming enterprises, the details of fibre production was not specifically developed for Angora goats.
For queries, suggestions or comments - e-Mail: Tino Herselman.