Application of Partial Budget Analysis in Evaluating the Economic Efficiency of Technical Solution Applied in Livestock Production - A Review

Date Received: 24-04-2025

Date Accepted: 20-05-2025

Date Published: 23-05-2025

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How to Cite:

Trach, N., & Chung, D. (2025). Application of Partial Budget Analysis in Evaluating the Economic Efficiency of Technical Solution Applied in Livestock Production - A Review. Vietnam Journal of Agricultural Sciences, 23(4), 499–507. https://doi.org/10.31817/tckhnnvn.2025.23.4.

Application of Partial Budget Analysis in Evaluating the Economic Efficiency of Technical Solution Applied in Livestock Production - A Review

Nguyen Xuân Trach 1 , Do Kim Chung (*) 2

  • Tác giả liên hệ: dokimchung.hua@gmail.com
  • 1 Khoa Chăn nuôi, Học viện Nông nghiệp Việt Nam
  • 2 Khoa Kinh tế và Phát triển Nông thôn, Đại học Nông nghiệp Hà Nội và Khoa Kế toán và Quản trị doanh nghiệp, Đại học Nông nghiệp Hà Nội
  • Keywords

    Partial budget analysis, economic efficiency, livestock production, technical solution

    Abstract


    Among the various methods used to assess economic viability, partial budget analysis (PBA) is considered a practical and effective tool for evaluating the economic efficiency of technical interventions in livestock production. PBA focuses on changes in four key economic components - increased income, reduced costs, increased costs, and decreased income - resulting from the implementation of a specific technical solution. By concentrating only on the elements affected by the intervention, PBA enables the estimation of net income change without requiring comprehensive data from the entire production system. This paper presents an overview of PBA, covering its concept, guiding principles, scope of application, and practical use in livestock research and production. Case study analyses illustrate PBA’s capacity to quantify the economic benefits of various technical improvements, including enhanced nutrition, genetic upgrades, housing system improvements, and veterinary interventions. The paper concludes that PBA is a straightforward yet powerful tool for evaluating the economic impact of technical advancements, thereby supporting more informed and efficient investment decisions in livestock production

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