Budgetary control system for the tobacco enterprise

Abstract

An important consideration in almost all farming enterprises the provision of seasonal finance. Tobacco growers in particular require substantial inputs of working capital throughout the growing season because of high production costs and unevenly spread income. Effective control and supervision of financial accounts is desirable both to the financier and to the tobacco grower.

The objective of this thesis is to develop and test a simulation model of the tobacco enterprise which can be used for budgetary control. A 'skeleton' model is developed and incorporated into a comprehensive information system, designed to operate at low cost and with a minimum demand on management and advisory time. The major use of the model is for forecasting and analysing monthly accounts. This relieves farm advisers of the tedious and time-consuming calculations involved and provides the tobacco growers with a more accurate picture of their current financial situation.

It is concluded that skeleton modelling provides a feasible concept whereby the effectiveness of an advisory service can be improved by means of a computerised information system.