Cost of sugarcane production in the state of Mato Grosso do Sul

Gislene Garcia de Sousa Pereira, Alfredo Junior Paiola Albrecht, Daiane Aparecida Fausto and Rafaela Alenbrant Migliavacca

Revista IPecege, 2014, vol. 1, issue 1

Abstract: Sugarcane farming demands a high initial investment, and the farmer's decision-making is tied to gathering real information about profitability. To achieve this goal, we need tools to assist in project management, clearly demonstrating the observed bottlenecks and how to overcome them. For this purpose, this study assessed the production cost and economic viability of implementing sugarcane cultivation on a rural property located in the municipality of Caarapó, Mato Grosso do Sul. In the scenario presented in this work, sugarcane production in a supply system is favorable, as the calculated production cost was R$5,211.19 per hectare, and the NPV and IRR values ​​presented in the analysis of this investment were positive. The analyses showed that productivity, ATR content, and ATR price are the most impactful factors on the system's profitability. These results are relevant because, in the already implemented system, fixed costs should not vary significantly, and with an increase in the planting area, these costs will be spread over time.

Keywords: Crop; Production/Industries (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ipeceg:386203

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