Economic viability analysis of a Wagyu beef cattle herd in a complete cycle

Thaís Taninaka, Thiago Bernardino, Rafael Meneghini and Glauber dos Santos

Revista IPecege, 2015, vol. 1, issue 2

Abstract: Japanese Wagyu cattle are an alternative to increase competitiveness in a market with increasingly reduced margins. This study aimed to analyze the viability of a purebred Wagyu herd in a complete cycle between 2009 and 2013. The analysis was based on the following economic indicators: total operating cost, gross revenue, gross margin, and net margin. Revenue consisted of the sale of genetic material, animals, and meat. The final average net margin was positive at R$10,245.88 for the period. However, when compared per animal for the purebred Wagyu herd, the results were lower due to high investments in two periods, 2009 and 2012. Nevertheless, the sales figures, in R$/@, were 7.8 times higher than in other studies. These gains show that if adjustments are made to reduce costs or increase scale, future results could be very promising. The activity demonstrated economic viability during the study period, as the final average net profit margin (NPM) was positive. The pioneering role in the production and marketing of a differentiated livestock product for a niche market highlighted the diversification of businesses in Brazil as well as the strengthening of the brand in the market.

Keywords: Financial; Economics (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ipeceg:386207

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