Economic viability of beekeeping in the municipality of Botucatu - SP

Jhônatas Gomes dos Reis and Thiago Ricielli de Paula Aragão

Revista IPecege, 2015, vol. 1, issue 3/4

Abstract: The municipality of Botucatu could be an excellent option for the development of beekeeping due to its great diversity of agricultural crops, favorable climatic conditions, and its location near important state highways, which would facilitate the flow of production. Therefore, the objective was to study the economic viability of establishing a honey production company in the municipality of Botucatu - SP. Based on the analysis of various factors that comprise the sustainability of a beekeeping activity, a company with 480 beehives and a honey processing house for all production was considered. The investments, maintenance costs, profitability, and estimated business growth over five years were analyzed. Through a cash flow analysis, the net present value (NPV) indicators were obtained, with a minimum attractive rate of return (MARR) of 6%, internal rate of return (IRR), and payback period, as well as the break-even point calculation. The project was considered economically viable, with an NPV of R$ 116,163.57 and an IRR of 33%. The company's annual net profit reached R$ 61,374.00, which, accumulated over five years, could reach R$ 164,503.95. Based on the payback period, the investor would see a return on their initial investment starting from two years and four months. The minimum honey production required for the project to be profitable was 14,558 kg of honey per year.

Keywords: Financial; Economics (search for similar items in EconPapers)
Date: 2015
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