Economic viability of industrial yuca production versus cattle farming in Sucre, Colombia

Alejandro Ordoñez Alvarado and Alice Aloísia Cruz

Revista IPecege, 2016, vol. 2, issue 2

Abstract: The Sucre region, in Colombia, has developed slowly in recent years, despite its importance in the agricultural sector. Livestock production, which occupies the largest area of ​​Sucre, is practiced in an extensive system which has caused underutilization of land in the region and overutilization in other areas. In this scenario, the government has created programs with the aim of developing the region, from which it can be cited as an example in the National Plan for the Development of Yuca industrial production in the region and the construction of the Almidones de Sucre SA plant. analyze the economic viability of both to identify which are the most profitable in the Toluviejo-Sucre region. They used economic indicators Current Net Value [VNA], Internal Return Rate [TIR], and discounted “payback”. For both activities, the Caja Flujo system was developed, taking into account costs such as labor, land rent, inputs for livestock and yuca cultivation, soil preparation, among others; and the income for the sale of the yuca and the young man. Both activities are economically profitable, with yuca cultivation showing greater profitability. A sensitivity analysis was carried out using the variables that most affect business profitability, purchase price and sales for livestock and productivity for the yuca.

Keywords: Financial; Economics (search for similar items in EconPapers)
Date: 2016
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