Economic viability of raising pacas (Cuniculus paca L.) in Presidente Tancredo Neves, Bahia

Antônio Jorge Mattos and Valdson José Silva

Revista IPecege, 2016, vol. 2, issue 2

Abstract: Among native wild species of tropical forests, the paca ( Cuniculus paca L.) presents great potential for commercial exploitation; however, in Brazil, its production continues to be considered a niche market. This study aimed to analyze the economic viability of a commercial paca breeding facility under three distinct scenarios: Scenario 1 (animals born in captivity, consuming commercially acquired food and commercial feed), Scenario 2 (initial operation with legally captured animals feeding on fruit waste, feed, and cassava by-products), and Scenario 3 (same premises as Scenario 2, but with management authorization occurring two years in advance). The scenarios were studied for the municipality of Presidente Tancredo Neves, Bahia, Brazil. Cash flow analysis was performed, and the Net Present Value [NPV], Internal Rate of Return [IRR], simple payback period, and discounted payback period were analyzed for all scenarios studied. The feeding factor caused the variable costs of Scenarios 2 and 3 to be reduced by approximately 76% compared to Scenario 1. Scenario 1 presented an unviable cash flow, while Scenarios 2 and 3 were viable, but with low profitability and liquidity. The NPV of Scenario 2 was almost 20% higher than that of Scenario 3, where a greater impact of the increase in the number of pacas in the herd was observed, compared to the bureaucratic procedures, on the economic indicators studied.

Keywords: Crop; Production/Industries (search for similar items in EconPapers)
Date: 2016
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