Analysis of the economic viability of beef cattle farming in the breeding phase, in the municipality of Itapira-SP

Rafael Salim Luccarelli and Glauber dos Santos

Revista IPecege, 2016, vol. 2, issue 4

Abstract: The objective was to study the profitability of beef cattle farming in a low-technology, pasture-based production system for Nellore cattle in the Itapira region of São Paulo. The study also aimed to identify the components that had the greatest influence on the effective operational costs of the activity. The activity was evaluated from the 2012 breeding season until April 2014, when the last calves were weaned and sold, a period lasting 18 months. Profitability analysis was performed using Excel spreadsheets, considering gross margin, net margin, and result (profit or loss) as indicators of economic efficiency. The gross and net margins were positive, indicating that the Nellore cattle farming activity in extensive pasture-based production, developed in the analyzed system, has the potential to survive in the short and medium term. The components of the total cost that had the greatest influence on the activity costs were, in descending order, animal acquisition, land remuneration, depreciation, return on invested capital, feed, and animal health.

Keywords: Livestock; Production/Industries (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ipeceg:386248

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