Financial viability of fixed-time artificial insemination of Nelore and Aberdeen Angus crossbred calves

Nelson Zuchi Neto and Flavio Carlos Dalchiavon

Revista IPecege, 2017, vol. 3, issue 3

Abstract: The crossbreeding of taurine and zebu cattle through Fixed-Time Artificial Insemination (FTAI) is a reality on many rural properties in Brazil. Considering the advantages of FTAI combined with the advantages of industrial crossbreeding, the objective was to verify the financial viability of this activity on a property in the municipality of Nova Lacerda, MT. To this end, the financial mathematics tools Net Present Value (NPV), Internal Rate of Return (IRR), and Payback period were used. The project proved viable with an NPV above R$ 300,000, an IRR of 23.03%, and a discounted payback period of approximately eight years. The sale of culled calves and the supplementation of calves in a "creep feeding" system proved important for the viability of this project.

Keywords: Livestock; Production/Industries (search for similar items in EconPapers)
Date: 2017
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