The aim of this research was to assess the economic profitability of a associative sheep husbandry business system for 20 agricultural small holdings, located in the inner unirrigated Linares area, in the Maule region, Chile. Data from the period of November 2002 until June 2003 were recollected, for characterizing the producers in four quite homogeneous sub-groups, according to the size of their herd. Profitability for a proposal system, under different price scenarios, was assessed by means of traditional indicators: Net Present Value (VAN), Internal Rate of Return (TIR) and Net Present Value Index (IVAN). The average value of the sheep herd was estimated from 0.26 to $ 1.45 millions and the average value of land from 6.3 to $ 12.8 millions, depending on the size of the farm (hectares). For the normal price scenario, the VAN (10.8%) was estimated at $ 4.12 millions, the TIR at 14.5% and the IVAN at 0.37. The main conclusion suggests that undertaking associative micro-scale enterprise can contribute to improve the life conditions of the small holding, in a better way than the average individual business.
small holding; profitability; sheep herd; farm
