Abstract:
The present study evaluates the economic viability of four different models of beef cattle production in the rio Vermelho hydrographic basin. The study focuses on the traditional extensive ranching system, which was compared to three intensive systems, one based on low levels of concentrated supplementation, a second with low levels of concentrated supplementation and confinement for fattening and an intensive grazing system, with supplementation during the dry and rainy seasons. The investments were estimated for the different levels of technical specifications of each system. The net present values and internal return rate were used for the assessment of the economic viability of the project, considering the minimum rate of attractiveness, equivalent to the inflation-adjusted savings interest rate (6.17%). The continuity of the sector was evaluated based on the gross and net margins, and profitability rates, where the system is already installed. All four systems had gross and net margins and profitability consistent with their economic sustainability over both the short and long terms. However, only two systems (reduced consumption of concentrated supplements and the intensive grazing system) were economically viable as start-ups.
Key-words:
economic viability; beef cattle ranching; production costs