Economic viability of a cattle system production under high stocking rate: use in research and commercial livestock

Abstract

A feasibility study was carried out to verify the economic viability of a production system life-cycle livestock production of beef cattle under high stocking. This was designed for use in research in the Faculty of Veterinary Medicine, University of São Paulo. Therefore, was used nine scenarios - determined from the variation of prices of products sold and use of capital and resources in rural finance programs (BNDES). Was used also a scenario – considering the leasing of the area released from the intensification of production systems. The analysis method used was Cash Flow and the applied techniques were: Simple Payback, Discounted Payback, Net Present Value (NPV) and Internal Rate of Return (IRR). The system showed to be economically viable for the scenarios that considered the maximum projection of weight meat of prices and to scenario considered that was leasing from the intensification of production systems. The use of funding via the Rural Credit Program BNDES has provided significant improvement in the values and indices used in the analysis.