Production scale effect on the profitability of beef cattle in a pasture system in the South of Minas Gerais State

  • Andréia Alves Demeu Mestranda em Ciências Veterinárias da Universidade Federal de Lavras (UFLA). Bolsistas da CAPES. andreiademeu@hotmail.com
  • Marcos Aurélio Lopes Departamento de Medicina Veterinária da UFLA. Bolsista de produtividade do CNPq
  • Fabiano Alvim Barbosa Departamento de Zootecnia – Escola de Veterinária da Universidade Federal de Minas Gerais
  • Angelo Dias Brito Ribeiro Graduando em Zootecnia da UFLA. Bolsista de iniciação científica do CNPq
  • Francisval de Mello Carvalho Departamento de Administração e Economia da UFLA

Abstract

This research sought to evaluate the effects of production scale on the profitability of pasture-dependent, full-cycle beef cattle operations. Specifically the aim was to identify the total and effective operational cost components that exert the greatest influence on the unit cost of meat produced and estimate the break-even point. Data was collected from April 2009 to April 2010, in three production systems located in the south of Minas Gerais State, Brazil. The analysis of profitability utilized Custo Bovino Corte® software and encompassed gross margin, liquid margin, and net return (profit or loss) as indicators of economic efficiency. Production scale did influence profitability of the three operations, the one of large scale having the lowest unit costs, the best profitability and net return; the one of intermediate scale was second, and the small-scale operation was last. The variable unit costs of the latter were higher than the sales price, thus it was not possible to estimate the break-even point. The components of total cost that most influenced the cost per unit of meat produced of all three operations were, in descending order: acquisition of animals, compensation for land and for labor. As to the effective operational costs, those cost components of greatest effect were acquisition of animals and labor.

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Author Biographies

Andréia Alves Demeu, Mestranda em Ciências Veterinárias da Universidade Federal de Lavras (UFLA). Bolsistas da CAPES. andreiademeu@hotmail.com
No período em que foi efetuada a pesquisa Andréia era mestranda da Universidade Federal de Lavras. Bolsista da Capes
Marcos Aurélio Lopes, Departamento de Medicina Veterinária da UFLA. Bolsista de produtividade do CNPq
Professor do Departamento de Medicina Veterinária da Universidade Federal de Lavras
Fabiano Alvim Barbosa, Departamento de Zootecnia – Escola de Veterinária da Universidade Federal de Minas Gerais
Professor na Pós Graduação, Enquadramento Funcional: Professor Adjunto na EV-UFMG, Regime: Dedicação exclusiva
Francisval de Mello Carvalho, Departamento de Administração e Economia da UFLA
Professor do Departamento de Administração e Economia da Universidade Federal de Lavras
Published
2012-09-25
How to Cite
Demeu, Andréia Alves, Marcos Aurélio Lopes, Fabiano Alvim Barbosa, Angelo Dias Brito Ribeiro, and Francisval de Mello Carvalho. 2012. “Production Scale Effect on the Profitability of Beef Cattle in a Pasture System in the South of Minas Gerais State”. Archivos Latinoamericanos De Producción Animal 21 (2). https://ojs.alpa.uy/index.php/ojs_files/article/view/2220.
Section
Original paper