Development of a calculation model and production cost index for feedlot beef cattle

Abstract

The objective of this study was to develop a feedlot beef cattle calculation model and production cost analysis and, from the results obtained, devise a production cost index. A case study was conducted to understand the characteristics of the productive processes of a commercial feedlot. Then, based on the Economic Theory, cost items of the farm under analysis were identified and transferred to a spreadsheet. The survey included ten feedlot farmers from the state of São Paulo and other nine from the state of Goiás and was carried out to determine representative properties, and prices of items used were monitored. Production costs of each farm were calculated, and theoretical concepts of index numbers were used to devise the feedlot cattle production cost index. The cost allocation scheme was divided into four cost groups: variable, semi-fixed, fixed, and production remuneration factors. The developed model allowed a cost prognosis of the analyzed systems. Highest total costs for São Paulo State feedlots were R$ 9.17 kg −1 and R$ 9.08 kg −1 for average-sized and large farms, respectively, as contrasted to that of Goiás, of R$ 8.29 kg −1. Between the months April and June, the cost of production for feedlot beef cattle showed reductions of 1.48 and 1.40% for the average and large feedlots in the State of São Paulo and 9.13% for the Goiás feedlot by the Konüs Exact Index, respectively. Studies available in literature were compared and it was concluded that the model can help feedlot cattle farmers take production decisions. The Konüs Index allows for a methodological advancement in relation to other studies carried out on the Brazilian livestock industry; besides, it can contribute to the sector organization.

Economic gains from crop-livestock integration in relation to conventional systems

“…This result is in agreement with that found by Garcia et al (2012) in an economic analysis of maize grain yield associated with forages in a no-tillage system. Among the variable costs of livestock, the purchase of animals for fattening was the item with the greatest impact, as demonstrated by Sartorello et al (2018).…”

Custos de confinamento de bovinos de corte no município de Colômbia, SP

“…Na Tabela 9 observa-se os índices econômicos do sistema de terminação de bovinos em confinamento. O custo de produção foi de R$ 9,65 kg -1 , valores superiores aos maiores custos totais para os confinamentos do Estado de São Paulo, que foram de R$ 9,17 kg −1 e R$ 9,08 kg −1 para fazendas de médio e grande porte, respectivamente (Sartorello et al, 2018). As margens brutas e líquidas refletem a eficiência econômica da atividade, e determinam a rentabilidade.…”

“…No entanto, Lopes e Magalhães (2005) destacam que para o êxito da atividade exigem-se conhecimentos em administração financeira, nutrição animal, manejo nutricional, produção de volumosos, aquisição de insumos e de animais de reposição. Adicionalmente, a pressão cada vez maior para intensificação dos sistemas de produção de alimentos, aliado aos custos de insumos cada vez maiores, torna-se essencial fazer análises de índices econômicos para monitoramentos dos sistemas de produção e tomada de decisões que garantem o sucesso da atividade (Sartorello et al, 2018;Tang et al, 2017).…”

Development of a Swine Production Cost Calculation Model

“…Microsoft Excel ® software (Microsoft 365 MSO, version 2207–64 bits, Redmond, WA, USA) was the tool used to develop the calculation model, in which all costs of the full-cycle swine production activity were included. All data collected in the field were considered and allocated as proposed by the Neoclassical Economic Theory of Costs, which guided the logic of costs, as Raineri et al [ 7 ] proposed for sheep production and Sartorello et al [ 16 ] for feedlot beef cattle. Adaptations were also carried out based on the proposed cost method for agriculture, such as that of the National Supply Company (Conab) [ 6 ].…”