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Revista de la Facultad de Ciencias Agrarias. Universidad Nacional de Cuyo
On-line version ISSN 1853-8665
Abstract
GRUNWALDT, Eduardo Guillermo and GUEVARA, Juan Carlos. Profitability of finishing beef cattle in feedlots in Mendoza province, Argentina. Rev. Fac. Cienc. Agrar., Univ. Nac. Cuyo [online]. 2011, vol.43, n.2, pp.21-34. ISSN 1853-8665.
Feedlot profitability was determined under different production and economic scenarios for cattle prices in 2009 and 2010. The basic data came from surveys in feedlots, interviews with key informants and bibliographical consult. Internal rate of return and net present value were estimated considering 12% as annual capital opportunity cost. Total capital varied in relation to total purchase or partial production of food. The incomes from 3,000 animals year-1 increased by 50% in the year 2010 compared to 2009. In the year 2009, without compensations, there was no profitability when the foods for cattle were purchased. With 5, 10 and 15% increases in investments and operating costs, profitability was attained with 4,466, 6,214 and 9,670 animals year-1, respectively, when the foods were purchased, and with 2,110, 2,430 and 2,880 animals year-1, respectively, when the foods were produced. Cattle prices for 2010 compared to those of 2009 increased profitability without compensations using either purchased or produced food. For reaching profitability in year 2010, a total of 2,300 and 1,500 animals year-1 were necessary when the foods were purchased or produced, respectively. The hypothesis that profitability depends on production scale associated with the considered scenarios was verified.
Keywords : Feedlot; Beef cattle; Economic feasibility; Internal rate of return; Net present value.