Economic viability of a crop-livestock integration system

Crop monoculture and single conventional cattle raising were designed for a rapid increase in productivity and food supply. However, some of these production systems have shown signs of saturation and negative environmental impacts. Crop-livestock integration systems have been developed as an altern...

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Bibliographic Details
Published in:Ciência rural 2021-01, Vol.51 (2)
Main Authors: Vinholis, Marcela de Mello Brandão, Souza Filho, Hildo Meirelles de, Shimata, Isabela, Oliveira, Patricia Perondi Anchão, Pedroso, André de Faria
Format: Article
Language:English
Subjects:
Agricultural economics
AGRONOMY
Beef cattle
Cash flow
Cattle
Cattle raising
Corn
Crops
Discount rates
Economics
Environmental impact
Experiments
Food production
Food supply
Infrastructure
integrated production system
Integration
Interest rates
Internal rate of return
investment analysis
Investments
Livestock
Monoculture
Monte Carlo simulation
Net present value
Operating costs
Pastures
Productivity
Soil fertility
Sustainability
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Summary:Crop monoculture and single conventional cattle raising were designed for a rapid increase in productivity and food supply. However, some of these production systems have shown signs of saturation and negative environmental impacts. Crop-livestock integration systems have been developed as an alternative that delivers increased productivity and greater environmental sustainability. This article presents an evaluation of the economic viability and the financial risk associated with an investment in crop-livestock integration with a focus on the production of beef cattle in São Carlos, SP, Brazil. Results showed that the investment is economically viable and has an Internal Rate of Return higher than that of a conventional system. Monte Carlo simulations showed that the integrated system presents lower market risks when compared to the conventional system. RESUMO: A produção agrícola em monocultivo e a pecuária convencional não integrada com culturas foram desenhadas para um aumento rápido da produtividade e da oferta de alimentos. Entretanto, alguns destes sistemas de produção têm mostrado sinais de saturação e impactos ambientais negativos. Sistemas de integração lavoura-pecuária têm sido desenvolvidos como uma alternativa que oferece aumento de produtividade e maior sustentabilidade ambiental. O presente trabalho tem por objetivo estimar a viabilidade econômica e o risco financeiro associado a um projeto de investimento em integração lavoura-pecuária com foco para a produção de animais de corte em São Carlos, SP. Os resultados mostraram que o investimento é economicamente viável e apresenta Taxa Interna de Retorno superior à de um sistema convencional. Por meio da simulação de Monte Carlo constatou-se o sistema integrado apresenta menores riscos de mercado quando comparado com o sistema convencional.
ISSN:0103-8478
1678-4596
1678-4596
DOI:10.1590/0103-8478cr20190538