Financial feasibility for the establishment of a fattening-buffalo grazing production system

 

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Bibliografische gegevens
Auteurs: Díaz Gutiérrez, Carlos, WingChing-Jones, Rodolfo, Rosales Rodríguez, Rodrigo
Formaat: artículo original
Status:Versión publicada
Publicatiedatum:2008
Omschrijving:Technical, financial feasibility, andriskanalysis for a fattening buffalo grazing production system establishment, were evaluated. The project initiated with 10 buffaloes at 250 kg initial body-weight; after 12 months the animals’ body weight was 500 kg. Financial analysis was done using the capital budget methodology, which considers nominal cash flows, and the financial profitability indicators: internal rate of return (IRR), net present value (NPV), cost/benefit ratio (C/B), and investment recovery period (IRP). The sensibility analysis was carried out with the Hertz technique or multidimensional analysis; therefore,  operating cost per animal, daily weight gain, final weight, and animals produced per year were  used to get the IRR and NPV. On the other hand, daily weight gain, purchase and sale animal prices, and capital cost were used to determine the economic risk, through a Monte Carlo simulation technique also known as Statistics Test Methodology. As a result of the analyses, the IRR, NPV, and recovery  period were 10.9%, -¢356.556, and 8.4 years, respectively. These results make the exploitation non-viable, due to a lack of profitability and the poor cash generated. Besides, it was determined that daily weight gain per animal is the variable that influences the most the probability of gaining a positive NPV.
Land:Portal de Revistas UCR
Instelling:Universidad de Costa Rica
Repositorio:Portal de Revistas UCR
Taal:Español
OAI Identifier:oai:portal.ucr.ac.cr:article/6719
Online toegang:https://revistas.ucr.ac.cr/index.php/agrocost/article/view/6719
Keyword:búfalos
rentabilidad
factibilidad
relación costo/beneficio
TIR
VAN
pastoreo
Buffaloes
profitability
feasibility
cost/benefit ratio
IRR
NPV
grazing