Economic analysis of finishing feedlot steers fed different proportions of sugar cane and concentrated

Abstract

The objective of this study was to evaluate the economic viability of feedlot finishing of crossbred zebu, fed diets with 40, 60 or 80% concentrate (dry matter basis), by financial indicators. A total of 30 animals with age and initial weight average of 26 months and 348 ± 32 kg, respectively, fed for 90 days and slaughtered at an average weight of 449 ± 40 kg. The experimental design was completely randomized with three treatments and ten replicates, proceeding to the regression analysis. There was a linear increase in the total cost per animal with increasing concentrate level, arising from differences in some items of variable cost, being the cost with forage feed reduced and feed concentrate, other and opportunities on invested capital increased with increase in the level of dietary concentrate. As for financial indicators, the concentrate levels of 40, 60 and 80% had similar (P> 0.05), being the average estimates of R$ -119.77 to gross margin, R$ -129.63 to net margin, from R$ -162.14 to profit, R$ -144.01 to net present value, rate of 0.8994 for the benefit:cost and -10.06% for additional return on investment. The estimates were -3.84% for the internal rate of return, rate of 0.1370 to minimum rate of attractiveness: internal rate of return and discounted payback of 5.58 months. The financial indicators showed economic infeasibility of feedlot finishing, a lower return and higher risk with increased as the level of concentrate. There was agreement between the values of the indicators used, showing its relevance in decision making.

Keywords

• Investment analysis; Economic efficiency; Nellore; Investment projects; Decision-making