ECONOMIC/FINANCIAL MANAGEMENT IN MILK PRODUCTION ACTIVITY: ASSESSMENT OF AN INVESTMENT MADE IN A COMPOST BARN SYSTEM

• DOI: https://doi.org/10.22533/at.ed.973452403045

• Palavras-chave: Dairy production; Economic/financial assessment; Investment.

• Keywords: Dairy production; Economic/financial assessment; Investment.

• Abstract:

  The adoption of effective management practices is fundamental for the administration of rural production units, as it is a sector subject to climatic adversities and prices defined by the market. Mastery of production technologies has not been enough to maintain profitability over time, as the opening of markets and the intensification of internal and external competition require management knowledge on the part of the producer and agribusiness professionals. Dairy production in the western region of Santa Catarina is a monthly income option, enabling the producer to make essential and future investments, increasing the property's income and increasing the quality of life in the countryside. The general objective of the present study was to evaluate the economic/financial return on an investment made in a compost barn system by a milk producing unit. This was an exploratory and descriptive study with a predominantly quantitative approach, including the survey and analysis of data from the agricultural enterprise researched. The data obtained through the inventory of the property's milk production structure, considering the year 2020, indicates a total fixed investment of R$ 2,238,854.00. With a herd made up of 73 heads, the production unit had annual revenue of R$ 1,163,475.00, arising from the sale of milk, waste animals and calves for slaughter. Fixed and variable costs totaled R$ 1,060,799.88. Some general economic/financial indicators were determined and then the return on an investment of R$ 150,000.00 made using probity researched in a compost barn system was evaluated. Although the general economic/financial indicators demonstrate a long period of return on investment in the dairy activity, it can be considered that the production unit is viable, as it has the capacity to make investments, as well as maintain and expand existing assets over time, a fact that can be observed in the payback obtained for the investment in the compost barn system. However, it is necessary to achieve the expected improvements in the technical and production indicators expected from the investment made in the new production system. To this end, economic/financial control of the production unit must be maintained to better support decisions that impact the future of the dairy activity and the production unit itself.