Profitability analysis of the finishing of beef cattle in feedlot: a case study in 2009, in the western region of Minas Gerais, Brazil

Economic analysis of feedlots is important to provide the producer with knowledge of the details needed for intelligent and economical use of the factors of production. However, many farms are still managed empirically, without knowing production costs, which is key information to support decision-making. This study aimed to analyze the profitability of finishing beef cattle feedlot, to estimate production costs, to identify the components that represent the greatest proportions of the total and the effective operational costs per unit of meat produced, and to identify the breakeven point. Data were collected monthly from January to December 2009, from a production system in the western region of Minas Gerais State. An inventory of the system was performed and expenditures and income were recorded. Gross margin, net margin, outcome, and profitability 1 and 2 were the indicators of economic efficiency used. The data were analyzed using descriptive statistics and grouped in tables in MS Excel®. The breakeven point had to be estimated by scenario since the unit variable cost was higher than the unit sale price. The production system analyzed was not found to be economically viable, indicating it would be unable to survive in the medium and long term, with diminishing capitalization of the beef producer. Items included in the effective operational and total cost of greatest importance were, in decreasing order, purchase of animals, feed, and labor. In conclusion, profitability analysis is an indispensable management tool for evaluating the operational and economic viability of the production system and provides accurate information necessary for decision-making.