Identification and quantification of benchmarks of milk production systems in Minas Gerais

Matozalém Camilo Neto,Sebastião Teixeira Gomes,José Maurício De Souza Campos,André Soares De Oliveira

doi:10.1590/s1516-35982012001000020

Abstract

The objective of this study was to identify and quantify benchmarks of milk production systems. The technological profile and size, livestock and economic indicators of sixteen farms in the region of Triângulo Mineiro were analyzed. Indicators correlated with rate of return on capital (RRC) were identified and quantified in four scenarios of RRC (6, 8, 10 and 12% per year). The correlated indicators and their respective values in the four scenarios were: land (99, 90, 81 and 73 ha); relation of total cows in lactation (74, 77, 79 and 82%); lactating cows per area (0.89; 0.99; 1.11 and 1.22 cows/ha); milk production per lactating cow (12.04; 13.00; 13.96 and 14.92 liters/cow/day); milk production per total cows (9.19; 10.23; 11.27 and 12.31 liters/cow/day); labor productivity (322, 349, 375 and 402 liters/day/man); land productivity (4351, 5236, 6120 and 7004 liters/ha/year); participation of total effective operational cost of activity in the gross revenue of the activity (69, 66, 63 and 60%); participation of total operational cost of activity in the gross revenue of the activity (80, 76, 72 and 69%); participation of total cost of activity in the gross revenue of the activity (93, 88, 82 and 77%); labor cost in relation to milk gross revenue (15, 13, 11 and 9%); profitability (15, 19, 23 and 28%); and capital investment in the activity in relation to daily milk production (922, 829, 736 and 644 R$/liter-day). The productivity of the factors land and animals present more correlation with profitability than labor productivity, regardless of the production size.

Highlights

In an environment of high competition, uncertainties and gain margin reduction in which the milk producers are inserted, the effectiveness in decision-making assumes a fundamental role to the sustainability of the activity.Sustainability can be understood as the ability of long term survival (Oliveira & Pereira, 2009)
The surveys were based on the neoclassic production theory, in which the companies pursue profit maximization or cost minimization through great combination of production factors and agricultural inputs, which are bound to certain technological patterns (Ferguson, 1996)
According to the Educampo Project data center, the effective operational cost, total operational cost and total cost per liter of milk must be respectively lower than 70%, 80% and 90% of the milk price

Summary

Introduction

In an environment of high competition, uncertainties and gain margin reduction in which the milk producers are inserted, the effectiveness in decision-making assumes a fundamental role to the sustainability of the activity.Sustainability can be understood as the ability of long term survival (Oliveira & Pereira, 2009). The identification and analysis of benchmarks stand out by their security and accuracy, since the values are directly obtained from production units present in the same economic environment (Oliveira et al, 2007). In this sense, studies have been done proposing to identify the main livestock and economic indicators that influence profitability of milk production systems in Brazil (Krug, 2001; Gomes, 2005; Oliveira et al, 2007)

Objectives

Methods

Results