PSXI-21 Program Chair Poster Pick: Performance indicators of animal production and prices over the cost of feedlot beef cattle

Abstract

Abstract The aim of this study was to analyze the influence of the zootechnical performance indicators and the price main cost items on the total production cost of feedlot beef cattle. We used a mathematical model of the production cost, which considered the cost of the items according to the Economic Theory. Costs were allocated into: i) variable costs, ii) fixed costs, and iii) factor income. A survey was carried out in 2015, with ten farmers in the state of São Paulo, to define the technical indicators of production. The representative property was defined with 27 thousand animals slaughtered per year. The spot prices used in our analysis were collected in December 2019. Elasticity was calculated and expressed as a relationship between two interrelated functional variables. We estimated elasticities for the variables: animals purchase of 355 kg ($1.78/kg), feed price ($0.17/kg of dry matter), interest rate (4.5%), average daily gains (1.616 kg), and carcass yield (55.46%). This way we compared the variation of total cost per carcass kilo caused by increases of 1% in each of the considered variables. In the base scenario, production cost was US$ 3.11/kg and the variable cost of the activity represented 94.9% of the total costs, which of purchase animals, feed and variable taxes were 69.5%, and 20.6% and 3.8%, respectively. Increases of 1% in each of those variables caused variations of, respectively, +0,71%, +0,21%, 0,01%, -0,98%, and -0,98% on production cost unit. In conclusion, the purchase price of animals for feedlot activity is interrelated to the total cost. The average daily gains and carcass yield is also a zootechnical performance that presented a direct relation with the reduction of total costs. Thus, this demonstrates that farmers should improve management practices in the purchase of inputs and the performance of animal production.