Economic Profitability of the Dairy Activity of Demonstration Units of the Balde Lleno Program, in Rio de Janeiro, Brazil

Abstract

<p>This research aimed to analyze the profitability of 20 demonstration units (DUs) participating in the Balde Lleno program (“Balde Cheio”), in Rio de Janeiro, between January and December 2011. It also sought to identify components with the greatest influence on total and effective operational costs, in addition to their impact on revenues. Data were analyzed with the PASW 18.0 software. The multiple linear regression model was used with the stepwise method to identify production cost components that had the greatest influence on the liquid margin, lucrativeness, and profitability. Regarding the indicators of gross and liquid margin, as well as the result of dairy activity, the economic analysis examined conditions to produce in the short and medium term, but not in the long run, due to a negative result, which would lead to the decapitalization of the producer. The component items of effective operational cost that had greater representativeness on the cost of dairy activity were, in decreasing order, food, labor, and various expenses; in terms of total cost, in decreasing order, the components were food, labor, and the remuneration of the capital invested</p>