DOI QR코드

DOI QR Code

Lamb Production Costs: Analyses of Composition and Elasticities Analysis of Lamb Production Costs

  • Raineri, C. (Department of Animal Nutrition and Animal Production, School of Veterinary Medicine and Animal Science, University of Sao Paulo) ;
  • Stivari, T.S.S. (Department of Animal Nutrition and Animal Production, School of Veterinary Medicine and Animal Science, University of Sao Paulo) ;
  • Gameiro, A.H. (Department of Animal Nutrition and Animal Production, School of Veterinary Medicine and Animal Science, University of Sao Paulo)
  • Received : 2014.08.01
  • Accepted : 2014.09.30
  • Published : 2015.08.01

Abstract

Since lamb is a commodity, producers cannot control the price of the product they sell. Therefore, managing production costs is a necessity. We explored the study of elasticities as a tool for basing decision-making in sheep production, and aimed at investigating the composition and elasticities of lamb production costs, and their influence on the performance of the activity. A representative sheep production farm, designed in a panel meeting, was the base for calculation of lamb production cost. We then performed studies of: i) costs composition, and ii) cost elasticities for prices of inputs and for zootechnical indicators. Variable costs represented 64.15% of total cost, while 21.66% were represented by operational fixed costs, and 14.19% by the income of the factors. As for elasticities to input prices, the opportunity cost of land was the item to which production cost was more sensitive: a 1% increase in its price would cause a 0.2666% increase in lamb cost. Meanwhile, the impact of increasing any technical indicator was significantly higher than the impact of rising input prices. A 1% increase in weight at slaughter, for example, would reduce total cost in 0.91%. The greatest obstacle to economic viability of sheep production under the observed conditions is low technical efficiency. Increased production costs are more related to deficient zootechnical indexes than to high expenses.

Keywords

Economic Analysis;Elasticity;Lamb;Production Cost;Production System;Technical Indicator

References

  1. Almeida, M. H. S. P. 2010. Economic and Environmental analysis on intensifying beef cattle production in the Brazilian centerwest. Thesis, University of Sao Paulo, Piracicaba, SP, Brazil. http://www.teses.usp.br/teses/disponiveis/11/11132/tde-25052010-085107/pt-br.php Accessed September 26, 2013.
  2. Barros, C. S. 2008. Economic analysis of lamb production systems. Master's Dissertation, Federal University of Parana, Curitiba, Parana, Brazil. http://dspace.c3sl.ufpr.br/dspace/bitstream/handle/1884/14393/Carina_Barros.pdf;jsessionid=D8E1BC288A84BDEDB78D662B8CC1FF99?sequence=1 Accessed September 26, 2013.
  3. CONAB (Companhia Nacional de Abastecimento). 2010. Production costs in agriculture: the method used by Conab. Conab, Brasilia, Distrito Federal.
  4. Costa, A. D. 2007. Technological level, profitability and supply chain of sheep and goat productions in Ceara state. PhD Thesis, Federal University of Ceara, Fortaleza, Ceara, Brazil. http://www.teses.ufc.br/tde_busca/arquivo.php?codArquivo=2202 Accessed September 26, 2013.
  5. Ferreira Filho, J. B. S., L. R. A. Alves, and P. M. Villar. 2009. Study of competitiveness of cotton production in Brazil and USA - crop of 2003/04. Rev. Econ. Sociol. Rural 47:59-88. https://doi.org/10.1590/S0103-20032009000100003
  6. Galal, E. S. E., H. R. M. Metawib, A. M. Aboul-Nagab, and A. I. Abdel-Aziz. 1996. Performance of and factors affecting the small-holder sheep production system in Egypt. Small Rumin. Res. 19:97-102. https://doi.org/10.1016/0921-4488(95)00750-4
  7. Heaton, R. J., P. F. Randerson, and F. M. Slater. 1999. The economics of growing short rotation coppice in the uplands of mid-Wales and an economic comparison with sheep production. Biomass Bioenergy 17:59-71. https://doi.org/10.1016/S0961-9534(99)00025-2
  8. IBGE (Brazilian Institute of Geography and Statistics). 2007. 2006 Brazilian Agricultural Census. http://www.sidra.ibge.gov.br/bda/acervo/acervo2.asp?e=v&p=CA&z=t&o=24 Accessed September 26, 2013.
  9. IBGE (Brazilian Institute of Geography and Statistics). 2012. 2011 Municipal Livestock Survey. http://www.sidra.ibge.gov.br/bda/acervo/acervo2.asp?e=v&p=PP&z=t&o=24 Accessed September 26, 2013.
  10. Kilkenny, J. B. and J. L. Read. 1974. British sheep production economics. Livest. Prod. Sci. 1:165-178. https://doi.org/10.1016/0301-6226(74)90056-6
  11. Kumm, K. I. 2009. Profitable Swedish lamb production by economies of scale. Small Rumin. Res. 81:63-69. https://doi.org/10.1016/j.smallrumres.2008.11.006
  12. Leontief, W. 1936. Quantitative input and output relations in the economic system of the United States. Rev. Econ. Stat. 18:105-125. https://doi.org/10.2307/1927837
  13. Matsunaga, M., P. F. Bemelmans, P. E. N. de Toledo, R. D. Dulley, H. Okawa, and I. A. Pedroso. 1976. Cost calculation method utilized by IEA. Agric. Sao Paulo. 23:123-139.
  14. Milan, M. J., E. Arnalte, and G. Caja. 2003. Economic profitability and typology of Ripollesa breed sheep farms in Spain. Small Rumin. Res. 49:97-105. https://doi.org/10.1016/S0921-4488(03)00058-0
  15. Morris, S. T. 2009. Economics of sheep production. Small Rumin. Res. 86:59-62. https://doi.org/10.1016/j.smallrumres.2009.09.019
  16. Nix, J. 1988. The economics of sheep production. Br. Vet. J. 144:426-433. https://doi.org/10.1016/0007-1935(88)90083-8
  17. Niznikowski, R., E. Strzelec, and D. Popielarczyk. 2006. Economics and profitability of sheep and goat production under new support regimes and market conditions in Central and Eastern Europe. Small Rumin. Res. 62:159-165. https://doi.org/10.1016/j.smallrumres.2005.08.011
  18. Passos, C. R. M. and O. Nogami. 2003. Principios de economia. Pioneira, Sao Paulo, Sao Paulo, Brazil.
  19. Perez, J. P., J. M. Gil, and I. Sierra. 2007. Technical efficiency of meat sheep production systems in Spain. Small Rumin. Res. 69:237-241. https://doi.org/10.1016/j.smallrumres.2006.02.003
  20. Plaxico, J. S. and L. G. Tweeten. 1963. Representative farms for policy and projection research. J. Farm Econ. 45:1458-1465. https://doi.org/10.2307/1236844
  21. Raineri, C. 2012. Development of a cost calculation model and cost index for sheep production in Sao Paulo state, Brazil. PhD Thesis, University of Sao Paulo, Pirassununga, SP, Brazil. http://www.teses.usp.br/teses/disponiveis/10/10135/tde-08082013-164457/en.php Accessed September 26, 2013.
  22. Reis, R. P., A. L. Medeiros, and L. A. Monteiro. 2001. Custos de producao da atividade leiteira na regiao sul de Minas Gerais. Org. Rurais e Agroindustriais. 3:45-52.
  23. Richardson, J. W., J. L. Outlaw, G. M. Knapek, J. M. Raulston, B. K. Herbst, R. J. Fumasi, D. P. Anderson, H. L. Bryant, S. L. Klose, and P. Zimmel. 2007. Representative farms economic outlook for the December 2007 FAPRI/AFPC baseline. Agricultural and Food Policy Center, Working Paper 07-3. Texas A&M University, Texas, USA. http://purl.umn.edu/37977. Accessed September 26, 2013.
  24. Sorio, A. and L. Rasi. 2010. Sheep husbandry and clandestine slaughter: a fiscal problem or a market solution? Rev. Pol. Agric. 19:71-83.
  25. Souza, F. A. A., M. A. Lopes, and F. A. Demeu. 2008. Current scenario of Sheep Raising in the State of Sao Paulo. Rev. Ceres 55:384-388.
  26. Souza, U. R de and M. J. Braga. 2007. Diversificacao concentrica na cooperativa agropecuaria: um estudo de caso da COMIGO. Gest. Prod. 14:169-179. https://doi.org/10.1590/S0104-530X2007000100014
  27. Tzouramani, I., A. Sintori, A. Liontakis, P. Karanikolas, and G. Alexopoulos. 2011. An assessment of the economic performance of organic dairy sheep farming in Greece. Livest. Sci. 141:136-142. https://doi.org/10.1016/j.livsci.2011.05.010
  28. UNICETEX (Center for Innovation, Technology and Extension of FZEA/USP FZEA/USP). 2012a. Monthly price indicator for lamb production in Sao Paulo State. 110th ed. UNICETEX, Pirassununga, Sao Paulo, Brazil.
  29. UNICETEX (Center for Innovation, Technology and Extension of FZEA/USP FZEA/USP). 2012b. Monthly price indicator for lamb production in Sao Paulo State. 111th ed. UNICETEX, Pirassununga, Sao Paulo, Brazil.
  30. UNICETEX (Center for Innovation, Technology and Extension of FZEA/USP FZEA/USP). 2012c. Monthly price indicator for lamb production in Sao Paulo State. 113th ed. UNICETEX, Pirassununga, Sao Paulo, Brazil.
  31. UNICETEX (Center for Innovation, Technology and Extension of FZEA/USP). 2012d. Monthly price indicator for lamb production in Sao Paulo State. 114th ed. UNICETEX, Pirassununga, Sao Paulo, Brazil.
  32. Vereijken, P. 1999. Manual for Prototyping Integrated and Ecological Arable Farming Systems (I/EAFS) in Interaction with Pilot Farms. AB-DLO, Wageningen, The Netherlands.
  33. Viana, J. G. A. and V. C. P. Silveira. 2008. Custos de producao e indicadores de desempenho: Metodologia aplicada a sistemas de producao de ovinos. Custos e agronegocio on line 4:(3). http://www.custoseagronegocioonline.com.br/numero3v4/custos%20de%20producao%20ovinos.pdf Accessed September 26, 2013.