COST AND PROFITABILITY OF SWEET POTATO PRODUCTION IN THE IRRIGATED PERIMETER OF ITABAIANA, SERGIPE, BRAZIL

Abstract

In a modern agricultural activity, it is necessary to know the total operational cost, which reflects the overall production cost, besides the relative component participation on the effective operational cost, which reflects the variable costs or expenses effectively accomplished as overhead costs. The objective of the study was to evaluate the profitability of the irrigated sweet potato cv. Brazlândia, by estimation of production costs and profitability, focusing on subsidies for the organization of local farmers. The study was accomplished in the Jacarecica and Poção da Ribeira irrigated perimeters, in the municipality of Itabaiana, Sergipe State, Brazil. Fixed and variable costs, net profit, and rate of return were calculated, during one growing season. The results indicate the need for spending R$ 11,186.25, with the total operational cost reaching R$ 13,824.55. The gross revenue was equal to R$ 26,136.00, resulting in a net margin of R$ 12,331.45 and a rate of return equivalent to 89%, indicating that sweet potato is a feasible alternative for irrigated agriculture in that region.

KEY-WORDS: Ipomoea batatas; economic feasibility; gross revenue; net margin; irrigation.