ECONOMIC ANALYSIS OF SUGAR CANE PRODUCTION BY SMALL GROWERS CONSIDERING OUTSOURCING OF AGRICULTURAL OPERATIONS: A ONE FARMER CASE STUDY

Authors

  • Flávio Hiroshi Kaneko UNESP/FEIS
  • Maria Aparecida Anselmo Tarsitano UNESP/FEIS
  • Rosalina Maria Alves Rapassi UNESP/FEIS
  • Carlos Alessandro Chioderoli UNESP/FEIS
  • Fernando Takayuki Nakayama APTA-Regional

Keywords:

Costs, analysis investment, Sacharum spp, outsourcing operations

Abstract

Farmers are switching to sugar cane production, increasing the importance of the economical analysis of the activity. The objective of the study was to examine the economic feasibility of sugar cane production for ethanol and sugar industry by growers that outsource mechanized operations in western São Paulo State, Brazil, Rural Development Office of General Salgado. The data were obtained from a farmer, in an area of 24 hectares cultivated with sugar cane, in the municipality of Sud Mennucci, São Paulo State, Brazil. It was calculated the setting up total operational cost (TOC) of the crop and 5 cuts. It was also proceeded a cash flow analysis to analyse the investment in the activity. The economic data were not favorable. The payback (return) of the investment occurred after the 5th cut. The Net Present Value (NPV) was negative (R$ -278.48). The Internal Rate of Return (IRR) was 2.54%. This condition is not feasible in sugar cane production for industry by farmers who outsourced agricultural operations.

KEY-WORDS: Costs; analysis investment; Sacharum spp; outsourcing operations.

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Author Biographies

Flávio Hiroshi Kaneko, UNESP/FEIS

Departamento de fitotecnia, sócio economia e tecnologia de alimentos.

Maria Aparecida Anselmo Tarsitano, UNESP/FEIS

Departamento de fitotecnia, sócio economia e tecnologia de alimentos.

Rosalina Maria Alves Rapassi, UNESP/FEIS

Departamento de fitotecnia, sócio economia e tecnologia de alimentos.

Carlos Alessandro Chioderoli, UNESP/FEIS

 

Departamento de fitotecnia, sócio economia e tecnologia de alimentos.

 

 

Fernando Takayuki Nakayama, APTA-Regional

Departamento de fitotecnia e recursos vegetais.

Published

2009-09-29

How to Cite

KANEKO, F. H.; TARSITANO, M. A. A.; RAPASSI, R. M. A.; CHIODEROLI, C. A.; NAKAYAMA, F. T. ECONOMIC ANALYSIS OF SUGAR CANE PRODUCTION BY SMALL GROWERS CONSIDERING OUTSOURCING OF AGRICULTURAL OPERATIONS: A ONE FARMER CASE STUDY. Pesquisa Agropecuária Tropical [Agricultural Research in the Tropics], Goiânia, v. 39, n. 3, p. 266–270, 2009. Disponível em: https://revistas.ufg.br/pat/article/view/6017. Acesso em: 22 dec. 2024.

Issue

Section

Research Article