DROUGHT EFFECT ON ECONOMIC SUSTAINABILITY OF SOYBEAN PRODUCTION IN THE WEST OF PARANÁ STATE, BRAZIL: A CASE STUDY OF THE 2008/2009 CROP

Abstract

Soybean is one of the most worldwide produced and exported agricultural commodities. Brazil is among the major producers and exporters of that grain, with distinction to the States of Mato Grosso, Paraná, and Rio Grande do Sul. Estimates of costs and benefits of particular agricultural activities are essential tools for short-term decision making, because they allow a glimpse of the current context and an evaluation of the economic viability of various types of agricultural activities. Due to the instability of the commodities market, in order to maximize the economic and financial performance, it is necessary to manage efficiently the farming and cattle raising business, which has as its fundamental principles to minimize costs, optimize the use of productive space, and increase productivity levels. Through information obtained from local institutions, during the 2008/2009 crop, costs and benefits of the soybean production were estimated in the city of Cafelândia, Paraná State, Brazil, which allowed evaluating the economic viability of the no-tillage system for conventional and transgenic cultivars, under drought conditions. The results showed that loss of productivity could affect farmers’ income, causing even economic damages.

KEY-WORDS: Glycine max; climate variability; yield; costs; profit.