EFECT OF THE FEEDLOT SYSTEM ON THE PROFITABILITY OF THE DAIRY PRODUCTION SYSTEMS IN LAVRAS (MG) REGION, BRAZIL, IN 2004 AND 2005

Abstract

The profitability of the milk activity was studied in the region of Lavras, MG by analyzing the influence of the types of breeding system upon the cost production of milk. It was identified the components with major influence on the final cost of the activity and calculated the breakeven point. Monthly data from 17 production systems representing the grazing regimen, semi-feedlot and feedlot systems were used for the period of January 2004 to December 2005. It was considered the gross margin, the net (profit or loss) as indicators of economical efficiency. The type of breeding system influenced the “weights’’ of the component items of the effective operational cost ofdairy business, these being different in each of the three levels studied. In the economical analysis, the feedlot and semi-feedlot presented showing that dairy is profitable in the long-term and that farmers are positive net margin. In the grazing regimen, the conclusion is that milk farmers have conditions to produce in the middle-term. in the long-term; however, milk farmers have been losing money.
KEY-WORDS: Breakeven point, breeding system, dairy cattle, production cost, profitability analysis.