Brazilian cattle farming is mainly characterized by what is considered to be extensive production systems. These systems or models, are based on the exploitation of activities in large geographical areas with little use of the so called modern or advanced production technologies. The use of new technologies, improvements on the animals response potential and the need for a rational exploitation of production resources, have lead to the emergence of more specialized systems. These, when considered, can systematically constitute a sustainable alternative to the livestock traditional activity. A feasibility study was undertaken in order to access the economic viability of a production system life-cycle livestock production off beef cattle under high stocking. The study was designed for research use in the Faculty of Veterinary Medicine in São Paulo, Brazil (FMVZ/USP) and, based on price variation of the products sold and on the use of capital and other resources in rural finance programmes (BNDES), nine scenarios were used. Worth mentioning that in one of the scenarios it was also considered the leasing of the area released from the instensification of the production systems. These analyses were based on Cash Flow and on different criteria suc as Simple Payback, Discounted Payback, Net Present Vale and Internal Rate of Return.
Source: https://www.scielo.br/pdf/rbspa/v13n1/a22v31n1.pdf