Economic results of rearing and fattening beef heifers: a case study in Curvelo - MG in the years 2008 and 2009

The objective of this research was to analyze the profitability of a beef heifer production system, in the growing and fattening phases, under a grazing system. Specific aims were to evaluate the effect of year on profitability, identify the components of total cost and effective operational cost that exercised the greatest influence on the cost per arroba produced, and to estimate the breakeven point. Data were collected between January 2008 and December 2009 from an operation located in the municipality of Curvelo-MG. The profitability analysis used the Custo Bovino Corte® software, considering the gross and liquid margins and the result (profit or loss) as indicators of economic efficiency. In both years studied, the gross and liquid margins and results were all negative, indicating that the activity did not have conditions to enable survival over the short, medium or long term. The variable cost per arroba exceeded the selling price, thus, it was not possible to estimate the breakeven point. The most representative components of the total cost in both years were, in decreasing order, animal acquisition, feeding, compensation for the land and labor; those of effective operational cost were animal acquisition, feeding and labor