Balance point accounting in dairy cattle of buffalos: a case study of the economic and financial viability of a property of the State of Mato Grosso do Sul

Abstract

Through a qualitative approach, based on exploratory and bibliographic research field was carried out on a farm located in the municipality of Bandeirantes, the state of Mato Grosso do Sul – MS producing buffalos for milk production. The analyzes carried out through interviews and collected data allowed confer economic evaluation of the characteristics of the property, with the revenues, costs and expenses from this segment in 2015, which until then the property did not have. We identified the production costs, the average cost of milk, and balance point of a property that works specifically with buffalos, with a total of 98 arrays of races Murrah and Mediterranean. The results highlighted the production required in liters of buffalo milk to reach the breakeven point. Requiring the production of 130.682 liters of milk per year at historical cost and 92.635 liters of milk/ year at fair value. Per month, 10.890 liters at historical cost and 7.719 liters at fair value. For animal/cow 3,65 liters at historical cost, and 2,59 liters at fair value. The values of cost per liter of milk were R$ 1.67 considering measured at historical cost and R$ 1.45 considering the fair value method. Thus the results by both methods showed attractive profit rates, higher profitability and financial assets in the financial market, and 15,12% at historical cost and 26,43% at fair value, and this presented the best hurdle rate. With the measurement presented the manager has a real sense of what happens in the company, including being aid factor future management, confirming the viability of the activity.