Profitability and risk in the production of swine for slaughter in the system by full cycle: An application of monte carlo simulation for states of the south region of Brazil

Abstract

This research had as objective to examine the profitability and risk of the production of swine for slaughter in the system by Full Cycle in the main producing region of the country. For this, secondary data were used for the three states of the southern region of Brazil, Paraná, Santa Catarina and Rio Grande do Sul, of the variables: price paid to the producer and fixed cost and variable cost. The Monte Carlo simulation was used to obtain the results. The main results show that swine farmers in the three states adopting the Full Cycle system show low levels of profitability and considerable risk of negative results. The swine farmers of Paraná presented the best situation, with a higher level of profitability than the producers of Santa Catarina and Rio Grande do Sul.