Financial viability for milk production of Dutch and Jersey breeds: An analysis through Monte Carlo simulation and Sensitivity Analysis

Due to the favorable characteristics such as climate and topography, the Agribusiness represents much of the generation of wealth in Brazil. Considering this importance, the objective of this research was to identify how many cows of the Dutch and Jersey breeds are required for a small milk producer get profit with its production of Brazilian. For this, the cash flows and the NPV were calculated. The NPV was calculated under deterministic and probabilistic aspects, performing a Monte Carlo simulation and afterwards a Sensitivity Analysis, illustrating the variable parameters that more influenc... Mehr ...

Verfasser: Gonçalves Suchla, Evelin
Catapan, Anderson
Catapan, Edilson Antonio
Klüppel Smijtink, Rafael
Dokumenttyp: Artikel
Erscheinungsdatum: 2016
Verlag/Hrsg.: PUCPRESS
Schlagwörter: Milk Production / Cows / Investment Analysis / Monte Carlo / Sensitivity Analysis
Sprache: Englisch
Permalink: https://search.fid-benelux.de/Record/base-26650260
Datenquelle: BASE; Originalkatalog
Powered By: BASE
Link(s) : https://periodicos.pucpr.br/index.php/REBRAE/article/view/14207

Due to the favorable characteristics such as climate and topography, the Agribusiness represents much of the generation of wealth in Brazil. Considering this importance, the objective of this research was to identify how many cows of the Dutch and Jersey breeds are required for a small milk producer get profit with its production of Brazilian. For this, the cash flows and the NPV were calculated. The NPV was calculated under deterministic and probabilistic aspects, performing a Monte Carlo simulation and afterwards a Sensitivity Analysis, illustrating the variable parameters that more influence in the outcome of the NPV. It was noticed that the selling price of a liter of milk and the amount of liters of milk produced per cow are the parameters which most affect the NPV. The results showed that there is a need for at least 33 cows of Dutch breed or 43 cows of Jersey breed for the project to generate wealth to the producer