Beef production systems with Hereford steers, on the Mediterranean sub-humid natural pasture. II. Economic analysis

Carlos Ovalle M.1, Nora Aedo M.2, Julia Avendaño R.1

An economic analysis of several steer production alternatives, presented in Part One, was made. Steers, after the weaning period, were fattened to three different live weights and ages, as follows: ex tensive (E), 420 kg and 29 months; semiextensive (S), 400 kg and 25 months, and intensive (I), 380 kg and 18 to 21 months;and during three (1, 2 and 3), two (2 and 3) and two (1 and 2) produc tive cycles, respectively. Ah the alternatives were designed for a 250 ha system and financial period of one year. For the calculation of total income, the final live weight and the average historic price for the last five years were considered. For the total cost, direct and indirect costs were determined. Annual interest rate for the land was 80/o; for fences, building, animal investment and the management expenses, it was 14%. The prices are expressed in chilean pesos of july 1982, excluding the IVA tax. Income, net income, direct cost per kg uve weight, cost/profit ratio and return on investment were calculated. The return on investment (excluding land value) was: 9.9, 9.0, and 20.7% for E1, E2, and E3; -11.5 and -8.5% for S2 and S3; and -12.9 and -24.8% for I1 and l2, respectively. The only alternative recommendable was the extensive system (E), but only for established cattlemen and not for new investors.

1 Subestación Experimental Cauquenes (INIA), Casilla 165, Cauquenes, Maule, Chile.
2 Estación Experimental La Platina (INIA), Casilla 5427, Santiago, Chile.