Economic and financial analysis of equine feeding systems

Abstract

The objective of this study was to evaluate the economic and financial viability of feeding systems for horses using Elephant-grass and corn silage, as food supplementation. The zootechnical and economic indicators for the characterization of the feeding systems were obtained together with a horse breeding farm of the Mangalarga Marchador breed. A 12-year horizon was projected for exploration of the activity and, based on the use of electronic spreadsheets, the cash flows were elaborated to verify the economic-financial viability. The economic indicators of profitability were used: net present value and internal rate of return, as well as the sensitivity and risk analyzes were performed in each feeding system. The systems were financially viable as they had a positive net present value at a 10% discount rate per year. The internal rate of return was 11.11% for the feeding system that adopted the supply of Elephant-grass, while for the feed system that used corn silage, the yield obtained was 11.46%. The purchase and sale prices of animals, especially embryo donor mares, were the items with the greatest influence on the results obtained for the net present value. The economic-financial risk for investment in food systems was classified as low.