Economic feasibility of a cattle range/forestry system in the forest zone area in Minas Gerais

Abstract

Knowledge about the economic viability of cattle range/forestry systems is fundamental to encourage their implementation. The aim of the present study was to evaluate the economic viability of a semi-intensive agroforest system (SSP) in the municipality of Visconde do Rio Branco, MG and to identify the main costs that affect the viability of the SSP. The study was conducted on a rural property in southeastern Brazil. The tree component of the SSP was a hybrid of Eucalyptus grandis x Eucalyptus urophylla. The SSP evaluated wood sold for firewood (33.60%) and sawmill (66.40%) in the final year; in addition to the sale of milk over the years. The economic analysis was performed based on the parameters Net Present Value (NPV), Cost Benefit Ratio (B / C), Equivalent Periodic Value (EVP) and Internal Rate of Return (IRR). The economic viability of the risk analysis was performed with the aid of @RISK software, by means of THE Monte Carlo simulation, with input data variations of -10 and 10% for the VPE economic indicator. The SSP was economically viable, impacted by revenues from the sale of sawmill in the final year and the sale of animals. It is concluded that the costs with services are the main ones of this agroforest system and that the SSP with the wood destined for sawmill and firewood is economically viable.