Comparative Analysis of Profitability between Two Beef Cattle Breeding Systems in the Casanare Foothills

Abstract

This paper is an economic analysis of the implementation of a silvopastoral system associated with fixed-time artificial insemination and early weaning, compared to a traditional beef cattle breeding system. The cash flows of each system were elaborated for this purpose, and three profitability indicators were calculated and evaluated: the net present value (NPV), internal rate of return (IRR) and the profitability index (PI). Results conclude that the breeding system with integrated management is economically more attractive than the traditional breeding system, with a NPV of $1,300,096,365, calculated with an opportunity rate of 3.77%, compared to an updated net value of $24,336,879 for the traditional breeding system. Likewise, the IRR of the breeding system that uses the suggested technologies surpasses the traditional production method, with results of 9.39% and 4.22%, respectively. As far as the profitability index is concerned, it was determined that the production system associated to silvopastoral systems, fixed-time artificial insemination and early weaning is more profitable than the traditional system, as the analysis shows avalue of 2.25 for the former, and 1.09 for the latter. The adoption of the technologies suggested should be stimulated due to the different benefits it offers