Tackling the future challenges of Organic Animal Husbandry - vTI

RAHMANN G & GODINHO D (Ed.) (2012): Tackling the Future Challenges of Organic Animal Husbandry.
Proceedings of the 2 nd OAHC, Hamburg/Trenthorst, Germany, Sep 12-14, 2012
In the analysis of administrative indices, the Gross Revenue (sale of animals), the COE, depreciation,
and Total Operating Cost (TOC) were estimated at R$ 1,610,217.85; R$ 601,767.34, R$
258,747.30 and R$ 860,514.64 respectively. That is, the organic system of the Pantanal had a Net
Margin of R$ 749,703.21 in 2011.
However, when considering the entire invested capital (purchase of land, pasture establishment,
improvements and animals) it was found the amount of R$ 19,857,251.87. Thus, it is possible to
calculate the Opportunity Cost of Capital (COC), which represents 6% of total invested capital (i.e.,
income that would be obtained if the invested capital were applied in savings), which in the case
was of R$ 1,414,297.43. Adding the TOC and COC result in a Total Cost (TC) of R$ 2,274,812.07.
Finally, the Net Revenue found (difference between gross revenue and TC) was R$ - 664,594.22.
The effective operating profitability of beef cattle was R$ 65.17 per hectare of pasture per year.
While the total operating profitability, which includes the cost of depreciation (TOC) was R$
45.57/ha of pasture per year.
Discussion
The results of the study for the beef cattle organic system in the Pantanal region reveals that livestock
revenue can cover the TOC and COE, is enough to cover the depreciation, but insufficient to
cover the capital invested (IC) . This fact indicates that the activity is a sustainable and profitable
investment in the short and medium term, but not at long term, as the producer cannot remunerate
its invested capital. This was also been verified by Uematsu & Mishra (2012), who evaluated financially
organic agricultural production systems and found no economic advantage to producers, what
can be a barrier so that more producers invest in organic certification of their systems production.
Therefore the absorption of technologies, especially those that positively impact the reproductive
rates of the breeding herd in the Pantanal is essential for the maintenance of the producer in activity
in the long term. In addition to a policy of differentiated tax incentive for the producer of the Pantanal
that to compromise to produce in a sustainable manner and contribute effectively to the conservation
of this biome.
Suggestions to tackle the future challenges of organic animal husbandry
The importance of cultural constructions of "farmer conservationist" through good animal husbandry
practices is great in Brazil, because in Brazil it is a new fact. Generally society does not
know the work done by farmers. There is a need, through changes in concepts, enhance the human
capital of the agricultural sector, and provide economic support to the studies of farmers in agrienvironment
schemes. One way to valorize this situation is to strengthen, by means of economic
support, the ranchers that became organic, and study all the cultural, productive, economic and environmental
conversion process.
Although certified ranchers with organic systems increased their revenue, also incur greater labor
and expense as well. In particular, certified organic producers spend significantly more on marketing
expenses, compared to conventional farmers. The results suggest that the lack of economic
incentives can be an important barrier to conversion to organic farming.
References
Abreu U G P; Mcmanus C; Santos S A (2010): Cattle ranching, conservation and transhumance in the
Brazilian Pantantal. Pastoralism - Research, Policy and Practice 1, 99-114.
Carvalho T B de; Zen S de & Ferreira P C (2008): Caracterização da atividade pecuária de engorda nos
principais países produtores de carne bovina. In: Reunião da Sociedade Brasileira de Economia,
Administração e Sociologia Rural, 46. 2008. Rio Branco. Anais...2008.
Euclides Filho K (2004): Supply chain approach to sustainable beef production from a Brazilian perspective.
Livestock Production Science 90, 53-61.
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