Costs and economic viability of production of the lambari tetra in Monte Castelo, São Paulo State: a case study

Abstract

The aim of this study was to analyze the cost of production and economic viability of production of lambari in Monte Castelo/SP, with the primary market, that of live-bait for sport fishing of carnivorous fish. To calculate the operating cost structure, the model proposed by the Instituto de Economia Agrí­­cola from São Paulo/Brazil was used. In analyzing the economic viability of investment, it was determined the Internal Rate of Return (IRR) and Pay Back Period. It was noted that the inputs represented approximately 74.0% of the EOC (Effective Operating Cost). In the rentability analysis (short term), there was an operating profit of R$ 3,133.45 for a cycle, with a profitability of 18.65% for four months of production, by a cost price of R$ 13.02 kg^-1. For viability of the activity (long term), the results were attractive to recovery capital from the 3^rd year (Pay Back), with an IRR of 25.68% and 89.0% return on the producer in 5 years (BCR - benefit cost ratio). The study of costs and economic viability analysis reinforce the importance of rational management in the productive system and the importance of planning and managing the profitability of the activity.