Economic viability analysis of mechanization in broiler chicken harvesting
ABSTRACT This study aimed to analyze the economic viability of the implementation of a mechanized harvesting of broilers where the activity is carried out entirely manually. The viability indicators used were net present value (NPV), net future value (NFV), net uniform value (NUV), discounted paybac...
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| Format: | Article |
| Language: | English |
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Sociedade Brasileira de Zootecnia
2024-04-01
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| Series: | Revista Brasileira de Zootecnia |
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| Online Access: | http://www.scielo.br/scielo.php?script=sci_arttext&pid=S1516-35982024000100202&lng=en&tlng=en |
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| author | Fábio Mascarenhas Dutra Rodrigo Garófallo Garcia Rafael Martins Noriller Erlaine Binotto Maria Fernanda de Castro Burbarelli Claudia Marie Komiyama Fabiana Ribeiro Caldara Jean Kaique Valentim |
| author_facet | Fábio Mascarenhas Dutra Rodrigo Garófallo Garcia Rafael Martins Noriller Erlaine Binotto Maria Fernanda de Castro Burbarelli Claudia Marie Komiyama Fabiana Ribeiro Caldara Jean Kaique Valentim |
| author_sort | Fábio Mascarenhas Dutra |
| collection | DOAJ |
| description | ABSTRACT This study aimed to analyze the economic viability of the implementation of a mechanized harvesting of broilers where the activity is carried out entirely manually. The viability indicators used were net present value (NPV), net future value (NFV), net uniform value (NUV), discounted payback (DP), and internal rate of return (IRR). Scenario analysis, sensitivity, and Monte Carlo simulation were performed in the present study. The results showed that the initial investment was US$ 1,868,302.76. The average price paid by the slaughterhouse to third-party manual harvesting companies was US$ 18.17 per thousand broilers, which was converted into revenue in the cash flow of the project. The cash flow result was positive at US$ 22,256.14 over the entire study period considering a daily catch of 144 thousand broilers. The results of the economic viability analysis were NPV of US$ 64,786.23, NFV of US$ 333,382.11, NUV of US$ 735.19, DP of 13.82 years, IRR of 0.965 monthly, and modified IRR of 0.933 monthly. These values prove the economic viability of implementing the project considering the market conditions at the time of the study. The analysis of scenarios showed great sensitivity to the exchange rate and the price of fuels. The Monte Carlo simulation highlighted a moderate risk of negative NPV, emphasizing the importance of considering this variable when making decisions. Despite these challenges, the potential benefits of mechanized harvesting, such as increased efficiency and reduced labor costs, make it a promising alternative to manual harvesting, even for small to medium-sized poultry industries. |
| first_indexed | 2024-04-24T11:51:01Z |
| format | Article |
| id | doaj.art-3d13855594404b7191d0239807c2a036 |
| institution | Directory Open Access Journal |
| issn | 1806-9290 |
| language | English |
| last_indexed | 2024-04-24T11:51:01Z |
| publishDate | 2024-04-01 |
| publisher | Sociedade Brasileira de Zootecnia |
| record_format | Article |
| series | Revista Brasileira de Zootecnia |
| spelling | doaj.art-3d13855594404b7191d0239807c2a0362024-04-09T07:47:11ZengSociedade Brasileira de ZootecniaRevista Brasileira de Zootecnia1806-92902024-04-015310.37496/rbz5320230043Economic viability analysis of mechanization in broiler chicken harvestingFábio Mascarenhas Dutrahttps://orcid.org/0000-0002-8707-4453Rodrigo Garófallo Garciahttps://orcid.org/0000-0002-4978-9386Rafael Martins Norillerhttps://orcid.org/0000-0001-9981-4669Erlaine Binottohttps://orcid.org/0000-0002-0349-4566Maria Fernanda de Castro Burbarellihttps://orcid.org/0000-0002-8079-2890Claudia Marie Komiyamahttps://orcid.org/0000-0001-8732-5745Fabiana Ribeiro Caldarahttps://orcid.org/0000-0002-7564-6127Jean Kaique Valentimhttps://orcid.org/0000-0001-8547-4149ABSTRACT This study aimed to analyze the economic viability of the implementation of a mechanized harvesting of broilers where the activity is carried out entirely manually. The viability indicators used were net present value (NPV), net future value (NFV), net uniform value (NUV), discounted payback (DP), and internal rate of return (IRR). Scenario analysis, sensitivity, and Monte Carlo simulation were performed in the present study. The results showed that the initial investment was US$ 1,868,302.76. The average price paid by the slaughterhouse to third-party manual harvesting companies was US$ 18.17 per thousand broilers, which was converted into revenue in the cash flow of the project. The cash flow result was positive at US$ 22,256.14 over the entire study period considering a daily catch of 144 thousand broilers. The results of the economic viability analysis were NPV of US$ 64,786.23, NFV of US$ 333,382.11, NUV of US$ 735.19, DP of 13.82 years, IRR of 0.965 monthly, and modified IRR of 0.933 monthly. These values prove the economic viability of implementing the project considering the market conditions at the time of the study. The analysis of scenarios showed great sensitivity to the exchange rate and the price of fuels. The Monte Carlo simulation highlighted a moderate risk of negative NPV, emphasizing the importance of considering this variable when making decisions. Despite these challenges, the potential benefits of mechanized harvesting, such as increased efficiency and reduced labor costs, make it a promising alternative to manual harvesting, even for small to medium-sized poultry industries.http://www.scielo.br/scielo.php?script=sci_arttext&pid=S1516-35982024000100202&lng=en&tlng=enexchange ratefuelMonte Carlo analysispoultry raisingscenariosensitivity |
| spellingShingle | Fábio Mascarenhas Dutra Rodrigo Garófallo Garcia Rafael Martins Noriller Erlaine Binotto Maria Fernanda de Castro Burbarelli Claudia Marie Komiyama Fabiana Ribeiro Caldara Jean Kaique Valentim Economic viability analysis of mechanization in broiler chicken harvesting Revista Brasileira de Zootecnia exchange rate fuel Monte Carlo analysis poultry raising scenario sensitivity |
| title | Economic viability analysis of mechanization in broiler chicken harvesting |
| title_full | Economic viability analysis of mechanization in broiler chicken harvesting |
| title_fullStr | Economic viability analysis of mechanization in broiler chicken harvesting |
| title_full_unstemmed | Economic viability analysis of mechanization in broiler chicken harvesting |
| title_short | Economic viability analysis of mechanization in broiler chicken harvesting |
| title_sort | economic viability analysis of mechanization in broiler chicken harvesting |
| topic | exchange rate fuel Monte Carlo analysis poultry raising scenario sensitivity |
| url | http://www.scielo.br/scielo.php?script=sci_arttext&pid=S1516-35982024000100202&lng=en&tlng=en |
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