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. 2022 Aug 30;12(17):2229.
doi: 10.3390/ani12172229.

Development of a Swine Production Cost Calculation Model

Laya Kannan Silva Alves  1 , Augusto Hauber Gameiro  2 , Allan Paul Schinckel  3 , Cesar Augusto Pospissil Garbossa  1
Affiliations

Development of a Swine Production Cost Calculation Model

Laya Kannan Silva Alves et al. Animals (Basel). .

Abstract

This paper aims to present a tool that offers pig producers a standard method to calculate and control their production costs and, consequently, provides the necessary information to guide strategic decision-making. Following these premises, a mathematical model to estimate swine production costs were developed using Microsoft Excel® software (version 2207). Case studies were used to assist in the characterization and construction of the model. Through the panel method, the tool was validated by professionals in the sector. Costs were considered according to the Neoclassical Economic Theory of Costs and allocated in the order of variable costs, fixed operating costs, and opportunity costs of capital and land. These costs together create the total cost. The model provides the total cost per batch, per market pig, per arroba, and per kilogram, which facilitates the interpretation of the results and economic evaluations of the system. The model is adaptable to different types of swine farming, as well as the consideration of all costs involved in the production system, whether explicit or implicit. The model developed has the potential to be used as a management tool in commercial swine production systems, assisting the producer in the decision-making process through the management and control of production costs.

Keywords: agribusiness; expense; management; modelling; pig production.

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Conflict of interest statement

The authors declare no conflict of interest.

Figures

Figure 1
Figure 1
SWOT analysis of Brazilian pig production. Source: Research data.
See this image and copyright information in PMC

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