Bioeconomic model of beef production. II. Economic evaluation of introducing improved pasture into an extensive beef system in central Brazil

Abstract

Through a simulation model the introduction of improved pasture into a breeding system was evaluated under different strategies and risk. Although the pasture establishment by way of rice cropping showed a high variation on the economic performance of the system, this alternative still was more attractive than direct establishment. Risk due to variation in beef prices did not seem to be an important factor for the system improvement in the long term. However, starting the pasture establishment at the top of the beef price cycle was shown to be a better strategy than the beginning, middle and botton of the cycle. The buying of breeding cows to accelerate the herd growth provided better economic results than natural growth with and without buying of steers. The selling of fat steers (46 months) was better than any other selling age. The total replacement of "cerrado" by cultivated pasture, through the usual technology, only showed to be attractive by using subsidised credit.