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Development of a Swine Production Cost Calculation Model
Laya Kannan Silva Alves1, Augusto Hauber Gameiro2, Allan Paul Schinckel3
1Laboratory of Swine Research, Department of Animal Nutrition and Production, School of Veterinary Medicine and Animal Science, University of São Paulo, Pirassununga 13635-900, Brazil.
Animals : an Open Access Journal From MDPI
|September 9, 2022
Summary
This study introduces a new tool for pig producers to accurately calculate swine production costs. This empowers better decision-making and improved farm management through cost control.
Area of Science:
- Agricultural Economics
- Swine Production Management
Background:
- Accurate calculation of production costs is crucial for strategic decision-making in swine farming.
- Existing methods for cost calculation may lack standardization, hindering effective management.
Purpose of the Study:
- To present a standardized tool for calculating and controlling swine production costs.
- To provide pig producers with essential information for strategic decision-making.
Main Methods:
- Development of a mathematical model using Microsoft Excel®.
- Validation of the tool through case studies and expert panel review.
- Application of Neoclassical Economic Theory of Costs for cost allocation.
Main Results:
- The model calculates total costs per batch, per market pig, per arroba, and per kilogram.
- Costs are categorized into variable, fixed operating, and opportunity costs.
- The tool was validated by industry professionals, confirming its practical utility.
Conclusions:
- The developed model offers a standardized approach to swine production cost management.
- It serves as a valuable management tool for commercial swine operations.
- The model facilitates informed decision-making by providing clear economic insights.
