Economic viability in dairy farming and production of F1 calves

The objective was to inventory and calculate production costs with an analysis of the economic situation of the two activities carried out on a dairy farm. The aforementioned farm is located in the municipality of Lagoa da Prata, in the central mesoregion of the state of Minas Gerais. The costs related to dairy production in a herd of the Girolando breed were calculated, as well as the costs with the activity of producing F1 calves from the cross: Gir x Holandes, offering consistent data for the owner's decision-making regarding their continuity. All the resources already used in production were used in the calculations, as well as all the results achieved in the current administration models. It is concluded that the milk production activity manages to remunerate operating costs, since the average revenue: R$ 1.10 exceeds the average total operating cost: R$ 0.96. It cannot remunerate the return on capital, as the average total cost is R$ 1.31. When comparing the costs with Rme (milk plus by-products): R$ 1.33, the activity pays the return on capital. The producer stops earning the amount of R$ 293,772.25 per 18-month cycle, by keeping the capital invested instead of investing it in the savings account.y