COST MANAGEMENT IN LIVESTOCK ACTIVITY: A CASE STUDY IN A RURAL PROPERTY IN THE MUNICIPALITY OF SANTANA DO CARIRI-CE

Abstract

This study aims to evaluate the profitability index of beef cattle farming under a semi-intensive system, based on the case of a rural producer located in the municipality of Santana do Cariri, Ceará, Brazil. The analysis was carried out through the assessment of direct, indirect, and fixed costs, using data collected from interviews and observation of the production cycle. The results showed a profitability index of 28.32%, confirming the economic feasibility of the activity, although slightly below the benchmark defined by the so-called “golden rule of cattle farming,” which sets a maximum threshold of 60% for total production costs during the rearing and finishing phases. In the case analyzed, costs reached 71.68%, with feed expenses accounting for 66.07% of direct disbursements over a 29-month cycle. This cost structure resulted in total revenue of R$ 137,025.00 and a net profit of R$ 38,804.25. It is important to highlight that these figures may vary across production cycles due to external factors such as market fluctuations, input prices, and beef price volatility. Therefore, the study reinforces the importance of strategic management as a tool for the accurate measurement of profitability in rearing and finishing systems conducted under semi-intensive and intensive models.