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V. Data and Surveys


5.1 Sample Location and its Characteristics

Three regions were selected in Brazil, each with the following characteristics:

i. South - This region includes the sates of Rio Grande do Sul (RS), Santa Catarina (SC) and Paraná (PR). It represents the traditional grain, meat and milk areas, including both small and medium-sized farms. Livestock industries located in the South represent a large share of the sector.

ii. Southeast - São Paulo (SP), Minas Gerais MG), Rio de Janeiro (RJ) and Espírito Santo (ES) are included in the Southeast. It is the richest and most industrialized area of the country. Regarding the agricultural sector, this region is no longer an important grain production area. It concentrates the production of sugar cane and orange, particularly in São Paulo, and other agricultural products in Minas Gerais. In peripheral areas, milk, beef and eggs are still produced. The Southeast imports grains from other regions, especially the Central West.

iii. Center West - The states of Mato Grosso (MT), Mato Grosso do Sul (MS) and Goiás (GO) form the central west region of Brazil. It is characterized by a low population density and a great expansion potential for crops and animal production. It is the area where agriculture grows at the highest rate in Brazil. It is the area with highest export of food. Grain production and cattle ranching predominates in the central west region.

5.1.1 Sample Size and Composition

i. The broiler survey was based on a sample of 235 farms. Table 5.1 indicates the sample composition according to the lodging capacity. Only 6 farmers in the sample did not produced under contract. Observed contracts were similar in conception.

ii. The hogs survey considered a sample of 193 farms distributed over the states of Goiás,.Minas Gerais, Mato Grosso do Sul, Mato Grosso, Paraná, Rio Grande do Sul and Santa Catarina. The samples were stratified according to the number of parents, following the methodology defined by Brazilian Institute of Geography and Statistics (IBGE). The producers were divided into three groups: integrated (contracted by the companies), integrated (member of cooperatives) and independent.

Table 5.2 indicates that 51% of swine growers in the sample produced under contract; 30% operated independently and 19% were cooperatives.

Table 5.1 Number of producers per state and lodging capacity

Ranges (birds)

GO

MG

MS

MT

PR

RS

SC

Total

4001 - 16000

0

13

4

7

13

13

40

90

16001 - 60000

11

14

21

21

6

13

32

118

Over 60001

18

8

1

0

0

0

0

27

Total

29

35

26

28

19

26

72

235

Source: Research data

Table 5.2 Numbers of sample farmer according to the production system


Number

%

Cooperative

37

19%

Independent

57

30%

Integrated

99

51%

Total

193

100%

Source: Research data

According to Table 5.3, almost have of the small-scale swine producers (less than 200 sows) are integrated and about a third are independent. The proportions of integrated and independent producers in the next stratum (200-600 sows) are the equal (41.7%). One half of the largest farmers (more than 1200 sows) are independent.

Table 5.3 Characteristics of farmer production system for numbers of Sows

System

0-200

200-600

600-1200

> 1200

Cooperative

19,0%

27,0%

16,7%

21,4%

Independent

31,6%

54,1%

41,7%

50,0%

Integrated

49,4%

18,9%

41,7%

28,6%

Total

100,0%

100,0%

100,0%

100,0%

Source: Research data

Three types of production systems were included in the sample, as shown in Table 5.4. In Minas Gerais, Paraná, Rio Grande do Sul e Santa Catarina, swine production is dominated by the complete-cycle system. In Mato Grosso and Mato Grosso do Sul growers are predominantly finishers, but farmers producing under the complete system are also expressive in number. The production of piglets only dominates in Goiás but is relevant in Rio Grande do Sul and Santa Catarina as well.

Table 5.4 Swine production system by state

System

GO

MG

MS

MT

PR

RS

SC

Complete cycle

26,32%

67,74%

36,67%

40,00%

66,67%

52,00%

46,67%

Piglets production

42,11%

9,68%

6,67%


33,33%

40,00%

35,00%

Finishers

31,58%

22,58%

56,67%

60,00%


8,00%

18,33%

Total

100,00%

100,00%

100,00%

100,00%

100,00%

100,00%

100,00%

Source: Research data

iii. The sample of dairy farmers included 160 producers according to the production distribution of IBGE. The selected states represent 76 % of the milk production in Brazil.

Table 5.5. Numbers of sample dairy farmers by state

State

Number of Farmers

% of farmers in the sample

% of the state in national production

RS

35

21,88%

11,73%

SC

17

10,63%

3,85%

PR

20

12,50%

7,23%

SP

17

10,63%

15,21%

MG

43

26,88%

25,84%

GO

28

17,50%

11,97%

Total

160

100,00%

75,83%

Source: Research data.

Small-scale dairy farmers (less than 500 liters/day) are expressive in Rio Grande do Sul and Santa Catarina. See Table 5.6. In Paraná, São Paulo, Minas Gerais and Goiás, larger farms dominate. Small-scale farms employ predominantly family labor in the South. In Goiás, to a higher degree, and São Paulo and Minas Gerais, small-scale farms are based on hired labor. Larger farms use mainly hired labor as expected.

Table 5.6 Size distribution and labor categories of the sample farmers.


Over 200 and under 500 l/day

Over 500l/day

Familiar

Hired

TOTAL

Familiar

Hired

TOTAL

RS

80%

20%

50%

17%

83%

50%

SC

78%

22%

68%

36%

64%

32%

PR

71%

29%

35%

15%

85%

65%

SP

44%

56%

26%

-

100%

74%

MG

42%

58%

36%

9%

91%

64%

GO

25%

75%

36%

19%

81%

64%

Source: Research data.

iv. The size of the sample of egg producers was 89 distributed among states according to data from IBGE. Small-scale farmers predominate in the sample.

Table 5.7 Sample of Egg Producers

Number of chickens

MG

PR

SP

TOTAL

0 to 50000

9

14

18

41

50000 to 200000

11

5

10

26

200000 to 5000000

2


10

12

Over 500000

3

1

6

10

Source: Research data

5.1.2 Rationale for Size Category

The basis for the sample stratification followed the standards indicated by IBGE. However, the original layers were added in a way to compose groups that could be identified according to the number of animals and that could be related to the different production systems found in the field work.

Smallholder: According to the 1996 Agriculture Census, informal scale production has practically disappeared. As a rule, it has become cheaper the acquisition of the product in the market than its "backyard" production. Also, although municipal health and environment regulations vary according to the city administration, in general animal growing is forbidden within urban areas. Thus, small farms were defined in a way to compose a group of producers with a minimum commercial production scale.

Medium-scale Operations

5.2 How Data was handled and Variables Constructed.

The information collected through the field surveys were used to construct the variables needed for estimation of the profit function frontiers. Four equations were defined: one for broiler, one for swine, one for dairy and another one for layers (or eggs). The dependent variable in all of them was profit per unit of output. The set of explanatory (RHS) variables were subdivided into two subsets: (a) the beta coefficient variables related to the profit function properly and the delta coefficient variables designed to explain the inefficiency of the farmers vis a vis the frontier function.

5.2.1 Broiler Equation

All broiler farms produces under contract, that is, all are integrated.

1) Dependent variable

Unit Profit = (Farm Gate Revenue - Variable Costs)/Broiler production (R$/kg)

Variable Cost = Hired labor cost + Electricity cost + Litter cost + Collecting and truck loading cost + Heating cost

Hired labor cost = [Hours worked X Labor cost (R$)/hour]

Electricity Cost = Price(R$/kw) X electricity consumption (kw)

Litter cost = Price(R$/t) X Amount used (t)

Collecting and truck loading cost = price (R$/ broiler) X number of broilers

Heating cost = [Price of butane(R$/kg) X Amount of butane(kg)) + (Price of wood (R$/m3) X Amount of Wood(m3) + (Price of coal (R$/m3) X Amount of coal(m3)].

2) Explanatory variables: beta coefficients variables

B1 - Feed conversion = Total consumption of feed (kg)/ Total broiler production (kg)

B4 - Price Hired labor = Labor cost (R$) /hour

B5 - Price of Electricity = Market Price (R$/ kw)

B7 - Price of Litter = Market price (R$/t)

B8 - Collecting and truck loading Price = Market price/broiler

B9 - Heating Price = R$/kcal.

B10 - Output Broiler Price = Farm gate price paid by integrator(R$/kg)

Fixed factors

B10 - Agricultural land = Land used for animal building.(m2/kg).

B11 - Family Labor = number of hours/output(kg)

B12 - Capital = Cost with depreciation of building and equipment (R$)/output(kg)

3) Determinants of Inefficiency: Delta coefficient variables

Educations and experience

D1 - Length of time decision maker in activity = Years

D2 - Level of education for decision maker = (1=none, 2=incomplete primary, 3=complete, primary, 4=incomplete secondary, 5=complete secondary, 6=incomplete college, 7= complete college, 8=post college).

D3 - Length of time decision maker in this farm = Years

Concentration

D4 - Animal concentration in regions = number of broilers in region/km2. The region is the official geographical area, to which the municipio belongs, defined by IBGE.

D5 - Animal concentration on the farm = number of broilers/m2 of farm area.

D6 - Environmental cost = manure collecting, storing and spreading costs

D7 - Distance of the city = km

Taxes

D9 - Taxes = (Farmer's union contribution) /output (kg).

Access to information

D10 - information index = sum of information channels dummies (radio, TV, Cable TV, internet, telephone, cell telephone, newspapers, magazines, information booklets).

States dummies

D11 - DummyPR = 1 for PR, 0 for others

D12 - DummyRS = 1 for RS, 0 for others

D13 - DummyMG = 1 for SC, 0 for others

D14 - DummyMS = 1 forMS, 0 for others

D15 - DummyMT = 1 for MT, 0 for others

D16 - DummyGO = 1 for GO, 0 for others.

D17-Scale variable = Output (kg). OK.

5.2.2 Layers equation

1) Dependent variable

Unit Profit = (Revenue - Variable Costs)/Egg production (boxes) = R$/box of 360 eggs.

Revenue = [(Sales price of the box with 360 eggs (R$/box) X output (boxes)) + (Sales price of manure(R$/t) X Amount manure sold or used (t) + (Sales price of box (R$/box)X self consumption of eggs (boxes) + (Amount of feed bags sold (kg)X price of bags (R$/kg))].

Variable Cost = Feed cost + Hired labor cost +Electricity cost + Freight cost

Feed cost = Sum of expenditures on each stage feed (R$)

Cost of hired labor = [Hours worked X labor cost (R$)/hour]

Cost of electricity = Electricity expenditure (R$)

Freight Cost = (R$/box) X Boxes sold

2) Explanatory variables: beta coefficient variables

B1 - Feed conversion = Total consumption of feed (kg)/ output (boxes)

B2 - Feed Price feed = Sum of expenditures on each stage feed (R$) / Total feed consumption (kg)

B3 - Price of hired labor = Labor cost (R$) /hour

B4 - Price of Electricity = R$/kw

B6 - Output price = Market price (R$/box)

Fixed factors

B10 - Agricultural land = Land used in the farm with agriculture area and pasture area (ha)/output (boxes)

B11 - Family labor = number of hours/output (boxes)

B12 - Capital = Cost with depreciation of building and equipment (R$)/output (boxes)

3) Determinants of Inefficiency: Delta coefficient variables

Educations and experience

D1 - Length of time decision maker in this farm = Years

D2 - Level of education for decision maker

D3 - Age of the decision maker = Years

D4 - Length of time decision maker in activity = Years

Concentration

D5 - Animal concentration in regions = number of layers in regions /km2

D6 - Animal concentration on the farm = number of layers/m2

D7 - Environmental cost = manure collecting, storing and spreading cost

D8 - Distance of the city = km

Access to information

D9 - information index - sum of information channel dummies

States dummies

D10 - DummySP = 1 for SP, 0 for others

D11 - DummyPR = 1 for PR, 0 for others

D12 - Output (boxes)

5.2.3 Swine equation

1) Dependent variable

Unit Profit = (Revenue - Variable Costs)/output (R$/kg)

Revenue = [(Sales price (R$/kg))X output(kg)

Variable Cost = Feed cost + Hired labor cost + Taxes +Electricity cost + Medicine cost + Input freight cost + Veterinarian cost + Output freight cost + Labor training cost + Other freight costs + Fuel cost + Environmental cost

Feed Cost = Sum of expenditures on each stage feed (R$)

Hired labor cost = Number of hours worked X labor cost/hour (R$)

Electricity cost = Electricity expenditure (R$)

Medicine cost = expenditure on medicines (R$)

Input freight cost = expenditure on input freight (R$)

Veterinarian cost = expenditure with veterinarian (R$)

Output freight cost = expenditure on output freight (R$)

Fuel cost = expenditure with fuel (R$)

Environmental cost = permit cost (R$)

2) Explanatory variables: beta coefficient variables

B1 - Feed conversion = Total consumption of feed (kg)/ output (kg)

B2 - price of feed = Sum of expenditures on each stage feed (R$)/Feed consumption (t)

B3 - Price of hired labor = Labor cost/hour

B4 - Electricity price = (R$/kw)

B7 - Veterinarian price = expenditure with veterinarian (R$)/month

B10 - Environmental price = permit cost (R$)/animal

B11 - Output price (R/kg)

B12 - Complete Cycle (1= Complete cycle or 0 = Others)

B13 - Independent - (1= Independent or 0 = Others)

B 14 - Integrated (1= Integrated or 0 = Others)

Fixed factors

B15 - Agricultural land = Land used in the farm with agriculture area and pasture area (ha)/output (kg)

B16 - Family labor = number of hours/output (kg)

B17 - Capital = Cost with depreciation of building and equipment (R$)/output (kg)

3) Determinants of Inefficiency: Delta - coefficient variables

Educations and experience

D1 - Length of time decision maker in this farm = Years

D2 - Level of education for decision maker

D3 - Age of the decision maker = Years

D4 - Length of time decision maker in activity = Years

Concentration

D5 - Animal concentration in regions = number of animals in region /km2

D6 - Animal concentration on the farm = number of animals/m2

D7 - Environmental cost = to be clarified

D8 - Distance of the city = km

D9 - Environmental cost = permit cost (R$)

D10 - Farm distance to nearest neighbor = km

Access to information

D11 - Information index = sum of information channels dummies

States dummies

D12 - DummySC - 1 for SC, 0 others

D13 - DummyPR - 1 for PR, 0 others

D14 - DummyMS - 1 for MS, 0 others

D15 - DummyMT - 1 for MT, 0 others

D16 - DummyGO - 1 for GO, 0 others

D17- DummyMG - 1 forRS, 0 others Changed to Dummy RS

D21- Output (kg)

5.2.4 Dairy Equation

1) Dependent variable

Unit Profit = (Revenue - Variable Costs)/output (R$/liter)

Revenue = [(Sales price (R$/liter)X output(liter)

Variable Costs = Humid feed cost + Dry feed cost + Pasture maintenance cost + Equipment maintenance cost + Medicine cost + Genetic cost + Electricity cost + Manager cost + Hired labor cost + Freight cost + Equipment maintenance cost (fencing costs included).

Humid feed cost = Humid feed expenditure (R$)

Dry feed cost = Dry feed expenditure (R$)

Pasture maintenance cost = Pasture maintenance expenditure (R$)

Equipment maintenance cost = Equipment maintenance expenditure (R$)

Medicine cost = medicine expenditure (R$)

Genetic cost = expenditure on semen and nitrogen (R$)

Electricity cost = electricity expenditure (R$)

Hired labor cost = Number of hours worked X labor cost/hour (R$/)

Equipment maintenance cost = Equipment maintenance expenditure (R$).

2) Explanatory variables: beta coefficient variables

B1 - Milk production by cow in lactation per day.

B2 - Humid feed price = Humid feed expenditure/kg of feed (R$)

B3 - Dry feed price = Dry feed expenditure/ kg of feed) (R$).

B6 - Medicine price = medicine expenditure (R$/animal)

B7 - Genetic price = expenditure on semen and nitrogen (R$/dose)

B8 - Electricity price = R$/kw

B10 - Hired labor price = Labor cost/hour (R$/hour)

B12 - Output price = R$/liter

B13 = membership of a cooperative: dummy = 1 if cooperative member.

Fixed factors

B13 - Agricultural land = Land used in the farm with agriculture area and pasture area (ha)/output (liter)

B14 - Family labor = number of hours/output (liter)

B15 - Capital = Cost with depreciation of building and equipment (R$)/output (liter)

B16 - Value of herd = working capital.

3) Determinants of inefficiency: delta coefficient variables

D1 - LAC - Duration of lactation in the farm (days)

D2 - EXPPROP - Experience in the activity (years)

D3 - DummyPROP - The manager is the proprietor (1), 0 otherwise

D4 - DummyFAM - The manager is member of the family(1), 0 otherwise

D5 - EXPMAN - Manager experience in the activity (years)

D6 - DUMMYRES - The proprietor resides in the farm (1), 0 otherwise

D7 -AGEMAN - Age of manager (years)

D8 - SCHOOLMAN - Manager schooling (years)

D9 - DUMMYTRAIN - The manager has had training in last 12 months (1), 0 otherwise

D10 - DIST - Distance between the farm and the city (km)

D11 - Index of information - sum of information channels points

D12 - Environmental Cost. Being included.

States dummies

D13 - DummyRS - 1 for RS, 0 others

D14- DummySC - 1 for SC, 0 others

D15 - DummyPR- 1 for PR, 0 others

D16 - DummySP - 1 for SP, 0 others

D17 - DummyMG -1 for MG, 0 others

D18 - Output (liters)

Locational maps of survey

Figure 5. 1 Poultry livestock distribution in Middle West region of Brazil - IBGE, 2001.

Figure 5. 2 Layers livestock distribution in the Midwest of Brazil - IBGE, 2001.

Figure 5. 3 Main producer regions, defined according to the milked-cows criteria.

Figure 5. 4 Swine livestock distribution in south and midwest of Brazil

Statistics

The statistics for variables is showing in Tables 5.8 to 5.9 for Broiler, Layer, Swine and Dairy model respectively.

Table 5.8 Statistics - Broiler model.

Variable*

Average

Minimum

Maximum

Standard dev.

Medium

Variation Coeff.

Unit Profit

0.06

-0.04

0.17

0.03

0.06

0.47

Feed Conversion

1.89

1.47

2.32

0.14

1.89

0.07

Price Hired Labor

0.82

0.00

9.34

1.62

0.00

1.98

Price of Electricity

0.16

0.10

0.26

0.02

0.16

0.15

Price of Litter

22.64

2.54

140.00

24.10

8.13

1.06

Col. and Truck Loading Price

0.02

0.01

0.03

0.00

0.02

0.28

Heating Price

0.04

0.00

0.12

0.04

0.02

0.95

Output Broiler Price

0.08

0.03

0.13

0.02

0.08

0.24

Agricultural Land

0.04

0.02

0.16

0.02

0.04

0.41

Family Labor

0.01

0.00

0.06

0.01

0.01

0.92

Capital

0.02

0.01

0.07

0.01

0.02

0.35

Length of Time De. Maker in Ac.

9.79

0.33

46.00

7.96

7.00

0.81

Level of Education for De. Maker

3.13

1.00

8.00

1.80

2.00

0.57

Length of Time Decision Maker in this Farm

23.79

0.25

72.00

16.50

22.00

0.69

Animal Concentration in Region

1248

48

3036

1291

444

1.03

Animal Concentration on Farm

1557

10

29582

2965

694

1.90

Environmental Cost

0.01

0.00

0.06

0.01

0.00

1.18

Distance of the City

12.84

0.50

68.00

11.82

9.00

0.92

Taxes

0.00

0.00

0.01

0.00

0.00

1.36

Information Index

3.81

1.00

8.00

1.42

4.00

0.37

Scale Variable

59064

10902

347633

54939

41248

0.93

Fonte: CEPEA/ESALQ/USP
* Below is presented the measures of the variables.

Variable

Measure

Unit Profit

R$/kg

Feed Conversion

weight feed/live-weight

Price Hired Labor

R$/hours

Price of Electricity

R$/kw

Price of Litter

R$/ton

Collecting and Truck Loading Price

R$/broiler

Heating Price

R$/kcal

Output Broiler Price

R$/kg

Agricultural Land

m2/kg

Family Labor

hours/kg

Capital

R$/kg

Length of Time Decision Maker in Activity

number of years

Level of Education for Decision Maker

Description

Length of Time Decision Maker in this Farm

number of years

Animal Concentration in Region

broiler/km2

Animal Concentration on Farm

broiler/ha

Environmental Cost

R$/kg

Distance of the City

km

Taxes

R$/kg

Information Index

index

Scale Variable

kg

Table 5.9 Statistics - Layer model.

Variable*

Average

Minimum

Maximum

Standard dev.

Medium

Variation coeff.

Unit Profit

-0.60

-16.00

9.40

5.00

-0.22

8.30

Feed Conversion

52.08

37.50

76.28

6.87

52.00

0.13

Feed Price

0.46

0.21

0.82

0.08

0.43

0.17

Price of Hired Labor

1.99

1.21

3.63

0.46

1.91

0.23

Price of Electricity

0.17

0.13

0.18

0.02

0.18

0.11

Price Into Freight

0.24

0.01

0.85

0.18

0.19

0.75

Agricultural Land

0.01

0.00

0.11

0.02

0.00

2.30

Family Labor

0.66

0.00

4.67

1.03

0.22

1.57

Capital

0.76

0.16

2.48

0.52

0.56

0.68

Length of Time Decision Maker in this Farm

18.82

2.00

56.00

11.05

18.00

0.59

Level of Education for De. Maker

4.84

2.00

6.00

1.37

5.00

0.28

Age of the Decision Maker

47.36

20.00

78.00

13.39

47.00

0.28

Length of Time De. Maker in Ac.

18.82

2.00

56.00

11.05

18.00

0.59

Animal Concentration in Region

13.30

1.06

35.08

15.65

3.41

1.18

Animal Conc. on the Farm

0.56

0.01

12.22

1.38

0.26

2.48

Environmental Cost

0.05

0.01

0.33

0.06

0.02

1.34

Distance of the City

6.84

0.10

35.00

7.06

4.00

1.03

Information Index

4.90

1.00

6.00

1.31

5.00

0.27

Output

12295

360

156000

21675

3960

1.76

Fonte: CEPEA/ESALQ/USP
* Below is presented the measures of the variables.

Variable

Measure

Unit Profit

R$/box

Feed Conversion

kg feed/box

Feed Price

R$/kg

Price of Hired Labor

R$/hour

Price of Electricity

R$/kw

Price Into Freight

R$/box

Output Price

R$/box

Agricultural Land

ha/box

Family Labor

hours/box

Capital

R$/box

Length of Time Decision Maker in this Farm

years

Level of Education for Decision Maker

index

Age of the Decision Maker

years

Length of Time Decision Maker in Activity

years

Animal Concentration in Region

chickens/km2

Animal Concentration on the Farm

chickens/m2

Environmental Cost

R$/box

Distance of the City

km

Information Index

index

Output

box

Table 5.10 Statistics - Swine model.

Variable*

Average

Minimum

Maximum

Standard Dev.

Medium

Var. coeff.

Unit Profit

-0.16

-1.11

1.11

0.40

-0.04

2.43

Feed Conversion

2.31

1.45

4.27

0.38

2.28

0.16

Price of Feed

0.46

0.16

0.87

0.10

0.45

0.21

Price of Hired Labor

2.30

0.00

8.86

1.84

2.36

0.80

Electricity Price

0.17

0.10

0.21

0.03

0.17

0.17

Environmental Price

0.06

0.00

1.45

0.15

0.00

2.69

Output Price

1.28

1.12

2.03

0.21

1.15

0.17

Agricultural Land

0.00

0.00

0.00

0.00

0.00

2.94

Family Labor

0.00

0.00

0.02

0.00

0.00

0.86

Capital

0.01

0.00

0.12

0.02

0.01

1.47

Length of Time Decision Maker in this Farm

19.82

1.00

62.00

14.21

19.00

0.72

Level of Education for De. Maker

10.03

0.00

20.00

4.55

11.00

0.45

Age of the Decision Maker

42.91

19.00

80.00

12.00

42.00

0.28

Length of Time De. Maker in Ac.

16.59

0.50

50.00

11.92

12.00

0.72

Animal Concentration in Region

0.02

0.00

0.05

0.01

0.02

0.69

Animal Conc. on the Farm

0.01

0.00

0.35

0.03

0.00

3.61

Environmental Cost

0.03

0.00

0.13

0.02

0.02

0.82

Distance of the City

15.21

0.50

150.00

18.29

9.00

1.20

Farm Dist. to Nearest Neighbor

1.25

0.02

20.00

2.46

0.50

1.96

Information Index

5.43

2.00

8.00

1.96

6.00

0.36

Output (kg)

1067239

45600

15840000

2043746

508200

1.91

Percent Share of Swine

0.57

0.00

1.00

0.32

0.6

0.56

Production Total Income







Fonte: CEPEA/ESALQ/USP
*Below is presented the measures of the variables.

Variable

Measure

Unit Profit

R$/kg

Feed Conversion

kg feed / output kg

Price of Feed

R$ / kg

Price of Hired Labor

R$/h

Electricity Price

R$/w

Veterinarian Price

R$ / month

Environmental Price

R$/animal (out)

Output Price

R$ / kg

Agricultural Land

ha / output (kg)

Family Labor

hour / output (kg)

Capital

R$ / output (kg)

Length of Time Decision Maker in this Farm

years

Level of Education for Decision Maker

years

Age of the Decision Maker

years

Length of Time Decision Maker in Activity

years

Animal Concentration in Region

animal / km2

Animal Concentration on the Farm

animal / m2

Environmental Cost

R$ / output (kg)

Distance of the City

km

Farm Distance to Nearest Neighbor

km

Information Index

index

Output (kg)

kg

Table 5.11 Statistics - Dairy model.

Variable*

Average

Minimum

Maximum

Standard Dev.

Medium

Var. Coeff.

Unit Profit

0.05

-0.17

0.24

0.08

0.05

1.62

Milk Production by Cow in Lactation per Day

18.21

5.78

43.13

5.73

17.89

0.31

Humid Feed Price

15.77

0.00

73.11

13.37

12.07

0.85

Dry Feed Price

0.83

0.33

1.40

0.37

0.82

0.45

Medicine Price

37.34

2.55

140.22

28.41

30.41

0.76

Genetic Price

13.85

0.00

42.14

9.58

15.52

0.69

Electricity Price

0.16

0.10

0.19

0.02

0.16

0.14

Hired Labor Price

1.58

0.00

12.95

2.26

1.04

1.43

Output Price

0.37

0.19

0.74

0.07

0.36

0.18

Agricultural Land

0.00

0.00

0.01

0.00

0.00

1.26

Family Labor

0.02

0.00

0.04

0.01

0.01

0.60

Capital

0.07

0.03

0.18

0.03

0.07

0.38

Value of Herd

0.04

0.02

0.13

0.02

0.04

0.41

Duration of Lactation in the Farm

293.08

180.00

360.00

30.65

301.00

0.10

Experience in the Activity

19.33

1.00

70.00

14.24

16.00

0.74

Manager Experience in the Activ.

17.99

1.00

63.00

11.86

16.00

0.66

Age of Manager

49.84

21.00

84.00

13.50

49.50

0.27

Manager Schooling

9.11

0.00

16.00

4.28

8.00

0.47

Distance between the Farm and the City

13.89

0.00

54.00

9.87

12.00

0.71

Information Index

1.42

0.00

5.00

1.32

1.00

0.93

Environmental Cost

0.01

0.00

0.08

0.01

0.00

1.26

Output

303164

67525

2106000

321315

200750

1.06

Fonte: CEPEA/ESALQ/USP
* Below is presented the measures of the variables.

Variable

Measure

Unit Profit

R$/liter

Milk Production by Cow in Lactation per Day

liter/cow/day

Humid Feed Price

R$/kg

Dry Feed Price

R$/kg

Medicine Price

R$/dose

Genetic Price

R$/dose

Electricity Price

R$/kw

Hired Labor Price

R$/hour

Output Price

R$/liter

Agricultural Land

R$/ha

Family Labor

R$/hours

Capital

R$/liter

Value of Herd

R$/liter

Duration of Lactation in the Farm

days

Experience in the Activity

years

Manager Experience in the Activity

years

Age of Manager

years

Manager Schooling

years

Distance between the Farm and the City

km

Information Index

index

Environmental Cost

R$/liter

Output

liter



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