The following model is based on a 1000 hectares module.
The model is based on leasing 1000 hectares of land. Business starts buying 2000 calves with 150 kilos and bringing them to 290 kilos in 365 days when they are sold.
The production system is based on natural grass, improved with phosphate fertilizer and a local variety of Lotus (a leguminosae).
Item |
US$ |
Pasture improvement |
35,000 |
Electric Fences |
6,000 |
Working capital |
335,000 |
TOTAL |
376,000 |
|
Item |
US$ |
|
Cost of 2000 calves |
250,000 |
|
labor |
6,000 |
|
vaccination |
8,000 |
|
Fertilization |
20,000 |
|
Lease of land |
30,000 |
|
Management & tech. assistance |
18,000 |
|
Miscellaneous |
3,000 |
|
TOTAL (12 months) |
342,000 |
|
Item |
US$ |
|
Receipts from sales |
397,880 |
|
Purchase of calves |
250,000 |
|
Production expenses |
85,000 |
|
TOTAL CASH RETURNS |
62,880 |
|
Return on Investment |
16,7% |
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The following model is based on a 1000 hectares module. Business is based on leasing 1000 hectares of land. It starts buying 1600 steers with 290 kilos and bringing them to 450 kilos in 365 days when they are sold.
The production system is based on cultivated pastures seeded with no till technology. Pastures are based on a mix of Rye grass, Festuca, Lotus and White Clover, and fertilized with phosphate
|
Item |
US$ |
|
Pasture improvement |
80,000 |
|
Electric Fences |
10,000 |
|
Working capital |
397,000 |
|
TOTAL INVESTMENT |
487,000 |
|
Item |
US$ |
|
Cost of 1600 steers |
324,800 |
|
labor |
12,000 |
|
vaccination |
8,000 |
|
Fertilization |
30,000 |
|
Lease of land |
30,000 |
|
Management & tech assist. |
24,000 |
|
miscellaneous |
5,000 |
|
TOTAL (12 month)s |
433,000 |
|
Item |
US$ |
|
Receipts from sales |
558,720 |
|
Purchase of steers |
324,800 |
|
Production expenses |
109,000 |
|
TOTAL CASH RETURNS |
124,920 |
|
Return on Investment |
25,6% |
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The following table shows costs and returns of soybean production in Uruguay. Business model is based on leasing land and outsourcing of all operations.
|
item |
quantity |
unit |
Unit price (US$) |
TOTAL |
|
Seeds |
80 |
kg |
0,28 |
22,4 |
|
Fertilizer |
130 |
kg |
0,22 |
29,1 |
|
Other inputs |
48,22 |
|||
|
inoculant |
5,92 |
|||
|
Carboxin+Tiram |
2,16 |
|||
|
Glifosato |
17,2 |
|||
|
Cypermetrina |
2,48 |
|||
|
Clorpirifos |
11,5 |
|||
|
Endolsulfan |
8,96 |
|||
|
Operations |
79,9 |
|||
|
fertilizing |
3,4 |
|||
|
spraying |
26,5 |
|||
|
seeding |
20 |
|||
|
harvest |
30 |
|||
|
Post harvest |
34,5 |
|||
|
hauling |
12 |
|||
|
Storage |
9 |
|||
|
drying |
13,5 |
|||
|
Others |
16,1 |
|||
|
insurance |
14,0 |
|||
|
taxes |
2,1 |
|||
|
Land leasing |
90 |
|||
|
TOTAL DIRECT COSTS |
320,2 |
|||
|
Yield Ton/hect. |
3,000 |
kg |
||
|
Price per Ton. |
170 |
|||
|
INCOME |
510,0 |
|||
|
GROSS MARGIN (income – direct costs) |
190,2 |
|||
|
Management |
18 |
|||
|
NET MARGIN |
172,2 |
|||
|
Total cost per ton. ( 3 tons per hectare) |
112,7 |
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