cattle business.
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I am tryiing to figure out the economics of small ranches in paraguay.
Cost of land per Animal unit can be about $1000. This is the land for a cow and a calf, about USD 1000. 1 hector or 10 hectares, if it supports a cow and a calf, $1000. This is a question ?
Beef is $1.5 /KG on the hoof. If the calf weights 200 KG after a year, then the rancher grosses $300 a year on a 1000 investment.
This is about 5 times the US return.
Just trying to throw some numbers out there. A lot of these higher returns could be lack of credit for ranchers, making it difficult to expand?
Hi Haole
Everything you write seems about right to me except the 1Ha per 1 Cow and calf. In the east of Py you'll always hear people say so, but you've looked at the pastures, especially in winter time and just after...(and then they wonder why their cattle has lost so much Kg's.
As for the Chaco norm is 1,5Ha- 2Ha for one cow unit (for me 1 cow unit is cow + calf) The thing is, you must always try to be prepared for droughts. You'll find a lot of farmers in the Chaco that will never put more than 1 unit on 2Ha.They know just to well what can happen, and then its buying food time or let them die...
So when you see virgin forest at$100/ HA it also can roughly support an animal unit on 10 HA. There seems to be a fairly good return on cattle in paraguay.
I am a little old to move and start a new business, but if i was younger maybe.
At 100$ the Ha. I don't wanna know where that land is you're looking at, because you maybe very sure, its gonna be closer to hell's edge than to civilization.
As for cattle on bush, yes its done, don't know though how much Ha. for a unit, but yes its done.
And thats a yes on cattle farming being a very good return for your money at the moment. Though precisely at this moment not so much seeing we're still having problems with exporting since the last month & hoof disease break-out in the east, but its gonna get back to normal again sometime, and then the cattle farmer with a bit of good luck will again start making their money. One has only to go and look at the Mennonites in the middle of the Chaco, what cattle farming has done for them these last 10 years is just incredible. Where 15 years ago a simply thing like a AC was only for the super-rich, these days the big farmers are flying their own planes to their far off estancias(very big farms).
I found some info about developing ranch land at this site.
lotegrande.com.py/propiedades-rurales-campos-en-paraguay
Costos referenciales para el desarrollo de un campo:
Desmonte tipo caracol: Gs. 620.000.- por hectárea.
Desmonte tipo lamina: Gs. 1.150.000.- por hectárea.
Alambrado por Km.: 5 hilos, postes c/5 metros con 3 balancines promedio Gs. 8.000.000.-
Aguadas y tanques: Gs. 5.500.- por metro cúbico.
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beef prices
arp.org.py/
FERIAS GANADERAS - Gran Asunción
Cambio US$:4450/4520
Variación diaria de Oferta y Precio Referencias
DIA Viernes
Jueves
Var % Semana M e s
FECHA 8/06/12 7/06/12 diaria 28/5-1/6 may-12
OFERTA (cab) 1.691 812 108,3% 3.891 18.980
% Vaca 47,8% 68,8% -30,6% 49,6% 52,7%
Precio medio 5.843 5.719 2,2% 5.873 5.771
Novillo (G/kilo 6.425 6.249 2,8% 6.361 6.302
Toro vivo) 6.317 5.889 7,3% 6.340 6.346
Vaca-Vaquilla 5.230 5.521 -5,3% 5.381 5.287
Máximo 7.300 7.060 3,4% 7.560 7.900
FUENTE: PRO RURAL. Telefax: 601-083 - prorural@tigo.com.py
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