Optimization of cost management in livestock farming

a proposal for a management tool

Abstract

Livestock plays a crucial role in the Brazilian economy, contributing to the country's GDP. However, cost management in livestock farming is often neglected, with producers making decisions based solely on intuition. The implementation of a cost management control tool is essential to guarantee the economic and environmental sustainability of livestock activities, allowing for more informed decision-making. The tool offers a structured approach to monitor expenses, calculate average costs, track revenue and analyze profits in an accurate and efficient way. This allows you to identify inefficiencies, make informed decisions and adjust production strategies, contributing to the efficiency and profitability of the business. Before implementing the cost management tool, the agricultural property operated in a scenario characterized by challenging financial control. Cost management was conducted mainly based on intuition and mental calculations by managers and owners, resulting in several limitations and deficiencies. Therefore, the general objective of this work is to propose a tool for cost management in the livestock segment. The method outlined for implementing the tool designed to control cost management in livestock farming is based on a structured systematic approach, characterized by a sequential progression of steps, all shaped according to the peculiar requirements of the enterprise. The results generated by the tool include improved financial control, the identification of operational inefficiencies and the ability to make informed decisions, contributing to the efficiency and resilience of the livestock business.