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A Stochastic Budgeting Analysis of Three Alternative Scenarios to Convert from Beef-Cattle Farming to Game Ranching AgEcon
Grove, Bennie; Taljaard, Pieter R.; Cloete, Philip C..
The main objective of this paper is to evaluate the profitability and financial feasibility of three alternative scenarios to convert from beef-cattle farming to game ranching. The analyses acknowledge the importance of quantifying the probability of failure or success when making investment decisions. Risk is incorporated into a standard net present value analysis using risk simulation. De-trended historical auction prices of live game and on-the-hoof prices of weaner cattle were used to quantify price variability. The stochastic net present value analyses indicate that game ranching is more profitable than cattle farming. Although an investment in a limited number of common game species is financially feasible, the cash flow analysis indicates a...
Tipo: Journal Article Palavras-chave: Game ranching; Profitability; Financial feasibility; Risk simulation; Agricultural Finance; Farm Management; Livestock Production/Industries.
Ano: 2007 URL: http://purl.umn.edu/7048
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Economics of Meat Production from the Springbuck in the Eastern Cape Karoo AgEcon
Dlamini, Thula S.; Fraser, Gavin C.G..
The feasibility of springbuck based meat production in the EC Karoo was analysed through a stochastic budgeting model, while overtly taking cost and price risk into consideration. Monte Carlo simulation of a springbuck based meat production enterprise was used to quantify the risks that would be faced by springbuck ranchers. Springbuck ranching has been proven a viable alternative in the production of highly nutritious and healthy meat (venison) that is on high demand in European markets and more recently with a promising and growing local demand as well. The results indicate that in the Eastern Cape Karoo, springbuck ranching for meat production is a viable business. As the call for more environmentally friendlier rangelands utilisation economic systems...
Tipo: Journal Article Palavras-chave: Game ranching; Springbuck ranching; Meat production; Economic feasibility; Monte Carlo simulation; Livestock Production/Industries.
Ano: 2010 URL: http://purl.umn.edu/96181
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