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Economic and financial viability of a pig farm in central semi-tropical Mexico: 2022–2026 prospective.

Authors :
Martínez-Castañeda, Francisco Ernesto
Callejas-Juárez, Nicolás
Cuevas-Reyes, Oscar
Rogers-Montoya, Nathaniel Alec
Gómez-Tenorio, Germán
Trujillo-Ortega, María Elena
Peñuelas-Rivas, Claudia Giovanna
Hernandez, Elein
Source :
PLoS ONE; 5/9/2024, Vol. 19 Issue 5, p1-11, 11p
Publication Year :
2024

Abstract

To estimate the economic and financial viability of a pig farm in central sub-tropical Mexico within a 5-year planning horizon, a Monte Carlo simulation model was utilized. Net returns were projected using simulated values for the distribution of input and product processes, establishing 2021 as base scenario. A stochastic modelling approach was employed to determine the economic and financial outlook. The findings reveal a panorama of economic and financial viability. Net income increased by 555%, return on assets rose from 3.36% in 2022 to 11.34% in 2026, and the probability of decapitalization dropped from 58% to 13%, respectively in the aforesaid periods. Similarly, the probability of obtaining negative net income decreased from 40% in 2022 to 18% in 2026. The technological, productive, and economic management of the production unit allowed for a favorable scenario within the planning horizon. There is a growing interest in predicting the economic sectors worth investing in and supporting, considering their economic and development performance. This research offers both methodological and scientific evidence to demonstrate the feasibility of establishing a planning schedule and validating the suitability of the pork sector for public investment and support. [ABSTRACT FROM AUTHOR]

Details

Language :
English
ISSN :
19326203
Volume :
19
Issue :
5
Database :
Complementary Index
Journal :
PLoS ONE
Publication Type :
Academic Journal
Accession number :
177166719
Full Text :
https://doi.org/10.1371/journal.pone.0298897