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Economic and Financial Viability of Biofortified Sweetpotato Production in Nova Soure - Bahia

Published in Plant (Volume 11, Issue 4)
Received: 26 September 2023    Accepted: 13 October 2023    Published: 31 October 2023
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Abstract

The economic and financial viability analysis of a R$ 60,000.00 investment project was made for the production of biofortified Brazilian sweetpotatoes, in the rural community of ‘Panasco’, Nova Soure municipality in the northeast region of Bahia. The Minimum Attractiveness Rate varied in three scenarios: 10%, 11.50%, and 13.75%. The study used the Multi-Index Methodology to evaluate the return and risk attributes inherent to the investment project. After a detailed analysis of each attribute, investors accepted the TMA of 11.50%, and the indicators resulted in Present Value R$ 70,895.00, Net Present Value R$ 10,895.00, Annualized Net Present Value R$ 2.612,53, Cost Benefit Ratio R$ 1.18, Additional Return on Investment 2.82%, ROIA/TMA 24.52%, Internal Rate of Return 17.65%, Payback of 5 years, Payback/Horizon of 83.33% and TMA/IRR 65.16%. The Business Risk was evaluated with the cross-SWOT analysis. The Revenue Commitment Degree indicated that 68.72% of the revenue is committed to the full payment of the bills that make up the break-even point, with 31.27% of the revenue is taken as profit from the activity. Management Risk was accessed through a nine-point structured quiz so the investors pointed out that the Process and Social areas have greater control, but the Commercial and Administrative areas require greater attention in terms of business strategy. The project was approved, and the funding will be made for an agricultural work period of six years.

Published in Plant (Volume 11, Issue 4)
DOI 10.11648/j.plant.20231104.11
Page(s) 109-121
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Sweetpotato, Economic Analysis, Financial Analysis, Agricultural Project Feasibility, Multi-Index Methodology

References
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Cite This Article
  • APA Style

    Claudio Eduardo Cartabiano Leite, Micael Andrade da Costa, André Ricardo Zeist, Débora Pantojo de Souza. (2023). Economic and Financial Viability of Biofortified Sweetpotato Production in Nova Soure - Bahia. Plant, 11(4), 109-121. https://doi.org/10.11648/j.plant.20231104.11

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    ACS Style

    Claudio Eduardo Cartabiano Leite; Micael Andrade da Costa; André Ricardo Zeist; Débora Pantojo de Souza. Economic and Financial Viability of Biofortified Sweetpotato Production in Nova Soure - Bahia. Plant. 2023, 11(4), 109-121. doi: 10.11648/j.plant.20231104.11

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    AMA Style

    Claudio Eduardo Cartabiano Leite, Micael Andrade da Costa, André Ricardo Zeist, Débora Pantojo de Souza. Economic and Financial Viability of Biofortified Sweetpotato Production in Nova Soure - Bahia. Plant. 2023;11(4):109-121. doi: 10.11648/j.plant.20231104.11

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  • @article{10.11648/j.plant.20231104.11,
      author = {Claudio Eduardo Cartabiano Leite and Micael Andrade da Costa and André Ricardo Zeist and Débora Pantojo de Souza},
      title = {Economic and Financial Viability of Biofortified Sweetpotato Production in Nova Soure - Bahia},
      journal = {Plant},
      volume = {11},
      number = {4},
      pages = {109-121},
      doi = {10.11648/j.plant.20231104.11},
      url = {https://doi.org/10.11648/j.plant.20231104.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.plant.20231104.11},
      abstract = {The economic and financial viability analysis of a R$ 60,000.00 investment project was made for the production of biofortified Brazilian sweetpotatoes, in the rural community of ‘Panasco’, Nova Soure municipality in the northeast region of Bahia. The Minimum Attractiveness Rate varied in three scenarios: 10%, 11.50%, and 13.75%. The study used the Multi-Index Methodology to evaluate the return and risk attributes inherent to the investment project. After a detailed analysis of each attribute, investors accepted the TMA of 11.50%, and the indicators resulted in Present Value R$ 70,895.00, Net Present Value R$ 10,895.00, Annualized Net Present Value R$ 2.612,53, Cost Benefit Ratio R$ 1.18, Additional Return on Investment 2.82%, ROIA/TMA 24.52%, Internal Rate of Return 17.65%, Payback of 5 years, Payback/Horizon of 83.33% and TMA/IRR 65.16%. The Business Risk was evaluated with the cross-SWOT analysis. The Revenue Commitment Degree indicated that 68.72% of the revenue is committed to the full payment of the bills that make up the break-even point, with 31.27% of the revenue is taken as profit from the activity. Management Risk was accessed through a nine-point structured quiz so the investors pointed out that the Process and Social areas have greater control, but the Commercial and Administrative areas require greater attention in terms of business strategy. The project was approved, and the funding will be made for an agricultural work period of six years.
    },
     year = {2023}
    }
    

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  • TY  - JOUR
    T1  - Economic and Financial Viability of Biofortified Sweetpotato Production in Nova Soure - Bahia
    AU  - Claudio Eduardo Cartabiano Leite
    AU  - Micael Andrade da Costa
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    AB  - The economic and financial viability analysis of a R$ 60,000.00 investment project was made for the production of biofortified Brazilian sweetpotatoes, in the rural community of ‘Panasco’, Nova Soure municipality in the northeast region of Bahia. The Minimum Attractiveness Rate varied in three scenarios: 10%, 11.50%, and 13.75%. The study used the Multi-Index Methodology to evaluate the return and risk attributes inherent to the investment project. After a detailed analysis of each attribute, investors accepted the TMA of 11.50%, and the indicators resulted in Present Value R$ 70,895.00, Net Present Value R$ 10,895.00, Annualized Net Present Value R$ 2.612,53, Cost Benefit Ratio R$ 1.18, Additional Return on Investment 2.82%, ROIA/TMA 24.52%, Internal Rate of Return 17.65%, Payback of 5 years, Payback/Horizon of 83.33% and TMA/IRR 65.16%. The Business Risk was evaluated with the cross-SWOT analysis. The Revenue Commitment Degree indicated that 68.72% of the revenue is committed to the full payment of the bills that make up the break-even point, with 31.27% of the revenue is taken as profit from the activity. Management Risk was accessed through a nine-point structured quiz so the investors pointed out that the Process and Social areas have greater control, but the Commercial and Administrative areas require greater attention in terms of business strategy. The project was approved, and the funding will be made for an agricultural work period of six years.
    
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Author Information
  • Cartabiano & Leite Agronegócios LTDA, Jundiaí, Sao Paulo, Brazil

  • Natuba Agro Soluções, Nova Soure, Brazil

  • Plant Genetic Resources Department, Federal University of Santa Catarina, Florianópolis, Brazil

  • PECEGE Institute, Piracicaba, Sao Paulo, Brazil

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