Development and application of a bioeconomic efficiency index for beef cattle production in Rio Grande do Sul, Brazil

An index was developed to estimate the bioeconomic efficiency of production systems, identifying alternative scenarios that could improve their efficiency, and building isoefficiency relations in beef cattle production systems in Rio Grande do Sul. The concept of return on investment was used to develop the indicator. Scenarios regarded as efficient showed values higher than 3. The bioeconomic efficiency index for beef cattle production in the theoretical reference scenario was considered inefficient. At least four modifications in the variables method made it a bioeconomically efficient activity. These circumstances were studied using sensitivity analyses, with theoretical changes in the scenarios by changing variables two by two, while the others were kept constant. In Rio Grande do Sul, alternatives that make the activity efficient were identified by changing productivity, production cost, land price and product price. Isoefficiency relationships were identified in other scenarios. The application of this indicator in other agricultural activities, as well as the design of bioefficiency studies including both environmental and social welfare characteristics are recommended.