Sustainable performance of honey and propolis production in the countryside of the State of Sao Paulo, Brazil

Abstract

Beekeeping can be an alternative source of income for family farmers and, thereby, it can help to improve local development in a sustainable way. However, it requires specialized knowledge on technical and productive levels. In this sense, can there be an implementation of a project for the production of honey and propolis that configures a feasible alternative for sustainable rural development? This study aimed to analyze the financial, economic, and risk viability for the implementation of a project focused on beekeeping activity. The research took place in the city of Taquaritinga, in the countryside of the state of Sao Paulo (Brazil). This work is characterized as a case study with an exploratory approach, carried out through quantitative data from real scenarios (optimistic - 10%) and pessimistic - -10%), through the liquid revenue of a beekeeper. The project analysis used economic viability indicators such as: Net Present Value (NPV), Internal Rate of Return (IRR) and Payback. The financial analysis was carried out through a Cash Flow (CF), a Profitability Index (PI) and a risk analysis via Monte Carlo Simulation (MCS). The results showed that investment in beekeeping is feasible in all scenarios. In the real scenario, net revenue was US$ 1,424.00/ year, Pavback 2.1/year, VPL US$ 3,810.62, and IRR 47%; in the pessimistic scenario, net income was $1,219.00, Payback 2.5/year, VPL $2,915.71, and IRR 38%, and in the optimistic scenario, net revenue was $1,628.00/year, Payback 1.9/year, VPL $4,734.26, and IRR 56%.Finally, IP was 1.19. Risk analysis mentioned a level of certainty that the probability occurs in all scenarios greater than 67%, since the results were higher than the Minimum Rate of Attractiveness (MRA).