Economic feasibility of flavored sheep’s milk-based yogurt

Abstract

The aim of this study was to develop a mathematical model to estimate the production costs of a flavored sheep’s milk-based yogurt and analyze the economic viability of its production. Data were considered and allocated as propo- sed by the Neoclassical Economic Theory of Costs. The cost components were allocated in the order: i) variable costs; ii) fixed operating costs; iii) operating costs; iv) factors income and/or cost of remunerations of capital and land; and v) total cost. Literary data on the yogurt production process and a list of all necessary inputs in manufacturing the product were collected. Subsequently, price quotations were made for all the inputs and such data were used to feed the calculation model. After costs estimation, the economic indicators were evaluated: gross margin, net mar- gin, profit, leveling point, net income, total factor productivity, and rate of return. An annual production of 209,160 yogurts was considered, with a calculated cost of R$ 1.75 (Brazilian currency) per 100 ml unit produced. Variable, fixed operating, and factors income costs represented 73%, 21% and 6% of the total cost. With a unit sales value of R$ 4.19, the flavored yogurt based on sheep’s milk proved to be a profitable alternative, with favorable economic and financial indicators in the short, medium, and long term.