Retorno de investimento da cultura do café: um estudo de caso no Sul de Minas Gerais

Abstract

The lack of studies of the returns to investments in coffee cultivation, as wel1 as the little information available in this area for other activities in the rural sector, let to the realization of this study. This research uses financial analyses commonly applied to firms in the industrial and commercial sectors in order to investigate the economic and financial situation of one enterprise specializing in the growing of coffee, in the region of Lavras, in the South of Minas Gerais» during a period of eight years. The case study method was chosen as the most appropriate for an area still not sufficiently understood, as well as for the fact that a greater quantity of data could be collected and then serve as the basis to indicate areas of new research. The selected farm has been investing in coffee production since 1979. Its simplified financial accounts allowed the creation of financial measures in real terms» thus constituting a time series of eight consecutive harvests (from 1980/81 through 1987/88). This permitted an analysis of the evolution during the period as well as permitting the construction of Indices indicative of the results. The adoption of a policy by the firm of growth and financial dependence caused all of the profits to be reinvested in the technical and financial conduct of the business. This led to the average real growth of value of the business at a rate of 50.417. per year during the period under consideration; stemming from vestments in land» crops» buildings» machinery and equipment reflecting an average investment of 27.147. of the total sales of the farm during the harvests from 1980/81 through 1987/88. The firm s greatest need for resources occurred during the first three years» as seen in the use of bank loans and loans from individuals and as seen in the major share of sales from cereals. During the period studied» coffee represented the largest share of sales, with an average of 71.67.. The principal components of expenses during this period were labor, purchased inputs, and costs of machinery, equipment and vehicles, which had an average share of 26.67.» 26.07.» and 14.57. respectively. Swings were detected in the net operating profits» ranging from a loss during the first year until the maximum value registered during the harvest of 1984/85; these variations being a function of the quantities sold and prices in effect. The financial Indices which were constructed indicated that the degree of debt declined from 20.787. in the first year to 1.17. in the last year studied, with an average of 10.027. The average index of fixed net worth for the period was 80.55% and the average index of general liquidity was 8.547. These results were evidence of the policies of growth and financial independence adopted by the firms. The index of rate of return to total value confirmed an annual average value of 13.867. for this period, which is above the value of indices for returns to agriculture in general and for beef production, these two being the only comparable Indices found. An average profit during this period was of 35.047.. The application of a Kanitz model for this enterprise showed that the degree of solvency was satisfactory for nearly the entire period. This study found evidence for the use of financial Indices in assessing enterprises in the rural sector and for the viability of investments in coffee production in the South of Minas.