A Simulation-Based Economic Analysis of Plastic Flooring as an Alternative to Traditional Broiler Bedding

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Abstract
This study aimed to analyze the economic viability of replacing sawdust and rice husk bedding with plastic flooring in broiler chicken production, using simulation methods. The viability indicators used were the net present value (NPV), internal rate of return (IRR), modified internal rate of return (MIRR), profitability index (PI), discounted payback period (DPP), and equivalent uniform annual value (EUAV). Scenario analysis, sensitivity analysis, and Monte Carlo simulation were conducted in this study. The results revealed that the initial investment required to implement plastic flooring was R$ 350,000.00. The average price paid for the manure produced was R$ 250.00 per ton, which was converted into revenue in the project’s cash flow. The cash flow result was positive, with an NPV of R$ 64,786.23 over the entire study period. The IRR was 18.5% per annum, and the MIRR was 16.7% per annum, confirming the project’s economic viability given the market conditions at the time of the study. The profitability index (PI) was 1.35, indicating high profitability, whereas the discounted payback period (DPP) was 4.5 years, indicating an adequate time to recover the investment. The Monte Carlo simulation highlighted a low risk of negative NPV, emphasizing the project’s economic robustness. In addition to the economic benefits, the adoption of plastic flooring improved hygiene and welfare, reduced waste production, and enhanced the sustainability of poultry production. These factors make replacing flooring with plastic a promising choice for poultry producers with the Sustainable Development Goals. Therefore, replacing conventional bedding with plastic flooring in broiler production is economically viable, improving profitability and promoting sustainability in poultry production.
Funding Information
  • Conselho Nacional de Desenvolvimento Científico e Tecnológico (304806/2022-6)
  • Conselho Nacional de Desenvolvimento Científico e Tecnológico (150249/2023-3)

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