The Cost Of Production And Profitability In The Agricultural Sector

Abstract

The cost of production in the agricultural sector is a determining factor in profitability, because it encompasses a wide range of inputs, such as seeds, fertilizers, pesticides, labor, machinery, energy and maintenance. These costs are subject to various external influences, such as the volatility of international prices, weather conditions and government regulations. This article aims to explore the relationship between production costs and profitability in the agricultural sector, focusing on the variables that most influence operating costs and the strategies that farmers can adopt to optimize them. A quantitative and qualitative methodological approach is used, and the cost reduction strategies implemented by different types of producers, from small farmers to large agro-industries, and their impact on profits are analyzed. In addition, the dependence on advanced technologies to improve efficiency in agricultural production has increased the initial investment for many farmers, especially small farmers, who face greater difficulties in accessing technological innovations. Managing these costs has become essential in a context of competitive global markets and growing demand.