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Abstract

More natural systems are added to conventional cage egg production systems, such as free-range egg production. To provide elements for making economic decisions, through the financial methodology of the discounted flow, the estimation of the gross profit margin and the calculation of average costs were to compare between a free-range farm with two conventional egg productions in the cage of different productive scale. The results obtained indicate higher average production costs for the free-range system up to 37.2 $ / Kg, which represents between 112 and 114 percent higher than the conventional systems, a deficiency that seems to be compensated by the sale price, which is between 75 and 116 percent higher than the conventional egg. The internal rate of return (IRR) was higher in all cases than the discount rate of 13 percent, and the net present value (NPV) was higher than zero, being higher in the larger conventional farm. It is recognized that the profitability of free-range farming goes hand in hand with the price premium that this type of egg reaches in the market.

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