African Journal of
Agricultural Research

  • Abbreviation: Afr. J. Agric. Res.
  • Language: English
  • ISSN: 1991-637X
  • DOI: 10.5897/AJAR
  • Start Year: 2006
  • Published Articles: 6578

Full Length Research Paper

Technical and economic feasibility of biodiesel production by family farmers

Augustinho Borsoi1*, Reginaldo Ferreira Santos1, Carlos Eduardo Camargo Nogueira1, Deonir Secco1, Marco Antônio Abreu de Andrade2, Paulo Ricardo Lima3 and Poliana Ferreira da Costa3
1Post-Graduate Programs Masters in Energy in Agricultural - Universidade Estadual do Oeste do Paraná – UNIOESTE. Rua Universitária, 2069, CEP: 85.819-130, Bairro Faculdade, Cascavel/PR, Brazil. 2Agronomist, Instituto Paranaense de Assistência Técnica e Extensão Rural – EMATER, Corbélia/PR, Brazil. 3Post-Graduate Programs in Agronomy - Masters and Doctorate - Universidade Estadual do Oeste do Paraná – UNIOESTE.Campus Marechal Cândido Rondon/PR, Brazil.
Email: [email protected]

  •  Accepted: 24 September 2013
  •  Published: 31 October 2013

Abstract

The study aims to assess the economic feasibility of biodiesel production in association with others by family farmers in the town of Corbélia/PR. Biodiesel is presented as a partial alternative to socio-economic and environmental oil or total replacement of diesel oil, thus requiring studies on its economic viability. The work was developed through a case study to verify the economic feasibility of installing a biodiesel plant with other associations by family farmers. The raw materials used for oil extraction were soybean, sunflower and canola, depending on the meal being used in animal nutrition. Cash flows were developed, with the costs and revenues before and after installation of the project. From the cash flow, Net Present Value (NPV), internal rate of return (IRR) and payback period of capital (payback) were calculated. The IRR of the project was 49%, the NPV was US$ 32, 283, 35 and payback was 2.03 years. The combined production of biodiesel presented economic viability with interaction between the activities of the property.

​Key words: Association, farmers, bio-energy.