Economic analysis of low-temperature grain drying

Abstract

The main objective of this study was to simulate the economic feasibility of low-temperature grain drying systems considering Brazilian conditions and using three drying capacities, seven grain types and two furnace fuels. For this, 42 scenarios were simulated and compared among themselves by using an economic analysis based on the cash flow model with project lifetime of 20 years. The indices net present value, payback period, benefit-cost ratio and internal rate of return were applied during the analyses. Simulations showed that drying of coffee and beans in large systems presented higher economic feasibility, regardless of the furnace fuel used. All simulated scenarios were cost-effective provided that at least two drying cycles are performed per year. Labor costs, social taxes, grain type and drying capacity most affected the profitability of this kind of investment, while the furnace fuel less influenced the evaluated economic indices.