Abstract
Two meat production systems based on cattle grazing stargrass pastures under two fertilization levels were evaluated to determine which production system, stocking rate level, and selling time could be better used under different price scenarios to achieve maximum economic returns. Based on the findings of R. J. Jones and R. S. Sandland and other authors, it was assumed that the relationship between stocking rate and animal weight gain can be best represented by a simple linear model of the form y = a -bx over a wide range of stocking rates. To determine the equation parameters each system was grazed at three stocking rates and the straight line equation fitted at different periods. The price scenario prevailing at the conclusion of the study favored the utilization of the low fertilization system with a stocking rate close to 3.8 animals per hectare and selling the animals after 10 to 11 grazing months. This stocking rate should be lowered to 3.6 animals per hectare if a minimum finishing weight of 454 kg is required because of a 5% price discount for lighter animals. However, improvement on the price spread between animal purchase and selling price, or relatively sharp increase in meat price in relation to the fertilizer price could justify the utilization of the more capital intensive high fertilizer system. The selection of a particular production system and stocking rate should not be made independently of the current price levels since the latter will ultimately determine the success and failure of the system.