The chicken production in Viçosa area is done by integration agreement with Pif Paf Company and it is an important option for increasing the income of small farmers. The objective of this paper is to check the viability of integration agreements. A project of a plant for chicken production was drawn and observed in order to determine its profitability and risks, with the purpose of helping the decision making. The Net Present Value, Internal Rate of Return, Cost/Benefit Ratio, Risk Sensitivity and Risk Analysis were calculated. The results show that the project is feasible and the profitability is more sensitive to changes in production price than changes in production costs. This study also points out that the integration agreement does not eliminate the risk of the production, in other words, the company transfers part of the price risk to the producers.
chicken production; risk analysis; integration agreement; Viçosa area
