Feeding Systems with Legumes to Intensify Dairy Farms - cgiar

Resource prices and capital investment. Table 2 shows resource
prices and capital invested in dual-purpose systems in each country. The
farmgate price of milk differs broadly among countries, ranging from
US$0.22/kg in Esquipulas, Nicaragua, to US$0.32/kg in Pucallpa, Peru. The
price in Costa Rica is intermediate between both the above prices:
US$0.28/kg. The milk price received in Peru and Nicaragua is for raw milk
while the price received in Costa Rica is for milk cooled to 5 ˚C on the farm,
which makes it a better quality product.
Table 2. Resource prices and capital invested in dual-purpose farms in Peru,
Costa Rica, and Nicaragua.
Variable Peru Costa Rica Nicaragua
Prices (US$)
(n=9) (n=7) (n=4)
Milk (/kg) 0.32 0.28 0.22
Beef (/kg cull cows) 0.60 0.60 0.50
Labor (/day) a 4.40 8.80 1.75
Land (/ha) 200 2,364 347
Pasture rental (/cow per month) 3.00 4.30 3.00
Cow (/unit) 500 550 350
Heifer (/unit) 450 500 250
Weaned calf (/unit) 150 170 100
Bull (/unit) 700 700 600
Establishment of improved grass (/ha) 250 270 225
Establishment of Arachis with grass (/ha) 340 370 310
Establishment of Stylosanthes (/ha) 150 165 150
Establishment of Cratylia (/ha) 400 420 390
Establishment of sugarcane (/ha) -- 550 500
Invested capital (US$/farm)
Land 15,244 216,522 18,287
Livestock 29,561 42,260 18,538
Shed, corral, and equipment 2,000 12,896 2,125
Improved pasturesb 1,050 1,175 1,372
Fencesc 4,752 6,822 4,597
Total 53,147 279,675 44,919
a. Includes social benefits estimated at 24% for Peru, 43% for Costa Rica, and 17% for Nicaragua.
b. Invested capital is estimated at 50% of establishment cost multiplied by the area under improved
pastures on each farm.
c. An average of 5280 lineal meters for the farms in Pucallpa, 7580 lineal meters for farms in Costa
Rica, and 5108 lineal meters for the farms in Nicaragua, with an average investment of
US$$0.90/lineal meter with four strands of wire separated by posts spaced every 3 m.
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