Feeding Systems with Legumes to Intensify Dairy Farms - cgiar
Feeding Systems with Legumes to Intensify Dairy Farms - cgiar
Feeding Systems with Legumes to Intensify Dairy Farms - cgiar
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The price of beef (as culled cows) was similar in Peru and Costa Rica<br />
(US$0.60/kg LW), but lower in Nicaragua (US$0.50/kg LW). However, the<br />
price of the animals was higher in Costa Rica, followed by Peru. Nicaragua<br />
had the lowest prices for beef and live animals for all categories.<br />
The labor cost also differs dramatically among countries, ranging from<br />
US$1.75/day in Nicaragua <strong>to</strong> US$8.80/day in Costa Rica, including social<br />
benefits. These differences in labor cost affect the establishment cost of forage<br />
alternatives most, which are higher in Costa Rica and lower in Nicaragua.<br />
Similarly, the commercial value of land also contrasted, ranging from<br />
US$200/ha in Pucallpa, Peru, <strong>to</strong> US$2,364/ha in Esparza, Costa Rica. The<br />
main reason for this contrast lies in the high level of public infrastructure and<br />
proximity <strong>to</strong> markets found in Costa Rica, as well as its long social and<br />
economic stability compared <strong>with</strong> Pucallpa (Peru) or Esquipulas (Nicaragua).<br />
All fac<strong>to</strong>rs indicated above contribute <strong>to</strong> a higher capital investment per<br />
farm in Costa Rica, <strong>with</strong> a commercial value of US$280,000/farm, compared<br />
<strong>with</strong> an average value of US$53,000/farm in Peru and US$45,000/farm in<br />
Nicaragua. Of these figures, land and lives<strong>to</strong>ck are the main investment in all<br />
countries. Therefore, the value of land accounts for 77% of the capital<br />
invested in Costa Rica, 44% in Nicaragua, and 28% in Peru, while lives<strong>to</strong>ck<br />
represents 15% in Costa Rica, 41% in Nicaragua, and 56% in Peru.<br />
Production costs and income. Table 3 presents an estimate of direct<br />
production costs (variable + cash costs) during 1997, gross income, net cash<br />
flow, and current profitability on invested capital. Labor cost is the most<br />
important production cost in Peru (43%) and Costa Rica (63%), and the<br />
second most important in Nicaragua (32%). This category includes family<br />
labor valued as minimum wage. The second most important category is<br />
supplementation costs, except in Nicaragua, where it was the most important<br />
cost.<br />
Total production cost of milk differed significantly in the three countries,<br />
ranging from US$0.20/kg in Esquipulas (Nicaragua) <strong>to</strong> US$0.23/kg in<br />
Esparza (Costa Rica) <strong>to</strong> US$0.29/kg in Pucallpa (Peru). The principal reason<br />
for the low production cost in Nicaragua is because labor cost is 5 times lower<br />
than in Costa Rica and 2.5 times lower than in Peru.<br />
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