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Feeding Systems with Legumes to Intensify Dairy Farms - cgiar

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income was approximately double the minimum wage in Peru and Costa Rica,<br />

but almost 3 times more that in Nicaragua.<br />

The profitability on invested capital during 1997 was very low in Costa<br />

Rica (1.37%), followed by Nicaragua (2.53%), and Peru (2.87%). The reason<br />

why Costa Rica obtained the least profitability despite having the highest<br />

family income and labor retribution was because the farms in Costa Rica have<br />

a high commercial value (US$280,000/farm) due <strong>to</strong> high land values, which is<br />

not the case for Peru or Nicaragua.<br />

Ex-ante analysis for Costa Rica. Figure 1 shows the production cost/kg<br />

milk for the different forage options. In Esparza (Costa Rica), the production<br />

cost using traditional pasture (Hyparrhenia rufa) makes it necessary for<br />

producers <strong>to</strong> supplement their milking herd during the 5-month dry season.<br />

With an average production of 1,350 kg/lactation, milk production costs were<br />

US$0.31/kg while the milk price received was US$0.28/kg. With the sale of<br />

weaned calves, an equilibrium was reached <strong>with</strong> a salary similar <strong>to</strong> the<br />

minimum wage.<br />

Cost (US$/kg)<br />

0.35<br />

0.3<br />

0.25<br />

0.2<br />

0.15<br />

1350 1450 1550 1650 1750 1850 1950<br />

Milk/lactation (kg)<br />

Jaragua + concentrate/chicken manure<br />

Jaragua + Cratylia + sugarcane<br />

Figure 1. Milk production costs of different forage feeding alternatives in<br />

Costa Rica, assuming the same herd size.<br />

94<br />

Brachiaria + Cratylia + sugarcane<br />

Brachiaria + Arachis + Cratylia + sugarcane

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