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Feeding Systems with Legumes to Intensify Dairy Farms - cgiar

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significantly higher than that obtained at Level 2 (US$4,044/farm per year).<br />

As a result, even though the investment <strong>to</strong> reach this level of adoption is<br />

high, so is the potential benefit regarding the other two countries.<br />

As in Costa Rica and Honduras, milk production cost and net income/<br />

cow and per hectare in Nicaragua at Level 3 were similar <strong>to</strong> those of Level 2;<br />

however, net income/farm increased by 85% because of the increase in herd<br />

size.<br />

Regional Benefit Analysis<br />

Table 8 presents the area under pasture, the number of lives<strong>to</strong>ck<br />

producers, and the lives<strong>to</strong>ck population located in the dry tropics of each<br />

region where the germplasm validated by the Tropileche Consortium could<br />

be successfully replicated. Table 9 shows the potential benefits of new<br />

forage germplasm for each level of adoption, assuming these are effectively<br />

adopted in accordance <strong>with</strong> the data reported in Table 8.<br />

Table 8. Characteristics of dual-purpose farms in the dry tropics of Costa<br />

Rica, Honduras, and Nicaragua and adoption potential of new forage<br />

germplasm (Tropileche Consortium).<br />

Characteristic Costa Ricaa Hondurasb Nicaraguac Area in pasture (ha) 528,254 364,852 819,590<br />

Producers (no.) 18,768 18,722 21,447<br />

Cattle population (no. of cows) 167,323 133,642 320,380<br />

SOURCES: a = SEPSA, 1990; b = Dirección General de Estadísticas y Censos, 1998;<br />

c = MAG, 1999.<br />

Level 1. This level of adoption had the largest impact on the situation<br />

of farmers because large increases in net income/cow per year were<br />

obtained (from US$31 <strong>to</strong> US$94) <strong>with</strong> small investments per cow (between<br />

US$16 and US$38). Cash flow increased <strong>with</strong> the substitution of purchased<br />

feed supplements <strong>with</strong> improved germplasm.<br />

The investment required in each region ranged from US$2.7 million in<br />

Honduras <strong>to</strong> US$6.4 million in Costa Rica. This investment was<br />

represented by the establishment of new areas under improved forages, and<br />

estimated on the basis of the cost of each forage alternative (Table 9).<br />

The analysis of benefits, in terms of annual net income in cash for<br />

farmers in the region, increased from US$9.9 million <strong>to</strong> US$12.6 million,<br />

which surpassed the one-time investment required every 10 years. The<br />

payback period necessary <strong>to</strong> return the investment <strong>with</strong> the marginal<br />

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