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Ex-ante evaluation of forage technologies in Peru, Costa Rica, and Nicaragua

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Title Ex-ante evaluation of forage technologies in Peru, Costa Rica, and Nicaragua
 
Creator Holmann, Federico J.
 
Subject FEEDS
ANIMAL FEEDING
 
Description The objective was to perform an ex-ante economic evaluation of new, legume-based forage alternatives available to farmers in Latin
American tropical lowlands. These alternatives included grasses of the Brachiaria genus and the legumes Stylosanthes guianensis,
Cratylia argentea, and Arachis pintoi. Case studies, involving farmers participating in the CIAT-led Tropileche Consortia convened
by ILRI, were conducted in the forest margins of Pucallpa (Peru) and in the hillsides of the dry tropics of Esparza (Costa Rica) and
Esquipulas (Nicaragua). A linear programming farm model developed by CIAT to maximize income was used for this analysis.
Animal management parameters were based on farm averages at each reference site evaluated so that they represented current
management conditions. Similarly, the model incorporated the prices of inputs and products typical of each country. A constant herd
size was assumed for all alternatives evaluated. Production costs per kilogram of milk were estimated as the maximum expression of
competitiveness, using three cow productivity parameters: the current average production per lactation (800 kg in Peru, 1,000 kg in
Nicaragua, and 1,350 kg in Costa Rica); and two postulated parameters: 1,500 kg/lactation and 2,000 kg/lactation. For all forage
options, key factors analyzed were (1) milk production costs resulting from implementing each forage alternative; (2) the investment
required to establish each option, assuming the same number of milking cows and herd fertility; (3) the feasibility of obtaining credit
with a local bank to invest in a forage alternative; and (4) the percentage of pasture area on the farm freed for other uses as a result of
establishing one of the forage alternatives.
Results indicated that the forage alternatives evaluated significantly improved the competitiveness of dual purpose farms in the
hillsides of Nicaragua and Costa Rica, reducing the cost of producing milk between 13% and 37% with increased stocking rates,
releasing up to 36% of area allocated to pastures. However, under current commercial banking conditions (real interest rates of 13% in
Costa Rica and 18% in Nicaragua with payback periods of 5 years), the implementation of the options evaluated were not financially
viable except for the establishment of Cratyla with sugarcane for dry-season feeding and Stylosanthes for pre-weaned calves. For all
options to be implemented with commercial credit, a longer payback period was needed (8-10 years) and lower real interest rates
(5-10%). The case of the forest margins of Pucallpa, was different, as none of the forage options evaluated, except Stylosanthes for
pre-weaned calves, improved the competitiveness of farms under current management and production conditions due to low milk
yields per cow and low proportion of herd in milk, which increased depreciation cost/cow to levels which were not viable. In addition,
Pucallpa has an excess supply of forage biomass from a reduced herd inventory during the 80s and a limited fresh milk market which
makes adoption of improved forages low attractive by farmers.
 
Date 2010-05-11T17:43:20Z
2010-05-11T17:43:20Z
1999
 
Type Journal Article
 
Identifier Holmann, F. 1999. Ex-ante evaluation of forage technologies in Peru, Costa Rica, and Nicaragua. Journal of Livestock Research for Rural Development. 11(3): 1999
https://hdl.handle.net/10568/1508
 
Language en
 
Source Journal of Livestock Research for Rural Development