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Feeding Systems with Legumes to Intensify Dairy Farms - cgiar

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Table 3. Direct production costs, gross income, net cash flow, and family labor<br />

retribution in dual-purpose systems in Peru, Costa Rica, and<br />

Nicaragua.<br />

Variable Peru Costa Rica Nicaragua<br />

Direct production cost (US$/farm per year)<br />

(n=9) (n=7) (n=4)<br />

Hired labor 257 5,586 1,155<br />

Family labor 1,606 3,212 630<br />

Total permanent labor (no./farm) 1.16 2.74 2.83<br />

Animal supplementation 683 2,848 2,205<br />

Animal health 784 224 390<br />

Maintenance infrastructure & equipment 727 1,617 817<br />

Others 318 549 427<br />

Total 4,375 14,036 5,624<br />

Cost/kg of milk 0.29 0.23 0.20<br />

Cost of labor as % of <strong>to</strong>tal 43 63 32<br />

Gross income (US$/farm per year) 6,018 17,856 6,759<br />

Milk-derived income 3,643 13,572 5,019<br />

Sale of culled cows 970 1,490 760<br />

Sale of calves<br />

Net cash flow<br />

1,405 2,794 980<br />

US$/farm per year 1,643 3,820 1,135<br />

US$/ha per year 29 49 23<br />

US$/cow per year 54 81 39<br />

Retribution <strong>to</strong> family labor (US$/day) 8.90 19.27 4.83<br />

Number of times minimum wage 2.02 2.19 2.76<br />

Annual profitability on invested capital (%) 2.87 1.37 2.53<br />

Production costs in Pucallpa, Peru, are high and above the international<br />

price of milk (US$2,000/t, equivalent <strong>to</strong> 130 g of powdered milk/liter of fluid<br />

milk, or US$0.26/kg fluid milk), mainly because of the low milk yields/cow<br />

(3.0 kg/cow per day) and the small proportion of milking cows (41.5%)<br />

regarding its counterparts in Costa Rica and Nicaragua.<br />

Regarding gross sales, most come from milk (60% in Peru, 76% in Costa<br />

Rica, and 74% in Nicaragua). The rest of income is represented by the sale of<br />

weaned calves and culled cows.<br />

Estimated monthly family income was US$270 for Pucallpa (Peru),<br />

US$586 for Esparza (Costa Rica), and US$147 for Nicaragua. However, this<br />

93

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