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Feeding Systems with Legumes to Intensify Dairy Farms - cgiar

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production levels of 2,000 kg/lactation, the situation would have been even<br />

more viable.<br />

The MAG-WFP dairy development project in Nicaragua offers credits <strong>to</strong><br />

small milk producers at a real interest rate of 10% <strong>with</strong> a 5-year payback<br />

period, although the allowable maximum amount is up <strong>to</strong> US$3,000/farm.<br />

This was an excellent opportunity for small producers <strong>to</strong> adopt these new<br />

improved forage-based technological alternatives, which allow them <strong>to</strong><br />

significantly improve their competitiveness and income by reducing<br />

production costs.<br />

Cost (US$/kg)<br />

0.3<br />

0.25<br />

0.2<br />

0.15<br />

0.1<br />

0.05<br />

0<br />

1000 1500 2000<br />

Cost (kg/lactation)<br />

Jaragua + concentrate/chicken manure Brachiaria + Cratylia +sugarcane<br />

Jaragua + Cratylia + sugarcane Brachiaria + Arachis +Cratylia + sugarcane<br />

Figure 4. Milk production costs in Nicaragua, assuming the same herd size.<br />

Ex-ante analysis for Peru. The case of Pucallpa, Peru, is different from<br />

that of Costa Rica and Nicaragua. A characteristic of this region is the<br />

higher annual precipitation (2,000 mm vs 1,200 mm in Costa Rica and<br />

Nicaragua) and its more even distribution. In consequence, the dry season<br />

in Pucallpa is only 3 months long and not 6 months as in the case of<br />

Esparza (Costa Rica) and Esquipulas (Nicaragua). As a result, the climatic<br />

conditions in Pucallpa allow pastures <strong>to</strong> grow year-round.<br />

98

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