Surveys were made of rural artisan cheese factories located in the region of Olancho, Catacamas, and Juticalpa in Honduras (n=10) and in Esquipulas and Muy-Muy in Nicaragua (n=13). The objective was to analyze the milk market of small rural artisan cheese factories in livestock watersheds of Honduras and Nicaragua to determine if there is a market for higher milk production; how much additional milk can the market absorb in each season of the year; there is a market for milk of higher hygienic quality. The main buyer of the milk from small and medium scale farmers in Honduras and Nicaragua is the rural artisan cheese industry, which absorbs almost 80% of the milk produced in both countries. Total milk production during the rainy season is about twice that during the dry season, causing an over-supply and scarcity of milk, respectively. The shortage of fluid milk during the dry season leads to an unsatisfied market. The artisan cheese factories in Honduras and Nicaragua would be willing to buy 76% and 55% more milk during the dry season, but this supply is not available due low milk productivity. This fact suggests that an aggressive program for the promotion of shrub legumes with sugarcane to supplement the herd during the dry season would have more impact that the promotion of grasses or legumes for the rainy season when there is little market for additional milk produced. In addition, rural artisan cheese factories in Honduras and Nicaragua, that consider the milk they collect is of bad quality, would be willing to pay a higher price if the option to collect milk of better hygienic quality exists. In Honduras this price would be about 9 % higher during the dry season and 11% higher during the rainy season. In Nicaragua the cheese factories would be willing to pay a milk price which is 17% higher, but only during the rainy season. As a result, large incentives exist in both countries to increase milk production during the dry season and to improve the hygienic quality of milk in the studied areas.

Objectives of this study were to compare costs and expected benefits of feed supplementation in cattle with alternative shrub legumes during the dry season using as a case study the hillsides of Central Nicaragua. The information used was gathered in a survey of 32 farms in the states of Boaco and Chontales in Central Nicaragua. The survey was designed to determine herd structure, land use patterns, milk and beef production, and use of inputs for animal nutrition, in order to estimate production, reproductive parameters and employment of family/contracted labor, as well as indicators of profitability of the alternatives under study. To calculate the economic return to the investment in alternative forages, a simulation model that applies optimization techniques through linear programming, implemented as a spreadsheet, was used to perform an ex ante evaluation of the costs and benefits of different land use alternatives and of interactions between technological components and biological productivity. The model compares the costs and benefits of the traditional feeding system versus an improved feeding system. The traditional system consists of grazing naturalized pastures (Hyparrhenia rufa) during the rainy season. In the dry season producers supplement the herd with small areas of king grass (Pennisetum spp.). The improved feeding system consists of establishing forage legumes for dry season feeding as a supplement to replace king grass during the dry season. Supplements to evaluate are the shrub legume Calliandra calothyrsus as partial replacement of the herbaceous high quality legume Vigna unguiculata, commonly known as Cowpea. Under the new feeding system, herd size can be increased by 60% due in part to the increase in stocking rate as well as to the increase in the quality of the diet offered with higher protein content. This increase in herd size raises both milk and beef output that generates an increase in farm income by 1.8 times more (i.e., from $1,314/farm/yr to $2,386). The economic return to family labor is increased by 20% to $ 5.26/day equivalent to 2.3 times higher than the local wage rate. The adoption of Vigna (Cowpea) after the harvest of maize/beans and a shrub legume as Calliandra to replace king grass seem to have the potential to significantly improve the productivity in smallholder farms. with the resulting increase in the economic return to family labor.

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.

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.

Livestock production plays a key role in tropical Latin America in a changing economic environment. This study focuses on documenting the transformations of extensive production systems by using superior forage germplasm supplied by regional research systems. The adoption of improved Brachiaria grasses was evaluated from 1990 to 2003 to estimate its impact in terms of animal productivity and income in Central America and Mexico. Information on seed sales in the local market made it possible to estimate the areas planted and the value of additional milk and beef production attributable to adoption. Mexico presents the highest volume of marketed seed and of area established with improved pastures. Among Central America countries, Costa Rica was outstanding in terms of the high volume of seed sold and the area planted, followed by Honduras, Nicaragua, and Panama. The annual growth rate of seed sales was very high during the study period, reaching 32% in Mexico, 62% in Honduras, 45% in Nicaragua, 39% in Costa Rica, and 54% in Panama. The area planted with Brachiaria species during this period totaled 6.5% of the total surface of permanent grasses in Mexico, 12.5% in Honduras, 1.0% in Nicaragua, 18.7% in Costa Rica, and 0.1% in Panama. Excluding Nicaragua and Panama, where adoption is low, Brachiaria grasses account for 24%-55% of total annual milk production and for 5%-18% that of beef. These figures clearly demonstrate that those adopting new Brachiaria cultivars are farmers mainly oriented toward milk production and, to a lesser extent, beef. In monetary terms, the value of additional production attributable to the adoption of Brachiaria grasses in the selected study countries was estimated at US$1084 million per year, 78% corresponding to milk and 22% to beef. Due to the magnitude of the livestock sector in Mexico, adoption generates slightly more than 80% of production profits. Study results indicate that the investment of public funds in Central America and Mexico to support the International Network for Evaluation Tropical Pastures (RIEPT, its acronym in Spanish) paid off in terms of adoption of improved grasses and significant increases in the supply of milk and beef, fundamental items in the diet of consumers from all income levels in the region.

Surveys were made of rural artisan cheese factories located in the region of Olancho, Catacamas, and Juticalpa in Honduras (n=10) and in Esquipulas and Muy-Muy in Nicaragua (n=13). The objective was to analyze the milk market of small rural artisan cheese factories in livestock watersheds of Honduras and Nicaragua to determine if: there is a market for higher milk production how much additional milk can the market absorb in each season of the year there is a market for milk of higher hygienic quality. The main buyer of the milk from small and medium scale farmers in Honduras and Nicaragua is the rural artisan cheese industry, which absorbs almost 80% of the milk produced in both countries. Total milk production during the rainy season is about twice that during the dry season, causing an over-supply and scarcity of milk, respectively. The shortage of fluid milk during the dry season leads to an unsatisfied market. The artisan cheese factories in Honduras and Nicaragua would be willing to buy 76% and 55% more milk during the dry season, but this supply is not available due low milk productivity. This fact suggests that an aggressive program for the promotion of shrub legumes with sugarcane to supplement the herd during the dry season would have more impact that the promotion of grasses or legumes for the rainy season when there is little market for additional milk produced. In addition, rural artisan cheese factories in Honduras and Nicaragua, that consider the milk they collect is of bad quality, would be willing to pay a higher price if the option to collect milk of better hygienic quality exists. In Honduras this price would be about 9% higher during the dry season and 11% higher during the rainy season. In Nicaragua the cheese factories would be willing to pay a milk price which is 17% higher, but only during the rainy season. As a result, large incentives exist in both countries to increase milk production during the dry season and to improve the hygienic quality of milk in the studied areas.