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.

Smallholders with dual-purpose cattle production systems in most Central America experience a shortage of forages during the dry season (4-8 month. As a result, substantially lower milk production and weight gain occurs. Dual-purpose operations seeking to maximize milk and beef production in the dry season can produce and feed hay or silage to their livestock. The increase in milk and beef production due to feeding hay or silage during the dry season on commercial dual-purpose cattle productions systems, the production costs of making silage or hay and the benefits as a result of feeding silage or hay are estimated and compared in Honduras and Costa Rica. Due to feeding silage or hay, farmers in Honduras and Costa Rica have increased milk production during the dry season. The costs of feeding hay are lower in both countries, although farmers feed a higher amount (kg DM/cow/day) than silage. Feeding silage or hay to milking cows is profitable in both countries. The income-cost ratio and the net benefit ($/cow/day) due to feeding these feedstuffs are positive. Farmers with milking cows in Honduras realise a higher income-cost ratio and net benefit due to feeding silage and hay than farmers in Costa Rica. Likewise, beef cows or young livestock supplemented with these feeding alternatives don't loose weight during the dry season. In Honduras as well in Costa Rica, it is profitable to feed silage or hay to beef cows or young livestock. Currently, no silage and a small hay market exist in Honduras. Possibly, these will develop due to an increasing demand for these profitable feedstuffs. In Costa Rica thanks to the efforts of agricultural organisations, a hay market of different qualities is developing.

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.

The objectives of this study were to: (a) estimate milk and beef yields obtained from cows grazing pastures in different stages of degradation; (b) estimate income losses as a result of the degradation process; (c) estimate the proportion of pasture areas found in each stage of degradation within the six administrative regions of Honduras; and (d) identify different strategies and costs to recuperate degraded pastures. Data came from two surveys executed during a workshop carried out in March 2004. The subjective perceptions of 25 livestock producers and 8 extension agents of the 6 administrative regions of Honduras were obtained to estimate the losses of animal productivity within the farm, region, and country. A 4-level scoring of pasture degradation was defined - where 1 was for the best condition (i.e., non-apparent degradation) and 4 was for the worst (i.e., severe degradation). Regressions, explaining the animal productivity losses at each level of pasture degradation, were generated according to the subjective and descriptive information. Comparing the perception of degraded areas, producers considered that in Honduras the extent of pasture degradation is lower compared with extension agents. According to producers, 29% of the pasture area in the country is at Level 1 (i.e., no degradation) compared with only 19% of extension agents. Moreover, producers perceived a lower proportion of pastures in severe degradation (i.e., Level 4, 27%) in comparison with almost 31% perceived by extension agents. In the intermediate degradation levels (i.e., Levels 2 and 3), both groups were similar. The country is forgoing milk and beef production due to the process of pasture degradation. According to estimations from producers, Honduras is loosing 284,106 tonnes of fluid milk and 48,271 tonnes of beef (live weight) annually for having pasture areas in Level 4 (i.e., severe degradation), equivalent to 48% of the annual production of milk and to 37% of beef. In economic terms, these losses in milk and beef yields are worth US$63 and US$48 million annually, respectively. The perception of extension agents is even more alarming. Honduras could produce 66% more milk and 50% more beef annually if livestock producers renovated their pastures before they reached level 4, equivalent to US$94 million in less revenues from milk sales and US$66 million from less beef sales. Both groups perceive that pastures, in an early stage of degradation (i.e., Level 2), are more economical, practical and rapid to recuperate. Also, as the process of degradation advances (i.e., to Levels 3 and 4), both cost and time of recuperating such pastures increase significantly. According to producers, the recuperation of a pasture from Level 4 to Level 1 costs $140/ha and takes almost a half year (i.e., 5.6 months). Extension agents estimate this cost of recuperation 27% higher ($178/ha) with 5% more time (i.e., 5.9 months). Producers perceive that grasses spend proportionately less time in going from Level 1 to 2 (i.e., 2.9 years) and as the process of degradation continues, pastures remain longer at advanced degraded levels (i.e., 3.1 years in going from level 2 to 3, and around 4.0 years in going from level 3 to 4). Moreover, producers think that the average productive life of improved grasses is about 10 years, while extension agents think that grasses degrade faster, with an average productive life of 8.4 years, 16% less than producers. According to producers and extension agents, pastures degrade at an annual rate of 10% and 12%, respectively. With these rates, Honduras would maintain its current level of degradation between levels 2.48 and 2.65. However, the renovation of pastures at an annual rate of 10-12% does not solve the problem, but maintains it. Producers argued that the current financial situation does not allow the necessary cash flow to renovate their plots, and the option of credit is not viable since real interest rates are high (ie., 10%). After simulating this scenario, it was demonstrated that farmers are able to generate the additional income necessary to pay a credit, but only if this credit is taken with interest rates similar to those found in the international market (ie., 3%). In order to eliminate the degraded areas found in Level 4 at the country level, it is necessary a one-time investment of $57 million according to producers and $84 million according to extension agents. The benefit obtained from this investment would result in a daily increase of 156,000 liters of milk and 26,500 kilograms of beef, equivalent to $22 millions/yr. Therefore, there are significant economic and productive incentives for the private and public sectors to develop and execute a plan of action to recuperate pasturelands in advanced stages of degradation.

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.