FARM-LEVEL TRADE-OFFS OF INTENSIFYING TROPICAL MILK-PRODUCTION

This research examines trade-offs between costs and production practic es of intensification of milk production in highland Costa Rica. We id entify bottlenecks to intensification and how they affect choices betw een more and less sustainable practices. To this end, we constructed a linear programming model of a highland dairy farm to simulate farmer decision making. Six models for three farm sizes are constructed from data collected via a 1990 survey and published material on nutritional requirements and forage yields. Significant economic and environmenta l trade-offs are found in response to low labor productivity or availa bility, and tow protein content of forages. Costs are the focus on the economic side while on the environmental side, intensification, incen tives to deforest, use of cut feed versus more erosive pasture, and ma nure versus chemical fertilization are examined. Land intensification is not economic unless researchers can provide labor-saving devices ap propriate for small farms or improve protein content of forages. Anoth er finding is that dry season milk production costs farmers in the reg ion 1.1 to 3.4 colones more per kg than rainy season production (3.3% to 13.6%, depending upon the price received for milk). Expanding stora ge facilities would cost the processing plant less than paying farmers a two colones premium for year-round production. Since the value of l and for producing milk exceeds clearing costs in nearly all models, co mpliance with land use controls to improve environmental sustainabilit y is unlikely. Finally, targeting input and credit subsidies to inputs which improve labor productivity and encourage environmentally sustai nable practices would mitigate economic and environmental trade-offs i n milk production.