Abstract

ROMO BACCO, Carlos Eduardo et al. Gaps in economic profitability among small-scale dairy farms in the Mexican Highland Plateau. Rev. mex. de cienc. pecuarias [online]. 2014, vol.5, n.3, pp.273-290. ISSN 2448-6698.

Between large and small-scale dairy farms (SSDF) there are gaps in economic profitability (EP) due to significant scale economies, but also can be found within the small-scale stratum, hindering the technological advancement and milk production sustainability. The aim was to identify the presence of EP gaps and relate them to productive factors in SSDF. Eighty nine owners were interviewed (2011) in SSDF located in the Mexican Highland Plateau (Valley of Aguascalientes), recorded in the SAGARPA Program for Technical Training and Assistance (sample: 95% confidence and 10% accuracy; SSDF with <50 cows and <10 employed persons, E; 162 variables). The net cost-benefit ratio (NCB), value-added (VA) and factors that influenced the existence of surplus (NCB >1.0) were calculated on annual basis. Only one of five SSDF had surplus results (17/89=19.1%; CI95%: 14.9, 23.3 %), directly associated (P<0.05) with higher total income, VA, E, salaries for family members, cows by E, sales prices and feed cost; and inversely with lower cost of inputs, proportion of milk for family use and total value of assets and livestock. Other variables were not significant or correlated and were considered collinear. The family labor (2.2 E/SSDF) predominated (85.4 %) but did not significantly influence the NCB (P=0.787). In addition, farmers who were organized had better outcomes (P<0.05) than those who remained isolated (NCB>1.0: 7/20 vs 10/69). These results suggest that public and private policies could focus their efforts to bridging the PE gaps between SSDF, improving the reach of technical potential for milk production, trading strategies, employment, and natural resources preservation.

Keywords : Sustainability; Competitiveness; Productivity; Efficiency; Economic break-even point.