The economic effects of grazing in small-scale lamb fattening production systems in central México through a scenario analysis.

The objective was to assess grazing as an element of profitability and competitiveness of a small-scale lamb fattening production system in central México and compare its economic performance by means of an analysis of scenarios. Two scenarios were analysed to assess the contribution of grazing on profitability and competitiveness. The first analysis was when grazing was the feed base, and secondly, costs of opportunity and economic impacts were studied under the assumption that sheep do not graze, and total feed has to be bought from external suppliers. The economic effect of grazing on the profitability was analysed by means of the Policy Analysis Matrix. Differences were found between strata; farmers with more than 70 sheep have the best profitability indices and the least vulnerability under the non-grazing scenario. Grazing had a positive effect reducing the cost of production and increasing competitiveness in the four strata assessed. However, farmers with higher technical level, specialised breeds and larger flocks (strata 3 and 4) have higher economic profits. The conclusion was that the profitability in fattening sheep is linked to taking advantage of grazing. However, to keep and improve the current financial performance, there is a need for the adoption of strategies for an integral improvement of the system and the adoption of better grazing management to further reduce production costs.

Evaluation of comparative advantages in the profitability and competitiveness of the small-scale dairy system of Tulancingo Valley, Mexico.

This article combines a Policy Analysis Matrix with a sensitivity and poverty line analysis with the objective of evaluating the economic contribution of comparative advantages to the private profitability and competitiveness of small-scale dairy systems. For 1 year, socioeconomic data were collected from 82 farms selected from four strata via statistical sampling. Two scenarios were established to determine the quantitative contribution of comparative advantages: (1) a simulated scenario, which accounted for the cost of purchasing the total food and the opportunity cost of the family labour force (FLF), and (2) an actual production scenario, which accounted for the cost of producing food and eliminating the payment of the FLF and included other income. The E3 and E4 producers were the most profitable and competitive in the simulated scenario and actual production scenario. Of the four scales evaluated, the E2 and E1 producers were the most efficient in taking advantage of the economic contribution provided by the comparative advantages in their own production of food and employment of the FLF, in addition to accounting for other income, a condition that increased their profitability by 171 and 144% and competitiveness by 346 and 273%, respectively. The poverty results indicated that only E3 and E4 producers were non-vulnerable in the simulated scenario and actual production scenario. The purchase of food was the comparative advantage with the greatest sensitivity to cost increases in the two scenarios analysed, which exacerbated the effect on the E1 and E2 producers.

Assessment of the sustainability of dual-purpose farms by the IDEA method in the subtropical area of central Mexico.

The objective of this study was to assess the sustainability of 10 dual-purpose cattle farms in a subtropical area of central Mexico. The IDEA method (Indicateurs de Durabilité des Exploitations Agricoles) was applied, which includes the agroecological, socio-territorial and economic scales (scores from 0 to 100 points per scale). A sample of 47 farms from a total of 91 registered in the local livestock growers association was analysed with principal component analysis and cluster analysis. From results, 10 farms were selected for the in-depth study herein reported, being the selection criterion continuous milk production throughout the year. Farms had a score of 88 and 86 points for the agroecological scale in the rainy and dry seasons. In the socio-territorial scale, scores were 73 points for both seasons, being the component of employment and services the strongest. Scores for the economic scale were 64 and 56 points for the rainy and dry seasons, respectively, when no economic cost for family labour is charged, which decreases to 59 and 45 points when an opportunity cost for family labour is considered. Dual-purpose farms in the subtropical area of central Mexico have a medium sustainability, with the economic scale being the limiting factor, and an area of opportunity.

Socioeconomic and productive characterization of dual-purpose farms oriented to milk production in a subtropical region of Mexico.

The aim of this study was to determine the socioeconomic, production characteristics and milk production cost of dual-purpose farms (DPF) oriented to milk production in a subtropical region of Central Mexico. The study focused on ten DPF that produce milk all year round, to gather socioeconomic characteristics of farmers (age, family structure, education level), farm resources (land holding, herd structure, infrastructure, management) and economic information during the year 2008. Family labour (FL) covers 66% of labour needs. The average milk production cost was US$0.21, fluctuating from US$0.19 to US$0.31 during the rainy and dry season, respectively. Supplements and hired labour (HL) accounted for 48 and 35% of milk production cost, respectively. Milk production generated daily incomes that covered daily operation costs of farms, as well as the economic needs of the farming family. Calves represented important incomes that ranged between 30 and 50% of total annual farm incomes, cashed in once or twice a year. Milk production provides economic stability to DPF, whereas FL and low input use are key elements that allow low costs in the production of milk and calves in DPF in Central Mexico.

Marketing of meat sheep with intensive finishing in southern state of Mexico.

The objective of the present study was to quantify the marketing margins of cold sheep carcass and barbacoa meat in the southern state of Mexico. Data were obtained from the production chain links (production, industrialization, and marketing) where the marketing margins were calculated along with the benefit/cost (B/C) ratio. In the absolute marketing margin of the final consumer price per kilogram of carcass meat, the producer obtained US$2.7/kg (47 %) of the utilities, while the intermediaries obtained US$3.1/kg (53 %). Considering the final cooked product in barbacoa (typical dish), the margin was US$6.3/kg (29 %) for the producer and US$15.2/kg (71 %) for the intermediaries. The B/C ratio was 1.0, 1.1, 2, and 1.3 for the producer, stocker, butcher, and barbacoa seller, respectively. It is concluded that the best marketing channel for the producer was the producer-stocker-processor (butcher and barbacoa seller). The highest marketing margin was for the intermediaries followed by the producer. The order of importance of the B/C kilogram ratio of meat was for the butcher first, then barbacoa seller, and lastly stocker and producer.