Dairy development in Costa Rica: a case study
Costa Rica, located in Central America, enjoys a variety of tropical ecosystems; specialized dairying is concentrated in the highlands while dual-purpose cattle systems are common in the lowlands. Costa Rica was a net importer of milk until 1985. In 1977, to help reduce its milk deficit, the government supported dairy development in the lowland tropics, providing incentives to settlers. Appropriate and relatively intensive pasture-based technology was developed and transferred. The success of this program led to the enactment of a national dairy development program in 1982, reaching out the small-and medium-size farmers with a view of achieving self-sufficiency in dairy products. This goal was achieved in 1986. In fact, the country now faces the problem of disposing a small surplus in the international market. The country possesses 34,469 dairy and dual-purpose farms producing a total of 523 million kilograms of fluid milk. The production cost per kilogram is USD 0.251, of which labor accounts for 33 percent (labor is USD 1.25 per hour and has been increasing at a rate of 2.5 percent per year). As the farmer is paid USD 0.29/kg, his profit is 16 percent. In terms of powdered milk, Costa Rican milk is priced at USD 2600/MT while in the international market this products is only USD 1900 CIF in Costa Rica. This difference has been offset by a protective tariff of 111 percent. As the GATT Uruguay Round accords take effect, the international price should go up by about 20 percent, still far less than the internal price; thus, three scenarios are given in light of upcoming international events: (1) maintaining a high protective tariff; (2) reducing it, as well as the price paid to the producer; and (3) eliminating the tariff. These situations and their implications are discussed.
| Main Authors: | , , , |
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| Format: | biblioteca |
| Published: |
San José (Costa Rica)
1994
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| Subjects: | PRODUCCION LECHERA, SISTEMAS DE EXPLOTACION, POLITICA DE DESARROLLO, ESTUDIOS DE CASOS PRACTICOS, COSTA RICA, |
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