Preliminary economic study of alternatives of cow milk production

A selection of the milk production technologies most used in Cuba was assessed to estimate the main economic and financial indicators and determine the best alternatives according to the level of profitability in the current conditions of the Cuban cattle rearing. Fourteen technologies, designed from experimental results obtained at the Institute of Animal Science (ICA) and the Experimental Station of Pastures and Forages "Indio Hatuey" were selected. These technologies were based on pasture and forage intake and the use of Cuban by-products. Three groups were established according to the range of production (lower than 8 L/cow, 8-10 L/cow and more than 10 L/cow). The costs were considered and the fixed and variable expenses in the process of milk production were evaluated. The indicators cost/animal, cost/ha, cost/dollar invested and the ratio benefit/cost were estimated taking as currency pattern the American dollar (USD). The technique of multivariate analysis was used to determine the resemblance between the technologies studied. The technologies with systems of natural pastures, with productions lower than 8 L/cow, had a negative ratio income/expenses (lower than 1) and the use of protein banks raised the unitary costs of production up to 25 cents of dollar. Generally, the economic indices were satisfactory for the productive group between 8 and 10 L, although it was evidenced that, in the dry season, the cost/L was higher in one cent in the system with silage, compared to the price in foreign currency, established by the national dairy industry. The technologies of intensive type showed a better economic response in the system with fertilization and irrigation. In the dry season, lower costs/ha were recorded and the unitary with 22 cents did not produce losses or gains for the farmer. The results show the possibility of using different productive alternatives to guarantee satisfactory levels of production, with unitary costs lower than the price per kilogram of the imported milk. Further studies addressed to go deeper into the different factors affecting the competitiveness of milk production may be conducted to have more elements available leading to better economic and productive decisions.