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Contribution of family labour to the profitability and competitiveness of small-scale dairy production systems in central Mexico

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Abstract

The objective of this work was to determine the effect of family labour on the profitability and competitiveness of small-scale dairy farms in the highlands of Central Mexico. Economic data from 37 farms were analysed from a stratified statistical sampling with a Neyman assignment. Three strata were defined taking herd size as criterion. Stratum 1: herds from 3 to 9 cows plus replacements, Stratum 2: herds from 10 to 19 cows and Stratum 3: herds from 20 to 30 cows. The policy analysis matrix was used as the method to determine profitability and competitiveness. The coefficient of private profitability (CPP) when the economic cost of family labour is included in the cost structure was 8.0 %, 31.0 % and 46.0 %. When the economic cost of family labour is not included, CPP increase to 47.0 %, 57.0 % and 66.0 % for each strata, respectively. The private cost ratio (PCR) when family labour is included was 0.79, 0.51 and 0.42 for strata 1, 2 and 3, respectively. When family labour is not included, the PCR was 0.07, 0.25 and 0.26. Net profit per litre of milk including family labour was US$0.03 l-1 for Stratum 1, US$0.09 for Stratum 2 and US$0.12 l-1 for Stratum 3; but increased to $0.12, 0.14 and 0.15, respectively, when the economic cost of family labour is not included. It is concluded that family labour is a crucial factor in the profitability and competitiveness of small-scale dairy production.

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Acknowledgments

The authors are very grateful to the 37 small-scale dairy farmers from the district of Texcoco participating in this work for sharing their experience and enabling this study. This study was funded by Universidad Autónoma del Estado de México (UAEM) through grant 2892/2010. Our gratitude also to the Consejo Nacional de Ciencia y Tecnología (CONACYT) of Mexico for the grant for the doctoral studies of Rodolfo Rogelio Posadas Domínguez.

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  1. Instituto de Ciencias Agropecuarias y Rurales (ICAR), Universidad Autónoma del Estado de México (UAEM), Instituto Literario # 100, 50000, Toluca, Estado de México, México

    Rodolfo Rogelio Posadas-Domínguez, Carlos Manuel Arriaga-Jordán & Francisco Ernesto Martínez-Castañeda

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  1. Rodolfo Rogelio Posadas-Domínguez
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  2. Carlos Manuel Arriaga-Jordán
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  3. Francisco Ernesto Martínez-Castañeda
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Correspondence to Francisco Ernesto Martínez-Castañeda.

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Posadas-Domínguez, R.R., Arriaga-Jordán, C.M. & Martínez-Castañeda, F.E. Contribution of family labour to the profitability and competitiveness of small-scale dairy production systems in central Mexico. Trop Anim Health Prod 46, 235–240 (2014). https://doi.org/10.1007/s11250-013-0482-4

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