Economics analysis of milk production in farms located in the central region of Chile

Arturo Campos M.1, Alfredo Beck V.2, Sergio Hausdorf R.3

An ecomonic analysis was conducted during 1990/91 in four milk production farms in the central region of Chile. AII the farms were under irrigation conditions. The data obtained show that milk production is mostly based on alfalfa and maize for silage. It was observed that alfalfa pasture used in animal feeding determined lower milk production cost. Milk productivity per hectare reached 7.077, 18.351, 7.430 and 14,169 L, for cases 1, 2, 3, and 4, respectively. Gross margins per cow reached values, in thousand of pesos, from 166.3 to 247.1 whereas gross margin per hectare from 215.7 to 580.4. Profitability measured on total capital invested for milk production varied from 5% (Case 3) to 14.9% (Case 2).

Keywords: milk production, milk production economics.
1 Centro Regional de Investigación La Platina (INIA), Casilla 439, Correo 3, Santiago, Chile.
2 Universidad Austral de Chile, Casilla 542, Valdivia, Chile.
3 Ingeniero Agrónomo, Actividad privada.