Using simulation models as a tool for promoting improved forages alternatives in Costa Rica and Peru

Objectives of the study were to show the benefits that can be obtained from using simulation models using as a case study the impact obtained from investing in improved forage alternatives on the cost of producing milk and its implications on technology adoption and land use sustainability in Costa Rica and Peru. The linear programming income maximization farm model used was developed by CATIE in Costa Rica and later expanded by CIAT using a electronic sheet in Excel. Animal management parameters were based on farm averages from the hillsides of the Central Pacific Region of Costa Rica and the forest margins of the Amazon in Peru. Likewise, the model incorporated prices of inputs and products typical of each region.Aconstant herd size was assumed for all alternatives evaluated. Milk production costs were estimated as the maximum expression of competitiveness using three parameters of productivity: current milk yield/cow/lactation (1,350 kg in Costa Rica and 800 kg in Peru); and two postulated parameters: 1,500 kg/L and 2,000 kg/L. Evaluated improved forages included grasses of the Brachiaria genus, sugarcane, and the legumes Cratylia argentea and Arachis pintoi. For all forage options the key factors analyzed were (1) cost of milk production as a result of investing in each forage technology, (2) the investment required to establish each option assuming the same herd size and fertility, (3) the feasibility of paying these investments with commercial credit, and (4) the percentage area on pastures which could be released for other alternative uses as a result of investing in these technologies. In addition, this study shows other uses of this farm model, such as scenarios where the dairy enterprise competes with other agricultural activities existing in the Central Pacific region of Costa Rica. Finally, the study makes reference to other simulation models existing on the market today with a brief summary of each one