Thesis by Alexis Homero Villacís Aveiga
“Results indicate that there are large returns per dollar spent and susbstantial benefits to consumers, processors and producers. Results also show that the adoption of these new technologies represents advantages in production costs of milk in each farm size. These cost savings per bottle are very small individually but when aggregated over the whole national milk production these are large changes and have helped keep milk prices down.”
To learn more about INTSORMIL’s work on the introduction of new sorghum cultivars into the dairy industry of El Salvador click here.
Thesis by Gabriel Garcia Gomez
Gabriel did a similar analysis also showing benefits for all farm sizes and a concentration of benefits for consumers. Rates of return are not as high as government kept on price ceilings and even imported large quantities of milk powder last year. Lower rates of return in Nicaragua and not as much progress in dairy production. Productivity in dairy in Nicaragua about 1/3 that of El Salvador. Since the principal beneficiary of dairy productivity increase is consumers, governments need to encourage productivity and not press so hard to keep prices low and thereby discourage productivity growth. John will write a journal article on this subject.