Returns to the introduction of new sorghum cultivars into the dairy industry of El Salvador

Alexis Homero Villacis Aveiga, Purdue University

Abstract

The returns to the introduction of new photo-insensitive sorghum varieties into the dairy industry were analyzed to determine changes in the welfare of consumers, processors, producers and the society. The economic surplus method was used along with a survey data of a stratified sample of 150 farms conducted in 2011 in El Salvador. Results indicate that there are large returns per dollar spent and substantial 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.

Degree

M.S.

Advisors

Sanders, Purdue University.

Subject Area

Agricultural economics

COinS