An evaluation of improved dairy feed adoption in Nicaragua

Gautam Kumaraswamy, Purdue University

Abstract

This thesis evaluates the adoption of three dry season improved dairy feeding technologies in Nicaragua using a technology stage model. Nicaragua's dairy productivity is one of the lowest in Central America and the feeding system is almost exclusively based on pasture. The adoption of improved dairy feed technologies is important in order to increase productivity and maintain the health of the herd during the dry season when pastures are depleted. The study uses field data collected from dairy farmers in the North Pacific, South Pacific and Central Regions in Nicaragua to test the impact of market participation and other factors on improved dairy feed adoption and its impact on dry season productivity. Homemade concentrate using sorghum was investigated as a rudimentary technology, while purchased concentrate and silage were investigated as advanced feed technologies. Descriptive data confirmed that the homemade concentrate technology had the smallest yield gains while the advanced feed technologies of purchased concentrate and silage resulted in higher yields. Econometric results indicate that market participation was positively associated with specialization in dairy production, years of experience, access to credit and a small farm size effect. There was strong evidence regarding the positive effect market participation has on adoption of the advanced feed technologies of purchased concentrate and silage among other factors influencing technology adoption. Propensity score matching results indicated positive returns for homemade concentrate use among farmers involved in mixed cropping-dairy systems. A positive and significant effect was found for purchased concentrate adoption, while silage use alone was found not to have a significant effect although there is some evidence that its combined use with purchased concentrate can improve yields considerably. Overall results show that policymakers can consider measures to increase farmers' participation in dairy markets in conjunction with research and extension efforts to diffuse new technologies to increase dairy productivity.

Degree

M.S.

Advisors

Sanders, Purdue University.

Subject Area

Agricultural economics|Latin American Studies

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