Feasibility and competitiveness of intensive smallholder dairy farming in Brazil in comparison with soya and sugarcane: Case study of the Balde Cheio Programme

Abstract

a b s t r a c tTechnology introduction and the intensive use of resources, particularly in smallholder farming systems, are at the core of debates about future food security and sustainable livelihoods. In Brazil, land use changes promoted by competing agricultural chains require a search for alternative modes of production for family farms. We analyse the technical and economic viability of intensification of dairy farming by smallholders in the ''Balde Cheio'' (Full Bucket) programme. On average, family farmers who joined the programme increased milk production three-fold whereas at regional level there was a significant reduction of 8% between 2003 and 2009. Comprehensive datasets from São Paulo state and four other regions across Brazil were collated and analysed to explore for whom, how and when intensive dairy production is a feasible option. Data envelopment analysis allowed us to compare inefficiencies among farms and highlight different strategies for technological changes. The empirical evidences in this study indicate the technical viability of the more intense use of resources towards family-based dairy farming systems. Higher productivity was due to a combination of more lactating cows/area (31%), higher productivity/cow (24%), better labour performance (37%) while using less land area (À7%). The gross margin/area almost doubled although milk prices had increased by only 7%. The economic outcome of the intensified systems was on average R$ 3000/ ha which was competitive with R$ 600/ha for sugarcane leasing and R$ 700/ha for soybean production. Despite the smaller returns on land, large landowners can have a good household income with sugarcane or soybean, but for smallholders the intensification of dairy is the only option. Compared with the alternative of wage jobs in urban areas, we found it very competitive for 40 out of 50 farmers in the sample in terms of income per family member involved in the production process.

De-mystifying family farming: Features, diversity and trends across the globe

“…In West Africa, institutional support for input supply and marketing increased cotton yields and income for smallholders (Gabre-Madhin and Haggblade, 2004). In Brazil, the Embrapa Baldo Cheio programme, aimed at family farmers, led to a three-fold increase in milk production per farm and farmers' incomes comparable to the urban minimum wage, showing that intensification of family farms is possible and profitable (Novo et al, 2013).…”

Intensification and Upgrading Dynamics in Emerging Dairy Clusters in the East African Highlands

“…Studies on the commercialization of milk production repeatedly show the complexity of the transition from semi-subsistence to market-oriented dairy farming, which is often associated with intensification and specialization [6][7][8][9][10]. For this transition, many farm practices may need innovation in areas such as feeding, housing, and output marketing.…”

Economic and socio-environmental performance assessment of beef cattle production systems: a data envelopment analysis (DEA) approach with weight restrictions

“…Other examples of DEA use in Brazilian beef cattle production can be seen in Gomes et al (2012) and Abreu et al (2012). Some recent uses of DEA in agriculture as a whole may be found, for instance, in Aldanondo-Ochoa et al (2013), Bojnec and Latruffe (2013), Falavigna et al (2013), Novo et al (2013), andSánchez-Zamora et al (2014).…”