Profitability of Goat Production in the Mexico Highlands

Abstract

The aim of this study was to assess the profitability of extensive goat production through on-farm research. Eleven goat farms were used; purchased inputs and sales were recorded for two years and total gross margin was calculated, excluding family labour. Labour intensity and labour efficiency were compared. Univariate analyses and correlations were used to explain the producers' profitability. All sources of income per farm were assessed, compared and contrasted with official poverty indexes. The area of land used for cultivation and grazing and producers' knowledge of agriculture most limited productivity. The weakest producers were limited by these factors and earned a fifth of the regular per hour wage in the region. Management aspects determined profitability. Family labour-intensive producers were the most profitable. Business-oriented producers were more productive but less profitable. In the dry year, milk production per doe declined by 30%, external inputs doubled, and unwanted sales of animals increased; thus the gross margin per doe decreased by 10%. Goat husbandry is not a profitable activity since most of its profits only compensate the labour employed. In the Mexican highlands, non-farm income is necessary to avoid poverty; the main sources were government aid (29% on average) and remittances (25% on average).