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Citation of this paper. The objective was to analyze the milk market of small rural artisan cheese factories in livestock watersheds of Honduras and Nicaragua to determine if: there is a market for higher milk production how much additional milk can the market absorb in each season of the year there is a market for milk of higher hygienic quality. Total milk production during the rainy season is about twice that during the dry season, causing an over-supply and scarcity of milk, respectively. The shortage of fluid milk during the dry season leads to an unsatisfied market. This fact suggests that an aggressive program for the promotion of shrub legumes with sugarcane to supplement the herd during the dry season would have more impact that the promotion of grasses or legumes for the rainy season when there is little market for additional milk produced. In addition, rural artisan cheese factories in Honduras and Nicaragua, that consider the milk they collect is of bad quality, would be willing to pay a higher price if the option to collect milk of better hygienic quality exists. As a result, large incentives exist in both countries to increase milk production during the dry season and to improve the hygienic quality of milk in the studied areas. The production of fresh milk in Central America is about 2 billion liters per year. The dominant production system in Central America is the dual-purpose, where cows are milked by hand once a day and both male and female calves are raised and sold shortly after weaning. The genetic base in this production system is Bos indicus mainly Brahman and crossbreds with Bos taurus breeds usually Holstein. The most abundant feed resources are native forages and crop residues, but their quality and quantity is low. In addition, another constraint is that forage supply is related to availability of rains. During the 6-month dry season from December to May , the quantity of forage on offer is minimum, especially grasses, and thus milk production drops sharply compared to the rainy season when there is abundance of green pastures. The Tropileche Consortium operates in both Honduras and Nicaragua. The objective is to test and promote legume-based forages to increase the productivity of both milk and beef in small-scale, dual-purpose farms. The fresh milk that reaches the consumer in Honduras and Nicaragua comes from two broad sources: 1 the industrial circuit, and 2 the artisan circuit. There are 5 industrial milk plants in Honduras and 4 in Nicaragua. In addition, industrial plants have accounting records and pay taxes. Industrial plants usually buy milk from farmers who produce good quality milk. Generally, these rural artisan cheese factories require a health permit to operate, which is given by the Ministry of Health in each country. However, the operating conditions of most artisan cheese factories are deficient and no formal accounting records are kept. Most have dirt floors and use instruments to make cheese that are made out of wood or cement instead of stainless steel. The use of chlorine solutions to clean and disinfect the equipment is nil De Franco et al ; Garcia Quality control is non-existent. These artisan cheese factories transform milk into fresh, popular cheeses with a shelf life shorter than 10 days De Franco et al It is estimated that in Honduras there are about artisan cheese factories Argel a. As a result, the artisan cheese industry in both countries is the principal buyer of milk produced by small and medium scale producers, which does not fulfill the requirements of industrial milk plants. The price paid to producers by artisan cheese factories depends on the supply and demand for milk, which is seasonal with abundance during the rainy season and scarcity in the dry season. This fluctuation in the milk supply is directly related to the rainfall pattern which, in turn, influences the availability and quality of forage on offer, the main feed source of livestock farms in tropical Latin America. This situation leads to serious difficulties in allocating the surplus milk produced during the rainy season because both countries lack an efficient industrialization and marketing system to absorb it eg: a milk powder plant. Thus, the only alternative for the artisan circuit to market the excess supply of milk during the rainy season is by reducing the milk price to both producers and consumers. This problem is of less importance in dairy farms supplying milk to the industrial circuit because the amount of milk produced during the dry season is not significantly different from that produced during the rainy season. This is because these farms have more intensive production systems as a result of the adoption of improved forages and in many cases have irrigation infrastructure BID This is due to the fact that the pasteurization process only guarantees the elimination of pathogenic bacteria, remaining alive many others which affect the quality of cheeses De Franco et al It is not possible to make cheese of acceptable quality with this type of milk, a situation determined by the sanitary conditions during milking and the transport of milk to the cheese factories. The majority of milk producers in Honduras and Nicaragua do not have milking sheds nor running water. Milking is carried out in open corrals, by hand, with open buckets, and often surrounded by sludge. The milk cans are washed with any type of common detergent and chlorine is not always used to disinfect them De Franco et al As a result, due to the problems of over-supply and poor milk quality during the rainy season, it is more attractive to produce higher milk volumes during the dry season since it benefits the producer, via better price, as well as the artisan cheese factories, via better milk quality. The objective of this study was to analyze the milk market provided by small-scale artisan cheese factories located in livestock watersheds of Honduras and Nicaragua in order to answer the following questions: Is there a market for additional milk production? Is there a market for milk of higher hygienic quality and accordingly, better price? The data for this study were obtained through surveys during March of 10 and 13 small-scale artisan cheese factories in Honduras and Nicaragua, respectively. These rural cheese factories were located in the watersheds of Olancho, Catacamas and Juticalpa in Honduras and in Esquipulas and Muy-Muy in Nicaragua. Selection of the sites was based on information supplied by a dairy development project Garcia The interviews were performed on a person-to-person basis between the Tropileche technician and the owner of the rural cheese factory. Secondary information data from both countries was utilized in order to complement the survey. Tables 1 and 2 contain the information synthesized from the surveys of the cheese factories. This factor disrupts the local market and has significant impact on the price of milk that the artisan cheese factories are willing to pay. Four types of cheese are produced in each country by artisan factories. In addition, they all make cream as a by-product because most cheeses are made with skim milk. Thus, the sale of cream is a net profit. In addition, in both countries each type of cheese has a different price. Therefore, the marketing strategy is similar in both countries, being segmented to four different tastes associated with the purchasing power of consumers. Even though all cheese types that are produced are fresh and have short shelf life, the difference between them lies in the amount of moisture. Thus, in order to produce a cheese with a low moisture content, a larger quantity of fluid milk is required and as a result, its price is higher ie: Queso Seco in Honduras and Queso Puro in Nicaragua. This fact is demonstrated by the amount of fluid milk necessary to produce a kilogram of cheese and this in turn is directly related to the consumer price. In addition, the higher the moisture content, the lower the shelf life. Therefore, low-cost cheeses are also those with the shortest shelf life because they contain high moisture levels. In addition, the quantity of milk necessary to produce each cheese type varies according to the season of the year. During the rainy season, milk production per cow is greater but the total solids content in milk is lower and, as a result, more milk is required to produce the same quantity of cheese than during the dry season. This reduction in yield efficiency during the rainy season forces artisan factories to pay a lower milk price to producers. The potential growth of the cheese market is large and unsatisfied. This situation is not the same during the rainy season, where the potential for growth is null in both countries due to an excess supply of milk in the market. As a result, the artisan factories in both countries would be willing to purchase more milk only during the dry season, which has significant implications in the type of technologies to promote to producers in both regions. Thus, there is a direct relationship between low hygienic quality of the milk and the rainy season, which agrees with the conclusion of De Franco et al A rtisan factories in Honduras and Nicaragua that consider milk collected as being of low hygienic quality would be willing to pay a higher price if they had the option. In Honduras this price would be 9. Table 3 indicates the needs or expectations of artisan factories in both countries. The main need was the improvement of factory infrastructure through the expectation to acquire more equipment eg: creameries, freezer rooms, etc. Thus, future prospects seem good in both countries. Table 3. Needs of artisan cheese factories in Honduras and Nicaragua. The second need in order of importance in Honduras was to purchase milk with higher hygienic quality, which agrees with the results of Table 1, while in Nicaragua the need number two was the search for new markets. The third need in Honduras was training to produce new types of cheeses in order to diversify the market and not so much the search for new markets for the same types of cheeses, while in Nicaragua the need was to improve the quality of cheeses produced within the artisan factories. The results of this survey have two types of technological implications for the Tropileche Consortium: animal feeding and genetic improvement. In the animal feeding component these results suggest producers would benefit from adopting low cost feeding alternatives for the dry season. Currently, the use of chicken manure and concentrate feeds is common, but it is an expensive alternative. In addition, Cratylia is well adapted to low fertility soils where other forage options such as Leucaena leucocephala do not thrive well. The larger the herd, the larger the area needed to be planted. This investment cost includes the cost of seed, weed control, land preparation, and labor. The main input to produce cheese is the protein contained in the milk. M ilk with a higher protein content yields more cheese. It is estimated that for each 0. Therefore, the other technological implication to improve the yield efficiency of cheese making is through the use of milk with higher protein content and this is mainly achieved with genetic improvement at the farm level through the promotion of crosses with breeds which produce milk with higher protein content. The type of cattle commonly found in Honduras and Nicaragua is the Zebu mainly Brahman. The protein content of Bos indicus breeds such as Brahman, Guzerat, and Nelore is around 3. In Bos taurus breeds there is more variability, the protein content ranging from 3. As a result, a genetic strategy that incorporates Jersey or Brown Swiss genes into the local Zebu gene pool will provide producers the possibility to offer the artisan factories milk with a higher protein content provided there is a transparent payment system that values milk protein. The production of milk in the livestock watersheds where the Tropileche Consortium operates is seasonal. Production during the rainy season is practically twice that during the dry season, which causes over-supply and scarcity of milk, respectively. This results in drastic changes in the milk price received by producers between one season and the other. The milk shortage that occurs during the dry season in both countries leads to a market potential for additional milk to be produced. This fact suggests that an aggressive program for the promotion of shrub legumes such as Cratylia argentea in combination with sugarcane to supplement the milking herd during the dry season would have more economic benefits to producers than the promotion of grasses and legumes for the rainy season. This technological change would reduce the need for purchasing feed concentrates to supplement the herd, thus improving the cash flow of producers and would increase the total solids content in milk. The adoption of improved legume-based forages for dry-season feeding allows producers to change the calving season of the herd in order to have a similar amount of milking cows during both seasons to produce a constant amount of milk throughout the year, thus reducing the risk of over-supply of milk during the rainy season. Artisan factories in both countries, but especially in Honduras, want to collect milk of higher hygienic quality, especially during the rainy season, and both countries would be willing to offer a higher milk price if this option existed. The main need of the artisan factories is improvement of the infrastructure through the expectation to acquire more equipment eg: creameries and freezer rooms. The second need in order of importance in Honduras was to purchase milk with higher hygienic quality while in Nicaragua the second need was the search for new markets. The third need in Honduras was training to produce new types of cheese in order to diversify the market and not so much the search for new markets for the same types of cheeses, while in Nicaragua the need was to improve the quality of the cheese produced within the artisan factories. A genetic strategy that incorporates Jersey or Brown Swiss genes into the local Zebu gene pool would provide producers with the possibility to offer the artisan factories milk with a higher protein content. Hoja Informativa de Tropileche No. Banco Interamericano de Desarrollo. Cajina A Precios y mercado de la leche en Nicaragua. Holmann F and Ibrahim M Potential benefits of new forage germplasm in dual purpose cattle farms in the dry tropics of Costa Rica, Honduras and Nicaragua. Ministerio Agropecuario y Forestal. Received 27 November Go to top. Table 1. Amount of milk collected, cost of milk, types of cheese produced, sale price, milk yield to produce each cheese type, and potential market in both dry and rainy seasons of 10 small scale artisan cheese factories in the livestock basin of Olancho, Catacamas and Juticalpa in Honduras. Table 2. Amount of milk collected, cost of milk, types of cheese produced, sale price, milk yield to produce each cheese type, and potential market in both dry and rainy seasons of 13 small scale artisan cheese factories in the livestock basin of Esquipulas and Muy-Muy in Nicaragua. Livestock Research for Rural Development 13 1 Dry Season. Rainy Season. Milk collection. If this factory could buy more milk to make cheeses, how much more would it buy? Do you consider that the milk collected is of good hygienic quality? How much would you be willing to pay for milk of higher hygienic quality? Acquire more equipment to expand 1. Improve the hygienic quality of the milk 2. Technical training to produce new types of cheese. Improve the quality of cheeses 3. Expansion and search for new markets.

Juticalpa buying powder