Determinant factors of economic performance of goat meat production systems in arid rangelands of Mendoza, Argentina

Abstract

This study identified and quantified the relevance of the variables affecting the annual incomeof meat goat production systems in arid rangelands of north-eastern Mendoza plain. It washypothesized that the number of kid produced per year is the main factor that influences theeconomic performance of production systems. Ordinary linear, semi-log and Cobb-Douglasfunctions were estimated based on data from a cross section of 20 representative producers ofthe study area. Dependent variable was farm income and independent variables were number ofkids and calves produced, manure sold, off-farm income, labor used for animal management (allthe previous variables expressed at annual terms), farm available infrastructure, and distanceof the farm to the main path. Producer size, on the basis of the number of goats and cows thatthey had, was divided into two categories: C1 with no more than 130 animals and C2 with morethan this amount. Linear equation was a good one because it had the highest R2 (0.99). Productionelasticity was higher for off-farm income than that of kid production in C1 producers. Thecontrary was verified for C2 producers. Optimal policy for incrementing significantly the farmannual income would be to increase the producer size when the available natural resources andothers farm characteristics would permit it.