Technical optimum milk and meat production levels in dual-purpose cattle systems in tropical Mexico

Abstract

Inputs directly affect profitability in livestock production, although what effects they have vary in response to production system and input type. An analysis was done of the results from a milk and meat production function using data from dual-purpose system (DP) production units in three locations in tropical Mexico. Data were collected through monthly surveys and covered milk production, meat production, income and financial costs over a twelve-month period. The functions were estimated by the indirect linear regression method with transformed data for a Cobb-Douglas function. The milk function showed the feed and cows inputs to explain 91 \% of production. Elasticity coefficients were 0.34 for feed and 0.5 for cows. Marginal products were 0.75 for milk and 892.2 for cows, with values of \$ 4.03 L for milk and \$ 4,800.20 per cow. Both inputs are in stage II of production with diminishing marginal returns. For meat production both the feed and cows' inputs explained 72 \% of production, with elasticities of production coefficients of -0.20 for feed and 1.11 for cows. Feed was in stage III of production with negative marginal returns, but the cows input was in stage I with increasing marginal returns. The sum of the coefficients was less than one for both functions (0.92 for feed, 0.91 for cows), indicating decreasing returns to scale. The optimum technical production levels were 488.97 L milk per day and 10 calves per year. In the studied producers the inputs for milk production were being used rationally, although in meat production feed appears to be overused and should be evaluated.