H.G.P. JANSEN¹, M.A. IBRAHIM², A. NIEUWENHUYSE¹, L. 't MANNETJE³, M. JOENJE⁴ and S. ABARCA⁵

¹Research Program on Sustainability in Agriculture (REPOSA - CATIE/WAU/MAG), Guápiles, Costa Rica
²Centre for Research and Education in Tropical Agriculture, Turrialba, Costa Rica
³Department of Agronomy, Wageningen Agricultural University (WAU), The Netherlands
⁴Amsterdam, The Netherlands, and
⁵Ministry of Agriculture and Livestock, Turrialba, Costa Rica

Abstract

Beef cattle production on unimproved pastures in the Atlantic Zone of Costa Rica is low. A capital budgeting model was used to investigate the financial profitability of pasture improvement using a mixture of Brachiaria brizantha and Arachis pintoi (BA system) or of B. brizantha and Erythrina berteroana (silvipastoral system). A supplementary feeding system on unimproved pastures was also evaluated as an alternative to increase beef production and farm income. Present values of incremental returns and internal rates of return on capital invested were calculated for all 3 systems. Financial benefits of the silvipastoral system were significantly lower than those of the BA system. However, non-monetary benefits of incorporating trees in pastures are difficult to value and were not considered in the financial analysis. Profitability of the supplementary feeding system was lower than that of the BA system, but exceeded returns from the silvipastoral system, although it may prove unsustainable in the long run. Nevertheless, supplementary feeding constituted an attractive option on soils where the BA and/or silvipastoral systems are difficult to establish, and for farmers without access to sufficient capital.