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According to the Free Trade Agreement with Central America, Dominican Republic and United States signed in 2008, milk import tariff reliefs will stagger down from 59,4% to 0% by 2025. This study determined milk demand and supply curves in the Costa Rican domestic market. Several variables and two different models were conducted to estimate milk dem...
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... The dairy subsector produced 1.2 million litres of milk in 2017, an increase of 16% since 2011 (FAO, 2017), and dairy products account for approximately 12% of value-added in the agriculture sector (SEPSA, 2016). Over 730,000 farms in Costa Rica are classed as dairy or dual-purpose (dairy and beef) (INEC, 2014), of which 48% are small producers (fewer than 15 animals) (Rodriguez-Lizano et al., 2018). Import tariffs of up to 66% on milk products and farm cooperatives maintain high milk prices nationally (OECD, 2017). ...
... Import tariffs of up to 66% on milk products and farm cooperatives maintain high milk prices nationally (OECD, 2017). Dos Pinos, the largest cooperative, accounts for almost 88% of sales value from Costa Rican dairy farms (Rodriguez-Lizano et al., 2018). Emissions of N 2 O and CH 4 from agriculture make up almost 17% of Costa Rica's anthropogenic GHG emissions (MINAE and IMN, 2014). ...
... The phasing out of tariffs as part of the DR-CAFTA (Dominican Republic -Central American Free Trade Agreement) will lower the overall price of milk, leaving small Costa Rican dairy farmers vulnerable. Recent research suggests that Costa Rican national production would decrease by up to 26% (Rodriguez-Lizano et al., 2018), with the demand gap being filled by imported milk. As Costa Rican dairy farmers strive to remain competitive in this economic environment, it is important that mitigation measures to reduce their environmental footprint also increase efficiency, and do not place undue economic hardship on small producers who will struggle to compete with larger domestic producers and imports (Rodriguez-Lizano and Montero-Vega, 2016). ...
This study utilises data collected from Costa Rican dairy farmers to conduct a cradle to farm gate Life Cycle Assessment and the first Marginal Abatement Cost Curve (MACC) for dairy production in Latin America. Ninety dairy farms across five farm typologies were assessed, reflecting Costa Rica’s diverse agroclimatic zones and varying degrees of dairy/beef specialisation. The efficacy and cost-effectiveness of specific mitigation measures depend on farm typology, but several promising technologies are identified that increase efficiency whilst substantially reducing emissions across most farms – in particular, measures that improve animal health and increase pasture quality. Pasture measures are synergistic with silvopastoral practises and are highly effective at emission mitigation, although relatively expensive. The replacement of lower quality by-product feeds with high quality concentrate feed is a cost-effective mitigation measure at farm level, but emission reductions could be negated by indirect land use change outside the scope of the MACC analyses. Achieving carbon neutrality at farm level is not likely to be possible for most farms, with the exception of extensive farm typologies. Not all measures are suitable in every context, and additional policy support will be needed to offset financial and technical challenges related to adoption. Results of this first tropical dairy MACC study are constrained by lack of high-resolution data, but they highlight the need for farm-typology-specific mitigation recommendations. Overall, there is a high potential for pasture improvement and silvopastoral measures to mitigate the globally significant contribution of Latin American livestock production to climate change.
