The main purpose of this study was to perform an economic comparative analysis of three distinct feeding systems, confinement feeding, grazing and mixed feeding from a case study sample of 12 dairy farms at the Arecibo agricultural region. The dairy herds managers provided relevant economic information through a questionnaire. The description of physical characteristics and production parameters from each farm, showed no big difference between production levels of dairy herds. The economic results of this research were based on estimating and analyzing revenues, expenses and the value of investment from each dairy farm. The profitability analysis reveals grazing farms have the highest operation profit ratio and the lowest operational expenses ratio. The production total cost was calculated recognizing the opportunity costs within, and the outcome demonstrated that all cases covered the total cost but they got a low profit regard. The estimation of the investment per farm indicated that increasing the size of herd is costly in any of the three feeding system studied. On the other hand, the initial investment analysis based on net present value evaluation suggested that it is not possible to get out of the business in the medium term without incurring in losses in all cases.
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