Organic Milk Production on the Puno Region: An alternative of the Sustainable Development

Abstract

The demand for organic products is expanding in the world, the organic milk too. In Puno by cultural, geographic and historic characteristics agricultural production still used technologies of ancestral production, seeking environmental balance with the use of pesticide and manure chemicals minimum, showing focus on the sustainability. The research objective was determined the profitability and risk of organic milk production like option to sustainable development. Consider at the milk production above 3000 meters high, an area of 6.5 hectares, one “criolla” cow for hectare, producing 10 liters per day. The economic indicators were positive, the VPL was S/. 2.916,38, TIR 24%, VAE S/. 866,33 B/C S/. 1,48 and the investment recovery period was 5.88 years, showing that the organic milk production is profitability, but with high risk, the Monte Carlo simulation shows the 71.43% of chance that the project doesn’t take profit.