How to support small-scale milk producers best? An application of a household optimization model for the Encañada watershed

Cajamarca is the most important milkshed within Peru located in the higher Andes. Most milk produced by small-scale farmers, situated in three main ecological zones: Valley, Slope (lower hills), and Jalca (upper hills). Each of these zones reflects specific environmental and production conditions that vary with altitude, ranging from 2’800 to 3’700 m. (Table 1.). This study aims to prioritize further extension and research activities for raise particularly small-scale farmers’ profits. The analysis is based on census data and farm surveys from the Encañada watershed, and the application of a household optimization model.