This study evaluates the available on-farm resources of five case studies typified as small-scale dairy systems in central Mexico. A comprehensive mixed-integer linear programming model was developed and applied to two case studies. The optimal plan suggested the following: (1) instruction and utilization of maize silage, (2) alfalfa hay making that added US$140/ha/cut to the total net income, (3) allocation of land to cultivated pastures in a ratio of 27:41(cultivated pastures/maize crop) rather than at the current 14:69, and dairy cattle should graze 12 h/day, (4) to avoid grazing of communal pastures because this activity represented an opportunity cost of family labor that reduced the farm net income, and (5) that the highest farm net income was obtained when liquid milk and yogurt sales were included in the optimal plan. In the context of small-scale dairy systems of central Mexico, the optimal plan would need to be implemented gradually to enable farmers to develop required skills and to change management strategies from reliance on forage and purchased concentrate to pasture-based and conserved forage systems.
Keywords: Farm management; Linear programming; Net income; Pastures; Smallholder dairy farming.