Performance, Challenges, and Opportunities of Nicaraguan Livestock Production (ENG)

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Performance, Challenges, and Opportunities of Nicaraguan Livestock Production (ENG)

  1. 1. PERFORMANCE, CHALLENGES AND OPPORTUNITIES OF NICARAGUAN LIVESTOCK PRODUCTION MSc Ariel J. Cajina L. August, 2013 Managua, Nicaragua
  2. 2. Characterization of Nicaraguan Livestock Production Nicaraguan livestock production is based on dual-purpose production systems. • More specialized livestock production systems existed between 1960-70 than are currently in place. • More than 95% of meat and milk production comes from dual-purpose livestock farms.
  3. 3. Livestock Farm Sizes (IV CENAGRO) Livestock Farm Sizes Total Livestock Farms Bovines Livestock Farms Amount In the Country 262,544 136,687 100% 4,136,422 100% From 0.5 Mzs a Menos 31,804 5,183 3.8 22,217 0.5 From 0.51 to 1 Mz 16,676 3,286 2.4 13,812 0.3 From 1.01 to 2.5 mzs 38,215 10,009 7.3 42,507 1.0 From 2.51 to 5 mzs 35,672 13,785 10.1 71,996 1.8 From 5.01 to 10 mzs 33,686 17,768 13.0 128,631 3.1 From 10.01 to 20 mzs 29,881 20,292 14.8 223,784 5.4 From 20.01 to 50 mzs 37,440 30,869 22.6 673,738 16.3 From 50.01 to 100 mzs 21,238 19,053 13.9 850,502 20.6 From 100.01 to 200 mzs 10,911 9,995 7.3 818,552 19.8 From 200.01 to 500 mzs 5,468 5,041 3.7 789,839 19.1 From 500.01 to más 1,553 1,406 1.0 500,844 12.1
  4. 4. Livestock sector growth in Nicaragua  Growing in the humid zone where there is rainfall 9-10 months out of the year, ◦ Deconcentration of meat and milk production throughout the year. Desconcentración de la producción de carne y leche a lo largo del año. Calving is no longer focused solely at the start of the rainy season. It is now also focused near the end of the year and February in the humid zone. ◦ Livestock delivery for slaughter is more constant throughout the year. ◦ Growing in the humid zone results by default in better livestock nutrition. Feeding livestock during the dry season stops being a critical issue.  Growing in parts of the country where productive infrastructure (roads, electricity) is minimal.
  5. 5. Evolution of the Cattle Herd in Nicaragua
  6. 6. Location of the Cattle Herd in Nicaragua Departamentos Número de cabezas de ganado bovino Porcentaje (%) RAAS 1,128,311 27% RAAN 466,263 11% Chontales 409,482 10% Matagalpa 380,574 9% Río San Juan 291,524 7% Boaco 259,656 6% León 235,569 6% Jinotega 197,992 5% Chinandega 180,981 4% Managua 131,891 3% Estelí 108,415 3% Nueva Segovia 98,507 2% Rivas 86,542 2% Madriz 52,981 1% Granada 41,195 1% Carazo 38,469 1% Masaya 28,070 1% TOTAL 4,136,422 100% Fuente: IV Censo Nacional Agropecuario (CENAGRO) 2011.
  7. 7. Location of the Cattle Herd and Milk Production in Nicaragua Cattle Herd: RAAS 27% RAAN 11% Chontales 10% Matagalpa 9% Río San Juan 7% Boaco 6% Sub-total 70%
  8. 8. Livestock resource availability in Nicaragua. Evolution of the Herd Hato Ganadero Extensión Densidad Hato Proyectado Densidad 2,001 Territorial Poblacional 2,011 Poblacional cabezas km2 cabezas/km2 cabezas cabezas/km2 Dpto Matagalpa 259,336 6,702 39 449,034 67 Dpto Jinotega 120,413 9,263 13 277,890 30 Dpto Nueva Segovia 65,067 3,530 18 105,900 30 Dpto Madriz 36,351 1,712 21 51,360 30 Dpto Estelí 76,974 2,371 32 106,695 45 Dpto Chinandega 124,661 5,173 24 232,785 45 Dpto León 169,302 5,060 33 227,700 45 Dpto Managua 77,381 4,323 18 129,690 30 Dpto Carazo 28,878 1,066 27 47,970 45 Dpto Masaya 19,772 597 33 26,865 45 Dpto Granada 38,673 947 41 63,449 67 Dpto Rivas 71,339 2,156 33 97,020 45 Dpto Boaco 218,208 4,177 52 279,859 67 Dpto Chontales 324,318 6,483 50 434,361 67 Región RAAN 163,603 35,174 5 1055,220 30 Dpto Rio San Juan 169,634 7,473 23 411,015 55 Region RAAS 693,759 30,732 23 1690,260 55 2657,669 126,939 29 5687,073 47 1.64
  9. 9. Nicaragua in the international competitivity context for low cost beef production  Beef production is forage-based; it possesses the base for profitable production  Improvement of productivity indicators opens a wide opportunity to improve profitability. Does not presuppose changes in livestock farming methods (increased costs of production) as in other countries.  The regional market lacking this product, as well as low domestic consumption levels, provide advantages for ensuring the required market opportunities to position national production.
  10. 10. Evolution of Beef Production in Nicaragua
  11. 11. Evolution of Beef Yield in Nicaragua
  12. 12. Development Axes of Livestock Development in Nicaragua  Improving marketing conditions of livestock areas where product sales are difficult and prices for farmers are low.  Improve low levels of farm productivity, once marketing issues have been overcome.
  13. 13. Livestock Farming Issues in Nicaragua  Only 30-40% of national milk production has access to collection centers (not all with refrigeration capacity).  Milk collection infrastructure lacks of an adequate refrigeration system.  Calves are marketed at very low prices.  Productive infrastructure
  14. 14. Main milk and meat production issues  Low levels of productivity PARAMETER Current Figure Adequate Calving rate(%) 52 85 Effective weaning(%) 48 82 Calf mortality (%) 10 5 Adult mortality (%) 2 1 Average slaughter age (years) 3.5 – 4 2.5-3 Average slaughter weight (kgs) 400 430 Lactation Duration (days) 210 310 Milk/cow/day production (liters) 3.8 12
  15. 15. Importance of the Dairy Sector in the Nicaraguan Economy ◦ Sustained increase in exports. Dairy exports went from US$ 5 million in 2002 to US$ 140 million in 2011, and reached US$ 178 million in 2012. ◦ The dairy sector is the most dynamic in relation to exports. ◦ Strong impact in rural areas where poverty is concentrated. ◦ Strong livestock wealth distribution effect. The average livestock farmer sells 18 gallons/day during the rainy season and 14 gallons/day during the dry season. The number of dairy farmers is estimated to be over 120,000, which directly involves a population of approximately 750,000. ◦ Sustainable income in the medium- to long-term for beneficiaries. It is estimated that dairy prices will remain high, and although they may decrease in the long term, they will not return to previous years’ levels.
  16. 16. Nicaragua in the international competitivity context for low cost milk production  Nicaragua is one of the countries in Latin America with the lowest product prices. Prices to farmers of US$ 0.20 – US$ 0.42/ liter of milk. It is the lowest in Central and Latin America.  Low cost milk production. It is one of the most competitive countries. E.g. Increase in milk sales as raw materials for the Salvadorian dairy industry.
  17. 17. Milk Production and Collection Capacity in Livestock Farming Areas  Milk Production: 1,200,000 liters/day  Collection and cooling capacity: 160,000 liters
  18. 18. Current Milk Collection Situation MILK TRANSPORTATION TIME FROM FARMS TO COLLECTION CENTERS (unrefrigerated)  TIME PERCENTAGE  2 hours or more 37.8%  1 – 2 hours 22.4%  31 – 60 minutes 23.5%  Under 30 minutes 8.1% Source: Canislac, 2007.
  19. 19. Competitive Reconversion Program for Cattle Farming in Nicaragua  Background ◦ Livestock development framework between government institutions and livestock sector organizations.  Current Situation ◦ Developing a Credit Program for Sustainable Development with Banco Produzcamos, ◦ Inventory of Livestock Projects, which sum up to a preliminary estimate of over
  20. 20. Competitive Reconversion Program for Cattle Farming in Nicaragua  Start of Program development at bankable levels. Resources are secured.  National Plan of Livestock Research in development for the Reconversion of the Livestock Sector in Nicaragua.
  21. 21. Livestock models for production intensification of Banco Produzcamos  1) Establishing integrated farms with an average size of 25 hectares (ranging from 14 to 25 hectares) with a tendency towards milk production;  2) Establishing dual-purpose semi-stabled farms with an average size of 53 hectares (ranging from 25 to 70 hectares) tending towards milk production;  3) Establishing dual-purpose livestock farms tending towards high milk production, with an average size of 105 hectares (ranging from 75 to 140 hectares) with silvopastoral systems, and  4) Establishing integrated dual-purpose , high-productivity livestock farms with an average size of 245 hectares (ranging from 140 to 350 hectares) with a significant meat production component ( Establecimiento de fincas ganaderas de doble propósito integrales de alta productividad, con tamaños promedios de 350 mzs (rango de 200 a 500 mzs) con un componente cargado a la producción de carne (calf raising, development, and fattening).
  22. 22. Basic Elements for Formulating Credit Projects  The base for livestock feed must be grasses and fodder.  The country does not have new lands to accomodate the traditional horizontal expansion of livestock farming.  Productive growth will be limited if credit isn’t tied to technical assistance.  Livestock projects’ horizons must be adapted to the biological productive
  23. 23. Investment Concepts in Different Models (case I) Conceptos de Inversión Total Monto % Año 0 1 2 3 4 5 6 7 8 9 10 Establecimiento de Pastos 1,224 1,224 1,224 1,224 1,224 6,120 24.23 Establecimiento de Forrajes 380 380 1.50 Establecimiento de Semilleros 260 260 1.03 Establecimiento de Banco Leguminosas 160 160 0.63 Establecimiento de Cercas Perimetrales 1,176 1,176 4.66 Compra de Semental 2,200 2,200 8.71 Establecimiento de Cercas Internas 2,204 2,204 8.73 Asistencia Técnica 240 240 0.95 Gastos Operativos 350 350 1.39 Arreglos Silvopastoriles 2,000 2,000 7.92 Cosecha de Aguas 880 880 3.48 Reforestación 1,000 1,000 2,000 7.92 Mejoramiento Condiciones de Ordeño 557 557 2.20 Galera Terneros 1,000 1,000 3.96 Utensilios de Ordeño 250 250 0.99 Enchape de Corrales 480 480 1.90 Biodigestores 2,000 2,000 7.92 Paneles Solares - 0 Equipos - 0 . Picadoras 1,000 1,000 3.96 .Bombas de Agua - Sistemas de Riego 2000 2,000 7.92 Inversión Total del Modelo 4,040 6628 5141 5224 4224 0 0 0 0 0 0 25,257 100.00 16.00% 26.24% 20.35% 20.68% 16.72% 25,257 25,257 Años
  24. 24. Inventory of Livestock Programs and Projects  Government Institutions: ◦ 1. MAGFOR, ◦ 2. MEFFCA, ◦ 3. INTA, ◦ 4. Banco Produzcamos, ◦ 5. MIFIC.  Organizations: ◦ 1. OIRSA, - 5. ALBALINISA, ◦ 2. CATIE, - 6. FUNICA, ◦ 3. SNV, - 7. CARUNA, ◦ 4. USAID, - 8. CIAT.  Sectoral Organizations ◦ 1. CONAGAN, ◦ 2. CANISLAC, ◦ 3. UNAG, ◦ 4. CANICARNE, ◦ 5. APEN.
  25. 25. Inventory of Livestock Projects Institutions Number of Projects Amount US$ Government 46 59,853,634.40 Organizations 26 31,652,901.00 Sectoral Organizations 13 55,390,000.00 Identified but not included 7 Total 92 146,896,535.40
  26. 26. National Livestock Research Plan for Livestock Reconversion  Being developed by: ◦ Interinstitutional Commision integrated by: MAGFOR, MEFFCA, INTA and UNA.  General Objective: ◦ Contribute through scientific research results towards increasing Nicaraguan livestock productive and reproductive rates with a vision of economic and environmental sustainability and a focus on food and nutritional security.
  27. 27. National Livestock Research Plan for Livestock Reconversion  In main cattle farming areas, the Nicaraguan livestock sector has serious problems commercializing its main products: meat and milk, which ultimately leads to low productive and reproductive rates. These problems are exacerbated by the environmental, social, and financial dimensions of extensive production systems that use low-quality primary commodities, alongside low levels of transformation and association.
  28. 28. National Livestock Research Plan for Livestock Reconversion Problem 1  In different areas of our country there are technical, economic, and cultural factors (commercialization, infrastructure, and low levels of farm productivity) that have a negative impact on livestock production.  Objective  Characterize technical, economic, and cultural issues (commercialization, infrastructure, and low levels of farm productivity) by area, and its degree of impact in livestock production development.  Line of research  Technical, economic and cultural characterization of livestock production systems by geographic sites.
  29. 29. National Livestock Research Plan for Livestock Reconversion Problem 2  Technological options (genetics, feeding and pastures, management, sanitation) used widely in the country are not the most appropriate for the different productive areas and the main production systems, according to their agroecological and sociocultural characteristics.  Objective  Identify the most appropriate technological options for production systems according to their agroecological and sociocultural characteristics.  Line of research  Development of appropriate technological options for the agroecological and sociocultural characteristics of production systems.
  30. 30. National Livestock Research Plan for Livestock Reconversion Problem 3  A large part of the products generated through national livestock production lack the appropriate transformation processes that allows them to obtain greater added value and improve quality and hygiene.  Objective  Design strategic focal points of livestock product transformation with high added value that follow national and international quality standards.  Line of research  Development of transformation strategies for livestock products with high added value that follow national and international quality standards.
  31. 31. National Livestock Research Plan for Livestock Reconversion Problem 4  Limited presence of organizational structures in the main livestock farming areas of the country has had a negative impact on the expansion of collection infrastructure and negotiation of product pricing.  Objective  Study the existing link between organizational structures and its impact on market mechanisms for livestock products.  Line of research  Study of the link between organizational structures and its impact on market mechanisms for livestock products.
  32. 32. . THANK YOU

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