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Beef Cattle Production and Wealth Creation: Evidence from Improved Boran Cattle and Crosses, Lanet, Kenya
AJAERD
Beef Cattle Production and Wealth Creation: Evidence
from Improved Boran Cattle and Crosses, Lanet, Kenya
1Tura Isako, *2GM Muriithi, 3PG Mwangi, 4V Kimindu,5L Muema
1,2,3,4,5Kenya Agricultural and Livestock Research Organization (KALRO), Beef Research Institute, Lanet, P.O.BOX 3840
-20100 Nakuru, Kenya
The study was conducted to assess Improved Boran production and their crosses under ranching
conditions. Growth performance, reproductive performance, carcass traits and their profitability
were analyzed using primary data from Beef Research Institute, Lanet Centre and secondary data
from desktop study. Cash flow analysis was used to compute the profitability of Improved Borans
under free range production system as well as a hypothetical case of intensive system. The Boran
breeding bulls, steers, were identified as the major receipts. The Centre reported the average
birth, weaning, and yearling steer weights of Improved Boran at 26.8kg, 149kg (7 months) and 202
kg respectively. Yearling steer weights for Boran crossed with Sahiwal weighed 207kg. Calve
survival rate was 94.20% and 95.2% for Improved Boran and Boran crossed with Sahiwal
respectively. A gross profit at 99.8% and 98.6% of total unit operating cost for Improved Boran
and Boran crosses enterprises respectively was reported under free range system. A hypothetical
case of 100 Improved Boran steers under feedlotting for three months reported gross profit at
65.6% of total unit operating cost. However, the unit cost of production in free range system was
lower than intensive and the entrepreneur should seize the opportunity of economics of scale.
Keywords: Cash-flow budget, Enterprise, Feedlot, Livestock records, Production system
INTRODUCTION
The beef cattle farming is of great importance in Kenya,
notably as a source of employment and income for more
than 80% of the communities in the ASALs. In some
pastoral areas, Improved Boran bulls have been
introduced for upgrading indigenous cattle (Kahi et al
2006). The Improved Boran, medium-sized cattle breed of
East African origin, which are mainly found in private
ranches and government farm in Kenya constitute 2% of
Kenyan cattle population. The breed is most widely kept
primarily for beef production in the semi-arid zones of
Kenya because of their relative adaptability to the local
environment; achieved through generations of natural and
artificial selection in conditions of high ambient
temperature, poor feed quality, and high disease and
parasite challenge (Rewe et al 2006).
Growth performance of an animal at various stages of the
growth curve directly influences profitability in beef
production systems (Newman and Coffey 1999). The
Improved Boran, for instance is heavier at birth averaging
30 kg (DAGRIS, 2006) and at Abernossa ranch in Ethiopia
the weaning weight was estimated at 158 kg (Banjaw and
Haile-Mariam, 1994). This variation indicates the potential
that can be exploited by within breed selection and
improvement in management (Aynalem et al 2017). In a
beef cross-bred population where Angus was used as dam
line, the performance of the Boran cross was found to be
comparable with known beef cattle breeds. Mwenya
(1993) evaluated the impact of introduction of exotic cattle
in East Africa and Southern Africa and showed that the
contribution to meat production of the exotic beef cattle
and their crosses was similar or even worse than that from
indigenous cattle. As a result, interest to focus on
indigenous cattle genetic resources was gradually
developed (Aynalem et al 2017).
The Boran cattle provide livelihood to thousands of
households in the arid and semiarid lands of Kenya. Due
to their superior adaptive and productive traits in
comparison to other breeds of cattle, they have also
become a popular choice for breeders in Eastern and
*Corresponding Author: GM Muriithi, Kenya Agricultural
and Livestock Research Organization (KALRO), Beef
Research Institute, Lanet, P.O.BOX 3840 -20100 Nakuru,
Kenya. E-mail: murithigm@gmail.com
Case Study
Vol. 5(2), pp. 563-568, July, 2019. © www.premierpublishers.org, ISSN: 2167-0477
Journal of Agricultural Economics and Rural Development
Beef Cattle Production and Wealth Creation: Evidence from Improved Boran Cattle and Crosses, Lanet, Kenya
Isako et al. 564
Southern Africa. Continued genetic improvement of the
breed is important, and therefore accurate performance
and pedigree records are required (Kios et al 2012). The
Boran breed has been found to be fast growing and fertile
compared to other indigenous cattle breeds (Haile et al
2011). The beef sub sector has continued to face
persistent challenges associated with poor quality breeds,
poor finishing of beef cattle, inadequate quality pasture
during the dry season and diseases which limit productivity
and access to markets. The lack of value addition;
appropriate models for domestic and export markets and
information sharing platforms also limit commercialization
of the industry.
Kenya agricultural and Livestock Research Organization
(KALRO) at Beef Research Institute (BRI), Lanet Centre
holds the mandate of carrying out research in beef cattle
production, improvement and conservation using product
value chain approach. Several years of on-station
research at Lanet Beef Research Centre has generated
wealth of data. This data have been used for genetic
improvement, improved nutrition, husbandry techniques,
animal health as well as generation of data used to analyze
economic sustainability and profitability of beef farming
enterprise.
METHODOLOGY
This study was conducted in Nakuru County and
specifically at KALRO-Lanet in Mogotio Nakuru sub-
county (Fig.1)
Study area
Figure1 below shows the location of the study area.
Figure 1: Map of Nakuru County, Kenya showing the
location of study area Kalro-Lanet at Nakuru Ward (GPS.
Lat -0.2858760, Long 36.18777200, Elev. 6446ft)
The study employed stratified and purposive random
sampling technique in drawing the sample size used in
growth, reproductive performance and profitability
assessment respectively. For growth performance
included; improved Boran (n=190), Boran crossed with
Sahiwal (70), Boran crossed with Red poll (30) and Boran
crossed with Friesian (56). The parameters considered
were birth weights (BWT), Weaning weights (WWT),
Average daily gain (ADG) and Yearling weights (YWT). In
reproductive performance; improved Boran (n=172),
Boran crossed with Sahiwal (63) and Boran crossed with
Friesian (72). The parameters considered were Age at first
service, age at first calving, calving interval and survival
rate before weaning. In the profitability assessment a
sample size of (n=134) Boran crosses and (n=100) of
improved Boran were purposively sampled. The study
used secondary data. It was sourced from BRI-Lanet
livestock data, sales, farm inputs production and
procurement records. The data was cleaned and
organized for the purpose of the study. Descriptive
statistics were generated using Microsoft Excel version
2013. For profitability assessment cash flow analysis was
employed.
RESULTS
Below are the results of this study, which includes;
breeding, feeding, health management, growth
performance, reproductive performance, carcass traits
and evaluation of profitability for improved Boran
enterprise.
Breeding Management
From this study it was evidenced that the Boran cattle in
Lanet are reared and grown under ranching conditions.
Natural mating is practiced with breeding bulls sourced
from external ranches. The bulls are sourced on rotational
basis from different ranches and their individual records
traced before purchase to avoid inbreeding. Bulls are
allowed to breed throughout the year with conception rates
of 89% recorded in the year 2017, unlike previous years
where the highest conception rate was 72% under
seasonal breeding regime with a bull cow ratio of 1:60.
Quantitative traits mainly considered in our selection
criteria are: birth weight, fecundity, weaning weights, age
at first conception/mating, mature weights among others.
Qualitative traits like coat colour is considered for socio-
cultural reasons. The present Boran cattle improvement
activities mainly focus on selection, controlled breeding
and registration of breeding stock with Boran breeders’
association of Kenya. In addition, a cross-breeding
program to promote beef-dairy system in ASALs is also
running on pilot basis.
Feeding management
The Centre practices extensive free-range system where
beef animals utilize natural grass species and shrubs
Beef Cattle Production and Wealth Creation: Evidence from Improved Boran Cattle and Crosses, Lanet, Kenya
J. Agric. Econ. Rural Devel. 565
commonly found at the Centre’s rangelands. These grass
species and shrubs includes: -Themeda triandra, Panicum
maximum, Cenchrusciliaris, Digitaria abyssinica, Digitaria
milanjiana, Eragrostis superba, Eragrostis cilianensis,
Setaria spp., Cynodon spp., and Brachiaria spp. Some of
the natural legumes include Leucaena leucocephala,
Stylosanthes fruticosa, macrotyloma axillare and Acacia
spp.
Seasonal variation of the above natural feed resources at
the Centre and its environs has been a major constraint to
beef cattle productivity and this has necessitated
introduction and testing of climate smart pasture and
fodder such as indigenous Brachiaria spp., forage
Sorghum, Rhodes grass (Chloris gayana), sweet potato
vines and tree Lucerne to mitigate during periods of feed
gaps. The conservation of these grasses and fodder have
been made possible through technologies such as hay
making, silage making, and feed blocks as a supplement
source.
Health Management
Dipping is the main tick control method used in the ranch
weekly, but during peak rainy seasons tick load is usually
high and thus requires dipping twice a week. Vaccination
against foot and mouth diseases, black quarter/anthrax,
lumpy skin and East Cost Fever are done as scheduled by
the Sub-County Veterinary Office. Diagnosis and
treatment of other common diseases are conducted at the
Centre. The de-worming is done thrice a year and mineral
salts are supplemented after every two weeks.
Growth Performance
Growth performance of Boran and their crosses as beef
animals were evaluated in our ranching conditions in Table
1. The table revealed that Boran crossed with Sahiwal
crosses had higher birth weight of 28.20 kg compared to
Improved Boran with 26.80 and other crosses which
recorded lower birth weights. Boran crossed with Sahiwal
crosses maintained higher weaning weights of 152kg
compared with Improved Boran with 149kg at seven
months. However, average daily weights are higher for
Boran with 500g/day while Sahiwal crossed with Boran
recorded 400g/day. At age of one-year, Improved Boran
had 202kg while Boran crossed with Sahiwal with 207kg,
and Boran Frisian. At 36 Months of age, improved Boran
has 400kg, Boran crossed Sahiwal crosses have 420kg
and Boran crossed with Frisians 351.67kg.
Table 1: Growth performance of Improved Boran and their crosses in Beef Centre Lanet.
Genotypes BWT (KG) WWT (KG) ADG(g) YWT(Kg) 3 WT (kg)
Improved Boran (n=190) 26.80 149 500 202 400
Boran x Sahiwal cross(n=70) 28.20 152 400 207 420
Boran x red poll(n=30) 22.6 - - - -
Boran x Frisian(n=56) 27.00 95 320 129.40 351.67
BWT—Birth weight; WWT—weaning weight; ADG—pre-weaning average daily gain; YWT—yearling weight
Source: Authors 2018
Reproductive Performance
Reproductive traits describe the animal’s ability to
conceive, calve down and suckle the calf to weaning
successfully (Davis, 1993). These traits affect the herd
size and off take and are commonly evaluated by
analyzing female reproductive traits but not male fertility
traits that include semen quality and quantity traits and
scrotal size. Comparisons of the reproductive performance
of Improved Boran and their crosses are summarized in
Table 2.
Table 2: Reproductive performance of improved Boran and their crosses
Breed Age at first
service
Age at first
calving
Calving interval
(days)
Calving rate
(annual)
Survival rate
before weaning
Improved Boran (n=172) 24 38 420 79% 94.20%
Boran x Sahiwal cross (n=63) 26 40 480 72% 95.24%
Boran x red poll (n=) - - - - -
Boran x Frisian (n=72) 20 30 360 66% 89.40%
Source: Authors 2018
Carcass traits
Carcass traits are broadly divided into carcass quality
(composition) and carcass quantity traits. The carcass
quality traits include: marbling score, fat thickness, kidney,
pelvic and the heart fat percentages, rib eye area and yield
grade. On the other hand, carcass quantity traits comprise
of pre-slaughter live weight, hot carcass weight and
dressing percentage (Pariacote et al 1998).
Evaluation of profitability for Improved Boran
enterprise by cash flow analysis
Cash flow analysis of 332 Improved Boran beef cattle
under free range system.
An income of KES 1,077,330, 540,000 and 98,000 was
obtained from the sale of Improved Boran steers, bulls and
manure respectively totaling to KES 1,715,330. A profit of
Beef Cattle Production and Wealth Creation: Evidence from Improved Boran Cattle and Crosses, Lanet, Kenya
Isako et al. 566
Ksh. 226,234 was attained while the operating cost per unit
was KES 122.52 holding all other factors constant. The
cost of feeds was not considered in the cash analysis as it
was assumed that the system under review involves the
herd grazingon the natural pasture. The analysis showed
that gross profit (surplus) was at 99.8% of total unit
operating cost implying the enterprise was operating at a
profit. The Improved Boran breeding bull attained the
highest profit of KES 115,626 per unit and a gross profit of
99.8% of the total unit cost relative to Improved Boran
heifer and steer that attained KES 97,521 and KES 68,384
with gross profits of 97.5% and 94% respectively.
Cash flow analysis for 134 crosses under free range
system.
The study revealed gross profit 98.6% of total unit
operating cost implying that Boran crosses on free range
system are equally profitable. In the analysis only 8-unit
crosses were sold within the year 2017 attaining a profit of
KES 396,230 and gross income of KES 96,9625 with KES
1,322 as the total unit cost (Table 3).
Table 3: Cash flow analysis for 134 crosses under free range system.
JAN FEB MAR APR MAY JUN JULY AUG SEP OCT NOV DEC
Cash receipt/outputs
Crosses (FressianxBoran) 137,740.00 299,925.00 56,730.00 - - - - - - - - -
Manure 23,000.00 11,000.00 26,000.00 5,000.00 - 14,000.00 - - - - -
Number of crosses sold 2 5 1 - - - - - - - - -
Total cash receipt/inputs 160,740.00 310,925.00 82,730.00 5,000.00 - 14,000.00
Disbursements/inpu
ts
Salts 2,287.03 2,142.72 2,286.77 2,430.98 2,451.58 2,554.59 2,636.99 2,678.20 2,719.40 2,760.60 2,760.60 2,760.60
Acaricides 4,653.46 4,359.66 41.92 4,946.68 4,988.61 5,198.21 5,365.89 5,449.74 5,533.58 5,617.42 5,617.42 5,617.42
Vaccination 3,254.89 44,174.76 16,080.00
Dewormers 2,524.62 2,863.73 3,015.00
Treatment 1,729.04 1,726.72 1,418.80 1,437.99 1,400.00 1,448.80 1,475.25 1,430.42 1,406.90 1,899.38 1,009.04 1,009.04
Total Disbursement/input 8,669.53 8,229.10 9,527.00 8,815.65 8,840.18 9,201.59 12,341.87 53,733.11 9,659.87 10,277.40 28,482.06 9,387.06
Total operating cost /unit 78.10 79.13 85.83 74.71 74.29 74.21 96.42 413.33 73.18 76.70 212.55 70.05
Number of crosses in the
herd
111 104 111 118 119 124 128 130 132 134 134 134
Monthly change 152,070.47 302,695.90 73,203.00 (3,815.65) (8,840.18) 4,798.41 (12,341.87) (53,733.11) (9,659.87) (10,277.40) (28,482.06) (9,387.06)
Cummulative monthly
change
152,070.47 454,766.37 527,969.38 524,153.72 515,313.54 520,111.94 507,770.07 454,036.96 444,377.09 434,099.69 405,617.63 396,230.57
Total cost 177,164.40
Total unit cost 1,322.12
Gross profit (surplus ) @ 65.56% of total unit operating
cost
98.08
Selling price 68,870.00
*The analysis is specifically for 134 crosses; the rest of the herd is not considered in the analysis
,++Gross income= net profit i.e. 226,234.00+1,898,990.00(total cash receipts) =Kush 2,125,224 396230.57+573395 969,625.50
Hypothetical cash flow analysis for 100 Improved
Boran steers under intensive system for three months
This study revealed a gross profit of 65.6% of the total unit
operating cost which was relatively lower than that of free-
range system, implying that there is more profit in free
range system than intensive system since the latter is
labour intensive (Table 4).
Discussion
Based on the study findings, it was observed that, for high
productivity and profitability of improved Boran cattle and
their crosses, a focus breeding programme is
indispensable. In the centre where the study was
conducted, the bulls are sourced on rotational basis from
different ranches and their industrial records traced before
purchase to avoid inbreeding. For the feeding, the centre
practices extensive free-range system where the beef
cattle utilizes natural grass species and shrubs commonly
found at the farm`s rangelands. The centre has been
experiencing seasonal variation of the aforementioned
feed resources and scenario has necessitated introduction
and testing of climate smart pasture and fodders to
address the feed gaps.
Health management of improved Boran and their crosses
is a great contributory factor to the level of profitability of
the enterprise. In the study area [centre] dipping is the
main tick control method applied where it is done weekly
but twice during peak rainy seasons. Vaccinations are
done as scheduled by the county government veterinary
office. From the study finding, it was revealed that Boran
crossed with Sahiwal cross shown the highest birth weight.
The same cross maintained the highest weaning weights
compared with the other Boran crosses. Average daily
weights were the highest for improved Boran. This
attribution makes improved Boran to be the best in
finishing for beef and more profitable since its daily weight
gain is high. At the age of one year the Boran crossed with
Sahiwal demonstrated the highest weight unlike all the
other Boran crosses. After three years of age, improved
Boran exhibited the highest body live weight.
Beef Cattle Production and Wealth Creation: Evidence from Improved Boran Cattle and Crosses, Lanet, Kenya
J. Agric. Econ. Rural Devel. 567
Table 4: Hypothetical cash flow analysis for 100 Improved Boran steers under intensive system.
Cash receipt/output First Month Second Month Third Month
steers for slaughter 8,000,000.00
manure 2,300.00 2,300.00 2,300.00
Total Cash receipt/ income 2,300.00 2,300.00 8,002,300.00
Disbursements/inputs
*+Boran steers for Fattening 4,000,000.00 - -
*Feeds (Formulated ration) 330,000.00 330,000.00 330,000.00
**Labour 75,000.00 75,000.00 75,000.00
salts 2,060.38 2,060.00 2,060.15
acaricides 4,192.31 4,191.98 4,192.11
vaccination 2,930.00
dewormers 2,270.00
treatment 1,557.69 1,660.31 1,278.20
Fuel 384.62 384.62 384.62
Total Disbursement/input 4,418,395.00 413,296.91 412,915.07
monthly cash change (4,416,095.00) (410,996.91) 7,589,384.93
cumulative cash change (4,416,095.00) (4,827,091.91) *** 2,762,293.03
Total cost 5,244,606.97
Total unit cost 52,446.07
Gross profit (surplus) @ 65.6% of total unit operating cost 65.6
Selling price 80,000.00
*the economic scale aspect has a big influence on the net profit since the size of the crosses herd has been 134
*The feed ration formulated is for intensive feedlot
**For intensive feedlot labour requirement is 50 animals requires 5Man days (MD)@250/= per day
*+ @ fattening steers bought at Ksh. 40,000
*** The total NET PROFIT is KSh. 2,762,293.03
*Exchange used in computation I USD=KE100.65
++++GROSS INCOME=total cash receipts+ Net profit i.e. 8,006,900.00+2,762,293.03=Ksh.10,769,193.03
Source: Authors 2018
For the reproductive performance of improved Boran and
their crosses, Boran crossed with Sahiwal cross shown the
highest age at first service where the same cross
demonstrated the highest age at first calving interval.
However, the improved Boran revealed the highest calving
rate annually and survival rate before weaning.Based on
the evaluation of profitability for improved Boran enterprise
by cash flow analysis, the study revealed that the
CONCLUSIONS.
Both intensive and free-range production systems are
profitable. However, for the farmer to maximize profit has
to demonstrate the prescribed routine management
practices. For the feedlot system the price of the beef cattle
to fatten for three months should be relatively low in order
to competitively get selling price which will lead to having
profit, otherwise the unit operating cost is higher relative to
free range system.
ACKNOWLEDGEMENT
The authors wish to acknowledge the staff working in the
livestock records and socioeconomic research
programmes at Beef Research Institute-Lanet for availing
the data used in this case-study.
REFERENCES
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AzageT(2017).Breeding strategy to improve Ethiopian
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Banjaw K and Mariam MH(1994). Productivity of Boran
cattle and their Friesian crosses at Abernossa ranch,
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DAGRIS (2006) Domestic Animal Genetic Resources
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https://www.ilri.org/dagris
Davis GP (1993). Genetic parameters for tropical beef
cattle in Northern Australia: A review. Australian
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Demeke S, Neser FWC and Schoeman S.J. 2003 Early
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Beef Cattle Production and Wealth Creation: Evidence from Improved Boran Cattle and Crosses, Lanet, Kenya
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Haile A (2011). Breeding strategy to improve Ethiopian
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Accepted 10 June 2019
Citation: Isako T, Muriithi GM, Mwangi PG, Kimindu V,
Muema L (2019). Beef Cattle Production and Wealth
Creation: Evidence from Improved Boran Cattle and
Crosses, Lanet, Kenya. Journal of Agricultural Economics
and Rural Development, 5(2): 563-568.
Copyright: © 2019: Isako et al. This is an open-access
article distributed under the terms of the Creative
Commons Attribution License, which permits unrestricted
use, distribution, and reproduction in any medium,
provided the original author and source are cited.

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Beef Cattle Production and Wealth Creation: Evidence from Improved Boran Cattle and Crosses, Lanet, Kenya

  • 1. Beef Cattle Production and Wealth Creation: Evidence from Improved Boran Cattle and Crosses, Lanet, Kenya AJAERD Beef Cattle Production and Wealth Creation: Evidence from Improved Boran Cattle and Crosses, Lanet, Kenya 1Tura Isako, *2GM Muriithi, 3PG Mwangi, 4V Kimindu,5L Muema 1,2,3,4,5Kenya Agricultural and Livestock Research Organization (KALRO), Beef Research Institute, Lanet, P.O.BOX 3840 -20100 Nakuru, Kenya The study was conducted to assess Improved Boran production and their crosses under ranching conditions. Growth performance, reproductive performance, carcass traits and their profitability were analyzed using primary data from Beef Research Institute, Lanet Centre and secondary data from desktop study. Cash flow analysis was used to compute the profitability of Improved Borans under free range production system as well as a hypothetical case of intensive system. The Boran breeding bulls, steers, were identified as the major receipts. The Centre reported the average birth, weaning, and yearling steer weights of Improved Boran at 26.8kg, 149kg (7 months) and 202 kg respectively. Yearling steer weights for Boran crossed with Sahiwal weighed 207kg. Calve survival rate was 94.20% and 95.2% for Improved Boran and Boran crossed with Sahiwal respectively. A gross profit at 99.8% and 98.6% of total unit operating cost for Improved Boran and Boran crosses enterprises respectively was reported under free range system. A hypothetical case of 100 Improved Boran steers under feedlotting for three months reported gross profit at 65.6% of total unit operating cost. However, the unit cost of production in free range system was lower than intensive and the entrepreneur should seize the opportunity of economics of scale. Keywords: Cash-flow budget, Enterprise, Feedlot, Livestock records, Production system INTRODUCTION The beef cattle farming is of great importance in Kenya, notably as a source of employment and income for more than 80% of the communities in the ASALs. In some pastoral areas, Improved Boran bulls have been introduced for upgrading indigenous cattle (Kahi et al 2006). The Improved Boran, medium-sized cattle breed of East African origin, which are mainly found in private ranches and government farm in Kenya constitute 2% of Kenyan cattle population. The breed is most widely kept primarily for beef production in the semi-arid zones of Kenya because of their relative adaptability to the local environment; achieved through generations of natural and artificial selection in conditions of high ambient temperature, poor feed quality, and high disease and parasite challenge (Rewe et al 2006). Growth performance of an animal at various stages of the growth curve directly influences profitability in beef production systems (Newman and Coffey 1999). The Improved Boran, for instance is heavier at birth averaging 30 kg (DAGRIS, 2006) and at Abernossa ranch in Ethiopia the weaning weight was estimated at 158 kg (Banjaw and Haile-Mariam, 1994). This variation indicates the potential that can be exploited by within breed selection and improvement in management (Aynalem et al 2017). In a beef cross-bred population where Angus was used as dam line, the performance of the Boran cross was found to be comparable with known beef cattle breeds. Mwenya (1993) evaluated the impact of introduction of exotic cattle in East Africa and Southern Africa and showed that the contribution to meat production of the exotic beef cattle and their crosses was similar or even worse than that from indigenous cattle. As a result, interest to focus on indigenous cattle genetic resources was gradually developed (Aynalem et al 2017). The Boran cattle provide livelihood to thousands of households in the arid and semiarid lands of Kenya. Due to their superior adaptive and productive traits in comparison to other breeds of cattle, they have also become a popular choice for breeders in Eastern and *Corresponding Author: GM Muriithi, Kenya Agricultural and Livestock Research Organization (KALRO), Beef Research Institute, Lanet, P.O.BOX 3840 -20100 Nakuru, Kenya. E-mail: murithigm@gmail.com Case Study Vol. 5(2), pp. 563-568, July, 2019. © www.premierpublishers.org, ISSN: 2167-0477 Journal of Agricultural Economics and Rural Development
  • 2. Beef Cattle Production and Wealth Creation: Evidence from Improved Boran Cattle and Crosses, Lanet, Kenya Isako et al. 564 Southern Africa. Continued genetic improvement of the breed is important, and therefore accurate performance and pedigree records are required (Kios et al 2012). The Boran breed has been found to be fast growing and fertile compared to other indigenous cattle breeds (Haile et al 2011). The beef sub sector has continued to face persistent challenges associated with poor quality breeds, poor finishing of beef cattle, inadequate quality pasture during the dry season and diseases which limit productivity and access to markets. The lack of value addition; appropriate models for domestic and export markets and information sharing platforms also limit commercialization of the industry. Kenya agricultural and Livestock Research Organization (KALRO) at Beef Research Institute (BRI), Lanet Centre holds the mandate of carrying out research in beef cattle production, improvement and conservation using product value chain approach. Several years of on-station research at Lanet Beef Research Centre has generated wealth of data. This data have been used for genetic improvement, improved nutrition, husbandry techniques, animal health as well as generation of data used to analyze economic sustainability and profitability of beef farming enterprise. METHODOLOGY This study was conducted in Nakuru County and specifically at KALRO-Lanet in Mogotio Nakuru sub- county (Fig.1) Study area Figure1 below shows the location of the study area. Figure 1: Map of Nakuru County, Kenya showing the location of study area Kalro-Lanet at Nakuru Ward (GPS. Lat -0.2858760, Long 36.18777200, Elev. 6446ft) The study employed stratified and purposive random sampling technique in drawing the sample size used in growth, reproductive performance and profitability assessment respectively. For growth performance included; improved Boran (n=190), Boran crossed with Sahiwal (70), Boran crossed with Red poll (30) and Boran crossed with Friesian (56). The parameters considered were birth weights (BWT), Weaning weights (WWT), Average daily gain (ADG) and Yearling weights (YWT). In reproductive performance; improved Boran (n=172), Boran crossed with Sahiwal (63) and Boran crossed with Friesian (72). The parameters considered were Age at first service, age at first calving, calving interval and survival rate before weaning. In the profitability assessment a sample size of (n=134) Boran crosses and (n=100) of improved Boran were purposively sampled. The study used secondary data. It was sourced from BRI-Lanet livestock data, sales, farm inputs production and procurement records. The data was cleaned and organized for the purpose of the study. Descriptive statistics were generated using Microsoft Excel version 2013. For profitability assessment cash flow analysis was employed. RESULTS Below are the results of this study, which includes; breeding, feeding, health management, growth performance, reproductive performance, carcass traits and evaluation of profitability for improved Boran enterprise. Breeding Management From this study it was evidenced that the Boran cattle in Lanet are reared and grown under ranching conditions. Natural mating is practiced with breeding bulls sourced from external ranches. The bulls are sourced on rotational basis from different ranches and their individual records traced before purchase to avoid inbreeding. Bulls are allowed to breed throughout the year with conception rates of 89% recorded in the year 2017, unlike previous years where the highest conception rate was 72% under seasonal breeding regime with a bull cow ratio of 1:60. Quantitative traits mainly considered in our selection criteria are: birth weight, fecundity, weaning weights, age at first conception/mating, mature weights among others. Qualitative traits like coat colour is considered for socio- cultural reasons. The present Boran cattle improvement activities mainly focus on selection, controlled breeding and registration of breeding stock with Boran breeders’ association of Kenya. In addition, a cross-breeding program to promote beef-dairy system in ASALs is also running on pilot basis. Feeding management The Centre practices extensive free-range system where beef animals utilize natural grass species and shrubs
  • 3. Beef Cattle Production and Wealth Creation: Evidence from Improved Boran Cattle and Crosses, Lanet, Kenya J. Agric. Econ. Rural Devel. 565 commonly found at the Centre’s rangelands. These grass species and shrubs includes: -Themeda triandra, Panicum maximum, Cenchrusciliaris, Digitaria abyssinica, Digitaria milanjiana, Eragrostis superba, Eragrostis cilianensis, Setaria spp., Cynodon spp., and Brachiaria spp. Some of the natural legumes include Leucaena leucocephala, Stylosanthes fruticosa, macrotyloma axillare and Acacia spp. Seasonal variation of the above natural feed resources at the Centre and its environs has been a major constraint to beef cattle productivity and this has necessitated introduction and testing of climate smart pasture and fodder such as indigenous Brachiaria spp., forage Sorghum, Rhodes grass (Chloris gayana), sweet potato vines and tree Lucerne to mitigate during periods of feed gaps. The conservation of these grasses and fodder have been made possible through technologies such as hay making, silage making, and feed blocks as a supplement source. Health Management Dipping is the main tick control method used in the ranch weekly, but during peak rainy seasons tick load is usually high and thus requires dipping twice a week. Vaccination against foot and mouth diseases, black quarter/anthrax, lumpy skin and East Cost Fever are done as scheduled by the Sub-County Veterinary Office. Diagnosis and treatment of other common diseases are conducted at the Centre. The de-worming is done thrice a year and mineral salts are supplemented after every two weeks. Growth Performance Growth performance of Boran and their crosses as beef animals were evaluated in our ranching conditions in Table 1. The table revealed that Boran crossed with Sahiwal crosses had higher birth weight of 28.20 kg compared to Improved Boran with 26.80 and other crosses which recorded lower birth weights. Boran crossed with Sahiwal crosses maintained higher weaning weights of 152kg compared with Improved Boran with 149kg at seven months. However, average daily weights are higher for Boran with 500g/day while Sahiwal crossed with Boran recorded 400g/day. At age of one-year, Improved Boran had 202kg while Boran crossed with Sahiwal with 207kg, and Boran Frisian. At 36 Months of age, improved Boran has 400kg, Boran crossed Sahiwal crosses have 420kg and Boran crossed with Frisians 351.67kg. Table 1: Growth performance of Improved Boran and their crosses in Beef Centre Lanet. Genotypes BWT (KG) WWT (KG) ADG(g) YWT(Kg) 3 WT (kg) Improved Boran (n=190) 26.80 149 500 202 400 Boran x Sahiwal cross(n=70) 28.20 152 400 207 420 Boran x red poll(n=30) 22.6 - - - - Boran x Frisian(n=56) 27.00 95 320 129.40 351.67 BWT—Birth weight; WWT—weaning weight; ADG—pre-weaning average daily gain; YWT—yearling weight Source: Authors 2018 Reproductive Performance Reproductive traits describe the animal’s ability to conceive, calve down and suckle the calf to weaning successfully (Davis, 1993). These traits affect the herd size and off take and are commonly evaluated by analyzing female reproductive traits but not male fertility traits that include semen quality and quantity traits and scrotal size. Comparisons of the reproductive performance of Improved Boran and their crosses are summarized in Table 2. Table 2: Reproductive performance of improved Boran and their crosses Breed Age at first service Age at first calving Calving interval (days) Calving rate (annual) Survival rate before weaning Improved Boran (n=172) 24 38 420 79% 94.20% Boran x Sahiwal cross (n=63) 26 40 480 72% 95.24% Boran x red poll (n=) - - - - - Boran x Frisian (n=72) 20 30 360 66% 89.40% Source: Authors 2018 Carcass traits Carcass traits are broadly divided into carcass quality (composition) and carcass quantity traits. The carcass quality traits include: marbling score, fat thickness, kidney, pelvic and the heart fat percentages, rib eye area and yield grade. On the other hand, carcass quantity traits comprise of pre-slaughter live weight, hot carcass weight and dressing percentage (Pariacote et al 1998). Evaluation of profitability for Improved Boran enterprise by cash flow analysis Cash flow analysis of 332 Improved Boran beef cattle under free range system. An income of KES 1,077,330, 540,000 and 98,000 was obtained from the sale of Improved Boran steers, bulls and manure respectively totaling to KES 1,715,330. A profit of
  • 4. Beef Cattle Production and Wealth Creation: Evidence from Improved Boran Cattle and Crosses, Lanet, Kenya Isako et al. 566 Ksh. 226,234 was attained while the operating cost per unit was KES 122.52 holding all other factors constant. The cost of feeds was not considered in the cash analysis as it was assumed that the system under review involves the herd grazingon the natural pasture. The analysis showed that gross profit (surplus) was at 99.8% of total unit operating cost implying the enterprise was operating at a profit. The Improved Boran breeding bull attained the highest profit of KES 115,626 per unit and a gross profit of 99.8% of the total unit cost relative to Improved Boran heifer and steer that attained KES 97,521 and KES 68,384 with gross profits of 97.5% and 94% respectively. Cash flow analysis for 134 crosses under free range system. The study revealed gross profit 98.6% of total unit operating cost implying that Boran crosses on free range system are equally profitable. In the analysis only 8-unit crosses were sold within the year 2017 attaining a profit of KES 396,230 and gross income of KES 96,9625 with KES 1,322 as the total unit cost (Table 3). Table 3: Cash flow analysis for 134 crosses under free range system. JAN FEB MAR APR MAY JUN JULY AUG SEP OCT NOV DEC Cash receipt/outputs Crosses (FressianxBoran) 137,740.00 299,925.00 56,730.00 - - - - - - - - - Manure 23,000.00 11,000.00 26,000.00 5,000.00 - 14,000.00 - - - - - Number of crosses sold 2 5 1 - - - - - - - - - Total cash receipt/inputs 160,740.00 310,925.00 82,730.00 5,000.00 - 14,000.00 Disbursements/inpu ts Salts 2,287.03 2,142.72 2,286.77 2,430.98 2,451.58 2,554.59 2,636.99 2,678.20 2,719.40 2,760.60 2,760.60 2,760.60 Acaricides 4,653.46 4,359.66 41.92 4,946.68 4,988.61 5,198.21 5,365.89 5,449.74 5,533.58 5,617.42 5,617.42 5,617.42 Vaccination 3,254.89 44,174.76 16,080.00 Dewormers 2,524.62 2,863.73 3,015.00 Treatment 1,729.04 1,726.72 1,418.80 1,437.99 1,400.00 1,448.80 1,475.25 1,430.42 1,406.90 1,899.38 1,009.04 1,009.04 Total Disbursement/input 8,669.53 8,229.10 9,527.00 8,815.65 8,840.18 9,201.59 12,341.87 53,733.11 9,659.87 10,277.40 28,482.06 9,387.06 Total operating cost /unit 78.10 79.13 85.83 74.71 74.29 74.21 96.42 413.33 73.18 76.70 212.55 70.05 Number of crosses in the herd 111 104 111 118 119 124 128 130 132 134 134 134 Monthly change 152,070.47 302,695.90 73,203.00 (3,815.65) (8,840.18) 4,798.41 (12,341.87) (53,733.11) (9,659.87) (10,277.40) (28,482.06) (9,387.06) Cummulative monthly change 152,070.47 454,766.37 527,969.38 524,153.72 515,313.54 520,111.94 507,770.07 454,036.96 444,377.09 434,099.69 405,617.63 396,230.57 Total cost 177,164.40 Total unit cost 1,322.12 Gross profit (surplus ) @ 65.56% of total unit operating cost 98.08 Selling price 68,870.00 *The analysis is specifically for 134 crosses; the rest of the herd is not considered in the analysis ,++Gross income= net profit i.e. 226,234.00+1,898,990.00(total cash receipts) =Kush 2,125,224 396230.57+573395 969,625.50 Hypothetical cash flow analysis for 100 Improved Boran steers under intensive system for three months This study revealed a gross profit of 65.6% of the total unit operating cost which was relatively lower than that of free- range system, implying that there is more profit in free range system than intensive system since the latter is labour intensive (Table 4). Discussion Based on the study findings, it was observed that, for high productivity and profitability of improved Boran cattle and their crosses, a focus breeding programme is indispensable. In the centre where the study was conducted, the bulls are sourced on rotational basis from different ranches and their industrial records traced before purchase to avoid inbreeding. For the feeding, the centre practices extensive free-range system where the beef cattle utilizes natural grass species and shrubs commonly found at the farm`s rangelands. The centre has been experiencing seasonal variation of the aforementioned feed resources and scenario has necessitated introduction and testing of climate smart pasture and fodders to address the feed gaps. Health management of improved Boran and their crosses is a great contributory factor to the level of profitability of the enterprise. In the study area [centre] dipping is the main tick control method applied where it is done weekly but twice during peak rainy seasons. Vaccinations are done as scheduled by the county government veterinary office. From the study finding, it was revealed that Boran crossed with Sahiwal cross shown the highest birth weight. The same cross maintained the highest weaning weights compared with the other Boran crosses. Average daily weights were the highest for improved Boran. This attribution makes improved Boran to be the best in finishing for beef and more profitable since its daily weight gain is high. At the age of one year the Boran crossed with Sahiwal demonstrated the highest weight unlike all the other Boran crosses. After three years of age, improved Boran exhibited the highest body live weight.
  • 5. Beef Cattle Production and Wealth Creation: Evidence from Improved Boran Cattle and Crosses, Lanet, Kenya J. Agric. Econ. Rural Devel. 567 Table 4: Hypothetical cash flow analysis for 100 Improved Boran steers under intensive system. Cash receipt/output First Month Second Month Third Month steers for slaughter 8,000,000.00 manure 2,300.00 2,300.00 2,300.00 Total Cash receipt/ income 2,300.00 2,300.00 8,002,300.00 Disbursements/inputs *+Boran steers for Fattening 4,000,000.00 - - *Feeds (Formulated ration) 330,000.00 330,000.00 330,000.00 **Labour 75,000.00 75,000.00 75,000.00 salts 2,060.38 2,060.00 2,060.15 acaricides 4,192.31 4,191.98 4,192.11 vaccination 2,930.00 dewormers 2,270.00 treatment 1,557.69 1,660.31 1,278.20 Fuel 384.62 384.62 384.62 Total Disbursement/input 4,418,395.00 413,296.91 412,915.07 monthly cash change (4,416,095.00) (410,996.91) 7,589,384.93 cumulative cash change (4,416,095.00) (4,827,091.91) *** 2,762,293.03 Total cost 5,244,606.97 Total unit cost 52,446.07 Gross profit (surplus) @ 65.6% of total unit operating cost 65.6 Selling price 80,000.00 *the economic scale aspect has a big influence on the net profit since the size of the crosses herd has been 134 *The feed ration formulated is for intensive feedlot **For intensive feedlot labour requirement is 50 animals requires 5Man days (MD)@250/= per day *+ @ fattening steers bought at Ksh. 40,000 *** The total NET PROFIT is KSh. 2,762,293.03 *Exchange used in computation I USD=KE100.65 ++++GROSS INCOME=total cash receipts+ Net profit i.e. 8,006,900.00+2,762,293.03=Ksh.10,769,193.03 Source: Authors 2018 For the reproductive performance of improved Boran and their crosses, Boran crossed with Sahiwal cross shown the highest age at first service where the same cross demonstrated the highest age at first calving interval. However, the improved Boran revealed the highest calving rate annually and survival rate before weaning.Based on the evaluation of profitability for improved Boran enterprise by cash flow analysis, the study revealed that the CONCLUSIONS. Both intensive and free-range production systems are profitable. However, for the farmer to maximize profit has to demonstrate the prescribed routine management practices. For the feedlot system the price of the beef cattle to fatten for three months should be relatively low in order to competitively get selling price which will lead to having profit, otherwise the unit operating cost is higher relative to free range system. ACKNOWLEDGEMENT The authors wish to acknowledge the staff working in the livestock records and socioeconomic research programmes at Beef Research Institute-Lanet for availing the data used in this case-study. REFERENCES Aynalem H, Workneh A, Noah K, Tadelle D, and AzageT(2017).Breeding strategy to improve Ethiopian Boran cattle for mea meat and milk production. Working paper NO.26.Accessed on 12.09.2018 at https://www.researchgate.net/publication/269955570. Banjaw K and Mariam MH(1994). Productivity of Boran cattle and their Friesian crosses at Abernossa ranch, Rift Valley of Ethiopia. II. Growth performance. Tropical Animal Health and Production 26:49-57. DAGRIS (2006) Domestic Animal Genetic Resources Information System. Accessed on 17.04.2019 at https://www.ilri.org/dagris Davis GP (1993). Genetic parameters for tropical beef cattle in Northern Australia: A review. Australian Journal of Agricultural Research. 44:179-198. Demeke S, Neser FWC and Schoeman S.J. 2003 Early growth performance of Bos taurus× Bos indicus cattle crosses in Ethiopia: Evaluation of different crossbreeding models. Journal of Animal Breeding Genetics 120:39-50. DemekeS., Neser, FWC, Schoeman S,J(2004). Estimates of genetic parameters for Boran, Friesian, and crosses of Friesian and Jersey with the Boran cattle in the tropical highlands of Ethiopia: reproduction traits. Journal of Animal Breeding Genetics 121:57-65.
  • 6. Beef Cattle Production and Wealth Creation: Evidence from Improved Boran Cattle and Crosses, Lanet, Kenya Isako et al. 568 Haile A (2011). Breeding strategy to improve Ethiopian Boran cattle for meat and milk production (Vol. 26). ILRI (aka ILCA and ILRAD). Kahi AK, Wasike CB, Rewe TO (2006). Beef production in the arid and semi-arid lands of Kenya: Constraints and prospects for research and development. Outlook on Agriculture, 35(3), 217-225. KiosD, van Marle-Köster E, Visser C (2012). Application of DNA markers in parentage verification of Boran cattle in Kenya. Tropical animal health and production, 44(3), 471-476. Mwenya WNM (1993). The impact of the introduction of exotic breeds in East and Southern Africa. In: kategile, J.A and Mubi S. (eds), Proceedings of the workshop held at Kadoma Ranch Hotel, Zimbabwe 20-23 July 1992. International Livestock Centre for Africa, Addis Ababa, Ethiopia. Newman S, Coffey SG (1999). Genetic Aspects of Cattle Adaptation in the Tropics. CAB Publications. Pariacote F, Van Vleck, L.D. and Hunsley R.E. 1998 Genetic and phenotypic parameters for carcass traits of American Shorthorn beef cattle. Journal of Animal Science. 76:2584-2588. Plasse D, Verde O, Arango J, Camaripano L, Fossi H, Romero R, Rodriguez C, Rumbos JL (2002). Covariance components, genetic parameters and annual trends for calf weights in a Brahman herd kept on floodable savanna. Genetics and Molecular Research. 1:282-297. Rewe TO, Indetie D, Ojango JM, Kahi AK (2006). Breeding objectives for the Improved Boran breed in Kenya: Model development and application to pasture-based production systems. Animal science Journal 77(2):163- 177. Trail JCM, Gregory KE (1981). Characterisation of the Boran and Sahiwal breeds of cattle for economic characters. Journal of Animal Science. 52:1286-1293. Accepted 10 June 2019 Citation: Isako T, Muriithi GM, Mwangi PG, Kimindu V, Muema L (2019). Beef Cattle Production and Wealth Creation: Evidence from Improved Boran Cattle and Crosses, Lanet, Kenya. Journal of Agricultural Economics and Rural Development, 5(2): 563-568. Copyright: © 2019: Isako et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are cited.