Livestock Research for Rural Development 12 (3) 2000 | Citation of this paper |
The early adoption of the legume Arachis pintoi was studied in the State of Caquetá, located in Colombias Amazon region. Data came from 174 farmers randomly surveyed within the area of influence of Nestlé, a multinational milk-processing company. In addition, 52 farmers who had already adopted Arachis were surveyed separately to study their experiences, difficulties, and prospects with the legume. Results indicated that livestock activity is undergoing dynamic intensification. Since 1986, milk production per lactation has increased by 31%, cow fertility by 5%, herd size by 18%, and the area sown to improved pastures by 165%. Current adoption rate of Arachis is about 9.2%, with an estimated 3000 ha already planted. Two-thirds of farmers who had adopted Arachis said they would double, in the next year, the average area sown (9.6 ha/farm). Adopters tended to have larger farms and to have invested twice the capital than did non-adopters. The cost of seed for both grass and legume accounted for 40-52% of total establishment costs, making seed quality decisive in guaranteeing success. To promote Arachis, more information on the plant and its management in association with grasses must be disseminated. Mechanisms should also be sought to reduce establishment costs.
Livestock activity in the State of Caquetá, located in the Amazon region of Colombia, South America, is mostly carried out by small and medium-scale farmers, who produce both beef and milk (ie., dual-purpose) in the same farm (Michelsen 1990). Cropping plays a marginal role. The bovine population is estimated at 1.1 million heads, equivalent to 4.2% of Colombias livestock inventory (DANE 1996).
The State of Caquetá occupies an area of 8.9 million hectares, most of it under forest. The average annual rainfall is 3500 mm, with an annual relative humidity of 81%. Although livestock is the predominant agricultural activity, over the last two decades, illicit activities, such as planting and marketing coca, have become important sources of income, leading to deteriorated public order and social co-existence. One way of contributing to improved socioeconomic conditions is to increase income from livestock activities.
Reliable statistics to determine the evolution of milk production are not available, but information from Nestlé de Colombia (a branch of the multinational milk-processing company) shows that average annual sales of milk per farm to the company increased notably between 1986 and 1996, from about 8,969 litres to 14,949 litres. As the human population in the region increased, the fresh milk market also grew and Nestlé was established, buying significant quantities of milk for processing and distribution at both local and national levels. This higher demand for milk induced farmers to increase production by improving the forage base of their farms, which contained a high degree of degraded native or naturalised pastures, with low production indices per animal and per hectare. The adoption of the grass Brachiaria decumbens marked a turning point in livestock production: dual-purpose cattle were raised, with emphasis on milk production (Michelsen 1990; Ramírez and Seré 1990).
For several years now, CIAT and Nestlé have jointly monitored the evolution of livestock systems in Caquetá in terms of two interrelated topics of common interest to both institutions:
The forage legume Arachis pintoi, a perennial forage peanut, had already been developed through joint research between CIAT and its partners. This material was evaluated for several years and was released in 1992 as a forage alternative for Colombias Altillanura (hilly savannas), Coffee Region, and the Andean Piedmont (Rincón et al 1992). The forage peanut is an innovative option for Caquetá because of its perennial and multiple purpose attributes. It has high potential for use in pastures, in mixtures with grasses or as a cover crop. This legume, through nitrogen fixation and soil cover, can contribute significantly towards sustainable livestock systems. The Nestlé Project, a collaborative effort between Nestlé and CIAT, was created to promote the adoption of A. pintoi in the region. The Project is oriented towards on-farm validation and transfer of this new technology. Most importantly, results from the Project were expected to be extrapolated to other regions of Colombia and tropical Latin America with similar environmental and socioeconomic conditions.
The adoption of new and improved forages is a complex and slow process. The decision to adopt an improved pasture implies a considerable investment of capital, not only to establish it but also to acquire more livestock because improved forages substantially increase the stocking rate. This is a critical issue for small and medium-scale farmers, such as those predominating in Caquetá, who have limited capital and restricted access to credit.
For a new forage option to be massively adopted, it should be not only profitable, but also technically and financially viable. Furthermore, it must be sustainable in that it conserves the natural resources, that is, it should not cause or aggravate the deterioration of the productive capacity of natural resources over the long term.
The present study analyses the adoption process of Arachis pintoi, as promoted by the Nestlé Project. By using farmers as an information source, the Project was able to identify possible constraints to the process and thus facilitate the design of strategies to accelerate adoption. A survey was conducted in 1997 of cattle farms of Caquetá that were located in Nestlés area of influence to determine the current status of adoption of A. pintoi, albeit in a very early phase.
Basic data were collected by surveying a sample chosen from all the farms supplying milk to the Nestlé plant in Caquetá. A combined survey strategy was used, with two sample groups:
· A completely randomised sample, whose size was determined through conventional statistical methods. Nestlé provided a list of farms supplying milk to its plant and the farms daily and annual production during 1996. Using the variance of farm milk production and assuming different levels of confidence and permissible margins of error, 174 farms were surveyed at random. The level of confidence was between 80 and 85%, with a permissible maximum error of the estimator (i.e. mean milk production per farm) of 10%.
Table 1. Land use dynamics on dual-purpose farms in Caquetá, Colombia (1986 and 1997). |
|||||
Land use |
1986 survey1 |
|
1997survey |
||
Area (ha) |
% |
|
Area (ha) |
% |
|
Total farm area |
131 |
100 |
|
158 |
100 |
Pasture area |
95 |
73 |
|
129 |
82 |
- Naturalised |
62 |
47 |
|
38 |
24 |
- Improved |
33 |
26 |
|
91 |
58 |
Cropping area |
4 |
3 |
|
3 |
2 |
Fallow area |
22 |
17 |
|
10 |
6 |
Forest area |
9 |
7 |
|
16 |
10 |
1Data from Ramírez and Seré (1990). |
In all, the survey interviewed 226 farmers, and covered the following topics:
· current situation of pastures and constraints found in Caquetá;
· farmers use of A. pintoi, and knowledge of and expectations for the legume;
· farm resources (availability of labour, land distribution and uses, and infrastructure);
· specific farm characteristics;
· institutional factors;
· economic indicators, such as prices of products and inputs.
Table 2. Frequency of use of pastures on cattle farms located in Caquetá, Colombia (1986 and 1997). |
|||||||
Type of pasture |
1997 |
|
1986 |
||||
Frequency of use |
Total area (ha) |
|
Frequency of use |
Total area (ha) |
|||
Absolute (no. of farms) |
Relative (%) |
|
Absolute (no. of farms) |
Relative (%) |
|||
Naturalised |
200 |
89.7 |
8505 |
|
117 |
99.2 |
7304 |
Brachiaria decumbens |
182 |
81.6 |
13111 |
|
110 |
93.2 |
3056 |
B. humidicola |
86 |
38.6 |
2823 |
|
5 |
4.2 |
23 |
Arachis pintoi in association |
57 |
25.6 |
546 |
|
0 |
0.0 |
0 |
B. brizantha |
55 |
24.7 |
954 |
|
0 |
0.0 |
0 |
Pangola grass |
52 |
23.3 |
2419 |
|
50 |
42.4 |
153 |
B. dictyoneura |
22 |
9.9 |
196 |
|
0 |
0.0 |
0 |
A. pintoi alone |
8 |
3.6 |
10 |
|
0 |
0.0 |
0 |
Imperial grass |
5 |
2.2 |
137 |
|
9 |
7.6 |
200 |
B. ruziziensis |
5 |
2.2 |
21 |
|
0 |
0.0 |
0 |
Jaragua grass |
4 |
1.8 |
61 |
|
18 |
15.3 |
318 |
B. decumbens;Desmodium sp. |
2 |
0.9 |
7 |
|
0 |
0.0 |
0 |
Buffel grass |
2 |
0.9 |
31 |
|
0 |
0.0 |
0 |
B. humidicola and B. Decumbens |
1 |
0.4 |
30 |
|
0 |
0.0 |
0 |
B. dictyoneura + B. brizantha + B. Decumbens |
1 |
0.4 |
6 |
|
0 |
0.0 |
0 |
B. humidicola + B. Dictyoneura |
1 |
0.4 |
2 |
|
0 |
0.0 |
0 |
B. decumbens + B. brizantha | 1 | 0.4 | 10 | 0 | 0.0 | 0 | |
B. brizantha + Desmodium sp. |
1 |
0.4 |
4 |
|
0 |
0.0 |
0 |
Other Brachiaria species1 |
9 |
4.0 |
72 |
|
0 |
0.0 |
0 |
India grass |
1 |
0.4 |
8 |
|
0 |
0.0 |
0 |
Kudzu |
1 |
0.4 |
30 |
|
0 |
0.0 |
0 |
Axonopus micay |
0 |
0.0 |
0 |
|
7 |
5.9 |
47 |
Panicum maximum |
0 |
0.0 |
0 |
|
5 |
4.2 |
83 |
Para grass |
0 |
0.0 |
0 |
|
11 |
9.3 |
47 |
Elephant grass |
0 |
0.0 |
0 |
|
1 |
0.8 |
94 |
Total no. of farms in sample |
223 |
|
118 |
||||
1Includes B. radicans and B. plantigea, both known in the area as brachipará. |
Available data, when compared with data from a 1986 land use study (Ramírez and Seré 1990), show great dynamism in land use patterns in Caquetá (Tables 1 and 2). The most relevant aspects are:
The farmers are apparently responding to pest and disease problems by diversifying germplasm.
Of the 226 farmers surveyed, 83% (187) acknowledged problems related to forage availability and quality, indicating a need for new technologies. Most of the problems perceived are related to diseases and pests, particularly spittlebug (Table 3) (Michelsen 1990; Ramírez and Seré 1990).
Table 3. Frequency of problems limiting forage production on farms located in Caquetá, Colombia. |
||
Type of problem |
Farmers |
|
(Number)1 |
(%) |
|
Pests and diseases |
146 |
64.6 |
Poor quality of available forage |
60 |
26.5 |
Problems related to climate (rain, drought) |
24 |
10.6 |
Lack of physical and financial resources |
8 |
3.5 |
Lack of other forage options |
3 |
1.3 |
Problems related to soil quality |
5 |
2.2 |
Others |
3 |
1.3 |
1The total number of farmers is greater than 226 because some farmers reported more than one problem. |
Of the 226 farmers interviewed, a significant number (179) had heard of Arachis, 171 had seen it, and 68 were using it. Farmers experiences with forage peanut vary broadly, ranging from very recent plantings to grazing with different categories of cattle. Arachis is being planted in two types of pastures:
Of those farmers experimenting with forage peanut, 84% (57) use it in association with grasses, and 68% (39) have planted with sexual seed.
Of the 68 farmers who adopted the legume, 21 (31%) have had problems establishing it, mainly because of poor germination of the grass specie (8) and slow establishment of the forage peanut (7). Overall, 82% of the 68 farmers were highly satisfied with Arachis, and 37 (55%) of them had already grazed Arachis, citing its capacity to increase pasture productivity. They also found that this forage increased stocking rate, milk production, and weight gains; controlled weeds; performed well in association with grasses; and enhanced palatability (Table 4).
Table 4. Farmers opinions of Arachis pintoi as a grazed forage legume, Caquetá, Colombia (1997) |
||
Score |
Farmers |
|
(Number) |
(%) |
|
Very good |
10 |
26.3 |
Good |
19 |
50.0 |
Regular |
4 |
10.5 |
Bad |
1 |
0.6 |
Dont know yet |
4 |
1.5 |
Total |
38 |
100 |
Of the 23 farmers who had not yet used Arachis for grazing, 16 said that the legume had only been recently planted, 3 said it had not established well, 2 intended to use it for a different purpose, and 2 gave a mixture of the previous reasons. Eight farmers who had tested the forage peanut were not satisfied with their results so far (Table 5).
Table 5. Causes for dissatisfaction among farmers who had tested Arachis pintoi in Caquetá, Colombia (1997). |
||
Cause for dissatisfaction |
Farmers |
|
(Number) |
(%) |
|
Not yet identified |
4 |
50.0 |
No progress observed |
2 |
25.0 |
Cattle wont consume it |
1 |
12.5 |
Tends to disappear |
1 |
12.5 |
Total |
8 |
100 |
Based on the random sample of 174 farmers, the current rate of adoption of forage peanut in Caquetá, expressed as the percentage of farmers using the material, is about 9%. At this rate, nearly 3000 ha are estimated to be planted to A. pintoi within Nestlés area of influence (2973 farms). Of the total area planted, 2626 ha (88%) are planted to A. pintoi in association with grasses and the rest to A. pintoi alone.
Of the 68 early adopters, 58 (85%) said they would be willing to expand the area planted to this legume. On average, they would increase the area planted by 11 ha/farm next year, by 10 ha the following year, and another 11 ha/farm within the next 3 years. Most (i.e. 47 of 58) would do so in association with grasses. A high potential demand for sexual seed of forage peanut is foreseen, because 52% of the farmers who wanted to increase the area planted would use this type of seed. About one-fourth would use vegetative seed and 19% would use both types of seed (Figure 1).
Figure 1: Sequences in the early adoption of Arachis pintoi by farmers in Caqueta, Colombia
A very high proportion of the interviewed farmers (95%) indicated that they would be willing to increase investment on the farm if they had access to additional capital. Most of these farmers (76.5%) live on the farm and derive their income exclusively from the livestock activity (87.3%). A major constraint to the adoption of improved pastures is the lack of capital. Pasture adoption requires two types of investments, the first in the establishment of new pastures. These, however, can carry a stocking rate that is double or triple of that supported by traditional technology, thus creating the need for an additional investment in cattle to adequately take advantage of the increased forage availability. The latter investment can be significantly higher, thus discouraging the adoption of new pastures.
To determine the investment priorities of farmers in Caquetá, they were asked what type of investment they would make should they have access to additional capital. Results indicated that 48% of available capital would be invested in livestock, followed by 25% in pasture improvement; 23% in infrastructure and equipment, and 4% in purchasing more land. Thus, farmers tend towards intensification through higher stocking rates and improved pastures. The distribution of farmer priorities appears coherent because once improved pastures are established, investment in livestock is both complementary and indispensable to optimise the system as a whole.
These results are equally consistent with the regions land use dynamics, where the average farm size has varied relatively little, whereas production systems tend toward intensification by replacing naturalised pastures with improved pastures. The grouping of cattle farmers expectations of investment according to early adopters and non-adopters indicated that the former group tended to invest more in improved pastures, whereas the latter preferred to invest in livestock (Figure 2).
It is also important to emphasise that, although early adopters of forage peanut have, on the average, a larger area of improved pastures (in absolute terms) than do non-adopters (i.e. 153 ha versus 73 ha), non-adopters have, in relative terms, a slighter higher percentage of improved pasture than do adopters (i.e. 70% versus 67%).
About 80 to 90% of total investment found in livestock farms in the Latin American tropical lowlands are in land and livestock (Vera and Seré 1985; Seré 1986). In cattle ranches of Caquetá, the investments in land and livestock together accounted for about 77% of total investment in 1997, dropping from 82% in 1986 (Table 6).
Between 1986 and 1997, total investment increased in real terms by 80%. The largest increase was in infrastructure, increasing by almost 150%. Within this item, investment in fences increased notably, apparently indicating improved pasture management by dividing and rotating paddocks. Investment per unit of used land increased by 49% and per head of cattle by 52%.
Table 6. Evolution and composition of investments in cattle farms of Caquetá, Colombia (in constant US dollars, 1997). |
||||||||
Investment |
1986 |
|
1997 |
Variation 1986-1997 (%) |
||||
Mean |
Value |
% |
|
Mean |
Value |
% |
||
Land (ha) |
130.9 |
35069 |
36.1 |
|
157.8 |
75744 |
31.4 |
+116 |
Heads of cattle |
121.2 |
44495 |
45.8 |
|
143.0 |
59774 |
39.0 |
+34.3 |
Infrastructure |
|
|
15.8 |
|
|
|
27.6 |
+142 |
Corrals (m2) |
300.0 |
2203 |
2.3 |
|
231.0 |
1696 |
1.3 |
-23.0 |
Fences (km) |
4.3 |
5367 |
5.5 |
|
21.8 |
27211 |
20.2 |
+407 |
House (m2) |
150.0 |
5507 |
5.7 |
|
146.0 |
5360 |
4.1 |
-2.7 |
Equipment |
|
2555 |
2.3 |
|
|
2659 |
2.0 |
+4.1 |
Total |
|
97451 |
100.0 |
|
|
175250 |
100.0 |
+79.8 |
Investment/ha |
|
744 |
|
|
|
1111 |
|
+49.3 |
Investment/head of cattle |
|
804 |
|
|
|
1226 |
|
+52.5 |
Notable differences were detected for the amount of total investment between the group of early adopters of A. pintoi and that of non-adopters (Table 7). Although the structure and level of investment per hectare and per cow in both groups are similar, the difference lies in the amount. In all categories, the absolute value of investment in adopting farms is double than that of non-adopters. These differences in capital use between the two groups of farmers may be an important factor in explaining and understanding the adoption of new technologies in the region.
Table 7. Value and composition of investments in cattle farms of Caquetá, Colombia (in US$ of 1997), compared between early and non-adopters of Arachis pintoi. |
||||||||
Investment category |
Early adopters |
|
Non-adopters |
Adopter/non-adopter investment ratio |
||||
Average |
Value |
%
|
|
Average |
Value |
% |
||
Land (ha) |
277.0 |
132960 |
33.2 |
|
123.0 |
59040 |
31.4 |
2.3 |
Heads of cattle |
232 |
96976 |
38.1 |
|
117 |
48906 |
41.0 |
2.0 |
Infrastructure Corrals (m2) Fences (km) House (m2) |
375.0 38.3 256.3 |
2752 47765 9408 |
26.8 1.2 21.4 4.2 |
|
189.0 17.0 113.8 |
1338 21210 4178 |
25.5 1.3 20.2 4.0 |
2.2 |
Equipment |
|
4,314 |
1.9 |
|
|
2176 |
2.1 |
2.0 |
Total |
|
294176 |
100 |
|
|
136897 |
100 |
2.1 |
Investment/ha |
|
1062 |
|
|
|
1113 |
|
|
Investment/head |
|
1268 |
|
|
1170 |
|
|
Although livestock farms in this region are the main source of family income, the early adopters depend less on farm-generated income than do non-adopters. For early adopters, the farm accounts for 76% of total income, whereas for non-adopters, it accounts for 90%. To hypothesise, the early adopters have income from other sources and can therefore invest in technological improvement.
The information obtained on annual beef and milk production in Caquetá indicates that, in 1997, the average farm in the region produced 19000 kg of milk and about 11000 kg of beef (liveweight). Early adopters more than doubled their production levels of both beef and milk compared with non-adopters (Table 8). Because the adoption of forage peanut is just beginning, its effect on current production levels is still insignificant. The previous figures simply show therefore the greater production scale of adopters.
Table 8. Levels of production, gross income and proportion of income from milk of dual-purpose farms in Caquetá, Colombia, during 1997. |
|||
Item1 |
Adopters |
Non-adopters |
Total average |
Annual milk production (litres/farm)($0.21/kg) |
33752 |
14595 |
19003 |
Gross income milk sales (US$) |
7108 |
3074 |
4402 |
Animals sold each year Calves (US$152/head) Culled cows (US$275/head) Fattened steers (US$430/head) |
34 16 21 |
10 7 10 |
15 9 13 |
Gross income livestock (US$) |
18602 |
7748 |
10348 |
Total gross income (US$) |
25710 |
10822 |
14350 |
Gross income/hectare (US$) |
93 |
88 |
91 |
Gross income/head cattle(US$) |
111 |
92 |
101 |
Proportion income as milk (%) |
27.6 |
28.4 |
27.9 |
Number of farms |
68 |
158 |
226 |
Table 8 indicates that milk production in 1997 in farms of Caquetá accounted for almost 31% of total gross income. There is little difference between this figure and the 31.6% reported by Ramírez and Seré (1990) in 1986. Farms adopting A. pintoi receive a higher gross return per unit of total capital, per hectare, and per head of cattle, suggesting a higher level of technology on these farms (Tables 9 and 10).
Between 1986 and 1997, several changes occurred on livestock farms of Caquetá that affected productivity in the region: (1) area under improved pastures increased at the expense of the area under naturalised pastures; (2) production per lactating cow increased; (3) calving rate rose slightly; and (4) production indicators and stocking rate per ha declined somewhat because of significant growth in area under improved pastures.
Table 9. Evolution of productivity indicators of cattle farms in Caquetá, Colombia (n = number of farms). |
|||
Indicators |
1986 (n=118) |
1997 (n=226) |
Change (%) |
Calving rate (%) |
61.2 |
64.5 |
5 |
Calf mortality (%) |
9.5 |
11.0 |
15 |
Adult mortality (%) |
2.7 |
3.6 |
33 |
Extraction rate (%) |
17.3 |
18.6 |
7 |
Stocking rate (heads/ha) |
1.27 |
1.11 |
-13 |
Production/cow per lactation (litres, l) |
577 |
760.1 |
31 |
Production/cow per day of lactation (l) |
2.4 |
3.2 |
31 |
Production/hectare of pasture (l) |
156.7 |
147.3 |
-6 |
Area under improved pastures (ha) |
34.1 |
90.4 |
165 |
Total inventory (heads) |
121 |
43 |
18 |
Inventory of cows (heads) |
49 |
58 |
18 |
Proportion of natural pastures (%) |
65 |
29.5 |
-54 |
Meat production/hectare (kg) |
149.6 |
87.2 |
-41 |
Meat production/head (kg) |
106.3 |
78.2 |
-26 |
Average farm size (ha) |
130.5 |
157.8 |
20 |
Table 10. Productivity indicators in groups of early adopters and non-adopters of Arachis pintoi in cattle farms of Caquetá, Colombia, 1997. (n = number of farms.) |
|||
Indicators |
Adopters (n=68) |
Non-adopters (n=158) |
Average (n=226) |
Calving rate (%) |
67.9 |
63.5 |
64.5 |
Calf mortality (%) |
12.0 |
10.8 |
11.0 |
Adult mortality (%) |
3.6 |
3.7 |
3.6 |
Culled cows (%) |
14.6 |
13.7 |
13.9 |
Extraction rate (%)1 |
24.7 |
15.2 |
18.6 |
Stocking rate (heads/ha) |
1.02 |
1.17 |
1.11 |
Production/cow/lactation (litres) |
865 |
663 |
760 |
Production/cow/day of lactation (litres) |
3.6 |
2.8 |
3.2 |
Area under improved pastures (ha) |
153 |
73 |
90.4 |
Total inventory (heads) |
232 |
117 |
144 |
Milking cows (heads) |
39 |
22 |
25 |
Area of pastures at breeding sites (%) |
32.9 |
27.3 |
29.5 |
Meat production/hectare (kg) |
90.2 |
84.3 |
87.3 |
Meat production/head (kg) |
88.6 |
72.2 |
78.2 |
Average farm size (ha) |
277 |
123.2 |
157.8 |
1Excludes fattened steers |
Although the area under improved pastures and production per cow increased substantially, the stocking rate and production per hectare did not, possibly reflecting the scarcity of livestock in the area. Many farmers do not have sufficient economic resources to make additional investments in livestock, once the new pastures are established. Ramírez and Seré (1990) found that about 30% of livestock found in farms in Caquetá were co-owned by livestock funds or with other farmers. The improved pastures are therefore underutilised.
The ex ante evaluation of economic impact at the farm level clearly indicated that technologies based on the use of mixed pastures with A. pintoi are economically attractive because the internal rate of return is substantially greater than that of traditional monocropping (Table 11). However, although high and stable rates of return are a necessary condition, they are not sufficient to guarantee high adoption rates.
Table 11. Internal Rate of Return from associations of Arachis pintoi with different Brachiaria species in Caquetá, Colombia, during 1996.1 |
||||
Type of pasture |
Establishment costs ($/ha) |
Milk production (litres/cow/d) |
Stocking rate (AU/ha) |
Internal rate of return |
B. decumbens alone |
152 |
3.0 |
1.0 |
12.0 |
B. decumbens + A. pintoi |
272 |
3.5 |
1.5 |
19.3 |
B. humidicola + A. pintoi |
325 |
3.5 |
2.0 |
21.8 |
B. dictyoneura + A. pintoi |
355 |
3.5 |
2.0 |
21.1 |
1Rivas and Holmann (1996). |
The majority of farmers testing the new material are satisfied with the results obtained so far, but several aspects are critical for the technical and economic viability of technologies based on A. pintoi. First, the full financial implications of adopting this technology on a larger scale have not yet emerged. Farmers interviewed did not mention the high cost of establishment or the high price of Arachis seed as a reason for not adopting this type of technology, probably because they are still using Arachis in very small areas: seedbeds of 1.3 ha and associations with grasses averaging 9.6 ha.
These financial implications relate not only to the increase in establishment costs caused by the shift from traditional technology to improved technology but also to the increase in investment in cattle as a result of increased stocking rate. Table 12 summarizes the information used to estimate indicators of marginal profitability of the technology being evaluated. By comparing a traditional technology in Caquetá, such as Brachiaria spp, with a new alternative, like Brachiaria associated with Arachis , the technological change increased establishment costs substantially, from US$152/ha (B. decumbens alone) to US$355/ha (B. dictyoneura + A. pintoi). In addition, the increase in stocking rate doubles the investment in livestock.
Table 12. Basic economic and biological information for analysis of the marginal profitability of forage alternatives in Caquetá, Colombia, during 1996.1 |
||||
Variables |
Bd alone |
Bd + Ap |
Bdict + Ap |
Bh + Ap |
Establishment (US$/ha) |
152 |
272 |
355 |
325 |
Production/cow (litres/day) |
3.0 |
3.5 |
3.5 |
3.5 |
Farm milk price (US$/litre) |
0.22 |
0.22 |
0.22 |
0.22 |
Stocking rate (AU/ha) |
1 |
1.5 |
2 |
2 |
Price of land (US$/ha) |
290 |
290 |
290 |
290 |
Price per animal (US$) Milking cow Culled cow Weaned calf |
482 338 174 |
482 338 174 |
482 338 174 |
482 338 174 |
Duration of lactation (days) |
240 |
240 |
240 |
240 |
Calving rate (%) |
60 |
60 |
60 |
60 |
Evaluation period (years) |
12 |
12 |
12 |
12 |
Daily wage (US$/day) |
7.7 |
7.7 |
7.7 |
7.7 |
Cost of resowing (US$/ha) |
38 |
68 |
89 |
81 |
Frequency (years) |
4 |
4 |
4 |
4 |
1Rivas and Holmann (1996); Brachiaria alone (B*) or with Arachis pintoi (Bd+Ap) |
In Colombia, prevailing real interest rates in commercial banks are more than 14%. Therefore, new alternatives to provide credit must be found, perhaps similar to livestock funds [Livestock funds are public companies which provide credit in the form of live cattle (ex., heifers, steers) and profits are distributed based on previous agreements between both parties], that could finance the establishment costs of improved pastures so necessary for modernizing livestock systems.
The cost of seed is the second critical aspect because it represents a very important fraction of the establishment cost. For example, in the case of associated pastures, seed represents 40 to 52% of total establishment costs, depending on the type of grass used (Rivas and Holmann 1996). Seed quality is decisive in the successful establishment of new forage alternatives. In those cases where the association has failed to establish itself, the farmers interviewed attributed the failure to low germination of the grass seed. Grass seed in the area varies widely, in both quality and price. A fourth high-risk factor for the persistence of associated pastures in Caquetá is the prevalence of spittlebug, which not only makes pasture management difficult but also complicates the maintenance of adequate grass-to-legume proportions to ensure that the technology is sustainable, productive and profitable.
Commercial A. pintoi seed marketed in Caquetá is considered as being of high quality in terms of purity and germination. However, local prices are much higher than those of neighbouring countries, like Bolivia. The local price per kilogram in the region ranges between $20 and $25/kg; in contrast, Bolivian seed placed in Colombia costs no more than $15/kg. Ways of locally producing cheap high-quality A. pintoi seed must be found. Despite the attributes of A. Pintoi high productivity, forage quality, and perennial nature its seed cost is substantially more than that of other forage legumes used in the region, such as Pueraria phaseoloides (kudzu), Centrosema macrocarpum or Desmodium ovalifolium, which cost between $12 and $15/kg.
Under the circumstances of the farmers reduced economic capacity and limited knowledge, formulas are needed to accelerate the adoption of Arachis, not only by reducing establishment costs but also by seeking ways of financing these costs. Information on the use, management and potential of A. pintoi should also be widely disseminated in Caquetá.
Results from this study leads us to make the following conclusions and recommendations:
The authors would like to especially thank Nestlé de Colombia for the logistic support provided during the preparation and execution of the survey, and for partially funding the processing and analysis of survey results.
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