Part IV
Country Papers

1. REP. OF CHINA

Ho Jing-shing*

INTRODUCTION

Steady population increase and rapid economic growth has pushed up the demand for meat, eggs and milk in the Republic of China. In 1986, livestock production value amounted to NT$88,333 million, accounting for 30.8 percent of the total agricultural production, second to crop production. The most noticeable aspect of animal husbandry is that it involves the use of not more than one percent of the farmland, which is consistent with the principle of making the best use of resource. A positive effect of such rapid development in animal husbandry is that it has increased the demand for feed grains.

The purposes of the present report are to analyze the problems and constraints affecting the development of feed resources in the Republic of China; to describe the government policies affecting the development of the livestock and feed industries; and examine the prospects of both livestock and feed industries.

* Associate Professor, Department of Agricultural Marketing, National Chung-Hsing University, 250 Kuokuang Road, Taichung.

GENERAL ASPECTS OF LIVESTOCK AND FEED INDUSTRIES

Hog Production

During the early postwar period, hog farmers in Taiwan raised hogs of local breeds mainly as sideline using kitchen waste as the main feed. Their pig sties were poorly equipped and had poor sanitary conditions. Under such circumstances, hogs grew slowly, and thus production was low. In an effort to improve both hog breeds and production, the government started to implement an integrated hog raising program in 1963. This programme consisted of measures for promoting hogs of Western and local breeds with well-balanced feeds. These measures helped turn a new page in the history of hog farming in the country. During the period from 1973 to 1979, under the Accelerated Rural Development Programme, the government established special zones in which integrated crop, fish and animal farming was carried out. More than 5,600 families engaged in such farming in 102 villages. Farmers were urged to rear three-way crossbred hogs. This farming type contributed to laying a solid foundation for the specialization and modernization of hog farming.

In July 1979, the government commenced to promote modernized hog farming under the programme for promoting grass-roots development and boosting farmers' income. Efforts included the establishment of elevated farrowing pens and piglet nursing pens. This led to an increased survival rate for piglets and a rise in hog production. In 1979, two nucleus herd farms were set up: one in Hsinchu at the Taiwan Livestock Research Institute and the other in Chunan at the TSC Animal Industry Research Institute. These two hog-breeding farms started to develop excellent hog breeds in July 1983 for the purpose of supplying hog farmers across the island with two-way-cross gilts and three-way-cross piglets, thereby establishing a breeding hog supply system and ensuring the steady supply of excellent breeding hogs. Furthermore, the government set up an artificial insemination service network, under which semen of superior boars is supplied to hog farmers throughout the island. These services were intended to improve production of superior and uniform three-way-cross hogs.

With improved living standards and a greatly enlarged farming scale, hog farmers also paid increasing attention to the treatment of pig wastes by separating the solid from liquid wastes. The wastes are then used to make compost or processed with a film-covered digester and a secondary aeration system. Such methods of disposal are designed to ensure a sanitary environment.

As a result of various efforts, hog farming has significantly improved its efficiency. The current feed conversion rate is 3.5:1, and the average dressing percentage's 82.4 percent. The backfat is 2.23 cm thick, on the average. In 1984, the country produced 6,569,000 hogs valued at over NT$31,277 million (Table 1). In the same year, the country exported NT$183,000,000 worth of hogs as well as frozen and chilled pork.

Cattle Production

Milk cows - In the early postwar years, swamp buffaloes, yellow cattle and hybrid cattle were mainly used as draft animals. In an effort to develop dairy farming, the government started in 1957 to draft plans for its promotion. As a start, Taoyuan, Yangmei and Pingcheng were designated as experimental areas from which 20 farmers were each chosen. Each farmer was granted a credit to acquire one to two milk cows. As the results were satisfactory, the government expanded the programme to involve more farmers. In 1964, the number of dairy farmers was increased to 485, and the total number of milk cows was 4,807 head. But the problem of excess milk supply persisted because consumers had not developed the habit of drinking fresh milk. To help the farmers solve this problem, the government set up a task force for the purpose of promoting the dairy industry. In 1966, the government began to encourage school children to drink fresh milk, as part of a government effort to boost milk consumption. Years of continued efforts have finally paid off.

To meet the growing demand in the domestic market, the government in 1973 imported 10,563 head of milk cows, and set up 28 special farming areas in Tamsui and other localities. By the end of 1984, the number of the milk cows increased to 39,000 head, and milk production to 66,933 mt.

Table 1. Livestock and Poultry Population

(Unit: 1,000 head/birds)

Source: Taiwan Agriculture Year Book, Department of Agriculture and Forestry, Taiwan Provincial government, June, 1986; The Long-term Direction for Agricultural Development in Taiwan, ROC, (1986–2000), CAPD, EXECUTIVE YUAN, ROC, 1986.

Note:     ^a Includes deer and rabbit.
^b Includes geese and turkeys.

Beef and draft cattle - By 1961, the government focused attention on increasing the number of draft cattle for the main purpose of increasing food production. In the ensuing years, from 1961 to 1971, rapid economic development boosted the demand for beef. This, coupled with the promotion of farm mechanization, forced the government to switch its policy to raise cattle for both beef and draft purposes. At the same time, the government imported Santa Gertrudis bulls for purebred and hybrid experiments. In 1973, the government started importing beef cattle for cattle farmers and ranches to raise. The number of such imported cattle reached 12,899 head by 1975. However, massive frozen-beef imports dealt a serious blow to the beef cattle industry.

At the present time, the government is encouraging farmers to raise beef cattle as sideline and to increase local buffaloes with a view to boosting the supply of beef. In 1984, there were 50,000 head of beef and draft cattle and 41,000 buffalo.

Poultry Production

Poultry consist of chickens, ducks, geese and turkeys. During World War II, the production of poultry was drastically reduced. It was not until after the government had introduced excellent breeds, established demonstration farms across the island and implemented poultry-raising training programs that a solid foundation for the poultry industry was laid.

After 1962, large poultry farms emerged one after another. They adopted modern management skills and automation facilities, all for the purpose of employing the most economical means to increase the production of eggs and meat on a large scale. Statistics from a special survey made in May 1983 reveals that: i) there were 6,549 specialized poultry farms; ii) each chicken breeding farm rearea 5,656 chickens, on the average; iii) each egg farm raised 11,589 chickens; and iv) each meat chicken farm raised 7,158 chickens. Since the 1970s, the scale of duck, goose and turkey farms also began to grow and the farms started to be operated like modern businesses. In 1984, the total poultry supplied to the market consisted of 60,786,000 chickens, 10,576,000 ducks, 2,199,000 geese and turkeys, 189,860 mt chicken eggs, and 28,103 mt duck eggs (Table 2). The supply now fully meets the demand.

After a decade of efforts, the Taiwan livestock Research Institute's Ilan branch succeeded in breeding white mule ducks. In February 1985, such ducks and their parent birds were formally named. They have been favorably received in the country and Southeast Asian countries.

Table 2. Output of Livestock and Poultry Products

Source: Taiwan Agriculture Year Book, Department of Agriculture and Forestry, Taiwan Provincial Government, June, 1986; The Long-term Direction for Agricultural Development in Taiwan, ROC, (1986–2000), CAPD, EXECUTIVE YUAN, ROC, 1986.

Note: ^a Includes yellow cattle and other kind of cattle.
^b Includes both commercial layers and backyard chickens average weight of per chicken egg is 58 g.

Feed Production

Feed for raising hogs and chickens used to be made of cooked sweet potatoes or cassava plus rice bran, soybean meal, and various kitchen wastes. Subsequently, by-products of flour and edible oil industries became the main sources of feed. In the 1970s, commercialized hog and chicken raising stimulated the development of the feed industry. Semi-finished or finished feeds produced by feed factories were combined with the grains produced by farmers for their feed needs. In recent years, massive quantities of grain were imported at cheap prices. This, coupled with the shortage of labour in rural communities, has forced most farmers to use mixed feed in raising farm animals, thereby laying a more solid foundation for the feed industry. By the end of 1984, the number of feed factories reached 158, producing a total of 4,848,503 mt of mixed feed (Table 3) and making NT$48 billion in business turnover.

Feed Supply from Cultivated Land

Since the early 1960s, owing to the rapid growth of the industrial sector which brought about drastic structural changes in the economy of the country, there has been increasingly a keen competition for flatland between the agricultural and non-agricultural sectors. According to recent statistics, the area of total cultivated land decreased from 918,000 ha in 1978 to 892,000 ha by 1984 (Table 4).

Under the encouragement of food security policy measures, domestic rice production has recorded bumper harvests year after year since 1974. Also, the per capita consumption of rice has declined annually. For a proper disposition of agricultural resources and to lighten the burden on the national treasury, the government passed a six-year programme for “Rice Production and Rice Crop Substitution” on Dec 29,1983. Based on estimates of long term demand from 1985 to 1989 the annual demand for unpolished rice was to be reduced from 2,010,000 to 1980,000 mt, the planned rice production area was to be cut from 614,300 to 515,500 ha, and the area of land used for rice crop substitution which include corn, sorghum, soybean, and other crops was to be increased from 47,700 to 146,500 ha.

The yield of major feed crop and feed grains like sweet potatoes, peanuts, soybeans, corn and sorghum varies from time to time.

Sweet potatoes - For quite a number of years, sweet potatoes were the main feed of livestock and poultry, second to rice in importance. Between 1945 and 1971 the planted acreage remained at more than 200,000 ha. Their consumption and hence, planted area have greatly declined because of massive feed grain imports and changes in feed formulae. In 1981, for instance, the harvested area shrank to only 54,552 ha., which was further reduced to 27,791 ha in 1984 (Table 5).

Table 3. Trend in Production of Formula Feed, by Purpose ^a

(Unit: mt)

Source: C.W. Chen, The Evaluation of Staple Grain Buffer Funds, 1985, Taipei; Taiwan agriculture Year Book, Department of Agriculture and Forestry, Taiwan Provincial Government, 1986.

Note: ^a   Refers to complete feeds used to meet complete nutrient requirements of pig and poultry. For cattle/buffalo, complete feeds refers to protein/energy concentrate to supplement roughness.

^b In 1976, cattle/buffalo feed, for milk 30 percent, for meat 70percent, in 1984 cattle/buffalo feed, for milk 45 percent, for meat55 percent.

^c Hog feed, for starter 20 percent, for grower 35 percent, for finisher 30 percent, for breeder 15 percent, in 1976 and 1984 are the same.

^d By Chen's research and D.A.F.'s data, in 1976 poultry feed for broiler starter 15 percent, for broiler finisher 30 percent, for layer starter 8 percent, for layer grower 10 percent, for laying hens 20 percent, for breeding stock 7 percent, for duck 20 percent, in 1984 for broiler starter 13 percent, for broiler finisher 25percent, for layer starter 5 percent, for layer grower 6 percent, for laying hens 14 percent, for breeding stock 5 percent and forduck 32 percent.

Table 4. Land Utilization

(Unit: 1,000 ha)

Source: Taiwan Agriculture Year Book, Department of Agriculture and Forestry, Taiwan Provincial Government, June, 1986.

Note:   ^a Arable land refers to land under temporary crops (double-cropped area are counted only once), temporary meadows for mowing and pasture, land under market and kitchen gardens (including greenhouse cultivation) and land temporarily on fallow or lyingidle.

^b Land under permanent crops refers to land planted to crops which occupy the land for long periods and need not be replanted after each harvest, such as trees, nut trees and vines, but excludes land under trees grown for wood or timber.

^c Arable land plus land under permanent crops.

^d Permanent meadows and pastures refer to land used permanently (five years or more) for herbaceous forage crops, either cultivated or growing wild (wild prarie or grazing land).

^e Total cultivated land pluc permanent meadows and pastures.

^f Total land area includes large areas of deserts, mountains and other unciltivable lands.

Peanuts - Peanuts used to be an important source for edible oil and feed in addition to being used as food. The planted area expanded from 24,626 ha between 1945 and 1958. Thereafter, the area remained at between 90,000 and 100,000 ha until 1971 when it began to decrease noticeably for almost five years. In the past eight years or so the area planted to peanuts again stabilized at a little over 500,000 ha. Efforts will concentrate on the breeding of varieties as food and on improvement of cultural and processing techniques.

Soybeans - Soybeans are used as food, feed and edible oil in the Republic of China. The planted area once rose to 59,582 ha in 1961 from a mere 2,405 ha in 1945. The appearance of competitive crops has since reduced the acreage. Only 5,535 ha was planted to this crop in 1984 (Table 7). Under the rice crop substitution programme that was launched in 1984, the area of this crop will certainly expand.

Corn - Corn is a major crop that is receiving active government promotion under the rice crop substitution programme; in 1984 corn was planted to 52,604 ha (Table 5), and acreage is expected to rise in future years. An intensive effort will be made to develop high-yield varieties like Tailung 351 which are adaptable to paddy fields and mechanical harvesting. Large-area cultivation and cultural improvements will be encouraged to raise the per-ha yield.

Sorghum - Its planted area was expanded to 7,753 ha in 1984 (Table 5). As a result of increased government purchases of this product used as feed. The variety promoted at present is Taichung 5. Farmers will be given incentives to boost sorghum production under the paddy-field conversion scheme.

Foreign Trade in Feeds and Feed Materials

Due to the rising demand for consumer goods in recent year, imports of breeding stocks, beef products and dairy products have continued to increase. Along with this, imports of feedstuff have also become tremendous. Total feed imports amounted to US$ 170 million in 1970, and rose to US$ 1,173 million in 1984, an increase of six times over a 15-year period. The trade area for feed imports of the country is almost entirely concentrated in the USA. In the first quarter of 1986, the country imported 887,440 mt of corn, 882,805 mt of which came from the United States, and 4,635 mt from Thailand. The United States was also the source of 364,034 of soybeans importation.

In 1975, domestic prices of feed grain including corn and sorghum were about 40 percent above import prices. Small grains include corn, soybean, wheat barley and sorghum which are all essential raw materials for processing edible oils and animal feeds.

To avoid import price fluctuations and to secure constant foreign supply of small grains, a stabilization fund called the Small Grains Deficiency payment was established in November 1971. The objectives of this fund were to encourage domestic production of small grains, to improve farmland utilization, to develop feed related industries, and to accelerate livestock production. The sources for this stabilization fund were derived from an endowment of NT$ one million donated by two public and six private organizations and restricted income from: i) the collection of a NT$ 202 fee/mt of small grains imported; ii) government subsidies; and iii) others. Due to the government's encouragement to shift a part of the paddy land for growing more small grains, the support price level for small grains is determined to be equivalent to the per hectare profit of growing rice. Based on this calculation, the 1984 guaranteed price for corn was NT$ 15/kg; soybean, NT$ 25; and sorghum, NT$ 20. The imported price were NT$ 7.41/kg for corn; NT$ 12.92/kg for soybean; and NT$ 7.45/kg for sorghum (Table 13). To protect the income level of small grain growers, the support prices for corn and soybean are more than double the imported prices, and for sorghum is three times higher. The price differential is covered by this Deficiency Payment Scheme. The estimated support for corn, soybean, and sorghum producers in 1982 amounted to NT$ 1.5 billion.

Table 5. Available Feeds from Cultivated Crop (on-farm site only except grasses)

Source: Taiwan Agricultural Year Book, Taiwan Food Balance Sheet, “Farmers Guide”, Copyright 1980 by Harvest Farm Magazine.

Note:     ^a Measured as air dried matter.
^b Referts to the parts of plant or crop usually not intended for food use for various reasons: for example, unmatured or substandard grain of paddy. Approximate percentage of total production may be used in the absence of relile 1,000 mt estimate.
^c Refers to component of plant or crop not considered the main products such as stem/stalk and leaves.

Table 6. Available Feeds From Oil Crops

Source: Taiwan, Agriculture Year Book, Department of Agriculture and Forestry, Taiwan Provincial Government, June, 1986, D.A.F's investigation data.

Note:     ^a The crop residues of rapeseed are two times its production.
^b The crop residues of soybean and its production are the same.
^c The crop residues of groundnut and its production are the same.
^d The crop residues of sesame are two times its production.

Table 7. Prices of Imported and/or Exported Feed Vis-a-Vis Domestic Prices

(Unit: NT$/mt)

Source: Agricultural Trade Statistics of Republic of China, Taiwan Agricultural Prices Monthly, Department of Agriculture and Forestry, Taiwan Provincial Government, June, 1986.

Feed Supply from Permanent Pastures and Rough Grazings

The Republic of China has 30,357 ha of pasture and meadow (Table 8), which accounts for 0.8 percent of total land area. More than 54.5 percent of pastures and meadow is in the domain of private property. Forages are not the main source of feed for livestock because the population of the ruminant animal in relatively low.

To strike a balance between conservation and development of slope land, and to meet economic needs, the Council of Agriculture (COA) began in 1974 to assist the Mountain Agricultural Resources Development Bureau in carrying out a slope land survey and planning programme. Based upon the results of planning and the principle of optimum farming, all slope lands in 103 areas were zoned for specialized production of livestock and crops. The present forages production is far from satisfactory. The major limiting factor is low yields which result in high production cost.

Formula Feed Industry

By the end of 1985, the number of feed mills reached 169 (Table 9), producing a total of 5,474,676 mt of complete feeds and aggregating NT$ 53 billion in business turnover. There are two ownership pattern of feed mills in the country: cooperatives and private. There were 12 feed mills owned by the Taiwan Provincial Farmer Associations, of which over 83 percent produced more than 1,000–3,000 mt/month, and only 17 percent produced more than 1,000–3,000 mt/month. The number of feed mills owned by private entitles were 157, of which over 76 percent produced less than 1,000–3,000 mt, and only 24 percent produced over than 1,000–3,000 mt. Table 10 shows that the production of formula feed increased the fastest. About 85 percent of the growth in feed production is attributable to increase in the production of formula feed for hog and poultry, the remaining 15 percent to the increase in the production of formula feed for cattle and fish.

Table 8. Distribution of Pasture and Meadow Areas

(Unit: ha)

Source: Department of Agriculture and Forestry, Taiwan Provincial Government, 1986.

Note: ^a Other wild grass area refers to footpath, riverland, dike, roadsides and other non-arable aldn where wild grasses grow and which are or can be utilized as feed.

Table 9. Characteristics of Feed Mills, by Ownership Pattern, 1985

Source: Taiwan Feed Mills, Department of Agriculture and Forestry, Taiwan Provincial Government, 1985.

Note:     ^a Calculated average rated capacity and average output per month of all feed mills in the respective ownership categories.
^b As a rule, processing capacity per month is counted as 8 hours per day and 25 days per month operation.

Table 10. Typical Composition of Representative Formula Feed for 1985

(Percent share of each ingredient in weight)

Source: Department of Animal Husbandry, National Chung-Hsing University, Taichung, Taiwan.

The large and medium-sized feed mills are well-equipped with modern equipment and apply more modern management techniques. Small feed mills are usually traditional family-type business. Formula feed is marketed through two channels: the cooperatives sector and commercial sector. The cooperative sector accounted for about 5 percent of the total: 95 percent was marketed by the commercial sector. The index number of prices of formula feed reveals that the average value rose from 100 in 1978 to 119.75 in 1985, while the index number of prices of livestock products increased from 100 to 125.20 during the same period.

Crop Residues and Industrial By-products

About 80 percent the country's feed supply was from formula feed, 18 percent from agro-industrial by-products, and 2 percent from crop residues (Table 11).

The crop residues, though available, are not at present being fully utilized as feed because: i) modern livestock production systems based on intensive grain feeding; ii) the bulkiness of crop residues, and the scattered nature of agricultural production result in high collection costs; and iii) lack of knowledge regarding their suitability for feed use.

Per Capita Consumption of Major Livestock and Poultry Products

Following the recent economic development and the rising income level, food consumption patterns are changing markedly. Historical and projected per capita consumption data presented in Table 12 indicate that the consumption of pork rose from 18.93 kg in 1970; 31.12 kg in 1984, to 34.20 kg by 2000, while that of beef and veal to increase from 0.58, 1.62 kg to 3.70 kg during the same period. The consumption of fresh milk together with milk products as a whole rose from 35.22 kg 1984 to 44.50 kg in 2000, the consumption of eggs increase from 11.17 kg in 1984 to 11.60 kg in 2000 and poultry meat, from 18.56 kg in 1984 to 19.50 kg by 2000.

GOVERNMENT POLICIES AFFECTING ANIMAL AND FEED INDUSTRIES

The nation's agricultural policy goals at the current stage of development, under the guidance of these principles are as follows; i) self-sufficiency in major agricultural products so as to guarantee freedom from worry about food supplies; ii) enhancement of farmers' incomes and narrowing of the income gap between farmers and non-farmers; and iii) improvement of rural environment and advancement of social welfare for farmers.

Table 11. Total Nutrient Availability, By Source

(Unit: 1,000 mt)

Source: An economic analysis of feedstuff resource in Taiwan. Department of Agriculture and Forestry, Taiwan Provincial Government, 1986.

Table 12. Per Capita Annual Consumption of Livestock and Poultry Products

Source: Taiwan Food Balance Sheets, Council for Economic Planningand Development, Executive Yuan; The Guide of Animal Husbandry and Veterinary Medicine in Taiwan, Department of Agriculture and Forestry, Taiwan Provincial Government.

Note: ^a Fluid milk includes fresh milk and evaporated mil, milk products includes powdered mil, powedered milk non-fat, butter.

To achieve these goals, the government formulated the following series of agricultural improvement measures and programmes for animal and feed industries:

1. A guaranteed prices system and planned production and marketing for hog, corn, sorghum and soybean were carried out, and food stabilization and agricultural development funds were established, to enhance confidence in agricultural operations.

2. Interest subsidies were provided for farms, animal industry production loans, rural electrification and water in order to lighten the burden on farmers, and hog production and marketing adjustment programme.

In order to promote hog production while taking account of both economic efficiency and the interests of consumers, the Executive Yuan passed the Hog Production and Marketing Adjustment Programme on May 22, 1980. This programme set the following basic policies:

1. The primary goal of the programme is to supply food for the population and the number of hogs raised should be mainly based on the domestic market demand.

2. To facilitate management, hog raisers are divided into four categories: farmers who raise hogs as an auxiliary occupation, modernized hog farmers, large-scale hog raisers, and large-enterprise hog raisers.

3. Hog farmers are given priority in supplying the domestic market, while large enterprise raises will, in principle, supply the export market.

4. An agency specifically in charge of adjusting supply and demand of hogs and meat is to be designated.

5. Prevention of environmental pollution is to be strengthened.

This programme also consists of measures for promoting hogs of western and local breeds with well-balanced feeds.

Cattle Raising Policies and Measures

The Executive Yuan approved the Cattle Industry Policy and Measures on May 21, 1981. The plan was to put primary emphasis on dairy cattle and secondary emphasis on beef cattle, and increase the self-sufficiency rate of milk to 30 percent and raise the number of dairy farmers from 700 to 1,600 within five years, with 9,000 head of dairy cows being imported as needed. In August of 1982 the government further approved the Action Programme for Development of the Cattle Industry to promote the establishment of a cow breeding system, cultivate the habit of drinking milk among the people, encourage private investment in the construction of regional dairy plants, handle the raising of beef cattle as and auxiliary industry in suitable areas, establish a cattle production and marketing system, accelerate the improvement of cattle breeds as well as research and experimentation work, review and revise the dairy industry management regulations, etc.

SCIENCE AND TECHNOLOGY DEVELOPMENT PROGRAMME

Dryland Food Crops

Varieties for rice field cultivation - To break through the bottleneck in dryland food crop variety improvement, the various domestic agricultural research institutes and improvement stations collect seed sources on a wide scale and make use of them to develop high-yield, high-quality varieties suitable for cultivation in rice fields. Major dryland food crop varieties that have been named and extended since 1979 include the following: Tai Nung No. 5 peanuts which are high-yield, early maturing, and go dormant; three varieties of soybeans: Tai Nung No. 15, which is high-yield, resistant to lodging, and suitable for summer planting; Hualien No. 1, which is high-yield, rust-resistant, has large grains, and is suitable for cultivation in eastern part of the island; and Kaohsiung No. 8, which is suitable as an autumn intercrop in the Kaohsiung-Pingtung area; and two varieties of corn, high yielding single cross Tai Nung No. 351 and double cross Tainan No. 16. All of these are suitable for cultivation in rice fields instead of rice. New varieties of oats, mung beans, red beans, wheat, and sunflowers have also been developed.

Coordination with rice substitution - In accordance with the natural conditions for rice substitution in different areas, the various agricultural research institutes and improvement stations have strengthened research into cultivation management and technology for the substitution of dryland food crops in rice fields, and have guided the farmers in rice crops substitution; experimentation has shown, for example, that the use of machinery in ridging culture reduces rain damage during planting and water damage during the growing period, thereby enhancing production. This method has been widely adopted by farmers substituting other crops for rice.

Fertilizer-saving research - To lower the cost of fertilizer, experimentation has been completed for the use of liquid compound fertilizers on largescale sugarcane and corn cultivation, and utilization has begun.

To promote the rational application of fertilizer by farmers, soil fertility and crop nutrition diagnoses were carried out for four successive years beginning in 1981. As a result of application by the farmer in accordance with fertilizer recommendation charts, the yield of maize increased by 10 percent.

Biological prevention - The biological prevention of insect pests is a point of emphasis in crop pest prevention that has been actively promoted by the COA in recent years. Beneficial native insects were propagated in mass quantities and then released into the fields to fight harmful insects. For example, Trichogramma wasps were used to control Asian corn borers.

Farm mechanization - In recent years, owing to the liberalization of soybean and corn imports and the continuing outmigration of rural labour the production of dryland food crops has declined considerably. To solve this problem, the COA has been actively assisting agricultural institutions in experimenting with the developing labour-saving and mechanized cultivation. Machines are now widely used in the Yunlin, Chiayi and Taiana area in land preparation and seeding.

Mechanizing farming operations is a must in an effort to alleviate labour shortages and to raise labour productivity. In 1979 a farm mechanization fund endowed with NT$ 4 billion was created as a major policy initiative of the government. Machines are now widely used. They include sorghum combines, harvesting machines for sweet potatoes and corn seeding machines for dryland crops.

The use of large planting machinery for peanuts, soybeans, corn and sorghum has been studied and demonstrated by the Taiwan Seed Service, including the production of power threshers for sorghum, soybeans, and corn.

Support of government agricultural policy - Small operating scale and high production cost are two main factors limiting the output of dryland food crops in the country. To promote the use of winter-followed land, however, it is still desirable to grow these crops. On COA recommendation, a development fund has been established with donations from feed grain importers collected in proportion to the quantities of their imports. The government has also set guaranteed purchase prices for locally produced soybeans and corn which have been helpful in stabilizing their yields.

A seed testing system - A seed testing system was introduced in 1957 to ensure the supply to farmers of superior, high-yield seeds. A three-tier testing and multiplication system (foundation, registered and certified seeds) has been long in practice for rice, dryland crops and potatoes. Field and laboratory tests were made.

In 1957 field tests were made in 900 ha and laboratory tests covered 650 samples; the corresponding figures for 1984 were 2,600 ha and 2,000 samples.

DIRECTIONS FOR FUTURE RESEARCH AND EXTENSION

To meet the needs of the country's future feed resources development, the government is in charge of the following items of research and measure:

Expansion of Feed Grain Production Area

Adjustment of cultivation system - Experimentation results indicate that with better drainage and improved varieties, the second crop can be developed as the main crop and the spring crop can be switched to the planting of dryland crops and special crops.

Slope land conservation and utilization - Labour productivity on slope land farms is low due to difficulties caused by steep slopes. The government is carrying out soil and water conservation projects to preserve the land's productivity; taking care of farm roads, irrigation, and drainage to improve the operating environment; carrying out guidance in livestock production technology and group training of farmers; and formulating and revising laws and regulations related to soil and water conservation and utilization.

FUTURE PROSPECTS OF LIVESTOCK AND FEED INDUSTRIES

Livestock Industry

Hog farming - Farmers have long abandoned the native breeds in favour of better performing Landrace, Yorkshire, Duroc and their three-way crosses. Through years of experiments and demonstrations, artificial insemination for hogs has now been generally accepted by the farmers. Effective control of infectious diseases has been a main factor contributing to the rapid development of the hog industry.

Hog farming leads to specialization and modernization. With the expansion of the scale of swine farming, the disposal of pig wastes becomes a problem.

Cattle farming - In order to raise the nutrition level of the people, the farmers have in recent years been encouraged to engage in dairy farming. In May 1981, the Executive Yuan approved a cattle policy and promotion measures, thereby endorsing the principle of concentrating on dairy cattle with beef farming as a sideline.

Poultry farming - Poultry is now produced mostly on large scale by commercial farms. Duck raising remains an important farm sideline.

Steady population increase and rapid economic growth have pushed up the demand for meat, eggs, and milk. Since hog, chicken and duck raising does not require much land space and cattle can be placed on slope lands, further increases in livestock production are expected.

Feed industry - Steady economic growth and increase of foreign exchange earnings promoted the government to liberalize imports of corn and soybeans, using the imported grains and feed mills manufacture complete rations for use by livestock farmers in place of sweet potatoes. The agro-industrial by-products, though available, due to lack of knowledge regarding their suitability for feed use and collection cost, are not at present being fully utilized as feed.

2. FIJI

Anand M. Sugrim*

INTRODUCTION

Although Fiji has made substantial progress in the last decade towards self-sufficiency in poultry and pork products and to a lesser degree in the beef, dairy and goat production, it is still heavily dependant on imported raw ingredients, particularly grains and animal protein for monogastrics. Such imports have placed a serious strain on the foreign exchange resources. The local pig and poultry industry, apart from providing direct and indirect employment to well over 2000 people, saves the country approximately $19 million annually by producing these commodities locally. However, in order to achieve this between $6.5 to $7.0 million worth of raw materials are imported annually. This means that between 70 and 80 percent of all feedstuff is imported. Such has been the case because of the country's inability to produce sufficient quantities of grains and animal protein locally to keep pace with the growth of the livestock sector.

* Agricultural Officer (Poultry), Ministry of Primary Industries, P.O. Box 358, Suva.

GOVERNMENT POLICY

The slow growth of the local livestock feed sector is due to the government's agricultural policy until the Development Plan 8 period which ended in 1985, whereby crop production had a more competitive advantage over feed grains production. Sugarcane, rice, ginger and pine were favoured. Such being the case the cultivation of animal feed crops lost out to primary cash crops and thus the resultant insignificant availability of locally grown animal feedstuff.

While the bulk of animal protein may continue to be imported for another decade but with the change in the agricultural policy there are reasonable prospects for local production of the energy component of diets such as maize, sorghum and cassava production.

CONSTRAINTS TO MAIZE DEVELOPMENT

Research

Maize has had low priority in research programmes and it was only recently that interest has been revived as imports of animal feed have escalated. The private sector has identified the attractive returns which can be achieved and its present advantages over rice, both in yields achievable and comparative prices. Whilst information and experience has been generated by large-scale commercial growers, they operate under a capital intensive, hybrid seed, high input package, which for the present has little relevance for the small grower due to both high cost and risk.

Variety

The hybrid seed costs ($F70/ha) and these have to be ordered well in advance to facilitate quarantine clearance and almost total reliance is placed on HYCORN 9 which has an acceptable tolerance to rust. Any change in the rust virus could have a short-term dramatic affect on production until such time as a replacement hybrid was tested under local conditions and introduced in bulk. A further consideration is the risk of cyclone damage on a high investment package.

Mainly because of high cost of production and difficulties of obtaining short term institutional credit, the hybrid is not generally recommended for small farmers. Therefore, the smallholder production relies on the local yellow variety which has lost its resistance to rust, thereby increasing risk in the rainy season. This together with poor cultural practices generally yields about 1 mt/ha.

Lack of a suitable marketing organization and a limited capacity for drying and storage.

The need for a seasonal pricing policy and review of import controls.

Problems and Constraints with Agro-industrial By-Products

In contrast to maize there are other crop residues and agro-industrial by-products which are available in large quantities in Fiji, particularly sugarcane bagasses, cane tops, cereal straws, etc. Which could become major source of feed for ruminants. However, this has not been possible in the past mainly for three reasons. Firstly, no thorough research has been conducted in the past to determine the type and quantities of agro-industrial by-products available in the country. Secondly, no proper feasibility study has been carried out to see the cost benefit analysis of converting the by-products into usable animal feed, and thirdly, the non-availability of simple, least cost technology and expertise in the country to convert agro-industrial by-products into animal feed.

Improving Livestock Performance and Feed Industries

Livestock performance, in particular poultry and pig, has improved significantly through improved feed formulation and genetic improvement and management of the stock. Most of the large commercial feed mills now have technical back-up service from large corporate feed millers in New Zealand. Dairy and beef performance has improved through better nutrition both in terms of improved pastures with the introduction of legumes and concentrated feeds. Breed improvement through artificial insemination has also helped to produce better stock.

A major constraint to any future development of the maize industry is the lack of suitable varieties adapted to seasonal conditions, with acceptable tolerance to rust and capable of yielding about 3.0 mt/ha under improved smallholder management. The private sector also identifies the current varietal relevance on hybrid to be a major problem in their operations. They would prefer to reduce costs of production and accept lower margins and risk.

Seed Production

At present, no seed production or processing of maize is carried out. Small farmers maintain their own carry-over stocks and plant non-selected untreated seed. Large commercial growers import hybrid seed directly for planting.

Marketing

There is no maize marketing organization for small farmers at present. As far as marketing is concerned the major constraints are collection, drying and storage of maize from small farmers.

Thus the main constraints to be overcome, both in assisting current maize production and further development of the industry can be summarized as follows:

1. The private sector reliance on a limited range of imported hybrids requiring high input levels under a risk situation.
2. The lack of improved varieties with tolerance to rust suitable for smallholder production.
3. The absence of a seed production organization to service current and planned developments.
4. Limited information on costs and returns under different inputs levels.

Some of the feed millers have semi-computerized their operation which now enables them to accurately weigh the different ingredients. The introduction of large aerated silos has improved the keeping quality of raw ingredients and also reduced wastage through weevil infestation, spillage from torn bags and attacks by rats and mice. Pelletizing the feeds has also helped to increase the efficiency of production.

Successful and Unsuccessful Programmes and Projects

There hardly has been any serious attempt to promote the livestock feed sector to become self-sufficient in the basic raw ingredients such as the energy and protein component of diets. One of the major reasons has been the easy excess to Australia and New Zealand for the necessary feedstuff at very competitive prices. Some attempt has been made in growing sorghum in the past. However, native bird infestation and the outbreak of rust virus caused the collapse of this project.

Large-scale cassava production for livestock feed did not materialize because the feasibility studies showed it was not price competitive with imported grains.

Grazing pastures were supplemented with leucaena which showed significant liveweight gains in steers. However, this technology was not taken up by farmers. The reason for this is obscure but is believed to be related to leucaenas slow establishment under field condition. Now that the shrub is attacked by Psyllid it is very unlikely that the technology would be ever taken up by farmers unless some Psyllid resistant lines are found.

Measures to Further Improve/Develop the Livestock and Feed Industries

Suitable land for grain production is a scarce resource and it is unlikely that rare and more land will be put under maize cultivation in future years as it will face severe competition from export-oriented industries such as sugarcane and pineapple. Rice and other cash crops, due to higher gross margin per ha, will also take precedent over maize farming.

Therefore, effort should be made to explore the possibilities of utilizing crop residues and agro-industrial by-products for livestock feeds. In this regard it is necessary to conduct a detailed survey to determine the availability and current utilization of by-products in Fiji.

There is no doubt that crop residues, particularly sugarcane bagasses, cane tops, cereal straws etc., are major sources of feed for cattle in Fiji. However, the picture is not sufficiently clear, particularly in relation to the type and quantity of by-products fed and the seasonality of feeding. Information is, therefore, urgently required not only on the total availability of different by-products in the country but also on their availability in relation to the needs in different parts of the country.

Supplementing crop residues and other by-products should also be considered. Apart from alleviating nutritional deficiencies, an ideal supplement should also maintain or increase intake of basal dietary material. The supplement would increase the efficiency of utilization of nutrients leading to increased animal production. In this regard many other tree fodder legumes such as Glyricida maculata should be investigated.

GOVERNMENT

Livestock and Feed Industry Development Policy

During the Development Plan 9 period (1987 – 1990), the whole issue of livestock feed will be carefully examined with a view to:

1. increasing local component of stock feed;
2. regulating imports through licencing to provide greater impetus to local production; and
3. providing technical advice on proper feeding methods to reduce farmer's feed costs which form a major part of the total operational costs.

In this regard the maize programme is specifically designed to increase local ingredients into feed production. The major objectives of this programme are to:

1. increase maize production both for human consumption and livestock feed;
2. promote maize as a diversification crop to supplement farmers' incomes; and
3. gradually reduce imports to save foreign exchange.

The total area and production for maize is projected as follows.

In order to support the maize production, the Government support services will be based on the following:

1. the promotion of improve cultivation practices is current and planned production areas;
2. the development of improved varieties of seed; a seed production organization, and provision of collection, drying and storage facilities;
3. the development of a marketing structure supported by an adequate pricing policy; and
4. gathering information on costs and returns at different levels of inputs to determine the optimum package of practices both for smallholder and large corporate producers.

At present there are about 1,200 farm families in maize farming in the smallholder sector. However, with implementation of the Government policy under the maize programme about 1000 additional farm families are expected to become involved in maize production.

Pasture Development

The overall objective of pasture development is to develop improved pastures and evaluate their economics in the dry and wet zones of the country.

The following research programmes have been designed to take place in the next five years to achieve the overall objectives of pasture development:

Shrubby legume evaluation - The specific objective of this research will be to study the effect of spacing, nitrogen application and frequency of harvest on dry matter yield and nutritive value of Glyricidia maculata;

Introduction of promising legumes into Setaria pastures - The objectives will be to compare three methods of incorporating legume into Setaria pastures and to evaluate their performance and persistence under grazing;

Legume species evaluation in drier zones - The research is designed to evaluate three cassia species on negrescent hill soils and to compare the 3 cassias with hetero Desmodium leterophyllum);

Pasture species screening - In this research persistence and productivity of eight grasses under grazing will be compared;

Legume species adaptation trial in dry zones - The research will basically evaluate the adaptability of legumes in different locations in the dry zones;

Legume species adaptation on farms - The objective of this research is to evaluate the adaptability of legume species on farms and monitor their growth and performance under farm conditions;

Setaria demonstration on farm - The research is aimed at demonstrating the performance and value of Setaria grass on dairy farms.

Grass and legume species evaluation - The objective will be to evaluate the comparability of legumes and grasses in the dry zones.

Pasture nutrition studies - The research will test the response of Desmodium heterophyllum to phosphorus and sulphur application.

Weed control in pastures - the objectives will be to evaluate herbicides for Dralakaka Vitex trifolia control and to evaluate terden in combination with Lentrel and Diesel as foliar sprays for Dralakaka.

The efficacy of various herbicides in the control of Japanese tea bug Cassia mimisoides will also be evaluated.

Goat Production Development

The overall objective of goat production development will be to improve goat productivity through improved nutrition, breeding and selection, disease control and management.

Fattening of culled does - The objective is to fatten culled does over a 12-week period, measure the dressing percentage and determine the economics of likely benefits.

Optimum levels of supplementary - The objectives are three-fold feeds for fattening weaker males.

1. the optimum level of supplementary feed required for fattening of grower males.
2. time required to reach 25 kg body weight (slaughter weight) at different levels of supplementary feed.
3. daily liveweight gain over a 12-week period.

Use of treated baggase as livestock feed - The research will be directed at the feasibility of fattening goats indoor using a fully compounded feed processed by the Fiji Sugar Corporation Research Division with baggase as the roughage base.

Epidemiology and control of gastro-intestinal nematodes in small ruminants - The objective will be to determine the prevalence of anthelmintic resistance in Fiji and to relate this to the system of management.

Development and survival of free-living stages - The research will determine the seasonal pattern of egg hatching and larval survival on pasture in representative wet and dry zones in Fiji.

Natural history of trichostrongylidoses in small ruminants - The objective is to define seasonal patterns of worm burdens, larval intakes and population structures (larval stages, adults, etc.), in grazing small ruminants of different physiological status.

Seasonal egg hatch and larval appearance times - The objective is to determine seasonal egg hatching and third-stage larval appearance times.

Transmission and larval identification of mecistocirrus digitatus - The objectives are to determine whether Fijian goats can be infected with Mecistocirrus digitatus and if so, larvae will be cultured to determine their characteristics and prevent misidentification during pasture monitoring.

Dairy Development

The overall objective is to improve dairy production through improved nutrition. Management, breeding and selection and disease control.

Monitoring and evaluation - The objectives are to improve milk quality through improved dairy shed and milking management and to use the Government Koronivia Research Station dairy as demonstration farms to farmers.

- The objective is to investigate the factors causing low calving performance at Koronivia Research Station Dairy herd.

Pig Development

The overall objective is to improve pig production through improved nutrition, management, breeding and selection and disease control.

Evaluation of the “extension recommended farm mix” ration against commercial feeds for pigs - The objective is to evaluate under similar conditions the economies of “extension recommended farm mix”, Visama and Crest Grower rations.

Sheep Development

The objective of sheep development is to improve sheep productivity through breeding and selection, better management and disease control.

Sheep breeding - The objective is to produce a mutton cross sheep, selected for hair coat, good mutton carcass and high fertility rate under Fiji conditions.

Economic evaluation of simulated smallholder sheep and goat production - The objective is to evaluate factors influencing the economics of sheep and goat raising in Fiji, define comparative productivity factors (reproduction, growth, mortality) and monitor pasture sward and erosion under sheep and goat grazing.

Apart from the above other promising areas for research appear to be in urea ammonia treatment of crop residues. In this regard the use of urea-molasses-mineral blocks with untreated residues in practical feeding systems look promising. The incorporation of straw and other crop residues in feeding systems suitable for small farmer in Fiji also appear promising. Investigations should also be directed towards establishing maximum levels of inclusion of basal roughage for optimizing production.

FUTURE PROSPECTS

Meat production, apart from beef, showed a steady expansion during the Development Plan 8 (DP8) period (1980–1985). Self-sufficiency was achieved in pork and poultry products. Pork output rose from 574 mt in 1980 to 900 mt by 1985. Similarly, chicken meat output increased from 2,961 mt in 1980 to 4,100 mt in 1985. Egg production increased from 1.6 m dozens in 1980 to 3.0 m dozens in 1985. Output of goat meat increased from 450 mt in 1980 to 625 mt in 1985.

A number of factors contributed to the relative success of the meat industry - availability of various incentives, such as subsidies on farm inputs; provision of infrastructure; and provision of adequate extension, research and other back-up services. In addition, the industry experiences favourable price structure through trade protection. However, one of the major problems affecting the industry, particularly poultry and pork, was the cost of imported livestock feed. The volume and value of both prepared feed and feed stuff, continued to increase rapidly during the Development Plan 8 period. This has resulted in a loss of foreign exchange thus, minimizing some of the benefits of import substitution.

The major objectives and strategies of the meat industry in the medium term will be as follows:

Poultry

The objective of poultry farming during DP9 are to:

• Consolidate the achievements made during DP8, and maintain self-sufficiency in poultry products;
• Continue to maintain stability within the industry; and
• Improve the efficiency of production.

Beef

The major objective during DP9 will be to consolidate and increase productivity on existing farms. During this period the industry expects to achieve 75 percent self-sufficiency as compared to 63 percent towards the end of DP8.

Pork

The major objectives of this industry in the medium term will be to:

• Assist existing production units to achieve maximum stocking capacity;
• Improve efficiency of production through farmer training, extension and demonstrations;
• Intensify the disease control programme to reduce the incidence of brucellosis, leptospirosis and pre-weaning losses; and
• Support the Pig Producer Association, where possible to improve marketing and distribution of pork.

Goat

The major objectives of goat production during the next five years will be to:

• Total self-sufficiency in goat meat;
• Increase efficiency of goat meat production and marketing;
• Limit environmental damage; and
• Generate further employment and economic activity in rural areas.

Dairy

The major objectives of dairy industry will be to:

• Achieve nutritional self-sufficiency;
• Maintain and generate further employment at farm and factory levels;
• Increase rural incomes; and
• Save foreign exchange.

Sheep

The sheep project will continue to be a research activity during DP9. The main objectives of this project will be to:

• Continue investigations into breed improvement and development;
• Maintain strict quarantine surveillance over the Makogai flock till 1989;
• Research into the comparative productivity of goat and sheep; and
• Train local staff in sheep husbandry and management.

While a lot of things had been planned for various livestock industries which were mainly aimed at consolidation, improvement in efficiency of production and eventual self-sufficiency in the medium-term prospect for livestock development does not look bright after the 14th May coup. The events of late has resulted in a sharp decline in the consumption of poultry meat, eggs, pork and beef products. The recent devaluation of the local currency by 17.75 percent has resulted in a sharp increase in the cost of raw ingredient imports. This has further increased the cost of production and a further drop in consumption of poultry and pork products is expected. Since the Fiji economy is very much dependant on sugar and tourism both of which are severely affected, its effect will be felt by the livestock sector for the next 2 to 3 years.

The dairy industry is also facing increased costs through a drop in throughput because of lower consumption. However, with the installation of the U.H.T. plant the long term prospects of the dairy industry look bright.

The long-term beef and goat industry depends on the pasture improvement programme. As far as livestock feed is concerned, particularly for pigs and poultry, this will continue to be imported for a long time yet. The local maize programme will not be able to fully meat the livestock requirements for at least the next 10 years as suitable land for maize farming will be the biggest constraint. The import substitution price for local maize irrespective of its cost of production will not auger well for the livestock feed industry.

There is no likelihood of any significant competition between the concentrated feed and other feeds for a long time. the high cost of food crops such as cassava will not permit its use in livestock feed for many years to come, thereby, avoiding any direct competition for human consumption.