G. MORKRAMER, A. DEFLY, G.D.M. d'IETEREN, G. GRUNDLER, P. ITTY, S.G.A. LEAK, J.H.H. MAEHL, K. MAWUENA, S.M. NAGDA, J.M. RARIEYA, . THORPE and J.C.M. TRAIL
Introduction
Materials and methods
Production parameters
Economic parameters for livestock production
Results
Conclusion
References
A few years ago the Centre de Recherche et d'Elevage Avetonou (GREAT), Togo, a German-Togolese research cum extension centre, was established in Avetonou, southern Togo, with the aim of developing trypanotolerant livestock production in tsetse-affected areas of the country. Through the introduction of trypanotolerant livestock the centre aims to:
a) upgrade the existing stock,
b) bring livestock to regions devoid of animal production through the metayage system,
c) exploit crop - livestock interactions and
d) increase the living standards of farmers.
These programmes are integrated within the Togolese livestock policy framework, the goal of which is the efficient improvement of the supply of self-produced animal protein through the promotion of livestock development (Rafransoa, 1987).
A component of the livestock development programme has been the on-station and on-farm recording of livestock health and production and related tsetse parameters. Since livestock, and cattle rearing in particular, are uncommon in southern Togo, all the animals followed in the survey were introduced recently, either on the research station or, since 1981, by CREAT, who started to distribute livestock to the neighbouring villages. The farmers later had to reimburse CREAT by returning an equivalent number of offspring. Almost all the cattle herds surveyed are communal herds belonging to associations of up to twenty villagers, whereas the small ruminants belong to individual farmers.
All the village herds were visited every week by CREAT extension staff who gave extension advice and treatments.
From January 1984 to December 1986 health and productivity data were collected according to the standard Network procedures.
Cattle and sheep were the two species studied with two cattle herds of approximately 150 animals being maintained on the research station, while 10 herds of 11 to 38 head of cattle and 7 flocks of sheep of 20 to 28 animals were monitored in the villages. The cattle breeds in both the station and in the villages were N'Dama and Race Locale, with a very small number of village cattle being crossbreds with 25 or 50% exotic blood of German Yellow or Brown Swiss. The Race Locale cattle are West African Shorthorn with some Borgou genes. The sheep were all Djallonke. Thus nearly all of the livestock in the survey were trypanotolerant. The livestock were exposed to a low-to-medium tsetse challenge, the mean monthly trypanosome prevalences recorded being 2.7% for sheep, 4.9% for station cattle and 7.2% for village cattle.
The aim of this study is to examine the economics of the livestock production sector for the three categories which were surveyed, namely station cattle, village cattle and village sheep. Originally a cattle breed comparison was also planned; unfortunately the number of crossbreds was too small and there were not enough herds with both N'Dama and Race Locale to avoid the problem of confounding effects of breed and herd.
The data considered for the economic analyses were the mean results of the production parameters recorded during the three-year survey and the economic data obtained during a survey in 1987 (all prices and costs are as per 1987). These were regarded on a herd and on an overall basis for the three categories.
Both the biological and economic data (production inputs and prices) were entered into modified versions of a Herd Model for economic analysis developed at ILCA (don Kaufmann et al., 1987). The model runs on a microcomputer and is written in LOTUS 1-2-3. The modifications concerned the small ruminant model and aspects of health treatments and fodder cultivation, while adaptations were also made to suit the present data set and the analysis required. The model works on a yearly basis and gives results of the evolution of the herd structure and of the outputs both in biological and economic terms over a ten-year period; hence the data is also entered on a yearly basis. The general approach has been described by McIntire (article 34 of these Proceedings) and an example from a study in Kenya reported by Itty et al. in article 35 of these Proceedings.
Tables 1 and 2 give the overall production parameters by management class and animal age and sex classes. Noteworthy points concerning the productivity data are, first of all, the total absence of milk extracted for human consumption since milk is totally absent from the diets in southern Togo; and secondly, the very low mortality rates for cattle even under village management. This is thought to be mainly due to the very close supervision of CREAT extension service who provided all the care and treatments required in these small herds. Thirdly is the somewhat high offtake rate in certain age and set categories of both village cattle and sheep; this was due to the fact that animals reimbursed to CREAT were included in the offtake rates along with the sales and slaughters.
Table 1. Overall cattle production parameters by management system.
|
Age class/sex |
0-8 mth |
0-36 mth |
36+ mth |
Total |
|||||
|
F |
M |
F |
M |
C |
F |
M |
|||
|
Herd structure (no) |
|||||||||
|
|
Station |
28 |
25 |
72 |
65 |
0 |
103 |
10 |
303 |
|
|
Villages |
27 |
25 |
56 |
24 |
17 |
112 |
13 |
274 |
|
Offtake rates (%) |
|||||||||
|
|
Station |
0 |
0 |
1.8 |
10.3 |
0 |
10.4 |
20.0 |
|
|
|
Villages |
2.5 |
2.7 |
22.3 |
49.2 |
88.2 |
6.8 |
23.1 |
|
|
Weights (kg) |
|||||||||
|
|
Station |
78.8 |
|
160.5 |
|
291.3 |
329.3 |
|
|
|
|
Villages |
65.9 |
|
153.4 |
|
227.2 |
310.1 |
|
|
|
Mortality rates (%) |
|||||||||
|
|
Station |
0.7 |
|
0.8 |
|
|
0.5 |
|
|
|
|
Villages |
2.6 |
|
2.6 |
|
|
2.7 |
|
|
|
Calving interval (days) |
Milk extracted for human consumption (litres/cow) |
||||||||
|
|
Station |
459 |
Station |
0 |
|||||
|
|
Villages |
550 |
Villages |
0 |
|||||
mth: months
M: male
F: female
C: castrate
Table 2. Overall sheep production parameters.
|
Age class/sex |
0-3 mth |
3-24 mth |
24 mth + |
Total |
|||
|
F |
M |
F |
M |
F |
M |
||
|
Herd structure (no) |
18 |
16 |
24 |
25 |
74 |
16 |
173 |
|
Weights (kg) |
5.7 |
11.8 |
19.8 |
24.5 |
|
||
|
Offtake rates (%) |
1.2 |
2.1 |
15.8 |
42.8 |
3.6 |
31.2 |
|
|
Mortality rates (%) |
7.1 |
23.2 |
15.8 |
|
|||
|
Lambing interval (days) |
|
Litter size |
|
|
|||
|
260 |
|
1.19 |
|
|
|||
Veterinary services
A simulation of the veterinary services provided had to be undertaken in order to include the costs of these since the actual costs incurred by CREAT are very high due to their strong research and animal breeding component.
The veterinary services simulated here are a compromise between what is actually needed for a service of reasonable quality and what the Togolese government is able and willing to spend in a region with a low livestock density.
These services would cover in a station or ranch situation 2500 head of cattle within a 15 km radius or in villages 1000 cattle and 1000 sheep in a 35 km radius.
The visits to the herds would be bi-monthly and the animals presenting clinical symptoms of infection would have their blood sampled for examination (it is estimated that 7.5% of the animals present at each visit would fall into this category). To implement this work, the following items would have to be accounted for:
|
a) Personnel
|
1 Livestock technician |
|
2 Assistant technicians |
|
|
b) Laboratory |
1 Building with basic furniture |
|
c) Equipment
|
1 Microscope |
|
1 Centrifuge for capillary tubes |
|
|
1 Kerosene refrigerator |
|
|
Fuel for refrigerator |
|
|
d) Material for blood examination |
Glassware (vacutainers, capillary tubes, slides, cover slips) Ear-tags |
|
e) Transport |
80cc all-terrain motorcycle Fuel |
The distribution and total mean annual cost over the ten years are given in Table 3. These show that costs in villages are twice as high as in the station because of the lower number of animals that can be followed and the transport costs, both of which depend on the distances between the herds and between these and the laboratory.
Table 3. Distribution (%) and total mean annual cost of veterinary services.
|
|
Station |
Villages | |
|
Personnel |
57.1 |
54.7 | |
|
Transport* |
14.2 |
21.0 | |
|
Blood examination* |
13.2 |
9.3 | |
|
Equipment* |
12.2 |
11.8 | |
|
Laboratory |
3.3 |
3.2 | |
|
Cost per animal (CFAF) |
|
| |
|
|
: cattle |
508 |
1025a |
|
|
: sheep |
|
295a |
a It is assumed that cattle incur 4/5 and sheep 1/5 of the costs (except for blood examination costs which are on a per head basis).* Items to be mainly accounted for in foreign currency,
1987 exchange rate: US$1 = CFAF300
Veterinary treatments
Regular, systematic herd treatments only concerned acaricidal drugs: in the station, the cattle were dipped every week during the rainy season and every other week during the dry season; this represents a total of 37 dips per year whereas in the villages, both cattle and sheep were sprayed every two weeks. Global herd treatments were given according to the physiological states using the following drugs:
Vaccinations against Peste des Petits Ruminants-PPR/peripneumonia (Bisec), anthrax, brucellosis and Infectious Bovine Rhinotrachitis/Infectious Vulvovaginitis-IBR/IPV (Bovoflavine); deworming, mainly with Tetramisole.
Individual treatments were given when required for a series of drugs which include diminazene aceturate (Berenil) antibiotics, vitamins and a few others. Table 4 presents the distribution and the overall annual mean cost of drug treatments given per animal in Year 1.
The results presented indicate that the costs are similar for both station and village cattle (same supervision and services) and less than half for sheep compared to cattle. Given low-to-medium trypanosomiasis risk, the infection type and the breeds considered here, trypanosomiasis does not induce heavy drug costs. Berenil was given curatively for all animals showing clinical symptoms or having a PCV below 24% or with trypanosomes detected in the blood, with the exception of cases involving T. vivax and a PCV greater than 24% (The last point is due to the fact that CREAT considers the pathogenicity of the local strain of T. vivax to be very low (Djabakou et al., 1981)).
Table 4. Distribution and overall annual mean cost of drug treatments given per animal species and management system. (Year 1 taken as basis).
|
Species/management system |
Cattle |
Sheep |
||
|
station |
villages |
villages |
||
|
Cost distribution (%): |
||||
|
|
Acaricidesa |
57.1 |
42.1 |
53.4 |
|
|
Vaccinations |
19.7 |
23.1 |
28.5 |
|
|
Deworming |
21.2 |
22.3 |
8.6 |
|
|
Individual treatmentsb |
1.5 |
6.6 |
7.6 |
|
|
Trypanocidal drugsc |
0.5 |
5.9 |
1.9 |
|
Annual total mean cost/animal (KSh.) |
1128 |
1100 |
433 |
|
a Includes depreciation costs of the dip in the station and of manual sprayers in the villages.
b Excluding trypanocidal drugs.
c Berenil for 97% of the cases.Note: Although Table 4 presents the average drug expenditure per animal in Year 1 this is only to give an idea of the level of costs we are dealing with; for the analysis, the costs used were expressed per animal and per 100 kg liveweight on a yearly basis for each age/sex class.
Minerals
Mineral blocks were provided in all herds. The overall costs per TLU are given in Table 5.
Table 5. Overall annual costs in CFAF of mineral blocs per TLU.
|
Cattle station |
Cattle villages |
Sheep villages |
|
1800 |
738 |
2377 |
Note: One mineral bloc of 10 kg cost CFAF 1800.
Fodder
The village herds graze on natural pastures of fallow land, under oil palm trees or on river banks, etc. and hence the fodder costs are non-existent. The cropping intensity is such that for the moment, there is no competition between crops and livestock for land and therefore the opportunity cost of land can still be disregarded.
On the station the two herds graze entirely on planted pastures of Panicum maximum. Each herd comprises 119 TLU and requires 70 ha at a stocking rate of 1.7 TLU/ha (calculated by GREAT). The 70 ha are divided into four pastures of 17.5 ha each. The fodder costs are calculated for bush clearing followed by pasture establishment. The costs of a crush and water supply to the cattle were added to the costs strictly concerning fodder since these are indispensable. The crush cost is taken into account in the next paragraph. In the villages water is free of charge (river); the total costs over the ten years amounts to CFAF27,080,000 and these are distributed as shown in Table 6.
Table 6. Distribution (%) of costs of fodder cultivation for station cattle.
|
Pasture establishment |
: |
38.0 |
|
Recurrent costs (fertilizers and maintenance) |
: |
35.8 |
|
Fencing (concrete poles) |
: |
26.2 |
|
Crush |
: |
0.1 |
|
Water supply |
: |
2.5 |
Night kraal
While the station cattle stay in the fenced pastures at night, the village animals are brought back every night to their kraal. All the cattle herds possessed the same type of kraal and crush which were put up with the technical assistance of CREAT, while the herd owners paid for the labour and material involved. The total cost over the ten years amounted to CFAF168,000 for each Kraal.
The cost of the kraal for the sheep varied according to each herd since the owners were left free to organize themselves to build a kraal which would satisfy the requirements set by CREAT. The overall average cost per herd comes to CFAF16,500 over the ten years.
Herdsmen
The herdsmen employed on the station represented an annual cost of CFAF408,000 per herd. The cattle herds in the villages incurred a mean herding cost of CFAF98,500 per year; all except one herd owner had a herdsman. Only in one sheep herd were herding costs charged. A member of one of the associations was the herdsman and his remuneration amounted to CFAF42,000/year.
Total production inputs
The distribution and the overall mean annual cost of production inputs per animal are given in Table 7.
This distribution shows the very high expenditure due to fodder production on the station which represents the bulk of their production costs. The village cattle show high costs of herding labour; this is because the herd owners, who do not have past experience with cattle, have to employ qualified herdsmen who are not readily found in this part of the country. Most herdsman are Peuhls who have to be offered relatively high salaries to attract them to work in the south. The input level for sheep is very low, only the indispensable being purchased.
Table 7. Distribution (%) and overall mean annual cost of production inputs per animal.
|
|
Cattle station |
Cattle villages |
Sheep villages |
|
Veterinary services |
2.4 |
13.7 |
22.6 |
|
Veterinary treatments |
5.6 |
15.2 |
36.5 |
|
Minerals |
7.1 |
6.9 |
11.4 |
|
Fodder cultivation |
79.2 |
0.0 |
0.0 |
|
Night kraal |
- |
8.0 |
10.4 |
|
Herdsmen |
5.7 |
56.2 |
19.0 |
|
Cost/animal (CFAF) |
19,928 |
6,874 |
1,188 |
Other economic data
In addition to the costs of production inputs, the following economic data were recorded during the 1987 survey: meat price CFAF325/kg liveweight and the interest rate 1%, which is used for discounting.
Table 8 presents the overall results. For village cattle, these are presented for a herd size of 303 animals (instead of the actual 274 head) which is the number of cattle in the station. This was done to give a better comparison between both production systems. The original herd structure was maintained.
The results are given first without the costs of veterinary services, which is the producer's situation since in Togo the livestock owners pay for the drugs only. Secondly, the results are presented inclusive of the costs of veterinary services, which is the comprehensive view of the production sector as seen by the government.
It thus appears that the level of production inputs greatly influences the overall cost-benefit results: the station cattle yield negative returns due to the very high costs of their pastures; on the other hand the highly positive results of sheep production in the villages are due to a great extent to the very low level of inputs required in comparison to village cattle. On a herd basis the two station herds had similar results, whereas the village cattle results showed one herd with negative returns and the best yielding an IRR of 18.8%, when veterinary services costs were excluded. When these were included two herds had negative returns, while the best had an IRR of 16.9%. For sheep, all results were very high, the range being from 15.7% IRR to 60.3% without costs of veterinary services and 11.0 to 54.5% with these costs included.
Table 8. Overall cost-benefit results of livestock production for station and village cattle and village sheep.
|
|
Station cattle |
Village cattle |
Village sheep | |
|
a) Without costs of veterinary services | ||||
|
|
Internal Rate of Return (%) |
-1.8 |
12.0 |
36.1 |
|
|
Net Present Value (CFAF1000) |
-25315 |
5659 |
2062 |
|
b) With costs of veterinary services | ||||
|
|
Internal Rate of Return (%) |
-2.2 |
10.3 |
30.9 |
|
|
Net Present Value (CFAF1000) |
-26476 |
3695 |
1724 |
Sensitivity analysis
Sensitivity analyses were carried out on the cattle results to test certain parameters and to take a closer look at aspects of critical importance. The results for the sheep production were not analysed further because of the outstanding results they yielded despite average productivity parameters. The results used as a starting point for the sensitivity analyses were the overall IRRs without costs of veterinary services.
Fodder production for the station cattle
The fodder production costs were first reduced by using coconut tree poles instead of concrete poles. As a result the IRR increased very marginally from -1.8% to -1.3%. If no bush clearing was needed, which is the case once planted pastures have been established and only replanting is needed, the IRR still does not reach the break-even point of 7% for the producer: 5.3% with concrete poles and 5.8% with coconut poles. Finally a run was performed with the following assumptions: the station cattle are grazed on natural pastures and since the higher original productivity results of the station cattle could be due to the better nutrition from P. maximum pastures, the average village productivity results are entered instead of station results. The herd totals 204 TLU and CREAT estimated the optimal stocking rate on the village pastures to be 0.5 TLU/ha. Therefore 408 ha of fenced pastures are needed. Even taking into account these costs and the lower productivity results, the IRR reached 5.3% which is far above the IRR resulting from the inclusion of fodder production. This shows that fodder production is not justified even if it alone did lead to the increased productivity on the station. (The artificial pastures were established because of the limited land available to the station.)
Liveweight meat price for the station cattle
At present the liveweight meat price is CFAF325/kg. If the station was able to sell its meat at CFAF650/kg, the IRR for the producer would be 8.0% and if the costs of veterinary services are taken into account, the IRR would equal 7.8%. This price of CFAF650/kg is the price received by the proprietors of a neighbouring ranch who are marketing their meat in their own shop in the capital, Lome. (The ranch actually buys animals for breeding from GREAT.) Their produce supplies mainly the expatriates who prefer to buy well-presented fresh meat cut in the European style. The local producers' price for meat is depressed by cheap, deep-frozen imports from the EEC which are found virtually everywhere in the country. The up-market potential for sales to expatriates is at the moment saturated by the supply from this commercial ranch, but this illustrates that even with the high pasture expenditure on the station, they would be able to break even and cover the costs of veterinary services, if these higher prices were offered.
Biological productivity of the village cattle
Sensitivity analyses were carried out on the biological productivity of village cattle since their results appeared to be quite high compared to other African village situations. The good performance was attributed to the attention and close monitoring provided by CREAT extension staff. Productivity may well decline following the withdrawal of CREAT services.
Table 9 presents the productivity data as recorded in Avetonou village cattle as well as estimates of the productivity of N'Dama village cattle in The Gambia, These were estimated with the help of various reports (African Development Fund, 1982; International Trypanotolerance Centre, 1987; Riley, 1987).
Table 9. Productivity parameters of Avetonou village cattle and N'Dama village cattle in The Gambia.
|
|
Avetonou |
The Gambia |
||
|
Mortality rates (%) |
0-8 mth |
2.6 |
20 |
|
|
|
8 mth-3 yrs |
2.6 |
10 |
|
|
|
>3 yrs |
2.7 |
5 |
|
|
Liveweights (kg) |
0-8 mth |
65.9 |
40 |
|
|
|
8 mth-3 yrs |
153.4 |
130 |
|
|
|
Female |
>3 yrs |
227.2 |
210 |
|
|
Male |
>3 yrs |
310.1 |
250 |
|
Calving rate (%) |
|
66.4 |
50.0 |
|
The results show that if the mortality rates recorded in Avetonou are replaced by those of The Gambia this alone is enough to depress the IRR by half, from 12% to 6.1%. This means that with high mortality rates, the returns to the producers in Avetonou would not even reach the level of the interest rate (7%). If in addition one substituted the weights in Avetonou by those of The Gambia, the IRR would fall to 4.4%; with a further productivity decrease in terms of reproduction (50% calving rate) the IRR would be down to 0.7%. These results show that although the returns to village cattle were positive in the study, if the productivity falls as it might be expected to, the returns are likely to be unsatisfactory even to the producer.
This study on the economics of trypanotolerant livestock production with station cattle and village cattle and sheep shows that with the low-to-medium trypanosomiasis risk prevailing and the breeds considered, the costs due to trypanosomiasis control are negligible.
The comparative study of the three livestock production categories indicates that the introduction of Djallonke sheep production yields very positive economic results which would also cover the costs of veterinary services; this is mainly due to the very low level of inputs required since the productivity reached was not outstanding. The cattle production in the station yielded negative returns due to the very high costs of fodder production. The high productivity achieved on the station was not enough to justify in economic terms the establishment of pastures of Panicum maximum. With the present meat prices and the high costs of manpower to herd the village cattle, the profitability of cattle production in the villages is questionable since the returns are sensitive to expected reductions in productivity.
Livestock, especially cattle, are at present in competition with crops for the availability of capital which is the most limiting factor of production and jeopardizes any spectacular development. Livestock production could still be justified because it does not compete for land with the crops (the animals graze on fallow land, under tree plantations, etc.), whereas in the future, only a production system which integrates livestock and agriculture will be economically justifiable because of the high agricultural potential of the land.
African Development Fund. 1982. Appraisal Report of Livestock Development Project, Republic of The Gambia.
Djabakou, K., H.O. Fimmen and E. Karbe. 1981. Infection naturelle de T. vivax chez les bovine trypanotolerants. International Scientific Council for Trypanosomiasis Research and Control. 17th Meeting, Arusha, Tanzania.
International Trypanotolerance Centre. 1987. Progress report of the research project on N'Dama production. The Gambia.
Rafransoa, Z. 1986. La vulgarisation bovine au Togo, exemple du CREAT. Memoire de fin d'etude. ISTOM, Le Havre, France.
Riley, J.A. 1987. Nutrition project of the EEC funded research programme at the International Trypanotolerance Centre, The Gambia. Final report of consultant nutritionist.
Von Kaufmann, R. J. McIntire, P. Itty and Edjiguyehu Seyoum. 1987. User's Manual for ILCA's Micro-computer Herd Model. Addis Ababa: ILCA.
