Animal Fattening and Fodders

John McPeakDepartment of Public Administration and International Affairs

Syracuse UniversityPresentation at ADRAS IBLI

June 8, 2015ILRI Nairobi

The Context• Barrett et al (2008) write “Private creditors that presently do not finance

potentially high-return ventures due to drought risk might be willing to lend if the assets that secure loans could be insured. Insurance can thereby “crowd-in” much-needed credit for enterprises in the region without leaving poor residents excessively vulnerable to losing assets when nature fails them.” (p.1).

• Empirical evaluations conducted in Ethiopia of the Productive Safety Net Program (World Bank 2010; Gilligan et al. 2006) illustrate that when the cash transfers are linked to some form of agricultural innovation long term poverty reduction is possible.

• Both safety net and index-based insurance programs should arguably improve producers access to credit for asset building investment.

• Is animal fattening one such innovation that research and extension can support?

Animal Fattening- Context• Producer prices in the semi-arid rangelands generally get less than half the terminal

market price.• Animal conformation plays an important role in determining price per head of an

animal.• Fattening operations have been growing over the past decade.

• Intensification in the livestock sector is already occurring in the form of finishing operations in places like Adama outside Addis Ababa (Aklilu 2009, Farmer 2010), in Coast Province in Kenya (Mahmoud 2006) and ranches elsewhere in Kenya (Farmer and Mbikwa, 2012).

• These operations are sourcing animals in the arid and semi-arid rangelands, holding them in finishing lots or ranches to improve or increase body condition, and selling them at a higher price.

• Guiding question; is there a way to retain some of that value added revenue in the semi arid areas.

• Alternative income generation option• Employment• Could be accessible with the kind of credit that is out there

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Nominal Price per TLU Ethiopia ETB

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Real Price Per TLU Ethiopia 2010 ETB

Addis Rea Borana Real

Price per Head in TLUAddis data fromwww.lmiset.netcourtesy Jay Angerer of Texas A&M

IBLI Boran household data Courtesy of the peoplein this room!

CPI adjustment from WDI online, 2010 Birr

Prices converted to TLU, .7 for camel, 1 for cattle, 10 for sheep and goats, average for price per TLU for 3 month quarter per year

Ref: ML_C01_Country

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MAURITANIA

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Wabaria $341

Kati $386

Kidal $201

Gossi $278Konna $314

Niamana $365

Nara $361Kayes $311

Tombouctou $361

Menaka $327

Adjelhoc $165

Segou $428Bamako $502

CATTLE

Data from www.malibetail.netMLPI2 project

At the same time there are large spatial differences in prices at a given point in time – cattle in Mali

What explains these differences?• Transport costs is certainly part of it

• But are there qualitative differences in animals in different markets?• Something of a mix of the two it appears

• Price by conformation in Ethiopian markets; Dubuluk in Borana, Adama near Addis.

• Body conformation percents in Addis, Adama, Mega, and Dubuluk

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Conformation Differences by Market

Fat Moderate Thin Very Thin

Very thin Thin Moderate Fat

Goat278 ETB ($16.35)

399 ETB ($23.47)

681 ETB ($40.06)

896 ETB ($52.71)

With respect to moderate -59% -41% -- 32%

Sheep226 ETB ($13.29)

324 ETB ($19.06)

556 ETB ($32.71)

729 ETB ($42.88)

With respect to moderate -59% -42% -- 31%

Average smallstock prices, Dubuluk market Ethiopia July 2010-July 2012 in Birr, 1 USD July 2012 corresponds to around 17 Birr.

What kinds of price differences are present in these markets by conformation?

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Average weekly nominal prices by fat (gras), medium (moyen), and thin (maigre) grade across the markets being monitored with the Mali Livestock Market Information System during August 2010 to June 2013. Same pattern in KE, ET, and TZ data.

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Overall Patterns in Nominal Prices for Cattle and Sheep in Mali (www.malibetail.net)

What are the prospects for animal fattening?

Reason Feed hard toget

Don't know how

Risk of animal loss

Lack of pastures

Lack of labor

Other things more

profitable

It takes too long

Past losses experienced The price

increase not worth it

Price risk

Ranked in the top 3

25% 23% 20% 20% 13% 9% 8% 6% 3% 2%

Animal to raise Animal to fatten Small commerce Purchase Durable goods

Give as gift Save in pocket Invest in credit / coop

Loan to merchant Loan to someone else

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If you unexpectedly received 50,000 CFA ($100) and had no outstanding demands what would you do with it?

Rank for those who had labor migrated before Rank for those who have never labor migrated

2008 survey of 1224 Individuals in Gao, Mopti, and Tombouctou,Mali, MLPI 2 project

If you said no to animal fattening, why did you say no?Adds up to more than 100% since percent in top three

Study of fattening operations in Mali, 2008-2009

Kassogue et al. 2010 All cash values are in CFA with 1 USD worth around 450 CFA at this point in time

Number

Average buying price

Average selling price

Average total feed cost

Average feed cost per day

Average days

implied return

implied daily wage

Total value added

Mopti cattle

58 92,695 ($205.99)

212,350($471.89)

77,088($171.31)

81($0.18)

66 25% 645($1.43) $5,486.41

Sofara cattle

215 91,995($204.43)

166,380($369.73)

62,205($138.23)

57($0.13)

65 8% 187($0.42) $5,819.33

Koro cattle

54 157,670($350.38)

272,465($605.48)

110,229($244.95)

58($0.13)

181 2% 25($0.06) $547.92

Do we have suggestions to improve feeding practices from research? From Niger

Bush Hay ad libitum 40 g per day per kg liveweight. 70 days

Groundnut Haulms (g/day) 0 300 0 600 900

Millet Bran (g/day) 0 0 400 400 400

Purchase Price 13,368 ($29.71) 13,083 ($29.07) 13,184 ($29.30) 13,173 ($29.27) 13,429 ($29.84)

Feed Cost 1,101 ($2.45) 2,356 ($5.24) 3,394 ($7.54) 5,933 ($13.18) 7,234 ($16.08)

Total Cost 1,301 (2.89) 2,556 ($5.68) 3,594 ($7.99) 6,133 ($13.93) 7,434 ($16.52)

Total cost + purchase 14,669 ($32.60) 15,639 ($34.75) 16,778 ($37.28) 19,306 ($42.90) 20,863 ($46.36)

Net return 743 ($1.65) 1,899 ($4.22) 2,090 ($4.64) 2,260 ($5.02) -131 (-$0.29)

Sales Price 15,412 ($34.25) 17,538 (38.97) 18,868 ($411.93) 21,566 ($47.92) 20,732 ($46.07)

Rate of return1 5.1% 12.1% 12.5% 11.7% -0.6%

Ayantunde et al. 2008, sheep fattening in Niger, feeding trials, different feed mixes, all values in CFA

Do we have suggestions to improve feeding practices from research? From Mali, sheep fattening.

Feed Days Daily Weight Gain Net Profit per animal

60% cotton seed cake, 40% peanut leaves

76 200 g 11,020 ($22.04)

45% cotton seed cake, 47% peanut leaves, 8% millet

84 192 g 9,415 ($18.83)

61% cotton seed cake, 39% sorghum straw

76 124 g 5,850 ($11.70)

From Hamidou Nantoume’s work in Kayes, Mali with sheep.

Thin sheep sell for about $40, average for $80, fat for $120

Trying to figure out using local resources least cost feeds for the animals

Also working to refine technical capacity to do feed analysis (feed trials and lab analysis including Near Infrared Spectroscopy)

Fodder options

• There are a series of cowpea accessions that appear to be ideally suited as a fodder crop, yet much of the work so far has been focused on the use of cowpea in West Africa (Singh et al , Ayantunde et al. Kristjanson et al. Tarawali et al.). We would like to see how this could be adapted to east Africa.

• Other feed options exist that could be investigated such as moringa oleifera, cajanus cajan, and dolichos lablab.

• Transformation options to produce feeds could include• Urea enriched straw• Molasses enriched straw

• I am sure there are lots I don’t know about as well

So where to next?

• West Africa with the history of Tabaski fattening has more of a tradition with this.

• Basic idea should transfer• The fact ranchers are moving into this area indicates a potential

opportunity.• Research on least cost rations, and how they change over time.• Introduction of fodder crops in areas where crops grow could present

a new income generating opportunity.• May be more promising than attempting crops like maize that are not going to

make it in most cases.

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Cumulative Percent for When a Cultivated Plot was Established – Borana &Guji, LAND, Ethiopia

Near Infrared Reflectance Spectroscopy (NIRS) training

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Boran cattle passing through markets