PERFORMANCE, CHALLENGES

AND OPPORTUNITIES OF

NICARAGUAN LIVESTOCK

PRODUCTION

MSc Ariel J. Cajina L.

August, 2013

Managua, Nicaragua

Characterization of Nicaraguan

Livestock Production

Nicaraguan livestock production is based on

dual-purpose production systems.

• More specialized livestock production

systems existed between 1960-70 than

are currently in place.

• More than 95% of meat and milk

production comes from dual-purpose

livestock farms.

Livestock Farm Sizes (IV

CENAGRO)

Livestock Farm Sizes Total Livestock

Farms

Bovines

Livestock Farms Amount

In the Country 262,544 136,687 100% 4,136,422 100%

From 0.5 Mzs a Menos 31,804 5,183 3.8 22,217 0.5

From 0.51 to 1 Mz 16,676 3,286 2.4 13,812 0.3

From 1.01 to 2.5 mzs 38,215 10,009 7.3 42,507 1.0

From 2.51 to 5 mzs 35,672 13,785 10.1 71,996 1.8

From 5.01 to 10 mzs 33,686 17,768 13.0 128,631 3.1

From 10.01 to 20 mzs 29,881 20,292 14.8 223,784 5.4

From 20.01 to 50 mzs 37,440 30,869 22.6 673,738 16.3

From 50.01 to 100 mzs 21,238 19,053 13.9 850,502 20.6

From 100.01 to 200 mzs 10,911 9,995 7.3 818,552 19.8

From 200.01 to 500 mzs 5,468 5,041 3.7 789,839 19.1

From 500.01 to más 1,553 1,406 1.0 500,844 12.1

Livestock sector growth in

Nicaragua Growing in the humid zone where there is rainfall

9-10 months out of the year,◦ Deconcentration of meat and milk production

throughout the year. Desconcentración de la producción de carne y leche a lo largo del año. Calving is no longer focused solely at the start of the rainy season. It is now also focused near the end of the year and February in the humid zone.

◦ Livestock delivery for slaughter is more constant throughout the year.

◦ Growing in the humid zone results by default in better livestock nutrition. Feeding livestock during the dry season stops being a critical issue.

Growing in parts of the country where productive infrastructure (roads, electricity) is minimal.

Evolution of the Cattle Herd in

Nicaragua

Location of the Cattle Herd in

NicaraguaDepartamentos

Número de cabezas

de ganado bovino

Porcentaje

(%)

RAAS

1,128,311 27%

RAAN

466,263 11%

Chontales

409,482 10%

Matagalpa

380,574 9%

Río San Juan

291,524 7%

Boaco

259,656 6%

León

235,569 6%

Jinotega

197,992 5%

Chinandega

180,981 4%

Managua

131,891 3%

Estelí

108,415 3%

Nueva Segovia

98,507 2%

Rivas

86,542 2%

Madriz

52,981 1%

Granada

41,195 1%

Carazo

38,469 1%

Masaya

28,070 1%

TOTAL

4,136,422 100%

Fuente: IV Censo Nacional Agropecuario (CENAGRO) 2011.

Location of the Cattle Herd and

Milk Production in Nicaragua

Cattle Herd:

RAAS 27%

RAAN 11%

Chontales 10%

Matagalpa 9%

Río San Juan 7%

Boaco 6%

Sub-total 70%

Livestock resource availability in

Nicaragua. Evolution of the HerdHato Ganadero Extensión Densidad Hato Proyectado Densidad

2,001 Territorial Poblacional 2,011 Poblacional

cabezas km2 cabezas/km2 cabezas cabezas/km2

Dpto Matagalpa 259,336 6,702 39 449,034 67

Dpto Jinotega 120,413 9,263 13 277,890 30

Dpto Nueva Segovia 65,067 3,530 18 105,900 30

Dpto Madriz 36,351 1,712 21 51,360 30

Dpto Estelí 76,974 2,371 32 106,695 45

Dpto Chinandega 124,661 5,173 24 232,785 45

Dpto León 169,302 5,060 33 227,700 45

Dpto Managua 77,381 4,323 18 129,690 30

Dpto Carazo 28,878 1,066 27 47,970 45

Dpto Masaya 19,772 597 33 26,865 45

Dpto Granada 38,673 947 41 63,449 67

Dpto Rivas 71,339 2,156 33 97,020 45

Dpto Boaco 218,208 4,177 52 279,859 67

Dpto Chontales 324,318 6,483 50 434,361 67

Región RAAN 163,603 35,174 5 1055,220 30

Dpto Rio San Juan 169,634 7,473 23 411,015 55

Region RAAS 693,759 30,732 23 1690,260 55

2657,669 126,939 29 5687,073 47 1.64

Nicaragua in the international competitivity

context for low cost beef production

Beef production is forage-based; it possesses the base for profitable production

Improvement of productivity indicators opens a wide opportunity to improve profitability. Does not presuppose changes in livestock farming methods (increased costs of production) as in other countries.

The regional market lacking this product, as well as low domestic consumption levels, provide advantages for ensuring the required market opportunities to position national production.

Evolution of Beef Production in

Nicaragua

Evolution of Beef Yield in

Nicaragua

Development Axes of Livestock

Development in Nicaragua Improving marketing conditions of

livestock areas where product sales

are difficult and prices for farmers are

low.

Improve low levels of farm

productivity, once marketing issues

have been overcome.

Livestock Farming Issues in

Nicaragua

Only 30-40% of national milk

production has access to collection

centers (not all with refrigeration

capacity).

Milk collection infrastructure lacks of

an adequate refrigeration system.

Calves are marketed at very low

prices.

Productive infrastructure

(roads, electricity, etc.) is scarce in

Main milk and meat production

issues

Low levels of productivity

PARAMETER Current Figure Adequate

Calving rate(%) 52 85 Effective weaning(%) 48 82Calf mortality (%) 10 5Adult mortality (%) 2 1 Average slaughter age (years) 3.5 – 4 2.5-3Average slaughter weight (kgs) 400 430Lactation Duration (days) 210 310Milk/cow/day production (liters) 3.8 12

Importance of the Dairy Sector in

the Nicaraguan Economy◦ Sustained increase in exports. Dairy exports went from US$ 5

million in 2002 to US$ 140 million in 2011, and reached US$ 178

million in 2012.

◦ The dairy sector is the most dynamic in relation to exports.

◦ Strong impact in rural areas where poverty is concentrated.

◦ Strong livestock wealth distribution effect. The average livestock

farmer sells 18 gallons/day during the rainy season and 14

gallons/day during the dry season. The number of dairy farmers is

estimated to be over 120,000, which directly involves a population

of approximately 750,000.

◦ Sustainable income in the medium- to long-term for beneficiaries.

It is estimated that dairy prices will remain high, and although they

may decrease in the long term, they will not return to previous

years’ levels.

Nicaragua in the international

competitivity context for low cost

milk production

Nicaragua is one of the countries in Latin

America with the lowest product prices.

Prices to farmers of US$ 0.20 – US$ 0.42/

liter of milk. It is the lowest in Central and

Latin America.

Low cost milk production. It is one of the

most competitive countries. E.g. Increase in

milk sales as raw materials for the

Salvadorian dairy industry.

Milk Production and Collection

Capacity in Livestock Farming

Areas Milk Production: 1,200,000 liters/day

Collection and cooling capacity:

160,000 liters

Current Milk Collection Situation

MILK TRANSPORTATION TIME FROM FARMS TO

COLLECTION CENTERS (unrefrigerated)

TIME PERCENTAGE 2 hours or more 37.8%

1 – 2 hours 22.4%

31 – 60 minutes 23.5%

Under 30 minutes 8.1%

Source: Canislac, 2007.

Competitive Reconversion

Program for Cattle Farming in

Nicaragua Background

◦ Livestock development framework

between government institutions and

livestock sector organizations.

Current Situation

◦ Developing a Credit Program for

Sustainable Development with Banco

Produzcamos,

◦ Inventory of Livestock Projects, which

sum up to a preliminary estimate of over

US$ 150 million between 2008-2016

Competitive Reconversion Program for

Cattle Farming in Nicaragua

Start of Program development at

bankable levels. Resources are

secured.

National Plan of Livestock Research in

development for the Reconversion of

the Livestock Sector in Nicaragua.

Livestock models for production

intensification of Banco

Produzcamos

1) Establishing integrated farms with an average size of 25 hectares (ranging from 14 to 25 hectares) with a tendency towards milk production;

2) Establishing dual-purpose semi-stabled farms with an average size of 53 hectares (ranging from 25 to 70 hectares) tending towards milk production;

3) Establishing dual-purpose livestock farms tending towards high milk production, with an average size of 105 hectares (ranging from 75 to 140 hectares) with silvopastoral systems, and

4) Establishing integrated dual-purpose , high-productivity livestock farms with an average size of 245 hectares (ranging from 140 to 350 hectares) with a significant meat production component ( Establecimiento de fincas ganaderas de doble propósito integrales de alta productividad, con tamaños promedios de 350 mzs (rango de 200 a 500 mzs) con un componente cargado a la producción de carne (calf raising, development, and fattening).

Basic Elements for

Formulating Credit Projects

The base for livestock feed must be

grasses and fodder.

The country does not have new lands

to accomodate the traditional

horizontal expansion of livestock

farming.

Productive growth will be limited if

credit isn’t tied to technical assistance.

Livestock projects’ horizons must be

adapted to the biological productive

cycle

Investment Concepts in

Different Models (case I)

Conceptos de Inversión Total Monto %

Año 0 1 2 3 4 5 6 7 8 9 10

Establecimiento de Pastos 1,224 1,224 1,224 1,224 1,224 6,120 24.23

Establecimiento de Forrajes 380 380 1.50

Establecimiento de Semilleros 260 260 1.03

Establecimiento de Banco Leguminosas 160 160 0.63

Establecimiento de Cercas Perimetrales 1,176 1,176 4.66

Compra de Semental 2,200 2,200 8.71

Establecimiento de Cercas Internas 2,204 2,204 8.73

Asistencia Técnica 240 240 0.95

Gastos Operativos 350 350 1.39

Arreglos Silvopastoriles 2,000 2,000 7.92

Cosecha de Aguas 880 880 3.48

Reforestación 1,000 1,000 2,000 7.92

Mejoramiento Condiciones de Ordeño 557 557 2.20

Galera Terneros 1,000 1,000 3.96

Utensilios de Ordeño 250 250 0.99

Enchape de Corrales 480 480 1.90

Biodigestores 2,000 2,000 7.92

Paneles Solares - 0

Equipos - 0

. Picadoras 1,000 1,000 3.96

.Bombas de Agua -

Sistemas de Riego 2000 2,000 7.92

Inversión Total del Modelo 4,040 6628 5141 5224 4224 0 0 0 0 0 0 25,257 100.00

16.00% 26.24% 20.35% 20.68% 16.72% 25,257 25,257

Años

Inventory of Livestock Programs

and Projects

Government Institutions:

◦ 1. MAGFOR,

◦ 2. MEFFCA,

◦ 3. INTA,

◦ 4. Banco Produzcamos,

◦ 5. MIFIC.

Organizations:

◦ 1. OIRSA, - 5. ALBALINISA,

◦ 2. CATIE, - 6. FUNICA,

◦ 3. SNV, - 7. CARUNA,

◦ 4. USAID, - 8. CIAT.

Sectoral Organizations

◦ 1. CONAGAN,

◦ 2. CANISLAC,

◦ 3. UNAG,

◦ 4. CANICARNE,

◦ 5. APEN.

Inventory of Livestock

Projects

Institutions Number of Projects Amount US$

Government 46 59,853,634.40

Organizations 26 31,652,901.00

Sectoral Organizations 13 55,390,000.00

Identified but not

included

7

Total 92 146,896,535.40

National Livestock Research Plan for

Livestock Reconversion

Being developed by:

◦ Interinstitutional Commision integrated by:

MAGFOR, MEFFCA, INTA and UNA.

General Objective:

◦ Contribute through scientific research results

towards increasing Nicaraguan livestock

productive and reproductive rates with a

vision of economic and environmental

sustainability and a focus on food and

nutritional security.

National Livestock Research Plan for

Livestock Reconversion

In main cattle farming areas, the Nicaraguanlivestock sector has serious problemscommercializing its main products: meat andmilk, which ultimately leads to low productiveand reproductive rates. These problems areexacerbated by the environmental, social,and financial dimensions of extensiveproduction systems that use low-qualityprimary commodities, alongside low levels oftransformation and association.

National Livestock Research Plan for

Livestock ReconversionProblem 1

In different areas of our country there are technical, economic, andcultural factors (commercialization, infrastructure, and low levels offarm productivity) that have a negative impact on livestockproduction.

Objective

Characterize technical, economic, and cultural issues(commercialization, infrastructure, and low levels of farmproductivity) by area, and its degree of impact in livestock productiondevelopment.

Line of research

Technical, economic and cultural characterization of livestockproduction systems by geographic sites.

National Livestock Research Plan for

Livestock ReconversionProblem 2

Technological options (genetics, feeding and pastures,management, sanitation) used widely in the country are not the mostappropriate for the different productive areas and the mainproduction systems, according to their agroecological andsociocultural characteristics.

Objective

Identify the most appropriate technological options for productionsystems according to their agroecological and socioculturalcharacteristics.

Line of research

Development of appropriate technological options for theagroecological and sociocultural characteristics of productionsystems.

National Livestock Research Plan for

Livestock ReconversionProblem 3

A large part of the products generated through national livestockproduction lack the appropriate transformation processes that allowsthem to obtain greater added value and improve quality andhygiene.

Objective

Design strategic focal points of livestock product transformation withhigh added value that follow national and international qualitystandards.

Line of research

Development of transformation strategies for livestock products withhigh added value that follow national and international qualitystandards.

National Livestock Research Plan for

Livestock ReconversionProblem 4

Limited presence of organizational structures in the main livestockfarming areas of the country has had a negative impact on theexpansion of collection infrastructure and negotiation of productpricing.

Objective

Study the existing link between organizational structures and itsimpact on market mechanisms for livestock products.

Line of research

Study of the link between organizational structures and its impact onmarket mechanisms for livestock products.

.

THANK YOU