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The beef chain in Costa Rica: Identifying critical issues for promoting its modernization, efficiency and competitiveness
2008
Holmann, Federico J. | Rivas Ríos, Libardo | Pérez, E. | Castro, C. | Schuetz, P. | Rodríguez, J.
The objectives of this study were to (1) describe the economic agents of the chain and their commercial and legal relationships; (2) identify the articulations between links, technological levels, indicators of efficiency, installed capacity (scale), and degrees of occupation; (3) characterize and estimate the costing and pricing structures, and the generation of value in different links of the chain; (4) identify those critical costs that can be modified through technological interventions, policy, or other activity; (5) determine the biological and economic risk factors throughout the chain; and (6) develop a methodology to identify and estimate the costs and benefits in each segment and evaluate the generation of value throughout the beef chain. Data at the farm level was obtained from a national livestock survey (CORFOGA 2005b), which provided data on production systems, inventories, productivity, culling, and labor. In addition, surveys were carried out in different segments: (1) auction houses, (2) slaughterhouses, (3) butcher shops, and (4) supermarkets. The aim of these surveys was to describe behavior, determine risks and costs, and identify problems. The weak dynamics of livestock production in Costa Rica are reflected in unsatisfactory productivity indicators. The annual gross income was estimated as US$44/ha for cow-calf operations, $126/ha for dual purpose (including income from milk sales), and $135/ha for fattening activities. Such income rates are considered extremely low, if one uses as reference the commercial value of land allocated to livestock production (ranging between $1000 and $2000/ha). The aforementioned biological inefficiencies, combined with high land costs, impede the recovery of opportunity costs for the capital invested in land, thus making beef production uncompetitive. The cow-calf operation, with its low productivity, remunerates family labor with wages below the legal minimum. On the assumption that the only cash cost is that of labor, cow-calf farms pay family workers at a wage that is equivalent to 60% of the legal minimum. Auctions present relatively good profits per event. However, when these profits are analyzed on a calendar-day basis, they are unattractive because of the low use of installed capacity. One strategy that would usefully improve the efficiency of the auction system in Costa Rica is its integration to reduce the number of fixed operational costs or encourage sharing of these houses so that administrative and operational personnel are rotated among the several existing auctions, taking advantage of the fact that they differ in their days of operation. This scheme would help reduce fixed costs and the commission collected without affecting profits, thus improving efficiency in this link of the chain. However, this option is not easy to implement, as auctions are run by private operators, whose various interests do not always coincide. The industrial sector formed by rural and industrial slaughterhouses shows a low occupation of installed capacity, resulting in high operational costs and low labor efficiency. The total operational costs of slaughtering and dressing are estimated as being between US$32 and $66 per animal. If the estimated unit costs are compared with the rates charged per slaughtered animal (between $15 and $23), then we have to conclude that rural slaughterhouses work at a loss and that industrial slaughterhouses cover their operational costs with processing services and the very small profit margins from sales of byproducts. The best performance in terms of efficiency and profitability is found in the retail sector of butchers and supermarkets. The rate of profits, expressed as the fraction of the final price paid by the consumer that remains in the butcher’s hands as remuneration of his work, ranges widely between 3% and 40%, with an average of 32%. If these profit rates are compared with those of other retail businesses, which are about 8%, then this type of activity presents excellent profit margins with relatively low risk. If, in addition, we take into account that this sector also offers the consumer a broad range of meat cuts from other animals such as pork and chicken, and processed meats, then profit margins are still higher. The value generated throughout the chain, as a percentage of the final value of the young steer at retail price according to activity, is distributed as follows: fattener (34%), retailer (33%), breeder (19%), slaughterhouse (7%), transporter (6%), and auction house (1%). As observed, the distribution of value throughout the beef chain is totally inequitable and incongruent with the level of individual risk confronted by the actors who form it. The inequity observed in the distribution of added value reflects a clear dominant position in the market of some actors of the chain, which enables them to capture a very high fraction of the profits. The value generated in the chain, adjusted for operational time in each link, ranges between US$0.28/animal per day for the breeder and $45.85/animal per day for the butcher. Thus, the highest proportion of the total added value concentrates on the final link of the chain. The butcher or supermarket obtains, on the basis of one animal in the same unit of time, 164 times more value that the breeder located in the first link of the chain. The latter has to confront biological and economic risks not covered by insurance policies, whereas retailers may mitigate risks through insurance policies for their raw materials, equipment, and infrastructure. The competitiveness of the beef chain is the aggregate of the efficiency and productivity of all the links that form it. In a situation where, in the final segment, the demand for beef is low and weakly dynamic, then economic signs of modernization and the technological change it promotes, are not being generated in other components of the chain, particularly in the first link of production. This, in turn, results in a vicious cycle, generating low productivity and lack of competitiveness. To promote technological change, efficiency, and competitiveness in the value chain for beef in Costa Rica, we propose the following six recommendations: 1. That successful experiences of other chains such as that of poultry be analyzed and learned from to identify strategies that would increase the efficiency of the beef chain as a whole. 2. That strategies for promoting the milk production of breeding cows be developed to increase family income, as remuneration of labor is currently below the minimum wage. This option would be viable only in localities where a milk market exists. That livestock producer funds [a livestock producer fund consists of granting livestock in company to produce meat, provided that the producer concerned has adequate pastures for this purpose on his farm] be created as mechanisms to develop social capital, reduce transaction costs, and help improve the chain’s productivity and profitability. These organizations would bring together the different classes of the chain and favor synergies in the interaction of public and private actors. 3. That incentives be created to promote the large-scale adoption of already available improved forage species, as most of the problem of low livestock productivity originates in poor and deficient feed. This strategy would emphasize feeding during dry seasons, thereby minimizing seasonal weight losses in the national herd and improving the profitability of farms. 4. That a carcass classification system be established, based on quality and price that would permit differentiating supplies for different segments of the market. 5. That consumer education be promoted on the health benefits of beef, forms of preparation, and differentiating between cuts, uses, and qualities of beef products.
اظهر المزيد [+] اقل [-]Evaluation of ecosystem services in riparian forests using benefit transfer method
2016
Saklaurs, M., Latvia Univ. of Agriculture, Jelgava (Latvia) | Krumins, J., Latvia Univ. of Agriculture, Jelgava (Latvia) | Straupe, I., Latvia Univ. of Agriculture, Jelgava (Latvia) | Jekabsone, I., Latvia Univ. of Agriculture, Jelgava (Latvia)
The aim of this paper is to evaluate ecosystem services in riparian forests of Latvia using benefit transfer method. The core of benefit-transfer method is to transfer economic costs from one economic situation to another by using pilot indicators, thus saving time and monetary resources of the research. This method also is applicable for transfer of value of ecosystem services to research territories where such values have not been set. As to the evaluation of ecosystem services in riparian forests, data derived from these indicators are compared with the situation in riparian forest stands. Successful application of this method depends on the quality of existing research and their transferability. For example, the data on research of non-timber values can be used to set these values in riparian forests. Value of ecosystem services for 1 ha riparian forest stand in Latvia judging by 1) N and P removal (N - 8.14 euro haE-1 yE-1; P - 2.16 euro haE-1 yE-1); 2) Valuing carbon capture (478.6 euro haE-1 y-E1); 3) Valuing noise buffering (2.02 euro haE-1 yE-1); 4) Valuing air purification (NOx - 1332.5 euro haE-1 yE-1, NH3 - 216 euro haE-1 yE-1, particulate matter - 792 euro haE-1 yE-1); 5) Valuing pollination (timber - 15.25 euro haE-1 yE-1, non-timber - 4 euro haE-1 yE-1) total at 2850.67 euro haE-1 yE-1, which is significantly more than just the traditionally viewed timber value.
اظهر المزيد [+] اقل [-]Monetary value and social role of forest recreation services in Latvia
2011
Jankovska, I., Latvia Univ. of Agriculture, Jelgava (Latvia) | Donis, J., Latvian State Forest Research Inst. Silava, Salaspils (Latvia) | Straupe, I., Latvia Univ. of Agriculture, Jelgava (Latvia)
Recreation services are the forests’ non-market goods which constitute a substantial part of the total economic value and are important for the choice of multi-functional forest policies. However recreational services do not always have a market price and comparatively less literature applies value orientations to examine issues concerned with recreational use of natural resources. This research reports on the findings of the comprehensive, national-level study about the contribution of forest recreational services to Latvia’s national economy in 2009 and about the respondents’ declared choices, travel costs and willingness to contribute some money for improvement of amenities in a forest. Two general information sources were used to obtain the information - available statistical data and the contingent valuation survey to estimate the respondents’ choices and habits for recreation activities in the forests. Results show that forest recreation is very popular and highly valued in Latvia. The statistical analysis confirms that the significant differences exist between varied respondents’ socioeconomic groups in their objectives, choices and preferences to use the forest recreational services.
اظهر المزيد [+] اقل [-]Fertilization value of early red clover, Washington lup and Crimson clover as green manure crops
2014
Bender, A., Estonian Crop Research Inst., Jogeva, Jogeva vad. (Estonia) | Tamm, S., Estonian Crop Research Inst., Jogeva, Jogeva vad. (Estonia)
Field trials were carried out at Jõgeva Plant Breeding Institute in 2008 – 2011 to identify the possibilities of using early red clover (Trifolium pratense L.) ‘Jõgeva 433’ (diploid), Washington lupine (Lupinus polyphyllus Lind.) ‘Lupi’ and crimson clover (Trifolium incarnatum L.) as green manure. Fresh material of the above species was ploughed into the soil in autumn of the sowing year. Fertilizer value was quantified through yield and grain quality of spring wheat ‘Vinjett’ and barley ‘Inari’. The composition and amount of ploughed biomass were recorded. By the time of ploughing, Washington lupine had produced the most abundant biomass. >From studied species crimson clover had the lowest fertilizer value – only by 6–7% extra yield of spring wheat in the following year. Crimson clover had no residual effect of fertilization in the second year. The fertilizer values of red clover and Washington lupine were approximately equal. Their effect on yield increase of spring wheat and barley lasted for three years, on grain quality for two years. Red clover, ploughed into the soil in the year of sowing, resulted in maximum spring wheat yield increase of 23.9%, compared with N 0 treatments; that of Washington lupine was 21.3%. The residual positive effect in the second year quantified as barley production increased by 6.2% in Washington lupine and 7.9% in red clover. The yield increase in the third year was 3.9% and 12.1%, respectively. Green manure increased the contents of crude protein and gluten in spring wheat and crude protein content in barley.
اظهر المزيد [+] اقل [-]Economic value of wood chips prepared from young stand tending
2013
Kaleja, S., Latvia Univ. of Agriculture, Jelgava (Latvia) | Grinfelds, A., Latvia Univ. of Agriculture, Jelgava (Latvia) | Lazdins, A., Latvian State Forest Research Inst. Silava, Salaspils (Latvia)
Small diameter wood obtained from young stand tending, with average d1.3 is greater than 4 cm, is suitable for the production of biofuel. So far mainly hand motorized tools have been used in young stand tending, to gather the small -diameter wood is costly and unprofitable. As the technology evolves and labor costs rise studies are carried out on how to increase the profitability of the young stand tending, by applying mechanized tending and production of biofuel from small-diameter wood. The study analyzed indicators, which directly affect the profitability of biofuel production from small-diameter wood produced by harvester tending. The biofuel production costs are analyzed using average purchase price of wood chips production service paid by JSC ‘Latvijas valsts meži’ (further JSC LVM). Revenue related to sales of chips is analyzed on the basis of JSC LVM average sales price for wood chips. The price of the preparation of the small-diameter wood is high and the proportions of the full cost price of wood chips make up 38%. The price of forwarding service impact on the full cost price comprises up to 25% and depends on the forwarding distance. The profitability calculation shows, that production of wood chips from the harvester tended young stands has to be regarded as unprofitable.
اظهر المزيد [+] اقل [-]The assessment of contribution of forest plant non-wood products in Latvia's national economy
2011
Donis, J., Latvian State Forest Research Inst. Silava, Salaspils (Latvia) | Straupe, I., Latvia Univ. of Agriculture, Jelgava (Latvia)
The forests in Latvia occupy 49.9% of territory and they have significant economic, ecologic and social functions. The notion ‘forest value’ is frequently understood as the value of wood only but non-wood values are often neglected because there are methodological and practical difficulties to estimate them in monetary terms. The list of forest plant non-wood product (FPNWP) groups potentially important for Latvia was made and the significance of them in Latvia’s national economy was estimated. To obtain the information about FPNWP in Latvia (kinds, amounts, value, own-consumption) the public opinion poll was carried out. 77% of the residents of Latvia aged 18 - 74 have gathered the nature products in Latvia in 2010. The most significant FPNWP are mushrooms, wild berries of family Ericaceae - Vaccinium myrtillus L., Vaccinium vitis-idaea L., Oxycoccus palustris Pers. and birch sap. The contribution of FPNWP in the Latvia’s national economy in 2010 was 66.8 million LVL, including 8.9 million LVL for the products sold in the market or exchanged among households.
اظهر المزيد [+] اقل [-]Analysis of farming system outputs and methods of their evaluation
2018
Novikova, A., Kaunas Univ. of Technology (Lithuania) | Startiene, G., Kaunas Univ. of Technology (Lithuania)
Farming outputs in agriculture depend on the nature of production, i.e. different farming systems generate different outputs. All these outputs are important for the society, and, therefore, require an integrated approach in view of the specific farming characteristics, where market and non-market outputs are taken into account. Therefore, the paper focuses on analysis of farming system outputs and methods of their evaluation. The objectives of this paper are to define the features of different farming systems and their outputs, then, to analyse the methods of evaluation of farming system outputs used in the studies. In order to achieve the research aim, analysis of economic scientific literature has been conducted; characteristics of farming systems and their outputs have been analysed; evaluation methods of the market and non-market farming system outputs, revealing their advantages and disadvantages, have been examined. Methods of systemic and logic analysis have been applied to analysis of the farming system outputs and their evaluation. The analysis has shown that intensive farming systems generate more market goods, while extensive farming systems – more public goods. Price-based methods are mostly used for the evaluation of market outputs of farming systems. Stated preferences methods are the most universal techniques used for the determination of the values from non-market farming system outputs. Hedonic pricing approaches are used for evaluation of specific agricultural public goods related to recreation or leisure and related to the particular groups of users.
اظهر المزيد [+] اقل [-]Local scicence lessons: Development of Pun Pee salt product for value added
2006
Somsri Jintanasonti, Pibulsongkram Rajabhat University, Phitsanulok (Thailand). Research and Development Institute | Amnart Tinamart, Pibulsongkram Rajabhat University, Phitsanulok (Thailand). Research and Development Institute | Narong Sutti, Pibulsongkram Rajabhat University, Phitsanulok (Thailand). Research and Development Institute | Nantorn Sinkrausuan, Pibulsongkram Rajabhat University, Phitsanulok (Thailand). Research and Development Institute | Sunton Puttandong, Pibulsongkram Rajabhat University, Phitsanulok (Thailand). Research and Development Institute | Uraiwan Wichankun, Pibulsongkram Rajabhat University, Phitsanulok (Thailand). Research and Development Institute