Valuing animal genetic resources: a choice modeling application to indigenous cattle in Kenya

In an effort to improve productivity and profits, many farmers have replaced traditional livestock breeds with higher yielding alternatives. While such changes may bring about short‐term economic gains, the loss of traditional livestock breeds could result in the loss of an important genetic resource as a variety of important genetic traits adapted to local conditions gradually become less common in the population. This is a particular problem in Africa, where livestock make a substantial contribution to human livelihoods. Using the example of cattle in Kenya's pastoral livestock markets this study uses a choice experiment approach to investigate buyers' preferences for indigenous breeds such as the Maasai Zebu. The analysis employs a latent class approach to characterize heterogeneity in valuations both within and across respondents buying cattle for breeding, slaughter, or resale. The results show that there are at least three classes of buyers with distinct preferences for cattle traits and that most buyers favor exotic rather than indigenous breeds. Such preferences have implications for the conservation of indigenous cattle in Kenya and in other developing countries and suggest that some form of intervention may be required to ensure the preservation of this important animal genetic resource.     

Integrating Technology Traits and Producer Heterogeneity: A Mixed-Multinomial Model of Genetically Modified Corn Adoption

This article proposes a model of technology adoption that integrates demand for individual traits of new technologies with the potential for heterogeneity based on farm and farmer characteristics. The model is applied to recent genetically modified corn adoption data from Minnesota and Wisconsin farmers, using a mixed-multinomial logit (MMNL) model to estimate the effects of traits and farm and farmer characteristics on adoption outcomes. This approach allows explicit recovery of estimates of farmers' shadow prices for individual technology traits. Results show the importance of producer and regional heterogeneity in preferences for seed traits.     

Heterogeneous Consumer Preferences for Nanotechnology and Genetic‐modification Technology in Food Products

This study investigates heterogeneous consumer preferences for nanofood and genetically‐modified (GM) food and the associated benefits using the results of choice experiments with 1,117 US consumers. We employ a latent class logit model to capture the heterogeneity in consumer preferences by identifying consumer segments. Our results show that nano‐food evokes fewer negative reactions compared with GM food. We identify four consumer groups: ‘Price Oriented/Technology Adopters’, ‘Technology Averse’, ‘Benefit Oriented’, and ‘New Technology Rejecters’. Each consumer group has a distinctive demographic background, which generates deeper insights into the diversified public acceptance of nano‐food and GM food. Our results have policy implications for the adoption of new food technologies.     

Understanding Filipino Rice Farmer Preference Heterogeneity for Varietal Trait Improvements: A Latent Class Analysis

Using an experimental methodology based on investment games, we examine whether smallholder rice farmers from Nueva Ecija, Philippines have heterogeneous preferences for improvements in 10 rice varietal traits. We use a latent class cluster approach to identify different segments of rice producing households and their distinct preferences for trait improvements. These clusters were characterised post hoc using household, farm, and marketing characteristics. On average, farmers invested the most in rice varietal trait improvements that offered opportunities to reduce losses caused by lodging, insects and diseases. We found four classes of farmers with distinct preferences for improvements in variety traits. The clusters were significantly different in terms of household and farm characteristics. These findings can guide breeding research in the development of varieties that have the traits farmers identified for improvement, and that will address the unique needs of distinct farmer segments.     

DETERMINANTS OF CHANGE IN THE NORTH AMERICAN FEEDER-CATTLE ECONOMY

Changing flow patterns characterize the North American cattle industry, which are having a significant impact on all aspects of Canadian agriculture. A brief review of important changes taking place in the feeder cattle industry is given together with an analysis of forces influencing the changing interregional economic relationships.
The results suggest an increasing rate of adjustment may be needed in the future as the economic variables and technological advances responsible for much of the change in the past continue to influence the Canadian cattle industry. The impact of change will not occur evenly across all areas and segments of the industry with the interregional trends that have developed particularly the expansion in flows from Western Canada to the Western United States showing no sign of slowing down. Eastern Canada may be under increasing pressure to expand either its imports of feeder cattle and dressed beef or develop its own feeder supply.     

Price predictors in an extended hedonic regression framework: An application to wholesale cattle markets in Ethiopia

Livestock markets influence income generation for producers, but also accessibility and affordability of highly nutritious animal-sourced foods for consumers. Despite their importance, the functioning of livestock markets in lower-income countries is poorly understood and rarely studied compared to more developed countries. This study analyzes wholesale cattle markets in Ethiopia using a uniquely rich large-scale dataset covering both prices and cattle characteristics in 39 markets (in both highland and lowland areas) over a 10-year period, and hedonic regression models structured to understand both cattle price formation and seasonal and secular price dynamics. We show that cattle prices are influenced by a wide range of factors, including proxies for meat quality, religious fasting practices, climate-based seasonality but also climate shocks and availability of grazing land, competition from animal traction services, and rising consumer incomes. However, the implied effects of these factors are often significantly different in highland mixed crop-livestock areas compared to agro-pastoralist lowland areas, emphasizing the dualistic nature of cattle markets in Ethiopia. The analyses help inform the systemic challenges that Ethiopia will need to overcome to meet rising demand for beef products in the face of sustained income and population growth, as well as the adverse effects of climate change.     

Characterisation of extensive beef cattle systems: Disparities between opinions,practice and policy

Increasing pressure on extensive farming systems in marginal areas requires them to become more resilient and adaptable to extreme conditions brought about by climate change. Yet these rangeland areas must also be protected as refuges for biodiversity and as important carbon stores. Recent United Kingdom policy initiatives are encouraging the use of traditional or native breeds of livestock to preserve genetic diversity, due to their perceived adaption to harsh environments and their value for managing extensive habitats for conservation. It is not clear however, whether these benefits are based on scientific evidence or perhaps more on current opinion; nor whether farm system practices are likely to change in response to these initiatives. This study offers an approach that can support future empirical studies designed to better inform such policy decisions.A survey was carried out to provide insight into current opinions regarding the impacts of cattle on hill environments and the cattle breeds appropriate for hill environments, before more detailed farm interviews provided data for a characterisation of suckler beef farming systems in Scotland using a typological approach. Survey results indicated that the majority of respondents believed cattle have a positive effect on hill environments when carefully managed, yet there was wide diversity in opinion regarding the type of impacts and most suitable breeds. Interview results highlighted the diversity of management systems, decision making processes and cattle types present and indicated significant variation in farmers’ views regarding breed hardiness, suitability and reasons for their choice of breed. Three system groups: Traditionalists, Improvers and Production optimisers, were clearly defined by the typology, with significant variation observed in their management practices and views. This study suggests that hill beef farmers appear to not only adapt their production systems according to their current bio-physical and financial circumstances, but also from personal experience. Accumulation of this kind of evidence is long overdue and could provide support to the development of any future policies regarding cattle and hill environments.     

The Brazilian Cattle Sector: Status, Prospects and Controversies

The cattle sector in Brazil (and in other countries of South America) is substantial in terms of size and potential impacts in world markets. Due to the sheer magnitude and potential of the Brazilian cattle sector, it merits our attention. A trend to more productive cattle systems, new rules for trade in livestock products and more effective control of hoof and mouth disease in some areas of Brazil could cause it to become a more formidable beef exporter. Brazil also warrants attention because of the controversial practice of deforestation for cattle production in the Amazon rain forest. A vocal environmental lobby has decried cattle production in the Amazon, but this practice continues. This paper reviews the status, prospects and controversies of the beef sector in Brazil, with a special focus on deforestation and cattleproduction in tropical ecosystems.     

Estimated Value of Increased Pricing Accuracy for Fed Cattle

To improve vertical market coordination beef packers have introduced fed cattle grid pricing systems that offer premiums or discounts for varying carcass quality and yield grades. This study calculates the value of cattle quality information for producers considering live, dressed, and grid pricing alternatives. The value of fed cattle quality and yield grade information is at least $15/head. When fed cattle are sold on a live weight basis, high-quality cattle subsidize low-quality cattle by an average of $30/head. Price signals that could improve beef market coordination are ignored when fed cattle are marketed using traditional live or dressed weight methods.     

A System Comparison Approach to Distinguish Two Nonseparable and Nonnested Agricultural Household Models

This study distinguishes two nonseparable agricultural household models for a self-employed farm household. One assumes heterogeneity of farm and nonfarm labor and a competitive market for nonfarm labor. The other assumes homogeneity of the two types of labor and a restricted market for nonfarm labor. We compare demand systems that are derived from them, which have different dependent variables and different numbers of equations. We apply a Cox-type test to compare these complicated nonnested systems. Results show clearly that the former is better for Japanese rice-farming households. Comparison of price elasticities for those models verifies the importance of that test.     

Cattle Farmers’ Preferences for Disease‐Free Zones in Kenya: An application of the Choice Experiment Method

Management of livestock diseases is important in ensuring food safety to consumers in both domestic and export markets. Various measures are prescribed under the Sanitary and Phytosanitary Standards (SPS) agreement of the World Trade Organization. In order to prevent the spread of trans‐boundary cattle diseases, the SPS agreement recommends the establishment of Disease‐Free Zones (DFZs). These have been implemented successfully in some major beef‐exporting countries, but in Kenya are still at a pilot stage. To understand Kenyan farmers’ preferences on the type of DFZ that would be readily acceptable to them, a choice experiment was conducted using a D‐optimal design. Results show that farmers would be willing to pay to participate in a DFZ where: adequate training is provided on pasture development, record keeping and disease monitoring; market information is provided and sales contract opportunities are guaranteed; cattle are properly labelled for ease of identification; and some monetary compensation is provided in the event that cattle die due to severe disease outbreaks. Preferences for the DFZ attributes are shown to be heterogeneous across three cattle production systems. We also derive farmers’ preferences for various DFZ policy scenarios. The findings have important implications for policy on the design of DFZ programmes in Kenya and other countries that face similar cattle disease challenges.     

Classical Swine Fever Changes the Way Farmers Value Pigs in South Africa

Although there is growing demand for animal products in Africa, production is stagnating. Appropriate management of livestock diversity could help reinvigorate production, contribute to food security and improve farmers’ livelihoods, particularly in subsistence‐oriented systems. We assess differences in farmers’ preferences and economic values for pig traits across different production systems and across areas that have been affected and unaffected by classical swine fever (CSF). Not surprisingly, market‐oriented farmers derived higher values from the productive traits such as heavy slaughter weight and large litter size found in exotic pig genotypes. Subsistence‐oriented farmers, particularly in swine fever affected areas, placed high value on tolerance to disease. We found that CSF changed farmers’ preferences for adaptive traits, and less so for productive traits. Therefore, indigenous breeds become more valuable for subsistence farmers and crossbreeds for market‐oriented farmers if CSF is a risk. Our results can have implications for breeding and conservation strategies and for compensation strategies after culling, and will become increasingly relevant if, as predicted, heat waves and disease outbreaks become more frequent in pig production systems in South Africa with climate change.     

黄淮海平原农业结构的系统分析及其优化展望

黄淮海平原为我国重要的农产品生产基地和最大的农产品消费市场。该平原为我国小麦、玉米、棉花、油料以及肉牛、肉羊优势产区。文中应用主成分分析、区位熵、灰色关联分析等方法剖析了该平原经济综合实力在全国的地位与农业结构的特点,指出了农业结构优化的方向,提出了大力发展强筋小麦、专用玉米、优质棉花等对策。     

Major constraints for cattle productivity and managerial efficiency in communal areas of Omaheke Region,Namibia

The aim of this study is to analyse the major constraints for production and managerial practices among the four communal areas in the Omaheke Region. This study applied rapid rural appraisal techniques, including a questionnaire. Semi-structured interviews were conducted with 570 farmers who were registered as cattle producers with the Meat Board of Namibia at their villages. The data collection process was conducted in two months (October 2009 and November 2009). Questionnaires were administered by a group of trained enumerators in the vernacular OtjiHerero language under the supervision of the researcher through door-to-door interviews. Data were gathered on the production system and managerial practices. The research found that the main constraints were incorrect bull-to-cow ratio (1:38), low calving percentage, and high cattle mortalities and losses caused by drought, diseases, straying and theft. The research further found that farmers were applying poor weaning practices and record keeping. Shortcomings on these managerial practices can be addressed if farmers visit the extension and veterinary offices for advice and training. A proper policy guide is required with respect to grazing resource management. Farmers need access to micro-financing for cattle production systems to become economically viable.     

Abstracts of Second- and Third-Place Undergraduate Papers

Bulls account for half of the genetic input when making improvements in cattle herds. Changing bulls is less costly than changing cows; therefore it is often the case bulls account for more rapid improvements in heritable traits. One of the problems that breeders who supply bulls face is that the attributes of bulls come bundled together so that it is difficult to determine what the value of improvements in a bull might be worth. This research estimates what values beef producers implicitly place on particular characteristics when deciding which bull will best fit the needs of their farm. A hedonic pricing model was estimated using ordinary least squares on actual transaction data and reveals the value buyers of bulls implicitly place on specific traits. For example, a ribeye area of 12.8 in² at the mean sale price reveals a buyer would be willing to pay an additional $80.39 for a bull with an additional square inch. Likewise, a bull with a 1242 lb. 365-day weight at the mean sale price reveals a buyer would be willing to pay an additional $1.83 for an additional pound. Therefore, this research reveals an incentive for producers of bulls to focus on improving the genetic make-up of their bulls they offer for sale.     

Impacts of Declining U.S. Retail Beef Demand on Farm-Level Beef Prices and Production

A systems model was estimated to determine the effects of declining U.S. retail beef demand on farm-level beef prices and production. Retail beef demand declined by nearly 66% from 1976 to 1999. Results indicate autonomous shifts in retail demand significantly impacted farm-level demands and production. Based on equilibrium multipliers, the 1976–99 reduction in beef demand decreased real slaughter cattle prices and production by 32.1% and 11.2%, respectively. Real feeder cattle prices and production decreased by 8.0% and 22.6%, respectively. Combining the decreases in farm prices and production, slaughter and feeder cattle producers experienced a real revenue reduction of $13.3 billion (61%) due to the long-term decline in demand.     

Utilizing conjoint analysis to design modern crop varieties: empirical example for groundnut in Niger

Preferences for monetary and non-monetary plant traits influence modern crop variety adoption decisions of farmers. To enhance adoption probability of modem crop varieties, it is necessary to identify and locus research on traits that significantly contribute to utility while de-emphasizing insignificant plant attributes. This paper illustrates the potential for applying conjoint analysis to aid the design and targeting of client-responsive modern crop varieties, farmers ranked eight orthogonally-derived plant trail combinations used in an illustrative example. Utilities were estimated using the choice-probability-based method of ordered probit. Results showed that conjoint analysis can differentiate significant and non-significant trails of modern crop varieties. The usefulness of applying conjoint analysis over identifiable disaggregated groups of a sample was also evident. Future application of conjoint analysis to the design and targeting of modern crop varieties should carefully consider sample composition and size to permit the estimation of relevant sub-models for desired farmer segments.     

Constraints to the sustainability of a ‘systematised’ approach to livestock marketing amongst smallholder cattle producers in South Africa

Commercialization of smallholder agriculture in South Africa is underpinned by reforms to improve livestock off-take in communal areas and engage smallholder farmers with formal markets. To achieve this, Custom Feeding Programmes (CFPs) were established to improve the condition of communal cattle prior to their sale into formal markets and to ‘systematise’ the informal marketing of cattle in communal areas by enabling participants to achieve higher informal market prices. We evaluate the sustainability of eight CFPs located in Eastern Cape Province in terms of their ability to add value to smallholder cattle production and encourage market participation. Communities with CFPs achieved a 16.6% mean cattle off-take rate, substantially higher than in most communal systems. Furthermore, cattle sold through CFPs attained a 17% higher mean selling price than those sold through other marketing channels. However, these benefits were mainly realized by better-off farmers with larger cattle herds and greater ability to transport animals to and from CFPs. More marginalized farmers, particularly women, had low participation. CFPs also face challenges to their sustainability, including inconsistent feed and water supplies, poor infrastructure and high staff turnover. Key to enhancing participation in CFPs, will be improving the way they are supported and embedded within communities.     

Soil Carbon Sequestration Strategies with Alternative Tillage and Nitrogen Sources under Risk

This study examines the economic potential of using either no-tillage or conventional tillage with either commercial nitrogen or cattle manure to sequester soil in continuous corn production. This research uses stochastic efficiency with respect to a function to determine the preferred production systems under various risk preferences and utility-weighted certainty equivalent risk premiums to determine the carbon credit values needed to motivate adoption of systems, which sequester higher levels of carbon. The results indicate that no-tillage and cattle manure increase carbon sequestration. Carbon credits or government program incentives are not required to entice risk-averse managers to use no-tillage, but are required to encourage manure use as a means of sequestering additional carbon even at historically high nitrogen prices. New environmental rules for confined animal feeding operations may increase the demand for land to apply manure as a primary nutrient source and participation in the Environmental Quality Incentives Program, Conservation Security Program, and a carbon credit market to obtain payments to offset some or all of the costs of manure application.