ANALYSIS OF CATTLE FARMING

The cattle farming in Peru has a population, according to the 2012 agricultural census, of 5,156,000 cattle. 78% of this population are in the mountains, 11% at the coast and 10% in the jungle (Table 1)

In the highlands, more than 70% of the cattle farming capital is found in peasant communities and small private properties in EXTENSIVE EXPLOITATIONS (table 1). In the sector where native cattle predominate and their crosses with different breeds highlight the crosses with Brown Swiss cattle. Native cattle are used for traction and are fed with stubble from agriculture (figure 1).

In the inter-Andean valleys where alfalfa and rye grass are cultivated with clovers, the animals are bred with high miscegenation of Holstein cattle in the low areas (up to 3200 meters above sea level) and Brown Swiss crossbreeds in the higher parts (3500 to 4800 meters above sea level).

In the inter-Andean valleys (2000 to 3500 meters above the sea level) there is a strong interaction between the family, agriculture and the raising of predominantly native livestock, which in addition to generating products for sale or self-consumption (milk), contributes with its income to agriculture and to cover any eventuality, as capital saving. It takes advantage of family labor (wives, elderly people and children (Fig. 1) and the exchange of crop residues in animal feed by traction and manure. Levels of milk production per cow are from 2 to 3 liters in lactations of 4 to 5 months, with a calf at the foot of the milk. It is used mainly for the cheese production.

In the mountains, SEMI-INTENSIVE EXPLOITATIONS are developed accordingly and the feed is improved, especially in the forage floor with cultivated pastures, the native livestock is being absorbed by the Brown Swiss as a dual-purpose animal: for the production of meat and milk (with production levels of 1500 to 2500 liters per campaign). The sale of milk is fluid milk and production of traditional cheeses in the most distant parts of the market.

SEMI-INTENSIVE exploitations of higher technology breed the Brown Swiss cattle of high genetic level adapted to heights between 2600 to 4200 meters above sea level. With a strong tendency towards the milk genotype. Milk production levels range from 2,500 to 4,500 liters, per cow / day in lactations of 250 to 300 days. Feeding based on cultivated pastures (Rye grass and clover) and supplementation with concentrate. The sale is like fluid milk and there are herds of Brown Swiss cattle of high genetic value, with lactations exceeding 6000 liters per season, they sell the males as breeding stock to improve the native cattle. Production costs scope from 0.25 to 0.35 cents

• ALTERNATIVES FOR THE PERUVIAN MOUNTAIN

In the mountain-range there are about 14 million hectares of natural pastures with great potential to improve through the cultivated pastures, either through irrigation through reservoirs, lagoon management and harvesting of rainwater. There is evidence of the great leap that means the establishment of improved pastures, from a receptivity of 0.30 AU / Ha / year of natural pastures to 3.00 AU / HA / year with cultivated pastures (Table 2)

The introduction of dormant alfalfa by CARITAS PERU has been another extraordinary alternative to improve the conditions of the cattle farming for the owners of the high Peruvian range, which do not have irrigation possibilities. It is estimated that, in the high mountains of Peru, a plot of 4 hectares of natural pastures feeds a cow that produces 3 liters of milk, during 150 days of lactation, 450 liters per year, at S / 1.00 per liter, it would be generated an income of S / 450.00 per year. A plot of 4 hectares of alfalfa w350 supports 16 cows (4 cows per ha) with 6 liters of milk per cow and a total of 96 liters / ha / day, for 220 days a year, a total production of 21,120 is obtained liters, at a value of S / .1.00 per liter would generate an annual income of S /.21,120.00.

According to CARITAS technicians, more than one million hectares can be installed in the Peruvian Range, which would contribute to developing this area and significantly reduce poverty. This experience shows that it is possible to develop dairy farming in high Andean areas from 2600 meters above sea level to 4,200 meters above sea level with the sowing of dry dormant alfalfa, previously reserved only for natural pastures of low protein quality and overexploited by other breeds, generating a dynamic productive economy in poor and excluded communities, improving employment conditions and daily family income by selling of milk and cheese (CARITAS 2012)

In Peru, the Amazon represents 60% of the territory, which has been intervened by 16 to 20% for agricultural purposes. It is known that the virgin forest recycles large amounts of nutrients per year, maintaining a high soil fertility. That recycling is broken when the forest is burned, crops are established and then pastures. Over the years the soil fertility decreases and this decrease is greater when the pastures are poorly managed or pastures are established without taking into account the type of soil, resulting in about 80% of the pastures being degraded or degradation process.

Receptivity range from 0.5 to 1.5 AU / Ha / year in low jungle and from 0.5 to 2.00 AU / Ha / year in high jungle. The average land tenure for cattle purposes is 60 hectares, for dual purpose cattle with zebu crosses with Holstein or Brown Swiss, at levels of 25 to 50% of blood Zebu (GIR, Brahman) and 25 to 50% of Holstein blood, in high forest, and Brown Swiss, in low jungle. The farms with more than 200 hectares and far from the population centers are dedicated to the production of meat and zebu cattle have a higher degree of blood Nelore and Brahman.

In extensive farms and poorly managed pastures milk production levels per cow range from 3.00 to 4.00 liters per day with calf at the foot and a single milking. In semi-intensive farms, production levels range from 8 to 14 liters per cow per day in two milking and with restricted breastfeeding. Ríos (2010) evaluated 20 F1 Gir cows by Holstein in the USA. El Porvenir-Tarapoto the production levels found were 3670.6, 4203.8, 4689.4 with lactation durations of 315, 334 and 335 days for the first, second and third lactation, respectively (two milking’s and restricted breastfeeding after milking). Rosemberg (1984) in the same Experimental Station found that the milk production levels in liters per lactation in two milking and for life were: 2316 and 6230, for the Holsteins, 2637 and 8.432 for the Brown Swiss, 2419 and 11230 for the ½ Gir ½ Brown Swiss, 2811 and 11461 for ¼ Gir 3/4 Brown Swiss, 3088 and 8345 for 1/8 Gir 7/8 Brown Swiss, and 2997 and 6934 for 1/16 Gir and 15/16 Brown Swiss respectfully, being that the most productive genotypes were those between ½ to ¾ of Brown Swiss blood.

• ALTERNATIVES FOR THE JUNGLE o forest

Given the situation of cattle farming in the jungle, the focus should be on dual-purpose livestock with genotypes of European blood not greater than 3/4 blood, either Holstein or Brown Swiss respectively. Recovery of areas intervened with silvopasture systems and agroforestry. In this regard, farmers could double and even triple the responsiveness of their pastures from 1.00 AU to 3.0 AU / HA / year, using suitable pastures and good management, allocating more than 50% of the extension of their farms to agroforestry, converting livestock owners from deforest-men in reforest-men with the economic and ecological benefits that that would entail.

CATTLE FARMING ON THE COAST

Cattle farming on the coast is characterized by having an intensive production system, with Holstein cattle of high genetic level. The feeding is based on chopped forage (“chala� corn) and harvest residues, such as ground “panca�, asparagus and with supplementation with concentrated, according to the production of each cow. Artificial insemination is used. The production levels reached per cow / day in two milking range from 20 to 25 liters / cow / day.

According to the report of the Official Milk Productivity Service of 2014 (UNALM), in the best dairy farms in Lima, the production levels were from 27 to 35 liters average per cow / day and between 8.000 and 10.500 liters per campaign. The largest stables have between 700 and 1500 milking cows, with daily production of between 19TM to 41TM per day. The workforce is qualified and requires high capital investment, with high production costs ranging from S / 1.00 to S / 1.35 soles.

• ALTERNATIVES FOR THE COAST

  The development of export agriculture in the deserts of the coast, with high technological level and technician irrigation generates a virtuous circle (Fig.1) where milk farming generates organic matter and agriculture harvest residues, such as asparagus and artichoke. Areas where large-scale stables with a high technological level are being developed.

MILK PRODUCTION – PRODUCTION CHAIN

The production of milk in Peru has its origin in the different production systems:

• Entrepreneurs livestock-owners: located mostly on the coast, its breeding system is intensive, stabled, apply modern technologies, producers have a good level of education and have access to some kind of credit and information, belong to some producer organization. They are characterized by the sale of higher production volumes. They produce around 19 of the total milk production in the country
• Medium and small producers: they represent a high percentage of the rural population, their technological level is low, they lack an information system and they do not have access to formal credit, their production is mainly oriented to the regional market and collection centers of the industry. They generate 75% of the country’s milk production.
• Subsistence producers: Conformed by peasant families distributed in the different altitudinal levels, of great cultural value, but of limited education, with small properties and cattle heads, the cattle farming activity is complementary to agriculture forming Integral production systems, oriented mainly to self-consumption and artisan production of dairy products, produce 15% of the country’s milk production.

In relation to the population of dairy cows and their production at the national level, for 2014 MINAGRI reports 877,097 milking cows, with an average production of 2058 liters per cow per lactation and an annual production of 1842,740 MT. In the last 5 years there has been a low increase in milk production, despite the greater consumption of the population (Table 3). The legal devices that allow the recombination of milk using milk powder and other imported by-products such as whey, in combination with high local production costs and the lack of policies to support cattle farming have determined decreases in the rate of growth of production annual starting in 2007 (Table 3)

In general terms, 99.76% of the production is directed to the domestic market. In recent years, domestic demand is gradually growing, which still leads to importing milk to supply the domestic market, especially at a time of low international prices (AGALEP 2015)

It is estimated that currently 40% of the national supply is covered with imported dairy, in recent years the increase in imports of dairy products has gone from 37,000 MT in 2013 to 45,000 MT in 2014 due to a decrease in the prices of dairy products. the milk of around 30%. The average price weighted by TM Jan-Feb.2014 was $ 4,524 / MT, and in the same period for the current year it is $ 3,188 / MT, registering a 30% drop. (AGALEP Feb 2015).

In relation to the productive chain, as can be seen (Fig.2), producers according to their level of production are integrated into different production chains made up of the set of interrelated economic agents that add value to the product flow from primary production to the consumer. Among these are the dairy producer, the “porongueros�, collection centers, processing industry (artisanal and large industry), trading companies and the consumer of fresh milk and dairy products are handmade and come from different regions of the country.

DAIRY INDUSTRY

Regarding the total milk to plant intake (fig.3), a growth of 19.24% was observed since 2008; incoming fresh domestic milk has increased by 6.19% during the period with an average annual rate of 1.3%; Imported milk powder has increased by 58% compared to 2013-2008, with an average annual increase rate of 17%.

The product of greater distribution at a national level is evaporated milk, its growth rate is lower compared to other products if we compare the year 2010 and 2014, the highest growth rate is in the cream of milk, according to the gastronomic orientation of our kitchen, then butter, cheese and yogurt.

PER CAPITA CONSUMPTION OF DAIRY PRODUCTS

In Peru per capita consumption is approximately 61 kg of milk per inhabitant per year, far from the 120 recommended by FAO and below the MERCOSUR average (Table 7).

The dairy product with the highest per capita consumption is evaporated milk with 10 liters per year. By geographical area, consumption is differential; Thus, by area of residence, the average consumption per capita is higher in the urban area with 12 liters, five times higher than the rural area, which has a per capita consumption of 2 liters per year. By natural region, the Costa has the highest average consumption per capita with 8 liters more than in the Sierra where the consumption of this dairy product is less with 5 liters.

FRESH MILK PRODUCTION COSTS

There is a big difference between the unit costs of production of the cattle farming companies, because they are very heterogeneous in relation to herd size, yield and product quality, availability and prices of water, quality and availability of forage, types of management, which added to the varied and difficult geography (particularly related to transport costs), generate production costs ranging from S /. 0.6 to S / .1.2 per liter. The structure of production costs varies mainly according to the feeding systems, so we have in the milk basin of Arequipa the main item is the production of forage (60%), while in Lima, the purchase of food Balanced is the main cost of production (57%).

Dr. Manuel Rosemberg Barrón
Dean of the Faculty of Veterinary and Biological Sciences
Scientific University of the South (UCSUR, Peru)

* Images and graphics provided by Dr. Manuel Rosemberg Barrón

(Dr. Manuel Efrain Rosemberg is a zootechnical engineer of the National Agrarian University La Molina. Master Scientiae in Animal Production of the National Agrarian University La Molina. Doctor Scientiae in Zootechnics from the Federal University of Viçosa (UFV) of the state of Minas Gerais in Brazil. He is currently Academic Vice Chancellor and Dean in the Faculty of Veterinary and Biological Sciences at the Southern Scientific University (UCSUR) in Lima, Peru.)

BIBLIOGRAPHY

• ASSOCIATION OF DAIRY FARMERS OF PERU (AGALEP, by its initials in Spanish) 2015. Status of milk production in Peru.
• CÃ�RITAS DEL PERÚ 2012. Proposal for small dairy producers in the high mountains of Peru.
• CUNLIFFE SEOANE D. 2015. Bovine course. Scientific University of the South Lima – Peru.
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• HOLBET FRANZ, HUGO TAYPE.2013. Proleche Andino. Proposal for Small Producers of High Sierra. Cachi Alto dairy project -Ayacucho Peru.
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• ROSEMBERG BARRÓN M.E.1984.Holstein cattle production, Brown Swiss and Brown Swiss crosses with native cattle in Tarapoto. (1967-1982) MSC thesis. National Agrarian University la Molina. Lima Peru.
• ROSEMBERG BARRÓN M.E. 2000. Production of Beef Cattle and Double Purpose Cattle. National Agrarian University La Molina-Faculty of Zootechnics. CONCYTEC.
• MILK PRODUCTIVITY SERVICE 2014. Animal Improvement Program. National Agrarian University la Molina. Lima Peru
• ZAVALA POPE M. 2010. Analysis of the Peruvian Dairy Sector. Department of agriculture. Directorate of Agrarian Promotion – Peru.