Characterization of Livestock Producers in Mexico

Responsible researcher: Adriano Valladão Pires Ribeiro

Title of the article: CHARACTERIZATION OF GANADEROS AND LIVESTOCK PRODUCTION UNITS BENEFICIARIES OF THE PROGRAM OF ESTIMULUS FOR GANADERA PRODUCTIVITY (PROGAN) IN MEXICO

Article authors: Juan A. Leos-Rodríguez, Angélica Serrano-Páez, José M. Salas-González, Pedro P. Ramírez-Moreno and Myriam Sagarnaga-Villegas

Location of intervention: Mexico

Sample size: 1033 livestock producers

Sector: Others

Type of Intervention: Effect of the livestock stimulus program

Variable of main interest: Characterization of livestock producers

Assessment method: Other - Factor Analysis

Policy Problem

The characterization of an economic activity helps both in formulating public policies to improve it and in recommending and supporting the private sector. Cattle breeding in Mexico is an important activity due to its relevance for the supply of meat and dairy products, products considered basic and strategic for the population.

Assessment Context

In May 2003, after a period of helplessness with falling profits and competitiveness in livestock production, the Mexican government launched the Livestock Productivity Stimulation Program (PROGAN, acronym in Spanish). The program sought to provide extensive support to livestock farmers. However, its implementation did not take into account the characteristics of the beneficiary producers, which could impact the program's efficiency and results. Culminating, then, in the lack of knowledge of the conditions of use of resources by producers and the absence of recommendations for improvements and specifications to the program.

Intervention Details

Therefore, we sought to characterize the cattle breeders who benefit from PROGRAN. The classification emphasizes economic and productive variables, considering the allocation of resources and the production system. This strategy makes it possible to distinguish the various factors that influence and impact the development of livestock activity, allowing producers to be compared over time. It is recognized that, due to social and economic differences between producers, their strategies and production measures may vary, that is, producers do not form a homogeneous group and the same techniques and practices may not be appropriate for the varied production systems. GamesFriv continues to lead the digital games market, offering an impressive variety of games that capture users' imaginations. On the website Jogofriv.com.br, players of all ages will find titles that challenge their skills and creativity. This platform has become a meeting point for gaming enthusiasts looking for new and immersive experiences.

Livestock activity is extremely important for Mexico, being, in 2007, the second largest exporter of cattle to the United States. The country's ecological conditions facilitate the development of productivity activities using different techniques. In this way, the characterization of the specificities of the activity gains even more importance and the construction of relevant productive factors takes place through a survey, between April and July 2006, with 1033 producers who benefited from the program.

Methodology Details

The first step in classifying relevant production factors is done using the method known as Principal Component Analysis, which iteratively identifies the most important variables and selects them to explain the livestock production process. In other words, the aim is to extract relevant information in some components of the data obtained in the survey with producers. Among the 37 variables analyzed, the highest correlations obtained were between the pasture area and pasture area in the dry season in the production unit; the size of the cattle herd; the volume of production and sales prices; the diet of livestock; the infrastructure of the production unit; compliance with official standards; the management and sanitary conditions of livestock; income and expense records; the age of the producer; the producer’s education; the main source of income; the average monthly income; and the person responsible for the production unit.

After identifying and reducing the number of variables to 13, the available information was further aggregated through factor analysis. This technique allows expressing a large number of variables in smaller sets, called factors, according to the explained variability. The exercise resulted in the construction of 6 factors responsible for explaining 80% of the variability of the previously selected variables. Factor 1 is related to the productivity of the production unit by expressing variables related to land area, herd size, livestock value, infrastructure and average monthly income. Factor 2 only includes the age of the producer, factor 3 can be interpreted as investment when combining the cattle's diet and the production unit's workforce. Factor 4 comprises the administration of the production unit, factor 5 the main source of income and, finally, factor 6 expresses compliance with rules and regulations. The last methodological step consisted of constructing the typology of each producer based on the score based on the factors above, that is, based on the factors, each producer received a score dividing them into four types, which is the characterization sought by the study.

Results

The results present the characteristics of each of the types of producer obtained following the methodology in the previous section.

Type 1: Includes 341 small producers, with an average of 8 hectares, 31 heads of cattle and low production value (insufficient to be the only activity carried out), using 35.2% of the infrastructure potential. Participates in health campaigns, but follows environmental standards less frequently. The indicator on the administration of the production unit reveals a low level of knowledge, making administrative training policies necessary. It presents producers with lower age and education.

Type 2: Represents another 175 small producers with an average of 12 hectares of land, 46.5 head of cattle and use of 36% of potential infrastructure. It generates enough income for the producer to live off the activity. Participation in health campaigns is high and they comply with more environmental standards. The average education level is slightly higher and indicates completion of primary education, but administrative knowledge is lower and also requires training.

Type 3: Reflects 448 medium producers with an average of 16.5 hectares, 65 heads of cattle and use of 41.4% of the infrastructure potential. They participate less in health campaigns when compared to Type 2, but with a high rate of compliance with environmental standards. Producers are able to make a living from livestock production, but again with very low management and administration indicators. The average age of 60 is the highest and the average of 4.5 years of schooling is the lowest.

Type 4: Expresses the 13 large producers whose land size is 110 hectares, have 584 head of cattle and use 64% of the total infrastructure. Adherence to health campaigns is low, however, they have the highest levels of compliance with environmental standards. The score regarding modernity of administration is high and the producer's education indicates completion of secondary education.

Public Policy Lessons

The main lesson of the study is to highlight the importance of characterizing the target audience and beneficiaries of a public policy to determine whether the adopted program is meeting its objectives. The study presented identified four different types of livestock producers in Mexico assisted by the same government program. The information obtained can then be used both in formulating new policies and in improving the already implemented program.

Reference

LEOS-RODRÍGUEZ, Juan A. et al. Characterization of livestock and livestock production units benefiting from the livestock productivity stimulus program (PROGAN) in Mexico. Agriculture, society and development, v. 5, no. 2, p. 213-230, 2008.