• TABLE OF CONTENTS
HIDE
 Title Page
 Acknowledgement
 Table of Contents
 List of Tables
 List of Figures
 Appendix I Tables
 Appendix II Tables
 Background and objectives
 The study area
 Crops and livestock
 The model
 Crop and livestock systems
 Production potential of the intermediate...
 Summary, conclusions, and...
 Reference
 Appendix I. General input and output...
 Appendix II. Crop and livestock...














Group Title: Econ. report
Title: A preliminary study of the economic potential for beef cattle, grain, and legume-seed production in the intermediate savannahs of Guyana using a linear programming model
CITATION THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00027402/00001
 Material Information
Title: A preliminary study of the economic potential for beef cattle, grain, and legume-seed production in the intermediate savannahs of Guyana using a linear programming model
Series Title: Econ. report
Alternate Title: Preliminary study of the economic potential for beef cattle ..
Physical Description: vii, 96 leaves : ill. ; 28 cm.
Language: English
Creator: Hooker, Paul J
Publisher: University of Florida Agricultural Experiment Station
Food and Resource Economics Dept., Center for Tropical Agriculture, Institute of Food and Agricultural Sciences, University of Florida
Place of Publication: Gainesville
Publication Date: 1973
 Subjects
Subject: Agriculture -- Economic aspects -- Guyana   ( lcsh )
Field crops -- Guyana   ( lcsh )
Beef cattle -- Guyana   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
bibliography   ( marcgt )
non-fiction   ( marcgt )
 Notes
Bibliography: Bibliography: leaves 42-43.
Statement of Responsibility: Paul J. Hooker.
General Note: Cover title.
General Note: Chiefly tables.
 Record Information
Bibliographic ID: UF00027402
Volume ID: VID00001
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: ltuf - ABS9001
oclc - 02072326
alephbibnum - 000302483
lccn - 74621424

Table of Contents
    Title Page
        Title Page 1
        Title Page 2
    Acknowledgement
        Page i
    Table of Contents
        Page ii
    List of Tables
        Page iii
        Page iv
    List of Figures
        Page v
    Appendix I Tables
        Page vi
    Appendix II Tables
        Page vii
    Background and objectives
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
    The study area
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
    Crops and livestock
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
    The model
        Page 17
        Page 18
    Crop and livestock systems
        Page 19
        Page 20
        Page 21
        Page 22
    Production potential of the intermediate savannahs of Guyana
        Page 23
        Page 24
        Page 25
        Page 26
        Page 27
        Page 28
        Page 29
        Page 30
        Page 31
        Page 32
        Page 33
        Page 34
        Page 35
        Page 36
        Page 37
    Summary, conclusions, and recommendations
        Page 38
        Page 39
        Page 40
        Page 41
    Reference
        Page 42
        Page 43
    Appendix I. General input and output data for enterprise budgets
        Page 44
        Page 45
        Page 46
        Page 47
        Page 48
        Page 49
        Page 50
        Page 51
        Page 52
        Page 53
        Page 54
        Page 55
        Page 56
        Page 57
    Appendix II. Crop and livestock enterprise budgets
        Page 58
        Page 59
        Page 60
        Page 61
        Page 62
        Page 63
        Page 64
        Page 65
        Page 66
        Page 67
        Page 68
        Page 69
        Page 70
        Page 71
        Page 72
        Page 73
        Page 74
        Page 75
        Page 76
        Page 77
        Page 78
        Page 79
        Page 80
        Page 81
        Page 82
        Page 83
        Page 84
        Page 85
        Page 86
        Page 87
        Page 88
        Page 89
        Page 90
        Page 91
        Page 92
        Page 93
        Page 94
        Page 95
        Page 96
Full Text
, July 1973 Econ. Report 51


A Preliminary Study of the
Economic Potential for Beef Cattle,
Grain and Legume-Seed Production
in the Intermediate Savannahs
of Guyana Using A Linear
Programming Model






SUME LIBRARY
i xOV 3 j193

S.. i- J. ;v. o ",hf F !oida |

Food and Resource Economics Department
Center for Tropical Agriculture \
Institute of Food and Agricultural Sciences
University of Florida, Gainesville 32611


Paul J. Hooker











ACKNOWLEDGEMENTS


The personnel of the Ministry of Agriculture of the Government of
Guyana, especially Mr. Ben Carter, provided technical assistance in
generating the information necessary for this study and made the
author's stay in Guyana a most instructive one. The facilities of the
USAID Mission in Guyana and Mission personnel served to facilitate the
course of this study.
Countless other individuals in Guyana and at the University of
Florida contributed to and made this study possible. Four in particular
require specific recognition. Mr. John Smith, director of Sandbach-
Parker Ltd., Guyana, freely gave of his time and considerable knowledge
of tropical agricultural and equipment requirements. Mr. Joe Ritson,
director of Guyana's Livestock Development Project, provided valuable
insight into tropical livestock production. Dr. J. E. Ross of the
Center for Tropical Agriculture, University of Florida, handled the
administrative details that made my stay in Guyana more comfortable.
Dr. B. R. Eddleman of the Food and Resource Economics Department at the
University of Florida acted as technical back-up man for the project
and "Stateside Administrator of Personal Affairs" for the author.
Without his considerable expertise, this study would have suffered
greatly.


















i






TABLE OF CONTENTS


ACKNOWLEDGEMENTS . . . . . . . . .

TABLE OF CONTENTS . . . . . . .

LIST OF TABLES . . . . . . . . .

LIST OF FIGURES . . . . . . . . .

APPENDIX I TABLES. . . . . . . . .

APPENDIX II TABLES . . . . . . . .

BACKGROUND AND OBJECTIVES . . . .

THE STUDY AREA . . . . ...

CROPS AND LIVESTOCK. . . . . . . .

THE MODEL . . . . . . . . .

CROP AND LIVESTOCK SYSTEMS . . . . . .

Crops . . . . . . . . .

Livestock. . . . . . . . . . .

PRODUCTION POTENTIAL OF THE INTERMEDIATE SAVANNAHS

Crops . . . . . . . . .

Livestock. . . . . . . . .......

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS . . .

REFERENCES . . . . . . . . . .

APPENDIX I . . . . . . . . .


APPENDIX II. . . . . . . . .


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GUYANA

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ii

iii



vi

vii

1

6

11

17

19

20

22

23

26

27

38

42

44


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LIST OF TABLES


TABLE Page

1 Production by commodity, value and indices of total
agricultural and food production, Guyana, average 1961-65,
annual 1962-71 . . . . . . . . . . 2
2 Variable costs and returns per acre and capital require-
ments for selected row-crops in the Intermediate Savannahs,
Guyana . . . . . . . . . . . 12
3 Annual costs, returns, capital requirements and calf
production for 600-cow unit cow-calf operations on improved
pasture, native range and a combination of the two in the
Intermediate Savannahs, Guyana . . . . . . . . 15
4 Annual net incomes, total capital and annual capital
requirements for alternative cow-calf-fattening operations
based on a 600-cow cow-calf herd in the Intermediate
Savannahs, Guyana. . . . . . . . ... ..... 16
5 A crop production unit that minimizes annual capital
requirements while realizing a given income level for the
Intermediate Savannahs, Guyana . . . . . . . .. 21
6 Farmgate prices for crops and livestock used to generate
the initial production systems for the Intermediate
Savannahs, Guyana. . . . . . ... . .. . . 21
7 A livestock unit that minimizes annual capital require-
ments while realizing a given income level for the
Intermediate Savannahs, Guyana . . . . . .. ... 23
8 Annual production potential of the Intermediate Savannahs
for two. types of production unit . . .. . . . . 25
9 Domestic production needed to offset 1970 imports of
selected commodities, taking into account feasible
substitutions. . . ....... . . . . 25
10 Alternative production units available with the price of
corn increased to G$0.076 per pound. ..... ... . . . .26
11 Alternative production units available with the price of
soybeans increased to G$0.133 per pound. . . . . . 27
12 Prices per pound for slaughter cattle yielding zero net
income ("break-even" prices) under three different assump-
tions concerning interest, management and overhead charges
for alternative cow-calf-fattening operations based on a
600-cow cow-calf herd. . . . . . . . ... .. 29







LIST OF TABLES--Continued


TABLE Page

13 Annual net incomes, total capital and annual capital
requirements for alternative cow-calf-fattening operations
based on a 600-cow cow-calf herd with no fencing on native
range pastures and creeks used for watering cattle on
native range . . . . . . . .. 31
14 Annual net incomes, total capital and annual capital
requirements for alternative cow-calf-fattening operations
based on a 600-cow cow-calf herd with pasture establishment
costs (initial investment) of G$105 per acre and annual
maintenance costs of G$35 per acre . . . . . .32
15 Annual net incomes, total capital and annual capital
requirements for alternative cow-calf-fattening operations
based on a 600-cow cow-calf herd with pasture establishment
costs of G$105 per acre, pasture maintenance costs of G$35
per acre, no fencing on native range pastures and creeks
use for watering cattle on native range . . . . 34
16 Annual net income (no charge for interest, management or
overhead) as a percentage return to annual capital under
four different assumptions as to fencing and improved
pasture costs as represented in Tables 4, 13, 14 and 15. . 35
17 Annual outputs of production units involving different
enterprise combinations in the Intermediate Savannahs,
Guyana . . . . . . . . . . . .. 36
18 Production potential of the Intermediate Savannahs under a
development scheme involving 39 crop units (7 involving
corn, 2 involving peanuts, 30 involving soybeans)and 5
involving beef production on native range. . . .. 37











LIST OF FIGURES


FIGURE Page

1 Map of Guyana depicting the study area (Ebini-Ituni-
Kwakwani triangle) ...................... 7
2 Average inches of rainfall per five-day period through-
out the year for 17 years (1949-50, 1952-66) at Ida
Sabina in the Intermediate Savannahs, Guyana . . . . 9











APPENDIX I TABLES


TABLE Page

I.1 Product and input prices used in preparing crop and
livestock enterprise budgets for the Intermediate
Savannahs, Guyana . . . . . . . . . . . 45
1.2 Expected crop yields and estimated days from planting
to maturity for selected crops in the Intermediate
Savannahs, Guyana . . . . . . . . . . . 48
1.3 Estimated production coefficients for cow-calf operations
in the Intermediate Savannahs, Guyana . . . . .... 49
1.4 Estimated production coefficients for growing-fattening
operations in the Intermediate Savannahs, Guyana. . . ... 50
1.5 Estimated days available for equipment operation by
months and seasons in the Intermediate Savannahs,
Guyana. . . . . * * * * * ...... . . 51
1.6 Power requirements in machine hours per acre for crops by
month and season in the Intermediate Savannahs, Guyana. .. 52
1.7 Labor requirements in hours per acre for crops by month
and season in the Intermediate Savannahs, Guyana. . . ... 53
1.8 Improved pasture (pangola): Estimated production
requirements and maintenance costs per acre for pasture
renewed every five years in the Intermediate Savannahs,
Guyana. . . . . . . ... . . . . . .. 54
1.9 Total investment, salvage value, expected life, and
estimated costs for machinery in Guyana ..... . . .. 56











APPENDIX II TABLES


TABLE Page

II.1 Corn: Estimated production requirements and income per
acre for the Intermediate Savannahs, Guyana . . . . 59
11.2 Soybeans: Estimated production requirements and income
per acre for the Intermediate Savannahs, Guyana . . . 62
11.3 Peanuts: Estimated production requirements and income
per acre for the Intermediate Savannahs, Guyana . . . 65
11.4 Vigna peas (pigmented): Estimated production requirements
and income per acre for the Intermediate Savannahs,
Guyana. . . . . . . . . . .. . .. 68
11.5 Estimated annual production requirements and income for
a 600-cow unit cow-calf operation on improved pasture in
the Intermediate Savannahs, Guyana. . . . . .. . 71
11.6 Estimated annual production requirements and income for
a 600-cow unit cow-calf operation on native range in the
Intermediate Savannahs, Guyana . . . ......... -. 74
11.7 Estimated annual production requirements and income for
a 600-cow unit cow-calf operation on improved pasture
from Sept. 15 to Mar. 14 and native range from Mar. 15 to
Sept. 14 in the Intermediate Savannahs, Guyana. . . .. 77
11.8 Estimated annual production requirements and costs and
returns per animal for fattening on improved pasture in the
Intermediate Savannahs, Guyana. . . . . . . . 80
11.9 Estimated annual production requirements and costs and
returns per animal for fattening on native range in the
Intermediate Savannahs, Guyana. . . . . . . ... 83
II.10 Estimated annual production requirements and costs and
returns per animal for fattening on native range Mar. 15
to Sept. 14 and on improved pasture Sept. 15 to Mar. 14
in the Intermediate Savannahs, Guyana . . . .. .. 86
II.11 Estimated annual production requirements and costs and
returns per animal for fattening on improved pasture plus
supplement in the Intermediate Savannahs, Guyana. . . . 89
11.12 Estimated annual production requirements and costs and
returns per animal for fattening on "Feedlot" in the
Intermediate Savannahs, Guyana. . . . . . . . 93


vii


III .-_~m;~-errPI-L~YY-- -









A PRELIMINARY STUDY OF THE ECONOMIC POTENTIAL FOR BEEF CATTLE, GRAIN
AND LEGUME-SEED PRODUCTION IN THE INTERMEDIATE SAVANNAHS OF GUYANA
USING A LINEAR PROGRAMMING MODEL

Paul J. Hooker


BACKGROUND AND OBJECTIVES


The Cooperative Republic of Guyana lies on the northeastern Atlantic
coast of South America between latitudes 110'N and 8040'N,56030'W and
61"30'W. Guyana has an area of approximately 83,000 square miles
(53,120,000 acres) and, in 1971, had an estimated population of 786,130
people [4, p. 12 andl7, p. 18]. Rainfall averages 80 inches per year
in the northern (coastal) area with a bimodal annual distribution and
50 to 60 inches per year in the southern (Rupununi) savannahs with a
single rainy season. Coastal temperatures range between 750F and 80F
while temperatures in the interior range between 70F and 800F.
Guyana, formerly British Guiana, became an independent member of the
British Commonwealth in 1966 and a Cooperative Republic in 1970. Bauxite
(including alumina) and agricultural products comprise most of the exports
(51 percent and 40 percent, respectively, in 1970). Agricultural products
made up approximately 15 percent of imports in 1970 while vehicles, ciga-
rettes, beverages, and other consumer goods accounted for 11 percent;
fuels, lubricants, chemicals and machinery accounted for 48 percent; and
semi-manufactured goods accounted for the remaining 26 percent. Imports
in 1970 were valued at G$268,223,000 and exports were valued at G$270,309,0001
[7, pp. 62, 63]. Table 1 presents information on the composition of
agricultural production over the past decade as well as information on
the value of production, indices of total and per capital production and
an index of population. While total agricultural production has increased
up to 1971 from the 1961-65 average, per capital production has declined.


1One G$ = U.S. $0.50.


Paul J. Hooker was formerly assistant professor of food and resource
economics at the University of Florida. He is currently an economist with
the National Marine Fisheries Services, National Oceanic and Atmospheric
Administration, Department of Commerce.






Table l.--Production by commodity, value and indices of total agricultural and food production, Guyana,
average 1961-65, annual 1962-71

Price Average
Commodity 'weight 1961-65 1962 1963 1964 1965
G$ ---------------------1,000 metric tons-----------------------------
Rice, paddy 130 234 228 194 260 256
Citrus fruit 120 10 9 8 12 12
Coffee 720 1 1 1 1 1
Coconuts 102 24 25 23 27 18
Sugar, raw
(centrifugal) 140 312 331 322 263 314
Beef and veal 960 3 3 3 3 4
Pork 1,140 1 1 1 1 1
Aggregates of
production -------------Million Guyanese dollars at constant prices---------------


Crops 78.4 80.4 74.4 75.6 81.2
Livestock 4.4 4.0 4.0 4.0 5.0
Total agriculture 82.8 84.4 78.4 79.6 86.2
Total food (excluding coffee) 82.0 83.6 77.6 78.8 85.4
Indices of production Index (1961-65=100).
Crops 100 103 95 96 104
Total agriculture 100 102 95 96 104
Total food 100 102 95 96 104
Per capital agriculture 100 105 95 93 98
Per capital food 100 105 95 93 98
Index of population
1961-65 population=100 619,000 100.0 97.1 100.0 102.9 105.8
Continued






Table l.--Production by commodity, value and indices of total agricultural and food production, Guyana,
average 1961-65, annual 1962-71--Continued


Preliminary-
Commodity 1966 1967 1968 1969 1970 1971
---------------------------------1,000 metric tons--------------------------------- ---
Rice, paddy 248 200 216 175 224 186
Citrus fruit 9 9 9 10 10 10
Coffee 1 1 1 1 1 1
Coconuts 22 15 25 35 35 35
Sugar, raw
(centrifugal) 293 349 322 370 316 386
Beef and veal 4 4 4 4 4 4
Pork 1 1 1 1 1 1
Aggregates of
production ---------------------Million Guyanese dollars at constant prices-----------------------


Crops 77.2 78.2 77.4 80.2 79.0 83.8
Livestock 5.0 5.0 5.0 5.0 5.0 5.0
Total agriculture 82.2 83.2 82.4 85.2 84.0 88.8
Total food
(exclud. coffee) 81.4 82.4 81.6 84.4 83.2 88.0
Indices of production Index (1961-65=100)
Crops 98 100 99 102 101 107
Total agriculture 99 100 100 103 101 107
Total food 99 100 100 103 101 107
Per capital agricul. 90 89 86 86 82 84
Per capital food 90 89 86 86 82 84
Index of population
1961-65 pop.=100 109.4 112.8 116.2 119.9 123.3 127.0
Source: [17].







Of Guyana's area of 53,120,000 acres, 482,000 acres are under
cultivation and another 7,413,000 acres is classified as pastureland
[4, p. 12]. Nearly 40,000,000 acres is in forest. In 1969, over 60
percent of Guyana's population of 730,000 was under 20 years of age
[4, p. 12]. In 1967, the work force made up approximately 33 percent
of the total population [11,pp. 23, 131]. The unemployment rate at
present is generally acceded to be approximately 20 percent of the
work force [11,p. 129]. Assuming that the above figures may be applied
to the estimated 1971 population of 786,130, over 471,000 of Guyana's
population is under 20 years of age. There are 262,000 people in the
work force and 52,400 of these are unemployed.
An important addition to the above description,based on quantities
of resources, is an evaluation of resource quality. The soils in Guyana
are either imperfectly drained heavy clays (along the coast) or exces-
sively drained sands and loams (in the interior) of low inherent ferti-
2
lity The population of Guyana is reported to be 80 percent literate
[4, p. 12]. Farmers and potential farmers have little or no experience
with row-crops and will require considerable technical assistance in
order to establish commercially successful beef cattle, grain and/or
legume-seed production units.
In 1969, the Government of Guyana, as represented by the Ministry
of Agriculture, negotiated a contract [5] with the University of Florida
(UF), as represented by the Center for Tropical Agriculture (CTA) of the
Institute of Food and Agricultural Sciences (IFAS). This contract is
financed by the Government of the United States of America through the
United States Agency for International Development (USAID). The intent
of the contract was to make available the expertise of the IFAS staff to
aid Guyana in developing her agricultural sector. The initial focus of
the IFAS effort was in the Intermediate Savannahs, an area of grassland
and galeria forests lying 50 to 100 miles south of the coastal belt



The "white sands" along the Atkinson-MacKenzie highway probably
constitute the largest deposit of exceedingly pure, high grade
"builder's sand" in the Caribbean area.








between Georgetown, the capital city on the Demerara River, and New
Amsterdam, Guyana's second largest city, on the Berbice River (Fig. 1).
The current study is defined under Task Order 17 of the GOG-UF
contract [5, Task Order 17 and appropriate contract amendments]. The
purpose of this study is to generate information essential for effec-
tive planning of agricultural development in the Intermediate Savannahs.
The Government of Guyana has indicated, through its Ministry of Agri-
culture, that it desires information on large-scale efficient produc-
tion units, producing all or some combination of corn, soybeans, peanuts,
3 H
pigmented Vigna peas and beef cattle. These crops were chosen for
their importance as import substitutes as well as their likely adapt-
ability to the Intermediate Savannahs.
As is generally true of undeveloped areas, Guyana possesses an
abundance of unemployed persons relative to the amount of capital avail-
able in the form of equipment and physical inputs (or the ability to
purchase same). Generation of additional employment opportunities is
one of the reasons for pursuing development of the interior of Guyana.
An overriding consideration in assessing alternative development
schemes is the demands made on available investment capital. Ministry
of Agriculture personnel have indicated that production units to be
developed in the Intermediate Savannahs will be wholly or largely owned j
by the Government, at. least initially. In order for these units to be
successful (i.e. profitable), they must generate sufficient income to
attract highly qualified managers. (Without skilled, highly motivated
on-site managers there can be little hope for a successful production
unit of any type.)
With these considerations in mind, this study has taken as its
objective the definition of a production system (or systems) involving all i
or some combination of corn, soybeans, peanuts, pigmented Vigna peas and




3"Pigmented Vigna peas" includes the variety known as "black-eye
peas". J




-w ~ f l-~-~;z- a~;---.---I~Y~le-


beef cattle that minimizes required capital subject to a given
constraint on the income generated by the system.


THE STUDY AREA


The study area is typified by the land lying within a triangle
formed by Ebini Livestock Station and the bauxite mining sites of
Ituni and Kwakwani. Figure 1 depicts the Ebini-Ituni-Kwakwani
triangle. Only about 300 square miles (192,000 acres) of the entire
Intermediate Savannahs area are actually savannah, the remainder being
covered with forest vegetation. The following excerpt from the 1971
Annual Report on the contract by IFAS adequately characterizes the
climate, soil, natural vegetation and limiting factors for pasture
and crop production in the area [2, pp. 2-3]:
Climate
The area has a mean annual rainfall of 90 inches and is
usually classified as a rain forest climate. The distribution
of the rainfall, however, is bimodal and there is considerable
variation in the rainfall pattern from year to year. The
general trend is that there are two wet and two dry seasons per
year. They are as follows:

Long wet season-- Mid-April to mid-August
Long dry season-- Mid-August to mid-November
Short wet season--Mid-November to mid-January
Short dry season--Mid-January to mid-April

The mean annual temperature is about 800F with a high in
October of about 83F and a low in January of about 780F. The
diurnal variation in temperature is about 170F which is quite
large and probably due to the rather constant trade winds from
the northeast.

The location of the (Ebini Livestock) station at 5040'N
gives a maximum variation in length of day of only 38 minutes.

Soils
The main soils of the Intermediate Savannahs are grouped
together as "brown sands". The "brown sands" consist of three
soil types ranging in texture from sands (Tabela sand) through
loamy sands (Kasarama) to sandy loams (Ebini), with Kasarama
the dominant type.















'* MAP OF

S- GUYANA

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S U R I I A m


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Mn I uALrnu






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TOTAL MPOLAIO. 700.000
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Figure 1--Map of Guyana depicting the study area (Ebini-Ituni-

Kwakwani triangle)


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The "brown sands" are characterized by high acidity, low
exchange capacities and low base saturations. They are
generally deficient in nitrogen, available phosphorus, potassium,
magnesium, sulphur and trace elements. The soils are extremely
permeable and leaching of applied nutrients is expected. The
soils appear to have high iron, manganese and aluminum contents.

Natural Vegetation
The natural vegetation on the savannahs consists mainly of
highly fibrous and unpalatable grasses. The principle genus is
Trachypogon in association with several species in the genera
Panicum, Paspalum and Andropogon. A few scattered shrubs and
trees occur in the savannahs and in some areas there are islands
of bushes and small trees.

Limiting Factors
The factor which is mainly limiting the establishment and
production of improved pasture is the low fertility level of the
soil. Since this is a limitation which can be corrected with
proper use of lime and fertilizer and the selection of grasses
and legumes adapted to the region, the potential production of
the pastures of the Intermediate Savannahs is indeed very great.

As for forage and pasture production the principal limiting
factor for the production of many feed crops such as corn,
sorghum, soybeans, and peanuts is the low fertility level of the
soil. With the application of the present techniques in plant
nutrition and soil science and the selection of varieties of
many of the feed crops adapted to this region, the production
potential for beef can be greatly increased.
As an addition to the above description of the climate, Figure 2
depicts average inches of rainfall per five-day period based on 17
years of data collected at Ida Sabina on the Berbice River in the
Intermediate Savannahs [6].
Transportation to the Intermediate Savannahs is by water, road,
and air. The Berbice River, which bisects the Intermediate Savannahs,
is navigable by ocean-going tugs and barges at least as far as
Kwakwani, approximately 80 air miles from New Amsterdam on the coast.
Small ocean freighters have been observed off-loading bulk lime at the
Kibilibiri dock site on the Berbice River approximately 65 air miles
from New Amsterdam. The river bank is such that dock sites may be
constructed with a minimum of dredging and filling at a number of
points along the river. Thus the Berbice River offers a means of
cheap transportation for bulky inputs into the Intermediate Savannahs
as well as transportation of products to the more populous coastal area.






Inches


O


0 5 10 15 20 25
I Jan II Feb II Mar I Apr I May


30 35 40 45 50 55 60
SJun 'Jul I'Aug Sep I Oct


I I .
65
Nov


''I "' I
70 73
Dec Five-day
periods


Figure 2--Average inches of rainfall per five-day period throughout the year for 17 years
(1949-50, 1952-66) at Ida Sabina in the Intermediate Savannahs, Guyana







Within the Intermediate Savannahs area, a minimum of road
maintenance (consisting largely of bridging small creeks) will allow
extensive travel by two-wheel drive truck-type vehicles. With similar
road maintenance, four-wheel drive vehicles can traverse the entire
area in all seasons. However, road travel between the Intermediate
Savannahs and the coast is generally limited to four-wheel drive
vehicles traveling by way of Ituni to Linden and thence to Georgetown.
The road from Ituni to Linden (approximately 40 miles) is an all-
weather road for two-wheel drive vehicles constructed with laterite
overburden from bauxite deposits and maintained by the Guyana Bauxite
Company. A paved highway extends from Linden to Georgetown, a distance
of about 70 miles. A "barrier" approximately 15 miles wide is formed
between Ituni and the savannah area of the Intermediate Savannahs by
a forested area riddled with creeks and bordered by areas of deep
white sand supporting stunted, sparse tree growth. Roads exist through
this barrier but become difficult to navigate even with four-wheel
drive vehicles in the wet seasons. The sandy areas require four-wheel
drive vehicles during much of the dry seasons. Construction of one or
more all weather roads, similar to the Ituni-Linden road, through this
"barrier" would serve to open much of the Intermediate Savannahs west
of the Berbice River to year-round contact with the coastal area by
road. Needless to say, placing even a part of the Intermediate
Savannahs area within two hours of Linden and four hours of Georgetown
by two-wheel drive vehicles on a year-round basis will do much to
enhance the attractiveness of the area to potential settlers.
Most of the Intermediate .Savannahs lies within one hour traveling
time by air from Georgetown. The topography of the savannahs allows
the construction of grass runways suitable for planes up to the size
of a DC-3. Thus, the minimum travel time between the Inter-
mediate Savannahs and the major urban center is short. How-
ever, air travel and transport is expensive and probably cannot be
used for personal travel on a regular basis by most potential settlers.
Transportation by air of yields from the crops considered in this
study is not economically feasible.






11.


CROPS AND LIVESTOCK


During the early part of the twentieth century, the Intermediate
Savannahs served as a rest area for herds of cattle being driven from
the Rupununi Savannahs in the southern part of Guyana near Brazil (Fig.
1) to the coastal area. Although it contains a large area of grassland,
the Intermediate Savannahs area has never supported a yearround ranching
operation similar to those found in the Rupununi Savannahs.
No satisfactory explanation of this fact has been obtained although
several explanations have been put forth. Among these are the severe
mineral (especially phosphorus) deficiencies suffered by cattle grazed
year-round in the Intermediate Savannahs. Other possible explanations
relate to the absence of complementary activities such as balata
gathering (similar to natural rubber tapping), small-scale mining
activities and "tourism" as well as historical accident (i.e. the
Rupununi Savannahs just "happened" to be settled by some unexplained
"preference" of the settlers for that much more remote and inaccessible
area). As stated, none of these explanations are entirely satisfactory;
however, the mineral deficiencies and absence of complementary activi-
ties were probably contributing factors.
In any case, Guyana, as an independent nation faced with the problems
of maintaining an acceptable trade balance, ordering its trading so as to
acquire needed capital goods, and establishing a high employment rate,
has chosen to explore the feasibility of producing beef, grain and legume-
seed crops in the relatively accessible Intermediate Savannahs. These are
the crops considered in this study. Other potential crops include citrus
and tree-nuts. Other areas of the country--the Northwest, the Coastal
area, the Rupununi and the Corentyne--should be considered as alternative
production sites in any final development plan.
Intensive crop research was begun by the University of Florida
IFAS team at Ebini Station in 1969. Crops under consideration








included sorghum, soybeans, peanuts, pigmented Vigna peas and cassava.
Thus far, two publications, noting major developments, have resulted
from this work. A new variety of peanut, Altika, was developed for
the tropics by Norden, Chesney and Stephenson [16]. A soybean variety,
Jupiter, for tropical latitudes was developed by Hinson [12]. These
publications together with reports submitted by other IFAS researchers,
interviews with Ministry of Agriculture personnel and conversations with
Guyana equipment dealers have provided the information on which the crop
budgets used in this study are based. The choice of crops--corn, soybeans,
peanuts and pigmented Vigna peas--was determined by Ministry of Agriculture
personnel. It was believed that sorghum needed more basic research work
before it should be considered as a commercial crop in the Intermediate
Savannahs. Cassava was believed to be better adapted to other parts of
Guyana. Table 2, based on Appendix Tables 1.5 and II.1-II.4, presents
in summary form the variable costs, capital requirements, and expected
returns to management for each crop in each season. In addition,
Table 2 includes the capital requirements for the complement of


Table 2.--Variable costs and returns per acre and capital requirements
for selected row-crops in the Intermediate Savannahs, Guyana

Crop
I Vigna peas
Item Corn Soybeans Peanuts (igna pea
(pigmented)
----------------------G$--------------------
Variable costs 130 141 285 150
Return in excess
of variable costs
Long rainy season 50 84 120 50
Short rainy season 20 47 15 175
Capital requirements 88,595 79,745 53,445 80,045


aIncludes equipment, buildings and charge for positioning airplane
for dusting and spraying.








equipment required for each crop. Prices and equipment costs used in
this report do not include drying or drying facilities4.
As indicated in Table 2, the most profitable crops of corn, soy-
beans, and peanuts are grown during the long rainy season. Profit-
ability is directly related to variable costs for these crops with
peanuts, the most profitable crop, having the highest variable costs.
The most profitable crop of Vigna peas can be grown during the short
rainy season. Due to their short growing season (approximately 75
days from planting to harvestable maturity) Vigna peas are better
adapted to the short season when they can be planted just before the
rain begins and harvested after it ends. During the long rainy season,
Vigna peas must either be planted during heavy rains or harvested during
heavy rains with attendant yield losses. In order to obtain the income
and cost levels indicated in Table 2, good management, comparable with
that on the large, well-managed coastal sugar estates, is required. In
addition, much technical assistance will be required until the managers
and workers learn how to grow and harvest these row-crops. Without
good management and adequate technical assistance, the returns indicated
in Table 2 probably are not attainable.
The Government of Guyana has maintained a livestock station at
Ebini since 1941. J. M. Mayers has summarized the findings of the
station's research program up to 1967 [13]. His conclusionwas
essentially that beef production on improved pasture or native range
in the Intermediate Savannahs was not an economic proposition under
then-existing management practices.
In 1969, the University of Florida began a program of experimental



Drying, storage and transportation facilities are appropriate sub-
jects of a separate study. Transportation of the "wet" crop to the coast
where existing drying facilities (for rice) can be used may be a prefer-
able alternative to establishing drying facilities in the Intermediate
Savannahs. In any case the scale economies associated with drying and
storage facilities needlessly complicate the analysis of optimum farm
size and organization that is the subject of this study.
5"Improved pasture" refers to cultivated, fertilized pastures of an
improved grass strain, e.g., pangolagrass.








breeding, herd management and pasture improvement and management at
Ebini Livestock Station. The partial results of this program, as
summarized by Boyd, et al. [3], form part of the basis for the live-
stock budgets used in this study. The Intermediate Savannahs are similar,
in many ways, to parts of southern Florida. Livestock budgets developed
for relevant areas of southern Florida by University of Florida extension
personnel [1] were used to provide information and serve as a check on
the budgets used here.
A World Bank loan to the Government of Guyana has been used to
initiate the Livestock Development Project under the direction of Joe
Ritson, a tropical pasture and livestock specialist from Australia. The
purpose of the project is to develop viable, largescale beef-cattle
ranches on the coast and in the Rupununi Savannahs. Access to the ranch
plans developed by Mr. Ritson and his group has provided invaluable
insight into cattle ranching in Guyana as well as reliable estimates of
production parameters. In addition, Noel Holder, former livestock
officer at Ebini, generated the information on which the supplemental
feeding and feedlot fattening budgets are based.
Table 3 summarized the cow-calf6 operations described in Appendix
Tables II.5-11.7. The cow-calf (or breeding) herd operations considered
here include a program in which the herd is maintained on improved
pasture; a program in which the herd utilizes only native range; and a
"combination" program in which the herd is maintained on improved pasture
for half the year (Sept. 15-Mar. 14) and native range for the other
half year (Mar. 15-Sept. 14). Calves are weaned and enter a fattening
program (budgeted separately) at seven months of age. The production
parameters used in generating the costs and returns presented in Table
3 assume the existence and application of competent management. While
native range has the lowest annual variable costs, it requires a high




6"Cow-calf," "breeding" and "brood" herds refer to the same
commercial operation of producing weaned calves from a herd of cows.








Table 3.--Annual costs, returns, capital requirements and calf produc-
tion for 600-cow unit cow-calf operations on improved pasture,
native range and a combination of the two in the Intermediate
Savannahs, Guyana


Combination of
Item Improved pasture Native range improved pasture
and native range

-------------------G$ --------------- ----
Income (cull cattle) 16,860 15,000 17,055
Variable costs 108,674 17,176 63,939
Initial investment 181,740 202,920 203,000

No. No. No.
Calves produced 365 168 325
Variable cost per
calf produced 298 102 197

aIncludes pasture costs.
Includes value of herd.
Seven-month old weaners.


initial investment and produces the fewest calves, thus requiring more
total capital per calf produced (G$1,310/head) than either improved
pasture (G$796/head) or the combination of native range and improved
pasture (G$821/head).
Table 4, based on Appendix Tables II.5-11.12, presents the annual
net incomes, total capital and annual capital requirements of the
eighteen possible cow-calf-fattening operations. Calves weaned at
seven months of age may be placed into one of six different alter-
natives. They may be fattened on improved pasture, native range or
a combination of the two similar to the cow-calf regimes. In
addition, the calves may be fattened on improved pasture with a
molasses, copra meal, rice bran and urea supplement or in a "feedlot"
situation utilizing a molasses, copra meal and urea feed. Mineral
supplement is included in allthe fattening programs. As an alterna-
Stive to fattening, weaned calves may be sold as such. The fattening
, operations are considered to operate as adjuncts to a cow-calf
operation and use the labor and buildings of that operation. Thus,




Table 4.--Annual net incomes a,
fattening operations


total capital and annual capital requirements for alternative cow-calf-
based on a 600-cow cow-calf herd in the Intermediate Savannahs, Guyana


Fattening program
Item byNative Improved Improved Sell weaned
type of a e Combination plus "Feedlot" calves at
operation range pasture supplement G$0.30 per lb.
Income ----------------------------- G -------------------------------------------------
Income
Improved pasture -27,390 -53,706 -36,073 -38,778 -42,647 -50,751
Native range 22,640 12,640 18,204 16,852 18,714 10,424
Combination 8,528 -15,295 614 -2,003 -5,240 -12,759
Total capital
Improved pasture 371,458 350,721 327,928 338,141 344,028 290,414
Native range 257,398 258,658 237,363 242,063 244,773 220,096
Combination 339,102 341,539 300,342 309,436 314,678 266,939
Annual capital
Improved pasture 356,866 364,801 320,986 318,482 315,186 284,552
Native range 244,792 248,444 228,278 227,125 225,608 211,508
Combination 324,131 331,197 292,184 289,954 287,019 259,742
aInterest charge on annual capital not deducted; represents return to management and capital.

"Combination" refers to a program involving native range Mar. 15-Sept.14 and improved pasture Sept.15-
Mar. 14.


I 1 -r i







the cost figures in Table 4 do not reflect charges for labor or
buildings. None of the cattle production programs are particu-
larly profitable. Only programs involving cow-calf herds on native
range consistently yield positive net incomes (returns to manage-
ment and capital). The program involving cow-calf and fattening
operations on native range yields the highest return (9.3 percent)
to annual capital (no charge for management). The program yielding
the next highest return (8.3 percent) to annual capital involves cow-
calf operations on native range and fattening operations in a
"feedlot." The third highest return (8.0 percent) to annual capital
is yielded by a program involving cow-calf herds on native range and
fattening herds on improved pasture. None of these returns is
adjusted for management costs. If management is deemed to receive
part or all of the return to annual capital, and is willing to work for
that price, the returns stand as given. If a separate charge is made
for management, then the returns cited are overestimates and, de-
pending on the magnitude of the management charge, may not be positive.
The figures presented in Table 4 are estimates that may be obtained with
competent management and adequate technical assistance. Without com-
petent management and adequate technical assistance, less favorable
costs and returns will be likely to occur.
The budgets presented in Appendix Tables II.1-II.13 and summarized
in Tables 2-4 are necessary to the planning process. However, by them-
selves, they do not constitute effective planning information. By
using an appropriate technique, such as linear programming, these
budgets and the goals and constraints imposed by the planning authority
may be combined to yield descriptions of alternative production systems
that are feasible and, given a particular set of constraints, optimal
for the Intermediate Savannahs.


THE MODEL

The objective of this study is to determine production systems
for the Intermediate Savannahs of Guyana involving corn, soybeans,
peanuts, Vigna peas and beef cattle that minimize required capital
while providing a given level of income. The budgets developed as








Appendix Tables 11.1-11.13 represent a "Enap:rht" of the annual costs
and returns of on-going operations. Sinwc- "'::_ --up"- costs as well as
"phasing-out" operations are not considered, tcrs objective and the

problem can be stated precisely in termr- of line~.r programming
framework as a resource minimization pro'-lem, ).p.ifically, the
objective is to:

minimize: cX
subject to: AX = b
and: X > 0
where: c = [ci, c2, ..., cn] is a ro' vector of capital

(resource) requirements pr unit of enterprise xj.
X x= is a column vector of entarnrises or
activity outpucs.



x
.n
b b is a column v-ecti:L-.: o:" esource constraints
S which maust b_ r : f-.- ario.i. -Ing the objec-
tive fu.c.ti., i ;,

b
ml
A is an m x n matrix of coefficients, a. stating
the requirements of resource b. for a unit of
1
enterprise x..

As presented above, the constraint eiuations A. = b\ involve only
qualities whereas the "real world" may involve inequalities. However,

the "real world" inequalities may be converted .co cQualities by the
addition of artificial non-use or "slack." vari.:,;iab The above formu-
ation includes the necessary slack variables. 'o-: a cnre detailed
ut easily readable formulation of linear p:ogra..rag problems, see
ass [10], especially the mathematical app-eio.: di, For a more complete
theoretical development of the resource minimization -model, see Meyer
14]. For a use of the resource minimizacion mndel as a planning tool
Sa Latin American country, see Eddleman and eyer [ 8 ] and Meyer [14].
The tables in Appendices I and II were used to provI:de parameter
estimates for the model as presented above. Tihe .chmacLal Program-








ming System 360 (MPS 360) supplied by International Business Machines
Inc. (IBM) was used in conjunction with the University of Florida
Computing Center's IBM 360/65 computer to generate optimal feasible
solutions to the programming problems. Different programming problems
were created subsequent to the initial problem solution by respecifying
selected parameters at different levels.


CROP AND LIVESTOCK SYSTEMS


The budgets in Appendix II are based on research done separately
on crops and livestock. To data, no research has been undertaken on
integrated crop and livestock systems in the Intermediate Savannahs of
Guyana. The assumption is made here that crops and livestock are not
competitive with one another in terms of yields per unit of production.
In fact,crops and livestock, integrated by an efficient rotation
system, may well be complementary in terms of yields per production
unit. However, since no research results are available to document any
complementarity, independence is assumed.
Certain farm inputs are "lumpy", that is, not infinitely divisible.
The crop farming system described here is limited to the use of one
complement of equipment such as a tractor, disc, harrow, planters
and combine. While a crop unit was not allowed more than
one complement of equipment7, it was required to pay full capital
charges on a full complement of equipment even if only a fraction of
the complement was used. Related to the lumpinesss" problem of
machinery inputs is the scale problem in livestock systems. Small
cattle herds require more fencing per animal than do larger herds, at
least up to some optimal size herd. Labor inputs are "lumpy" in the
sense that a herdsman can handle any number of cattle up to some
optimal number with equal ease. The herd size employed in this study
involves a basic 600-cow unit cow-calf herd which is assumed to be large




S Larger farms can be described in terms of integer multiples of the
I basic, one-complement unit.

4 -agrfrscnb ecie n em fil-grmlilso h








enough to capture most economies of scale. Fattening operations are
based on the calf output of the attendant cow-calf operation.


Crops
The income level chosen as minimum in this study is the maximum
income that can be obtained from a crop production unit with a single
complement of equipment. Table 5 presents the production unit that
minimizes required annual capitalS while attaining the indicated
income. In addition, total required capital, acres of cropland and
9
hours of skilled and unskilled labor required are presented in Table 5.
The production system described in Table 5 is based on the information
in Appendices I and II and requires the assumption of good management
and adequate technical assistance. The farm level prices, on which the
return presented in Table 5 is based, are presented in Table 6.
The crop production system presented in Table 5 involves only
Vigna peas and peanuts. Assuming that a competent manager can be hired
for G$15,000 per year and that overhead expenses not directly related
to crop production (e.g. for housing, vehicles, boats, etc.) amount to
G$15,000 per year, then G$55,775 per year is available to repay the




"Annual capital" is that amount of capital that is required for the
whole year and for which the full, annual interest charge is paid.
Annual capital is not greater than total capital, which is simply the
amount of capital borrowed in a year, regardless of the length of time
for which it is borrowed. For example, if $1,000 must be borrowed for
a six-month crop season during the year and is repaid on time, the
"annual capital" required is only $500 while the "total capital"
required is the entire $1,000.
9"Income" in the table is net of a charge for labor hours. However,
since labor hour requirements are "bunchy", this charge may not repre-
sent the full cost of maintaining a laborer throughout the year. The
crops system requires one full-time skilled worker supplemented by the
working manager during peak-load periods (such as harvest). The crops
system requires only 362 hours per year of unskilled labor with a peak
requirement of 95 hours in June. If part-time unskilled labor cannot
be hired, the unskilled labor charge underestimates the cost of
unskilled labor. It is possible that the working manager may be able
to supply the "unskilled" labor hours required in the absence of part-
time help.










Table 5.--A crop production unit that minimizes annual capital require-
ments while realizing a given income level for the Interme-
diate Savannahs, Guyanaa


Item Description Amount

Income Return to management
and repayment of capital G$85,775
Crops
Vigna peas (pigmented) Grown during the short
rainy season 343 acres
Peanuts Grown during the long
rainy season 352 acres
Labor
Skilled Annual hours 2,263 hours
Unskilled Annual hours 362 hours
Annual capital
required G$171,928
Total capital
required G$248,805
aThe figures in this table are rounded from the programming solution
obtained from the computer and contain slight inconsistencies.
bThe income figures are net of a 9.5 percent charge on annual capital.
CThe maximum monthly requirement for skilled labor is 663 hours in
September. For unskilled labor, the maximum monthly requirement is
95 hours in June.


Table 6.--Farm prices for cropsa and livestock used to generate the
initial production systems for the Intermediate Savannahs,
Guyana

Item Unit Price
SCorn (shelled) Lb. 0.06
Peanuts unshelledd) Lb. 0.15
Soybeans Lb. 0.125
Vigna peas (pigmented) lb. 0.25
All livestock (liveweight) Lb. 0.30
aCrop prices are for the crop as harvested and do not include drying
charges.








total capital required. If the entire amount of total capital required
is borrowed initially, it can be repaid in slightly less than five
10
years (4.5 years) at the rate of G$55,775 per year. If the cost of
a manager is higher and/or overhead expenses have been underestimated,
the repayment period will be longer. If managerial and overhead costs
are less than G$30,000 per year, the pay-back period may be less. In
any case, the payback period will be greater than one year and will
require tenure arrangements for private investors that guarantee tenure
for at least the length of the payback period.


Livestock
Table 7 presents a livestock production unit that minimizes
required annual capital while attaining a specified income level.
Based on the information presented in Appendices I and II, there is no
livestock production unit that can pay full interest charges (9.5% per-
cent) on annual capital and return a positive income to management and
repayment of capital. The production unit described in Table 7 minimizes
required annual capital while attaining minimum losses. This produc-
tion unit is believed to be representative of commercial cattle ranches
in Guyana (especially the savannah areas) at present. Cattle are
produced on an extensive basis with a minimum of capital investment.
The required capital has been built up over a long period of time and
is largely accounted for by the value of the herd. Since most of the
Capital is owned, the return to owned capital accrues as income to the
owner-manager, who accepts the return to his owned capital as payment
for managing that capital. Thus 'the "optimal" production unit
generated from the programming exercise.is consistent with current
practice in the country. It is not surprising to find that, given the
conditions under which they operate, the ranchers are doing the "right"
thing consistent with the profit motive attributable to all entrepre-
neurs.



10
Since income is net of variable costs and equipment depreciation
costs (replacement costs), capital repayment represents a buildup of
owner equity in the total capital required to finance the production
unit.









Table 7.--A livestock unit that minimizes annual capital requirements
while realizing a given income level for the Intermediate
Savannahs, Guyana


Item Description Amount
Income Return to management
and repayment of capital (-)G$615
Livestock
Cow-calf on
native range 600-cow unit 1 unit
Fattening on
native range Feeder cattle fattened
for four years
(based on average annual
numbers from four age
groups) 595 head
Labor (unskilled) Annual hours 8,320 hours
Annual capital required G$244,792
Total capital required G$257,398


aThe income figure is net of a 9.5 percent charge on

Based on 4 man-years of 2,080 hours per man-year.
t ah noefguei e ra95 ecn hreo


annual capital.


This section describes two potential production units for the
Intermediate Savannahs of Guyana, one involving crops only and another
involving livestock. The crops unit produces 445,900 pounds of pig-.
mented Vigna peas and 950,400 pounds of unshelledd) peanuts annually.
SThe livestock unit produces 159,536 pounds (liveweight) of beef cattle
(including cull cows and cull heifers as well as fat slaughter cattle).
The yields reported here are dependent on competent management and
adequate technical assistance. In addition, the return assumes that
input costs and product prices remain as reported in Table 6 and
Appendix I.


PRODUCTION POTENTIAL OF THE INTERMEDIATE SAVANNAHS OF GUYANA


In order to calculate the productive potential of the 192,000
acres of grassland in the Intermediate Savannahs, some assumptions as
to waste area and homestead sites are required. Assume that 10 percent
of the area--19,200 acres--is either wasteland or reserved for non-


4
*<







agricultural purposes. Further, assume that the production unit
involving crops requires 390 acres (approximately 10 percent of the
352 acre crop area for roads, homesite and buildings) and that the
livestock production unit requires 29,000 acres (28,880 acres in
native range pasture plus about 0.4 percent of the crop-pasture area
for roads, etc.). The 172,800 acres available for development without
clearing of forest land will support approximately 443 crop farms or
approximately 6 livestock production units.
Table 8 presents the crop and livestock yields and associated
incomes and capital requirements that will result from developing the
Intermediate Savannahs with the crop units or livestock units described
above. Table 9 presents the amounts of selected commodities needed to
offset 1970 imports, taking into account possible substitutions, as
estimated by the Ministry of Agriculture. Comparing the figures in
Table 9 with those in Table 8 and the output per crop production unit
indicates that the entire Intermediate Savannahs need not be developed
to satisfy domestic needs for crops. If Vigna peas are assumed to be
an acceptable substitute for split peas and chick peas, then 19 crop
units can produce enough Vigna peas to meet import requirements for
all peas and produce a surplus above import requirements of 16,964,400
pounds of unshelled peanuts. No corn or soybeans are produced, however.
Given the arbitrary, required income levels, corn and soybeans do not
enter the programming solution at the estimated price and productivity
levels. If the entire Intermediate Savannahs were developed into
livestock production units as described in Table 7, import requirements
for beef would be reduced to 3,264,984 pounds (liveweight). Any other
livestock development will necessitate extensive subsidies. The
linear programming algorithm allows relaxation of price and/or produc-
tivity assumptions ("sensitivity analysis") in order to determine at
-what levels alternative enterprises enter the programming solution.
Sensitivity analysis was performed for both the crop and livestock
production units to determine the conditions under which alternative
production combinations become "optimal".








Table 8.--Annual production potential of the Intermediate Savannahs for
two types of production units

Crops production units Livestock production units

Item No. or amt. Item No. or amt.
Production units 443 Production units 6
Crop yields
Vigna peas 197,533,700 lbs. Beef cattle 957,216 lbs.
peanuts 421,027,200 lbs. (liveweight)
unshelledd)
Income G$37,998,325 Incomea (-)G$3,690
Annual capital G$76,164,104 Annual capital G$1,468,752
Total capital G$110,220,615 Total capital G$1,544,388
Labor hours Labor hours
skilled 1,002,509 hrs. unskilled 49,920 hrs.
unskilled 160,366 hrs._
aNet of production costs and interest charges of 9.5 percent on annual
capital. Represents a return to management and repayment of capital.
bAt 2,000 hours per man-year, this represents 501 man-years of
skilled labor and 80 man-years of unskilled labor.
cAt 2,080 hours per man-year,this represents 24 man-years of unskilled
labor per year.


Table 9.--Domestic production needed to offset 1970 imports of selected
commodities, taking into account feasible substitutions

Commodity Unit Production needed
Black-eye peas Lb. 90,300
Split peas Ib. 6,552,000
Chick peas Ib. 1,838,900
All peas Lb. 8,481,200

Corn Ib. 6,640,000
Peanuts Ib. unshelledd) 1,093,200
Soybeans Lb. 18,583,145
Beef cattle lb. (liveweight) 4,222,200
aSource: [15].










Crops
In order to generate alternative production systems, one may
increase the product price and/or productivity of those enterprises
not in the initial solution in order to determine the price or
productivity levels at which they enter the solution. The prices of
corn and soybeans were increased, separately, at the rate of G$0,01
per pound in order to determine the price increases needed for these
activities to become as profitable as the activities in the initial
solution.
Tables 10 and 11 present the alternative production units avail-
able when the price of corn is increased toG$0.076 per pound or


Table 10.--Alternative production units available
corn increased to G$0.076 per pounda


with the price of


Pea-peanut Pea-corn
Item production unit production unit

No. or amt. No. or amt.

Incomeb G$85,775 G$85,775
Crops
Short season Vigna peas 343 acres 343 acres
Long season peanuts 352 acres 0 acres
Long season corn 0 acres 352 acres
Annual labor hours
Skilled 2,263 hours 1,722 hours
Unskilled 362 hours 358 hours
Annual capital G$171,928 G$142,473
Total capital G$248,805 G$191,793
aThe figures in the table are rounded from the programming solutions
Sand may contain slight inconsistencies.
bThe income figures are net of a 9.5 percent charge on annual capital.


'4
r,







Table ll.--Alternative production units available with the price of
soybeans increased to G$0.133 per pound


Itm Pea-peanut Pea-soybean
m production unit production unit

No. or amt. No. or amt.
Income G$85,775 G$85,775
Crops
Short season Vigna peas 343 acres 343 acres
Long season peanuts 352 acres 0 acres
Long season soybeans 0 acres 352 acres
Annual labor hours
Skilled 2,263 hours 1,764 hours
Unskilled 362 hours 363 hours
Annual capital G$171,928 G$144,452
Total capital G$248,805 G$195,753

aThe figures in the table are rounded from the programming solutions
and may contain slight inconsistencies.
The income figures are net of a 9.5 percent charge on annual capital.

G$0.016 above the base level and the price of soybeans is increased to
G$0.133 per pound or G$0.008 above the base level respectively. As
indicated by Table 10, if the price of corn is increased to G$0.076 per
pound, then corn becomes competitive with peanuts and production units
.involving either corn or peantus with Vigna peas are equally desirable.
Table 11 indicates that increasing the price of soybeans to G$0.133 per
pound creates a situation in which soybeans or peanuts are grown with
Vigna peas on an indifferent basis. Thus, with only very small changes
4in the relative prices of these products they become equally profitable
for the crop farming situations.


Livestock
The price used in this study for all cattle is G$0.30 per pound,
liveweight, with no differentiation for size or quality. The use of
a single price is believed to approximate reality fairly closely for
beef marketing in Guyana. The Guyanese consumer is presented with an
unsophisticated array of fresh beef cuts, essentially steak, stew and
r








bone, most of which has never been refrigerated. The primitive
methods of slaughtering and marketing fresh beef described by Carl W.
Elmer [9 ] contribute to the virtually unselective demand for beef on
the hoof with cull cows, slaughter steers and feeder calves bringing
essentially the same price. As the beef industry in Guyana develops,
a market for graded cattle will develop. It is difficult to predict
when a differentiated market for cattle will develop and even more
difficult to predict the price pattern for different grades. Under the
assumption that all grades of cattle bring the same price (or that the
different prices and grades yield a constant weighted average price)
it is of interest to determine the "break-even" prices for the alterna-
tive cow-calf-fattening operations. Knowledge of the "break-even"
prices under various assumptions as to interest, management and over-
head charges is useful to policymakers in considering alternative
subsidy programs.
Table 12 presents the prices per pound for slaughter cattle that
yield zero net income ("break-even" prices) under three different
assumptions about interest, management and overhead charges. If no
overhead charges are made, the cow-calf on native range operation
coupled with any fattening operation consistently produces the lowest
break-even price. Similarly, fattening on native range produces the
lowest break-even price over all cow-calf operations in the absence
of management and overhead charges. If a charge for management and
overhead of G$30,000 per year is made in addition to an interest.
charge of 9.5% on annual capital, then the cow-calf operation on a
combination of native range and improved pasture produces the lowest
break-even prices over all fattening operations. Among the fattening
operations (coupled with the cow-calf on combination program),
fattening on native range or on improved pasture plus supplement
produces the lowest break-even price of G$0.52 per pound. Fattening
on improved pasture or in "feedlot" are next at G$0.53 per pound.
SThus, when full interest charges are made along with reasonable over-
head and management charges, it becomes attractive ("least-cost") to
Supplement the native range with improved pasture for the cow-calf
herd and to fatten the slaughter cattle entirely on native range, on
improved pasture (with or without supplement) or in a "feedlot"





Table 12.--Prices per pound for slaughter cattle yielding zero net income ("break-even" prices) under three
different assumptions concerning interest, management and overhead charges for alternative cow-
calf-fattening operations based on a 600-cow cow-calf herd


Item by type of Fattening programs
cow-calf operation Native Improved Improved plus Sell weaned
range Combination pasture supplement "Feedlot" calves
----- ---- -------G$ ----------------- ---------------
No charge for interest, management and overhead
Improved 0.40 0.48 0.42 0.42 0.43 0.67
Native 0.09 0.20 0.14 0.17 0.17 0.05
Combination 0.26 0.36 0.30 0.31 0.32 0.41
Charge on annual capital of 9.5 percent; no charge for management and overhead
Improved 0.52 0.60 0.53 0.52 0.53 0.87
Native 0.31 0.39 0.33 0.34 0.32 0.53
Combination 0.39 0.48 0.41 0.41 0.42 0.63
Charge on annual capital of 9.5 percent; annual charge of G$30,000 for management and overhead
Improved 0.63 0.70 0.63 0.61 0.62 1.09
Native 0.58 0.62 0.59 0.57 0.53 1.24
Combination 0.52 0.60 0.53 0.52 0.53 0.89
a"Combination" refers to a program involving native range Mar. 15-Sept.14 and improved pasture Sept..15-
Mar. 14.






situation. These programs produce cattle at a weighted (over all
grades) average price of G$0.52-0.53 per pound or about US$0.26 per
pound (liveweight). While this price is considerably above the current

Guyanese average price, it is of the same magnitude as recent U.S.
prices. If it is deemed desirable to move the Guyanese cattle industry
Saway from native-range operations, Table 12 gives an indication of the
S"break-even" prices (and subsidies) required for the various cow-calf-
i fattening operations as alternatives to native-range operations.
The budgets for livestock operations presented in Appendix Tables
,11.5-11.12 are believed to accurately represent costs and returns under
- present conditions. It is of interest, however, to explore the results
- of two changes in those budgets. If herd management practices can be
maintained without using fences on native range, then those operations
utilizing native range pasture will become more profitable by the
reduced cost of fence maintenance and interest charge on capital used
Sfor building and maintaining fences. Table 13 presents the annual net
incomes (exclusive of interest, management and overhead charges), total
Capital and annual capital required for the various cow-calf-fattening
operations under the assumption that no fencing is required on native
range pasture. While the profitability of alternatives involving
native range pasture is increased and capital requirements decreased,
the relative attractiveness of the various alternatives remains
unchanged from those presented in Table 4.
Since improved pasture is assumed to be re-established every five
years, the budgets in Appendix Tables 11.5-11.12 consider pasture
establishment and maintenance costs as annual or variable costs, to be
charged against annual income. Boyd et al [3] employ a different
assumption about pasture costs. They assume that the initial cost
(fixed cost) of establishing improved pasture is G$105 per acre with
an annual maintenance cost (variable cost) of G$35 per acre thereafter.
Substituting the Boyd et al assumption on pasture costs for the
assumption used here has the effect of increasing net income (annual
charges, to be subtracted from gross income, are reduced from G$80.69
to G$35 per acre) and increasing required capital (capital costs
increase from zero to G$105 per acre). Table 14 presents the annual
,net incomes (interest, management and overhead charges not deducted),




TaKbe A--Annfal net incomes total capital and annual capital requirements for alternative cow-calf-
fattening operations based on a 600-cow cow-calf herd with no fencing on native range pastures
and creeks used for watering cattle on native range


Item by type of Fattening program
cow-calf operation Native b Improved Improved plus Sell weaned
range Combination pasture supplement "Feedlot" calves @G$0.30/lb
a Income -----------------------------G$-------------------------------------
Income
Improved pasture -24,222 -52,453 -36,073 -38,778 -42,647 -50,751
Native range 25,388 14,507 19,494 18,142 20,004 11,714
Combinationb 12,535 -12,993 1,800 -817 4,054 -11,573
Total capital
Improved pasture 305,023 324,404 327,928 338,141 344,028 290,414
Native range 199,730 219,455 210,273 214,973 217,683 193,006
Combination 255,042 293,200 275,436 284,530 289,772 242,003
Annual capital
Improved pasture 292,017 339,112 320,986 318,482 315,186 284,552
Native range 188,498 210,175 201,833 200,680 199,163 185,063
Combination 242,076 284,009 267,871 265,641 262,710 235,429
aInterest charges on annual capital not deducted. Represents return to management and capital.
"Combination" refers to a program involving native range Mar. 15-Sept.14 and improved pasture Sept.15-
Mar. 14.




---- ^ 14 4 V a
jTael> 14 .--Annfal- net incomeS total capital and annual capital requirements for alternative cow-calf-
fattening operations based on a 600-cow cow-calf herd with pasture establishment costs (initial
investment) of G$105 per acre and annual maintenance costs of G$35 per acre


Item by type of Fattening program
cow-calf operation Native b Improved Improved plus Sell weaned
range Combination pasture supplement "Feedlot" calves @G$0.30/lb.
Income --------------------------------G$---------------------------------------------
Income
Improved pasture 27,506 26,010 35,613 24,513 12,249 4,145
Native range 22,640 24,064 25,932 20,716 18,714 10,424
Combination 36,582 34,859 43,618 33,526 22,814 15,295
Total capital
Improved pasture 442,719 454,102 420,724 420,352 415,289 361,675
Native range 257,398 273,442 247,275 247,103 244,773 220,096
Combination 375,518 406,555 355,933 355,602 351,094 303,355
Annual capital
Improved pasture 407,101 437,666 386,551 376,382 365,421 334,787
Native range 244,792 258,860 235,334 230,653 225,608 211,508
Combination 349,802 377,018 331,505 322,450 312,690 285,413
Interest charge on annual capital not deducted. Represents return to management and capital.


"Combination" refers to a
Mar. 14.


program involving native range Mar. 15-Sept.14 and improved pasture Sept. 15-








total capital and annual capital requirements for the various cow-calf
fattening alternatives under the Boyd et al assumption as to pasture
costs. Table 15 combines the Boyd et al assumption on pasture costs
with the assumption that fencing is not required on native range
pastures and presents the net income (no charge for interest, management
or overhead), total capital and annual capital requirements under this
assumption. Table 16 presents the percentage return to required annual
capital represented by the net income figures in Tables 4, 13, 14 and
15. As indicated in Table 16, the Boyd et al assumption, alone or in com-
l bination with the assumption of no fence on native range, serves to

Increase the return from alternatives involving improved pasture. Due
to the lower required annual capital, alternatives involving a cow-calf
4 operation on a combination of native range and improved pasture yield
Sa higher return than those involving a cow-calf herd on improved pasture.
1 In the most optimistic situation, involving a combination of the Boyd
wo et al and no fence on native range assumptions, alternatives involving
., a cow-calf herd on a combination of native range and improved pasture
yield the highest returns (with the exception of fattening on
w "combination," where cow-calf on native range yields a slightly higher
return) while alternatives involving a cow-calf herd on native range
yield the next highest returns. While the Boyd et al assumption allows
alternatives involving a cow-calf herd on improved pasture to yield
Positive net returns, the increased annual capital requirements keeps
Sthe return to these alternatives below that for the other cow-calf
operations.
Under all of the assumptions made here as to pasture and
fencing costs, those alternatives involving use of at least some native
range pasture for the cow-calf herds are more profitable and yield a
higher return to annual capital than do those in which the cow-calf
'erd is maintained on improved pasture alone. As for the fattening
alternatives, they are all preferable to selling weaned calves at
$0.30 per pound. The alternatives involving fattening on native
range or on improved pasture yield similar returns under most cow-calf
programs and are generally preferable to other fattening alternatives
though yields from fattening in a "combination" program or on
roved pasture plus supplement are only slightly lower. All of the




Table 15.--Annual net incomesa, total capital and annual capital requirements for alternative cow-calf-
fattening operations based on a 600-cow cow-calf herd with pasture establishment costs of G$105
per acre, pasture maintenance costs of G$35 per acre, no fencing on native range pastures and
creeks used for watering cattle on native range


Improved pasture
Native range
Combination
Total capital
Improved pasture
Native range
Combination
Annual capital
Improved pasture
Native range
Combination
aInterest charge


30,674 27,263 35,613 24,513 12,249 4,145
25,388 25,931 26,682 22,006 20,004 11,714
40,589 37,161 44,804 34,712 32,108 16,481


376,284
199,730
291,458


342,252
188,498
267,747
on annual


"Combination" refers to a
Mar. 14.


427,785
234,239
358,216


420,724
220,185
331,027


411,977 386,551
220,591 208,889
329,830 307,192
capital not deducted. Represents


420,352
220,013
330,696


376,382
204,208
298,137
return to


415,289 3
217,683 1'
326,188 2


365,421 3
199,163 1
288,381 2
management and capital.


61,675
93,006
78,419


34,787
85,063
61,100


program involving native range Mar. 15-Sept.14 and improved pasture Sept.15-




Table 16.--Annual net income (no charge for interest, management or overhead) as a percentage return to
annual capital under four different assumptions as to fencing and improved pasture costs as
represented in Tables 4, 13, 14 and 15


Item by type of Fattening program
cow-calf operation Native Improved Improved plus Sell weaned
range Combination pasture supplement "Feedlot" calves @G$0.30/lb.
----------------------------Percent-----------------------------------------------
Table 4 figures-initial assumptions as to fencing and pasture costs
Improved pasture a a a a a a
Native range 9.3 5.1 8.0 7.4 8.3 4.9
Combination 2.6 a 0.2 a a a
Table 13 figures-no fencing on native range pastures
Improved pasture a a a a a a
Native range 13.5 6.9 9.7 9.0 10.0 6.3
Combination 5.2 a 0.7 a 1.6 a
Table 14 figures-Boyd et al assumption as to improved pasture costs
Improved pasture 6.8 5.9 9.2 6.5 3.4 1.2
Native range 9.3 9.3 11.0 9.0 8.3 4.9
Combination 10.5 9.3 13.2 10.4 7.3 5.4
Table 15 figures-combination of.Boyd et al and no fence on native range assumptions
Improved pasture 9.0 6.6 9.2 6.5 3.4 1.2
Native range 13.5 11.8 12.8 10.8 10.0 6.3
Combination 15.2 11.3 14.6 11.6 11.1 6.3
aNet income not positive.








returns presented in Table 16 are dependent on the validity of the
assumptions employed and, additionally, on the assumption of competent
management and adequate technical assistance.
By an appropriate system of price subsidies and/or taxes (the
simplest involving merely fixing the relative price structure so as to
obtain the desired results), the Government of Guyana can encourage the
establishment of farms involving the enterprise combinations as listed
in Tables 5, 7, 10 and 11. This study is not concerned with developing
fattening operations on the coast of Guyana and operations involving
the sale of feeder calves are not considered further. Table 17 lists
the output of production units involving peas and peanuts; peas and
corn; peas and soybeans; and beef cattle on native range.


Table 17.--Annual outputs of production units involving different enter-
prise combinations in the Intermediate Savannahs, Guyana


Production unit
Output item Beef cattle on
Pea-peanut Pea-corn Pea-soybean native range
e------------------------Pounds------------------------
Pigmented -
Vigna peas 445,900 445,900 445,900 0

Peanuts
unshelledd) 950,400 0 0 0

Corn 0 1,056,000 0 0
Soybeans 0 0 663,600 0

Beef (live-
weight) 0 0 0 159,536


Comparing the production estimates in Table 17 with the 1970
imports in Table 9 indicates that seven production units involving
corn, two involving peanuts and 30 units involving soybeans are
enough to offset 1970 imports of these and substitute commodities.
These 39 units will also produce 17,390,100 pounds of pigmented Vigna
peas, a surplus over requirements to meet imports of 8,908,900 pounds.
The 39 production units will require 15,210 acres of land, or 8.8
percent of the 172,800 acres assumed to be available for development.


______________________________







The remaining 157,590 acres, if developed as cattle production units
involving native range pastures alone, will support five ranches of
29,000 acres each and will produce 797,680 pounds (liveweight) of beef
annually. This production will reduce the required beef imports to
3,424,520 pounds (liveweight) annually. Table 18 summarizes the
production potential of the Intermediate Savannahs as outlined above.


Table 18.--Production potential of the Intermediate Savannahs under a
development scheme involving 39 crop units (7 involving corn,
2 involving peanuts, 30 involving soybeans) and 5 involving
beef production on native range

Item Amount
Income G$3,342,150
Crops
Vigna peas 17,390,100 lbs.
Peanuts 1,900,800 lbs.
Soybeans 19,908,000 lbs.
Corn 7,392,000 lbs.
Livestock
Production units 5 units
Beef production (liveweight) 797,680 lbs.
Annual labor hours
Skilled 69,500 hours
Unskilled 55,720 hours
Annual capital required G$6,898,687
Total capital required G$8,999,741
aNet of production costs and a 9.5 percent charge on annual capital.


While the production potential of the Intermediate Savannahs of
Guyana is not unlimited, given competent management, adequate technical
assistance, capital availability and necessary tenure arrangements, it
is enough to reduce and/or eliminate imports (as of 1970) of corn,
soybeans, peanuts and beef. At the same time, the Intermediate
Savannahs can produce quantities of pigmented Vigna peas in excess of
those required to eliminate 1970 imports. By referring to Tables
5, 7, 10 and 11, any number of development schemes can be generated,







depending on over-all production goals and capital availability. All
of these schemes will be dependent on the assumptions as to product and
input prices and yields inherent in the Tables of Appendices I and II.
In turn, the yield assumptions made in the Appendix Tables rely on the
availability of competent management and reliable technical assistance.
By encouraging the industries involved in providing agricultural inputs,
government may be able to reduce input prices, thus enhancing prospects
for development. Similarly, by encouraging the development of an
efficient agricultural marketing sector, agricultural product prices
may increase or at least fail to decline as a result of increased
production. Separate studies are recommended for the agricultural
input and product marketing sectors. Capital availability and
adequate tenure arrangements are areas that will require the
cooperation of the financial sector and straightforward government
policies.


SUMMARY, CONCLUSIONS AND RECOMMENDATIONS


The objective of this study was to define production units for the
Intermediate Savannahs of Guyana, involving all or some combination of
corn, peanuts, soybeans, Vigna peas and beef cattle, that minimize
required annual capital while attaining specified income levels.
Enterprise budgets for crops and alternative beef cattle systems were
developed with the limited information available from crop and live-
stock research in Guyana by University of Florida personnel as well as
budgets prepared for similar areas of Florida and interviews with
Guyana equipment dealers and agriculturists. These budgets were
employed in a linear programming model to determine a crop system
(Table 5) and a livestock system (Table 7) that satisfied the objective.
Subsequently, price assumptions were relaxedllto determine alternative




11he effect of varying prices in the linear programming model is to
alter the net revenues (per unit of enterprise) which enter the income
equation. Net revenues may be altered by productivity changes as well
so that a given change in net revenue may be interpreted as the result
of a productivity change or a price change, even when affected by the
latter.








systems that satisfied the objective under different price and/or
productivity assumptions. The results of this process indicated that
slight changes in the productivity per acre or price of soybeans and corn
result in production units that contain either soybeans, corn or peanuts in
conjunction with Vigna peas, which were highly stable in the solution.
Assumptions regarding investment in alternative beef systems were
varied to create systems involving use of unfenced native range and
improved pasture based on different establishment and maintenance costs.
The results indicated that, if native range need not be fenced and the
Boyd et al assumptions as to improved pasture costs are accepted, cow-
calf operations will be conducted on a combination of native range and
improved pasture rather than on native range alone as in the original
problem solution. Calves are fattened to slaughter weight on native
range or improved pasture, depending on the assumptions employed.
The productive potential of the available grasslands of the
Intermediate Savannahs in terms of return to management, overhead costs
and owner equity (in excess of 9.5 percent of annual capital) as well
as crop and livestock production was indicated for development by 39
production units involving crops and 5 production units involving live-
stock on native range (Table 18). In addition, the annual labor
requirements for skilled and unskilled workers and the annual and total
capital required was estimated for the development scheme (Table 18).
The crop systems developed in this study required approximately two
full-time workers per unit: one working manager and one skilled equip-
ment operator. The livestock system requires four unskilled laborers
plus a working manager.
If the estimated price and productivity relationships employed in
this study can be realized, the Intermediate Savannahs can make a
significant contribution toward reducing and/or eliminating imports of
corn, peanuts, soybeans, peas and beef similar to the import levels
attained in 1970. Additional quantities of some commodities, especially
peas, can be produced and used for expanding domestic per capital
consumption or for export. Labor requirements are approximately 105
full-time employees (including working managers) for the 39 crop units







12
and 5 livestock units .
Although this study concludes that the Intermediate Savannahs of
Guyana can be profitably developed (given the price and productivity
information on which these conclusions are based), the success of such
development depends to a large extent on factors external to this
study. The nature of the developing firm units (e.g. private firms,
cooperatives, state farms, etc.) is likely to be critical. Unless a
production unit can be directed by a skilled manager with a minimum of
bureaucratic control, the unit is likely to be unprofitable and result
in failure. Unless competent, timely technical assistance is provided,
at least during the early stages of development, then development
efforts are likely to prove unfruitful. If satisfactory tenure
arrangements are not provided to private investors, they are unlikely
to be willing to risk their capital in order to develop production
units in the area. Unless financially sound investors can be attracted
to the area on a long-term basis, the area is likely to remain
undeveloped. If private foreign capital is required to develop the
area, repatriation of investment funds plus a competitive profit (i.e.
a profit at least as great as can be earned elsewhere) must be
guaranteed.
The recommendation of this study is that the Government encourage
some of the larger, domestic, agriculture-oriented firms (such as
Bookers, Ltd. or Sandbach-Parker, Ltd.) to set up pilot farms either
independently or in partnership with government in the Intermediate
Savannahs. The budgets developed in this study can be used, with
necessary and appropriate modifications, to generate dynamic farm
plans that schedule farm development over time. However, the Govern-
ment of Guyana must furnish these pioneering developers with incentives
such as long-term leases or outright freehold title to the required
land and freedom from import duties on agricultural inputs. In return,
the Government should expect these pioneering developers (providing
they are successful) to share their newly-acquired technical expertise




12These estimates are for farm labor only and do not include employ-
ment generated in ancillary industries.




41

with later, perhaps less well-qualified settlers. In addition, the
normal process of labor turn-over should produce qualified managers and
skilled laborers for later crop-livestock developments. If a spirit
of friendly cooperation between Government and private enterprise can
be developed, then the production potential of the Intermediate
Savannahs as described in this study can be realized. The final choice
rests in the hands of the policy-makers of the Government of Guyana.








REFERENCES


[1] Anderson, C. L. and T. S. Hipp. "Cow-Calf Enterprise Budgets on
Flatwood Soils in Florida (costs and returns)." Unpublished
manuscript, Food and Resource Economics Department, IFAS,
University of Florida. Gainesville: November 1971.

[2] "Annual Report of the University of Florida, Institute of Food and
Agricultural Sciences: Contract between the Government of
Guyana and the University of Florida." Gainesville: March 31,
1971.

[3] Boyd, H. F., J. R. Dickey, and B. R. Eddleman. Estimated Resource
Requirements, Costs and Returns for Five Beef Production
Alternatives in the Intermediate Savannahs of Guyana. Joint
mimeo report, Department of Animal Science, Agricultural Economics
Department and Center for Tropical Agriculture, IFAS, University
of Florida. Gainesville: October 1971.

[4] Buck, Wilbur F. Agriculture and Trade of the Caribbean Region:
Bermuda, The Bahamas, The Guianas and British Honduras. U.S.
Dept. of Agr. ERS-Foreign 309. Washington, D. C.: U. S.
Government Printing Office, 1971.

[5] "Contract between the Government of Guyana and the University of
Florida" (signed by representatives of both agencies with
subsequent amendments and Task Orders). Georgetown, Guyana:
July 19, 1968 (effective date of original contract).

[6] "Country 206, Station 6301 [Ida Sabina], 17 Years of Data--1949-1950,
1952-1966," Xeroxed computer output from Project 461, Department
of Meteorology, Texas A & M University. College Station, Texas:
May 10, 1968.

[7] Economic Bulletin No. 5. Georgetown, Guyana: Bank of Guyana,
October 1971.

8] Eddleman, B. R. and Neil L. Meyer. Minimum Land Requirements for
Specified Income Levels, Lower Sinu River Valley of Columbia.
University of Florida Agricultural Economics Report 30. Gainesville:
September 1971.

9] Elmer, Carl W. "Report of Meat Packing and Hide Specialist."
Georgetown, Guyana: Council for International Progress in
Management (USA) Inc., 1968.

0] Gass, Saul I. An Illustrated Guide to Linear Programming. New York:
McGraw-Hill, Inc., 1970.

1] Guyana Handbook 1971-1972: Commerce, Industry, Tourism. Georgetown,
Guyana: Guyana Manufacturers Association, n. d.








[12] Hinson, Kuell. Jupiter A New Soybean Variety for Tropical
Latitudes. Univ. of Fla. Agr. Exp. Sta. Circular S-217.
Gainesville: June 1972.

[13] Mayers, J. M. "An Economic Study of Ebini Livestock Station,
Guyana." Working Paper, Department of Agricultural Economics
and Farm Management, the University of the West Indies. St.
Augustine, Trinidad: March 1969.

[14] Meyer, Neil Larry. "Minimum Resource Requirements for Specified
Levels of Income on Crop-Livestock Farms in the Sinu River Valley
of Columbia." Unpublished M. S. thesis, University of Florida,
1969.

[15] Ministry of Agriculture, Government of Guyana. Revised Target
Needed to Offset 1970 Imports of Food Items.... Mimeo report.
Georgetown, Guyana: n. d.

[16] Norden, A. J., H. A. D. Chesney, and A. P. Stephenson. Altika:
A Peanut Variety for the Tropics (Guyana). Univ. of Fla. Agr.
Exp. Sta. Circular 215. Gainesville: January 1972.

[17] U. S. Economic Research Service. Indices of Agricultural Production
for the Western Hemisphere Excluding the United States and Cuba.
U. S. Dept. of Agr. ERS-Foreign 264. Washington, D. C.: U. S.
Government Printing Office, 1972.
































APPENDIX I

General Input and Output Data
for Enterprise Budgets






Table I.l.--Product and input prices used in preparing crop and live-
stock enterprise budgets for the Intermediate Savannahs,
Guyanaa

Item Unit Price
G$
Product Prices

Crops

Corn lb. .06
Peanuts unshelledd) lb. .15
Soybeans lb. .125
Vigna peas (pigmented) lb. .25

Livestock

All lb. .30

Crop Inputs

Seeds

Corn lb. .90
Peanuts lb. .65
Soybeans lb. .20
Vigna peas (pigmented) lb. .93

Fertilizers

Limestone ton 54.00
Urea ton 200.00
lb. 0.09
Sulphate of ammonia ton 110.00
lb. 0.05
Triple superphosphate ton 210.00
lb. 0.10
Muriate of potash ton 137.00
ton 0.06
Trace elements (boron, zinc, iron,
copper, manganese) lb. 0.47
Gypsum ton 81.00
Sulphate of potash lb. 0.08
ton 160.00

Insecticides

Dipterex lb. 2.46
Sevin (5%) lb. .28
Sevin (10%) and copper-sulphur lb. .54


Continued





46

Table I.l.--Product and input prices used in preparing crop and live-
stock enterprise budgets for the Intermediate Savannahs,
Guyanaa--Continued


Item IUnit Price


Weedicides


Lasso


Fungicides

Antracol
Copper-sulphur

Livestock Inputs


Minerals
Molasses
Copra meal
Rice bran
Urea


1.31
0.23


0.10
0.02
0.039
0.03
0.09


Fuel (diesel)

Labor (semi-skilled equipment operators)


Labor (unskilled)

Fencing

Canals and crushes


Dips


Scales

Wells


Windmills

Troughs

Water
Feed
Mineral


Continued


gal.

hour

hour

mile

set

each

each

each

each


0.61

1.00

0.70


600.00


3,000.00

2,000.00

1,500.00.

1,500.00

1,000.00


each
each
each


100.00
30.00
30.00


G$


0.62








Table I.l.--Product and input prices used in preparing crop and live-
stock enterprise budgets for the Intermediate Savannahs,
Guyanaa--Continued

Item Unit Price
G$
Ranch Buildings

Barns and Sheds sq.ft. 3.00
Bunk house sq.ft. 5.00
Ranch house sq.ft. 10.00

Expendable tools and equipment setb 3,000.00

Saddlery set 400.00

Livestock

Horses animal 600.00
Breeding cows animal 250.00
Bulls animal 400.00


aAll prices are in Guyanese dollars (G$2.00 =
delivery to the Intermediate Savannah area as of


US$1.00) and include
May, 1972.


bIncludes'hand tools, brands, veterinary equipment, etc. for a
600-cow herd.










Table I.2.--Expected crop yields and estimated days from planting to maturity for selected crops in the
Intermediate Savannahs, Guyana

Crop Yield per acre Time from planting to
maturity
Long rainy season Short rainy season Days
---------------.Lbs.------------------

Corn 3,000 2,500 120-140a


Soybeans 1,800 1,500 110


Peanuts unshelledd) 2,700 .2,000 120


Vigna peas (pigmented) 800 1,300 75



a"Charity"variety matures about three weeks later than the improved, hybrid varieties.
















Table I.3.--Estimated production coefficients for cow-calf operations
in the Intermediate Savannahs, Guyana

Production item Pasture Program
Improved Native Improved, Sept. 15 Mar. 14
Native, Mar. 15 Sept. 14


Stocking rate (Ac/cow)

Native 0 20 10
Improved 1.5 0 .75


Minerals (Ibs./hd.) 46 92 69


Calving percentage 80 60 75


Survival percentage 95 80 95


Weaning percentage 76 48 71


Weaning weights (Ibs.) 375 250 350


Annual Adult Mortality
(percent) 3 6 4


Cull breeding.cows
(percent) 10 10 10


aA complete mineral supplement is available on a free-choice.basis at
all times.




Table I.4.--Estimated production coefficients for growing-fattening operations in the Intermediate
Savannahs, Guyana

Production item Native Native range Mar. 15-Sept. 14 Improved Improved "Feedlot" "Feedlot"
Range Improved pasture Sept. 15- pasture pasture from from
Mar. 14 plus improved native
supplement pasture range

Daily Gains (Ibs.)

Bulls .4a .7a 1.3 1.5 1.5 1.7
Heifers .4 .7 1.1 1.3 1.3 1.5

Annual Mortality
(percent) 6 .4 3 3 3 3

Stocking rates
(ac./animal)
Improved 0 .75 1.0 0.5 0 0
Native 20 10 0 0 0 0

Feeding rates
(lbs./animal/yr.)
Molasses 0 0 0 720 3,161 3,153
Copra meal 0 0 0 1,382 1,399 1,417
SRice bran 0 0 0 22 0 0
Urea 0 0 0 9 22 22
Minerals 92 69 46 46 46 46

Days Fed .1,460 730 365 365 365 365

Weight gain after
weaning (Ibs.)
Bulls 584 511 475 548 548 621
Heifers 584 511 402 475 475 548




Table I.5.--Estimated days available for equipment operation by months and seasons in the Intermediate
Savannahs, Guyana

Short dry season Long wet season Long dry season Short wet season
tem (90 days) (125 days) (90 days) (60 days)
Feb. Mar. Apr. May June Jul. Aug. Sep. Oct. Nov. Dec. Jan.


Days (10 hours)a 22.3 21.8 22.3 15.4 14.7 16.9 21.0 24.3 24.0 22.0 19.5 20.0


aThe assumption was made that if two or more inches of rain fell during any five-day period the period
was lost for equipment operation.. Based on a study of 17 years of weather data from Ida Sabina, the
expected number of days available for equipment operation in each five-day period was calculated by
(1) assuming a six-day week and thus 4.3 work days per five-day period and (2) multiplying this result
by one minus the probability of receiving at least two inches of rainfall during any five-day period.













Table 1.6--Power requirements in machine hours per acre for crops by
month and season in the Intermediate Savannahs, Guyana



Month Corn Soybeans Peanuts Vigna peas
Long Short Longa Shorth Longa Shorts Longa Shortb

-------------------Hours per acre-------------

Feb. .40 .40 .40 .17 .40 .48d

Mar. .55 .38c .65 .48d .55 1.5e .55

Apr. .21 .21 .21 .21

May .17 .17

June .22 .22 .22 .22

July .17 .17 .17 .17

Aug. .48d .48d

Sept. .38c 1.5e

Oct. .70 .70 .70 .70

Nov. .46 .46 .46 .46

Dec. .22 .22 .17 .39

Jan. .17 .17 .22 .17


aLong wet season crop.
Short wet season crop.
c.19 combine hours and 0.19 tractor hours.

0.24 combine hours and 0.24 tractor hours.
eRequires 3 tractors for 0.5 hours each. Assume two tractors are
borrowed or rented.














Table I.7.--Labor requirementsa in hours per acre for crops by month
and season in the Intermediate Savannahs, Guyana

--I --I I


-------------Hours per acre-

.48 .48

.66 .46 .66 .58

.50 .50


.48

.66

.50

.20

.53

.20


.20

1.8


.48

.66

.50

.20

.53

.20

.58


1.8


.84

.80

.53

.20


.84

.80

.53

'.20


Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.


aCalculated on the basis of 1.2 labor hours per machine hour.
Long wet season crop .
CShort wet season crop *


---------------


I




Table I.8.--Improved pasture (pangola): Estimated production requirements and maintenance costs per acre
for pasture renewed every five years in the Intermediate Savannahs, Guyana


Item Description Unit Price or cost Quantity Value or
I-I __I per unit I I cost


Discing



Plowing


Planting sprigs


Mowing


Lime


50 60 HP tractor and 8.5'
tandem disc with operator
(twice over)
50 60 HP tractor and 4-disc
plow with operator
Mowing (50 60 HP tractor
and 9' mower with operator),
raking, transporting and
spreading to be disced in
50 60 HP tractor and 9'
mower with operator. Performed
twice during first year to help
establish and annually there-
after.


Applied every five years
prior to discing


Fertilizers


Triple
super-phosphate


Urea


Sulphate of potash


Initial application of 0.5
ton/acre with four subsequent
applications of 250 lb/acre
Applied in five equal size
applications
Applied in five equal size
applications


G$


4.66

4.63


0.50

0.70


1.0





1.32

1


acre





hr.

ton


2.33

3.24


30.00





8.07

54.00


30.00





6.11

54.00


210.00

200.00

160.00


ton


210.00

50.00

40.00


Continued


--


9.




Table I.8.--Improved pasture (pangola): Estimated production requirements and maintenance costs per acre
for pasture renewed every five years in the Intermediate Savannahs, Guyana--Continued

Item Description Unit Price or cost Quantity Value or
per unit cost
Lime and fertilizer
application .50 60 HP tractor and 12'
bulk applicator with operator
and assistant
(11 applications in total) hr. 5.79 1.87 10.83

Total specified cost 408.47








Table I.9.--Total investment, salvage value,.expected life, and esti-


Initial salvage Expected
Item value (12 Use/yr.
cost life Useif
yr. life)


G$ G$ Hrs. Hrs/yr.
Tractor (60HP) 10,000 3,000 12,000 1,000
Plow (4 disc) 1,425 228 2,500 208
Disc (8.5 ft. tandem) 1,620 259 2,500 208
Tractor mounted 4-row
planter, incl. tool bar 4,400 748 1,200 100
Frontmounted fertilizer
dist. (4-row) 2,000 340 1,200
Lilliston rolling
cultivator 3,000 510 2,500 208
Bulk fert. (dry material) 2,000 340 1,200 100
Trailer (2 wheel suspended
3-1/2-ton dump) 2,200 374 5,000 417
Combine (MF 520) 37,500 7,500 2,000 167
Self-propelled grain
head (14') 5,000 1,000 2,000 167
Self-propelled corn
head (6-row) 14,000 2,800 2,000 167
Rotary mower (9') 3,600 300 2,000 167
Peanut digger-shaker
(2-row) 2,400 480 2,000 167
Peanut thrasher 13,500 2,700 2,000 167
a
Estimates based on local (Guyana) equipment prices and parameters and
Agricultural Engineers' Yearbook: 1969.
An hourly rate for these fixed costs was attained by multiplying
and 5 percent for insurance, housing, and taxing) and dividing the result









mated costs for machinery in Guyanaa

Repair cost Capital Repair Hourly housing,
as % of re./hr. Dep./hr. cost/hr insurance, taxes
initial cost & interest
% G$ G$ G$ G$
120 0.83 .58 1.00 .09
120 0.57 .48 .68 .06
120 0.65 .54 .78 ..07

110 3.67 2.88. 4.03 .37

120 1.67 .83 2.00 .18

120 1.20 1.00 1.44 .12
120 1.67 1.38 2.00 .17

100 0.44 0.37 0'.44 .05
60 18.75 15.00 11.25 1.87

60 2.50 2.00 1.50 0.25

100 7.00 5.60 7.00 0.70
120 1.80 1.65 2.16 0.18

100 1.20 0.96 1.20 0.12
60 6.75 5.40 4.05 0.68
from the "Farm Machinery Costs and Use" section ASAE 0230.1 of the

initial cost of the machine times 10 percent (5 percent interest charge
by the expected life in hours.































APPENDIX II

Crop and Livestock Enterprise Budgets




Table II.1.--Corn:
Guyana


Estimated production requirements and income per acre for the Intermediate Savannahs,


Price
Item Description Unit or cost Quantity value or
per unit


(1) Total income Shelled corn (long rainy season) lb. .06 3,000 180.00
(short rainy season) lb. .06 2,500 150.00
(2) Variable costs
Plowing 50-60 HP tractor and 4-disc plow
with operator hr. 4.63 0.70 3.24
Discing 50-60 HP tractor and 8.5' tendem
disc with operator hr. 4.66 0.25 1.17
Planting 50-60 HP tractor and 4-row
planter-fert. distributor with
operator and assistant hr. 8.75 0.21 1.84
Side-dress &
cultivate 50-60 HP tractor and 4-row fert.
distributor & rolling cultivator
with operator & assistant hr. 8.23 0.22 1.81
Cultivate 50-60 HP tractor and 4-row
rolling cultivator with operator hr. 5.39 0.17 0.92
Dusting Application by pass 1.70 1 1.70
Spraying airplane pass 1.70 2 3.40
Harvest Self-propelled combine (MF 520)
and corn head with operator hr. 21.20 0.19 4.03


Continued




Table II.1.--Corn: Estimated production requirements
Guyana--Continued


and income per acre for the Intermediate Savannahs,


Price
Item Description Unit or cost Quantity Value or
per unit cost


Transport to 50-60 HP tractor and 3-1/2-ton
dryer or custo- suspended dump trailer
mer's trucks
(5 mile round
trip from field)
Seed 12,000 plants/acre @ 80% germi-
nation & 1,500 seed/lb.


Fertilizers


Insecticides
Dust
Spray
Lime

Fungicides


Urea (46% N)
Sulphate of ammonia
Triple superphosphate
Muriate of potash
Trace elements


Sevin (5%)
Dipterex
Rate of one ton applied
every five years
Antracol


4.25





0.90
0.09
0.05
0.10
0.06
0.47


lb.
lb.


acre


Land rent
Total variable costs
(3) Unallocated fixed
cost per crop Positioning of airplane


pass


0.28
2.46

54.00
1.31
0.25


0.19





10
100
315
217
130
17


50
5

0.2
2
1


150.00


0.81





9.00
9.00
15.75
21.70
7.80
7.99


14.00
12.30

10.80
2.62
0.25

130.13

450.00


Continued




Table II.1.--Corn: Estimated production requirements and income per acre for the Intermediate Savannahs,
Guyana--Continued


(4) Barns & sheds Pole barn sq. ft. 3.00 3,333.33 10,000.00


(5) Total machinery
capital required
(6) Return in excess
of variable costs Long rainy season
Short rainy season


78,145.00


49.87
19.87




Table II.2.--Soybeans: Estimated production requirements
Savannahs, Guyana


and income per acre for the Intermediate


Price ,Value or
Item Description Unit or cost Quantity cost
per unit


(1) Total income

(2) Variable costs
Plowing

Discing


Planting


Side-dress &
cultivate



Cultivate

Dusting
Spraying
Harvest


Soybeans (long rainy season)
(short rainy season)


50-60 HP tractor and 4-disc plow
with operator
50-60 HP tractor and 8.5' tandem
disc with operator
50-60 HP tractor, 4-row planter
& fertilizer distributor with
operator & assistant

50-60 HP tractor and 4-row
fertilizer distributor with
operator & assistant
50-60 HP tractor and 4-row
rolling cultivator with operator
Application by airplane
Application by airplane
Self-propelled combine (MFS 20)
and grain head with operator


Continued o


.125
.125


hr.

hr.



hr.


hr.

hr.
pass
pass

hr.


1,800
1,500


0.70

0.25



0.21


0.22

0.17
2
2

0.24


4.63

4.66



8.75


8.23

5.39
1.70
1.70

15.70


225.00
187.50


3.24

1.17



1.84


1.81

0.92
3.40
3.40

3.77





Table II.2.--Soybeans: Estimated production requirements
Savannahs, Guyana--Continued


and income per acre for the Intermediate


Price
Value or
Item Description Unit or cost Quantity cost
per unitcost
per unit


Transport to
dryer or cust-
omer's trucks
(5 mile round
trip from field)
Seed
Inoculation
Fertilizers




Lime


Insecticides
Dust
Spray
Land rent


50-60 HP tractor and 3-1/2-ton
suspended dump trailer
Soybean seed (Jupiter variety)
Soybean inoculation
Triple superphosphate (45% P205)
Muriate of potash (60% K20)
Sulphate of ammonia (20.5% N)
Trace elements
Applied at the rate of one ton
every five years


Sevin (5%)
Dipterex


Total variable costs


(3) Unallocated fixed
cost per crop


Positioning of airplane


hr.
lb.


dose
lb.
lb.
lb.
lb.

ton


lb.
lb.
acre


0.24
75
1
244
400
73
15

0.2


4.25
0.20
.50
0.10
0.06
0.05
0.47

54.00


0.28
2.46
0.25


1.02

15.00
.50
24.40
24.00
3.65
7.05

10.80


22.40
12.30

0.25
140.92

600.00


.pass


150.00


Continued





Table II.2.--Soybeans: Estimated production requirements and income per acre for the Intermediate
Savannahs, Guyana--Continued


Price
Item Description Unit or cost Quantity value or
per unit
G$ G$
(4) Barns & sheds Pole barn sq. ft. 3.00 3,333.33 10,000.00
(5) Total machinery
capital required 69,145.00
(6) Return in excess Long rainy season 84.08
of variable costs Short rainy season 46.58





Table II.3.--Peanuts: Estimated production requirements and income per acre
Savannahs, Guyana


for the Intermediate


Price
Item Description Unit or cost Quantity V e o
per unit c


(1) Total income

(2) Variable costs

Plowing

Discing

Planting


Side-dress &
cultivate


Cultivate


Apply gypsum

Dusting
Harvest


Dig


Unshelled nuts (long rainy season)
(short rainy season)


50-60 HP tractor and 4-disc plow
with operator
50-60 HP tractor and 8.5' tandem
disc with operator
50-60 HP tractor, 4-row planter
& fertilizer distributor with
operator & assistant


50-60 HP tractor and 4-row
fertilizer distributor with
operator & assistant
50-60 HP tractor and 4-row
rolling cultivator with operator
50-60 HP tractor and 12' bulk
applicator
Airplane application


50-60 HP tractor and 2-row
digger shaker with operatora


Continued


G$
0.15
0.15


4.63

4.66


8.75


8.23

5.39

5.81
1.70


2,700
2,000


0.70

0.25


0.21


0.22

.34

0.11
9


0.50


G$
405.00
300.00


3.24

1.17


1.84


1.81

1.83

0.64
15.30


3.09


hr.

hr.

hr.
pass


6.18





Table II.3.--Peanuts:
Savannahs,


Estimated production requirements and income per acre
Guyana--Continued


for the Intermediate


Price
Price Value or
Item Description Unit or cost Quantity o
cost
per unit
G$ G$
Thrash 50-60 HP tractor and 2-row
thrasher with operator hr. 8.00 0.50 4.00
Transport to
dryer or cust-
omer's truck
(5 mile round 50-60 HP tractor and 3-1/2-ton
trip from field) trailer hr. 4.92 0.5 2.46
Seed Peanut lb. 0.65 80 52.00
Inoculation Pea-peanut inoculum dose 0.45 1 0.45
Fertilizers Sulphate of ammonia lb. 0.05 80 4.00
Sulphate of potash lb. 0.08 200 16.00
Triple superphosphate lb. 0.10 180 18.00
Trace elements lb. 0.47 20 9.40
Muriate of potash lb. 0.06 165 9.90
Gypsum lb. 0.04 800 32.00
Lime One ton every five years ton 54.00 0.2 10.80
Insecticides &
fungicides Sevin (10%) & Copper-sulphate dust lb. 0.54 180 97.20
Land rent acre 0.25 1 0.25
Total variable costs 285.38
(3) Unallocated fixed
costs per crop Positioning of airplane pass 150.00 6 900.00


Continued





Table II.3.--Peanuts: Estimated production requirements and income per acre for the Intermediate
Savannahs, Guyana--Continued

Price
Price Value or
Item Description Unit or cost Quantity ue o
per unit
G$ G$
(4) Barns & sheds Pole barn sq. ft. 3.00 3,333.33 10,000.00
(5) Total machinery
capital required 42,545.00
(6) Return in excess Long rainy season 119.62
of variable costs Short rainy season 14.62

aTractors obtained on custom basis at cost of G$1.67 per hour.
The assumption is made that extra tractors can be obtained on a custom basis during harvest season.





Table II.4.--Vigna peas (pigmented): Estimated production requirements and
Intermediate Savannahs, Guyana


income per acre for the


Price
Value or
Item Description Unit or cost Quantity c
per unit


(1) Total income

(2) Variable costs
Plowing

Discing

Planting


Side-dress &
cultivate



Cultivate

Dusting
Spraying
Harvest


Black-eyed peas: long rainy sea.
short rainy sea.


50-60 HP tractor and 4-disc plow
with operator
50-60 HP tractor and 8.5' tandem
disc with operator
50-60 HP tractor, 4-row planter
& fertilizer distributor with
operator & assistant

50-60 HP tractor and 4-row
fertilizer distributor with
operator & assistant
50-60 HP tractor and 4-row
rolling cultivator with operator
Application by airplane
Application by airplane
Self-propelled combine (MF 520)
and grain head with operator


Continued o0
Go


G.
.25
.25


800
1,300


4.63

4.66



8.75


G$
200
325


3.24

1.17



1.84


1.81

0.92
3.40
6.80


3.77


0.70

0.25



0.21


0.22

0.17
2
4

0.24


hr.

hr.
pass
pass


.hr.


8.23

5.39
1.70
1.70

15.70





Table II.4.--Vigna peas (pigmented): Estimated production requirements and
Intermediate Savannahs, Guyana--Continued


income per acre for the


Price
Price Value or
Item Description Unit or cost Quantity ue o
per unicost
per unit


Transport to
dryer or cust-
omer's truck
(5 mile round
trip from field)
Seed
Inoculation
Fertilizers




Lime


Insecticides
Dust


Spray
Land rent


50-60 HP tractor and 3-1/2-ton
suspended dump trailer
Vigna pea seed
Pea-peanut inoculum
Sulphate of ammonia (20.5% N)
Triple superphosphate (44.5% P2Os)
Sulphate of potash (50% K20)
Trace elements
One ton over a five year period


Sevin (5%)
Dipterex


Total variable costs


(3) Unallocated fixed
costs per crop


Positioning of airplane


4.25
.93
.45
0.05
0.10
.08
.47
54.00


0.24
25
1
80
180
160
20
0.2


dose
lb.
lb.
lb.
lb.
ton


lb.
acre


1.02
23.25
.45
4.00
18.00
12.80
9.40
10.80


22.40
24.60
0.25

149.92

900.00


0.28
2.46
0.25


pass


150.00


Continued




Table II.4.--Vigna peas (pigmented): Estimated production requirements and income per acre for the
Intermediate Savannahs, Guyana--Continued


G$ G$
(4) Barns & sheds Pole barn sq. ft. 3.00 3,333.33 10,000.00


(5) Total machinery
capital required
(6) Return in excess
of variable costs Long rainy season
Short rainy season


69,145.00


50.08
175.08





Price
Item Description Unit or cost Quantity value or
per unit


(1)








(2)


Total income
Calvesa

Cull cows
Cull heifers
Total
Initial invest-
ment
Fencing
Pens

Watering
equipment
Mineral boxes
Barns & sheds
Saddlery

Horses
Subtotal


head
head
head


G$





255.00
195.00


365
60
8


7 month old weaners at 375 Ibs/head
(63% bulls)
850 lb. cows
650 lb. heifers





Semi-suspended barbed-wire fence
Includes corrals & crushes, dip-
ping vat & scales

Well, windmill & four water troughs
Wooden
Pole barn with enclosed tool room
Saddle with blanket, bridle,
extra girth, rope, etc.
Trained working stock


set
each
sq.ft.

set
head


2,900.00
30.00
3.00

400.00
600.00


15,300.00
1,560.00
16,860.00


8.2 4,920.00

1 6,000.00


1
4
1,000


2,900.00
120.00

3,000.00

1,600.00
3,600.00

22,140.00


Continued


mile 600.00

set 6,000.00


Table II.5.--Estimated annual production requirements and income for a 600-cow unit cow-calf operation on
improved pasture in the Intermediate Savannahs, Guyana





Table II.5.--Estimated annual production requirements and income for a 600-cow unit cow-calf operation on
improved pasture in the Intermediate.Savannahs, Guyana--Continued


GB g cs G.
Breeding cows Brahma or Brahma-cross head 250.00 600 150,000.00


Brahma or Brahma-cross


head 400.00


Total initial investment


24 9,600.00
181,740.00


(3) Specified costs
Pasture maint-
enance


Labor


Minerals
Maintenance


Fencing
Buildings
Pens, watering
equipment, &
mineral boxes
Veterinary &
medicine


Pangola pasture renewed every
five years
General (unskilled)


Complete supplement


5% of establishment cost
General maintenance



5% of initial cost

Inoculations, worming, etc.


acre


80.69


man yr. 1,456.00
(2080 hrs)
lb. 0.10


mile


30.00


sq. ft. 0.25


set

head


1,201.5 96,949.04
4 5,824.00


36,846


8.2


1,000


451.00


0.50


3,684.60


246.00
250.00



451.00


400.50


Continued -j
fs


Bulls






Table II.5.--Estimated annual production requirements and income for a 600-cow unit cow-calf operation on
improved pasture in the Intermediate Savannahs, Guyana--Continued


Horse feed


Bull depreciation


2 pounds shelled corn per horse
per day
Cost less salvage value-adjusted
for death loss prorated over a
six-year useful life


Land rent
Total specified costs
(4) Specified dosts
less value of
cull cows and
heifers


sq. mi. 3.00


1.9


5.70
108,673.64


91,813.64


(5) Net specified cost
per calf produced
(6) Value of calves produced
at 0.30/lb.
(7) Value of cull cows & assumed
value of calves less specified
costs (May be considered a "return"
to managg-ment and capital)


251.54


41,062.50


-50,751.14


4,380


0.06



25.00


head


262.80



600.00


aExcluding 91 replacement heifers of which 78 enter the herd at 2.5 years of age. The average herd of
801 head includes 600 brood cows, 24 bulls, 90 1-year old replacement heifers and 87 2-year old replacement
heifers.




Table II.6.--Estimated annual production requirements and income
native range in the Intermediate Savannahs, Guyana


for a 600-cow unit cow-calf operation on


Price
Price Value or
Item Description Unit or cost Quantity cost
per unit

G$ G$


7 month old weaners at 250 lbs/
head (86% bulls)


Cull cows 750 lb. cows
Cull heifers 500 lb. heifers
Total
(2) Total initial investment
Fencing Semi-suspended barbed-wire fence
Pens Includes corrals & crushes, dip-
ping vat & scales


Watering
equipment
Mineral.boxes
Barns & sheds
Saddlery

Horses
Subtotal


head
head
head


225.00
150.00


mile 600.00

set 6,000.00


Well, windmill & water trough set
Wooden each
Pole barn with enclosed tool room sq.ft.
Saddle with blanket, bridle, extra
girth, rope, etc. set
Trained working stock head


2,600.00
30.00
3.00


-

13,500.00
1,500.00
15,000.00


31 18,600.00

1 6,000.00


4
4
1,000


400.00
600.00


10,400.00
120.00
3,000.00

1,600.00
3,600.00
43,320.00


Continued


(1) Total income
Calvesa





Table II.6.--Estimated annual production requirements and income for a 600-cow
native range in the Intermediate Savannahs, Guyana--Continued


unit cow-calf operation on


Price
Price Value or
Item Description Unit or cost Quantity value or
per unit

G$ GS
Breeding cows Brahma or Brahma-cross head 250.00 600 150,000.00
Bulls Brahma or Brahma-cross head 400.00 24 9,600.00
Total initial investment 202,920.00
(3) Specified costs
Labor General (unskilled) man yr. 1,546.00 4 5,824.00
(2080 hrs.)
Minerals Complete supplement lb. 0.10 78,108 7,810.80
Maintenance
Fencing 5% of establishment cost mile 30.00 31 930.00
Buildings General maintenance sq.ft. 0.25 1,000 250.00
Pens, watering
equipment &
mineral boxes 5% of initial cost set 826.00 set 826.00
Veterinary &
medicine Inoculations, worming, etc. head 0.50 849 424.50
Horse feed 2 lbs. shelled corn per day lb. 0.06 4,380 262.80


Continued






Table II.6.--Estimated annual production requirements and income for a 600-cow unit cow-calf operation on
native range in the Intermediate Savannahs, Guyana--Continued

Price
Price Value or
Item Description Unit or cost Quantity cost
per unit

G$ G$
Bull depreciation Cost less salvage value prorated
over six-year useful life, adjusted
for death head 32.00 24 768.00
Land rent sq. mi. 3.00 26.5 79.50
Total specified costs 17,175.60
(4) Specified costs less value
of cull cows and heifers 2,175.60
(5) Net specified cost per
calf produced 12.95
(6) Value of calves produced at 0.30/lb. 12,600.00
(7) Value of cull cows and heifers and
assumed value of calves less
specified costs (may be considered
a "return" to management and capital). 10,424.40

aExcluding 120 replacement heifers of which 96 enter the herd at 2.5 years of age. The average herd of
849 head is composed of 600 brood cows, 24 bulls, 116 1-year old replacement heifers and 104 2-year old
replacement heifers.





Table II.7.--Estimated annual production requirements and income for a 600-cow unit cow-calf operation on
improved pasture from Sept. 15 to Mar. 14 and native range from Mar. 15 to Sept. 14 in the
Intermediate Savannahs, Guyana


Price
Price Value or
Item Description Unit or cost Quantityue or
per unit


(1) Total income
Calvesa

Cull cows
Cull heifers
Total
(2) Initial investment
Fencing
Pens


Watering
equipment
Water troughs
Mineral boxes
Barns & sheds
Saddlery

Horses
Subtotal


7 month old weaners at 350 lbs./
head (66% bulls)
850 lb. cows
650 lb. heifers




Semi-suspended barbed-wire fence
Includes corrals & crushes, dip-
ping vat & scales

Well, windmill & water trough
Wooden
Wooden
Pole barn with enclosed tool room
Saddle with blanket, bridle, extra
girth, rope, etc.
Trained working stock


head
head
head




mile


325
60
9


oG_




255.00
195.00




600.00


set 6,000.00


set
each
each
sq.ft.

set
head


2,600.00
100.00
30.00
3.00


15,300.00
1,755.00
17,055.00


26.1 15,660.00

1 6,000.00


5
3
8
1,000


400.00
600.00


13,000.00
300.00
240.00
3,000.00

1,600.00
3,600.00
43,400.00


Continued






Table II.7.--Estimated annual production requirements and income for a 600-cow unit cow-calf operation on
improved pasture from Sept. 15 to Mar. 14 and native range from Mar. 15 to Sept. 14 in the
Intermediate Savannahs, Guyana--Continued


Breeding cows
Bulls
Total initial
(3) Specified costs
pasture main-
tenance

Minerals
Labor


Brahma or Brahma-cross
Brahma or Brahma-cross
investment



Pangola pasture renewed every
five years
Complete supplement
General (unskilled)


G$ G$
head 250.00 600 150,000.00
head 400.00 24 9,600.00
203,000.00


acre 80.69
lb. 0.10
man yr. 1,546.00
(2080 hrs.)


614
56,442
4


49,543.66
5,644.20
5,824.00


Maintenance
Fencing
Buildings
Pens, watering
equipment &
mineral boxes
Veterinary &
medicine
Horse feed


5% of establishment cost
General maintenance



5% of initial cost

Inoculations, worming, etc.
2 Ibs. shelled corn per horse
per day


mile
sq. ft.


set


head

lb.


30.00
0.25



677.00


0.50

0.06


26.1
1,000


set


818


4,380


783.00
250.00



677.00

409.00


262.80


Continued







Table II.7.--Estimated annual production requirements and income for a 600-cow unit cow-calf operation on
improved pasture from Sept. 15 to Mar. 14 and native range from Mar. 15 to Sept. 14 in the
Intermediate Savannahs, Guyana--Continued

Price
Item Description Unit or cost Quantity cost
per unit

.G$ G$
Bull depre- Cost less salvage value prorated
ciation over six-year useful life, adjusted
for death head 21.00 24 504.00
Land rent sq. mi. 3.00 13.7 41.10
Total specified costs 63,938.76
(4) Specified costs less value
of cull cows & heifers 46,883.76
(5) Net specified costs per
calf produced 144.26
(6) Value of calves at 0.30/lb. 34,125.00
(7) Value of cull cows & heifers &
assumed value of calves less
specified costs (may be considered
a "return" to management & capital) -12,758.76

a
Excluding 101 replacement heifers of which 84 join the herd at 2.5 years of age. The herd is composed
of 600 brood cows, 24 bulls, 99 1-year old replacement heifers and 95 2-year old replacement heifers or
818 animals on the average.





Table II.8.--Estimated annual production requirements and costs and returns
improved pasture in the Intermediate Savannahs, Guyanaa


per animal for fattening on


Price
Item Description Unit or cost Quantity cost
per unit


(1) Income from animals
produced by cow-
calf herds on:
Improved pasture
Bulls
Heifers


Native range
Bulls
Heifers
Native-improved
Bulls
Heifers
(2) Initial investment
Fencing
Watering
equipment
Mineral boxes
Total
Total/head


1.5 year old animals fattened
for 1.0 year adjusted for a
3% death loss


1.5 year old animals fattened
for 1.0 year adjusted for a
3% death loss
combination
1.5 year old animals fattened
for 1.0 year adjusted for a
3% death loss

Semi-suspended barbed-wire fence

Well, windmill & 4 water troughs
Wooden
350 animal herd


0.30
0.30


0.30
0.30


0.30
0.30


mile


600.00


set 2,900.00


each


30.00


824
753


703
632


800
729


247.20
225.90


210.90
189.60


240.00
218.70


4.4 2,640.00

1 2,900.00
4 120.00
5,660.00
16.17


Continued







Table II.8.--Estimated annual production requirements and costs and returns per animal for
improved pasture in the Intermediate Savannahs, Guyanaa--Continued


fattening on


(3) Specified costs
Net specified cost per calf
produced from cow-calf herds on:b
Improved pasture 375 1b. 7 month
Native range 250 lb. 7 month
Native-improved
combination 350 lb. 7 month
Pasture Pangola pasture
five years


Maintenance of
structures 5%
Minerals Com
Veterinary &
medicine Ino
Land rent
Total specified cost per
slaughter animal from
cow-calf herds on:
Improved pasture


old weaner
old weaner


old weaner
renewed every


of initial investment
plete supplement

culations, worming, etc.


Price
or cost
per unit

G$





251.54
12.95

144.26


80.69


0.81
0.10

0.50
3.00




338.15


Quantity


1
46


1
0.0015




1


head
head

head


acre


head
lb.

head
sq. mi.




head


Value or
cost


251.54
12.95

144.26


80.69

0.81
4.60


0.50
0.01




338.15


Continued


. _
I







Table II.8.--Estimated annual production requirements and costs and returns per
improved pasture in the Intermediate Savannahs, Guyanaa--Continued


head
head


Native range
Native-improved combination
(4) Total income less total specified
costs ("return" to management and
capital) per animal from cow-calf
herds on:
Improved pasture
Bulls
Heifers
Native range
Bulls
Heifers


Price
or cost
per unit
G$
99.56
230.87


animal for fattening on


Quantity


Value or
cost


G$
99.56
230.87


-90.95
-112.25


111.34
90.04


Native-improved combination
Bulls
Heifers


9.13


-12.17


aThe fattening operation is operated as an adjunct to a cow-calf operation and uses the buildings and
labor of that operation. Initial investment is prorated on the basis of an average herd of 350 animals.
bFrom Appendix Tables II.5-11.7.


1







Table II.9.--Estimated annual production requirements and costs and returns
native range in the.Intermediate Savannahs, Guyanaa


per animal for fattening on


Price
Price Value or
Item Description Unit or cost Quantity cost
sper unit
per unit


(1) Income from animals
produced by cow-calf
herds on:


Improved pasture



Native range



Native-improved
combination


(2) Initial investment
Fencing
Watering
equipment
Mineral boxes
Total
Total/head


4.5 year old animals fattened
for four years adjusted for a
cumulative death loss of 22%
4.5 year old animals fattened
for four years adjusted for a
cumulative death loss of 22%
4.5 year old animals fattened
for four years adjusted for a
cumulative death loss of 22%


Semi-suspended barbed-wire fence

Well, windmill & water trough
Wooden
600-animal herd


lb./yr.



lb./yr.



lb./yr.


mile


0.30



0.30


0.30


600.00


set 2,600.00


each


30.00


56.10



48.90



54.60


26 15,600.00


4 10,400.00
4 120.00
26,120.00
43.54


Continued







Table II.9.--Estimated annual production requirements and costs and returns per animal for fattening on
native range in the Intermediate Savannahs, Guyanaa--Continued


Price Value or
Item Description Unit or cost Quantity cost
per unit
G$ G$
(3) Specified costs
Net specified cost per calf
produced from cow-calf herds
on:b
Improved pasture 375 lb. 7 month old weaner head 251.54 1/4 yrs. 62.89
Native range 250 lb. 7 month old weaner head 12.95 1/4 yrs. 3.14
Native-improved
combination 350 lb. 7 month old weaner head 144.26 1/4 yrs. 36.07
Maintenance of
structures 5% of initial investment head 2.18 1 2.18
Minerals Complete supplement lb. 0.10 92 9.20
Veterinary &
medicine Inoculation, worming, etc. head 0.50 1 0.50
Land rent sq. mi. 3.00 0.03 0.09
Total specified cost per slaughter
animal from cow-calf herds on:
Improved pasture head 74.86 1 74.86


Continued







Table II.9.--Estimated annual production requirements and costs and returns
native range in the Intermediate Savannahs, Guyanaa--Continued


per animal for fattening on


Price
Price Value or
Item Description Unit or cost Quantity
per unit
G$ G$
Native range head 15.21 1 15.21
Native-improved
combination head 48.04 1 48.04
(4) Total income less total specified
costs ("return" to management.&
capital) per animal per year
from cow-calf herds on:

Improved pasture -18.76
Native range 33.69
Native-improved
combination 6.56

aThe fattening operation is operated as an adjunct to a cow-calf operation and uses the buildings and
labor of that operation. Fencing, watering equipment and mineral boxes are prorated on the basis of a
600-animal fattening herd (average size).
From Appendix Tables II.5-II.7.








Table II.10.--Estimated annual production requirements and costs and returns
native range Mar. 15 to Sept. 14 and on improved pasture Sept.
Intermediate Savannahs, Guyanaa


per animal for fattening on
15 to Mar. 14 in the


Price Value or
Item Description Unit or cost Quantity cost
per unit


(1) Income from animals produced
by cow-calf herds on:


Improved pasture


Native range



Native-improved
combination


(20 Initial investment
Fencing
Watering
equipment
Water trough
Mineral box
Total
Total/head


2.5 year old animals fattened
for two years adjusted for a
cumulative death loss of 8%
2.5 year old animals fattened
for two years adjusted for a
cumulative death loss of 8%
2.5 year old animals fattened
for two years adjusted for a
cumulative death loss of 8%


Semi-suspended barbed-wire fence

Well, windmill & water trough


lb./yr.


lb./yr.



lb./yr.


mile


0.30


0.30



0.30


600.00


set 2,600.00


each
each


Wooden


100.00
30.00


600-animal herd


408



381



396


122.40



114.30



118.80


22 13,200.00

5 13,000.00
3 300.00
8 240.00
26,740.00
44.57


Continued








Table II.10.--Estimated annual production requirements and costs and returns per animal for fattening on
native range Mar. 15 to Sept. 14 and on improved pasture Sept. 15 to Mar. 14 in the
Intermediate Savannahs, Guyanaa--Continued


(3) Specified costs
Net specified cost per calf
produced from cow-calf herds on:b


Improved pasture
Native range
Native-improved
combination
Pasture

Maintenance of
structures
Minerals
Veterinary &
medicine


375 lb. 7 month old weaner
250 lb. 7 month old weaner


350 lb. 7 month old weaner


Pangola pasture
five years


renewed every


5% of initial investment
Complete supplement

Inoculation, worming, etc.


Land rent
Total specified costs per
slaughter animal from cow-
calf herds on:
Improved pasture


1/2 yrs.
1/2 yrs.

1/2 yrs.


0.75


head
head

head

acre

head
lb.

head


251.54
12.95

144.26

80.69

2.23
0,10

0.50


125.77
6.48

72.13

60.52


2.23
6.90

0.50
0.05


195.97


sq. mi.


3.00


0.016


head


195.97


Continued







Table II.10.--Estimated annual production requirements and costs and returns per animal for fattening on
native range Mar. 15 to Sept. 14 and on improved pasture Sept. 15 to Mar. 14 in the
Intermediate Savannahs, Guyanaa--Continued

Price
Price Value or
Item Description Unit or cost Quantity cost
cost
per unit
G$ G$
Native range head 76.68 1 76.68
Native-improved
combination head 142.33 1 142.33
(4) Total income less total specified
costs ("return" to management &
capital) per animal from cow-
calf herds on:
Improved pasture -73.57
Native range 37.62
Native-improved
combination -23.53

aThe fattening operation is operated as an adjunct to a cow-calf operation and uses the buildings and
labor of that operation. Fencing, watering equipment and mineral boxes are prorated on the basis of a
600-animal average size fattening herd.
bFrom Appendix Tables 11.5.-II.7.







Table II.11.--Estimated annual production requirements and costs and returns per animal for
improved pasture plus supplement in the Intermediate Savannahs, Guyanaa


fattening on


Price
Item Description Unit or cost Quantity Va or
per unicost
per unit


(1) Income from animals produced
by cow-calf herds on:
Improved pasture


Bulls
Heifers


Native range
Bulls
Heifers

Native-improved
combination


1.5 year old animals fattened
for one year adjusted for a
death loss of 3%


1.5 year old animals fattened
for one year adjusted for a
death loss of 3%


Bulls
Heifers


(2) Initial investment


Fencing
Watering
equipment
Mineral boxes


1.5 year old animals fattened
for one year adjusted for a
death loss of 3%


Semi-suspended barbed-wire fence

Well, windmill & 4 water troughs
Wooden


0.30
0.30


mile


871
800


600.00


set 2,900.00


each


30.00


261.30
240.00


3.2 1,920.00

1 2,900.00
4 120.00


Continued


0.30
0.30


0.30
0.30


895
824


774
703


268.50
247.20


232.20
210.90








Table II.11.--Estimated annual production requirements and costs and returns per animal for fattening on
improved pasture plus supplement in the Intermediate Savannahs, Guyanaa--Continued


Price
Item Description Unit or cost Quantity value or
per unit

G$
Feed troughs Wooden each 30.00 8 240.00
Total 350-animal herd 5,180.00
Total/head 14.80
(3) Specified costs
Net specified costs per calf
produced from cow-calf herds on:b
Improved pasture 375 lb. 7 month old weaner head 251.54 1 251.54
Native range 250 lb. 7 month old weaner head 12.95 1 12.95
Native-improved
combination 350 lb. 7 month old weaner head 144.26 1 144.26
Pasture Pangola pasture renewed
every five years acre 80.69 0.5 40.35
Supplement
Molasses lb. 0.02 720 14.40
Copra meal lb. 0.039 1,382 53.90
Rice bran lb. 0.03 22 0.66
Urea lb. 0.09 9 0.81
Minerals Complete supplement 'lb. 0.10 46 4.60


Continued








Table II.11.--Estimated annual production requirements and costs and returns per animal for fattening on
improved pasture plus supplement in the Intermediate Savannahs, Guyanaa--Continued

Price
Price Value or
Item Description Unit or cost Quantity cost
per unit
per unit


Maintenance of
structures
Veterinary &
medicine


5% of initial investment


Inoculation, worming, etc.


head


head


sq. mi.


Land rent
Total specified cost per
slaughter animal from cow-
calf herds on:
Improved pasture
Native range
Native-improved
combination
(4) Total income less total specified
costs ("return" to management and
capital) per animal from cow-calf
herds on:
Improved pasture
Bulls
Heifers


head
head

head


0.74

0.50
3.00


0.74


1 0.50
0.00075 0.00


365.50
128.91

260.22


365.50
128.91

260.22


-99.00
-120.30


Continued




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