• TABLE OF CONTENTS
HIDE
 Title Page
 Acknowledgement
 Table of Contents
 Abstract
 Chapter 1: Introduction
 Chapter 2: Research design
 Chapter 3: Socioeconomic drivers...
 Chapter 4: Household-level determinants...
 Chapter 5: Conclusions
 Reference
 Biographical sketch






Title: Drivers of investment in cattle among landholders in the Southern Peruvian Amazon
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 Material Information
Title: Drivers of investment in cattle among landholders in the Southern Peruvian Amazon
Physical Description: viii, 116 leaves : ; 29 cm.
Language: English
Creator: Varese, Mariana
Publication Date: 1999
 Subjects
Subject: Ranching -- Peru -- Madre de Dios (Dept.)   ( lcsh )
Ranching -- Amazon River Region   ( lcsh )
Cattle trade -- Peru -- Madre de Dios (Dept.)   ( lcsh )
Cattle trade -- Amazon River Region   ( lcsh )
Latin American Studies thesis, M.A   ( lcsh )
Dissertations, Academic -- Latin American Studies -- UF   ( lcsh )
Genre: bibliography   ( marcgt )
non-fiction   ( marcgt )
 Notes
Thesis: Thesis (M.A.)--University of Florida, 1999.
Bibliography: Includes bibliographical references (leaves 109-115).
Statement of Responsibility: by Mariana Varese.
General Note: Printout.
General Note: Vita.
Funding: Electronic resources created as part of a prototype UF Institutional Repository and Faculty Papers project by the University of Florida.
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Bibliographic ID: UF00056225
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: aleph - 002531870
oclc - 43707588
notis - AMP7794

Table of Contents
    Title Page
        Page i
    Acknowledgement
        Page ii
        Page iii
        Page iv
    Table of Contents
        Page v
        Page vi
    Abstract
        Page vii
        Page viii
    Chapter 1: Introduction
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
    Chapter 2: Research design
        Page 6
        Conceptual framework
            Page 6
            Page 7
            Page 8
            Page 9
        Research objectives and hypotheses
            Page 10
        Research methods
            Page 11
            Research site
                Page 11
            Organization of the information
                Page 12
                Page 13
                Page 14
            Field work
                Page 15
                Page 16
            Data-collection instruments
                Page 17
                Page 18
                Page 19
                Page 20
                Page 21
    Chapter 3: Socioeconomic drivers of cattle raising in Madre de Dios
        Page 22
        The department of Madre de Dios
            Page 23
            Geography and environment
                Page 23
                Page 24
                Page 25
                Page 26
                Page 27
            Current demographic and socioeconomic characteristics
                Page 28
                Page 29
                Page 30
        Demographic, socioeconomic, and political processes impacting the cattle sector
            Page 31
            The Peruvian Amazon region in the 20th century
                Page 32
                Page 33
            Migration, policies, and cattle raising
                Page 34
                Page 35
                Page 36
                Page 37
            Other policy initiatives in the region that affect land-use outcomes
                Page 38
                Page 39
                Page 40
                Page 41
                Page 42
            Impacts of policies and projects on landholders' land-use decisions
                Page 43
                Page 44
                Page 45
                Page 46
                Page 47
            Development of regional beef markets and the cattle sector
                Page 48
                Page 49
                Page 50
                Page 51
                Page 52
                Page 53
    Chapter 4: Household-level determinants of cattle raising among farmers on the puerto Maldonado-Mazuko road
        Page 54
        San Bernardo and Santa Rita research sites
            Page 55
            Page 56
        Internal characteristics of households
            Page 57
            Household composition and labor availability
                Page 58
                Page 59
                Page 60
                Page 61
            Ethnicity and human capital
                Page 62
                Page 63
            Origins and migration history
                Page 64
                Page 65
                Page 66
                Page 67
            Assets and capital accumulation
                Page 68
                Page 69
        Economic strategies, production systems, and land-use patterns
            Page 70
            Land distribution
                Page 71
            Crops
                Page 72
                Page 73
            Small farm animals
                Page 74
                Page 75
                Page 76
            Logging
                Page 77
            Off-farm work
                Page 78
            Pasture cultivation and cattle ranching
                Page 78
                Page 79
                Page 80
                Page 81
        Cattle in a diversified production strategy
            Page 82
            Page 83
            Page 84
        Households determinants of cattle raising
            Page 85
            The model
                Page 85
                Page 86
            Correlation analysis
                Page 87
                Page 88
                Page 89
                Page 90
                Page 91
            Multivariate regression analysis
                Page 92
                Page 93
                Page 94
                Page 95
                Page 96
                Page 97
                Page 98
                Page 99
                Page 100
                Page 101
                Page 102
                Page 103
    Chapter 5: Conclusions
        Page 104
        Page 105
        Page 106
        Page 107
        Page 108
    Reference
        Page 109
        Page 110
        Page 111
        Page 112
        Page 113
        Page 114
        Page 115
    Biographical sketch
        Page 116
        Page 117
Full Text










DRIVERS OF INVESTMENT IN CATTLE
AMONG LANDHOLDERS IN THE SOUTHERN PERUVIAN AMAZON















By

MARIANA VARESE


A THESIS PRESENTED TO THE GRADUATE SCHOOL OF THE UNIVERSITY OF
FLORIDA IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE
DEGREE OF MASTER OF ARTS

UNIVERSITY OF FLORIDA


1999














AKCNOWLEDGEMENTS


I would like to thank the members of my committee for their help and support.

The committee chair, Dr. Charles Wood, guided and encouraged me throughout the

process of this research. I thank Dr. Peter Hildebrand and Dr. Philip Williams for

additional insights and support.

I am also grateful to Dr. Marianne Schmink and Dr. Ricardo Godoy for their

valuable teachings, suggestions and insights during the first stages of this research. I

thank also Avecita Chicch6n and Richard Piland, who taught me to love Madre de

Dios and its people, who encouraged me to pursue graduate studies at the University

of Florida, and who provided me their support and comments from the beginning.

This research was possible by grants of the Tropical Conservation and

Development Program at the University of Florida, and of the Inter American

Foundation. The administrative personnel of the Center for Latin American Studies

also contributed to this effort.

I would like to thank the Peru Program of Conservation International (CI-Peru)

for providing me information, contacts, and logistic support in Lima and in Madre de

Dios. Thanks are due to all the members of CI-Peru, who kindly shared with me their

time, knowledge, and friendship, making the fieldwork one of the most beautiful

experiences in my life.

In Madre de Dios, several people and institutions contributed with valuable

information and insights to this research. I would like to thank to Palmer Pastor,

President of the Regional Government (Consejo Transitorio de Administraci6n

ii









Regional de Madre de Dios), who helped me to reconstruct the history of cattle

raising in Madre de Dios. I also express my appreciation to Enrique Osorio, Director

of the Ministry of Agriculture Agency (Direcci6n Regional de Agricultura de Madre de

Dios), Armando Muhante and Jorge Coronel, from the Agrarian Health Service

(Servicio Nacional de Sanidad Agropecuaria); Jos6 Calder6n, Technician of the

Artificial Insemination Center (Posta de Inseminaci6n Artificial); the Statistics

Department (Oficina de Informaci6n Agraria de Madre de Dios); and the Chief of the

Tambopata-Candamo Reserved Zone. I am also grateful to Victor Zambrano,

President of the Departmental Agrarian Federation (Federaci6n Agraria

Departamental de Madre de Dios), for generously sharing with me his knowledge of

Madre de Dios, its people, and its history.

I am grateful to the members of the communities of Santa Rita Alta, Santa

Rita Baja, San Bernardo, Las Mercedes, and Fitzcarrald. They welcomed us into their

houses and, with generosity and patience, shared their time, knowledge, history, and

personal experiences. Thanks also to the institutions and people that helped me

during my work in the communities. In Santa Rita Baja, I received valuable help and

information from Alejandro Ponciano, of the Agency of the Ministry of Agriculture;

Angelica SuBrez, of the Health Center; and all the members of the soybeans

cooperative (Empresa Agroalimentaria Inamban). I would like to especially thank

Ayda Carranza, my field assistant, who contributed to this research with her hard

work, her knowledge of the area and the people, and a constantly positive attitude

that made field research much more enjoyable.

Finally, I would like to thank my family and friends for their constant

encouragement and help during all this time. I am convinced that their company,









encouragement, and prayers were essential for me to successfully pursue my

graduate studies. I am especially grateful to my parents, Tula Zimic and Luis Varese,

whose unconditional support made this possible. Also, thank to Nicolds and Micaela

Varese, Maria and Marcela Zimic Leo, the Jean-Mairets, the Schroeders, Carmela

Oyarce, and Maria del Pilar Cabrera. Thanks to Luciana Porter, Viki Reyes and

Vincent Vadez, M6nica Espinoza, Victoria Saiz and Tauheed Khan, Mercedes Prieto,

and Maria Lanao, who shared with me their wisdom and joy, and provided me

valuable insights throughout the research process. Spending this time in graduate

school with my husband, Jorge Arag6n, has been an unforgettable experience. I am

profoundly grateful for his love, friendship, encouragement, and intellectual support.














TABLE OF CONTENTS


Page
ACKNOW LEDGEM ENTS................................ ................................................... ii

A BSTRACT ................................................. ...................................................... vii

CHAPTERS

1 INTRO DUCTIO N ......................................................................................... 1

2 RESEARCH DESIGN

Conceptual Fram ework.................................................................................. 6
Research Objectives and Hypotheses........................................ ............ 10
Research Methods ..................................................... ............................ 11
Research Site .......................................... ............... .......................... 11
Organization of the Information........................................... ........... ... 12
Field W ork .......................................................... .............................. 15
Data-Collection Instruments.............................................................. 17

3 SOCIOECONOMIC DRIVERS OF CATTLE RAISING IN
MADRE DE DIOS...................................................... ............................. 22

The Department of Madre de Dios.......................................................... 23
Geography and Environment ............................................. ........... .... 23
Current Demographic and Socioeconomic Characteristics...................... 28
Demographic, Socioeconomic, and Political Processes Impacting the
Cattle Sector...................................................... ............................... 31
The Peruvian Amazon Region in the 20th Century.................................. 32
Migration, Policies, and Cattle Raising............................................... 34
Other Policy Initiatives in the Region that Affect Land-Use Outcomes ...... 38
Impacts of Policies and Projects on Landholders' Land-Use Decisions..... 43
Development of Regional Beef Markets and the Cattle Sector.................. 48

4 HOUSEHOLD-LEVEL DETERMINANTS OF CATTLE RAISING AMONG
FARMERS ON THE PUERTO MALDONADO-MAZUKO ROAD............... 54

San Bemardo and Santa Rita Research Sites............................................ 55
Internal Characteristics of Households ....................................... ............ 57
Household Composition and Labor Availability ....................................... 58
Ethnicity and Human Capital............................................................. 62










Origins and Migration History......................................... ................. 64
Assets and Capital Accumulation.............................................................. 68
Economic Strategies, Production Systems, and Land-Use Patterns............... 70
Land Distribution..................................................................................... 71
Crops ........................................................................................................ 72
Small Farm Animals........................................................................... 74
Logging ............................................................................ ..................... 77
Off-Farm W ork ................................................................ ...................... 78
Pasture Cultivation and Cattle Ranching ................................................... 78
Cattle in a Diversified Production Strategy............................... ......... ............ 82
Households Determinants of Cattle Raising....................................... ........... .. 85
The Model......................................................... 85
Correlation Analysis................................................................................. 87
Multivariate Regression Analysis ............................................. ........... .. 92

5 CONCLUSIONS ........................................................................................... 104

REFERENCES...................................................................................................... 109

BIOGRAPHICAL SKETCH .................................................................................... 116





























vi














Abstract of Thesis Presented to the Graduate School
of the University of Florida in Partial Fulfillment of the
Requirements for the Degree of Master of Arts

DRIVERS OF INVESTMENT IN CATTLE AMONG LANDHOLDERS
IN THE SOUTHERN PERUVIAN AMAZON

By

Mariana Varese

December 1999

Chairman: Charles H. Wood
Major Department: Center for Latin American Studies

The human contribution to global environmental change is expressed in two

main phenomena: the conversion of forests and woodlands into croplands and

pasture and the increasing concentration of greenhouse gases in the atmosphere.

The study of the causes and consequences of extensive cattle ranching in the

Amazon is important because this activity contributes to these two processes. This

type of research also enables a better understanding of the social causes of land use

and cover change.

The objectives of the research are (1) to identify the incentives and constraints

that have influenced decisions of southern Peruvian Amazon landholders regarding

cattle ranching and (2) to understand the ways in which these incentives and

constraints influence land use and management practices associated with this

economic activity.

Land use decisions are conceptualized as the outcome or a rational process

by which households allocate scarce resources. Thus, the decision process is










understood as the interplay between factors internal to the household and those that

reside in the external environment (socioeconomic and biophysical factors).

Outcomes of this interplay are the decisions to invest land, labor, and other resources

into cattle ranching, which, in turn, are treated within the context of other possible

investment outcomes (e.g., forest management, annual crops, perennial crops).

The analysis at the regional level focused on the impact of environmental and

socioeconomic factors that influence cattle raising in Madre de Dios. It shows, first,

that landholders in this region confront an extremely fragile environment that is also

characterized by its geographical and economic isolation. Second, both private

initiative and government policies contributed to encourage the cattle sector in Madre

de Dios. The development of regional markets for beef contributed to encourage

landholders to engage in cattle raising. Finally, conservation-oriented policies

demonstrated to have a limited impact on local farmers' land use.

At the household level, regressions results showed that, after controlling for

internal household characteristics, farmers who live closer to the market invest more

in cattle raising. The spatial location of the households influences their decisions

through access to the market and a longer time of settlement. Households' time of

residency in the plot impacted positively on pastures cultivation, while household size

impacted negatively on herd size. The role of cattle within the farm also played an

important role. First, cattle require low labor and high land inputs, which coincide with

frontier conditions. Second, rather than competing with other farm activities, cattle

raising seems to contribute to their development via the provision of cash. Fourth,

landholders who raise cattle are better off than those who do not, and prestige is also

associated with cattle raising.














CHAPTER 1
INTRODUCTION


Since the late 80s, the scientific community has formally recognized the

necessity of studying the effect of human behavior on global environmental change

(Committee on Global Change Research 1998: 6). The Committee on Global Change

Research of the U.S. National Research Council defines the study of the human

dimensions of global environmental change as follows:

Study of the human dimensions of global environmental change
encompasses the analysis of the human causes of global
environmental transformations, the consequences of such changes for
societies and economies, and the ways in which people and
institutions respond to the change. It also involves the broader social,
political, and economic processes and institutions that frame human
interactions with the environment and influence human behavior and
decisions. (1998: 4)

The human contribution to global environment change is expressed in two

main phenomena: the conversion of forests and woodlands into croplands and

pasture and the increasing concentration of greenhouse gases in the atmosphere (4).

The study of the causes and consequences of extensive cattle ranching in the

Amazon is critical because cattle ranching contributes to both processes.

Between 1970 and 1991, an estimated 20 million hectares of Amazonian rain

forests were converted into pasture or cropland. Of this total, 10 million hectares were

cleared for cattle ranches in Brazil, compared to only 0.5 million hectares in Peru

(Durning and Brough 1991). Two major consequences of the expansion of cattle

ranching-the burning of biomass to create pastures and the release of methane gas

produced by enteric fermentation within the animals-have global environmental

1









impacts (IPCC 1995; Walker 1994; Rifkin 1992; Duming and Brough 1991; Pearman

and Fraser 1988). Additionally, deforestation, soil compaction, microclimatic

instability, increasing social inequity, and social conflicts are among the most

important local impacts of the expansion of cattle ranching in the Amazon (Barkin

1992, Hecht 1992; Ledec 1992; Salati 1992; Schmink and Wood 1992; Duming and

Brough 1991; Fearnside 1990).

The study of social drivers of cattle ranching also contributes to a better

understanding of the social causes of land-use and land-cover change, and is

considered a research priority within the human dimensions of global environmental

change (Committee on Global Change Research 1998: 59). A thorough literature

review showed that the expansion of cattle ranching has been extensive in Brazil.

Whereas earlier works on causes of cattle ranching expansion focused the role of

state policies in promoting this type of land use (Anderson 1990; Feamside 1990;

Hecht 1992; Hecht and Cockbum 1989), more recent research has focused on the

incentives and constraints that influence landholders' decisions to engage in cattle

raising. It includes the need to ensure property rights to land (Faminow 1997a; Alston

1995; Hecht 1992; Schmink and Wood 1992; Hecht and Cockbum 1989); the

inflationary context that made it more profitable to invest in pastures and cattle (Hecht

1992); an unsatisfied local demand for cattle products (Faminow 1997a); and the

economic and biological characteristics of cattle that made them an attractive

investment for large and small landholders (Pich6n 1999, Hecht 1992; Sere and

Jarvis 1992).

In contrast to Brazil, the Peruvian Amazon region has not witnessed the

massive expansion of cattle ranching, nor has a wide literature on this issue been









produced. In Peruvian tropical rain forests, subsistence agriculture is considered the

most important cause of forest clearing, although much of the land eventually results

in pastures (Durning and Brough 1991; Dourojeanni 1990). In this context, previous

research treats cattle as a part of a more diversified farming strategy in which

livestock are an alternative source of income and a risk management strategy (Pich6n

1999, 1997; Ellis 1996; Chibnik 1994; Loker 1993; Dourojeanni 1990)

Currently, researchers have an increasing interest in understanding the

decision-making processes that produce different land-use patterns and explain

deforestation (Pich6n 1996; Rudel 1993). This issue is also considered of high priority

within the research agenda on Global Environmental Change (Mordn, pers.comm).

The present thesis is framed within these concerns and focuses in farmers' decisions

on cattle raising as a way to understand causes of deforestation in the southem

Peruvian Amazon.

The objective of the research are (1) to identify the incentives and constraints

that have influenced the decisions of southern Peruvian Amazon landholders

regarding in cattle ranching and (2) to understand the ways in which these incentives

and constraints influence land-use and management practices associated with this

economic activity.

Land-use decisions are conceptualized as the outcome of a rational process

by which household allocate scare resources. Thus, the decision process is

understood as the interplay between factors internal to the household and those that

reside in the external environment (socioeconomic and biophysical environments).

Outcomes of this interplay are the decisions to invest land, labor, and other resources

into cattle ranching, which, in turn, are treated within the context of other possible










investment outcomes (e.g., forest management, annual crops, perennial crops, etc.).

Hence, the investment in cattle is not an isolated decision, but one that is embedded

in, and to some degree dependent on, the other forms of land use.

The factors influencing landholders' decisions on land use originate at

different spatial and temporal levels. So, research on land-use and land-cover

change--and, in this case, on cattle raising-requires both a historical perspective and

the need to take into account processes at different spatial levels. For the purposes of

this thesis, I addressed two levels: (1) the regional level, that includes the whole

department of Madre de Dios and (2) the household level.

Thus, the analysis of the environmental, socioeconomic, and household-level

factors influencing landholders' decisions on cattle raising is divided in two parts. The

first part seeks to identify the regional-level factors that encouraged the growth of

cattle raising in Madre de Dios. The second part seeks to identify the household-level

factors that influence landholders' decisions on cattle raising.

Chapter 2 discusses the study's conceptual framework and its guiding

hypotheses, as well as the research site and field procedures. Finally, I discuss some

methodological issues that arose during the research.

Chapter 3 focuses on the environmental and socioeconomic factors that

influence the cattle sector in the department of Madre de Dios. The analysis is made

at a regional level, and reviews regional historical and statistical data.

Chapter 4 presents the local landholders' main demographic and social

characteristics, and describes their farming systems. It uses correlation and

multivariate regression analysis to assess the impact of household-level factors that

influence landholders' decisions on cattle raising. It emphasizes the differentiated






5



impact of the spatial location of the household and its internal characteristics

(household heads' time of residence in the plot and education level, and household

size). Finally, Chapter 5 presents the conclusions.














CHAPTER 2
RESEARCH DESIGN




Conceptual Framework


In his assessment of research on resource allocation in frontier

environments,1 Fransisco Pich6n says:

migrant settlers have in common (...) a production system
characterized by intensive use of family labor and simple agricultural
technologies, a strong drive for cattle ownership, and overexploitation
of land through continuous incorporation of new areas, with little regard
for the long-term preservation of the natural resource base. (1997:
710)

Over time, researchers tried to explain this pattern, emphasizing either natural

resource constraints; political, social, and economic factors; or the adaptation process

experienced by settlers in the Amazon region (711). However there is an agreement

on the fact that frontier areas are characterized by "abundance of land and relative

scarcity of human labor and capital, which make development and adoption of natural

resource-saving systems unattractive" (712). Another important characteristic of the

frontier areas is the high diversity of land-use patterns present there. Pich6n explains

that

Although seldom empirically documented, the extensive literature on
the forest conversion process emphasizes the variability in settler land-
use strategies that results from differences in land access and tenure,



For extensive reviews, see also Rudel 1993; Kaimowitz and Angelsen 1998.
6














CHAPTER 2
RESEARCH DESIGN




Conceptual Framework


In his assessment of research on resource allocation in frontier

environments,1 Fransisco Pich6n says:

migrant settlers have in common (...) a production system
characterized by intensive use of family labor and simple agricultural
technologies, a strong drive for cattle ownership, and overexploitation
of land through continuous incorporation of new areas, with little regard
for the long-term preservation of the natural resource base. (1997:
710)

Over time, researchers tried to explain this pattern, emphasizing either natural

resource constraints; political, social, and economic factors; or the adaptation process

experienced by settlers in the Amazon region (711). However there is an agreement

on the fact that frontier areas are characterized by "abundance of land and relative

scarcity of human labor and capital, which make development and adoption of natural

resource-saving systems unattractive" (712). Another important characteristic of the

frontier areas is the high diversity of land-use patterns present there. Pich6n explains

that

Although seldom empirically documented, the extensive literature on
the forest conversion process emphasizes the variability in settler land-
use strategies that results from differences in land access and tenure,



For extensive reviews, see also Rudel 1993; Kaimowitz and Angelsen 1998.
6









labor availability, local infrastructure, soil quality, and other
environmental features of the settled region. (1997: 712)

To better understand this diversity of land-uses present in frontier areas, it is

critical to address the lanhdholders' decision-making processes, and try to determine

the influence of environmental conditions; the roles played by social, political and

economic incentives; and how all these interact with the household's internal

characteristics. To do that, this research conceptualizes land-use decisions as the

outcome of a rational process by which households allocate scare resources. Pich6n

describes how this process is conceptualized across disciplines in frontier conditions:

farmers must make decisions about production in relation to available
human and natural resources, balance opportunities against
constraints, cope with uncertainty and risk, and deal with the 'outside
world', however defined. (...) [I]n the Absence of significant capital and
in the presence of scarce labor, the major household resource
allocation decision in frontier areas concerns the allocation of land.
Land-use decisions comprise the broad sectorial choice (...), the
choice of particular crops (...), the intensity of factor use (...), and the
allocation of land for fallow. (1997: 712-713)

Thus, the decision process is understood as the interplay between factors

internal to the household and those that reside in the external environment, as shown

in Figure 2-1 (Wood and Porro 1997; see also Pich6n 1997, 1996). Placing the

decision process at the center of the model emphasizes the idea that the household

allocation of resources depends on "household's internal characteristics" (left of

Figure 2-1), and is done in the context of the opportunities and constraints (positive

and negative incentives) that reside at the level of the "biophysical environment"

(bottom of Figure 2-1) and the "socioeconomic environment" (top of Figure 2-1).

Outcomes of this interplay are decisions regarding land-use. The allocation of land

and other resources to cattle raising is treated as one of several other possible

outcomes (e.g. forest management, annual crops, perennial crops, etc.; right of











Figure 2-1). The model stresses the idea that the investment in cattle is not an

isolated decision, but one that is embedded in, and to some degree dependent on,

the other forms of land-use. Finally, the dashed arrows show the dynamic character

of this model, illustrating the subsequent effects that land-use patterns have on the

prior elements in the model (Wood and Porro 1997).




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

Socioeconomic
environment
(legal and institutional
framework, public policy,
market demand and prices,
local institutions and
organizations. etc.)
Internal
characteristics of Agroforestry
the household Forest
Decision process ----management
(resources Pastures
endowment, exposure (resources Cattle raising
to the market, cultural allocation) Other livestock
features, household Annual crops
members education,
Perennial crops
life cycle stage, etc.)
/A Biophysical environment
(climatic conditions, soil
characteristics, topography,
flora and fauna composition,
etc.)
A,
------------------------.- --------------------------------------------

Adapted from Wood and Porro 1997.


Figure 2-1. Socioeconomic and Biophysical Drivers of Land-Use Decisions Among
Landholders in the Amazon Region



Landholders' decisions and land-use patterns are not isolated from the

broader local, regional, national and international context. Actually, the factors

influencing landholders' decisions on land-use originate at different spatial and










temporal levels, while landholders' decisions may affect outcomes at broader levels.

Research on land-use and land-cover change-and in this case on cattle raising-

requires both a historical perspective, and must take into account international,

national, regional, and local processes. As Gibson et al. explain, "[t]he

multilevel/multiscale nature of the problems relating to the human dimensions of

global change demands that researchers address key issues of scales and levels in

their analyses" (1998: 2). Scale is defined as the "spatial, temporal, quantitative, or

analytical dimensions used to measure and study any phenomenon" and levels are

the "units of analysis that are located at the same position on a scale" (3).

For the purposes of this thesis, I addressed two levels. First, the regional

level, that includes the whole department of Madre de Dios. I selected a region like

this, because the Peruvian political division in departments also implies the division of

the different government agencies. For example, the Ministry of Agriculture has an

Agency in Madre de Dios (Direcci6n Regional de Agricultura Madre de Dios) that is

in charge of carrying out the agriculture policies in the department. Although the

executive branch system is very vertical, departmental agencies have some

discretion to elaborate their own policies, and extension and development programs.

This is especially true in Madre de Dios, a department that is very isolated from the

rest of the country, relative to the other departments. Therefore, the regional level is

appropriate to analyze the generation, execution, and impact of both national and

regional policies in the agriculture sector.

Second, I analyzed household-level decisions on land-use and particularly on

cattle raising. I focused on the household characteristics that influence landholders

decisions on cattle raising.









Research Objectives and Hypotheses


The objectives of this thesis are (1) to identify the incentives and constraints

that have influenced the decisions of southern Peruvian Amazon landholders towards

the adoption of cattle and (2) to understand the ways in which these incentives and

constraints operate among households.

The analysis is presented in two parts. The first part identifies the regional-

level factors that encouraged the growth of cattle raising in Madre de Dios and the

second part identifies the household-level factors that influence landholders'

decisions on cattle raising. In both cases, I seek to establish causal relations between

influencing factors and cattle raising outcomes.

The research hypotheses are:

1. Although national and regional policies towards cattle raising in Madre de

Dios have had a limited impact, the geographic and economic isolation of

the department, together with high immigration rates, encouraged cattle

raising in Madre de Dios.

2. In the 90s, conservation-oriented policies and programs have had limited

impact discouraging extensive cattle raising in Madre de Dios.

3. Compared to others, landholders living closer to Puerto Maldonado

invested more in cattle raising -measured by pastures size, herd size,

infrastructure, and medication. Spatial location of the households influence

their decisions through access to the market and time of occupation of the

area.

4. Landholders with a longer time of residence in their plots, that have

greater education levels, and whose households have fewer members,









invest more in cattle raising -measured by pastures size, herd size,

infrastructure, and medication.

5. Spatial location of the household is a significant explanatory variable of

cattle raising, even after controlling for household internal characteristics.

And vice versa, household internal characteristics impact significantly on

landholders' decisions on cattle raising, even after controlling for spatial

location of the household.



Research Methods



Research Site

I carried out field research in the department of Madre de Dios, Southeastern

Peru. More specifically, I focused on landholdings and communities located along the

road that connects Puerto Maldonado (the department's capital) with Mazuko (a town

located 160 km west of Puerto Maldonado). This road covers two provinces of Madre

de Dios, Tambopata and Inambari, and constitutes a portion of the so-called

Transoceanic Highway, which is planned to connect the Atlantic and the Pacific

Oceans. Also, the Puerto Maldonado Mazuko road represents an important section

of the border of the Tambopata Candamo Reserved Zone, generating important

consequences to the farmers that live in the southern side o the road-i.e., inside the

Reserved Zone (Figures 3-1 and 3-2).

I selected this site because the forests of Tambopata are among the most

biodiverse in the world and have high conservation priority (Conservation

International 1994). After the creation of the Tambopata-Candamo Reserved Zone in









invest more in cattle raising -measured by pastures size, herd size,

infrastructure, and medication.

5. Spatial location of the household is a significant explanatory variable of

cattle raising, even after controlling for household internal characteristics.

And vice versa, household internal characteristics impact significantly on

landholders' decisions on cattle raising, even after controlling for spatial

location of the household.



Research Methods



Research Site

I carried out field research in the department of Madre de Dios, Southeastern

Peru. More specifically, I focused on landholdings and communities located along the

road that connects Puerto Maldonado (the department's capital) with Mazuko (a town

located 160 km west of Puerto Maldonado). This road covers two provinces of Madre

de Dios, Tambopata and Inambari, and constitutes a portion of the so-called

Transoceanic Highway, which is planned to connect the Atlantic and the Pacific

Oceans. Also, the Puerto Maldonado Mazuko road represents an important section

of the border of the Tambopata Candamo Reserved Zone, generating important

consequences to the farmers that live in the southern side o the road-i.e., inside the

Reserved Zone (Figures 3-1 and 3-2).

I selected this site because the forests of Tambopata are among the most

biodiverse in the world and have high conservation priority (Conservation

International 1994). After the creation of the Tambopata-Candamo Reserved Zone in










1990, this area has been the target of investment in conservation, infrastructure and

development projects. Most important, there has been a process of land zoning, with

the active participation of the local population through its agrarian federation (Piland

and Varese 1997).

At the same time, this area has received-and is receiving--the influx of

immigrants, mainly to work in agriculture, timber logging, and providing services in the

main city (see Chapter 3). The research area is, therefore, an appropriate site to learn

about the interaction of two apparently contradictory forces: one that focuses on the

conservation of rain forest ecosystems and the other that sees these lands as a place

capable of providing a better life for its settlers.


Organization of the Information

The boxes shown in Figure 2-1 identify loci of data collection. Both the

socioeconomic environment and the biophysical environment are considered

constant for the studied households. Internal household characteristics shape the

way farmers perceive and respond to the different incentives provided by the external

environment--socioeconomic and biophysical. Therefore, the survey sample was

selected to represent differences in terms of time of settlement, access to the main

city, and presence of government and non-government organizations.


Socioeconomic environment

This is one dimension of the context within which landholders make

investment decisions. It entails the array of socioeconomic factors that affect the

relative costs of different investment strategies, including, among others, state

subsidies and taxation policies; technical extension programs; the price and









availability of local resources; demand for these resources; commodity prices and

demand; and local organizations and initiatives. I acquired information about these

factors carrying out in-depth interviews (Bernard 1994) with key informants, who

provided valuable description of the current economical and political trends.

Interviews took place mainly in the communities and in Puerto Maldonado-the

departmental capital and the location of government offices, grassroots organizations

headquarters, and NGO representations. Also, Puerto Maldonado is the place where

most people buy and sell products.

Because socioeconomic factors are regional in scope, they represent a

constant for all landholders within a particular locality in the region. However,

individual landholders have varying degrees of knowledge about the system of which

they are a part. Hence, an important item included in the household survey (Bernard

1994) addressed the access of household heads to the broader socioeconomic

system within which the household operates, in terms of knowledge and access.


Biophysical environment

The biophysical environment sets parameters for the households' decisions

about land-use and resource allocation, which include climatic conditions, soil

characteristics, topography, and flora and fauna composition. The data for the

analysis of these factors came mainly from the existent literature and the local

agrarian federation's (FADEMAD) participatory land-use classification (Flores and

Piland 1997). Mapping of resource base (Slocum et al. 1995) and household surveys

provided valuable information about household perception about the biophysical

environment in which they live. For the purposes of this research, biophysical

environment was considered constant for all the interviewees (see Chapter 3).









Internal characteristics of households

The households' internal characteristics determine the way in which

socioeconomic and biophysical factors are perceived and incorporated by the

household in its decision-making processes. The questionnaire included four topics

regarding these issues: (1) socio-demographic characteristics of the household (age,

sex, and education of its members, number of children, migration history, etc.); (2)

resource endowments (land, labor available, forest resources, etc.); (3) asset

accumulation (possession of radio, motorcycles, water tanks, livestock, etc.); and (4)

land-use and economic activities (labor selling, annual and perennial crops, primary

forest and fallow, etc.).


Household decision-making process

In the proposed research, households make land-use decisions by taking into

account its internal characteristics, within the socioeconomic and biophysical

environment context. Of all the various domains, the decision process itself presents

the greatest challenge. I used statistical associations to address it. For example, the

data showed that the household heads' time of residency on the plot (internal

characteristic) is associated with larger pastures. This association, however,

considers the decision process within the household as a "black box" (Gladwin 1989).

More adequate analytic tools to address decision-making processes are linear

programming (Hildebrand and Aradjo 1997) and decision tree models (Gladwin

1989), but these tools were beyond the scope of this thesis. However, I tried to

overcome these limitations with in-depth interviews with the farmers. Qualitative and

participatory research methods helped to provide a clearer picture of the decision-

making processes among landholders in the region.









Field Work

I spent four weeks in Lima, pursuing archival work, preparing research

instruments, and coordinating the logistics of my field trip to Madre de Dios. The Peru

Program of Conservation International and its personnel contributed valuable

information and gave me valuable logistic support to pursue my fieldwork.

After that, I then traveled to Puerto Maldonado, the capital of the department

of Madre de Dios, where I had long and insightful talks with the personnel of the Peru

Program of Conservation International, who helped me identify and contact key

informants. I spent approximately two weeks in Puerto Maldonado, divided in three

short periods, interviewing key informants and gathering secondary data. The rest of

the time, I was in the communities, applying household surveys, some in-depth

interviews, and engaging in participatory research methods.

During my time in Puerto Maldonado, I contacted representatives of the

government, local NGOs, grassroots organizations, and firms. Luckily, the

departmental Agrarian Fair (IX Feria Agropecuaria de Madre de Dios) took place at

the same time. Participants from all the economic and political sectors gathered for

this event, which turned to be very helpful for contacting key informants. For example,

the fair provided the opportunity to contact some of the biggest cattle ranchers of the

region.

In the city of Puerto Maldonado, I interviewed officials of the Regional

Government (Consejo Transitorio de Administraci6n Regional Madre de Dios;

CTAR-MDD). The President of CTAR-MDD and personnel from the Planning Office

kindly provided valuable information about the past and present agrarian policies in

the department. The Regional Office of the Ministry of Agriculture (Direcci6n Regional









de Agriculture de Madre de Dios; DRAMDD) also opened its doors and contributed

valuable information about the sector's statistics; past and present policy; and

extension activities. I also interviewed officers and researched documents held by the

Department of Statistics (Oficina de Informaci6n Agraria OIA); the Agrarian Health

Department (Servicio Nacional de Sanidad Agropecuaria; SENASA); the Office for

Artificial Insemination (Posta de Inseminaci6n Artificial); and the Tambopata -

Candamo Reserved Zone / Bahuaja Sonene National Park (Jefatura de la Zona

Reservada Tambopata Candamo y Parque Nacional Bahuaja Sonene). Finally, I

interviewed the President of the Agrarian Federation (Federaci6n Agraria

Departamental de Madre de Dios FADEMAD) and personnel of a soybean

cooperative (Empresa Agroalimentaria Inambari EAI) that operates in the

communities I visited during fieldwork.

I spent the rest of the time -more than three weeks- in Santa Rita Alta and

Santa Rita Baja. Ayda Carranza, my field assistant, and I applied 38 household

surveys in these communities. In order to systematically cover the whole community,

we started walking at four in the morning from the community school -usually located

in the center of the communities- to one of the borders. By five in the morning we

were at the edge of the communities and went house by house interviewing the

farmers. We repeated the same process after five in the evenings, when household

heads were back from their fields. We were able to complete two to four structured

interviews per day. We spent the rest of the day gathering qualitative information

about farm management, migration dynamics, community policy, etc., mainly by

means of informal talks with farmers. Also, in Santa Rita Baja, we interviewed

personnel of the Sub-office of the Ministry of Agriculture, the Health Post, and the









soybean cooperative. After applying the household survey we went back to talk with

households that we considered key informants. Besides in-depth interviews, they

mapped their plots and developed their activity calendars, noting who carried out

different activities and recording when and where they were performed.


Data-Collection Instruments

In this section I discuss some of the instruments for data collection I used in

the field. Household surveys, plot mapping, activities calendar, and ranking matrix are

addressed here.


Household surveys and regression analysis

The households included in the survey were located in the communities listed

in Table 2-1. They are along the road that connects Puerto Maldonado and Mazuko,

and then continues to Cuzco, the most important city of the southern Peruvian

highlands (for further information see Chapter 3). All communities share similar

environmental conditions (evergreen rain forests) and policy regimes (all are in the

same department and under the rule of the same Regional Government).

These communities are grouped in two 'sections' of the Road that connects

Puerto Maldonado and Mazuko. The first one is located between the 23d and the 37h

kilometer markers due West of Puerto Maldonado, and referred to here as "San

Bernardo." The second group is "Santa Rita," located further away between markers

128 and 137 along the same road. I selected these groups of communities following

specific criteria. First, the strong presence of different government and non-

government offices in Santa Rita Baja but not in the other communities, permitted the

analysis of the effect of political factors affecting farmers' decisions on cattle raising.










Second, the history of colonization of the area suggested that settlers arrived first in

Puerto Maldonado using mule trails. In the '40s, after the construction of the road

connecting Puerto Maldonado and Mazuko, settlers began to occupy plots along this

road, preferring the plots located closer to the department's capital.


Table 2-1. Distribution of Households Included in the Survey, by Community and
Road Section


Households
N %

Community
San Bernardo 20 27.8
Las Mercedes 8 11.1
Fitzcarrald 7 9.7
Santa Rita Alta 16 22.2
Santa Rita Baja 21 29.2
Total 72 100.0

Road Section
San Bemardo (kms. 23 37) 35 48.6
Santa Rita (kms. 128 137) 37 51.4
Total 72 100.0

Madre de Dios Peru, July August 1998.



The site selection thus amounted to a quasi-experimental approach (Bernard

1994) in which the selected households were located in communities that confronted

similar socioeconomic and biophysical environments. At the same time, one group of

communities-San Bemardo-had longer time of settlement and was located closer to

the main market. The other group-Santa Rita-was more recently settled, and was

located further away from the main market.









Plot mapping, activities calendar, and ranking matrix

These tools were used only with key informants in some households in Santa

Rita. In general, we tried to have everybody in the household present during the

exercises, to include different perspectives. First, we asked the household head and

spouse to draw together their plots and, while drawing, we discussed some aspects

of labor allocation, soil fertility, crop distribution, etc. As previous researchers have

shown (Stronza 1996; Slocum et al. 1989), the discussion during the drawing process

provides important information. The activities calendar followed the mapping exercise.

This was helpful because the household heads were already thinking of these issues.

The activities calendar provided information mainly on seasonality, intrahousehold

labor allocation, labor requirements for the most important economic activities, and

demand for contracted labor.

The ranking matrix2 provided more detail about labor and cash requirements

of the different activities and intrahousehold labor allocation, but also served to

discuss farmers' perceptions of the difficulty of carrying out the different activities and

of the return expected from these activities. To do this exercise, we drew the matrix

for them, explaining the exercise, and we asked them to rank different farm activities

(columns) in terms of input/output criteria (rows). Therefore, we presented rows for

female, male, and children labor requirements, hired labor requirements, cash

investment, land requirements, cash returns, and the degree to which products could

be sold. In this case, we presented the criteria to the farmers and, after the matrix

was completed, they discussed their adequacy and what other criteria are important.



2 For methodological issues and case studies on ranking excercises, see also Barton
et al. 1997; Borrini-Feyerabend 1997; Margoluis et al. 1998; Slocum et al. 1989.










According to their importance, the respondents drew columns for cash crops,

subsistence crops, cattle raising, timber logging, small farm animal raising,

housekeeping, and off-farm work. Then, we gave them 50 beans per row and asked

them to allocate the beans along the different activities. Interviewees quickly

understood the idea, and found innovative ways to allocate the beans. For example,

one farmer proposed to make one bean equivalent to approximately one week.


easy to sell?
cash
returns
land
9m cash
investment
3 hired labor
0.
o children
labor
male labor

female labor
subsiste small
cash cattle timber house- off-farm
nce farm
crops crops raising logging animals keeping work

Farm activities


Figure 2-3. The Ranking Matrix


In-depth interviews and participatory research tools provided valuable

information and a friendly environment to discuss different issues of the farmers' life

and their economic strategies. They proved to be an essential complement to the






21



household surveys. These tools required, however, a longer time for preparation and

execution.














CHAPTER 3
SOCIOECONOMIC DRIVERS OF CATTLE RAISING IN MADRE DE DIOS


This chapter addresses the biophysical and socioeconomic factors that affect

landholders' decisions that concern cattle raising. First, I will describe the

geographical and environmental features of Madre de Dios, as well as its main

demographic, socioeconomic, and land-use patterns. The second section seeks to

explain the increase in the cattle population experienced in the Madre de Dios. To do

that, I first describe the Peruvian Amazon Region history, giving emphasis to

demographic processes and policy initiatives. I then discuss the department's history

of occupation and the development policies related to cattle raising. The following

part addresses other regional governmental policies and grassroots organizations

and NGOs activities that may affect the cattle sector in the region and their impact on

land-use patterns and cattle raising. The last part of the second section addresses

Faminow's hypotheses of the development of regional markets and their impact on

the local cattle sector (1998, 1997a, 1997b).

The main findings of this chapter are, first, that landholders in Madre de Dios

confront an extremely fragile environment, characterized by poor soils and high

biodiversity. The area is also characterized by its geographical and economic

isolation. Second, both government policies and the development of regional markets

contributed to encourage the cattle sector in Madre de Dios, while conservation-

oriented policies have had a limited impact on the behavior of local landholders.









The Department of Madre de Dios


Geography and Environment


The department Madre de Dios is located in southeastern Peru, between

11.10 and 13.55 South Latitude and 69.39 and 70.08 West Longitude. It borders with

Ucayali in the North, Brazil and Bolivia in the East, Puno in the South, and Cuzco in

the West. Politically, it is divided into three provinces (Tambopata, Manu, and

Tahuamanu) and nine districts (Figures 3-1 and 3-2).


Figure 3-1. Location of Madre de Dios


The capital (Puerto Maldonado) is located in the southern portion of the

department, at the confluence of the Tambopata and Madre de Dios Rivers. The main

transportation means are rivers, an airport, and a road that connects Puerto

Maldonado with Iberia to the East (bordering with Brazil) and with Mazuko and Cuzco

to the West.









The Department of Madre de Dios


Geography and Environment


The department Madre de Dios is located in southeastern Peru, between

11.10 and 13.55 South Latitude and 69.39 and 70.08 West Longitude. It borders with

Ucayali in the North, Brazil and Bolivia in the East, Puno in the South, and Cuzco in

the West. Politically, it is divided into three provinces (Tambopata, Manu, and

Tahuamanu) and nine districts (Figures 3-1 and 3-2).


Figure 3-1. Location of Madre de Dios


The capital (Puerto Maldonado) is located in the southern portion of the

department, at the confluence of the Tambopata and Madre de Dios Rivers. The main

transportation means are rivers, an airport, and a road that connects Puerto

Maldonado with Iberia to the East (bordering with Brazil) and with Mazuko and Cuzco

to the West.












\ BRAZIL




A IBERIA


PUNO


SSCALA 3OAFICA
4* 1 a_ e 1* 0*e

Adapted from Eddy Mendoza in Piland and Varese 1997: 157.

Figure 3-2. Madre de Dios, Major Roads, Rivers, Towns, and Protected Areas









This road forms part of the 'Trans-Oceanic Highway,' which will provide an

overland link between the Atlantic and the Pacific oceans. To present times, the road

that connects Puerto Maldonado with Cuzco-and to the rest of the country-is a dirt

and grave road that is completely passable only in the dry season, when the trip

between these two cities takes approximately three days. In the rainy season road

conditions are much worse and the department may remain isolated for several

months. When the road is impassable, the only way of reaching Puerto Maldonado is

by plane. Isolation is thus one of the most important features of the department that

the population continually confronts.

The department's 85,182.63 km2 are entirely located within the Amazon

Region, which is the largest block of tropical rain forests in the world (Whitmore 1996:

10). Madre de Dios contains ecosystems of lower and upper montane rain forest

(Selva Alta) and lowland evergreen rain forest (Selva Baja) (APODESA 1990;

Whitmore 1996).

The main characteristics of these ecosystems are their great biological

productivity and biological diversity and their extreme fragility (APODESA 1990;

Whitmore 1996; Brack 1997). These characteristics are related to (1) their location

(between the tropics, 23 North Latitude and 23 South Latitude); (2) their constant high

temperatures (18*C or more during the coldest month); (3) high amounts of rainfall

(above 100mm every month); and (4) very poor soils (Whitmore 1996). Location, sun

exposure, temperature, rainfall, and soils all contribute to shape the tropical rain

forest's nutrient cycle. The majority of nutrients come from the rain and litterfall, and

not from the soil itself. If vegetation is removed, the rain forest loses one of its major









sources of nutrients and soils are exposed to rapid degradation (Whitmore 1996:

147).

Madre de Dios is known worldwide for its outstanding biological diversity and

has been a place of extensive research (Piland and Varese 1997; Conservation

International 1994; ACSS & CDC-Peru 1990). The forests of the Tambopata and

Madre de Dios watersheds are among the most diverse ecosystems in the world and

register several records of biodiversity, including woody plants, birds, butterflies,

mammals, and dragonflies. For example, as many as 500 different bird species, 14

kinds of primates, and more than 1000 butterfly species have been recorded at a

single locality within the Tambopata area (Conservation International 1994). As a

result, Madre de Dios is known as the Peruvian Capital of Biodiversity and constitutes

one of the world's high-priority spots for conservation (Conservation International

1997, 1994; Dinerstein et al. 1995).

These environmental features brought Madre de Dios to the attention of

national and international conservation organizations, which encouraged

conservation activities in the area. The majority of these efforts promoted the creation

and management of protected areas. As a result, there are three areas of strict-

protection (the Santuario Nacional Pampas del Heath, the Bahuaja Sonene National

Park, and the Manu National Park); and two temporary protected areas (the

Tambopata Candamo Reserved Zone and the Manu Reserved Zone). The non-

protected areas, however, have suffered from a lack of sustainable development

alternatives.

The climate in Madre de Dios is characteristic of tropical rain forests. The

average annual Temperature is 24.3C, but, as noted in Table 3-1, June and July










present very low minimum average temperatures. This is due to the appearance of

cold fronts typical of the Southern Hemisphere winter season. Antarctic winds reach

southern Peru, bringing very cold air and rain. These cold fronts (locally known as

friajes) usually last two to four days, after which high temperatures again prevail.

Additionally, total annual rainfall is 2,062mm, with only few months below 100mm.

This corresponds with the dry season, which lasts from May to August, while the rainy

season lasts from September to April.


Table 3-1. Climatic Indicators Observed in the Puerto Maldonado Meteorological
Station: 1990


Winds Avg.
Atmospheric
Prevalent Avg. Speed Pressure
Direction m/seg mb


NW 0.6 984.9
NW 0.4 986.2
NW 0.5 985.7
NW 0.4 987.0
NW 0.3 983.4
SE 0.3 990.4
SE 0.4 992.5
NE 0.3 988.9
NW 0.3 989.2
NW 0.4 986.3
NW 0.4 985.5
NW 0.6 984.9

0.4 987.1


Avg. Temperature in
the Shade ('C)

Max Min

33.0 15.3
34.0 20.0
34.6 19.6
33.6 12.6
32.8 10.0
31.8 13.5
32.5 7.0
35.5 9.0
36.5 12.0
35.5 19.0
35.5 18.8
33.8 17.0

34.1 14.5


Source: INEI 1994: 19.



Soils that are dominant in Madre de Dios are acid, infertile, and well-drained

(Alvim 1978: 15; Sanchez and Isbell 1978: 25). These characteristics strongly limit the

productivity of agriculture and pasture maintenance. Additionally, Shane explains the

rapid fertility loss of rain forest soils used for cattle raising:


Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec

Annual


Total
Rainfall

mm

185.0
346.8
125.3
177.6
71.3
61.5
117.0
55.0
135.0
435.0
146.0
206.5

2062.0


Avg.
Relative
Humidity

%
89
89
86
87
89
83
85
83
80
88
87
88

86.2









As previously noted, areas of tropical forest cleared for the production
of beef cattle on newly established pastures result in the loss of the
soil's nutrients, with introduced grasses becoming increasingly poor in
terms of their nutritional value. Soil deterioration is further compounded
by compaction and overgrazing, which accelerate leaching and erosion
and destroy important successional vegetation such as legumes.
(1986: 21)

Brack (1997: 57) estimated that a cattle ranch in the Amazon region that

begins its cycle with 1 head per hectare, will be able to sustain only 0.3 head per

hectare after 8 years, due to overgrazing and soil erosion.

In conclusion, the population of Madre de Dios faces a biophysical

environment characterized by (a) its high degree of biodiversity; (b) a very wet

climate; (c) infertile soils; and (d) relatively high levels of geographic and economic

isolation.


Current Demoqraphic and Socioeconomic Characteristics

Madre de Dios is the least-populated department of Peru. With around 70,000

people living in more than 85,000km2, population density is 0.82 inhabitants per

square kilometer (INEI 1994: 15). Moreover, 57% of the population live in urban

areas, mainly in Puerto Maldonado. INEI (1994) found that the majority of the

population (65%) are Andean migrants.

The Peruvian National Agriculture Census determined that there are 5,597

farmers (productores agropecuarios) in Madre de Dios, whose landholdings cover a

total of 534,778 has (INEI 1995: 23). Average landholding size is 95.55 hectares and

the majority of landholders (77.9%) have 20 hectares or more (Table 3-2). However, it

is important to note that 37% of landholders control 84% of land (47).

Landholdings are mainly located along the rivers and the roads. The majority

(66%) of farmers have individual property titles, while 10% have communal land titles









(INEI 1995: 24). At the time of this research, a governmental land titling project

(PETT: Programa Especial de Titulaci6n de Tierras) had provided land titles to all

landholders living along the road that connects Puerto Maldonado and Mazuko.


Table 3-2. Farmers in Madre de Dios by Size of Holding


Farmers Surface
Size of Landholdings
N % has %

Less than 0.5 has 17 0.3 2.95 0.0
0.5 -4.9 has 496 8.9 1,109.21 0.2
5.0- 19.9 has 631 11.3 6,929.39 1.3
20.0 -49.9 has 2,274 40.6 73,058.15 13.7
50.0 has or more 2,083 37.2 450,733.25 84.3
Abandoned landholdings 96 1.7 2,945.00 0.6

Total 5,597 100.0 534777.95 100.0

Source: INEI 1995: 47.



In Madre de Dios, annual crops are much more important than perennials.

Productive landholdings encompass a total of 12,369 hectares of annual crops and

only 2,145 hectares of perennials (INEI 1995: 24). The principal annual crops are

rice, plantains, corn, and manioc. Rice is the most important commercial crop.

Perennial crops include fruit trees, rubber, and cacao (Table 3-3). Additionally,

farmers raise cattle, sheep, pigs, and chickens. Census data show that in 1993 there

was a total of 28,197 head of cattle in the whole department, Madre de Dios being

one of the departments with the smallest number in Peru.

Almost half of the landholders in Madre de Dios (46.4%) have pastures. A

total of 2,596 farmers grow 30,806.38 hectares of pasture, mainly Braquiaria (INEI











1995: 294). Here, again, most pastures and cattle are concentrated among

landholders that have larger tracts of land (Table 3-4).


Table 3-3. Agriculture and Livestock production in Madre de Dios


Principal annual crops (hectares)
Rice
Plantains
Maize
Manioc

Principal perennial crops (hectares)
Fruit trees
Rubber
Cacao

Livestock population (units)
Cattle
Sheep
Pigs
Chickens


4,222.33
3,147.44
2,591.14
2,407.97


1,623.75
304.75
216.00


28,197
4,230
13,655
180,297


Source: INEI 1995: 24.




Table 3-4. Pastures and Cattle by Size of Holdings


Pastures Cattle
Size of Landholdings Holdings Surface Holdings Herds
N I % Has % N % Head %

0.5 -4.9 has 20 0.8 18.10 0.1 19 1.2 56 0.2
5.0- 19.9 has 117 4.5 382.33 1.2 82 5.3 888 3.1
20.0 49.9 has 1,039 40.0 5,764.50 18.7 503 32.2 4,967 17.6
50.0 has or more 1,420 54.7 24,641.45 80.0 957 61.3 22,286 79.0

Total 2,596 100.0 30,806.38 100.0 1,561 100.0 28,197 100.0

Source: INEI 1995: 294, 457.










Demographic. Socioeconomic, and Political Processes Impactina the Cattle Sector


Although the cattle population in Madre de Dios is among the smallest of the

country, it presents relatively high growth rates compared to the national average

(Table 3-5). In 41 years, the size of the cattle herd in Peru increased 34%. In Madre

de Dios it became 20 times greater. Even in years where the country experienced

negative rates, the cattle population in Madre de Dios continued growing at a rapid

pace. For example, between 1985 and 1990 the national cattle population

experienced a slight decrease, while in Madre de Dios it increased in 49.4%.


Table 3-5. Cattle Population in Peru and in Madre de Dios


Total Peru Madre de Dios
Year
Head % variation Head % variation % vs Peru

1996 4,620,288 13.75 30,722 13.79 0.66
1994 4,061,685 (0.99) 27,000 35.00 0.66
1990 4,102,318 (0.19) 20,000 49.43 0.49
1985 4,110,009 (3.04) 13,384 26.26 0.33
1980 4,238,961 2.13 10,600 8.16 0.25
1975 4,150,400 0.56 9,800 15.29 0.24
1970 4,127,300 13.26 8,500 112.50 0.21
1965 3,644,000 (4.60) 4,000 60.00 0.11
1960 3,819,800 11.09 2,500 66.67 0.07
1955 3,438,400 1,500 0.04

Source: MINAG-OIA 1992, 1995, 1997.



What accounts for the increase in cattle ranching in the department of Madre

de Dios? Part of the answer can be found in the combined effect of two regional

processes combined to encourage the growth of the cattle sector in Madre de Dios.









First, before this decade, government's initiatives of credit for cattle contributed to the

increasing numbers of cattle in Madre de Dios. In the 90s, the government's,

grassroots organizations' and conservation NGOs' efforts to encourage alternative

land uses had a limited impact. Second, following Faminow's regional markets thesis

(1998, 1997a, 1997b), I hypothesize that the increase in the number of landholders

and rapid urban growth associated with the department's geographical and

economical isolation generated a growing regional demand for beef that encouraged

the growing production of cattle (Faminow 1997a, 1997b).

To understand what happened in Madre de Dios, it is important to have a

broader perspective, such as that provided by Rodriguez and Valcrcel (1994). I then

focus in Madre de Dios, describing the migration processes and the political and

institutional agrarian development in the region, noting the impact of these events on

cattle ranching (second and third parts). Finally, I use national and departmental

statistical data to address the role of regional markets in the development of the cattle

sector in Madre de Dios.


The Peruvian Amazon Region in the 20th Century

Rodriguez and Valcarcel analyze the process of insertion of the Peruvian

Amazon region in the nation's life, addressing perceptions, policies, and social and

productive processes (1994: 125). They identify five phases in the evolution of

perceptions and policies -and demographic and productive processes- regarding the

Peruvian Amazon region:

Before 1940: The Peruvian Amazon was considered an 'empty' region to be

colonized. The emphasis was on agriculture and extractive activities, mainly rubber.

There was also a geopolitical interest in integrating the Amazon to the rest of the









country, a factor that prompted the assessment and construction of transportation

means (Rodriguez and Valcarcel 1994: 135). Cattle were barely present in the

Peruvian Amazon Region. In 1941, the 3,766 cattle represented less than 1% of the

national total (0.16%).

1940-1960: From this period onward, the State tried to convert the rain forest

into a region that would (1) receive surplus population from the coast and highlands;

(2) provide raw materials; and (3) serve as the 'food larder of the country' ('la

despensa alimentaria del pals') (Rodriguez and Valc6rcel 1994: 138). The argument

encouraged 'spontaneous' migration into the upper rain forest by constructing new

roads and by distributing lands along these roads to colonists. Also, the State initiated

cattle ranching projects, encouraging this activity in the northern and central Peruvian

rain forest. The initiatives mainly benefited medium and large landholders (140).

1960-1970: The State, under a clearer process of capitalist modernization,

strongly encouraged the 'conquest' of the rain forest (see also Stronza 1996). This

goal responded to geopolitical interests, but also served to expand the agrarian and

demographic frontiers (Rodriguez and Valcdrcel 1994: 140). Although the State

promoted some directed colonization projects, spontaneous immigration to this region

was still the most important phenomenon (141). Agriculture and pasture lands

increased greatly during this period, and the cattle herd in the rain forest grew to

5.08% of the national total.

1971-1980: The reformist military government emphasized the improvement in

productivity and production levels of rice, maize, meat, and palm oil in the Peruvian

Amazon region. By that time, this region was the second most important receiver of

migrants in Peru and the agriculture frontier rapidly expanded. By 1979, the cultivated









land in the rain forest was greater than in the coastal areas. Cattle continued growing

in the region, reaching 8% of the national total (Rodriguez and Valcdrcel 1994:150).

Also oil and gold extraction were encouraged in the region. During this period, Madre

de Dios experienced a 'gold boom', and up to 5,000 impoverished Andean farmers

arrived to work along the rivers (152).

1981-1990: By this time, the majority of the population in the Amazon region

was migrants. Colonization and the expansion of the agrarian frontier were

encouraged through the construction of roads and the provision of land and credit

(Rodriguez and Valcarcel 1994: 153). During this period, the Amazon region received

23% of the credit provided by the Agrarian Bank (Banco Agrario), which was more

than the amount received by the highland region (157). Also, there were strong

subsidies to agriculture products, such as rice and maize. The Amazon region's

agricultural production was consolidated in this period and it gained national

importance (162).

It is important to note that, since 1940 the State and also the Peruvian people

visualized the Amazon region as an unpopulated by highly productive space to be

colonized. Waves of spontaneous immigrants were pushed to the upper and lower

rain forest by land scarcity (due to land concentration and poverty conditions) or due

to political violence prevalent in the highlands. They came to the Amazon region

looking for land and jobs, with the hope for a better life.


Migration. Policies, and Cattle Raising

Madre de Dios followed phases similar to the Amazon region, and the

development of the cattle ranching activity responded to these processes.

Unfortunately, there are few sources of secondary information on the history of the









region. Hence, most of the information provided here came from interviews with key

informants.

The department, founded in 1912, experienced waves of immigration since

1902, when people were attracted to the area by the rubber boom (Lanao 1998: 58).

Immigrants came mainly from other rain forest regions (54). But colonists also came

from Arequipa (on the coast), Puno, and Cuzco (in the highlands), led by a few

middle class and well educated families. In 1914, these families followed Colonel

Maximo Le6n Velarde in his project of colonization of Madre the Dios (Zambrano,

pers. comm.) After arriving, they found other natural resources to exploit besides

rubber, like Brazil nuts, timber, and gold. Around the 40s, some families from

Arequipa established the first cattle ranches. Traders and Brazil nut extractors

brought big cattle herds from Pampas de Mojos in Bolivia (Victor Zambrano, pers.

comm.; Palmer Pastor, pers. comm.). It seems that funds to bring cattle to Madre de

Dios came from Brazil nut extraction (Pastor, pers. comm.) In that time, there was the

first important expansion in the cattle population, which was the product of intensive

trade among Bolivia, Brazil, and Peru.

With the construction of the road that connects Puerto Maldonado and Cuzco

in the late 40s, there began an uninterrupted process of spontaneous and disorderly

immigration to Madre de Dios, which was mainly related to small-scale agriculture

and extractive activities. In the sixties, the Government of Fernando Belaunde

provided the first incentives for cattle ranching in Madre de Dios. The government's

agrarian agency SIPA (Servicios de Investigaci6n y Promoci6n Agraria) established in

Madre de Dios a cattle ranch to expand cattle raising and encourage the genetic










improvement of the herd. They introduced Santa Gertrudiz and Brahman breeds,

brought from Texas and Costa Rica, respectively (Jorge Coronel, pers. comm.).

The seventies witnessed "major migration from the southern highlands, Puno

and Cuzco," of people who were attracted to Madre de Dios by gold mining and also

were pushed out of their home areas by the economic depression of the highlands

(Lanao 1998: 54; see also Wahl 1998). However, apparently cattle continued to be in

the hands of only a few families, the ones who initiated this activity 30 years before.

The Military Government continued to encourage cattle ranching by managing state-

controlled ranches and introducing Nelore breeds, and by providing small credit

through the Agrarian Bank (Banco Agrario del Perd) (Jorge Coronel, pers. comm.).

During the eighties, the immigrants who came to Madre de Dios mainly from

Ayacucho and Huancavelica were fleeing "the political violence due to Sendero

Luminoso and the Government policy" (Lanao 1998: 54). Belaunde's government

continued providing credit for agriculture and cattle raising through the Agrarian Bank,

but it was only with Alan Garcia's government (1985 1990) that cattle raising

became a widespread activity in Madre de Dios (Jorge Coronel, pers. comm.).

Between 1987 and 1989, the Agrarian Bank imported directly from Sao Paulo and

Minas Gerais, Brazil, 2200 head of Gir-Holanda cattle. The Agrarian Bank provided

loans in the form of 'modules' of 10 female and 1 male animals to 'qualified' agents

(Palmer Pastor, pers. comm.). Theoretically, they had to have at least 10 hectares of

pasture, but there are some indications that part of the credit went to non-farm

activities (see also Stronza 1996). During that time, there was also a large private

cattle ranching project, in the hands of Eduardo Zanatti, who brought 600 head of









Nelore. However, this project failed few years later and the cattle were sold in the

local market, mainly as beef (Palmer Pastor, pers. comm.).

After 1990, following a neoliberal economic model, the government (now in

the hands of Alberto Fujimori) engaged in structural adjustment policies that ended

the subsidized commercialization of agriculture products. The Agrarian Bank was

closed and therefore the subsidized credit was stopped. Also, structural adjustment

included the stabilization of prices and interest rates, and the reduction of the State.

While the Agrarian Bank was not only a source of subsidized credit, it was the only

source of credit for small farmers in the rural areas of Peru because private banks did

not provide credit to small farmers for lack of collateral. Since 1990 the only

government support for cattle ranching has been, first, minor Rotatory Funds in hands

of the local Agrarian Agency (Direccion Regional de Agricultura Madre de Dios;

Agencia Agraria Tambopata) that benefit a few technological schools and cattle

ranchers (Jorge Coronel, pers. comm.). Second, the promotion of genetic

improvement through artificial insemination, also carried out by the Agencia Agraria

Tambopata. Third, the Madre de Dios branch of the National Service of Agrarian

Sanitation (Servicio Nacional de Sanidad Animal) carries out extension and training

activities related to cattle management and health care. All government programs

related to cattle ranching are concentrated in the areas close to Puerto Maldonado,

as are the big cattle ranches in Madre de Dios. This was related to the reduction of

state programs and to the strong relationships between the elite families in Madre de

Dios and those engaged in commerce and local politics.

Last year, due to the 1997 'El Niflo' events, the government allowed the

nationwide importation of cattle without paying taxes. However, this incentive had no









impact in Madre de Dios because the Ministry of Agriculture restricts the importation

of cattle from Brazil and Bolivia. The border regions of these countries present cases

of 'fiebre aftosa' -the contagious hoof and mouth disease that affects cattle- and

government officials are trying to avoid its penetration to Madre de Dios, the only

department in Peru free of this plague (Jorge Coronel, pers. comm.).

When I asked about the future of the cattle sector in Madre de Dios, there was

a strong consensus that cattle raising has to target both milk and beef production.

This type of cattle management is more intensive and profitable, but requires better

infrastructure, more labor, and more qualified management. Government officials

foresee that semi-extensive double-purpose cattle ranching will succeed only very

close to Puerto Maldonado, where transaction costs are relatively low (Jorge Coronel,

Palmer Pastor, Armando Muflante, pers. comm.). According to government officials,

better markets and prices are required for this model of cattle ranching to develop.

The review of the history of occupation and government policies in Madre de

Dios showed that cattle ranching began in Madre de Dios 50 years ago as a private

initiative, in hands of a small number of families. It became a more widespread

activity only in the late eighties, thanks to an initiative of the Agrarian Bank. The

nineties were characterized by the disappearance of almost all incentives to cattle

ranching and to the agriculture sector in general and by the reduction of State

intervention. The incentives to invest in cattle ranching in Madre de Dios after

1987/1988 can thus be attributed mainly to private initiatives.


Other Policy Initiatives in the Region that Affect Land-Use Outcomes

Tourism and conservation interests are important factors to be considered in

the analysis of the cattle sector in Tambopata, Madre de Dios. Encouraging









alternative land uses since the early nineties, they indirectly affect the decisions of

landholders regarding investment in cattle ranching. Second, the grassroots

movements have been very important in the region in the last ten years. These

organizations embraced sustainable development models, and became important

mediators between conservation interests and local landholders. To address this

issue, I will concentrate on the creation of the Tambopata-Candamo Reserved Zone

(TCRZ) and its consequences for the region's politics and economy.

Third, the departmental branch of the Ministry of Agriculture (Direcci6n

Regional de Agricultura; DRA-MDD) provides credit for agriculture and carries out a

reforestation program, in association with the International Timber Trade Organization

(ITTO). Fourth, the parroquia of Mazuko encouraged the cultivation of soybeans and

helped to create a local soybean industrialization and commercialization cooperative -

the Empresa Agroindustrial Inambari.

The TCRZ is a 1.5 million-hectare area that was created to protect the

Tambopata watershed. It was temporarily set aside in 1990 for future zoning into a

multiple use-protected area. The area holds the highest records for diversity in woody

plants, birds, butterflies, mammals, and dragonflies. It is also an area of substantial

cultural diversity, containing highland and Amazonian indigenous groups, and rural

mestizo inhabitants adapted to rain forest ecosystems (Conservation International

1997).

Due to strong pressure from the local population, after 1990 the Peruvian

government, local and international NGOs, and local organizations jointly carried out

a participatory process to decide on the future of this protected area. The process

included a series of workshops to raise conservation awareness in the communities









around the reserved zone. Also, important ecological and social research activities for

conservation and development were carried out in the reserve. The result in 1994

was a technical proposal for zoning the area as a biosphere reserve. The plan

included a strictly protected national park, a multi-use conservation area, and a buffer

zone dedicated to economic development. NGOs and the government were

committed to design an integrated conservation and development program in the

reserve (Conservation International I 1997; Piland and Varese 1997). Another result

of this process was that both the Peru Program of Conservation International (CI-

Peru) and the local agrarian federation (Federaci6n Agrara Departamental de Madre

de Dios -FADEMAD) gained a stronger presence in the region carrying out projects

with relatively large financial and technological resources, using a participatory

approach (see also Stronza 1996).

The Peruvian government was responsible for establishing the legal

framework for the zoning proposal through the creation of a permanent protected

area. However, a consortium of oil companies showed interest exploring and

exploiting hydrocarbons in the same area and this caused delays and changes.

Today, an oil concession has been granted to the oil companies' consortium and the

Bahuaja-Sonene National Park that was created occupies only one third of the

planned protected area. The TCRZ, which should have disappeared after the creation

of the strict protected area, will still exist for at least seven more years. This imposes

limitations to the development of productive activities in the planned buffer zone,

including some of the households living in the Santa Rita site. The activities of the

Park Rangers of the TCRZ have been mainly related to protection and vigilance

within the protected area. They constructed a Park Rangers' post in Santa Rita Baja,









but due to budget constraints their presence in the area is limited to a few visits

during the year.

The Peru Program of Conservation International and the local agrarian

federation (FADEMAD) began in 1995 to carry out a Conservation and Development

Program (PRODESCOT) in the region. Currently, it is carried out only by CI-Peru and

includes applied research, the development of sustainable forest resource

management alternatives, training in nutrition and health care, and participatory

community planning, all carried out with a participatory approach. Among the

communities included in this research, Santa Rita Baja is the only target of CI-Peru's

extension activities. The latter include participatory community planning workshops,

research on palms and wildlife use, and a pilot program on nutrition and health care.

FADEMAD manages a credit and training program. Both seek to encourage

more sustainable and profitable farming activities and target small farmers throughout

the region. In all the communities included in the study, some farmers made use of

FADEMAD's credit program and/or participated in FADEMAD's training workshops.

The department's branch of the Ministry of Agriculture (DRA-MDD) provides

small farmers with credit for seeds, fertilizers, and herbicides in the form of rotating

funds managed by local agencies. For the communities studied in this research,

DRA-MDD had a sub-agency in Santa Rita Baja and another in Laberinto, 50 km

West of Puerto Maldonado. The first serves communities in the Santa Rita site and

other neighboring communities. The farmers we interviewed in these communities

had easy access to the facilities and programs of this office. The sub-agency of

Laberinto serves a wider range of communities, and is located approximately 25 km

away from the communities in the San Bemardo site. Although closer to Puerto









Maldonado, farmers in the San Bemardo site thus confront greater difficulties in

obtaining access to the services provided by local Ministry of Agriculture's agency.

The Ministry of Agriculture's and the International Tropical Timber

Organization's (ITTO) reforestation project donates to the farmers seedlings of

valuable timber species, like Brazil nut (Bertholletia excelsa), mahogany (Swietenia

macrophylla), pashaco (Schizolobium amazonicum), and teca (Tectona grandis). This

is accompanied by palms and other non-timber forest products like pijuayo (Bactris

gasipaes), ungurahui (Jessenia sp.), aguaje (Mauritia flexuosa), pona (Iriartea

deltoidea), uria de gato (Uncaria sp.), and sangre de grado (Croton draconoides), as

well as perennial crops like coffee, cacao, and citrus. They also provide training and

technical assistance to the farmers. The project has only three technicians, each in

charge of covering an area of approximately 350 km2. Technicians thus have a limited

impact when considering all the landholders along the road (see also INRENA 1997).

The Empresa Agroindustrial Inambari (EAI) has an industrialization plant and

offices in Santa Rita Baja (128 km West of Puerto Maldonado), as well as offices in

Puerto Maldonado. It encourages the cultivation of soybeans and provides technical

assistance, credit in seeds, fertilizers, and herbicides, and tractor services to its

members. It is also a source of temporary employment for local people. Although EAI

has members all along the road, its actual influence is limited to the communities

located close to the industrial plant.

The community Santa Rita Baja thus has a concentration of several projects

and institutions. It hosts projects from PRODESCOT, its farmers receive credit and

training from FADEMAD, it houses an agency of the department's Ministry of

Agriculture, and is the location of the industrial plant and offices of the soybean









cooperative. Additionally, a Health Center and a Park Rangers Post are located in

Santa Rita Baja. The strong institutional presence in Santa Rita Baja is not casual.

This community has a long history of social organization and mobilization, that

resulted both in the creation of better services (like the health center) and is attracting

the attention of of different organizations in working with Santa Rita Baja, such as CI-

Peru, FADEMAD, and EAI.


Impacts of Policies and Proiects on Landholders' Land-Use Decisions

How did these policies and projects affect landholders' decisions regarding

cattle ranching? How did they affect landholders' land-use patterns? The household

survey addressed these questions by asking landholders if during the last year they

received credit, training, extension services, and donations. Follow-up questions

identified who provided the services and for what purpose. It turned out that the

presence of governmental and non-govemmental projects is much stronger in Santa

Rita than in San Bernardo (Table 3-6). Note that in Santa Rita more than three

quarters of the landholders received credit and extension services, and 64% received

some type of donations. In San Bernardo, however, two out of three landholders

received extension services and 57% received donations, but only 37% received

credit and 49% participated in training. These results could be expected from the

previous section, that depicted the strong institutional and organizational history of

Santa Rita. The findings thus confirm (and provide quantitative measures of) the

presence of some spatial inequalities in terms of access to key services that affect the

farmers' performance in the region.










Table 3-6.Households that Received Assistance in the Form of Credit, Visits of an
Extension Agent, Training, or Donations


San Bemardo site Santa Rita site T-test 11
Assistance
N Mean Std. Dev. N Mean Std. Dev. t P<|zl

Credit (1=yes) 35 0.37 0.49 37 0.86 0.35 4.953 0.00
Extension (1=yes) 35 0.66 0.48 37 0.38 0.37 1.784 0.08
Training (1=yes) 35 0.49 0.51 35 0.77 0.43 2.552 0.01
Donation (1=yes) 35 0.57 0.50 36 0.64 0.49 0.575 0.57

I/ Ho: mean (San Bemardo) mean(Santa Rita)=0.
= Significant at the 5% level; *Significant at the 10% level.
Madre de Dios-Peru, July-August, 1998.


The major part of landholders (91%) used the credit to finance agriculture and

purchase small farm animals, sometimes combined with logging (Table 3-7). Only 3

landholders used credit for cattle ranching or pastures. As noted earlier, the major

sources of credit are the Ministry of Agriculture and FADEMAD. The household

survey shows also that more landholders received credit in Santa Rita than in San

Bernardo. This result was statistically significant at 5% (Pearson Coefficient = 0.005)

and corroborates the findings described in the previous section. Technical assistance

is more evenly distributed among the two research sites, although in this case also

more households in the Santa Rita site received a visit from an extension agent.

Almost all institutions working in the region (SENASA, FADEMAD, and CI-Peru)

provided some kind of extension assistance for crops and reforestation in the form of

visits to the plots. The majority of the visits to the plots both in Santa Rita (61.3%) and

San Bemardo (39.1%) were related to conservation issues, including reforestation,

forest resource use, and nutrition and health care. Only five households in Santa Rita

and three households in San Bemardo received visits from SENASA to assist them

with raising cattle. Finally, training activities were concentrated either in conservation










issues (66.7% in Santa Rita) or in agriculture (52.9% in San Bernardo). Only three

households of Santa Rita received training regarding cattle raising. In conclusion,

regional and local policies and projects generated incentives for economic activities

that are alternatives to cattle raising. These included incentives for the production of

cash crops (rice and maize) as well as reforestation and perennial crops, and use of

non-timber forest products.


Table 3-7. Households According to the Type and Purpose of Assistance Received


Credit Extension Training
Variables
Variables Santa San Santa San Santa San
Rita Bemardo l Rita Bemardo Total Rita Bemardo Total

Cattle 1 2 3 5 3 8 3 0 3
Agriculture 23 2 25 5 5 10 5 9 14
Farm Animals 5 7 12 0 0 0 0 1 1
Agriculture and others 3 1 4 0 0 0 0 0 0
Conservation 0 1 1 19 9 28 18 3 21
Others 0 0 0 2 6 8 1 4 5

Total 32 13 45 31 23 54 27 17 44
Chi2 (Pearson) 14.9495 (0.005) 4.9959 (0.172) 16.2223 (0.003)

Madre de Dios-Peru, July-August, 1998.


These results suggest that one can expect that the alternative land-use

policies slowed the rate of clearing of new land for pastures. Also, assistance in the

form of credit, extension, and training is expected to positively affect the area of cash

crops planted, perennials, and the quantity of small farm animals raised in the

household. However, the results of simple correlation analysis are unexpected (Table

3-8). First of all, the relation between both credit and extension and new pastures

cleared is positive, rather than negative, as I expected. This means that farmers who










received credit and/or extension services cleared more land for pastures than those

who did not receive assistance. However, the relations are not statistically significant.


Table 3-8. Correlation Results: Assistance Received and Economic Activities


Credit Extension Training
Household factors
1=Yes 1=Yes 1=Yes

Pastures cleared (has) 0.175 0.034 -0.186
Rice planted (has) -0.128 -0.309 0.005
Soybeans planted (has) 0.266 0.171 0.206 *
Maize planted (has) 0.056 -0.304 -0.069
Perennials (has) 0.410 0.138 0.059
No. of chickens -0.070 0.163 -0.052
No. of pigs -0.053 -0.045 -0.224 *
Timber extracted (feet2) -0.034 0.149 0.066

** = Significant at the 5% level; "Significant at the 10% level.



There is an important debate concerning the effect that technical assistance to

ranchers may have on deforestation and sustainability. On one side of the argument

are those who maintain that technical and financial support for cattle ranchers will

lead to improved pasture management procedures. The latter, in turn, means that

fewer hectares of land will be cleared, since productivity on existing pastures is

expected to rise (SerrAo and Homma 1993). Critics of this position claim the opposite.

For example, Feamside (1999: 9) argues that technical inputs into cattle ranching

only makes the venture more profitable, which leads ranchers to expand their

activities into new areas. Hence, technical and financial assistance leads to more

rather than less deforestation.









The controversy addresses a fundamental dilemma in the field of sustainable

development for its highlights the nature of the conflicting goals. If development

means an increase in productivity (via credit and technical assistance), the result (at

least for cattle) may be to promote more deforestation and potentially less sustainable

forms of production.

The results for the cultivation of rice and maize were also unexpected: the

relation between these cash crops and credit, extension, and training are negative

rather than positive, as I expected. Correlations show that farmers who received any

of these types of assistance planted fewer hectares of cash crops than farmers who

did not. Soybeans, on the other hand, behaved as expected. Farmers who received

credit, extension assistance, and training, planted more soybeans than those who did

not. The results are statistically significant at 10% only for credit. Small farm animals

did not behave as expected either, and timber logging did not present significant

relationships.

Therefore, the majority of landholders received incentives for alternative land

uses to cattle raising. However, correlation results show little and contradictory

relations between these instruments and cash crops cultivation, perennials, small

farm animals rising, and timber logging. These results can be explained by (1)

deficient data collection; (2) the fact that assistance in the form of credit, extension,

and training have little impact on the land-use decisions of the interviewed

landholders;1 or (3) a more complex relation between technical assistance and

farmers' land-use decisions than correlation analysis is able to address.



1 Toni (1999: 231-234) found similar results for the Altamira region in the Brazilian
Amazon. Contrary to its original objectives, a credit program for small landholders contributed
to the expansion of cattle in the area.










Development of Regional Beef Markets and the Cattle Sector

Merle Faminow (1997a: 1) proposes that the growing regional demand for

cattle-based products, combined with the geographical and economic isolation of the

region from the rest of the country, is the driving force behind the expansion of cattle

ranching in Brazil.

The urban population and income growth created large markets in the
Amazon for products derived from cattle, markets that could only be
served from surplus regions located a long distance away and serviced
by an uncertain and costly marketing system. The cattle production
and processing sector in the Amazon quickly filled this market
opportunity. (Faminow 1997a: 2)

Government road building projects, colonization incentives, and investment

subsidies in the Amazon region attracted migrants, many of whom settled in urban

areas. As a result, the demand for food products increased significantly, leading to

higher prices for local cattle-products. The price rise made it profitable to raise cattle

for local markets, which promoted the expansion of the cattle herd (Faminow 1998:

126; see also Faminow 1997a).

Madre de Dios seems to have experienced a similar process. The department

is isolated from the rest of the country, but experienced very high population growth

rates, mainly due to immigration. The cattle sector also grew at a very high rate, as

did the amount of beef produced in the main cities of Madre de Dios.

Despite being the least densely populated department in Peru, Madre de Dios

experienced very high population growth rates, much higher than the national

average. Table 3-9 shows that population growth in Madre de Dios is accelerating

since the 1972 Census. According to the Census results, Madre de Dios presented

the highest population growth rates of the country, even above the other rain forest











departments and the city of Lima (INEI 1994: 195). Figure 3-3 also depicts the faster

population growth of Madre de Dios, as compared to the country.


Table 3-9. Census Data on Population Growth in Peru and Madre de Dios



Inter-census annual average
Po n growth rate
Year
Total Madre de % of the Madre de Ranking
Dios country Dios 1/


1940 6,207,967 4,950 0.08 -
1961 9,906,746 14,890 0.15 2.3 5.4 2nd
1972 13,538,208 21,304 0.16 2.9 3.3 7th
1981 17,005,210 33,007 0.19 2.6 5.0 1st
1993 22,048,356 67,008 0.30 2.2 6.1 1st


1/ Expresses Madre de Dios' position among Peru's departmental population growth rates.
Source: INEI 1994: 23, 195.


Peru 1970 -1991 (thousands)

25000
20000
15000
10000
5000
0



Source: MINAG-OIA 1992: 69-70.


Figure 3-3. Population in Peru and Madre de Dios: 1970 1991


Madre de Dios 1970 1991 (thousands)


Or- CN- Or. 'COO CNO
M = M M- go










An important component of population increase is related to immigration, as

noted above. For example, between 1976 and 1981, the net immigration rate to

Madre de Dios was 4.5, again the highest rate of the country (Cu6nto 1991: 120).

The settlement pattern is also a very important feature of demographic

processes. In Madre de Dios, the majority of the population became concentrated in

urban areas, which also grew at a very high rate. Since 1961, the urban areas of

Madre de Dios grew at annual rates between 7.3 and 7.6, while rural areas' growth

rates were 4.4 or less (Table 3-10). Within urban areas, population growth in Madre

de Dios is concentrated in Puerto Maldonado, the capital of Madre de Dios, where

newly arriving migrants found work in the service sector. A very popular job for them

is to work as 'taxi' drivers, taking people in the back seat of rented 70HP motorcycles.


Table 3-10. Census Data on Urban and Rural Population Growth in Madre de Dios


Inter-census annual
Population
Year average growth rate
Total Urban Rural Urban Rural

1940 4,950 1,306 3,644 -
1961 14,890 3,783 11,107 5.2 5.5
1972 21,304 8,499 12,805 7.6 1.3
1981 33,007 15,960 17,047 7.3 3.2
1993 67,008 38,433 28,575 7.6 4.4

Source: INEI 1994: 24.



Immigration and the growth of urban areas set the conditions for the

development of a large market for food, and especially cattle-based products. The

other two conditions for the development of a regional beef demand strong enough to











encourage the growth of the cattle sector are higher levels of regional income and the

already described geographic distance of the department's markets, that significantly

increases the costs of transportation and marketing. Stronza recorded a local

producer's impressions of the beef market in Madre de Dios:

When I first came to Madre de Dios in the 1980's, the price for beef
was very high. I recall seeing stamps on the packages that indicated
the meat had been imported from New Zealand and Argentina. People
stood in long lines just to buy one kilo of meat. Then the government
began to provide incentives for raising cattle. (1996: 37)

The increased demand for beef, paired with credit incentives from the

government, prompted landholders in Madre de Dios to engage in cattle ranching,

increasing the number of cattle in the department. Figure 3-4 shows a clear growing

trend of the cattle sector since 1955.




Madme d Dio 1955- 190 Madre DeDios 19 01996






360Soure: MAGO0 992:522-52, 199: 5501995 997:
F300i e 300Cat

















de Dios is the amount of beef that the urban areas absorb from the cattle sector. If
increasing cattle population responds to urban demand for beef, then beef production
should grow at a similar pace as the cattle population. Beef production in
1S00 15.000

50W 500W


Source: MINAG-OIA 1992: 522-524, 1994: 565, 1995: 13, 1997: 16.


Figure 3-4. Cattle Population Growth in Madre de Dios



Another indication that Faminow's thesis may be applied to the case of Madre

de Dios is the amount of beef that the urban areas absorb from the cattle sector. If

increasing cattle population responds to urban demand for beef, then beef production

should grow at a similar pace as the cattle population. Beef production in











slaughterhouses is a good way to proxy this concept, because in Madre de Dios,

slaughterhouses exist only in urban areas. Figure 3-5 depicts an almost constantly

increasing trend of beef production, which is closely related with an increasing

demand for beef products in urban areas. The correlation coefficient between beef

production and cattle population in Madre de Dios between 1972 and 1996 was very

close to one (0.85), corroborating the hypothesis. Additionally, the slaughterhouses of

Puerto Maldonado produced the major part of the beef produced in the department,

which accords with the fact that population growth in the department is also

concentrated in this city (Figure 3-6).


Source: INEI 1994: 106, MINAG-OIA 1998: Cuadro N.5.


Figure 3-5. Beef Production in Slaughterhouses in Madre de Dios 1972 1997 (tons)


900 -
800
700
600-
500-
400-
300-
200 |
100
0)
01


10 a .IJ CO ,
1 Go~ r ~























83%


E3 Puerto Maldonado
* Iberia
* Mazuko
O3 Laberinto
OOtros


Source: MINAG-OIA 1998: Cuadro No. 29.


Figure 3-6. Beef production in Madre de Dios, per Urban Center (tons)


400














CHAPTER 4
HOUSEHOLD-LEVEL DETERMINANTS OF CATTLE RAISING AMONG FARMERS
ON THE PUERTO MALDONADO-MAZUKO ROAD


This chapter addresses the household characteristics that influence their

economic strategies and shape production systems and land-use patterns in the

Southern Peruvian Amazon region. The starting point is recognizing that landholders

in the Amazon region engage in diversified, integrated production systems. So, each

economic activity and associated land use (e.g., cattle raising) plays a particular role

within the production system, which contributes to shape the ways this activity is

carried out.

This chapter aims, first, to describe the local farmers' production systems and

the conditions under which these systems are developed. The chapter then focuses

on cattle ranching and assesses household-level determinants of this type of land

use.

Among the most important internal household factors influencing farmers'

production systems is the geographic location of the household (section one) and its

main demographic, cultural, and socioeconomic features (section two). As previously

shown, geographic location -or village effect- is a striking variable that critically affects

access to the market, access to government and non-government assistance, and

the history of land occupation. Section three describes in detail local production

systems. Section four focuses on cattle ranching and its role within the farm. Finally,

section five uses statistical and regression analysis to discuss the impact of

household-level characteristics on landholders' decisions to invest in cattle. The most

54









important household characteristics include the geographic location, market and

policy accessibility; labor availability; family life cycle; ethnicity; education; size of land

holdings; and time of settlement. Capital availability and income levels are also

important explanatory variables of investment in cattle. However, the effects of capital

and income must be interpreted with caution due to the problem of endogeneity. In

other words, it is the presence of cattle on the farm that could lead to increases in

capital and income rather than the other way around. The endogeneity problem

means that, with cross-sectional data, it is very difficult to discern the causality

relation between current number of cattle and present levels of income or capital

accumulation.

For this chapter I used mainly household survey data, complemented with

qualitative information gathered during fieldwork. I divided the sample in two sites: (1)

San Bernardo, located between the 23r and the 37t kilometer markers of the road

connecting Puerto Maldonado and Mazuko, and (2) Santa Rita, located between

markers 128 and 137 of the same road (for more detailed discussion, see Chapter 2).

The purpose of this division is to highlight the differences associated with (a) a better

access to the market and a longer time of occupation, and (b) a greater level of

community organization.



San Bemardo and Santa Rita Research Sites


The San Bemardo Site is located between Puerto Maldonado -the

department's capital and Laberinto. Laberinto is both a gold mining town and a port

on the Madre de Dios River, constituting an important travel center for the region.

Gold miners and farmers that live in the Upper Madre de Dios travel by boat to










Laberinto and then by van (combi) or by truck to Puerto Maldonado. So, the

households living in the San Bernardo site benefit from a continuous and frequent

service of vans and trucks that provide transportation for people and products. A

ticket can cost up to S/. 5.00 per person, including baggage, and the trip takes

approximately one hour and twenty minutes. Trucks and vans service these

communities several times a day, and it is very common for the people living there to

go to the city to buy and sell products, to do paperwork, or simply to spend the day.

There are elementary schools in each community, but the closest health

center and office of the Ministry of Agriculture are in Laberinto or in Puerto

Maldonado. Also, the interviews with the Ministry of Agriculture officials showed that

their extension and credit programs are reduced to the areas close to their offices.

The situation is very different for the households located in the Santa Rita site.

The closest city is Mazuko, which is approximately two hours and thirty minutes away.

Mazuko once supplied agricultural products to the gold mining activities in the near

areas. But gold mining in that area has converted from an almost purely manual

activity to the widespread use of bulldozers and motor water pumps. Due to this

technological change, mining companies require fewer workers (Arbex 1997: 26). In

recent years, Mazuko is no longer the main market for the local farm products and

landholders in the Santa Rita site had to turn to Puerto Maldonado to sell their

products. Several farmers complained about this, expressing their preoccupation

because their ability to sell products to the market had been significantly reduced. A

farmer from Santa Rita Baja told us

Ahora la minerla es pura maquinaria, ya no ocupa gente. Ya no Ilevan
viveres. Antes se vendia cualquier cantidad de comida.

Now mining is done with machinery, it does not use people anymore.
They do not buy food anymore. Before we sold lots of food.









In the dry season, the trip from Santa Rita site to Puerto Maldonado takes

eight hours by van. The average charge is S/. 20.00, but it is difficult to get a seat in

the van because there is only one van a day, which sometimes arrives from Mazuko

already full. If the farmer boards a truck, the trip can take between fourteen and

eighteen hours, but the ticket costs only between S/. 7.00 and S/. 10.00, depending

on the amount of baggage. Also few trucks pass this way during the day. The

situation is much worse in the rainy season, when the road deteriorates and the costs

are nearly doubled.

However, as described in the previous chapter, the community of Santa Rita

Baja has a long history of grassroots organization and there is a strong institutional

presence, both governmental and non-governmental. The community houses a sub-

office of the Ministry of Agriculture, a park rangers' post, a Health center, a soybean

cooperative, and research and extension projects of CI-Peru. It also contains a

literacy program and an elementary school. There is no secondary school in Santa

Rita Baja. The stronger institutional presence in Santa Rita Baja explains why more

households in the Santa Rita site, although being further away from Puerto

Maldonado, received assistance from governmental or non-governmental institutions.

Local people from Santa Rita still confront serious difficulties to market their

agriculture products.



Internal Characteristics of Households


This section describes the main characteristics of the households settled

along the Puerto Maldonado-Mazuko road. Together with biophysical and









socioeconomic incentives, the household characteristics shape the economic

strategies and the decisions to invest in cattle.

Household composition is key to address labor availability issues, since labor

is one of the most important limiting factors of production in frontier conditions (Pich6n

1997, 1996; Alston 1995). Also, the origin and cultural background of the farmers may

influence their relation to the land and their choices regarding production and land

use (Pich6n 1997: 117; Chicch6n et al. 1995). For example, Andean people with a

long agrarian tradition think of a 'productive' land as agricultural land, in contrast to

people native to the rain forests, who value the standing forest (Chicch6n et al. 1995).

The migration history will provide important information on the previous working

experience of the farmers and their ability to accumulate capital, prior to acquiring the

plot (Pich6n 1997). Human capital variables are widely recognized as important

explanatory variables of production and land-use outcomes (Kaimowitz and Angelsen

1998; Pich6n 1997). Finally, production strategies and land-use patterns in the

Amazon region may also be influenced by the property rights regime (Alston 1995;

Wood 1996) and the capital endowments of the households-including plot size,

forest resources availability, and capital goods such as chain saws, motorcycles, and

bicycles-(Kaimowitz and Angelsen 1998; Pich6n 1997; Gironda 1998).


Household Composition and Labor Availability

The settlers living along the Puerto Maldonado-Mazuko road constitute a

relatively young population. Almost 44% of the people inhabiting these communities

are below the age of 13 (Table 4-1). The relatively low number of children between

ages 13 and 16 in the communities is partly explained by the fact that a total of 82

children of this age attend secondary school in Mazuko or Puerto Maldonado.










Sending the children to study is a big investment for the local farmers, because they

have both to bare the loss of part of the household labor as well as pay for their

children's maintenance in the city.


Table 4-1. Sample Population by Sex and Age Group


Male Female Total
N % N % N % Cumm. %

0-5 23 14.2% 35 22.0% 58 18.1% 18.1%
6 12 40 24.7% 42 26.4% 82 25.5% 43.6%
13-16 10 6.2% 3 1.9% 13 4.0% 47.7%
17 + 89 54.9% 79 49.7% 168 52.3% 100.0%

Total 162 100.0% 159 100.0% 321 100.0%
% 50.5% 49.5% 100.0%

Madre de Dios-Peru, July-August 1998.



Average household size is 4.5 people (SD=2.10), with 2.1 children under 17

years and 2.4 adults (Figure 4-1). Additionally, households have on average 2.25

males (SD=1.46) and 2.21 females (SD=1.448). These numbers are relatively small

compared to the size of land that farmers in this area manage 64.3 hectares on

average (SD=30.66). Labor is therefore an important constraint on production. Also,

several farmers complained that sometimes they could not clear more land because

they "did not have time" before the rainy season arrived. Others told us that they lost

part of their crops because they couldn't harvest all before it rotted. Hired labor is

scarce and expensive (Arbex 1997), beyond the means of local farmers. For

example, a contract for slashing one hectare may cost between S/. 500 and S/. 700












(US$ 260 365), and daily work costs S/. 12 15 for agriculture work and more than

S/. 20 for slashing.


Age Groups for Total Sample
0.81


2.331.14 13-16
0.18 017+

Avg. household size = 4.5 (SD=2.10)



Age Groups for San Bemardo
0.71


2.15 E1 -16
0.09 017+

Avg. household size = 4.05 (SD=1.83)


Age Groups for Santa Rita

0.92 NO-5
06-12
2.41 14- -16
0.24 017+

Avg. household size 4.71 (SD-2.13)

Madre de Dios-Peru, July-August 1998.


Sex for Total Sample


2.21
2.25
Sale
0 female



Sex for San Berardo


1.94
2.09

*male
female



Sex for Santa Rita




51%
*male
Female


Figure 4-1. Average Household Composition by Age Group, Sex, and Research Site




Both San Bemardo and Santa Rita sites present similar household

compositions in terms of gender and age, but households in San Bernardo have on

average fewer children than those in Santa Rita. Additionally, San Bemardo

household heads are on average older than those in Santa Rita (Table 4-2).










Table 4-2. Household Heads Age by Sex and Research Site


Total Sample San Bemardo Santa Rita
Age groups
N % N % N %

Male
Less than 35 16 24.6 7 20.0 9 30.0
36-45 25 38.5 11 31.4 14 46.7
46-55 11 16.9 8 22.9 3 10.0
More than 55 13 20.0 9 25.7 4 13.3

Total 65 100.0 35 100.0 30 100.0

Average 43 45.0 40.7
Std. Dev. 11.9 12.5 11.1

Female
Less than 35 14 26.9 6 23.1 8 30.8
36-45 23 44.2 13 50.0 10 38.5
46-55 9 17.3 4 15.4 5 19.2
More than 55 6 11.5 3 11.5 3 11.5

Total 52 100.0 26 100.0 26 100.0

Average 38 38.8 37.2
Std. Dev. 10.6 10.0 11.4

Madre de Dios-Peru, July-August, 1998.



On average, male household heads in San Bemardo are 45 years old, 4.3

years older than male household heads in Santa Rita. Also, female household heads

in San Bemardo are on average 1.6 years older than those in Santa Rita. This

corroborates previous findings that San Bemardo site has been settled some years

before the Santa Rita site. Also, it seems that households in the San Bemardo site

are 'older'--i.e., they have more adults relatively to children and therefore more labor

force.










Ethnicity and Human Capital

The main languages spoken in the region are Quechua, Aymara, and

Spanish, none of them native to the region. The mother tongue of the vast majority of

landholders (87.9%) is Quechua, although 36.4% of interviewees learned Quechua

and Spanish at the same time (Table 4-3). Today almost everybody speaks Spanish.

In the analysis that follows, I will use language as an indicator of ethnicity of local

landholders.


Table 4-3. Household Head's Mother Tongue by Sex (Total Sample)


Male Female
Mother Tongue
N % N %

Quechua 34 51.5 39 60.9
Aymara 1 1.5 1 1.6
Spanish 7 10.6 9 14.1
Quechua and Spanish 24 36.4 15 23.4

Total 66 100.0 64 100.0

Madre de Dios-Peru, July-August, 1998



When the two sites are considered, the survey results show that the majority

of household heads in San Bemardo speaks Quechua. In Santa Rita, however, the

majority of household heads learned both Quechua and Spanish at the same time.

I found similar results regarding the ethnic origin of the household heads'

parents. For more than 80% of the household heads, the parents' mother tongue is

Quechua. But, again, more than 80% of the interviewees (86.8% of males and 81% of

females) reported that at least one of their parents spoke Spanish. These findings









indicate that this is a population with a strong Quechua heritage, but one that has

also incorporated the national language.

The acquisition of the national language could imply a relatively high level of

incorporation in the market and the national society. Additionally, the most important

ethnic difference between the two research sites is expressed by the fact that in San

Santa Rita, most household heads learned both Quechua and Spanish. In San

Bernardo, however, the majority of household heads' mother tongue is only Quechua.


Table 4-4. Years of School Completed by Household Heads, by Sex


Years of School Male Female
Reached N % N %

0 2 3.0 19 29.7
2-6 43 64.2 32 50.0
7-11 15 22.4 13 20.3
More than 11 7 10.4 0 0.0

Total 67 100.0 64 100.0

Madre de Dios-Peru, July-August 1998



Among local landholders, illiteracy is greater than 30% for both male and

female household heads. More male household heads received education, and for

longer time. On average, the maximum number of years of schooling completed is 6.7

(SD=3.2) for male household heads and only 4.2 (SD=3.3) for the females. Both

research sites present similar results. Additional, only two of the male interviewees

never attended school, while 29.7% of the female household heads never attended

school (Table 4-4 above). Finally, 35.8% of male household heads completed

elementary school (6 years) and another 32.8% continued studying. Only 25% of









female household heads completed 6 years of school, only 20.3% continued their

studies in secondary school, and none went beyond that level.


Origins and Migration History

Birthplace is another indicator of the landholders' ethnicity. The vast majority

of household heads in the sample are migrants that arrived from the highlands. Only

16.4% of male household heads and 17.7% of the females were bor in Madre de

Dios (Table 4-5). Immigrants were bon mainly in the southern Peruvian highlands

(Cuzco, Puno, Ayacucho, and Apurimac) and a small proportion was bor in the

coastal region. As can be expected, the majority of household heads' parents were

born also in the southern Peruvian highlands. These results indicate that the cultural

background of the studied landholders is mainly Andean.

The data also show that the majority of landholders present a complex

migratory trajectory (Pich6n 1997; Chicch6n et al. 1997; Arambur( et al. 1982;

Martinez 1969). Most did not migrate directly from their birthplace to their current

plots (Table 4-6). Only 25.5% of the male landholders reported that they came

directly to their current communities; 53.2% previously lived along the road

connecting Puerto Maldonado and Mazuko; 10.6% lived in Puerto Maldonado; and an

additional 10.6% lived in the gold mining region. Female household heads showed

the same pattern, with only 20.9% coming directly from their birthplaces. This shows

that, generally, the population living along the road Puerto Maldonado Mazuko

acquired a plot only after living some years in the area.










Table 4-5. Household Heads' Birth Place, by Sex (Total Sample)


Male Female
Birth Place
N % N %

Madre de Dios: Puerto Maldonado 7 10.4 8 12.9
Madre de Dios: Puerto Maldonado-Mazuko Road 2 3.0 3 4.8
Madre de Dios: Inambari 2 3.0 0 0.0
Cuzco: Highlands 30 44.8 31 50.0
Cuzco: Lowlands 2 3.0 4 6.5
Puno, Ayacucho, and Apurimac 17 25.4 12 19.4
Coast 7 10.4 4 6.5

Total 67 100.0 62 100.0

Madre de Dios-Peru, July-August 1998.







Table 4-6. Place where Household Heads Have Lived Before Arriving to Their Current
Plot, by Sex (Total Sample)



Place Where Household Head Has Previously Male Female
Lived N % N %


Madre de Dios: Puerto Maldonado 5 10.6 4 9.3
Madre de Dios: Puerto Maldonado-Mazuko Road 25 53.2 27 62.8
Madre de Dios: Inambari 5 10.6 3 7.0
Cuzco: Highlands 6 12.8 4 9.3
Cuzco: Lowlands 2 4.3 2 4.7
Puno, Ayacucho, and Apurimac 4 8.5 3 7.0

Total 47 100.0 43 100.0

Madre de Dios-Peru, July-August 1998.



On average, male household heads lived 10.3 years in Madre de Dios before

occupying their current plot (SD=9.20); this number is 8.4 years for female household











heads (SD=9.15). It is important to note that, although the San Bernardo site has a

longer history of occupation, landholders in the Santa Rita site needed less time in

Madre de Dios before acquiring their current plot (Table 4-7).


Table 4-7. Age of Household Heads, Years Living in Madre de
in the Plot, by Sex and Research Site


Dios, and Years Living


Total Sample San Bemardo Santa Rita
Variables
N Mean Std. Dev. N Mean Std. Dev. N Mean Std. Dev.

Male

a. Age 65 43.00 11.87 35 44.97 12.32 30 40.70 11.08
b. Years in M. de D. 66 24.99 13.14 33 28.18 13.10 33 21.79 12.57
c. Years in the Plot 68 14.52 11.59 35 16.27 12.97 33 12.67 9.77
d. ( b c) 66 10.34 9.20 33 11.56 9.78 33 9.12 8.55


Female

a. Age 62 38.00 10.57 32 38.78 9.90 30 37.17 11.36
b. Years in M. de D. 62 21.52 11.21 31 23.55 11.44 31 19.48 10.78
c. Years in the Plot 64 12.89 9.56 32 13.13 9.40 32 12.66 9.86
d. (b c) 62 8.44 9.15 31 10.39 10.12 31 6.48 7.73

Madre de Dios-Peru, July-August, 1998.


What did they do in Madre de Dios before coming to their present location?

The data showed a great diversity: 10.4% of male household heads worked in gold

mines; another 37.4% were workers (jomaleros) in agricultural or extractive activities -

timber logging, Brazil nut extraction, rubber tapping (shiringa); 31.4% had another

plot for agriculture and/or timber; and another 20.8% was previously dedicated to off-

farm occupations -mainly trading or negocio (Table 4-8). Some couples migrated

together from the highlands and others met in Madre de Dios. Therefore, female

household heads' previous occupations have a different structure. More than half

(55%) of them had lived previously in their own plot or with their parents, while only









5% worked in gold mines and 31.7% were workers on other farms. Only 8.3% had a

business and none had another off-farm job.


Table 4-8. Previous Occupation, by Sex (Total Sample)


Male Female
Activity
N % N %

Agriculture 9 13.4 20 33.3
Agriculture and timber logging 12 17.9 13 21.7
Worker in agriculture 16 23.9 14 23.3
Worker in an extractive activity 6 9.0 4 6.7
Gold mining 10 14.9 4 6.7
Trading 7 10.4 5 8.3
Other off-farm work 7 10.4 0 0.0

Total 67 100.0 60 100.0

Madre de Dios-Peru, July-August, 1998.



The data show that only about one-third of the household heads (male or

female) maintain strong ties to their birthplace. This is reflected in the fact that only

about 30% of household heads traveled at least once to the highlands during the last

year (July 97 July 98). This may be due to the difficult economic situation the

migrants face, being unable to pay the cost of the trip. Those who return to their

birthplaces do so for many reasons: to visit the family, to participate in local

celebrations, and due to health problems. Also, some male household heads traveled

to the highlands to buy and/or sell products and to find work.






68



Assets and Capital Accumulation

To assess the level of capital accumulation among the landholders in the

Puerto Maldonado Mazuko road, I asked them for a list of assets. The most

important resulted to be radios, bicycles, motorcycles, chainsaws, and latrines.


Table 4-9. Households that Own Assets, by Research Site


San Bemardo Santa Rita T-test 11
Variables
N Mean (%) Std. Dev. N Mean (%) Std. Dev. t P<|zi

Radios (1=yes) 35 0.89 0.32 36 0.89 0.32 0.041 0.97
Bicycles (1=yes) 35 0.40 0.50 36 0.72 0.45 2.853 0.01
Motorcycles (1=yes) 35 0.37 0.49 36 0.11 0.32 -2.660 0.01
Chainsaws (1=yes) 35 0.51 0.51 36 0.67 0.48 1.303 0.20
Latrine (1=yes) 35 0.51 0.51 36 0.75 0.44 2.096 0.04

1/Ho: mean(San Bemardo) mean(Sant Rita)=0.
= Significant at the 5% level; *Signcant at the 10% level.
Madre de Dios-Peru, July-August 1998.



Almost all landholders (88.7%) have at least one radio, while relatively few

have motorcycles (23.9%). Additionally, more than half of landholders have

chainsaws (59.2%) and latrines (63.4%). A preliminary analysis (Table 4-9 above)

showed that research site makes a significant difference regarding landholders'

availability of own transportation means (bicycles and motorcycles) and latrines. In

San Bernardo, 37% of the households have a motorcycle while in Santa Rita only

11% have (significant at 95%). In contrast, the majority of landholders in Santa Rita

(72%) have at least one bicycle and only 40% of households in San Bernardo have

one. These results could be related to the fact that San Bernardo is closer to Puerto

Maldonado and therefore a motorcycle is a good investment because it allows

landholders to go to the city. Also, more vans and trucks pass through San Bernardo.






69



In Santa Rita, however, there are much less transportation means and bicycles have

an important role.

Latrines are an indicator for households' sanitary conditions and, more

generally, quality of life. The survey showed that 75% of households in Santa Rita

have latrines, while 51% of household in San Bernardo have (significant at 95%).

These results could be due to the fact that households in Santa Rita are better

organized than households in San Bernardo and therefore received more assistance

for sanitation.


Table 4-10. Households that Own Assets, by Cattle Owning


Cattle owners Non cattle owners T-test 11
Variables
N Mean (%) Std. Dev. N Mean (%) Std. Dev. t P
Radios (I nyes) 39 0.92 0.27 32 0.84 0.37 -1.045 0.30
Bicycles (1=yes) 39 0.56 0.50 32 0.56 0.50 -0.013 0.99
Motorcycles (1=yes) ** 39 0.36 0.49 32 0.09 0.30 -2.701 0.01
Chainsaws (1=yes) ** 39 0.69 0.47 32 0.47 0.51 -1.929 0.06
Latrine (1=yes) 39 0.69 0.47 32 0.56 0.50 -1.124 0.27

1/Ho: mean(San Bemardo) mean(Santa Rita)=0.
* = Significant at the 5% level; *Significant at he 10% evel.
Madre de Dios-Peru. July-August 1998.



Due to the ample impact of research site on the different aspects of the local

population life, this variable can confound which landholders are really better off.

Therefore, I divided the sample between cattle owners and landholders that do not

raise cattle, under the assumption that cattle are a form of capital accumulation. I

then analyzed the distribution of assets among local households. Table 4-10 above

shows that radios, bicycles, or latrines are not significantly associated with the

ownership of cattle. However, more cattle owners have motorcycles and chainsaws

than non-cattle owners do. While 36% of cattle owners have a motorcycle and 69%









have at least one chainsaw, only 9% of landholders that do not raise cattle have a

motorcycle and 56% have chainsaws.



Economic Strategies, Production Systems, and Land-Use Patterns


In the previous sections, I described the household's main internal

characteristics that contribute to shape landholders' economic strategies and land-

use patterns. This section will describe local farmers' production systems as a whole.

The next section focuses on cattle raising. The final section seeks to establish the

relation between household characteristics and cattle raising outcomes.

Landholders along the road that connects Puerto Maldonado and Mazuko

have a diversified portfolio of economic activities. It is a combination of agriculture,

timber logging, raising small farm animals, cattle ranching, and off-farm work. The

relative importance of each activity depends on different factors and reflects the way

farmers

make decisions about production in relation to available human and
natural resources, balance opportunities against constraints, cope with
uncertainty and risk, and deal with the 'outside world', however
defined. (Pich6n 1997: 712).

This section will first present the different land uses observed in the survey-

pastures, agriculture (annuals and perennials), fallow (purma), and old growth forest.

I then discuss in more detail the different economic activities of the households

(agriculture, small farm animals, timber logging, off-farm work, and pastures and

cattle raising). I will return to analyze the total production system, analyzing labor

allocation through the year and among household members, and perceptions of

relative costs and profitability of the different land uses.










Land Distribution

Landholdings range from 18 to 150 hectares in size, but tend to be smaller in

San Bernardo than in Santa Rita. This may be related to the fact that the first section

of the road has a longer history of settlement.

Land distribution within the landholdings also varies significantly according to

the research site (Figure 4-2). The main difference is the amount of old growth forest

that still remains in the plots. On average, the plots located in Santa Rita have 4 times

more forest than the plots located in San Bernardo. This means that they have also

more forest -mainly timber- resources. At the same time, the plots located in San

Bernardo have almost 5 times more pasture than the plots in Santa Rita.



San Bemardo Santa Rita
0% 0%
1% Forest 1% Forest
5% MFallow 0 Fallow
S20st% 6% 4% EPastures
rAnnuals 24% OAnnuals
s Perennia Perennials
38% Irrigated 6% irrigated

Avg. plot size = 57.2 has (SD,29.01) Avg. plot size = 71.32 has (SD.31.04)

Madf de Dios-POeu, July-Agust, 1998.


Figure 4-2. Average Land Distribution, by Research Site



The numbers for annual and perennial crops are similar, but Santa Rita

presents a greater area of mechanized land. There, four farmers plowed a total of 11

hectares, while in San Bemardo only one farmer plowed two hectares. It is a recent

process and it is interesting to note that these mechanized plots were previously

pastures. Recently, the illegal importation of cattle for beef from Brazil and Bolivia










reduced the price of beef and the profitability of this activity (see Chapter 3).

Additionally, loss of soil fertility and lower pasture productivity due to overgrazing and

inadequate management increase the costs of cattle raising. These two processes

contribute to pull some farmers away from cattle raising and to try other income-

generating activities, increasing their response to extension programs. Currently, the

Ministry of Agriculture (MINAG) is promoting land mechanization and the use of water

pumps to improve rice yields. Interviewed farmers commented on their frustration with

cattle ranching and were very enthusiastic about the possibilities of rice cultivation

under irrigation. Yields are expected to rise from 1,500 kg/ha to 7,000 kg/ha. More

farmers in Santa Rita adopted this new technology than in San Bernardo, probably

because MINAG has an operative office in Santa Rita Baja, which facilitates the

extension activities and technology transfer in Santa Rita. In San Bemardo, the closer

MINAG office is in Laberinto, approximately 25 km west of the site, making the

process of technology transfer more difficult.


Crops

Crop production is equally important in both sections of the road that connects

Puerto Maldonado and Mazuko. Generally, it is done on dry lands-i.e., without

irrigation. The major cash crops are rice, maize, and soybeans; and farmers grow

manioc, bananas, and vegetables for self-consumption. The rice productivity for the

region is 1,500 kg/ha before hulling-1,071.43 kg/ha of hulled rice, but actual numbers

are lower, mainly due to crop losses.

However, there are some important characteristics specific to each site (Table

4-11). In San Bemardo, the main cash crops are both rice and maize, but landholders

do not produce soybeans. In this area, farmers cultivate, on average, 2.97 hectares of












rice, 1.67 hectares of maize, and 0.44 hectares of manioc. They sell 50% of

harvested rice, 28.6% of maize, but they do not sell any manioc. Crop losses reach

26% for rice, 16% for maize, and 22% for manioc, all in terms of cultivated area.



Table 4-11. Cultivation, Harvesting, Marketing, and Losses of the Most Important
Agriculture Products, per Farm and by Research Site



Total Sample San Bernardo Santa Rita
Crops per farm
N Mean Std. Dev. N Mean Std. Dev. N Mean Std. Dev.


Rice

Area (has.) 72 2.4 3.2 35 3.0 4.4 37 1.9 1.4
Harvested (kg.) /1 62 1530.7 1309.3 29 1826.4 1609.7 33 1270.8 922.8
Sold (kg.) 60 902.8 1150.3 30 1094.6 1405.8 30 711.0 799.7
Sold (%) 56 48.3 35.2 27 49.9 36.2 29 46.9 34.8
Lost (%) 61 30.5 30.3 26 26.1 25.4 35 33.8 33.6


Maize


Area (has.)
Harvested (kg.)
Sold (kg.)
Sold (%)
Lost (%)


55 0.9 1.6 25 1.7 2.0 30
38 1006.5 1539.0 25 1274.0 1823.6 13
41 216.1 387.2 27 266.0 449.5 14
32 26.2 40.0 23 28.6 42.2 9
39 21.7 35.0 25 15.8 30.1 14


0.3 0.5
492.3 464.5
119.6 205.3
20.0 35.0
32.0 32.0


Soybeans


Area (has.)
Harvested (kg.)
Sold (kg.)
Sold (%)
Lost (%)


72 0.2 0.6
9 800.8 965.8
9 767.4 971.0
7 91.8 18.6
9 59.5 31.8


37 0.4 0.8
9 800.8 965.8
9 767.4 971.0
7 91.8 18.6
9 59.5 31.9


Manioc


Area (has.)
Harvested (kg.)
Sold (kg.)
Sold (%)
Lost (%)


67 0.4 0.5
19 529.0 864.3
21 112.0 259.8
6 8.3 20.4
28 27.5 27.6


35 0.4 0.5
14 585.7 982.0
10 100 316.2
3 0 0
18 22.0 28.2


32 0.3 0.5
5 370.0 429.5
11 122.7 211.4
3 17.0 28.9
10 37.5 24.3


1/ In tens of hulled rice. 1kg of hulled rice is equivalent to 1.4 of not hulled rice.
Madre de Dios-Peru, July-August 1998.









Cultivated area is greater in the communities located in Santa Rita, where the

main cash crops are rice and soybeans. Here, farmers cultivate on average 1.9 has

of rice, 0.2 has of soybeans (really, 9 farmers cultivate a total of 14.5 has), 0.95 has

of maize, and 0.27 has of manioc. Farmers that sell their products sold 46.9% of

harvested rice, 91.8% of soybeans, 20% of maize, and 16.7% of manioc. Crop losses

tend to be higher in Santa Rita than in the communities closer to Puerto Maldonado.

For example, on average, farmers lost, one third of the area cultivated with rice and

maize, 60% of sown soybeans, and 38% of the manioc area. Soybeans are present

in this area and not in the other because the soybean processing and marketing

cooperative Empresa Agroalimenticia Inambari is located in Santa Rita Baja and

provides credit and extension to soybean growers.

Perennials are rare in the region, but their presence is slowly increasing due

to the activities of the reforestation program carried out by MINAG and the ITTO.

Along with the promotion of valuable timber trees (mainly Brazil nut (Bertholletia

excelsa), mahogany (Swietenia macrophylla), and pashaco (Schizolobium

amazonicum)) the project has been introducing perennial crops, such as coffee,

cacao, and fruit trees. Perennials do not yet constitute a relevant source of cash

income, but may become an important incentive against converting land into

pastures. For this to happen, the final construction of the 'Transoceanic Highway" will

be critical, reducing transportation costs and improving the conditions of marketing

local products in the rest of the country.


Small Farm Animals

Farmers along the Puerto Maldonado Mazuko road raise small farm animals,

including chickens, ducks, turkeys, pigs, guinea pigs (cuyes), and sheep. According










to the data gathered in the survey, the most

followed by pigs. Ducks, turkeys, guinea pigs,

area.


common farm animals are chickens,

and sheep were seldom found in the


Table 4-12. Farm Animals Held and Sold by Households, by Research Site


San Bemardo Santa Rita T t
Farm animals
N Mean Std. Dev. N Mean Std. Dev. t P
Animals held 1/
chicken 30 33.27 25.69 33 23.76 15.65 -1.793 0.08
ducks 9 5.22 4.79 9 5.22 3.42 0.000 1.00
pigs 17 4.94 4.28 20 4.40 3.44 -0.427 0.67
guinea pigs 6 9.17 6.52 1 20.00 -.- -0.553 0.59

Animals sold 2/
chicken 15 19.87 25.14 22 17.00 16.94 -0.415 0.68
ducks 3 8.67 4.16 0 0.00 0.00 0.000 1.00
pigs 16 5.81 4.74 12 3.08 3.12 -1.731 0.10
guinea pigs 1 35.00 -.- 1 20.00

1/ Number of small farm animals held in the household at the time of the survey.
2/ Number of small farm animals sold by the household during the last year (Jul 97 Jul 98).
3/ Ho: mean(San Bemardo) mean(Santa Rita)=0.
"*=Significant at the 5% level; *=Signficant at the 10% level.
Madre de Dios-Peru, July-August, 1998.



Clearly, chickens and pigs are the most commonly raised and sold small farm

animals in both research sites (Table 4-12). Chickens are the most numerous

animals, but pigs are also very important if we consider their size and weight. There

are only two significant differences between the San Bemardo and the Santa Rita site

regarding small farm animals. First, although a similar number of households raise

small farm animals in each site, the farmers in San Bemardo have an average of 10










more chickens than farmers in Santa Rita. Second, fewer farmers in San Bemardo

raise pigs, but they sold approximately three more pigs than farmers in Santa Rita.


Table 4-13. Use of Cash Income from Selling Small Farm Animals (households)


Chicken Pigs
Use of Cash from Farm Animals
N % N %

To smooth consumption 32 84.2 21 77.8
To buy capital goods 1 3.7
To buy inputs for other economic activities 4 10.5 3 11.1
To travel 2 5.3 -
To pay debts / credit 1 3.7
To buy cattle 1 3.7

Total 38 100.0 0 27 100.0

Madre de Dios-Peru, July-August, 1998.



There is a widespread discussion in the literature on the role of small farm

animals among small farmers. One of the most important benefits of raising small

farm animals is that they help to 'smooth' consumption needs. This means that small

farm animals are easy to sell and help the households to cope with unexpected

expenses. It is said that small farm animals are like 'insurance' that helps the

households to deal with uncertain conditions. In Madre de Dios, this seems to be the

case, but in small quantities of money. Survey data show farmers used the cash

income generated through the selling of chicken and pigs to buy groceries, clothes, or

school supplies (Table 4-13). Although I combined these categories, it is important to

say that farmers clearly distinguish the expenses for the children (mainly clothes and

school needs) from the expenses for the household. Only eight households sold small

farm animals to invest in other economic activities. It was mainly to pay hired work for










timber logging and agriculture. Also, one farmer used the money to begin a business

(comercio). Additionally, one farmer bought parts for a chain saw, and another other

bought cattle.


Loanina

Logging is a very important source of cash income for the landholders living in

Santa Rita. Seven out of ten interviewees reported selling timber and, on average,

they extracted annually 14,239.13 square feet of low-value timber (SD=12,187.8). So,

in this community the average gross income from selling timber during the last year

was S/. 5,894.57 (SD=5,338.6). However, the costs of timber logging are very high -

they include hired labor, timber transportation to the road, chain saw renting, etc. The

net benefit from the sale of timber is therefore much lower, around one fifth of the

gross income if households do all the work, and S/. 300- 500 if they have to hire force

(Gironda 1998: 18).

The year during which fieldwork was carried out was a bad year because 'El

Niio' caused high rainfall. The rain closed the road for several months, which

prevented the sale of timber. Several farmers lost the extracted timber due to

humidity. Others harvested no trees. However, timber extraction was still the most

profitable economic activity in the region, especially relative to household labor

inputs.

For the households living closer to Puerto Maldonado, logging is almost

absent -only three landholders of San Bemardo reported extracting timber. Clearly,

this is related to the longer history of occupation of the San Bernardo area and the

consequent greater degradation of the old growth forest.










Off-Farm Work

Approximately half of the farmers complement their income with off-farm work

and trading. This proportion is 9% higher for households in Santa Rita (Table 4-14).


Table 4-14. Households that work off-farm, by type of job


San Bemardo Santa Rita T-test
Off-farm work
N % N % Chi2 Pearson

Agriculture labor 14 40.0 18 50.0 0.72 0.40
Store I trade 7 20.0 4 11.1 1.07 0.30
Other wage labor 0 0.0 1 2.8 0.99 0.32

** = Significant at the 5% level; =Significant at the 10% level.
Madre de Dios-Peru, July-August, 1998.



Off-farm work is mainly work as a day worker (jomalero) on other farms. Some

also worked on road maintenance; for the oil-exploration company; or-for those living

in Santa Rita-at the Empresa Agroalimenticia Inambari. Also, some farmers have

small stores in town, where they sell basic products to their neighbors. Only one

woman in Santa Rita Baja worked both as an extensionist for Conservation

International and as a teacher in an adult education program for the Ministry of

Education.


Pasture Cultivation and Cattle Ranching

In both research sites, the majority of landholders hade pastures -94% in San

Bernardo and 70% in Santa Rita. But those living closer to Puerto Maldonado have

larger pastures, both in absolute and in relative terms. In San Bemardo, landholders

on average had 21.05 hectares of pasture, representing 35% of their total plot area.










Off-Farm Work

Approximately half of the farmers complement their income with off-farm work

and trading. This proportion is 9% higher for households in Santa Rita (Table 4-14).


Table 4-14. Households that work off-farm, by type of job


San Bemardo Santa Rita T-test
Off-farm work
N % N % Chi2 Pearson

Agriculture labor 14 40.0 18 50.0 0.72 0.40
Store I trade 7 20.0 4 11.1 1.07 0.30
Other wage labor 0 0.0 1 2.8 0.99 0.32

** = Significant at the 5% level; =Significant at the 10% level.
Madre de Dios-Peru, July-August, 1998.



Off-farm work is mainly work as a day worker (jomalero) on other farms. Some

also worked on road maintenance; for the oil-exploration company; or-for those living

in Santa Rita-at the Empresa Agroalimenticia Inambari. Also, some farmers have

small stores in town, where they sell basic products to their neighbors. Only one

woman in Santa Rita Baja worked both as an extensionist for Conservation

International and as a teacher in an adult education program for the Ministry of

Education.


Pasture Cultivation and Cattle Ranching

In both research sites, the majority of landholders hade pastures -94% in San

Bernardo and 70% in Santa Rita. But those living closer to Puerto Maldonado have

larger pastures, both in absolute and in relative terms. In San Bemardo, landholders

on average had 21.05 hectares of pasture, representing 35% of their total plot area.













Landholders from Santa Rita, however, had on average 6.21 hectares of pasture,


representing 10% of the total plot (Table 4-15).



Table 4.15. Pasture and Cattle Raising Indicators, Average per Farm


Variables


SI

N


Has pastures (1-yes) 35
Pastures (ha) 32
Pastures (share of total plot) 32
Have cattle (1-yes) -.- 35
Herd size (units) 21
Grazing intensity (heads/ha) -.- 20
Did have cattle once (1=yes) 15
Years since cattle raising began 20
Have pastures fenced (1=yes) -. 34
Expenditures in fenches (S/. /ha) 31
Have corrals (1=yes) 33
Have squeeze chute (1=yes) -.- 33
Medicated cattle (1-yes) -.- 20
Expenditures in medicines (SI.) -.- 18
Produce milk (1=yes) -.- 21
Produce cheese (1=yes) 21


1/Ho: mean(San Bemardo) mean(Santa Rita)=O.
S= Significant at 5%; **Signficant at 10%; -* = Non Signilcant
Madre de Dios-Peru, July-August, 1998.


an Bemardo

Mean Std. Dev.

0.94 0.24
21.05 19.33
0.35 0.28
0.60 0.50
19.33 16.32
1.84 4.32
0.33 0.49
9.35 6.04
0.59 0.50
845.66 1439.19
0.45 0.51
0.27 0.45
0.90 0.31
446.67 817.28
0.76 0.44
0.67 0.48


Santa Rita

N Mean Std. Dev.

37 0.70 0.45
26 6.21 6.91
26 0.10 0.12
37 0.49 0.51
18 10.39 9.38
16 1.57 0.98
19 0.05 0.23
12 3.38 2.95
26 0.42 0.50
24 524.25 845.55
26 0.15 0.37
27 0.00 0.00
17 0.71 0.47
12 84.72 84.74
18 0.56 0.51
18 0.11 0.32


More landholders in San Bemardo raised cattle than landholders in Santa


Rita. Also, they managed larger herds, had more and better infrastructure, and


invested more in the maintenance of the animals. The proximity to Puerto Maldonado


and the older settlement seems to have had an important influence.


In San Bemardo, 60% of landholders had cattle and the average herd size


was 19.33 head. Those who had cattle raised an average of 1.84 animals per hectare


of pasture. Cattle ranchers in these communities started this activity 9.35 years ago.


Also, 5 landholders (13.2% of lanholders in San Bemardo) once had cattle but not


longer do.


T-test 1/

t P<|zI

-2.496 0.02
-3.720 0.00
-4.214 0.00
-0.959 0.34
-2.051 0.05
-1.001 0.32
-2.222 0.03
-3.193 0.00
-1.264 0.21
-9.708 0.34
-2.546 0.01
n.d.
n.d.
-1.520 0.14
-1.380 0.18
-4.144 0.00









In Santa Rita, half (49%) of the landholders owned cattle. One had cattle

before but no longer does. The average herd size was 10.39 head. In these

communities cattle owners began raising cattle only 3.38 years ago. Cattle owners in

this research site raised cattle less intensively than in San Bernardo; on average,

they kept 1.57 head per hectare of pasture.

Additionally, investment in infrastructure and care of the animals was much

higher closer to Puerto Maldonado than in the more distant communities. In San

Bernardo, 59% of landholders had their pastures fenced, 45% had corrals and 27%

had squeeze chute in their plots. In Santa Rita, however, only 42% had their plots

fenced, 15% of landholders (4) had corrals and nobody had squeeze chute. Almost

all the landholders in San Bernardo vaccinated or medicated their cattle (90%),

spending on average S/. 446.67, while in Santa Rita 71% of landholders who raised

cattle spent on average S/. 84.74.

Commercial production of dairy products is almost non existent among the

respondents, although the majority consumed milk. In San Bernardo, three quarters

of the cattle owners produced milk (76%), but only three farmers sold milk. Also, 67%

of cattle owners produced cheese, but only 2 sold it regularly. In Santa Rita, 56% of

cattle owners produced milk and only 2 farmers produced cheese, but none sold

either milk or cheese.

It is important to discuss how landholders began to raise cattle, and how they

spent the cash earned from selling cattle. Table 4-16 shows the main sources of

funding in both research sites. First, almost half of sampled landholders (9) in San

Bernardo began to raise cattle with a loan from the Agrarian Bank. Only two

landholders in Santa Rita used such credit. On average, these landholders started










raising cattle 11.25 years ago (SD=4.93), which coincides with our findings of Chapter

3 regarding the significant impact of the Agrarian Bank credit for cattle in the late

eighties. For the rest of the sample, the sources of funding were diverse, but it is

important to highlight the role of off-farm work in financing cattle ranching. Off-farm

employment is mainly found in the area closer to Puerto Maldonado (San Bernardo)

among people who had an urban job and saved enough money to buy cattle.. In such

cases, cattle raising seems to serve as a mechanism for savings or capital

accumulation.


Table 4-16. Sources of Funding to Start Cattle Raising, by Research Site
(households)


San Bemardo Santa Rita
Source of funding
N % N %

Agrarian Bank 9 45.0 2 20.0
Other credit source 1/ 1 5.0 2 20.0
Investment of own capital goods 2/ 3 30.0
Agriculture (rice) 5 25.0 1 10.0
Timber 3/ 1 5.0 2 20.0
Off-farm work 4/ 4 20.0 -
Selling cattle -

Total 20 100.0 10 100.0

Chi2 (Pearson) 12.887 (0.024) *

/ Includes the Regional Development Corporation (CORDE) under F. Belaunde's
administration; a local trader and a 'compedre:
2/Includes selling a car, a refrigerator, small farm animals, and personal savings
3/In some cases, it includes the combination of timber and agriculture.
4/Includes working in construction, as health technicians, teaching, peeling Brazil nuts, trading.
= Significant at the 5% level; *=Significant at the 10% level.
Madre de Dios-Peru, July-August, 1998.









To enlarge their cattle herd during the previous year, up to 19 farmers bought

cattle using different sources of funding. In Santa Rita, timber seems to be an

important source of funding (5 out of 10 cattle owners referred that). Three

households also traded capital goods for cattle. No respondent referred to agriculture

as a source of funding to buy cattle. In San Bemardo, agriculture (3), off-farm work

(2), and personal credit sources (2) were the most mentioned sources of funding.

The use of cash income from selling cattle can provide a good indicator of the

role that cattle play within the farm. All interviewees (25) mentioned that they used

part of this income to meet household consumption needs. Several farmers

mentioned that they lost crops and timber due to high 'El Niio' rainfalls and therefore

had to sell cattle to survive. Additionally, 10 household heads said that the sale of

cattle helped finance their children's education. Two farmers from Santa Rita bought

chain saws, and the other two paid loans. Two farmers re-invested cash income from

selling cattle in the same activity and one household coped with serious health

problems. The use of cash income from selling cattle during the last year has been

very diverse, but the survey shows that very few farmers spent money for productive

use the income to accumulate more capital. In conclusion, it seems that, in the last

year, households used cattle as a way to meet consumption needs, suggesting that

cattle may be serving as a kind of 'bank' among local households (Loker 1993).



Cattle in a Diversified Production Strategy


To understand how farmers make decisions about cattle raising, it is critical to

first address the role of cattle within the farms. This section depicts the production

system, emphasizing in the role of cattle in terms of land and in terms of labor











allocation, cash income generation, saving and ensuring consumption needs, and

cultural values. Attention will be paid both to actual land-use and production patterns,

and to landholders' perception of the role that cattle play in their lives.

Cattle raising requires relatively high land inputs. On average, local

landholders raise 1.71 heads per hectare of pasture. Hence, household that have

cattle tend to have a greater portion of their plots under pasture (Table 4-17). Cattle

owners have on average 28% of their plots under pasture cultivation and only 31% is

in forest. Those landholders that do not raise cattle devote only 19% of their plots to

pasture and maintain almost half of their plots in forest (48%). Due to the character of

pastures cultivation (that requires almost complete clearing of the land), cattle raising

implies a trade-off between different possible uses of the land.


Table 4-17. Indicators of the Role of Cattle in the Farms, by Ownership of Cattle


Cattle owners Non cattle owners T-test 11
Variables
N Mean Std. Dev. N Mean Std. Dev. t PC<|z

Land
Plot size (ha) 39 67.95 31.65 32 59.84 29.28 -1.111 0.27
Portion of pastures (%) 39 0.28 0.26 32 0.10 0.19 -3.221 0.00
Portion of forest (%) 36 0.31 0.29 31 0.48 0.35 2.146 0.04
Cash Income
Total cash income from farm (S/.) 39 6,827.68 5,745.70 33 2.930.74 3,207.08 -3.464 0.00
Cash income from crops (S/.) 39 1,676.98 2,348.00 33 1,274.96 1,487.57 -0.849 0.40
Cash income from livestock (S/.) 39 351.24 630.44 33 262.45 329.66 -0.729 0.47
Cash income from logging (S/.) 39 2,587.82 5.022.18 33 1,393.33 2,761.63 -1.219 0.23
Cash income from cattle (S/.) 39 2.211.84 2.493.02 33 n.d.

1/Ho: mean(Sn Bemno) men(Santa Rita)=O.
- Signicaint at the 5% Ale'; Signlcan at the 10% lel.
MAs de Dios.Pru, JyAugus 199.



Labor is a different story. Cattle raising requires low labor inputs relative to the

other farm activities. The activity calendar showed that, although it is a year-round

activity, cattle are tended mainly by women and children (see also Gironda 1998).









They take the cattle to the pastures and make sure that they do not damage crops.

None of the respondents weeded pastures. They said that "the cattle take care of it."

Several respondents said that one of the advantages is that cattle require little care

and provide good money.

These results do not seem to be related to differences in the way that

households use resources. The data show that landholders that raise cattle are doing

better in terms of cash income than those who do not. They not only generate more

income from the sale of cattle for beef, but they also seem to earn more cash from the

sale of rice, soybeans, and maize, small farm animals, and timber (Table 4-17

above). These findings suggest that there does not seem to be a trade-off between

cattle and the other economic activities of the farm, at least in terms of income

generation. On the contrary, cattle may provide the enough cash for the landholders

to invest more in the other farm activities, mainly in hired labor and agriculture inputs.

By contributing to ensuring the household consumption needs, and even allowing

some productive investment, cattle play a critical role among local landholders (for

cases in other regions, see also Ellis 1996: 66, 165; Pich6n 1997: 38; Loker 1993).

Cattle also provide the household a very important but non measurable asset: status

and prestige. Although I never heard a direct statement to this effect, it is clear that

households with cattle were perceived to have a higher status within the community.

In conclusion, cattle raising is an attractive economic activity on the farm and

can not be ignored by conservation and development programs in the region (see

also Ellis 1996: 250). First, it requires relatively low labor inputs, the most scarce of

household resources. Second, although cattle raising requires the farmer to convert

relatively large into pastures, this result is barely costly to the household because









land is not scare in this area (see also Pich6n 1996). Third, cattle do not compete

with other farm activities; on the contrary cattle allow investment in other forms of

agriculture. Landholders that own cattle were also able to gain more cash from crops,

livestock, and timber. Fourth, cattle are a rational and effective way to save. Local

landholders prefer to buy some cattle instead of saving in a bank because the return

rate is higher, it is easier to get the cash, and it is close to them, where they can 'keep

an eye' on their savings. Finally, prestige and status seem to be also attractive

reasons to engage in cattle raising.



Households Determinants of Cattle Raising


In chapter three, I discussed the socioeconomic, political, and biophysical

factors that influence cattle raising in the region. In the first part of this chapter, I

described the most important features of the farmers that live along the road that

connects Puerto Maldonado and Mazuko, which influence their economic strategies

and consequent land-use patterns. This section focuses on cattle raising and aims to

establish in more detail the way in which intra-household characteristics influence

farmers' decisions. To do that, I will sketch the sequence of farmers' decisions

regarding cattle raising, to then establish the dependent and independent variables to

be tested.


The Model

The model assumes that landholders make their decisions regarding cattle

raising in stages, forming a chain of decisions that reflect the different stages of cattle

production. Landholders first need to cultivate pastures and decide how much pasture









land is not scare in this area (see also Pich6n 1996). Third, cattle do not compete

with other farm activities; on the contrary cattle allow investment in other forms of

agriculture. Landholders that own cattle were also able to gain more cash from crops,

livestock, and timber. Fourth, cattle are a rational and effective way to save. Local

landholders prefer to buy some cattle instead of saving in a bank because the return

rate is higher, it is easier to get the cash, and it is close to them, where they can 'keep

an eye' on their savings. Finally, prestige and status seem to be also attractive

reasons to engage in cattle raising.



Households Determinants of Cattle Raising


In chapter three, I discussed the socioeconomic, political, and biophysical

factors that influence cattle raising in the region. In the first part of this chapter, I

described the most important features of the farmers that live along the road that

connects Puerto Maldonado and Mazuko, which influence their economic strategies

and consequent land-use patterns. This section focuses on cattle raising and aims to

establish in more detail the way in which intra-household characteristics influence

farmers' decisions. To do that, I will sketch the sequence of farmers' decisions

regarding cattle raising, to then establish the dependent and independent variables to

be tested.


The Model

The model assumes that landholders make their decisions regarding cattle

raising in stages, forming a chain of decisions that reflect the different stages of cattle

production. Landholders first need to cultivate pastures and decide how much pasture










to cultivate. Then, they make decisions about the number of cattle to purchase.

Finally, landholders make decisions about cattle management, which includes the

number of head per hectare of pasture, the frequency of pasture rotation, and the

investment in fences, corrals, and squeeze chutes; and in the health of the animals.

The data set represented landholders in the different stages of the cattle production

cycle. For example, 90% of landholders in San Bernardo and 70% in Santa Rita had

pastures, but only 30% of those in San Bernardo and 10% in Santa Rita had cattle.

I used this chain of decisions-or stages of cattle production--to determine the

dependent variables to be analyzed, as follows:

Pastures:

-binary (1=yes)

area of pastures (has)

Cattle:

binary (1=yes)

herd size (# of head)

grazing intensity (head/ha)

Cattle management:

investment in fences (S/. fence per hectare)

existence of cattle infrastructure besides fences-i.e., corral or

squeeze chute (1=yes)

expenditures on medication (S/. per head)

I tested the impact of the following explanatory variables, controlling for plot

size:


* Research site (San Bernardo site=1; Santa Rita site=0)










Time living on the plot (average of husband and spouse in years)

Maximum years of schooling completed (average of husband and spouse,

in years)

Household size (total number of household members living in the plot)

Correlation analysis was used to test the bivariate direction and the

significance of the relation between household-level characteristics and investment in

cattle. I then included all of the independent variables simultaneously, using

multivariate regression analysis.







Investment in Cattle


S Cattle Raising


Pasture Cultivation




Figure 4.3. Landholders' Chain of Decisions about Cattle Raising


Correlation Analysis


Correlates of pastures cultivation

Correlation analysis (Table 4-18) shows significant positive relationships

between research site and both the probability of having pastures, and the area of

pasture within the plot. San Bemardo is closer to the market and also has a longer




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