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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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