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Improving cattle profitability in mixed crop-
 livestock systems in south central coastal
 Vietnam using an integrated modelling approach




Parsons D, McDonald C, NX Ba, DT Tuan, Lisson S,
Corfield J, LD Phung, NH Quan, NH Van, LD Ngoan,
                      Lane P
Q. Can we use modelling tools to design
improved farming systems for smallholder
beef producers in Vietnam?




       TIAR – research • development • extension • education • training
“Better Integration of Beef
                                 Cattle Production with Crop
                                 Production Systems in South-
                                 Central Coastal Vietnam”

                                 •4-year ACIAR funded project
                                 •Commenced in 2009

                                 UTAS/TIAR
                                 CSIRO
                                 Hue University
                                 Research and Development
                                 Centre for Animal Husbandry



TIAR – research • development • extension • education • training
Background
•Farming systems are based on livestock, subsistence rice crops,
and cash crops (e.g. cassava, peanuts, and cashews)
•Increasing demand for beef in the major urban centres and
consequent high beef prices




        TIAR – research • development • extension • education • training
Constraints
  low fertility sandy soils
  high temperatures, long dry season, flooding
  limited quantity and quality of feeds
  poor livestock production
     long calving intervals
     high calf mortality rates
     low growth rates
     low cattle productivity and efficiency




      TIAR – research • development • extension • education • training
Objective
Use a farming systems research approach to explore the
opportunities and constraints to increasing the profitability of
smallholders in south central coastal Vietnam.




        TIAR – research • development • extension • education • training
Defining the Farming System
•Detailed household surveys (~60 households/commune)
•On-farm biophysical monitoring (~10 households/commune)
    cattle were weighed regularly
    inventories of local feedstuffs
    Trialled potential suitable forage varieties
•Workshops with farmers and other stakeholders (~20 people/
commune)
•Interviews with leaders, officials
•Focus group discussions (~5 people/commune).




        TIAR – research • development • extension • education • training
Seasonal farming calendar for Cat Trinh
Commune, Binh Dinh Province, Vietnam

                           J          F          M       A        M       J        J   A      S      O       N      D
 Rainfall                      Drizzling rain                         Dry Season             Very high rainfall    Rain
 Main crops
                          Winter – Spring rice           Summer-Autumn rice
 Rice                            crop                          crop                        Third rice crop
 Cassava                                          Growing season
 Peanut                        Winter - Spring crop               Summer - Autumn crop
 Cashew                                   Harvesting                                          Planting       Harvesting
 Cattle activities
 Breeding                         Calving                    Mating
 Grazing                         Grazing                         Less grazing              More grazing
 Rice Straw use                                 More in ration                                 Less in ration
 Cultivated grass use
 Cut and carry grass
 Peanut vine use
 Body condition           Low                                           High                                 Low
 Prices                        High



                  TIAR – research • development • extension • education • training
The Integrated Analysis Tool (IAT)
 •IAT was used to simulate crop, forages and livestock activities
 within local farming systems and assess their economic and
 social feasibility.
 •‘Best-bet’ options were chosen based on analysing the system
 and experience with application of practices that have been
 successful in other similar situations.




         TIAR – research • development • extension • education • training
Integrated Analysis Tool

                                  Livestock
                    Livestock        yield       Economic
  Inputs
  Climate             model                       model
                                                                      Outputs
    Soil                        Herd structure                        Cattle,
Management   Forage yield
                                & management
                                                 Crop, forage yield     crop,
   Price                                                              forage,
   Costs                                                               profit,
  Labour                                                               labour
 Machinery
                              APSIM
                       (Crop/forage model)



                Feasible / most profitable strategy
Baseline
Scenario   Cut & carry     Animals sold      Cattle sale        Fodder          Gross Margin Final cash
           kg/day          over 10 years     weight (kg)        surplus         (M VND/year) balance (M
                                                                (kg/month)                       VND)
           Baseline: 0.2 ha rice (3 crops); 0.1 ha cassava on upland; 0.2 ha peanut on upland; 1 cow; fed cut &
           carry of 20 kg/day plus supplements; 90 % retention of rice and peanut straw.
Baseline        20               5-6              200             -1600              10               48




  •Farmers were making sufficient income to cover their living costs
  •Forage deficit of around 1600kg
  •3 years to get animals to a marketable size.
             TIAR – research • development • extension • education • training
Scenario 1 - Elephant grass
Scenario     Cut & carry      Animals sold     Cattle sale      Fodder surplus Gross Margin         Final cash
             kg/day           over 10 years    weight (kg)      (kg/month)     (M VND/year)         balance (M
                                                                                                    VND)
Baseline          20               5-6              200             -1600               10               48
Scenario 1   Grow 0.1ha grass on upland, plus 0.1ha in backyard; increase cut & carry to 25kg/day

                  25               5-6              225                0                10               51




•Improved the feed supply to animals, increased the animal sale weight, and
eliminated the forage deficit.
              TIAR – research • development • extension • education • training
Scenario 2 – tree legumes
Scenario     Cut & carry    Animals sold    Cattle sale   Fodder surplus Gross Margin   Final cash
             kg/day         over 10 years   weight (kg)   (kg/month)     (M VND/year)   balance (M
                                                                                        VND)
Baseline          20             5-6             200         -1600           10              48
Scenario 2   As above, and grow 100m of tree legume

                  25             7-8             300         4000          10-15             79




•Improved forage quality and increased calving rate and
liveweight gain, as well as providing a forage surplus.
             TIAR – research • development • extension • education • training
Scenario 3 – improved husbandry
Scenario   Cut & carry   Animals sold    Cattle sale   Fodder surplus Gross Margin   Final cash
           kg/day        over 10 years   weight (kg)   (kg/month)     (M VND/year)   balance (M
                                                                                     VND)
   •Introduction of controlled mating (annual calving) and early 48
Baseline       20              5-6             200        -1600  10
   weaningAsof calves increased cattle sales to 9 over the 10-year
Scenario 3   above with seasonal mating and early weaning
   period (Scenario 4). 8-9
               25                              350         3500 10-20 95




 •increased animals sales, sale weight
            TIAR – research • development • extension • education • training
Scenario 4 - extra cow
Scenario     Cut & carry     Animals sold     Cattle sale      Fodder surplus Gross Margin   Final cash
             kg/day          over 10 years    weight (kg)      (kg/month)     (M VND/year)   balance (M
                                                                                             VND)
Baseline          20               5-6             200             -1600          10              48
Scenario 4   As above, increase number of cows to 2, cut & carry to 35kg

                  35             14-15             300             -1500        15-20            154




  •increased animals sales and cash balance
               TIAR – research • development • extension • education • training
Implementing ‘Best-bet’ options
•Using a farming systems approach we identified numerous
possible options to improve livestock production and
household welfare.
•The simulation results suggest that the following management
practices can greatly improve the profitability of a household:
    •improved forages
    •introduction of tree legumes
    •improved cattle management
    •herd size




        TIAR – research • development • extension • education • training
Results so far
These options are currently being tested in collaboration with
15 farmers in each study commune.




        TIAR – research • development • extension • education • training
Thanks!



Particularly to
the farmers




       TIAR – research • development • extension • education • training

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Improving cattle profitability in mixed crop-livestock systems in south central coastal Vietnam using an integrated modelling approach. David Parsons

  • 1. Improving cattle profitability in mixed crop- livestock systems in south central coastal Vietnam using an integrated modelling approach Parsons D, McDonald C, NX Ba, DT Tuan, Lisson S, Corfield J, LD Phung, NH Quan, NH Van, LD Ngoan, Lane P
  • 2. Q. Can we use modelling tools to design improved farming systems for smallholder beef producers in Vietnam? TIAR – research • development • extension • education • training
  • 3. “Better Integration of Beef Cattle Production with Crop Production Systems in South- Central Coastal Vietnam” •4-year ACIAR funded project •Commenced in 2009 UTAS/TIAR CSIRO Hue University Research and Development Centre for Animal Husbandry TIAR – research • development • extension • education • training
  • 4. Background •Farming systems are based on livestock, subsistence rice crops, and cash crops (e.g. cassava, peanuts, and cashews) •Increasing demand for beef in the major urban centres and consequent high beef prices TIAR – research • development • extension • education • training
  • 5. Constraints low fertility sandy soils high temperatures, long dry season, flooding limited quantity and quality of feeds poor livestock production long calving intervals high calf mortality rates low growth rates low cattle productivity and efficiency TIAR – research • development • extension • education • training
  • 6. Objective Use a farming systems research approach to explore the opportunities and constraints to increasing the profitability of smallholders in south central coastal Vietnam. TIAR – research • development • extension • education • training
  • 7. Defining the Farming System •Detailed household surveys (~60 households/commune) •On-farm biophysical monitoring (~10 households/commune) cattle were weighed regularly inventories of local feedstuffs Trialled potential suitable forage varieties •Workshops with farmers and other stakeholders (~20 people/ commune) •Interviews with leaders, officials •Focus group discussions (~5 people/commune). TIAR – research • development • extension • education • training
  • 8. Seasonal farming calendar for Cat Trinh Commune, Binh Dinh Province, Vietnam J F M A M J J A S O N D Rainfall Drizzling rain Dry Season Very high rainfall Rain Main crops Winter – Spring rice Summer-Autumn rice Rice crop crop Third rice crop Cassava Growing season Peanut Winter - Spring crop Summer - Autumn crop Cashew Harvesting Planting Harvesting Cattle activities Breeding Calving Mating Grazing Grazing Less grazing More grazing Rice Straw use More in ration Less in ration Cultivated grass use Cut and carry grass Peanut vine use Body condition Low High Low Prices High TIAR – research • development • extension • education • training
  • 9. The Integrated Analysis Tool (IAT) •IAT was used to simulate crop, forages and livestock activities within local farming systems and assess their economic and social feasibility. •‘Best-bet’ options were chosen based on analysing the system and experience with application of practices that have been successful in other similar situations. TIAR – research • development • extension • education • training
  • 10. Integrated Analysis Tool Livestock Livestock yield Economic Inputs Climate model model Outputs Soil Herd structure Cattle, Management Forage yield & management Crop, forage yield crop, Price forage, Costs profit, Labour labour Machinery APSIM (Crop/forage model) Feasible / most profitable strategy
  • 11. Baseline Scenario Cut & carry Animals sold Cattle sale Fodder Gross Margin Final cash kg/day over 10 years weight (kg) surplus (M VND/year) balance (M (kg/month) VND) Baseline: 0.2 ha rice (3 crops); 0.1 ha cassava on upland; 0.2 ha peanut on upland; 1 cow; fed cut & carry of 20 kg/day plus supplements; 90 % retention of rice and peanut straw. Baseline 20 5-6 200 -1600 10 48 •Farmers were making sufficient income to cover their living costs •Forage deficit of around 1600kg •3 years to get animals to a marketable size. TIAR – research • development • extension • education • training
  • 12. Scenario 1 - Elephant grass Scenario Cut & carry Animals sold Cattle sale Fodder surplus Gross Margin Final cash kg/day over 10 years weight (kg) (kg/month) (M VND/year) balance (M VND) Baseline 20 5-6 200 -1600 10 48 Scenario 1 Grow 0.1ha grass on upland, plus 0.1ha in backyard; increase cut & carry to 25kg/day 25 5-6 225 0 10 51 •Improved the feed supply to animals, increased the animal sale weight, and eliminated the forage deficit. TIAR – research • development • extension • education • training
  • 13. Scenario 2 – tree legumes Scenario Cut & carry Animals sold Cattle sale Fodder surplus Gross Margin Final cash kg/day over 10 years weight (kg) (kg/month) (M VND/year) balance (M VND) Baseline 20 5-6 200 -1600 10 48 Scenario 2 As above, and grow 100m of tree legume 25 7-8 300 4000 10-15 79 •Improved forage quality and increased calving rate and liveweight gain, as well as providing a forage surplus. TIAR – research • development • extension • education • training
  • 14. Scenario 3 – improved husbandry Scenario Cut & carry Animals sold Cattle sale Fodder surplus Gross Margin Final cash kg/day over 10 years weight (kg) (kg/month) (M VND/year) balance (M VND) •Introduction of controlled mating (annual calving) and early 48 Baseline 20 5-6 200 -1600 10 weaningAsof calves increased cattle sales to 9 over the 10-year Scenario 3 above with seasonal mating and early weaning period (Scenario 4). 8-9 25 350 3500 10-20 95 •increased animals sales, sale weight TIAR – research • development • extension • education • training
  • 15. Scenario 4 - extra cow Scenario Cut & carry Animals sold Cattle sale Fodder surplus Gross Margin Final cash kg/day over 10 years weight (kg) (kg/month) (M VND/year) balance (M VND) Baseline 20 5-6 200 -1600 10 48 Scenario 4 As above, increase number of cows to 2, cut & carry to 35kg 35 14-15 300 -1500 15-20 154 •increased animals sales and cash balance TIAR – research • development • extension • education • training
  • 16. Implementing ‘Best-bet’ options •Using a farming systems approach we identified numerous possible options to improve livestock production and household welfare. •The simulation results suggest that the following management practices can greatly improve the profitability of a household: •improved forages •introduction of tree legumes •improved cattle management •herd size TIAR – research • development • extension • education • training
  • 17. Results so far These options are currently being tested in collaboration with 15 farmers in each study commune. TIAR – research • development • extension • education • training
  • 18. Thanks! Particularly to the farmers TIAR – research • development • extension • education • training

Notas do Editor

  1. South-central coastal Vietnamese farming systems are based on growing livestock, subsistence rice crops, and cash crops such as cassava, peanuts, and cashews. Increasing demand for beef in the major urban centres and consequent high beef prices provide opportunities for increased farmer income.
  2. Cattle production is constrained by: limited resources, low fertility sandy soils, and harsh climatic conditions (high temperatures, long dry season, flooding in the wet season). Expanding cattle production is restricted by:the limited quantity and quality of feedspoor husbandry practices leading to long calving intervals, high calf mortality rates, low growth rates, and consequently low cattle productivity and efficiency.
  3. Model output from baseline and various intervention strategies in Binh Dinh, run over a 10 year period. Final cash balance values do not take into account hired labour costs.
  4. Some farmers are reporting labour savings of up to 2 hours/day
  5. Explaining to extension workers his preference for various forages he has been testing.