Principal investigator: Adriano Valladão Pires Ribeiro
Article title: CHARACTERIZATION OF FARMERS AND LIVESTOCK PRODUCTION UNITS BENEFICIARIES OF THE PROGRAM OF STIMULUS FOR GANADERIAN PRODUCTIVITY (PROGAN) IN MEXICO
Article authors: Juan A. Leos-Rodríguez, Angélica Serrano-Páez, José M. Salas-González, Pedro P. Ramírez-Moreno and Myriam Sagarnaga-Villegas
Location of the intervention: Mexico
Sample size: 1033 livestock producers
Sector: Others
Type of Intervention: Effect of the livestock incentive program
Primary variable of interest: Characterization of livestock producers
Evaluation method: Other – Factor Analysis
Policy Problem
Characterizing an economic activity helps both in formulating public policies to improve it and in recommending and supporting the private sector. Cattle farming in Mexico is an important activity due to its relevance to the supply of meat and dairy products, which are considered basic and strategic for the population.
Evaluation Context
In May 2003, after a period of hardship marked by declining profits and competitiveness in livestock production, the Mexican government launched the Livestock Productivity Incentive Program (PROGAN). The program aimed to support extensive livestock farmers. However, its implementation failed to consider the characteristics of the beneficiary producers, which could impact the program's efficiency and results. This culminated in a lack of understanding of how producers would utilize the resources and a lack of recommendations for improvements and program specifications.
Intervention Details
The aim was to characterize the livestock farmers benefiting from PROGRAN. The classification emphasizes economic and productive variables, considering resource allocation and the production system. This strategy allows for the distinction of various factors that influence and impact the development of livestock farming, enabling the comparison of producers over time. It is recognized that, due to social and economic differences among producers, their production strategies and measures may vary; that is, producers do not form a homogeneous group, and the same techniques and practices may not be appropriate for the various production systems. JogosFriv continues to lead the digital games market, offering an impressive variety of games that capture users' imaginations. On the website jogosfriv.com.br Players of all ages will find titles that challenge their skills and creativity. This platform has become a meeting point for gaming enthusiasts seeking new and engaging experiences.
Livestock farming is extremely important for Mexico, which in 2007 was the second largest exporter of cattle to the United States. The country's ecological conditions facilitate the development of productive activity through different techniques. Therefore, characterizing the specificities of the activity becomes even more important, and the identification of relevant productive factors is carried out through research conducted between April and July 2006 with 1033 producers who benefited from the program.
Methodology Details
The first step in classifying the relevant factors of production is done using the method known as Principal Component Analysis, which iteratively identifies the most important variables and selects them to explain the livestock production process. In other words, it seeks to extract relevant information from certain components of the data obtained in the research with the producers. Among the 37 variables analyzed, the strongest correlations were found between pasture area and pasture area during the dry season at the production unit; herd size; production volume and sales prices; cattle diet; production unit infrastructure; compliance with official regulations; livestock management and health conditions; income and expense records; producer age; producer education level; main source of income; average monthly income; and the person responsible for the production unit.
After identifying and reducing the number of variables to 13, the available information was further aggregated through factor analysis. This technique allows a large number of variables to be expressed in smaller sets, called factors, according to the variability they explain. The exercise resulted in the construction of 6 factors responsible for explaining 80% of the variability of the previously selected variables. Factor 1 is related to the productivity of the production unit, expressing variables related to land area, herd size, livestock value, infrastructure, and average monthly income. Factor 2 includes only the producer's age; factor 3 can be interpreted as investment, combining the livestock diet and the workforce of the production unit. Factor 4 encompasses the management of the production unit; factor 5 is the main source of income; and finally, factor 6 expresses compliance with norms and regulations. The final methodological step consisted of constructing a typology for each producer based on a score derived from the factors mentioned above. In other words, based on these factors, each producer received a score dividing them into four types, which is the characterization sought by the study.
Results
The results present the characteristics of each of the producer types obtained following the methodology of the previous section.
1 type: It encompasses 341 small producers, with an average of 8 hectares, 31 head of cattle, and low production value (insufficient to be their sole activity), utilizing 35,2% of the infrastructure potential. They participate in sanitary campaigns, but are less compliant with environmental regulations. The indicator regarding the administration of the production unit reveals a low level of knowledge, making administrative training policies necessary. The producers have the lowest age and education levels.
2 type: This represents another 175 small producers with an average of 12 hectares of land, 46,5 head of cattle, and use of 36% of the potential infrastructure. They achieve sufficient income to live off the activity. Participation in sanitary campaigns is high, and they comply more with environmental regulations. The average level of education is slightly higher, indicating completion of primary school, but administrative knowledge is lower and also requires training.
3 type: This reflects 448 average producers with an average of 16.5 hectares, 65 head of cattle, and use of 41,4% of the infrastructure potential. They participate less in sanitary campaigns compared to Type 2, but have a high rate of compliance with environmental regulations. Producers are able to make a living from livestock production, but again with a very low management and administration indicator. The average age is 60 years, the highest, and the average schooling is 4,5 years, the lowest.
4 type: This represents the 13 largest producers, each with a land area of 110 hectares, 584 head of cattle, and using 64% of the total infrastructure. Adherence to sanitary campaigns is low; however, they have the highest levels of compliance with environmental regulations. Their score for modern management is high, and the producers' education level indicates completion of secondary school.
Lessons in Public Policy
The main lesson from the study is to highlight the importance of characterizing the target audience and beneficiaries of a public policy to determine if the adopted program is fulfilling its objectives. The study presented identified four different types of livestock producers in Mexico assisted by the same government program. The information obtained can then be used both in the formulation of new policies and in improvements to the already implemented program.
Reference
LEOS-RODRÍGUEZ, Juan A. et al. Characterization of livestock and livestock production units benefiting from the livestock productivity stimulus program (PROGAN) in Mexico. Agriculture, society and development, v. 5, no. 2, p. 213-230, 2008.
