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

May 24, 2015

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Page 1: Improving cattle profitability in mixed crop-livestock systems in south central coastal Vietnam using an integrated modelling approach. David Parsons

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

Page 2: Improving cattle profitability in mixed crop-livestock systems in south central coastal Vietnam using an integrated modelling approach. David Parsons

TIAR – research • development • extension • education • training

Q. Can we use modelling tools to design improved farming systems for smallholder beef producers in Vietnam?

Page 3: Improving cattle profitability in mixed crop-livestock systems in south central coastal Vietnam using an integrated modelling approach. David Parsons

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/TIARCSIROHue UniversityResearch and Development Centre for Animal Husbandry

Page 4: Improving cattle profitability in mixed crop-livestock systems in south central coastal Vietnam using an integrated modelling approach. David Parsons

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

Page 5: Improving cattle profitability in mixed crop-livestock systems in south central coastal Vietnam using an integrated modelling approach. David Parsons

TIAR – research • development • extension • education • training

Constraintslow fertility sandy soilshigh temperatures, long dry season, flooding limited quantity and quality of feedspoor livestock production

long calving intervals high calf mortality rateslow growth rateslow cattle productivity and efficiency

Page 6: Improving cattle profitability in mixed crop-livestock systems in south central coastal Vietnam using an integrated modelling approach. David Parsons

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.

Page 7: Improving cattle profitability in mixed crop-livestock systems in south central coastal Vietnam using an integrated modelling approach. David Parsons

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 regularlyinventories of local feedstuffsTrialled potential suitable forage varieties

•Workshops with farmers and other stakeholders (~20 people/ commune)•Interviews with leaders, officials•Focus group discussions (~5 people/commune).

Page 8: Improving cattle profitability in mixed crop-livestock systems in south central coastal Vietnam using an integrated modelling approach. David Parsons

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

Rice Winter – Spring rice

crop Summer-Autumn rice

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

Page 9: Improving cattle profitability in mixed crop-livestock systems in south central coastal Vietnam using an integrated modelling approach. David Parsons

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.

Page 10: Improving cattle profitability in mixed crop-livestock systems in south central coastal Vietnam using an integrated modelling approach. David Parsons

Livestock yield

Forage yield Crop, forage yield

OutputsCattle, crop,

forage, profit, labour

InputsClimate

SoilManagement

PriceCosts

LabourMachinery

Feasible / most profitable strategy

Herd structure & management

Integrated Analysis Tool

Livestock model Economic

model

APSIM(Crop/forage model)

Page 11: Improving cattle profitability in mixed crop-livestock systems in south central coastal Vietnam using an integrated modelling approach. David Parsons

TIAR – research • development • extension • education • training

Baseline

•Farmers were making sufficient income to cover their living costs•Forage deficit of around 1600kg •3 years to get animals to a marketable size.

Scenario Cut & carry kg/day

Animals sold over 10 years

Cattle sale weight (kg)

Fodder surplus (kg/month)

Gross Margin (M VND/year)

Final cash balance (M 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

Page 12: Improving cattle profitability in mixed crop-livestock systems in south central coastal Vietnam using an integrated modelling approach. David Parsons

TIAR – research • development • extension • education • training

Scenario 1 - Elephant grass

•Improved the feed supply to animals, increased the animal sale weight, and eliminated the forage deficit.

Scenario Cut & carry kg/day

Animals sold over 10 years

Cattle sale weight (kg)

Fodder surplus (kg/month)

Gross Margin (M VND/year)

Final cash 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

Page 13: Improving cattle profitability in mixed crop-livestock systems in south central coastal Vietnam using an integrated modelling approach. David Parsons

TIAR – research • development • extension • education • training

Scenario 2 – tree legumes

•Improved forage quality and increased calving rate and liveweight gain, as well as providing a forage surplus.

Scenario Cut & carry kg/day

Animals sold over 10 years

Cattle sale weight (kg)

Fodder surplus (kg/month)

Gross Margin (M VND/year)

Final cash 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

Page 14: Improving cattle profitability in mixed crop-livestock systems in south central coastal Vietnam using an integrated modelling approach. David Parsons

TIAR – research • development • extension • education • training

Scenario 3 – improved husbandry

•Introduction of controlled mating (annual calving) and early weaning of calves increased cattle sales to 9 over the 10-year period (Scenario 4).

Scenario Cut & carry kg/day

Animals sold over 10 years

Cattle sale weight (kg)

Fodder surplus (kg/month)

Gross Margin (M VND/year)

Final cash balance (M VND)

Baseline 20 5-6 200 -1600 10 48

Scenario 3 As above with seasonal mating and early weaning

25 8-9 350 3500 10-20 95

•increased animals sales, sale weight

Page 15: Improving cattle profitability in mixed crop-livestock systems in south central coastal Vietnam using an integrated modelling approach. David Parsons

TIAR – research • development • extension • education • training

Scenario 4 - extra cow

•increased animals sales and cash balance

Scenario Cut & carry kg/day

Animals sold over 10 years

Cattle sale weight (kg)

Fodder surplus (kg/month)

Gross Margin (M VND/year)

Final cash 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

Page 16: Improving cattle profitability in mixed crop-livestock systems in south central coastal Vietnam using an integrated modelling approach. David Parsons

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

Page 17: Improving cattle profitability in mixed crop-livestock systems in south central coastal Vietnam using an integrated modelling approach. David Parsons

TIAR – research • development • extension • education • training

Results so far

These options are currently being tested in collaboration with 15 farmers in each study commune.

Page 18: Improving cattle profitability in mixed crop-livestock systems in south central coastal Vietnam using an integrated modelling approach. David Parsons

TIAR – research • development • extension • education • training

Thanks!

Particularly to the farmers