(3, 14, 15)
Aglink increased the productivity, efficiency and sustainability of large commercial, medium and smallholder clients by providing technical assistance and training in basic technologies such as animal nutrition, health and farm management, trade development, association development and facilitating access to credit. By the end of year one, Aglink had successfully improved the efficiency and productivity of target farms and processors through the application of recommendations of US and local consultants coupled with seminars and training sessions that helped to raise awareness among targeted clientele and key stakeholders about the livestock industry as a whole.
The Egyptian meat and farm technologies association secured a bulk contract with feed supplier ROBY in Egypt for grain which it retailed to its members at reduced prices saving them 38 Egyptian pounds per ton. 2000 metric tonnes were purchased during phase one of the project. The Egyptian milk producers association reduced their feed costs by 15%, increasing the feed conversion rates by 22% and raised the overall firm capacity by 50% as a result of adopting four new practices and three new technologies. By implementing new silage technolgies, the animal health cooperative, a diary produciton cooperative, computerized its record keeping and total mixed ration practices and increased its milk production by 30% from 6 to 7.8 tonnes per day.
Animal husbandry and milk handling practices at the farm level were often inadequate or improper. For example, AgLink found such elementary production-inhibiting practices as feeding berseem before it was sufficiently dry and milking to the very last drop of milk. The project also found sanitation could be improved by raising the roof of animal sheds to permit drying of muck and by eliminating a practice of putting wet muck on the cow’s teats. In addition, feed rations are less than optimal; however, this is probably as much a question of affordability as it is lack of knowledge. This situation provides opportunities for significant low-technology, low-cost technology transfer, such as the AgLink examples. These improvements will improve the quality of milk and red meat production, increase productivity, and reduce costs. Cattle and buffalo milk issues requires an integrated approach to improve the entire sector—animal husbandry, on-farm quality, assembly transportation, and processing.
The livestock and poultry sector is traditionally highly integrated with the crop sub-sector. It was estimated that 40 percent of the total value of farm livestock production, in the form of animal power and manure, is a direct input to crop production and that 22 percent of crop products (mainly winter berseem clover) are direct inputs to livestock production. Therefore, the livestock sub-sector is a main consideration in cropping decisions, and vice versa.
Not only is the livestock and poultry sector an important source of cash income to family farms, but of equal importance is the fact that the sector offers relatively higher opportunities for family employment. It was estimated, in the only available farm budget survey data, that the livestock sector utilized 40 percent of the total agricultural labor supply and 71 percent of female labor in agriculture (Fitch & Soliman, Livestock Economy in Egypt, 1982). Thirdly, it also benefits crop production by providing manure and draft power.
A commercial livestock and poultry supply industry and a national marketing system are emerging for new products such as cheese, ice cream, processed meat, and packaged eggs. However, this industry is characterized by inefficiencies that are reflected in high product losses in milk, meat, and egg assembly and transportation; hatching chicks; and the handling of live birds. Such losses reduce volumes and lead to a reduction in quality and in producer prices. It is hoped that the Food Export Council of the Ministry of Trade and Industry (chapter 9) will be a help in improving the quality and market acceptance of these products. info@feceg.com
As a result, the Egyptian farmers benefited from:
· Increasing the importation of US Agricultural equipment for a total of $26 million dollars.
· Dramatic increases in sales among Egyptian agribusiness firms resulted in 24.5 million increased revenues and 66.15 million increased revenues among non-core clients.
· Long-term business relationships were established between Egyptian and US agribusiness firms and farmers as well.
Visits that Egyptian business people made to the US agribusiness firms resulted in new contracts signed bewteen US and Egyptian firms valued at an averge of $70,000 dollars for each.
The Egyptian milk producers association EMPA which was formed in 1997 had a mandate defined by the founders and members based on immediate needs particularly related to advocacy, input supply services and technical assistance for the members. In its first year of operation, EMPA succesfully negotatied favorable prices for feed inputs such as cotton seed and molasses and actively lobbied for lower tariffs on grain. Aglink’s association and development activities focused on building capacity through the provision of training for management, the board of directors and general membership.
Beyond the farm gate, there are constraints in assembly, transportation, and processing. The most serious are in milk assembly, where inadequate facilities reduce the incentive for farmers to increase production. This is true not only of GOE assembly facilities but also of private sector facilities. There has been some improvement in private sector facilities serving or operated by modern private sector processors that produce quality products. There are also losses in quality because of lack of refrigerated transportation.
The lack of standards in livestock trading is a disincentive to production of better livestock. Standards pertaining to weight classifications and meat quality and health (as gauged by appearance) would create a direct connection in the farmer’s mind between animal husbandry practices and income received for the farmer.
The slaughtering industry is in need of major improvements. There is major overcapacity, thus increasing per-unit costs of all in processing operations. Few plants employ modern techniques. These deficiencies are directly attributable to GOE investment in slaughterhouse facilities in the past. They overbuilt and do not have the money to modernize. The entire industry, and consumers, would benefit from a rationalization of the industry that would increase capacity utilization, thereby decreasing costs that could result in reduced prices to consumers and facilities modernization (which would also lead to reduced costs).
The GOE used to subsidize feed and feed ingredients and enforce low prices for manufactured feeds. This was accompanied by full governmental control on imports of ingredients and by quotas to feed mills. This promoted an inefficient industry in terms of productivity and profitability. With the removal of subsidies, a more efficient feed industry has emerged. In addition, the feed industry has received technical assistance in producing lower-cost feeds from foreign aid projects.
The E.U.-sponsored the Animal Feed Quality Improvement Project developed the technology for treating straw and crop residues with ammonia and supplementation with molasses to increase feeding value. MALR extension staff disseminated these technologies and established eight centers for ammonia feed distribution in the Delta. The GTZ has supported the Non-Traditional Fodder Project in three villages. Its objective is to integrate crop residues and by-products in animal feeds at the farm level. Accordingly, MALR has implemented some extension packages. USAID’s AgLink, Africare, and CARE projects have provided direct delivery of technical assistance to livestock farmers.
Commercial, industrialized, high-technology poultry systems produced 73 percent of all broilers and table eggs in 2000. The industry suffers from numerous problems, most of which are related to overcapacity in all areas—production, hatcheries, feed milling, and slaughter houses. Production, feed milling, hatching, and veterinary services are largely owned by large commercial operations. Questions were raised regarding the rationalization of the slaughterhouse industry regarding the privatization of GOE-owned slaughterhouses and feed mills.