Relative performance of barley in Iran and India and its role in livestock industry

Transcription

1 Cuban Journal of Agricultural Science, Volume 39, No. 1, Relative performance of barley in and and its role in livestock industry Syamak Mashayekhi 1, T.R. Keshava Reddy 2 and Lalith Achoth 3 1 Tehran province Natural Resources & Agricultural Research Center. P.O. Box: ,Taleghani Ave., Tehran, s_mashayekhi@yahoo.com 2 Agricultural Economics Dept., CBTMPCS, UAS, Bangalore , trkuas@yahoo.co.in 3 Dairy Economics & Management Dept., Hebbal, Bangalore , lalithuas@yahoo.com The purpose of this study is to highlight the relative performance of barley in and and its final uses. Therefore, its production, yield, area, imports, exports and utilization in livestock and poultry industries were the major parameters considered in this study. The compound growth rate (CGR) and the coefficient of variation (CV) of these variables were computed for the years It is concluded that in most of the parameters, is more instable than and there is a scope for both countries not only to satisfy domestic demand but also to enter the exports market of this crop. Considering the growing per capita consumption of livestock and poultry products and the comparative advantage of barley in the feed industry (both in terms of nutritive value and price), these countries should improve and expand barley production for the livestock industry. This will result in the reduction of imports and the expansion of livestock and the poultry industry in and. Key words: barley, livestock, compound growth rate, coefficient of variation. Barley is a cereal grain of the genus Hordeum and the family Gramineae, which is very adaptable to various environments. In fact, it is the most adaptable of all the cereals (Hunter 1982). Barley is more resistant to dry heat compared to other small grains. This feature allows it to grow under near desert conditions as in North Africa (Briggs 1978). The importance of barley and its products can be understood in today s world, from the fact that there are 94 producing, 87 exporting and 162 barleyimporting countries around the world. Barley is the fourth largest grain crop after wheat, rice, and corn in the world. The three major barley producer countries are the Russian Federation, Canada and Germany, which together produced about 30 % of the total barley production. Barley is considered as one of the most important crops for trade after wheat, rice and corn in the world. Saudi Arabia, U.S.A. and China are the major importers of barley and among exporters, Germany, France and Australia. Barley has multiple uses and grown for feed, food and malting. To date there are hardly few studies on the economics of barley crop in the world. Papayiannis (1990) described the main economic characteristics of wheat and barley farms in Cyprus. Sharma and Moorti (1990) estimated Cobb-Douglas production function of barley for tribal farms of Himachal Pradesh,. Yao (1996) employed a Cobb- Douglas production function to estimate the impact of various farm inputs on barley production in Ethiopia. Salman (1999) estimated the cost function and economic size of barley farms in Jordan. Lind (1999) studied long-run behavior in world cereal markets using growth equation and coefficient of variation. Barley is the second most important crop in whereas in it is a minor crop. In contrast, barley is used for animal feeds in, whereas as a food in. This study has been

2 104 carried out to compare and contrast the performance of Barley in and. Materials and Methods The data on barley and other cereals and livestock and poultry (stock and products) for the world, and were obtained from the publications of the Food and Agricultural Organization (FAO) for the period 1991 to 2003 (Anon a, b and c and FAO 2003). Some of the data pertaining to were collected from the publications of the Directorate of Economics and Statistics, Ministry of Agriculture, Government of (Anon ). The data related to were also obtained from the Agriculture Yearbook (various issues) published by the Directorate of Information and Statistics, Ministry of Jihad- Agriculture, Government of (Anon d). The compound growth rate (CGR) and coefficient of variation (CV) of the variables under study have been computed. To calculate the compound growth rate, the exponential function below was used: Y = ae bt+ut Then the exponential model was linearized as follows, Ln Y = Ln(a) + b t + U t Where, Y = Dependent variable t = Independent variable (Time, 1991 = 1,.., 2002 = 12) a = Intercept b = Regression Coefficient U t = disturbance term. The model was estimated using the Ordinary Least Square (O.L.S) method. The compound growth rate (%) was computed (Yamane 1995) as: g = (b - 1) x 100 In order to study the variability, the coefficient of variation (CV) was used, which is the standard deviation divided by the mean of the variable under study. In applied statistics, the coefficient of variation is widely calculated and interpreted even when the sample size of the data set is very small (Wong and Wu 2002). Cuban Journal of Agricultural Science, Volume 39, No. 1, Results and Discussion Performance of barley in and After wheat, barley is the second major crop produced in. In, barley is a minor crop, but in terms of absolute quantities the level of production in and are more or less on a par. Barley production, area and yield in and (1991 to 2001) are summarized in table 1 (Derived from Anon a and d and Anon ). The share of barley production in and to the total world production during this period is about 1.74 and 1 %, respectively. and occupy the fifteenth and nineteenth places out of 94 barley-producing countries. The compound growth rate (CGR) shows that both and face a decrease in barley production. The coefficient of variation (CV) in the case of barley production in is greater than, which indicates that the fluctuation in barley production in has been higher than in. The compound growth rate indicates that both and faced a secular decrease in barley area, but the reduction in the barley area in has been more pronounced than in by about 4 %. The average yields per hectare of barley crop in and are 25 and 23 % lower than the world average ( kg/ha) during the same period, respectively. Thus, there is scope to increase the yield levels in both and. The CV indicates that is more instable than in barley yield. has experienced an increase in the yields of barley registering a rate of growth of 2.3 %. Barley is grown in significant quantities in all the provinces of, but Khorasan has occupied the first place in terms of barley area among the 29 provinces of (Anon 2001). Similarly, Uttar Pradesh ranks in the first place in the barley cultivated in (Subbian et al. 2000). Barley yields in the world, and in the years are presented in figure 1, which shows that the average barley output per hectare in both and has always been lower than the world average. The imports and exports of Barley and its products in

3 Cuban Journal of Agricultural Science, Volume 39, No. 1, and during the period are exports market of barley and its products by summarized in table 2 (derived from Anon only and %, respectively. 2002c). Livestock and poultry industry in stands 7 th in the world in regards to and barley imports, whereas imports a Livestock and poultry industry is an important source of income in rural areas in both negligible quantity of barley. imports its requirement of barley from the European Union and (Anon 2000 and 2003). The (EU), Canada, Kazakhstan and Australia. In livestock sub-sector accounted for about 23, imports constitute an important share of and 20 % of the agricultural gross domestic domestic supply of barley. Over the period of product in and, respectively. More study, imports of barley have increased. While than one-third of the value added in agriculture registered a 15 % rate of growth of imports, comes from livestock such as sheep, goats and, in, it was 52 % per year. Both and to lesser extent cattle in. constitute a very small share in the world Table 1. Area, production and yield of barley (1991 to 2001) Production t S D C GR, % CV, % Area Harvested ha S D C GR, % CV, % Yield kg/ha S D C GR, % CV, % Kg World Figure 1. Barley yield in the world, and ( ) Table 2. Imports and exports of barley and its products in and (1991 to 2000) Imports t S D C GR, % CV, % Exports t S D C GR, % CV, %

4 106 The livestock stock in and (1994 to 2003) is summarized in table 3 (derived from Anon a and FAO 2003). possesses one of the largest livestock populations in the world. The populations of monogastrics have grown faster, compared to ruminants, in both and. The number of livestock in has grown almost the double (7.5 % vs. 3.8 %) and more instable than during the period of the study. Cuban Journal of Agricultural Science, Volume 39, No. 1, production was primarily from increased numbers of animals rather than increase in production productivity. The per capita consumption of red meat, egg and milk in both countries is lower than the world average during the period of the study. Role of barley in animal feeding in and Barley is a very useful source of nutrients for growing, gestating, and lactating dairy Table 3. Livestock stock in and (1994 to 2003) Particular Average population, Millions C GR, % C V, % Average population, Millions C GR, % CV, % Ruminants Buffalo Cattle Goat Sheep Camel Others Monogastrics Chicken Pig Others Total livestock Note: Others in ruminants includes ass and, in monogastrics, duck, goose and horse The growing human population, the rising per capita income, and the increasing urbanization are fuelling rapid growth in the demand for food of animal origin in and. The production and per capita consumption of livestock and poultry products in and in are summarized in table 4 and 5 (derived from Anon a and b). Since the production patterns closely follow consumption patterns, therefore, the highest annual rate of growth belongs to both production and per capita consumption of poultry meat simultaneously and, on the contrary, the lowest pertains to red meat. On the other hand, the rates of growth in number of monogastrics (table 3), and poultry meat in both and are more or less on par, which indicates expansion of poultry meat cattle, beef cattle, sheep and poultry providing more protein than most other grains. It produces a highly digestible starch (energy), and useful fiber (Anderson 1998). High protein content is desirable in barley used for feed (Rasmusson 1985). The nutritive value of barley is primarily in its energy value, with protein being of secondary importance (Hunt 1996). Corn has often been reported to be the most profitable feed grain for beef cattle, however in recent times barley is considered as the most desirable feed grain. Barley has higher protein content compared to corn, which reduces the need for a protein supplement in a feed compound. Consequently, barley, although grown in smaller quantities, competes with both corn and sorghum as a feed grain. Since little or no processing is required and the need for

5 Cuban Journal of Agricultural Science, Volume 39, No. 1, supplemental protein is reduced, barley often results in lower cost of gains when compared with corn. Barley is a cost effective substitute for corn (Anderson 1998). Barley is often fed as a supplemental energy source to cattle because it is extensively grown, readily available, and less expensive than corn and other cereal grains (Feng et al. 1995). Barley grown for feed is used in all types of animal food. Most of the barley grown in the world is utilized as animal feed rather than for human consumption. The utilization of cereals for feeding in and ( ) is summarized in table 6 (derived from Anon a and d and Anon ). Barley is the third most important cereal used for animal feeds in terms of quantity after corn in both and. On contrast with corn and wheat, barley and sorghum are faced with negative growth rate during the period of the study. Barley is extensively fed to beef cattle, dairy cattle and poultry in (90.53 %), whereas in the case of, it is mostly used for human consumption (76.8 %) and only 9.53 % is utilized for animal feeding. On an average ( ) about 68.1 % of total barley in the world has been used as livestock feed and the utilization pattern of barley in is almost like the world whereas in, it is not. Table 4. Production of livestock and poultry products (1993 to 2002) Particular % of Productio n Average, C GR, % Average, CGR, % toworld toworld Red meat Poultry meat Egg Milk Table 5. Per capita consumption of livestock and poultry products (1993 to 2002) Particular World Consumption, C GR, % Consumption, C GR, % Consumption, CGR, % kg/year kg/year kg/year Red meat Poultry meat Egg Milk Table 6. Livestock and poultry feeding in and (1993 to 2002) Crop Feeding Percentage CGR, % Feeding Percentage CGR, % utilization, tototal crop supply utilization, tototal crop supply Wheat Corn Barley Sorghum Total cereals Sorghum was utilized for feeding in negligible quantity in in the year 2002

6 108 From the above analysis, we can summarise that contrary to desirable nutritive value of barley and its rule in reduction of feed cost, both and face a decrease in barley production and its role in animal feeding in recent years. In spite of attempts made by the government of, the average of production per hectare has continually reduced, which could be the result of more emphasis on wheat, the use of low yielding varieties and the lack of basic infrastructure in production as well as agricultural research. The results show that there is scope to increase the yield levels of barley in both and. Although barley in is a minor crop, in it is the second major crop. It is interesting to note that in most of the indices is lagging behind. Furthermore, the results indicate that there is no specific programme for the reduction of the imports in and the increase in the exports in, which is visualized from the rate of growth in imports and exports. Taking into consideration the growing per capita consumption of livestock and poultry products in both and, which is close to the rate of growth of production, on the one side and comparative advantage of barley for feeding on the other, barley needs to be promoted by both countries, not only because of its food value, but also because it is a cost effective substitute for corn and wheat in the feed industry. References Anderson, V.L The feeding value of barley. N.D. Barley Council Special Publication. 1 st Ed. North Dakota State University, USA Anon a. Production yearbook (Statistics Series No.45-56). Food and Agricultural Organization. Rome, Italy Anon b. The state of food and agriculture (Agriculture Series No.24-35). Food and Agricultural Organization. Rome, Italy Anon c. Trade yearbook (Statistics Series No.45-56). Food and Agricultural Organization. Rome, Italy Anon d. agriculture yearbook. Agricultural Statistics and Information Department. Ministry of Jihad-Agriculture. Government of, Tehran (Various Issues) Cuban Journal of Agricultural Science, Volume 39, No. 1, Anon Agricultural statistics at a glance. Directorate of Economics and Statistics. Department of Agriculture and Cooperation. Ministry of Agriculture. Government of. New Delhi, (Various Issues) Anon n agriculture in brief. 27 th Ed. Directorate of Economics and Statistics. Ministry of Agriculture. Government of. New Delhi, Anon statistical yearbook Statistical Center of. Government of. Tehran, Anon National account of (1959/ /01). Economic Account Department. Central Bank of. Tehran, Briggs, D.E Barley. 1 st Ed. Chapman and Hall Ltd. London, U.K. p. 612 FAO Statistical database, Online data <http/ /: Feng, P., Hunt, C.W., Prichard, G.T. & Parish, S.M Effect of barley variety and dietary barley content on digestive function in beef steers fed grass hay-based diets. J. Anim. Sci. 73:3476 Hunt, C.W Factors affecting the feeding quality of barley for ruminants. Anim. Feed Sci. Tech. 62:37 Hunter, H Barley crop. 1 st Ed. Crosby Lockwood and Son Ltd. London, U.K. p. 36 Lind, K.M Long-run behavior and uncertainty in world cereal markets. Working Paper No.9/ 99, Danish Institute of Agricultural and Fisheries Economics (SJFI), Denmark. p. 28 Papayiannis, C Production economics of wheat and barley. Cyprus Agric. Res. Inst. 28:17 Rasmusson, D.C Barley. 1 st Ed. Publishers Madison and Wisconsin. USA. p. 15 Salman, A.Z Econometric analysis of Barley production in low rainfall areas in Jordan. J. Dirasat-Agric. Sci. 26:36 Sharma, H.R. & Thakur Moorti, T.V Resource use, farm size and returns to scale on tribal farms of Himachal Pradesh. Agric. Situation in. 44:885 Subbian, P., Annadurai, K. & Palaniappan, S.P Agriculture facts and figures. 1 st Ed. Kalyani Publishers. New Delhi,. p. 76 Wong, A.C.M. & Wu, J Small aample asymptotic inference for the coefficient of variation: normal and nonnormal models. J. Stat. Planning Inference. 114:73 Yamane, T Mathematics for economists an elementary survey. 2 nd Ed. Prentice-Hall of Private Limited. New Delhi.. p. 265 Yao, S The determinants of cereal crop productivity of the peasant farm sector in Ethiopia, J. Inter. Devel. 8:69 Received: February 19, 2004.