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3 CGIAR is a global partnership that unites organizations engaged in research for a food secure future. The CGIAR Research Program on Livestock and Fish aims to increase the productivity of small-scale livestock and fish systems in sustainable ways, making meat, milk and fish more available and affordable across the developing world. The Program brings together four CGIAR centres: the International Livestock Research Institute (ILRI) with a mandate on livestock; WorldFish with a mandate on aquaculture; the International Center for Tropical Agriculture (CIAT), which works on forages; and the International Center for Research in the Dry Areas (ICARDA), which works on small ruminants This publication is licensed for use under the Creative Commons Attribution 4.0 International Licence. To view this licence, visit Unless otherwise noted, you are free to share (copy and redistribute the material in any medium or format), adapt (remix, transform, and build upon the material) for any purpose, even commercially, under the following conditions: ATTRIBUTION. The work must be attributed, but not in any way that suggests endorsement by the publisher or the author(s). 3

4 Introduction In Central America, smallholder farmers generate 75% of their income from dual purpose cattle farming that is, through the production of meat and milk. Nicaragua's livestock sector is the largest in the region, with a strong potential to increase productivity and marketing opportunities. However, the sector faces serious challenges to increase productivity of high quality milk and meat. Meat and Milk: Challenges of the Dual Purpose Cattle Value Chain in Nicaragua Inputs/ Services Production Collection/ Transformation Commercialization Consumption Nicaraguan smallholder cattle farmers productivity and product quality is negatively affected by a lack of adequate infrastructure, combined with often sub-optimal production practices. Inadequate pasture management causes soil degradation and feed deficiencies, issues which are exacerbated by climate change. At the same time, unhygienic milking and handling practices are detrimental to milk quality. Inadequate links between farmers, institutions, and consumers inhibit information flows and quality-based incentive mechanisms for both farmers and consumers. Other constraints include limited access to technical assistance, financial services, and markets. To address these challenges, there is a need for more efficient and productive smallholder cattle farming systems, improved natural resource integrity, increased added value to animal-source products, and strengthened links between the value chain components. This requires year-round high-quality feed availability, improved herd genetics and animal health management, increased adoption of sustainable production practices and technologies, and increased investments along the value chain to ensure access to markets and adequate infrastructure and equipment. Tackling these issues demands an approach that brings together diverse actors, knowledge, and resources to achieve collective reflection and problem-solving initiatives with the smallholder cattle farmers participating in experiments and capacity development. Farm families can be reached by better services from cooperatives and the industry, and increasing the reach of technical assistance by training local promoters. Cross-cutting elements such as capacity development, the involvement of women and youth, and the impact of climate change on livestock production, all have a significant impact on issues like low dry season milk productivity, price variability, and farm families trust in processing plants and collection centers. 4

5 Who Collects Nicaragua s Milk? In Nicaragua s cattle farming region, five out of nine total milk collection and processing plants are nonfunctional or functioning beneath their capacity. These plants, operating mainly through cooperatives and the private sector, collect 70% of total production, in contrast to 14% by artisanal family-owned processing plants. "Almost all of our production is exported. We export to the United States and to El Salvador [...] and we also have an agreement to export approximately 30,000 liters of milk daily to Venezuela. Our national market is minimal, and this is due to pricing. Our products have a higher quality, so our production costs are high, and our prices are high. There are semi-industrial plants that also produce high-quality products, but their costs are lower, and we cannot compete with that market [on a national level]. However, to export we must comply with strict quality standards. In that case, we have an advantage." Roberto Luna, Collection Center for Masiguito Cooperative (Camoapa, Nicaragua) Artisanal milk processing is usually done by women farmers. Strongly linked to artisanal collection centers processing milk in small quantities (between 15 and 20 liters per day), they produce, process, and commercialize inside rural territories, supplying local markets. "At noon we milk the cows, so we collect milk to make cuajada (artisanal pressed cheese). Sometimes we collect up to three gallons. I make the cuajada for our household consumption, and if there is any left over, we sell it. We send it to Camoapa on the bus that passes by here, and it goes directly to my husband's brother's house, who goes out and sells it. He sets the price, right now he told me they will pay between 30 and 35 cordobas for each pair of 1lb cuajadas." Concepción Murillo (Camoapa, Nicaragua) 5

6 Responding to the Nicaraguan Dual Purpose Cattle Sector's Challenges: The CGIAR Research Program on Livestock and Fish The CGIAR Research Program on Livestock and Fish (L&F) aims to increase the productivity of small-scale livestock systems in sustainable ways, which protect natural resources while increasing the number of farm families who benefit from ecosystem products and services. The Program s initiatives seek to improve smallholder farmers access to formal markets, increasing incomes and job opportunities throughout the value chain. At the same time, L&F is working to make animal-source foods more available and affordable for low-income consumers, particularly in the diets of women and children under 5 years of age. Finally, the Program aims to influence the development and implementation of policies which favor value chain improvements. To achieve these objectives, L&F is facilitating the transformation of conventional cattle production systems into sustainable systems with greater productivity, improved product quality, reduced greenhouse gas emissions, and increased capacity for adaptation to climate change. In Nicaragua, L&F activities focus on two of the most important municipalities for dairy and meat production: Camoapa and Matiguas. L&F conducted a situation analysis of the Nicaraguan dual purpose cattle value chain, applying baseline surveys, identifying key actors, and encouraging discussions at a national level and within each municipality. The Program is also leading research around the mitigation of the impacts of climate change, assessing the ecosystem benefits of improved pastures, and forages. L&F is publishing technical manuals on sustainable livestock production, and training farmers through Farmer Field Schools, promoting best practices on animal health, feeding, reproduction, genetics, and environment, including climate change resilience and generation of environmental services. 6

7 Cross-cutting Interventions to Strengthen the Dual Purpose Cattle Value Chain Sustainable Production to Access Formal Dairy and Meat Markets Strengthening Nicaragua s value chains for sustainable meat and milk products improves smallholder farmers competitiveness and income, while diversifying available products for national and regional markets. At the same time, the environmental footprint of dual purpose cattle farming is reduced, while increasing access to high-quality animal source foods for low-income consumers. With these benefits in mind, L&F and its partners are developing a network of promoters to lead Farmer Field Schools and provide the highest possible number of farm families with sustainable access to technical assistance. The Program is also implementing actions to improve market access for smallholder farmers. Furthermore, to impact policies at a national level, L&F encourages convergence between the public and private sectors, to establish support systems and create incentive mechanisms for sustainable cattle production. "I carefully manage hygiene to guarantee the quality of our milk. The cooperative is constantly raising awareness among farmers. This is important to us, because we don t produce large volumes, so we must aim for a higher quality product to have that advantage." Dagoberto Diaz (Camoapa, Nicaragua) 7

8 Gender and Development in the Value Chain Of every ten Nicaraguan women who own land, seven combine agriculture with dual purpose cattle production. Nicaragua s 2011 agricultural census indicates that 23% of farmers are women, who participate in the small and medium scale cattle production sector. However, a lack of awareness regarding women s contributions promotes gender inequalities which limit women s capacity to develop as economic agents and income generators, causing a negative impact on value chain development. Addressing this issue calls for clearer recognition of the multiple activities conducted by men and women in cattle production systems. At the same time, it requires increased equity in the distribution of domestic tasks; encouraging equal participation by both women and men in meetings and training sessions; ensuring an equitable focus in technical assistance initiatives; and reflecting upon the information channels used to reach farm families. "I always lived with my father, and he managed everything. I didn't work in the field. Now that I am here, now I do take care of the animals. I own this land, but my father hasn't given me the papers yet. But it is my inheritance, and the animals are also mine. Here I have three cows. The rest, my father has them, because in this [small piece of land] I can't keep many animals." Claudia Fernandez (Camoapa, Nicaragua) As part of the L&F gender research, gender capacities in local organizations were assessed, and a strategy was created to address weaknesses. Main gender components within the value chain have also been identified, including a study on gender dimensions linked to productive resource ownership; a study on gender dynamics and governance within the value chain; and participatory masculinity workshops to generate radio vignettes promoting equity in family farm participation and management. The Program also seeks to strengthen integration of gender dimensions into technical work areas. 8

9 The Livestock Sector and Climate Change Half of the greenhouse gases generated by agricultural production come from the livestock sector, which constitutes 7% of global emissions. Sustainable intensification based on improved forages and silvopastoral systems has proven to be an effective response for the sector to mitigate and adapt to the impacts of climate change, while providing valuable market opportunities for farm families. Incentive and compensation schemes for environmental services differentiate smallholder farm families cattle products, facilitating access to specialized market niches and providing benefits like soil protection, more efficient nutrient use, and restoring degraded lands while storing carbon. Best alternative practices are being identified through initiatives like carbon credit certification at small-scale farm level. "[The effects of] climate change are alarming... I used to haul water from far away. Women and children would walk for kilometers to reach the well. Our reforestation efforts, including applying silvopastoral systems, have helped us reverse the effects of the drought. We have done great harm to our planet, and this work is important to create a better world for ourselves and the next generations." Virgenza Gomez (Camoapa, Nicaragua) 9

10 L&F projects in Nicaragua The projects led by L&F in Nicaragua cover feeds and forages, genetic improvement, sustainable intensification, policies, and markets. L&F research results provide inputs for the improvement of pasture and cattle management, increasing cattle productivity, animal-source food availability, and opportunities to supplement income generation activities. Sustainable cattle production to compete in specialized markets The project "Competitive beef and dairy through sustainable intensification and specialized market access in Nicaragua" seeks to improve the competitiveness and income of small and medium scale cattle farmers in Nicaragua. Its strategy centers on strengthening local capacities and promoting sustainable production practices as a base to access specialized market niches. Exploring and testing market incentive mechanisms, the project aims to increase technology adoption and generate added value in milk and meat production. Through the creation of a sustainable livestock farming platform and collaboration with local partners, the project established 20 Farmer Field Schools with over 500 participating farmers. Of these, 75% have adopted sustainable practices. As a result, hectares of silvopastoral systems have been established, bringing heads of cattle under sustainable management systems. This increased milk production by 25% for 350 farm families, while milk quality improved for over half of participating farmers. Next steps include establishing territorial learning alliances, involving farmers, service providers, government institutions, and representatives of the livestock sector. 10

11 More milk and meat through better breeds Leading L&F efforts around livestock genetic improvement, "More milk and meat through better breeds" aim to map the genetic composition of dual purpose cattle. Using participatory methodologies and baseline surveys involving over 400 families, the project is identifying cattle breeds and types which are best suited for smallholder livestock production systems in Nicaragua, based on traits like hardiness, growth, and milk production. It is also creating a university research program linked to genetic monitoring and traceability of dual purpose cattle in the country. Project results are being used to determine priorities in areas of animal health, feeding, and cattle breeding. Next steps include training farm families on record-keeping to track cattle yield and supporting technicians and university students on using information to develop cattle breeding goals. "Keeping records of my animals has helped me a lot. I keep records of the cows' weight, milk yield, and the tests I conduct every month, as well as the calving intervals I am also involved in the genetic traceability initiative, and especially for this process, keeping these records helped me very much. All of the information requirements they asked of me, they were in my records." Dagoberto Diaz (Camoapa, Nicaragua) 11

12 Sustainable grasslands through improved grazing One of the biggest issues facing the Nicaraguan dual purpose cattle value chain is the lack of feeds and forages available during the dry season. In response to this challenge, "Intensifying sustainable grasslands through ecosystem services and improved grazing practices" is identifying forage species and grazing practices to maintain the quality and quantity of forage resources year-round. Nutritional value and carbon storage potential are among the desired characteristics in improved forage varieties. Encouraging the adoption of innovative pasture management practices and ecosystem services, the project supports smallholder cattle farmers in strategic decision-making on use of forages. "I am a small cattle farmer by family tradition, my entire family has been cattle farmers, and I have followed that inheritance. Of course, we have improved our management much more because of the training we have received, about how to manage our farm, how to improve our cattle, how to improve our forages, how to manage grazing and animal health. All of this has helped us very much to keep getting better." Dagoberto Diaz (Camoapa, Nicaragua) 12

13 About Livestock and Fish L&F works in Nicaragua alongside partners including international development organizations, such as Heifer International, Catholic Relief Services (CRS), Solidaridad Network, and the Netherlands Development Organization (SNV) ; national universities, such as the National Agricultural University (UNA); international universities, including the University of Mississippi and the University of Wisconsin in the United States, and the Austrian University of Applied Sciences (BOKU); dairy cooperatives, such as Nicacentro, Masiguito and San Francisco; national development organizations, such as the Association of Producers and Exporters of Nicaragua (APEN); international research centers, such as the Tropical Agricultural Research and Higher Education Center (CATIE); civil society organizations, such as the Women's Advocacy Group in Camoapa (GRUMIC); and the participation in public sector platforms, including ongoing collaborations with the Nicaraguan Institute for Agricultural Technology (INTA), the Ministry of Agriculture (MAG), and the Institute for Agricultural Protection and Health (IPSA). The CGIAR Research Program on Livestock and Fish (L&F) seeks to sustainably increase the productivity of small-scale livestock and fish systems, while making meat, milk, and fish more accessible and affordable for poor consumers in developing countries. The CGIAR is a global consortium of research organizations working for a sustainable, food-secure future. References: - Holmann, F., Mtimet, N., Mora, M.A. and Hoek, R. van der Dual-purpose milk and beef value chain development in Nicaragua: Past trends, current status and likely future directions. CIAT/ILRI Project Report. Nairobi, Kenya: International Livestock Research Institute (ILRI). - Cajina, A. (August 2013). Performance, Challenges and Opportunities of Nicaraguan Livestock Production [PowerPoint Presentation]. Retrieved from: - Mena, R. (August 2014). Análisis de cadenas Madriz, Nueva Segovia, Jinotega, Matagalpa [PowerPoint Presentation]. Retrieved from: Photo credits: Shadi Azadegan (CIAT), Rein van der Hoek (CIAT), Lucia Gaitan (CIAT), Julie Ojango (ILRI). 13

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