Background
Growth in agricultural productivity is central to development. For transitional or developing countries, agricultural productivity, distribution and cultivating markets are crucial to reaching a stable economy until industrialization matures. Increases in agricultural productivity allow workers to move into other areas of the economy where the output per worker is substantially higher. Sector shifts caused by increased agriculture productivity represent 29 percent of GDP growth in developing countries. Poverty in many nations is directly linked to low agricultural productivity.
CEI has organized both grain processing and livestock economic development missions.
“Knowledge – and the power to harness its opportunities – is now recognized as a major driver of the development process in the global economy.” USAID report of Future Directions for Agriculture
How can a CEI program help?
A CEI agricultural mission to the U.S. provides hands-on learning experiences in all segments of agriculture including modern management techniques, products, technologies, equipment, organization, methods, and marketing and distribution systems for farms and production facilities. These enable product costs to be lowered, infrastructure strengthened, and more efficient use of existing facilities and manpower. The CEI mission promotes growth and knowledge through visiting working plants in the U.S., talking to experienced industry managers, and seeing and discussing with industry leaders what works and why. It provides an opportunity to learn how to compete in today’s markets, and where global industry trends are taking the agricultural community.
What will they see?
Economic development missions are designed to acquaint participants with a detailed operational overview of the most productive farms and agricultural production in the U.S. They will see and examine the procedures and practices used to achieve the highest yields from crops and livestock/poultry while lowering their production costs. Agricultural producers will see procedures, methods, and process improvements that allow them to achieve a higher level of throughput while significantly reducing costs. In most cases, the programs stress a more effective use of existing resources rather than focusing on a need for increased capital spending.
Topics to be covered include
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Modern farming techniques (No-till/low-till techniques, use of pesticides and fertilizers, implementing technology, reducing infant livestock fatality rates, etc.)
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Developing affordable agricultural credit systems
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Developing wholesale and retail markets for moving agro-based products
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Developing value-added agricultural based industries
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Developing agricultural extension services by providing crop protection, fertilizer, seeds, insecticide, pesticide and educational material to farmers
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How to measure and increase yields with lower costs and offsetting investments
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Shortening time-to-market
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Marketing practices and advertising programs
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Modern storage, transportation, distribution and crop preservation methods
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Sanitation & environmental requirements and solutions
Expected Benefits
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Reduced production costs
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Self-sustaining farming techniques
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Improved product yields and quality
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Improved labor management
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Increased revenues and profits
Where will the mission travel?
The economic development mission will travel throughout the agricultural heart of the United States, visiting crop, dairy, livestock, and poultry farms as appropriate. Research & Development facilities with special emphasis on products/procedures to reduce infant livestock fatality, improved feed mixes, and environmentally friendly, low-cost productivity measures, will add to the value of the mission.
Example Benefits from Ukraine missions
Cumulative productivity increases from the 32 participating Ukrainian farms generated the following first-year benefits:
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Milk production increased 21.6%
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Beef Production increased 18%
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Pork production increased 57.5%
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Poultry production increased 50%
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Livestock mortality rates decreased 12% to 1%
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40% percent reduction in fuel costs from the introduction of low-till techniques
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Grain yields increased 25%
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Farm labor was streamlined an average of 35% and shifted to production jobs in food processing.
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Average farm employee earnings increased 30% above the Ukraine minimum wage.
CEI has conducted programs in grain and livestock production. The following examples come from that experience.
Number of Crops
For many years, Ukrainian farmers had been told by the government that it was necessary to grow about 17 different crops. One reason was that the local governments had quotas for each crop and were not used to letting the market determine the amount of land to be devoted to each crop.
When traveling though the U.S. Midwest, mission participants were shocked to see field after field devoted to corn and soy. They did not see other crops although presumably some were being grown. They realized that if they could reduce the number of crops they grew, they would no longer need the variety of equipment, seeds, fertilizers, herbicides, and skilled technicians. In short, they could reduce their costs, improve productivity, and increase profits. This approach is now being used by several participants.
Shortening the time-to-market
Every farmer knows that the faster he brings pigs, chicken, and cattle to market weight, the sooner he will get paid. On the mission, the participants were able to discuss and see improved methods that are used in the U.S. which were the result of improved animal feeds, vitamins, and the use of feeds such as soy and alfalfa.
Reducing production costs with no-till planting
Farm leaders visiting US farms are shocked to learn that little or no plowing is done prior to planting some crops. They are used to deep plowing where the soil was turned over to a depth of about 1 foot. In some cases this required making multiple passes over the fields and exposing dormant weed seeds. U.S. farmers were using either low-till planting where the soil is disked to a depth of a few inches, or no-till planting where the soil is not turned over at all. Ukrainians could not believe the no-till practice until taken out into the fields where they could see for themselves.
The reduced amount of plowing resulted in tremendous savings in fuel and manpower. Just by using low-till methods they could save about 30% of their fuel costs. No-till farming resulted in savings of 50-75%. Labor costs were also reduced. Of course no-till farming requires new or modified planters, but some farmers were able to devise their own equipment. One offsetting cost was the greater need for herbicides.