Cattle Feed Center for Livestock Rearers

A Concept Note

Background:

Kachchh Falls under the semi-arid zone of the state and is known for its extreme climatic conditions and Due to its topographic limitations, Rainfed agriculture and animal husbandry have been traditional occupations in the area. The cattle rearing is a most prominent feature out of the expansion of grazing land in the district but the absence of subsidiary services like dairy, improved grazing land, financial services and quality cattle concentrate and feed required for animal husbandry.

The cattle feed center is a system to create infrastructure by saving transportation charges with bulk purchase instead of individual buying, elimination middlemen, receive quality feed and saving time with affordable prices to poor livestock developers.

Rationale /Need for cattle feed center:

Kachchh district could be marked in drought-prone areas with higher cattle populations. Every two years have drought which creates fragile livelihood options to the community. Due to the lack of rainfall, agriculture is shrinking to limited production and less productivity. In such a stress condition community depends on substantial livelihood like cattle rearing for survival but due to inadequate and quality fodder availability yearly, they depend upon the other sources like cattle feed. The villages situated in Kachchh are in a remote area in which market facilities for purchasing cattle feed or other agricultural input completely absent and people used to travel long distances to obtain the quality materials. Cattle rearers used to travel individuals for purchasing fodder/cattle feed from the nearby market, exploited by traders.

The cattle rearers face immense hardships in procuring grass during a drought in remote villages in the district. This resulted in the deaths of thousands of cattle. Another permanent problem was commuting a distance of 5 to 25 kms to procure cattle feed. They paid Rs.30/- per bag to the traders. Transporting it to the village cost another Rs.10/-. It was a waste of precious time, money and energy of the cattle rearers.

During the discussions in villages, villagers expressed about the need for quality and timely available feed to villages are very much essential for livestock developers because cattle rearers scattered into different villages in remote areas that would make it more difficult to acquire quality feed in time.

Objectives:

• To effectively increase the availability of cattle feed of right quality at the right time and right cost.
• To demonstrate the advantages of collective business processes in terms of quality procurement, cost-effectiveness, the economy of scale.
• To enhance the knowledge of the livestock community for the importance of cattle feed to the animal’s productivity.

Components:

Proposed Cattle feed Center will have the following components to commence with:

1. Center of cattle feed: cattle feed center will manage animal feed as per the requirement of local demand with timely supply
2. cattle feed Knowledge center: Apart from physical dispensing of cattle feed, this center will also keep a database on material and its suppliers for widespread use of quality cattle feed as well as using this strength for collective negotiation/ bargaining for cattle rearers, who are not the direct beneficiary.

Location and Logistics:

At present, the plan is to house these cattle feed center at 2 villages. The villages will be selected on the basis of the need for livestock rearers which will come up from micro planning activities. Center will require adequate space to accommodate the volume of cattle feed hence every village will have storage to begin with. It will be a de-centralized unit and will operate from livestock groups at every village. Dispensing of cattle feed would also be done at village’s level.

Criteria for establishment of cattle feed center:

The criteria would be for the establishment of CFC are as follows;

• The number of cattle in villages should be high and cattle rearing is the main occupation.
• Villages should in the remote.
• Cattle rearers are being exploited by traders.
• The village have a livestock group in the village.

How it would work:

It will run on the principle of stand-alone business principle but has allied activities for making it successful as well as complementing other programme initiatives. The management of cattle feed center has been planned in such a way that it can augment both market-oriented business processes and institutional structures keeping in view the long term plan of achieving static sustainability.

Who it would service:

Primarily, livestock rearers identified as the beneficiary who is part of an institution promoted at the village level. These interventions will specifically introduce livestock rearers who face constraints due to a lack of access to purchase facilities and credit.

Setting -up and operationalization:

The main activity to operationalize this concept is the procurement of Cattle feed, which is proposed through the following mechanism-

1. Meeting with cattle rearers
2. Animal Husbandry Group formation
3. Cattle Feed Center – management committee
4. Training & capacity building of committee (including exposure tour)
5. Procurement committee
6. Deciding the cattle feed Portfolio
7. Procurement of Material

Resources Required:

What funds are required to start a Cattle Feed Center?

Main principles of necessary fund for setting up Center:

• The number of cattle of the members of the cattle rearers group. More funds for feed would be required if the number of cattle is more.
• Mode of sale: cash or credit. Sale on credit blocks more money and therefore needs for funds for cattle feed. Cash transaction involves lesser fund.
• Method of purchase, weekly, fortnightly or monthly. The gap between purchases is an important factor because if purchases are made monthly, it would require more funds. Purchasing every week or fortnight would need a smaller amount.
• Cattle feed Center operating in the vicinity. If more centers are operational in close proximity, they can pool together and purchase stock on a weekly basis. This would require smaller funds.

Normally a milk animal is given 5kg of feed daily by the cattle rearers. If there are 100 animals, the daily requirement of cattle feed would be 500kgs. One bag weighs 50 kgs, so we need 10 bags per day. One bag on an average cost Rs.750/-, thereby requiring Rs.7,500/- daily. Weekly purchases would require Rs.52,500/-. The fortnightly purchase would amount to Rs. 112,500/- and monthly purchase would require Rs. 225,000/-.

Normally 50% of the sale happens on a weekly credit and so fortnightly purchase is desirable, while monthly purchase would inflate the amount.

An organization, agency or cattle rearer’s group starting a cattle feed center can work accordingly:

Expected Benefits/ Results:

1. Direct Support: This cattle feed will provide direct support to households engaged in livestock rearing on full time and regular basis.
2. Indirect Support: The cattle feed center will also help in developing quality concepts among other beneficiaries through the dissemination of information on quality feed supply.
3. Other Benefits: Increased awareness and willingness among livestock community on Value chain management and collective business processes; enhanced entrepreneurship skills among directly supported artisans, Community institutions get hands-on experience of managing Collective business enterprise with engagement in cattle feed management, procurement process, and dispensing

Shree Vivekanand Research and Training Institute

Mandvi Kutch, Gujarat – 370 465, India