2nd LSIRD Conference on Livestock production in the European LFAs, Bray, Ireland. Dec '98

Extensive beef cattle production in Portugal: the added value of indigenous breeds in the beef market

Rodrigues, A.M., Pinto de Andrade, L. and Várzea Rodrigues, J.

Escola Superior Agrária de Castelo Branco, Quinta da Srª de Mércules, 6000 Castelo Branco,Portugal

Summary

Beef production in less favoured areas in Portugal is usually extensive, and along with forestry and agriculture is one of the main sources of income and employment. It has also an important role both on social and on environmental context. However, Portugal is not self sufficient in beef production and due to BSE crisis, it is difficult to envisage consumption, making a full recovery in the short to medium term, but we can foresee an emergent market for beef, produced by Portuguese indigenous breeds in extensive systems, with an uniqueness characteristics. Beef from indigenous breeds is considered to be a high quality product by producers, and consumers, mainly because of the superior taste and structure of the meat resulting from the production methods: differences within breeds, slow growth rate and type of vegetation consumed. This fact, allowed the enlargement of small niche markets and has lead to an increase of the value of the meat with protected designation of origin (PDO). The specificity of a product linked with a PDO has a fundamental role in the establishment of the strategies for agricultural enterprises and in rural development. Since Portuguese Agriculture, can not compete through quantity or costs with other competitors, differentiation and quality seems to be the alternative to stimulate rural activities in LFAs and create a regional added value able to promote sustainable development. So, it is crucial to face and stimulate the maintenance of our extensive animal production systems. In this way, we will be able to deal with the new emergent problems like environmental and landscape protection. On the other hand, it will be possible to contribute for the decrease of the human and physical desertification of our rural areas.

INTRODUCTION

Cattle like all the ruminants have served and will continue to serve a valuable role in sustainable agricultural systems. They are particularly useful in converting vast renewable resources from rangeland pasture and crop residues or other by-products into food edible for humans.

The meat consumption "per capita" has been increasing and it is usually bigger in countries with larger economics resources. The appearance of diseases, like Bovine Spongiphorm Encephalopathy (BSE) associated to the consumption of products of bovine origin, has lead many consumers to prefer the meat of another animal species. But the problem is not summarised to the possible transmission of the BSE agent. The indiscriminate use of hormones, of several chemical products and antibiotics, contributes to the fear in the usual meat consumers.

The intensive livestock production systems, intend to improve all the genetic capacities of the animals and of the used feedstuffs. Nevertheless, if it allows to decrease the production costs, also creates serious problems of environmental pollution.

The small farmer, with little economic resources and a not very developed technology, does not have possibility to compete with the unitary prices obtained by the great producers. This has lead to the abandonment of lands and the increasing danger of desertification of large rural areas of the country. It becomes more and more necessary to produce quality meat that, for besides its organoleptic qualities, also gives sanitary warranties. The production system of those products are not so efficient as others but, besides the quality that they allow and a more balanced use of the natural resources, they do not cause environmental pollution, they still contribute to the farmers' settlement in rural areas with risk of desertification, they should be motivated.

In Portugal the beef cattle production from indigenous breeds can carry out those functions (namely the production of quality products) and these producers should be supported and incentived. The added value of that meat can be justified in the appointed reasons.

1- Cattle numbers, meat production and consumption

In Portugal cattle numbers have suffered a slight decrease in the last years: from 1416x10³ animals in 1991 to 1311x10³ animals in 1996. Of this animals, 21.8% were meat cows, 27.6% dairy cows, 26.7% calves, 17.8% animals between 1 and 2 years old and 6.1% other bovines (Anuário Pecuário, 1997). These results show a decrease of reproductive cows (-7.9%), characterised by an accentuated decline of the dairy cattle population (-8.1%), only partially balanced by an increase of the beef cattle population (+1.2%). The farmer's preferences will be related with the prize provided for this animals (Anuário Pecuário 1997).

In terms of the geographical distribution, we can see: in the North a total of 79x10³ beef cows that correspond to 37% of the regional herd; in the Center we have 58x10³ beef cows that correspond to 32% of the regional herd; in the South, we have 129x10³ beef cows which correspond to 85% of regional herd (97% of the beef cows in the South are in Alentejo region). The beef cattle production assumes a major importance in the regions of Alentejo and Interior North. The number of beef cattle is higher than the number of dairy cattle in the Interior North (54%) and in the Alentejo (86%).

In 1995, 397x10³ animals were slaughtered, in what corresponds to 104x10³ tonnes (with a medium weight of 261.2 kg/carcass). In 1996 a decrease in the number of slaughtered animals (391x10³) was observed, as well as the amount of meat for consumption (99x10³ tonnes), (less 4.6)%; the medium weight of the carcass also decreased (253kg). The geographical distribution of the slaughtering indicates that 43% happened in the region of Entre Douro e Minho, 7.1% in Trás os Montes e Alto Douro, 11.3% in Beira Litoral, 1.5% in Beira Interior, 26.3% in Ribatejo e Oeste, 9.8% in Alentejo and 1% in Algarve. In the Interior North (Trás os Montes e Alto Douro), Interior Center (Beira Interior) and Alentejo were slaughtered 18.4% of the total of national slaughtered animals. This situation shows that an important part of the production was slaughtered outside of the production area and usually near to the great consumption markets, located essentially on the Portuguese coast, North of the river Tejo.

In the last decade an increase of the beef consumption was verified. From 137x10³ ton. in 1988 to 174x10³ ton in 1995. In 1996 a decrease was observed in the consumption, that resulted of the consumer's distrust, due to BSE. In some regions a decline of 70% in the consumption was observed. However, an increase in the demand of meat from indigenous breeds, bred in extensive systems was verified (Anuário Pecuário, 1997).

The analysis of the national statistics shows that:

- The meat consumption per capita and beef consumption per capita are lower in Portugal compared with the same parameters for the U.E. (87 kg vs 94 kg meat/person/year and 17.0 kg vs 21 kg beef/person/year, respectively).

- The self-sufficiency decreased, in the last years, from 79.0% in 1990 to 56.9% in 1995.

The person/year consumption is approaching of the medium values for the other U.E countries. A tendency of the consumers is verified to seek quality products, namely the meat provided from indigenous breeds maid in extensive production systems with a regime based on the pasture and on local forage production.

2. Extensive systems

In extensive systems production is mainly monitored by man and not modified by him. Consequently the diversity and quality of environment and landscape is ensured. The livestock extensive production systems are more natural and it is acceptable that animals may be in equilibrium with the environment. For that reason there are no problems with animal welfare allowing them to express its normal behaviour.

In table 1 we can see a brief characterisation of extensive systems compared with intensive production systems. The characteristics indicated for the extensive systems refers mainly to the ones used on the indigenous breeds. The feeding of this breeds is based on natural resources and is submitted to the conditions that influence those resources: soil and weather conditions (Table 2).

The Portuguese traditional extensive production systems are sustainable and based on the use of local available resources (genetic basis of indigenous bovine breeds and spontaneous or seeded feedstuffs).

The traditional production systems are perfectly integrated in the Common Agricultural Policy (CAP). They respect the use of soils and they are well adapted to the climatic conditions of the country. Livestock extensive production is one way of giving life and quality to rural landscape, avoiding rural desertification (Vaz Portugal, 1990). The concept of extensification previewed on the E.U. agricultural policies and applied to Portugal does not have the meaning of "need of extensification", once this situation should lead to the abandonment of the land.

We are in the presence of production systems were we can look for an animal that can be adapted to the conditions, or we can assume the existence of an well adapted breed, which origins a typical animal product, with an added value.

Also in this area, the work is not concluded. Its essential to invest and support the research in the productive parameters of indigenous breeds, which allows to improve the production results, and the production conditions, guaranteeing the particularities of the final animal product. Obviously it is necessary to select the animals that shows the best biological and productive indicators in their own environment.

We can identify two extensive beef cattle production systems in Portugal. One is located in the North and the Center and the other one in the South of Portugal (Table 2).

* Lameiros -Permanent pastures of natural grassland in the slopes of mountains with runoff irrigation and overflow.

** ferrejos - barley of wheat cutted as green forage.

*** restolho - Crop residue (cereal culture).

In what concerns animal production, those systems considers:

-the use of low capital inputs but with production costs only pottentially competitive;

-the warranty of the product quality and typicity, which are essential characteristics for the intended added value;

-the preference and demand for the product by the consumer;

-the defence of the environmental quality.

The differentiation results from the different edapho-climatic conditions and from the agrarian structure of the land. The weather in Portugal is generally classified as Mediterranic. However, in the North and in the Center were the "manor-house" of five bovine indigenous breeds are located, we can observe an important Atlantic influence, specially near the littoral. On the contrary, in the South (Alentejo) there is a Continental influence. In what concerns to the temperature there are not big differences between the North, the Center and the South. The differences are essentially between the littoral and the interior; in the littoral we have low thermal amplitude and high air humidity; in the interior we have high thermal amplitude and low air humidity. Rainfall is higher in the North; in the South, is lower with a minimum of 400mm in some regions. The occurrence of frost is higher in the North and, in specific areas, occurs during 8 months.

Soils are generally poor presenting big reliefs in the North and mainly plane in the South. The relief in the North and the intensive cereal cropping in the South are factors that contribute to the erosion, which is sometimes very high.

Edapho-climatic conditions have a direct influence in the production and in the quality of the ruminant feed. While in the North and the Center it is possible to produce green forage, in dry land during a significant part of the year, and in "lameiros" during almost all year, in the South the grazing period with high quality grass is very short. During the coldest part of the year, we can see a decrease and sometimes even a cessation of pasture vegetative growth. In the end of the Winter and in the beginning of the Spring, temperatures rise and, as there is a high availability of water in the soil, we have the ideal conditions to the fast vegetative growth, which constitutes the non irrigated pastures (spontaneous or seeded) existing in the South. With the increase of temperature and the decrease of the water in the soil, which characterises the end of the Spring, the vegetative cycle of the plant is completed; this comes along with a rapid increase of the dry matter and a great decrease of the digestibility of the pasture.

Animal feed is based on the use of natural or improved pasture, hay, cereal straw, crop residues and cereal grain; in the North includes also, ferrejos, turnips and the surplus of other cultures like potatoes and fruit and, in the South, acorn. We consider that feed diversity, which characterises our livestock production systems, should be maintained, based in the use of local feed production, once this has sustainability. The complementarity of the natural feed resources should also be maintained, although some of those resources may disappear once they result from cultures difficult to support at the present. In this case we have the crop residues of the cereal culture. Other resources could be maintained or be potencialized like the fruit of oak trees (acorn) and the grass of the agrosilvopastoral systems (south of the country) (Belo Moreira e Seita Coelho, 1997).

Land structure in the North and in the Center has an average size around 3 ha and it is divided in small pieces of land; in the South (Alentejo) is around 300 ha and it is less divided. With this land structure, the numbers of cattle per farm varies between 1.6 to 3.5 animals in the North and in the Center and between 55 to 80 animals in the South (average values). The land structure determines a type of diversified family agriculture, with a great degree of self consumption in the North and in the Center, and a type of entrepreneurship agriculture in the South.

In small farms in the North and Center, farmers do not make the fattening of the cattle. They prefer to sell the animals with 4 to 8 months of age. This way they avoid the feed competition between calves and their mothers and the need of other housing to the new animals; so, by the selling of the young animals they obtain a profit which is indispensable for the maintenance of the family economy. In the South (Alentejo), the farm size allows an extensive livestock production system, which involves the late rearing of the calves, that are sold only at 18 to 24 months (Table 2). In this two types of farm exploitation there is no supplemental feeding (concentrate) of the animals.

The products of our extensive production systems are always limited in terms of beef production. The animal production system is limited to the capability of land to produce feed. Production is not dependent on men's will, but on the feed production availability and potential; those establish the upper limit which determines production and are directly dependent on the edapho-climatic conditions with emphasis on soils and weather conditions.

In these natural and environmentally favourable production systems, has been observed a great tendency to the certification of the product obtained. This certification, in the case of beef cattle, is mainly determined by the use of the indigenous breeds. The registration on the Herd Book allows the identification and the accompanying of all the registered animals, guaranting not only the genuinity of the breed and individual registration, but also the feed conditions, health control and livestock management. In this way we can guarantee a certified product.

3-Portuguese indigenous breeds

A significant part of extensive beef cattle production systems, is based on the use of animals with unique characteristics, different from region to region, with good maternal aptitude, with high rusticity, low growing performance (not very specialised in meat production) and exceptional adaptation to the environment where they live, especially to the local feed, naturally produced.

In Portugal we can find seven breeds perfectly identified which produce meat with Protected Denomination of Origin (PDO): Barrosã, Mirandesa, Maronesa, Arouquesa, Marinhoa, Alentejana e Mertolenga. These breeds are distributed along limited regions in the North, Center and South of Portugal, as we can observe on Figure 1.

Figure 1 - Geographic origin of Portuguese Indigenous Breeds

The total number of adult females registered in the Herd Book (for all the seven breeds) is of 43523 cows varying between a minimum of 4270 in the Mirandesa breed and a maximum of 7430 in the Alentejana breed (Table 3). The average age of the registered animals in the Herd Book (Table 3), varies between 8 and 10 years, with a maximum that reaches the 20 years old for some cows.

The adult female weight reaches the 600-620 kg in Alentejana and Marinhoa breeds, the 500 Kg in the Mirandesa breed and the 350 kg in the other breeds. The fertility varies between 60 and 90% The female birth weight varies between 23 Kg (Barrosã) and 35 Kg (Mirandesa), being the weaning weight between 130 Kg (Mertolenga) and 200 Kg (Marinhoa) (Table 4).

Table 4- Reproductive and Productive Parameters in Portuguese Indigenous Breeds

(a) D.G.P (1987); (b) Rosado et al. (1981); (c) Cláudio et al. (1988); (d) Machado et al. (1981a); (e) Garcia et al. (1981); (f) Machado et al. (1981b); (g) Leitão (1981); (h) Alves et al. (1987); (i) Monteiro et al. (1981); (j) Leitão et al. (1981); (m) Bettencourt e Vaz (1987); (n) Silva Portugal et al. (1973a);( o) Silva Portugal et al. (1973b).

These breeds are used as line mother, in pure breed or crossbreed. We can assume that indigenous breeds are the strategic reserve of the beef cattle production in Portugal. Studies reveal that in less weighted breeds, calves are weaned with high live weight per 100 Kg of mother's weight. Results points to the fact that small females with good fertility rate, enough capacity to produce milk and low maintenance energetic costs, present some advantages to heavier breeds, when managed in extensive production systems, allowing the obtainment of good results which reach the 30 Kg per 100 Kg of mother's weight (Cláudio et al., 1988).

Small cows allows a higher number of animals per ha allowing the obtainment of a higher number of biological units for beef cattle production (Ralo, 1994).

In terms of reproductive management we consider, in the South of Portugal, two calving seasons of concentration: the traditional Summer season (from August until October) and the Winter season (from January to March). In the North and in the Center of Portugal, calving occurs along the year. Parturition Summer season is favourable for the growing of post-weaned calves. Mothers are fed with a low quality feed, and some times it is necessary to feed them with residual cereal cropping, dry pasture with high lignification and low digestibility, and in some cases with acorn from covered pasture. It is a less favourable season in terms of the expression of milk production capacities and consequently for the weaning weight of the calf. Several times it is necessary to feed the cows with straw, hay and, in critical situations, with cereal grain. In the Winter calving season we take advantage from the milk capability of the mother. The cow benefits of a large quantity and quality of feed in the pasture, increasing the milk production and the calves present a better performance of the daily weight gain (Rodrigues, 1998).

In our production systems (North and Center breeds), slaughtering is done immediately after the weaning. In the breeds from the South, steers are slaughtered between 18 and 24 months of age; for the first case (18 months), steers born in Winter, because they reach a heavier weight at weaning as a result from the higher milk consumption. In the first 6 months after weaning, the steers are fed, generally with a low quality feed, directly from the pasture or stored feed. The next 6 months period is the most productive period in the year since it corresponds to the Spring, where there is great grass production with a high digestibility. At the end of this second period, steers are submitted to a finishing phase. In the animals slaughted at 24 months of age, compensatory growth is used. However it presents some disadvantages like, for instance, the possibility of reduction of the calf skeleton grow (Rodrigues, 1998). It presents also an advantage which is the decrease of the feed costs, because the animal ingests the maximum possible quantity of low cost energy (pasture), and the minimum of high cost energy (processed feed).

Directly related with meat production is the subject of the slaughtering age and weight. We can take the maximum profit of the numerical limited productive capacity through the definition of the ideal slaughtering weight. In practice, we find that the definition of slaughtering age and weight, includes not only the biological component but also two other important components : the tradition and the local feed production capacity. In fact we are in the presence of sparse and limited feed resources, where mothers

and sons contend for the space and also for the feed. Local ability to ensure calves growing and fattening, may imply other slaughtering weight, and not the one which is pre-defined as ideal. So the option can be to maintain more cows (mothers) in order of producing more calves with less weight at slaughtering (Vaz Portugal, 1998).

4- Protected Denomination of Origin of Portuguese Indigenous Beef

It is generally accepted, to some animal products, that the floristic composition of vegetal cover may have an effect, at least residual, over the quality of the final product and/or that the genetic basis influences the meat characteristics at the tissue level and chemical composition. Thus, associated with the traditional and equilibrated extensive production systems, as well as the identification of the typical characteristics of the different meat products from indigenous breeds, leads us to the certification of this product.

The aim of protecting agricultural products easily identified in what concerns its geographical origin, led that some EU countries created National Labels which provided to farmers an higher income, rewarding an higher qualitative effort and to the consumers it provided high quality products with guaranted origin and processing. The EEC regulations nº 2081/92 e 2082/92, are the legal basis concerning PDOs. They are the result of deep changes in agricultural policy in which quantitative criteria are replaced by qualitative criteria. The EEC regulation nº 2081/92 defines:

Protected Designation of Origin (PDO), the name of a region, place or exceptionally a country, which is used to designate an agricultural product originary from that region, local or country which quality and characteristics arise essencially or exclusively from geographical provenience, including natural and human factors and which production and processing occur in a geographical restricted area.

The existance of a legal basis to protect agricultural production is crucial to portuguese agriculture, due to its specificities within the European context. Natural environment, old production technologies and the weakness of agricultural entrepreneurship led to the fact that average productivity is lower than in Europe. CAP and the late reform of the Common Market Organization relative to the mediterranean products had negative impact in Portuguese Agriculture, that can not compete through quantity or costs with other competitors. So, differentiation and quality products seems to be the only alternative to stimulate rural activities in Less Favoured Areas and create a regional value added able to promote sustainable development (Pinto de Andrade et al., 1997).

The sucess of this strategy depends upon (Pinto de Andrade et al., 1997):

• Creating quality management systems;
• Financial incentives;
• Setting up an agressive marketing strategy able to give an image of "products with history";
• Setting up global distribution channels in order to reach international markets.

Until this moment, seven PDOs related with the Portuguese indigenous beef breeds are registered in the U.E (Table 5).

Table 5- Protected Designation of Origin for Portuguese Beef Cattle

All these PDOs are already in activity. In the Table 6 we can see the annual price evolution of the PDO meat, as well as the meat of CrossBreed Charolais and Holstein Friesian.

Table 6-Average annual price paid to the producer of PDO meat

(Euro^*/kg Carcass weight).

* - 1 Euro= 200$00 PTE

** - Anuário Pecuário (1997)

As we can see, the PDO meat valorization is different from the North and Center relatively to the PDO meat produced in the South (4.25 to 5.25 Euro vs 3.5 to3.7 Euro/Kg carcass). This situation results mainly from the slaughter age; in the North and Center with the slaughter at 5-7 months, the carcass weight is much lower but its valorization is higher; in the South with slaughters done at 18-24 months carcass weight is higher and the meat valorization is lower. There was no important price variation within the years average (exception to the price of Alentejana meat), neither through the year since PDO was implemented, being a reference to the meat valorization. For the Arouquesa breed, the certification programme was implemented only in 1998 and has lead to an increase of 0.5 Euro/Kg carcass.

Meat from Crossbreed and Holstein Friesian present great annual and monthly fluctuations. To both meats (Crossbreed and Holstein Friesian) there was a decrease in the annual average price paid to the producers (1994-1996) and there was an incresase in the prices since 1997 until October 1998. Those meats have a price differential around 0.2 to 0.25 Euro/Kg carcass which is favourable to CrossBreed Charolais. The comparison between the meat from Crossbreed and PDO meat, show us a price differential (Euro/kg carcass) which varies between 0.3 to 0.5 Euro in the South and between 1.5 to 2 Euro in the North and Center. This means that the PDO meat valorization reaches 62% in some breeds.

The difference between the prices of the indigenous breeds meat is not very high and it is constant through the years, as a guarantee price. The BSE occurences did not affect the demand of the PDO meat by the consumer neither the meat price. At the present, the differential between the price paid to the producer and the market price is not sufficient for the PDO Managing Groups to support the expenses resulting from its activities.

5- Production Structures

The PDO productive sector should be very well organized in each region. There has been a consolidation of PDO meat, resulting in the renforcement of the PDO Managing Groups in the national meat market. The structures involved in PDOs are the Breeders Societys, PDO Managing Groups and Private Organizations for Quality Control.

Those structures are responsible for:

-keep the farmers interested in indigenous breeds;

-the registration of the animals in the Herd Book providing information about the production systems in a way to guarantee the specificity of the product;

-provide technical advisory services;

-to promote the quality of the product near the consumer;

-to guarantee a minimum price to the farmers, for the animals registered in the Herd Book;

-to deal with the reseller the added value of the certified meat;

-to follow the animals to the slaughterhouse in order to certify the product.

The existence of those three types of structures, allow to separate, production, marketing and certification, giving a higher credit to the certificated product. All this tasks demand for human resources and equipment, that are expensive. Those expenses should be covered by the differential obtained from the better price of the certified meat but, in reality, the differential is not sufficient to cover the costs. For that, contributes:

-small number of marketed animals, mainly related with niche markets;

-consumers with a low level of quality demand and with a low capacity of purchasing;

-no evolution in the price of certified meat in the last years;

-low differential between the guaranted price to the producer and the market price.

Those structures must accomplish responsibilities related with production systems, with the accompainment and control of "the way to produce" and the meat marketing. They must be firm in the defence of the characteristics, of the origin, of the way how must be produced and on the guarantee of what they sell. This avoids product adulteration and promotes an increase in the demand. It is essential the awarenness that the meat quality results from the animal genetics, from the environment and from the production system. The level of demanding within those structures is deteminant to the success, and from its capacity of intervention in the meat market, depends the defence and preservation of indigenous breeds.

The activity of those structures and even its survival are dependent from the financial support given by the Portuguese Government and by the EU. Those supports are indispensable in order to maintain and improve the activity of the farmers structures to get products of better quality.

Conclusions

Endogenous resources must be valorized. Thus is only possible if we can produce what others can not, either by absence of biological diversity or by a different genetic potential. For that, indigenous national breeds are a viable alternative in LFAs, contributing to the farm income, to the settlement of population and landscape diversity preservation. The national breeds are a genetic inheritance that has been selected through the years and it is necessary to preserve it. The breeding of those breeds is, as we said, an important factor in the weak farmers economy. Nevertheless in terms of productive levels, they can not compet with imported breeds, and if they are not well protected, they may disappear. For the preservation of these breeds it is necessary to valorize the selling price of the animals in order to reward the farmers due to the low productivity of the extensive systems.

We have a genetic inheritance to defend (indigenous breeds); we have a old rural population and an growing abandonment of the rural areas, and in some cases a great risk of desertification exists, mainly in the interior areas of the country. The valorization of the indigenous breeds can contribute for the fixation of that population and contribute for the interest of young people in the agricultural activities. It is necessary the introduction of improvements in the production systems but we can not surpass the concept of "extensive production system".

It is also necessary to act in the "fase mother" and that can involve a better capability of adaptation, the increase of milking capacity, the decrease of maintenance needs and the feeding behaviour, keeping the rusticity of the indigenous breeds. Only by this way we can guarantee the tipicity of the final product and since it is a limited production they are conditions to revindicate the added value.

It is necessary to support the valorization of the indigenous breeds in order to:

- defend and preserve the genetic inheritage;

- diversify the agricultural activities in order to a better use of the natural resources;

- increase farming income which promotes the fixation of the population in rural areas with low or very low population density;

- promote production systems with low or very low animals/ha, preserving environment;

- to maintain the characteristics of the indigenous breeds and its feeding systems in order to obtain products with guaranted quality, responsible for an added value.

If the structures involved with PDO accomplish its functions, must be financially suported, with direct benefits to his members, to the region and to the community, promoting social equilibrium and contributing to the preservation of genetic diversity, landscape and environment.

We think that, if the work done by the structures involved with PDO in order to certify meat products with a guarante of quality continues, the niche markets will be enlarged to more motivated and exigent consumers.

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