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The Sarami Project an Alternative Approach to Beef Sector Development

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The Sarami Project an Alternative Approach to Beef Sector Development ECONOMIC GROWTH – BEEF & CATTLE VALUE CHAIN THE SARAMI PROJECT AN ALTERNATIVE APPROACH TO BEEF SECTOR DEVELOPMENT ESPIRITU SANTO, VANUATU APRIL 2013 PREPARED BY PROAND ASSOCIATES AUSTRALIA PTY LTD FOR THE AUSAID ENTERPRISE CHALLENGE FUND MANAGED BY COFFEY INTERNATIONAL DEVELOPMENT PTY LTD ENTERPRISE CHALLENGE FUND SARAMI BEEF PROJECT CONTENTS Executive Summary .................................................................................................................................. i 1 Introduction .................................................................................................................................... 1 1.1 Sarami Project ......................................................................................................................... 1 1.2 Assignment .............................................................................................................................. 1 1.3 Deliverables ............................................................................................................................. 1 2 Background ..................................................................................................................................... 2 2.1 Beef Sector Development ....................................................................................................... 2 2.2 Beef Cattle Production ............................................................................................................ 2 2.3 Beef in Vanuatu ....................................................................................................................... 3 2.3.1 Beef Production .................................................................................................................. 3 2.3.2 Beef Trade ........................................................................................................................... 5 2.3.3 Cattle Purchasing ................................................................................................................ 6 2.4 Sarami Beef Project Overview ................................................................................................ 7 3 Sarami Estate Operations ............................................................................................................... 8 3.1 Overview ................................................................................................................................. 8 3.2 Genetic Development ............................................................................................................. 9 3.3 Cattle Purchase & Transport ................................................................................................... 9 3.4 Cattle Handling & Management ........................................................................................... 11 3.5 Pasture Improvement ........................................................................................................... 12 3.5.1 Pastures ............................................................................................................................. 13 3.5.2 Weeds ............................................................................................................................... 13 3.6 Supplementary Feeding - Forage Crop and Silage ................................................................ 14 3.6.1 Forage Crop ....................................................................................................................... 14 3.6.2 Silage ................................................................................................................................. 14 3.6.3 Supplementary Feeding .................................................................................................... 15 3.7 Cattle Purchases for Fattening Program ............................................................................... 16 3.8 Sarami Project Value Add ..................................................................................................... 18 3.9 Live Cattle to Solomon Islands .............................................................................................. 18 4 Smallholder Operations ................................................................................................................ 18 4.1 Overview ............................................................................................................................... 18 4.2 Sarami Project Impact ........................................................................................................... 19 4.3 Future Growth for Smallholders ........................................................................................... 21 5 Commercial Outcomes of the Sarami Project ............................................................................... 22 5.1 Assumptions .......................................................................................................................... 23 5.1.1 Santo Meat Packers .......................................................................................................... 23 5.1.2 Sarami Estate .................................................................................................................... 23 5.1.3 Smallholders ...................................................................................................................... 23 5.2 Analyses ................................................................................................................................ 24 5.2.1 Smallholder Outcomes ...................................................................................................... 24 5.2.2 Sarami Outcomes .............................................................................................................. 24 5.3 Commercial Outcome Conclusion ......................................................................................... 25 6 Expansion and Replicability of the approach ................................................................................ 26 6.1 Pacific Islands ........................................................................................................................ 26 6.2 Vanuatu ................................................................................................................................. 26 6.3 Fiji .......................................................................................................................................... 27 6.3.1 Profile of Fijian Cattle/Beef Sector .................................................................................... 28 6.3.2 Opportunity for Replication in Fiji ..................................................................................... 33 6.4 Papua New Guinea ................................................................................................................ 35 6.4.1 Profile of PNG Cattle/Beef Sector ..................................................................................... 35 6.4.2 Leron Plains Cattle Ranch .................................................................................................. 36 APRIL 2013 Page: ii ENTERPRISE CHALLENGE FUND SARAMI BEEF PROJECT 6.4.3 Price Premiums for Quality Beef Carcases ........................................................................ 37 6.4.4 Opportunity for replication in PNG ................................................................................... 37 6.5 Opportunities for Replication in Other Pacific Islands .......................................................... 37 Annex 1 – Data Tables ........................................................................................................................... 38 Annex 2 – Program Schedule, Meetings Attended and People Met .................................................... 39 Annex 3 – Detailed Benefits from Improved Herd Productivity ........................................................... 41 LIST OF FIGURES Figure 1 –Map of Vanuatu ...................................................................................................................... 6 Figure 2 – Location of Site Visits ............................................................................................................. 7 Figure 3 - Farm Size Distribution ............................................................................................................. 3 Figure 4 - Cattle Population & Beef Production ...................................................................................... 4 Figure 5 - Quarterly Slaughter at Major Abattoirs .................................................................................. 5 Figure 6 - Beef Import & Export Statistics ............................................................................................... 5 Figure 7 - Santo Meat Packers Cattle Purchase Price Schedule .............................................................. 6 Figure 8 - Smallholder Cattle Purchase Mechanism ............................................................................. 10 Figure 9 - Heavy Tractor used to Prepare Land for Improved Pasture ................................................. 13 Figure 10 - Standard Herd Structure Sales Outcomes .......................................................................... 21 Figure 11 - Improved Herd Structure Sales Outcomes ......................................................................... 22 Figure 12 - Sarami Project Business
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