ACIAR Project LPS-2009-036 Enhancing smallholder beef production in Timor Leste Report for Markets and Policy component Sub-sector analysis of the Timor Leste Beef Industry1 Scott Waldron (UQ), Vicente de Paulo Correia (UNTL), Marthen Mulik (Uni Nusa Cendana), Adelino de Rego (UNTL), Calisto da Costa Varela (MAFF), Geoff Fordyce (UQ), Eric Thorne-George (project), Neal Dalgliesh (CSIRO), Simon Quigley (UQ), Elske van de Fliert (UQ) 1 The authors would like to acknowledge and thank the Australian Centre for International Agricultural Research (ACIAR) and, in particular Peter Horne and Werner Stur, as managers of the Livestock Production Systems program. Logistical, administrative and intellectual input from the Ministry of Agriculture, Forestry and Fisheries (including Latino Coimbra who participated in fieldwork) and UNTL (including Acacio Amaral) has made this research possible. Fieldwork support was provided by project field researchers in all sites. We would like to thank the farmers, traders, butchers, government officials and development agencies (especially SoL and ILO) that generously provided time, knowledge and data for the report. Thanks are due to Dianne Stephens for the editing and formatting. 1 Contents Tables .................................................................................................................................................. 5 Figures ................................................................................................................................................. 5 List of abbreviations and terms .......................................................................................................... 7 1. Introduction .................................................................................................................................... 8 1.1. Summary ................................................................................................................................. 8 1.2. Objectives of report ................................................................................................................ 9 1.3. Methods .................................................................................................................................. 9 2. The TL beef industry ...................................................................................................................... 11 2.1. The TL livestock sector .......................................................................................................... 11 2.2. Production-side industry statistics ........................................................................................ 12 2.3. The trade sector .................................................................................................................... 15 2.3.1. Beef imports .................................................................................................................. 15 2.3.2. Cattle exports ................................................................................................................ 16 2.4. Bovine meat supply – demand structures ............................................................................ 17 2.5. Beef value chains in TL .......................................................................................................... 19 2.6. The role of cattle in rural development ................................................................................ 22 2.7. Industry development policies .............................................................................................. 24 2.8. Agencies ................................................................................................................................ 27 3. Inputs sector ................................................................................................................................. 30 3.1. Extension system .................................................................................................................. 30 3.2. Animal health ........................................................................................................................ 30 3.3. Feed ....................................................................................................................................... 32 3.4. Breeding ................................................................................................................................ 32 3.5. Finance .................................................................................................................................. 32 4. Production sector .......................................................................................................................... 34 4.1. Agricultural and cattle production systems in Timor Leste .................................................. 34 4.2. Regional differences and “beef zones” ................................................................................. 36 4.2.1. Beef zones ..................................................................................................................... 36 4.2.2. Cattle distribution ......................................................................................................... 41 4.2.3. Scale of production ....................................................................................................... 42 4.2.4. Indicators of commercialisation.................................................................................... 44 4.2.5. Stocking rates ................................................................................................................ 46 4.3. Household production systems ............................................................................................ 47 2 4.4. Role of cattle in household systems ..................................................................................... 50 4.4.1. Cultural considerations in cattle production ................................................................ 51 4.4.2. Place in crop-livestock systems ..................................................................................... 54 4.4.3. Cattle as a source of “savings” ...................................................................................... 54 4.4.4. Commercialisation ........................................................................................................ 55 5. Domestic cattle marketing ............................................................................................................ 56 5.1. Cattle flows ........................................................................................................................... 57 5.2. Animal identification, checkpoints and “control” ................................................................. 59 5.3. Slaughtermen and cattle traders .......................................................................................... 61 5.4. “Over-the-scales” buying by “modern” butcher shops ........................................................ 66 5.5. Catchment and aggregation .................................................................................................. 67 5.6. Cattle markets ....................................................................................................................... 68 5.7. CCT ........................................................................................................................................ 69 5.8. Brief conclusions ................................................................................................................... 70 6. Live cattle trade to Indonesia ....................................................................................................... 71 6.1. The formal trade era ............................................................................................................. 71 6.1.1. Trade volumes ............................................................................................................... 71 6.1.2. Quarantine and customs processes .............................................................................. 72 6.2. Trading points ....................................................................................................................... 74 6.3. Trade flows and conduct ....................................................................................................... 79 6.3.1. Northern border trade .................................................................................................. 79 6.3.2. Southern border trade .................................................................................................. 79 6.3.3. Oecussi trade ................................................................................................................ 80 6.3.4. Aggregate numbers ....................................................................................................... 81 6.3.5. Movement in Indonesia ................................................................................................ 81 6.4. Formalisation of trade into the future .................................................................................. 86 7. Slaughter ....................................................................................................................................... 88 7.1. Slaughter for ceremonies .....................................................................................................