The Improvement of Tropical and Subtropical Rangelands (BOSTID): Part I: The economic context: Market price determination

The Improvement of Tropical and Subtropical Rangelands (BOSTID)

(introduction...)

Acknowledgements

Panel on the improvement of tropical and subtropical rangelands

Contributors

National research council staff

Preface

Overview: Dimensions of a worldwide environmental crisis

The geographical scope

References

Part I

Introduction

(introduction...)

References

The nature of tropical and subtropical rangelands

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Range classification

Social system-ecosystem interactions

References

The social context for rangeland improvement

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Production systems in tropical and subtropical regions

Context of environmental degradation

References

The economic context

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Range systems

The basis of range economics

Project analysis

Determining costs and benefits

Resource evaluation

Market price determination

References

Regional resource assessment

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Information needs

Information acquisition

References

Site evaluation

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An ecosystem perspective

A systems approach to site evaluation

Evaluation of abiotic and biotic components

Integrated evaluations

References

Grazing management

(introduction...)

Grazing management concepts

Time of grazing

Distribution of grazing

Type of animal grazing

Number of animals grazing

Grazing management planning

Grazing management systems

Livestock management

The herima system in Mali

References

Rehabilitation techniques

Establishing plants on the range

Natural revegetation

Direct seeding

Improvement of tropical and subtropical rangelands

Selected practices

References

Criteria for plant selection

Project planning

Socioeconomic and management considerations in feasibility studies

Adaptation to ecoclimatic conditions

Adaptation to soils

Adaptation to physiography, geomorphology, topography, slope, and aspect

Ability of introduced species to compete with native vegetation

Use regimes

Availability of seeds and plant materials

Maintenance of biological diversity

Plant improvement

References

Part II

Introduction to the case studies

Pastoral regimes of Mauritania

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Physical geography

Migration cycle

The Beni Mguild of Morocco

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Physical geography

Migratory cycle

The Kel Tamasheq

(introduction...)

Introduction

Camp organization

References

Dromedary pastoralism in Africa and Arabia

(introduction...)

Introduction

Reproduction and risk

Management and labor

Subsistence production

Marketing

Predatory pastoralism

The future of camel pastoralism

References

The mountain nomads of Iran: Basseri and Bakhtiari

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The physical environment

The basseri

The bakhtiari

The Marri Baluch of Pakistan

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Physical environment

Seasons and migrations

A mixed economic system

Conclusiones

Changing patterns of resource use in the Bedthi-Aghanashini valleys of Karnataka state, India

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Introduction

The setting

Human communities

Traditional patterns of resource management

Colonial period

After independence

Recent trends

References

Kenya: Seeking remedies for desert encroachment

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Introduction

Background

Traditional pastoralism

Baseline studies

Vegetation and livestock

Directions for the future

The hema system in the Arabian peninsula

(introduction...)

Rights of ownership or use

The hema system in Saudi Arabia

The mahmia or marah, and the koze system in Syria

Neglect of the hema and its consequences

Hema in the range improvement and conservation programs in the near east

References

Wildlife land use at the Athi River, Kenya

(introduction...)

Background

Some early findings

Conclusion

Camel husbandry in Kenya: Increasing the productivity of ranchland

(introduction...)

Introduction

Location

Vegetation

Livestock

Introduction of camels

Management and adaptability

Reproduction and lactation

Veterinary notes

Economics

Reference

The potential of faidherbia albida for desertification control and increased productivity in Chad

(introduction...)

Background

Characteristics of faidherbia albida

Project description

Project analysis and evaluation

Conclusions

References

Improving Nigeria's animal feed resources: Pastoralists and scientists cooperate in fodder bank research

Board on science technology for international development

(introduction...)

Members

Market price determination

A number of problems confound the establishment of prices for use in project planning. Obtaining satisfactory price information is usually not a difficult problem in the United States. Merchants, dealers, and farm operators can usually provide satisfactory information on current levels of prices paid and received and wage rates. In developing countries, however, specific price information may be more difficult to obtain, and short-term price fluctuations are likely.

To the extent that markets exist and market price information is available, market prices should be used, but a few caveats must be considered. First, if market prices are generated from a location remote from the project area, then it would be necessary to make adjustments to account for differences from the project area because of transportation costs, any losses due to waste, spoilage, shrinkage, or death loss, and for transaction costs at the marketplace.

If prices tend to fluctuate in a completely irregular or random fashion or in a cyclical fashion, an average price or expected value may have to be used through a series of years.

Prices are one of the crucial assumptions in planning, and the importance of good price forecasting cannot be overemphasized. However, it is possible to become too fearful and exaggerate the consequences of errors. The effects of different prices can be ascertained quite easily by "sensitivity analysis" after the major budgets have been prepared. This may be desirable, both to test the stability of a particular budgeted solution against variations in prices, and also to ascertain the amount of possible loss if the price assumptions are in error. The probability of different occurrences may also be assessed.

In project planning, the determination of prices is a problem if satisfactory market or price reporting systems do not exist. Often the only valid way to place a value on forage is indirectly, by determining its value through the livestock production process. In that case, the costs of producing the forage as an intermediate product could be used. Placing a price on the forage directly is unnecessary.

As mentioned earlier in the chapter, valuation problems are very difficult for the so-called non market or social considerations involved in improvement and rehabilitation practices. For instance, it is very difficult to place values on such things as enhanced erosion or flood control, dune stabilization, or enhanced wildlife production. However, damage mitigation analysis (as used in water resource projects) can be applied. In such a situation, the before analysis would overstate the without analysis and the before-after comparisons would understate the benefits of the proposed project compared with the without-with comparison.

The analyses based on the without-with approach to projections is generally more complicated because it does require projections of two situations. The current before situation can only be taken as a data base or benchmark and guideline information. A before-after type comparison is based on the current situation as one projection and only one projection is required for the relatively unknown after situation.