See

discussions, stats, and author profiles for this publication at:

https://www.researchgate.net/publication/229413233

Economic feasibility of cactus

plantations for forage and fodder
production in the Mendoza plains
(Argentina)
Article in Journal of Arid Environments November 1999
DOI: 10.1006/jare.1999.0536

CITATIONS

READS

11

71

3 authors, including:
Juan Carlos Guevara

Oscar Roberto Estevez

Instituto Argentino de Investigaci

National Scientific and Technical

69 PUBLICATIONS 614 CITATIONS

45 PUBLICATIONS 546 CITATIONS

SEE PROFILE

SEE PROFILE

All content following this page was uploaded by Juan Carlos Guevara on 23 September 2015.

The user has requested enhancement of the downloaded file.

Journal of Arid Environments (1999) 43: 241249

Article No. jare.1999.0536
Available online at http://www.idealibrary.com on

Economic feasibility of cactus plantations for

forage and fodder production
in the Mendoza plains (Argentina)

J. C. Guevara*, O. R. Estevez & C. R. Stasi*Facultad de Ciencias Agrarias, Universidad Nacional de Cuvo,

A. Brown 500 (5505) Chacras de Coria, Mendoza, Argentina
- Instituto Argentino de Investigaciones de las Zonas Aridas (IADIZA)
CC 507 (5500) Mendoza, Argentina
(Received 10 July 1998, accepted 11 May 1999)
The economic feasibility of 50200 ha cactus plantations for drought forage
and fodder production was examined by simulation models. Models were run
with 200400 mm annual rainfall and two management systems: cut-and-carry
(CAC) and direct browsing (DB). Cactus production was estimated from rainuse efficiency (RUE) factors: 15 kg dry matter (DM) ha~1 year~1 mm~1
rainfall for 200 mm of rain, 18)8 kg DM ha~1 year~1 mm~1rainfall for
300 mm and 22)5 kg DM ha~1 year~1 mm~1 for 400 mm. The value of the
production was estimated using shadow prices: (1) the cost of energy and
protein derived from those of concentrates; and (2) the price of steer meat on
the hoof. Cactus production was found to be feasible in a direct browsing
system with 300 mm rainfall on a 100 ha plantation and with 400 mm rainfall
on a 50 ha plantation. With 400 mm rainfall, 100200 ha plantations would be
needed if the CAC system were adopted. The profitability calculations did not
take into account the secondary benefits and this resulted in a very large
underestimation of the economic impact of cactus plantations. The size of
cactus plantations necessary to feed 1576 and 2273 Animal Unit Year (AUY)
in a 37,500 ha cowcalf ranch were estimated to be 123 and 111 ha at 300 and
400 mm rainfall, respectively. The establishment cost of these plantations
would increase the ranch investment by 7)4 to 10%, respectively.
( 1999 Academic Press
Keywords: Opuntia ficus-indica; simulation models; cut-and-carry system;
browsing system; rain-use efficiency factor; plantation sizes; establishment
costs; internal rate of return

Introduction
In previous studies (Guevara et al., 1996a, 1997), we estimated the carrying capacity of
the Mendoza plains based on the rain-use efficiency (RUE) factor and on the
dependable annual rains, i.e. having an 80% probability of occurrence. Our previous
work was based only on traditional carrying capacity without the incorporation of
standing buffer reserves, which could be provided by drought-tolerant fodder
shrubs. It is the intent of this paper to provide a complementary economic analysis of
0140-1963/99/110241#09 $30.00/0

( 1999 Academic Press

242

J. C. GUEVARA ET AL.

artificially established drought insurance, via standing buffer reserves based on

water-efficient, artificially established plantations of spineless cacti [Opuntia ficusindica L. f. inermis (Web.) Le HoueH r].
Standing buffer reserves are being used on a large scale in various arid lands of the
world over several million hectares (North Africa, South Africa, NE Brazil, Australia).
The main fodder shrubs used are: spineless cacti, Atriplex spp., Agave americana L. and
a few others (Le HoueH rou, 1994). Ecological conditions and field observations suggest that
these species could be successfully grown in the Mendoza plains (Guevara et al., 1997).
The technical validity of spineless cactus plantations for fodder (i.e. harvested) or
forage (i.e. directly browsed by livestock) has been suggested by Le HoueH rou
(1994, 1996). The economic feasibility of cactus plantations has been assessed for a case
study in Tunisia (De Montgolfier-Koue` vi & Le HoueH rou, 1980; Le HoueH rou, 1989). In
South Africa, Le HoueH rou (1994) determined that the establishment cost of droughttolerant fodder shrubs in 5% of the Karoo area would be 24% of the cost of the South
African government programme drought aid for farmers over the last 10 years.
The purpose of the present study was to assess the economic feasibility of cactus
plantations for feeding livestock in the Mendoza plains.
Methods
The biogeographic features of the Mendoza plains (mean annual rainfall ranges from
200 to 400 mm) have recently been reviewed (Guevara et al., 1996a, 1997).
The economic feasibility of 50, 100 and 200 ha cactus plantations was examined by
simulation models. Models were run with 200, 300 and 400 mm annual rainfall and two
management systems: cut-and-carry (CAC) for pen feeding and direct browsing (DB).
The assessment of the economic feasibility was based on the following scenarios:
(1) Spacing and density strategies: For the CAC system 1]5 m spacing was used for
a density of 2000 shrubs ha~1 (Le HoueH rou, 1994, 1995). For the DB system
a more dense stand of smaller shrubs was used, about 4000 shrubs ha~1 (Le
HoueH rou, 1994).
(2) Planting material availability: The analysis included costs for a cactus nursery
due to the low availability of planting stock. With plant nursery density of 20,000
shrubs ha~1 (1]0)5 m spacing), the nursery sizes were estimated to be 125 and
250 m2 for each hectare of the CAC and DB systems, respectively.
(3) Cactus yield: This analysis assumed yields between 20 and 60 t fresh matter ha~1
year~1 ("39 t DM ha~1 year~1) with 200400 mm rainfall on deep, sandy soil
when the competition from native vegetation and weeds was kept under control
(Le HoueH rou, 1996). Such yields correspond to RUE factors from 15 to 22)5. In
the present study, the following RUE factors were used: 15 kg DM ha~1
year~1 mm~1 rainfall for 200 mm rainfall, 18)75 kg DM ha~1 year~1 mm~1
rainfall for 300 mm and 22)5 kg DM ha~1 year~1 mm~1 rainfall for 400 mm, i.e.
yields of 3000, 5625 and 9000 kg DM ha~1 year~1, respectively.
(4) Cactus utilization schedule: This analysis assumed that the cactus can be first
exploited 46 years after planting and that full production capacity will be
reached 710 years after planting (Le HoueH rou, 1989). As cacti can be productive for many decades with adequate management (Le HoueH rou, 1989) the
utilization was assumed to be indefinite.
(5) Production schedule: Using previous growth data from Tunisia (De Montgolfier-Koue` vi & Le HoueH rou, 1980; Le HoueH rou, 1989), we estimated yields as
a function of age as presented in Table 1.
(6) Nutrient content of the cladodes: We assumed utilization of only the last 3 years
growth because pads of greater age are almost indigestible with no feed value

ECONOMIC FEASIBILITY OF CACTUS PLANTATIONS

243

Table 1. Cactus production regimes with three mean annual rainfalls

Mean annual
rainfall (mm)

200
300
400

Cactus production (kg DM ha~1 year~1)

Year 5

Year 6

Year 7

Year 8

From year 9
onwards

750
938
1125

1500
1875
2250

3000
3750
4500

3000
5625
6750

3000
5625
9000

(Le HoueH rou, 1996). We also assumed mean crude protein and metabolizable
energy values of 35 g kg~1 DM and 9)0 MJ kg~1 DM, respectively. This was
based on the ranges crude protein contents of 3040 g kg~1 DM and energy
values of 8)49)6 MJ ME kg~1 DM for 1 to 3 year old pads (Le HoueH rou, 1996).
(7) Cactus daily ration for cattle: When cactus pads (fresh material) are used as the
sole feed for emergency survival rations, the daily consumption should not
exceed 10% of animal live weight. When fed as an exclusive diet, cacti cause
diarrhoea after about 6 weeks, but this can be easily prevented and cured by
adding the equivalent of approximately 1% of the animal live weight in dry
roughage (straw, hay, browse, grazing) (Le HoueH rou, 1996).
(8) Opportunity cost of prohibited grazing: Implicit in the establishment of the
plantation is that traditional grazing is not possible in the period prior to
utilization (years 14) in both management systems. In addition, traditional
grazing is also not possible after year 5 if the CAC system is adopted (De
Montgolfier-Koue` vi & Le HoueH rou, 1980). The range forage production (herbaceous and woody vegetation) (Guevara et al., 1996a, 1997), metabolizable
energy (ME) and crude protein (CP) (Guevara et al., 1992; Van den Bosch et al.,
1997) forgone by livestock during establishment of the cactus plantation are
shown in Table 2.
(9) Cactus and range forage monetary values: Two approaches were used to assign
monetary values to the cactus feed and the range forage forgone by livestock. In
the first approach, the shadow prices were calculated as suggested by De
Montgolfier-Koue` vi & Le HoueH rou (1980) using the regional prices of ME and
CP in concentrates in the period 19901996 (in February 1997 currency)
(Table 3). In the second approach, we assumed the shadow price to be the price
of steer meat on the hoof at the producers level, i.e. U.S.$ 0)85 kg~1 (mean of the
period 19901996, in February 1997 currency). This latter approach also assumed a conversion rate of 115)4 MJ of ME and 1 kg of digestible crude protein
per km of liveweight gain (Le HoueH rou, 1989).
Table 2. Range forage production forgone by livestock during establishment of the
cactus plantations

Mean annual
rainfall (mm)

200
300
400

Annual forage production

kg DM ha~1

Crude protein
(kg ha~1)

Metabolizable energy
(MJ ha~1)

138
207
276

12
18
24

1114
1670
2227

J. C. GUEVARA ET AL.

244

Table 3. Mean price and nutrient content of concentrates

Feed
Low protein content
Corn grain
Sorghum grain
Average
High protein content
Soybean meal
Sunflower meal
Alfalfa hay
Wheat shorts
Average

Price
(U.S.$ kg~1)

ME
(MJ kg~1)

CP
(g kg~1)

0)17
0)14
0)16

13)4
13)0
13)2

95
100
97)5

0)28
0)16
0)18
0)10
0)18

13)2
8)4
9)2
10)9
10)4

453
320
170
160
275)8

ME and CP values were provided by Estudio Ledesma Arocena y Asociados, except for soybean meal CP
which was provided by F.M. Tacchini.

(10) Establishment and operating costs: Information obtained during the establishment and monitoring of experimental cactus plantations in the Mendoza plains
was used to estimate these costs. Establishment costs: In the CAC system the
establishment costs included machinery, equipment and tools, while in the DB
system costs included portable electric fencing and tools. The plantation costs
included soil preparation and production, cutting, transport and planting of the
cladodes. The maintenance cost for 3 years after planting included three light
diskings per year for weed control, patrolling, insecticides for ant control and the
opportunity cost of prohibited grazing. The installation cost of a metal fence for
protection against lagomorphs was assumed to be U.S.$ 2)34 m~1. Operating
costs: The costs after the first 5 years of establishment when the cacti were actually
being utilized were assumed to include patrolling and insecticide (DB and CAC
systems). In the CAC system plots, costs also included three plowings per year
and the opportunity cost of prohibited grazing. The cost to cut and transport the
cladodes in the CAC system was estimated to be U.S.$ 46)1 per ha plus U.S.$ 8)3
per t of DM. In the DB system the cost of herd control was assumed to be U.S.$
45)5, 22)8 and 11)4 per ha for the 50, 100 and 200 ha plantations, respectively.
(11) The capital opportunity cost in Argentina was assumed to be 12%.
(12) The period of analysis for computing the internal rate of return (IRR) was
20 years.
Results and discussion
The production value of both range forage and cacti was higher if the shadow prices of
ME and CP in concentrates were adopted (Table 4). If a least-cost ration analysis were
used, the value of cactus production was computed to be U.S.$ 90 per t DM, rather
similar to that estimated using the regional price of energy and protein as the shadow price.
The establishment cost of cactus plantation (mean value for the three rainfall scenarios) depended upon the management system and the plantation size envisaged
(Table 5). Shadow prices accounted for differences of only 2)54)3% if the
same management system and the same plantation size were taken into account. The
mean cost of establishing a fodder-cactus plantation was about U.S.$ 1135 ha~1, i.e.
42% higher than the value reported by Le HoueH rou (1996) for Tunisia. The investment
in machinery and equipment included in our study accounted for that difference.

ECONOMIC FEASIBILITY OF CACTUS PLANTATIONS

245

Table 4. Monetary value of cactus and range forage production (U.S.$ per t DM)
as a function of shadow prices

Shadow price
Energy and protein in
concentrates
Steer meat

Range forage

Cactus

102)2

95)4

59)4

66)3

The cost per ha in the DB system was similar among plantation sizes. The use of
rented machinery and equipment was responsible for this result. In the CAC system, the
establishment cost decreased as the plantation size increased, due to the lower costs per
ha of the machinery, equipment and metal fence (Table 6).
The management system is important in the economic feasibility of cactus production
(Fig. 1). If an annual production of 5625 kg DM ha~1 was assumed, the IRR direct
browsing/zero grazing ratio was about 1)9 (mean of the two shadow prices and the three
plantation sizes). This ratio was similar to that for cactus plantations in Tunisia
(Le HoueH rou, 1989) with an annual yield of 6000 kg DM.
The threshold of 12% IRR was reached in the CAC system at 5625 kg DM ha~1
year~1 using the shadow price of energy and protein, or at 9000 kg DM ha~1 year~1
using the shadow price of meat (for 100 ha plantation in both cases). If the DB system
was adopted, the same threshold was attained at 5625 kg DM ha~1 year~1 using a 100
ha plantation and the shadow price of meat.
Our economic analysis did not take into account the external or secondary benefits
such as runoff and erosion control, climate buffering, increased land fertility,
landscaping and amenities, stabilization of animal production or reduction of the
amount of water drunk by livestock (Le HoueH rou, 1994, 1996). Preliminary estimations
of some of these benefits indicate the following.
Degradation of vegetation: According to the procedure suggested by SuaH rez (1990),
and based on information from Guevara et al. (1997), the present value of vegetation
was estimated to be U.S.$ 453 ha~1. Using annual degradation rates of 5% (Guevara
et al., 1997) or 1% (Morello & Marchetti, 1995), the vegetation degradation cost in the
Mendoza plain (10 million ha) would be in the range of 0)6 to 3)2% of the Mendoza
Gross Product (U.S.$ 7051 million in 1994).
Stabilization of animal production and cattle herd: Based on results by Guevara et al.
(1981, 1996b), the stabilization of animal production by cactus plantations would
represent an additional benefit of about U.S.$ 63 ha~1 of cactus plantation and U.S.$
189 ha~1 of cactus plantation at 200 and 400 mm rainfall, respectively. These values
correspond to about 22 and 32% of cactus in full production when the shadow prices of
energy-protein and meat, are used respectively. An additional benefit of cactus plantations is the avoidance of the cost of cattle herd reconstitution after drought destocking
that was valued as 1012% of herd value (Guevara et al., 1981, 1996b).
Without the incorporation of cactus plantations, the cowcalf operation size necessary
to yield positive returns in the Mendoza plains was estimated to be 37,500 ha (Guevara
et al., 1996b). This surprisingly high ranch size is a consequence of: (1) The high level of
risk involved with range livestock production. The producer must balance productivity,
stability and sustainability. If a production system offers high average profits (high
productivity) but a great deal of year-to-year profit variation (low stability), or risks the
long-term productivity of the range (low sustainability), it may be less desirable than
a system with somewhat lower productivity but greater stability and sustainability
(Hart, 1991). Therefore, the carrying capacity of the Mendoza plain (33)5 ha AU~1 for
200 mm rainfall and 16)5 ha AU~1 for 400 mm) was estimated from the annual

1451
1045
0)73
0)26

0)74
0)27

50 ha
Approach 2s

1487
1081

Approach 1*

* Shadow price of energy and protein in concentrates.

- Shadow price of steer meat.

Cost per hectare

Cut-and-carry
Direct browsing
Cost per shrub
Cut-and-carry
Direct browsing

Cost and
management
scenario

0)54
0)26

1089
1034

Approach 1

0)53
0)25

1053
998

100 ha
Appraoch 2

Plantation sizes and shadow prices

0)44
0)25

882
1002

0)42
0)24

846
966

200 ha
Approach 1
Approach 2

Table 5. Mean establishment cost of cactus plantations (U.S.$ February 1997 currency)

246
J. C. GUEVARA ET AL.

ECONOMIC FEASIBILITY OF CACTUS PLANTATIONS

247

Table 6. Establishment cost composition (%) for management systems and

plantation sizes

Cost
Machinery, equipment and tools
Plantation
Maintenance
Opportunity cost of
prohibited grazing
Metal fence

50 ha
CAC* DBs

100 ha
CAC
DB

200 ha
CAC
DB

48)8
17)6
20)0
4)5

1)7
55)4
24)0
6)3

33)5
24)1
27)3
6)2

1)0
57)9
25)1
6)6

20)7
29)9
33)9
7)7

0)7
59)8
25)9
6)8

9)1

12)6

8)9

9)3

7)8

6)8

* Cut-and-carry system.
- Direct browsing system.

dependable rains (f 0)8) and the rain-use efficiency factor. Our analyses also
assumed than only one-third of the total usable forage can be consumed by grazing
animals under proper stocking (Guevara et al., 1996a). Lower cowcalf operation sizes
(c. 18,800 and 9400 ha) could yield positive returns if the stocking rate were higher than
the carrying capacity, but the stability and sustainability of these models were lower.
(2) The present cowcalf operation is not an intensified system (i.e. early weaning,
among other management practices, in not applied), that is, there is no integration with
cowsteer husbandry under irrigation farming. (3) The meat price assumed in this

Figure 1. Internal rates of return of cactus plantations in the Mendoza plains: (a) cut-and-carry
system; (b) direct browsing system; (x)"shadow price of energy and protein; (j)"shadow
price of meat.

J. C. GUEVARA ET AL.

248

Table 7. Cactus plantation sizes necessary for feeding cattle for the entire year in
a 37,500 ha cowcalf ranch

Mean annual rainfall

(mm)

Feed reserve
(animals
ha~1 year~1)

Total AUY in
the ranch*

300
400

12)8
20)5

1576
2273

Cactus plantation
ha
% ranch
123
111

0)33
0)30

*Estimated based on the following carrying capacity values: 23)8 and 16)5 ha AU~1 for 300 and 400 mm,
respectively (Guevara et al., 1996a).

analysis, representative of the 19861995 period is lower than the European Union and
the countries that maintain intensive foot-and-mouth control programmes.
If a 3-year cactus production accumulation and a daily consumption of 36 kg fresh
material per animal unit (AU"one 400-kg live weight cow and calf, or the equivalent)
were assumed, the cactus plantations necessary to feed all the cattle in the 37,500 ha
cowcalf model for the entire year would be about 0)3% of the ranch size (Table 7). The
cactus plantation would increase the ranch investment by 7)4 to 10% (Guevara et al.,
1996b) at 400 and 300 mm annual rainfall, respectively. Since cacti are nutritionally
imbalanced, a cactus-based diet to cover both maintenance and production requirements should include complementary protein, minerals and fibre (Felker, 1995;
Le HoueH rou, 1996).
In conclusion, our results have demonstrated that cactus production is feasible: (1) in
direct browsing systems with 300 mm rainfall on a 100 ha plantation and with 400 mm
on a 50 ha plantation; and (2) in the cut-and-carry system with 100200 ha plantations
at 400 mm rainfall.
Funds for research were provided by the SecretarmH a de Ciencia y TeH cnica of the Universidad
Nacional de Cuyo. The authors thank F. M. Tacchini for providing information on nutrient
content of concentrates and helping in the least-cost ration analysis. Special thanks to Silvina
L. Pereyra and Dr Peter Felker for suggestions that improved an earlier draft of the manuscript.

References
De Montgolfier-Koue` vi, C. & Le HoueH rou, H.N. (1980). Study on the economic viability of
browse plantations in Africa. In: Le HoueH rou, H.N. (Ed.), Browse in Africa. The current state of
knowledge, pp. 449464. Addis Ababa, Ethiopia: International Livestock Centre for Africa.
491 pp.
Felker, P. (1995). Forage and fodder production and utilization. In: Barbera, G., Inglese, P.
& Pimienta-Barrios, E. (Eds), Agro-ecology, cultivation and uses of cactus pear, pp. 144}154.
Rome, Italy: FAO. 216 pp.
Guevara, J.C., Paez, J.A., Tanquilevich, R.F. & Estevez, O.R. (1981). EconommH a de las
explotaciones ganaderas, I. Tierras privadas del aH rea centro este de la provincia de Mendoza.
Cuademo TeH cnico, 4: 139.
Guevara, J.C., Estevez, O.R., Silva, J.H. & Marchi, A. (1992). Adequacy of native range grasses
to meet protein and energy beef cow requirements in the plain of Mendoza, Argentina. In:
Gaston, A., Kernick, M. & Le HoueH rou, H.N. (Eds), Proceedings of the Fourth International
Rangeland Congress, pp. 696699. Montpellier, France: CIRAD (SCIST). 1279 pp.
Guevara, J.C., Estevez, O.R. & Torres, E.R. (1996a). Utilization of the rain-use efficiency
factor for determining potential cattle production in the Mendoza plain, Argentina. Journal of
Arid Environments, 33: 347353.

ECONOMIC FEASIBILITY OF CACTUS PLANTATIONS

249

Guevara, J.C., Estevez, O.R. & Stasi, C.R. (1996b). CrmH a de bovinos. Rentabilidad potencial en la
llanura mendocina. Revista de la Facultad de Ciencias Agrarias, 28: 51}62.
Guevara, J.C., Cavagnaro, J.B., Estevez, O.R., Le HoueH rou, H.N. & Stasi, C.R. (1997). Productivity, management and development problems in the arid rangelands of the central Mendoza
plains. Journal of Arid Environments, 35: 575600.
Hart, R.H. (1991). Managing range cattle for risk the STEERISK spreadsheet. Journal of Range
Management, 44: 227231.
Le HoueH rou, H. N. (1989). An assessment of the economic feasibility of fodder shrubs plantation
(with particular reference to Africa). In: McKell, C.M. (Ed.), The biology and utilization of
shrubs, pp. 603630. New York: Academic Press. 656 pp.
Le HoueH rou, H.N. (1994). Drought-tolerant and water-efficient fodder shrubs (DTFS), their
role as a drought insurance in the agricultural development of arid and semi-arid zones in
Southern Africa. Pretoria, South Africa: Report to the Water Research Commission of
South Africa. 139 pp.
Le HoueH rou, H.N. (1995). Informe de las visitas a la Argentina: Octubre-Noviembre 1992
y Setiembre-Noviembre 1995. Mendoza: IADIZA. 26 pp.
Le HoueH rou, H.N. (1996). The role of cacti (Opuntia spp.) in erosion control, land reclamation,
rehabilitation and agricultural development in the Mediterranean Basin. Journal of Arid Environments, 33: 135159.
Morello, J. & Marchetti, B. (1995). Fuerzas socioeconoH micas condicionantes de cuatro procesos de
degradacioH n ambiental en Argentina. ErosioH n del suelo, deforestacioH n, peH rdida de biodiversidad
y contaminacioH n hidrica. Santiago, Chile: CEPAL. 166 pp.
SuaH rez, C. (1990). Las cuentas del patrimonio natural en Argentina. Santiago, Chile: CEPAL.
109 pp.
Van den Bosch, S., Guevara, J.C., Tacchini, F.M. & Estevez, O.R. (1997). Nutrient content of
browse species in the arid rangelands of the Mendoza plain, Argentina. Journal of Arid
Environments, 37: 285298.

View publication stats