Abstract

The determinants of cattle ranching expansion in the Eastern Amazon. Consequences for public policies. Cattle ranching is the major source of deforestation in the Brazilian Amazon. It started at the beginning of the XVII century, but only mainly along rivers and in varzeas regions. Then, during the colonization program, which started at the beginning of the 1960s, several incentives favored its expansion. At the end of the 1980s, most of these initial incentives have disappeared but the expansion of cattle ranching has remained tremendous, not only in large landholdings but also in smallholdings. Indeed, in the 1990s, even if traditional production basins (South and Center West) remain dominant in term of livestock population, livestock growth rate were negative for some of them whereas they were positive for the Amazon region. Two main issues are addressed in this paper: Why are large- and small-scale landholders in the Amazon opting for cattle ranching? What do the different responses suggest for policies aimed at promoting sustainable development in the Amazon? The paper is based on some of the results of a research project financed by the American National Science Foundation. Results allow to better rank the main determinants of livestock expansion in the Eastern Brazilian Amazon as drawn from the actors themselves. Amongst them, the existence of markets for livestock products, meat and milk, appears in almost all the informants responses. The efficiency of livestock production and marketing chains is a major advantage when compared with agricultural products. The security of livestock income makes it an important form of saving and a secure destination for others incomes investments. The excellent agro-ecological conditions in the Amazon for forage production, the efficiency of pasture establishment and management, and an easy access to the technology are the others main factors underlying massive investment in cattle ranching in the Amazon. The results suggest that any policy that decrease the risk for activities allowing better income per hectare than cattle ranching may participate to decrease the pressure on forest: subsidies for local agro-processing factories, minimum guaranteed prices and technical assistance focused on the prevention of agricultural yield fluctuations. Specific incentives are necessary for systems compatible with livestock, amongst them silvo-pasture systems, forest reserve sustainable management, or compensation for forest reserves carbon stocks preservation. The tradition and experience in livestock appear also relevant, thus the promotion of any alternative may require long term investment in formation and social valorization of a cattle ranching with less environmental externalities in the Amazon. Environmental certification should be analyzed.

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