A GEOWAPHM MNLYSS 0F M 7
BEEF CATTLE UNDHSTRY 'GF'HOHDURAS

DiSsertation for the 53813901? FEB. _   _

”WW STATE wvmsm V
f 1973

_______

   
 
 

LIBR/llt Y
Michigan State ;

University JJ

This is to certify that the

thesis entitled

A GEOGRAPHIC ANALYSIS OF THE
BEEF CATTLE INDUSTRY OF HONDURAS

presented by

Ralph H. Alderman

has been accepted towards fulfillment
of the requirements for

Ph.D. Geography

 

 

degree in

 

W

Major professor

Date August 5, 1973

 

0-7639 I i

 

 

 

 

 

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ABSTRACT

A GEOGRAPHIC ANALYSIS OF THE
BEEF CATTLE INDUSTRY OF HONDURAS

BY

Ralph H. Alderman

This study Views the changing beef cattle industry
of Honduras from a geographic point of view. It is
concerned with the basic problems of the past and present
and how these problems are being handled within the context
of recent governmental objectives to rapidly increase beef
production. The study focuses upon four major spatial
aspects of the beef cattle industry and how these aspects
have changed since the initiation of frozen beef exports
to the United States in the late 1950's. The major cattle
regions are delimited according to their respective
production, transportation, processing and marketing
components. The conclusions formulated are designed to
assist in regional planning efforts in Honduras.

The study is divided into four basic parts. The
first part considers the historical and physical patterns

of the cattle industry. The second focuses on the spatial

Ralph H. Alderman

Information from 531 ranch interviews, field
observations, and detailed, unpublished agricultural census
data have been used to examine the spatial variation of
cattle production, transportation, processing and marketing.
It was found that the north coastal region is dominant in
all categories examined.

From a series of map overlays, four major cattle
regions and nine subregions have been defined. The criteria
employed include (1) the general size and nature of the
operations, (2) local physical conditions, (3) general
management characteristics, (4) market orientation, and (5)
access to transportation.

The purpose of this study is to explain the growth of
the cattle industry on the north coast of Honduras. It was
hypothesized that the recent emphasis upon the export of
refrigerated beef from Honduras has led to the concentration
of beef production on the north coast and that this concen-
tration will become more intensified as compared with other
producing regions of the country. It was also believed
that the physical and economic advantages of the area have
been primarily responsible for this growth. It was found
that the north coast cattle producing area was created by
a unique set of physical, historical, economic and cultural

circumstances which have led to the development of the

 

i
\
s

Ralph H. Alderman
entire area and that the historical-cultural factors have
played a more significant role than previously hypothesized.
This is due to the (1) early settlement and development of
the area by the Spaniards, (2) renewed economic growth of
the area dominated by the banana companies, (3) importation
of improved cattle by these companies, and (4) migration
of many well-educated professional people to the area.

These factors, in addition to physical and economic assets
have led to the regional preeminence of the north coast.

The basic problems of the industry were studied, and
eight general recommendations were formulated. It is
suggested that planners: (1) consider the historical
relationship between crop and livestock production, (2)
choose areas which have both suitable year—round pasture
and access to markets, (3) emphasize improved management
practices, (4) diversify the domestic and export markets
for beef, (5) open isolated production zones to the markets,
(6) develop by-product industries, (7) organize an effective
cattlemen's association, and (8) continue to intensify
production in the Northwest Valleys while developing an

extensive area in the Northern Highlands.

A GEOGRAPHIC ANALYSIS OF THE
BEEF CATTLE INDUSTRY OF HONDURAS

BY

Ralph HfifAlderman

A DISSERTATION

Submitted.to
Michigan State University
in partial fulfillment of the requirements
for the degree of

DOCTOR OF PHILOSOPHY
Department of Geography

1973

 

 

 

Copyright by
RALPH HEATH ALDERMAN
1973

 

'. - . , DEDICATION

 

This study is dedicated to the late
Augustus S. Alderman, my father, who died
just prior to the completion of my graduate

education--an endeavor he proudly encouraged

 

from its inception.

 

ACKNOWLEDGEMENTS

Many individuals assisted in this study and deserve
special recognition. The study would not have been
possible without the able guidance and encouragement of
Dr. Clarence W. Minkel, Chairman of the Guidance Committee.
His diligence and support have led this study to its
conclusion. Dr. Robert N. Thomas, also a member of the
Guidance Committee, contributed numerous helpful sugges-
tions, documents and maps.

I am indebted to many individuals in Honduras. Ing.
Mario Nufio Gamero, director of the Agricultural Division
of the Banco de Fomento, generously provided suggestions,
contacts, unpublished information, and personally-conducted
field trips. Arq. Mario Martin, former director of the
Direccion General de Obras Pfiblicas, and Ing. Roberto Moncado,
former director of the Instituto Geografico Nacional,
deserve special thanks for their efforts in alleviating
logistic problems. Mr. Carroll Deyoe and Mr. Richard Graham
of the United States Agency for International DevelOpment
contributed significant meat export data. The United Fruit

Company, Mr. Harvey Johnson (its former manager in Honduras),

iii

and its many employees provided the daily amenities of
life, in addition to information necessary for completion
of the research. Appreciation is also extended to all the
ranchers and others who supplied pertinent information.

The Paul C. Morrison Latin American Research Fund
and the Latin American Studies Center at Michigan State
University awarded financial support for this effort.

Dr. Tamara Brunnschweiler, the University's Latin

American Bibliographer, merits recognition for her library
assistance. The late Dr. Charles C. Cumblerland offered
innumerable suggestions during the initial phases of the
study.

Many persons at the University of Miami have aided
completion of the study. Dr. Harm J. deBlij, Chairman of
the Department of Geography, offered patient guidance and
financial support for the preliminary drafts. Mr. Kahart
Pinder, Mr. Randall Willich, and Mr. Dennis Inboden drafted
the maps, and Miss Joy Love typed the final manuscript.

Special appreciation is expressed to my lovely wife
Kathleen, who actively participated in typing, cartography,
field work and financing of this study. Without her
diligence, endurance and encouragement this study would not

have become a reality.

iv

 

III:

TABLE OF CONTENTS

Page
DE DI CATI ON . O O O 0 O I O O O O O O O O O O O O O i i
ACWOWIIE DGEDENTS O O O O O O O 0 O O O O O O O O O i i 1

LIST OF TABLES . . . . . . . . . . . . . . . . . . Viii

LIST OF FIGURES . . . . . . . . . . . . . . . . . . ix
Chapter

I. INTRODUCTION . . . . . . . . . . . . . . . . 1

Beef in the World and Regional Economy . 2

The Cattle Industry of Honduras . . . . . 8

The Problem . . . . . . . . . . . . . . . 13

Related Literature . . . . . . . . . . . 15

Objectives . . . . . . . . . . . . . . . 18

Procedures . . . . . . . . . . . . . . . 19

II. THE HISTORICAL DEVELOPMENT OF CATTLE

RAISING IN HONDURAS . . . . . . . . . . . . . 22
The Colonial Cattle Industry . . . . . . 24
The Post-Independence Period . . . . . . 32
. The Twentieth Century Cattle Industry . . 36
The Era of Meat Exports . . . . . . . . . 39
III. PHYSICAL ASPECTS OF THE CATTLE INDUSTRY . . . 48
TOpography . . . . . . . . . . . . . . . 48
v

_-..I.JI_||]..- —_——

TABLE OF CONTENTS (Continued)

Chapter
Soils . . . . . . . . . . . . . . . . .
Climate . . . . . . . . . . . . . . . .
Vegetation . . . . . . . . . . . . . .
Summary . . . . . . . . . . . . . . . .
IV. SPATIAL ASPECTS OF BEEF PRODUCTION . . . .

V.

VI.

VII.

Relative Importance of Beef Cattle . .
Location of Production . . . . . . . .
Scale of Operation . . . . . . . . . .
Land Tenure . . . . . . . . . . . . . .
Conclusions . . . . . . . . . . . . . .
RANCH MANAGEMENT . . . . . . . . . . . . .
Management and Efficiency of Production
Cattle Breeding . . . . . . . . . . . .
Cattle Feeding . . . . . . . . . . . .
Modern Versus Traditional Ranchers . .
TRANSPORTATION, PROCESSING AND MARKETING .
Transportation and Marketing of Cattle
Meat Processing . . . . . . . . . . . .
Transportation and Marketing of Meat .

REGIONALIZATION OF THE BEEF CATTLE INDUSTRY

Physical Criteria . . . . . . . . . . .

vi

Page

51
55
62
63
65
66
68
80
87
94
95
97
101
107
110
112
115
131
136
141

142

TABLE OF CONTENTS

Chapter
Economic Criteria . . .
Technological Criteria
VIII. PROBLEMS AND PROSPECTS . .
Transportation . . . .
Financing . . . . . . .

Price Structure . . . .

(Continued)

Agricultural Extension Services . .

Central Organization and Planning .

Marketing Structure . .
Land Use Planning . . .
IX. SUMMARY AND CONCLUSIONS . .
Summary . . . . . . . .
Conclusions - . . . . .
Recommendations . . . .

BIBLIOGWIIY O O O O O O O O 0

vii

148

155

156

158

161

162

166

168

171

176

176

182

187

189

Table

LIST OF TABLES

Farming Units and Agricultural Land in
Honduras: Percentage Change Between
1952 and 1965 O O O O O O O O O O O O O O 0

Honduras: Ranch Size, Ranches and Cattle
Population, 1965 . . . . . . . . . . . . .

Production of Beef Cattle, Rates of
Increase and Slaughter in Central America
and Panalna' 1950-1963 0 o o o o o o o o o o

Cattle Prices at Five Honduran Export
Plants, 1970 O I O O O O O O O O O O C O 0

Modern and Traditional Livestock Techniques
in Four Major Regions of Honduras . . . . .

viii

67

81

100

125

153

LIST OF FIGURES

Location . . . . . . . . . . . . . .
Valleys and Lowlands . . . . . . . .
Departments . . . . . . . . . . . .
Colonial Settlement and Exploration.

Early Cattle Marketing Routes . . .

Central America: Meat Export Facilities . . .

Soils Parent Material . . . . . . .
Recommended Pasture Land . . . . . .
Average Precipitation, August .

Average Precipitation, March . . . .
Average Annual Precipitation . . . .
Average Daily Temperature . . . -.°
Cattle Population, 1952 . . . . . .
Cattle Population, 1965 . . . . . .

Percentage Change in Cattle

Population, 1952-1965 e o o o o o o o o o o o 0

Number of Pure and Mixed-Breed

cattle ' 1965 O O O O O O O O O O O O O O O O 0

Figure
1 Honduras:
2 Honduras:
3 Honduras:
4 Honduras:
5 Honduras:
6
7 Honduras:
8 Honduras:
9 Honduras:
10 Honduras:
11 Honduras:
12 Honduras:
13 Honduras:
14 Honduras:
15 Honduras:
16 Honduras:
17 Honduras:
Pasture,
18 Honduras:
19 Honduras:

Percentage Change in Area of

1952-1965 0 o o o o o o o o o o o o 0

Mean Area of Cultivated Pasture . .
Mean Area of Natural Pasture . . . .

ix

10

14

26

37

42

52

54

57

58

60

61

70

71

72

74

75

76

77

 

 

 

LIST OF FIGURES (Continued)

Cattle-Pasture Ratio, 1952

Cattle-Pasture Ratio,

Ranch Sample .

Mean Ranch Size

Mean Number of Head

Mean Area Under Permanent

Mean Area of Privately-Owned

Mean Area of Communally-Owned

Mean Area of Nationally-Owned

1965

Transportation Network .

Slaughter Facilities .

Cattle Marketing Regions .

Major Cattle Production Zones

Major Cattle Regions . . . . .

A Comparison of Size and Method
of Operation on 531 Ranches .

Management of the Regions

Figure
20 Honduras:
21 Honduras:
22 Honduras:
23 Honduras:
24 Honduras:
25 Honduras:
Cultivation . .
26 Honduras:
Land . .
27 Honduras:
Land . .
28 Honduras:
Land . .
29 Honduras:
30 Honduras:
31 Honduras:
32 Honduras:
33 Honduras:
34 Honduras:
35 Honduras:
36 Honduras:‘

Extension

'Sites

Agricultural Colonization and

78

79

82

85

86

88

9O

92

93

117

120

130

144

146

150

151

164

CHAPTER I

INTRODUCTION

Agricultural diversification has recently become of
vital concern to developing nations throughout the world.
The traditional reliance upon one commercial export item
has produced economic repercussions which have frustrated
attempts to achieve an orderly process of modernization.
Thus, in the past two decades many nations have begun to
diversify their agricultural sectors in order to increase
export earnings and to reduce the effects of price fluc-
tuations in the foreign markets. A basic element of this
program, in many areas, is an expansion and improvement in
the livestock industry.

Livestock has traditionally been raised for meat,
milk, hides and tallow, or as a source of power or symbol
of wealth. The particular combination of these functions,
of course, has varied widely through time and space. As
nations begin to utilize the livestock sector to increase
export revenues, however, meat production becomes paramount.

Meat is a basic segment of the world's agricultural

economy. It is exceeded in value of output only by cereals.

However, approximately one-third of the world's cereal

production is used as animal feed.1

The largest share

of the world's meat is produced in the middle latitude
countries having abundant grass and grain resources.
Although most meat is consumed domestically, the remainder
provides an important source of revenue for the exporting
countries. In 1969 the world's total production was about
157 billion pounds. Six percent was exported and generated
approximately $3 billion in foreign exchange or more than
12 percent of the total value of the world's agricultural

exports.2

Beef in the World and Regional Economy

 

Bovine animals are the most significant contributors
to the world's meat economy. Cattle are responsible for
one-half of all the meat produced, consumed or traded.
Beef accounts for around 50 percent of the world's meat
production, while pork, poultry and mutton contribute

roughly 30, 15 and 5 percent respectively. Although the

 

1United Nations, Food and Agriculture Organization,
The World Meat Economy, Commodity Bulletin Series No. 40
(Rome, 1965), p. 1.

 

2 O 0 I
United Nations, Food and Agriculture Organization,

Commodity Review and Outlooky'l970 (Rome, 1970), pp. 5-6,
36-38.

 

world cattle and sheep populations each contain approximately
one billion head, the volume of beef production is at least
six times that of mutton, and its export value per unit
almost double.3

Latin America and Oceania have traditionally been the
world's leading beef exporting regions, while western
Europe and, more recently, the United States have been the
major importers. In 1969 Argentina, Australia, New Zealand
and Uruguay shipped more than half of the 6.1 billion pounds
of beef and veal in world trade, and Western Europe and the
United States imported almost 90 percent of the total.4
A growing demand for beef during the past decade has caused
world beef exports to double in volume and to increase as a

percentage of total beef production.5 Live bovine export

 

3United States, Department of Agriculture, Foreign
Agricultural Service, World Agricultural Production and
Trade Statistical Report (Washington, D. C., May, 1969),
pp. 1-13; United Nations, Food and Agriculture Organization,
The State of Food and Agriculture, 1970 (Rome, 1970), p. 199.

 

 

 

United States, Department of Agriculture, Foreign
Agricultural Service, Foreign Agriculture CircularygLive-
stock and Meat (Washington, D.C., December, 1970), p. 10.

 

 

5Beef production refers to the total Carcass Weight
Equivalent (C.W.E.) of beef and veal resulting from the
slaughter of both-homegrown and imported cattle and calves,
excluding animal fats and offals; United States Department
of Agriculture, Foreign Agricultural Service, World Beef
Trends, Miscellaneous Publication No. 173 (Washington, D.C.,
June, 1966), p. 6: Ibid.

 

 

WA“ _.-_an.'—’.—.-_--. - _‘__-. . _

has increased overall, but in the major beef exporting
nations there has been a substantial decrease.6

Beef consumption on a per capita basis by country
during the 1960's generally increased or remained unchanged.
The international patterns of beef consumption reflect basic
supply and demand relationships, as beef consumption is
closely related to product availability, consumer population
size, consumer income, comparative price, and local customs
and traditions.

The world's leading per capita consumers of beef are
also the major beef-trading nations. The major exporting
nations are able to maintain high levels of beef consumption
(i.e., Argentina, 169-189 pounds; Uruguay, 143-180 pounds;
New Zealand, 106-111 pounds; Australia, 86-96 pounds) for
they have the advantage of abundant supplies, relatively
small consumer populations, and lower prices for their
low-income beef-eating populations.7 Meanwhile, the major
importing nations have large beef-eating, higher-income
populations and experience domestic shortages but are able

to pay the higher prices which their demand has created.

 

United Nations, Food and Agriculture Organization,
Trade Yearbook, 1969 (Rome, 1969), pp. 3-4.

7United States, Department of Agriculture, Foreign
Agricultural Service, Foreign Agriculture Circular, Live-
stock and Meat (Washington, D.C., January, 1971), p. 5.

5

Thus, the United States (99-114 pounds) and western Europe,
the latter not a substantial per capita beef consumer but
an importer of large quantities of various meats, have
maintained their present consumption levels.8

Current projections indicate a continued rise in the
world demand for beef and emphasize Latin America as an
area of great potential for fulfilling this demand.9 Latin
America, at present, contains about one-fifth of the world's
cattle and exports annually more than 40 percent of the beef
and about 20 percent of the live cattle traded. To increase
beef production to correSpond with future demands, however,
the region must improve: (1) pasture and herd management,
(2) marketing and transportation, (3) livestock and land
tenure relationships, (4) disease and pest control,
(5) local and international governmental livestock policies,
(6) local and international financing institutions, and

(7) agricultural extension services.10

 

8Ibid.

United Nations, Food and Agriculture Organization,
Provisional Indicative World Plan for Agricultural
Development, I (Rome, 1970), 237-271; Agricultural
Commodities Projections, 1975 and 1985 (Rome, 1967),
pp. 136-148.

 

10Joseph Grunwald and Philip Musgrove, Natural
Resources in Latin American Development (Baltimore,
Maryland: Johns Hopkins Press for Resources for the Future,
Inc., 1970), pp. 412-425.

Even if existing problems can be readily solved, Latin
American beef producers will be immediately challenged by
the domestic demands created by rapid population growth.

Due to increasing domestic demand there has been a general
decrease in the export proportion of total beef production
in Latin America. Rapid growth of the consumer population
requires an even greater expansion of production, if beef
exports are to continue at present levels. An alternative,
in Central America, is to decrease per capita beef
consumption and increase exports.ll

Central American beef exportation is a relatively new
phenomenon. In the late 1950's the United States, in
response to a growing demand for low-grade beef, invited
Central America to supply a portion of the market. From
1958 to 1968 beef exports from Guatemala, Honduras,
Nicaragua and Costa Rica, the major producers, increased
from 3.2 million pounds to more than 106 million pounds.12

By 1968, livestock and livestock products represented a

significant share of the total value of agricultural

 

11
Ibid.

12United States, Department of Agriculture, Foreign
Agricultural Service, The Beef Cattle Industries of
Central America and Panama, Miscellaneous Publication
No. 208 (Washington, D.C., June, 1969), p. 3.

exports in Nicaragua (13 percent), Costa Rica (10 percent),
Guatemala (7 percent) and Honduras (7 percent). Live animal
exports, in all cases, contributed substantially less than
meat exports shipped in a semi-processed, frozen form.13
In the process of transformation from primarily live
cattle export to the shipment of semi—processed frozen
beef, many changes occurred in Central America. The most
important of these were: a gradual decline in per capita
beef consumption, the realignment of marketing channels for
cattle, and a gradual reawakening of the entire industry
regarding methods of livestock management. Within ten
years annual per capita beef consumption in Central America
decreased by about 45 percent, from about twenty-five to
only fourteen pounds.l4 Cattle deliveries became oriented
toward newly-constructed export slaughterplants, rather than
distant markets or municipal abattoirs. Cattlemen sought to
improve the size and weight of their animals, now that
prices were determined on precise weight rather than head
or herd appraisals. These changes have been most abrupt in

Honduras, which was Central America's leading exporter of

live cattle and lowest per capita consumer of beef at the

 

13The State of Food and Agriculture, 1970, p. 74.

4 , .
1 The Beef Cattle Industries . . . , pp. 4-15.

time of the decision to ship semi—processed beef (see

Figure l).15

The Cattle Industry of Honduras

 

Since the introduction of cattle, around 1525,
extensive herds have grazed the interior valleys and
coastal lowlands of Honduras (Figure 2).16 While exploring
for mineral deposits, the Spaniards found these areas favo:
able for settlement and for development of their familiar
economic activity, the raising of cattle. Abundant forage
was available in the form of luxuriant native grasses, and
water was readily accessible in rivers draining the interic
highlands.

The beef cattle industry developed gradually for more
than four centuries but maintained its colonial cast. It
was characterized by the Open grazing of "small, horned, a1

usually brown or black" criollo cattle on the vast land-

17

 

holdings of the descendents of colonial cattle barons.

Control of the alluvial lowland pastures by large-scale

 

15United States, Department of Agriculture, Foreign
(Agricultural Service, The Beef Export Trade of Central
America, Miscellaneous Publication No. 168 (Washington, D.<
November, 1965), pp. 1-11.

16Carl L. Johannessen, "Savannas of Interior
Honduras," Ibero-America, XXXXVI (1963), 37+47.

 

 

17Ibid., p. 37.

 

 

 

 

 

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landowners forced the small-scale agriculturist onto
adjacent hillsides. It is also believed that, in time, the
large operators became more involved with the political
importance of their vast estates and therefore neglected
the development of beef cattle operations.18 This disregard
for management is still prevalent, although most of the
larger holdings may have been dismantled.

Today, the cattle industry is widely dispersed but
continues to predominate in large areas of the valleys
and lowlands. More than 30 percent of the land area of
Honduras, or 8.4 million acres is devoted to permanent
meadows or pastures which support approximately 1.7 million
head of mostly criollo cattle.19. About 60 percent of 82,520
individuals raising cattle in 1965 operated ranches ranging

in size from 9 to 85 acres.20

 

8Benjamin Villanueva, The Role of Institutional
Innovations in the Economic Development of Honduras, Land
Tenure Research Center Paper No. 34 (Madison: University
of Wisconsin, 1968), p. 6.

19
University of California, Statistical Abstract of

Latin America, 1966 (Los Angeles: Latin American Center,
1967): PP. 44-45, 126.

20

 

 

Repfiblica de Honduras, Direccién General de
Estadistica y Censos, Cifras preliminares segundo censo
nacional agropecuario, 1965-1966 (Tegucigalpa, D.C.:
Secretaria de Economfa y Hacienda, September, 1968), p. 3.

12

A scattered distribution of cattle ranches can pose
immense marketing problems. These problems are further
exaggerated in a mountainous country such as Honduras,
which is the size of Pennsylvania, but with a total road
network of 3,448 miles and only 737 miles paved.21

Another basic problem of the industry is the severe
dry season, from November through April, which inhibits
pasture growth along most of the Pacific coast and in
other areas. The seasonality is effective in terminating
the fattening period for a large portion of the cattle
population. It also regulates the marketing schedule,
since animals must be slaughtered prior to the dry season.

If Honduras is to meet projected Central American
production levels by 1980, there must be concerted efforts
to rapidly increase the size of the cattle herd.22 The
problem is primarily one of management. The criollo cattle
are usually of small size, slow maturity, and high mortality.

It has been found that a mixture of Brahman and criollo

 

21Repfiblica de Honduras, Direccion General de
Estadfstica y Censos, Honduras en cifras, 1970-1972
(Tegucigalpa, D.C.: Secretaria de Economia y Hacienda,
1973), p. 5.

22United States, Department of Agriculture, Economic
Research Service, Agricultural Prospects in Central America,
Foreign Publication No. 270 (Washington, D.C., May, 1969),
pp. 1-8; Prgjections of Supplyyand Demand for Selected
Agricultural Products in Central America Through 1980
(Jerusalem, Israel, August, 1969), p. 202.

 

13

animals will alleviate these deficiencies and aid in
increasing production. This should, of course, be

coordinated with an effective feeding program.

The Problem

 

Historically, the cattle industry of Honduras was
concentrated in the highland interior departments of Olancho,
Francisco Morazan, and Comayagua (Figure 3). Later, it
expanded southward to Choluteca, and more recently a
sizable growth has occurred in Cortes, Santa Barbara, and
Yoro departments in northern Honduras. The recent expan-
sion in the north has important implications for the
Central American beef cattle industry, which suffers from
insufficient forage along the Pacific Coast. If the unique
advantages of the north can be adequately analyzed and
explained, the methods of cattle-raising successful there
can perhaps be applied to other Central American nations
having similar environments yet to be developed.

One source implies that it is a combination of factors
which give the north its prominence:

Although there is as yet no evidence of a
geographic shift in the livestock industry,
the recent construction of a second export
packing plant in San Pedro Sula and the

presence in this area of many of the more
progressive and largest ranches along with

14

 

 

 

 

     

 

 

 

 

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000 one

 

 

 

 

 

15

The generally favorable soil and climatic

conditions all point to an acceleration of

development there. The superior conditions

of this region are reflected in the fact

that average slaughter weight of animals

received by the two slaughterhouses in San

Pedro Sula is about 300 kilograms (660 1b.),

while packinghouses in other sections of

the country report 280 kilograms (620 lb.)

or even as low as 260 kilograms (676 1b.).2

The main purpose of this research is to explain the

growth of the cattle industry on the north coast of
Honduras. It is hypothesized that the recent emphasis upon
the export of refrigerated beef from Honduras has led to the
concentration of beef production on the north coast and that
this concentration will become more intensified there as

compared with the other beef cattle producing regions of

the country.

Related Literature

 

There are no studies which treat the regional
differences of the cattle industry of Honduras. However,
several local studies have analyzed the production capa-
bilities of the cattle herd. The best of these is the

Diagnéstico de la ganaderia en Honduras.24 This publication

 

 

23
The Beef Cattle Industries . . . , p. 7.

24Repfiblica de Honduras, Comité de Coordinacién de

Desarrollo Agropecuario, Diagngstico de la ganaderia en
Hgndgras (Tegucigalpa, D.C., 1966).

16

summarizes the change in production between 1952 and 1965,
the only agricultural census years. Emphasis is given to a
comparison of the production of local criollo animals and
that of imported breeds, especially Brahman. Subsequent
publications, in addition to the abridged version of the

Diagnéstico, rely heavily upon information contained in the

 

original volume (i.e., 1952 and 1965 agricultural census
data) with extrapolations for the future.25

Other works focus on the cattle industry of Central
America. Of primary importance among these is the EEEEE

para el desarrollo de la ganaderia bovina de carne en

 

Centroamerica y Panama.26 This two-volume work summarizes

 

the livestock problems and programs of the Central American
area but, in the case of Honduras, draws upon the

Diagndstico for most of its material. Three other studies

 

offer valuable insight into the nature of cattle production

in Central America. The Beef Export Trade of Central

 

 

25Ibid.; Resumen del diagnéstico de la ganaderia

en Honduras (Tegucigalpa, D.C., 1966); Banco Central de
Honduras, Proyecto de desarrollo de la ganaderia de carne
en Honduras (Tegucigalpa, 1968); Secretaria Tecnica

del Consejo Superior de Planificacion, Programagpara

e1 desarrollo de la ganaderia de carne en Honduras
(Tegucigalpa, 1969).

26Repdblica de Honduras, Secretaria de Integracion
Economica Centroamericana, Basesgpara el desarrollo de
la ganaderia bovina de carne en Centroamerica y Panama,
2 vols. (Guatemala, 1968).

 

 

 

 

 

 

 

17

America and Panama is a summary of the production and
trade prospects of Guatemala, Honduras, Nicaragua and Costa
Rica, the major beef producers of the region. The Beef
Cattle Industries of Central America and Panama is a more
current report on prOduction and marketing facilities, and
Jose Antonio Costa's master's thesis, "The Export Beef
Industry of Central America" outlines the problems of beef
production and exportation in Central America.27

One additional study provides insight into the cattle
industry of the past. This is Professor Johannessen's
Savannas of Interior Honduras, which examines the relation-
ship between early cattle raising and the deterioration of
valuable grasslands in various periods. This historical
geography spatially defines the early savanna lands of
Honduras and notes the vegetation changes which have
occurred since European settlement in the early sixteenth

century.28

 

27United States, Department of Agriculture, Foreign
Agricultural Service, The Beef Export Trade of Central
America, Miscellaneous Publication No. 168 (November, 1965);
United States, Department of Agriculture, Foreign
Agricultural Service, The Beef Cattle Industries of Central
America and Panama, Miscellaneous Publication No. 208
(June, 1969); José Antonio Costa, "The Export Beef Industry
of Central America" (unpublished Master's thesis, Center
for Tropical Agriculture, University of Florida, 1964).

28Johannessen, Ibero-America, XXXXVI (1963).

 

 

 

18

It is apparent that related studies focus on two
basic sources, namely, the agricultural census materials
of 1952 and 1965.28 Although these documents suffer from
the usual data collection problems of Latin America and are
quite different in format from one period to the next, they
are believed to be quite reliable. The first and second
agricultural censuses contain regionally comparable data
which have, to date, remained essentially untapped. This
material provides a basis for this study which also

incorporates a sizeable field survey.

Objectives

 

The study has four objectives. These are to precisely
delimit, characterize, and compare the principal beef cattle
producing regions before and after access to the United
States market; to analyze the production, transportation,
processing, and marketing of beef cattle during the modern
period; to outline the basic problems of the past as a
background to changes of the present; and to provide data

useful for planning.

 

\

29Repfiblica de Honduras, Direccion General de
Estadistica y Censos. Primer censo agropecuario, 1952
(Tegucigalpa, D.C.: Secretaria de Economia y Hacienda,
‘December, 1954); Segundo censos nacional agropecuario,
1965-1966 (Tegucigalpa, D.C.: Secretaria de Economia y
Hacienda, June, 1969).

19

Procedures

 

The initial idea for this research was generated
during a field course in Costa Rica, where related problems
were investigated during the summer of 1968. The study .
of Honduras began at Michigan State University with the
compilation of a bibliography of textual, statistical and
cartographic materials. After obtaining a general knowledge
of the Honduran cattle industry, the researcher constructed

several choropleth maps using municipio data from the

 

agricultural census publications of 1952 and 1965. The
patterns revealed (1) an apparent increase of cattle both
north and south of the colonial centers of production, (2)
a pronounced concentration of pure and mixed breed animals
in the northern and southern regions and a conspicuous
paucity in the central part of the country, and (3) a
substantial increase in the number of ranchers in the north
as compared with all other areas. These generalizations
were used in formulating the hypothesis.

In June, 1969, the author engaged in a two-week
independent study program in Nicaragua, analyzing selected
aSpects of the beef cattle industry in that country.
Research in Honduras began in August, 1969. The first
requirement there was an on-site familiarization with

actual beef operations. Governmental and private offices

be.

20

were visited-in an attempt to accumulate as much pertinent
information as possible, such as publications, maps, names,
addresses and attitudes and impressions, within a very short
period of time.

An appraisal of the material and ideas collected
was followed by pilot interviews in the field to develop
an interview schedule. Practice with various types of
informants, including ranchers, cowboys, plant managers,
officers in cattlemen's associations, and agriculture
specialists aided in the development of the final schedule.

The next step in the field plan was to study
designated areas of Honduras at various times of the year.
This was necessary in order to observe any differences
produced by the climatic regime.

The field investigation was conducted during a
period of one year and included travel and interviews in
all regions of the country. Photographs and maps were used
to record information. Ranches of all sizes in the various
areas were visited for interviews with owners and employees.
The total number of such interviews was 531. Agricultural
extension personnel, from the governmental organization
DESARRURAL, provided a cross-reference to verify the field

information. Most trips to individual cattle-raising zones

 

21

lasted from ten to fourteen days. The field plan was geared
to the spatial definition of the four major operations of

the cattle industry.

 

II-

CHAPTER II
THE HISTORICAL DEVELOPMENT OF CATTLE RAISING IN HONDURAS

Cattle were first introduced to Central America from
Panama and were gradually disseminated northward to the
extensive Pacific pastures of Costa Rica, Nicaragua, and
Honduras.1 Only in Honduras were they introduced on the
Caribbean coast and driven inland with the initial settlers.
The Spaniards continued to practice their pastoral pursuits
throughout much of interior Honduras.2

Early colonists proceeded to the areas where the
indigenous population had been gathering gold from stream
gravels. Several more significant vein deposits were dis-
covered later, and permanent Spanish settlement of these
areas increased rapidly. The cattle industry supplemented
the needs of the growing communities and began to flourish

on the extensive holdings of the encomienda, or land given

 

 

1Robert C. West and John P. Augelli, Middle America,
Its Lands and Peoples (Englewood Cliffs, New Jersey:
Prentice-Hall, 1966), p. 289.

 

 

2For an excellent account of the Iberian ranching
techniques transplanted in the New World see Charles J.
Bishko, "The Peninsular Background of Latin American
Cattle Ranching," The Hispanic American Historical Review,
XXXII (November, 1952), 491-515.

22

23

in "trust" by the Crown to successful colonial leaders.

Land legislation facilitated the accumulation of
extensive properties by the Spaniards and gradually
increased the hardships of the Indians. Suffering from
plunder, disease, and a disrupted food supply the Indian
population decreased drastically.

By the time of Independence, in 1821, the cattle
industry was controlled by a few Spaniards who freely
grazed their enormous herds on the fertile pastures of the
interior valleys. Colonial trade restrictions prohibited
commerce with other nations, so the animals supplied only
local needs.

The period after Independence was marked by rampant
political instability. As a result, each "government" was
faced with financial difficulties. This led to an increase
of land sales and taxation. Ultimately there was a sub-
stantial increase in the number of smaller individual and
community landholders and cattle raisers. Also, with the
severance of colonial commercial restrictions, cattle and
cattle products could be freely traded in the major markets
in El Salvador and Guatemala.

The cattle industry of the twentieth century remained
quite similar but was given additional support from agrarian

legislation which encouraged smaller holdings, improved

24

management, and increased trade. The United States fruit
companies imported improved breeds during the early part
of the century and thus created some initial changes in the
breeding stock.

The most significant change to affect the industry
occurred in the early 1960's. Due to a shortage of grass-fed
beef in the United States, Honduras was invited to supply a
portion of the market. The entire industry was transformed
from an emphasis on live animal export to the shipment of
frozen, semi—processed beef. All phases of cattle raising
in Honduras were significantly modified. Production,
processing, and market facilities were realigned to service
the new market. However, this occurred at the expense of
local beef consumptionand to different degrees in different
areas. Both historical and geographic perspective is
essential for an understanding of the areal differences that

exist within the Honduran cattle industry today.

The Colonial Cattle Industry

 

Although Honduras was first claimed for the Crown by
Christopher Columbus, in 1502, conquest and colonization

did not begin for another two decades.3 The early Spanish

 

3Rdmulo E. Dur6n, Bosquejo historico de Honduras,
1502 a 1921 (San Pedro Sula: Tipografia del Commercio, 1927),
pp. 3-60 '

 

....— .. ...-......m .A

25

exploration and interest in areas to the north and south of
Honduras delayed the exploitation of intermediate Central
America.

Military expeditions, seeking jurisdictional control,
mineral riches and Indian slaves eventually penetrated
Honduras from various directions and established or captured
towns in the interior (Figure 4). Puerto Caballos, Naco,
and Trujillo became the first major Spanish settlements in
Honduras. From these northern centers permanent settlement
proceeded southward to Comayagua, Gracias a Dios, and San
Jorge de Olancho. During the same period conquest from the
east, under the auspices of the Governor of Panama, led to
the founding of other settlements in Olancho.4 The Pacific
coast of Honduras was first discovered by an expedition
from Panama in 1522 and explored by another from Mexico two
decades later, but the establishment of Spanish residency
in the area did not become widespread until the rise of
permanent mining communities in the latter half of the

century.5

 

4Robert S. Chamberlain, The Conquest and Colonization
of Honduras, 1502-1550, Publication No. 598 (Washington,
D.C.: Carnegie Institution of Washington, 1953), pp. 19-20.

Guillermo Reina Bustillo (ed.), El libro de Honduras
(Comayagfiela, D.C.E Tipografia Nacional, 1957), pp. 13-19.

”ht

26

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27

Spanish colonization in Honduras followed Indian
reports of mineral deposits. Gold placering, or the washing
of stream gravels for gold, provided the basic attraction
for the Spaniards during the early colonial period. The
Indian knowledge of the location and techniques of gold
placering led to the early settlement of the Villa de
Gracias a Dios and San Jorge de Olancho areas.

Cattle were introduced to Honduras as early as 1525.
By order of Hernan Cortés, the animals were shipped from
Cuba and Santo Domingo to supply the newly founded port of
Trujillo. They reproduced rapidly on the disease-free
abundant pastures.6 Cattle raising spread rapidly into the
interior as conquest and colonization efforts expanded.

The animals were usually driven with the initial colonists
as they moved into new areas.7

Agriculture, however, remained the dominant economic
activity until mineral veins were discovered. Gold placering
was usually migratory and involved only a small number of
people. Around 1569, several important silver deposits were

discovered near Tegucigalpa.8 Agalteca, San Marcos, Apasapo,

Santa Lucia, and Tegucigalpa became booming centers.

 

6
Johannessen, XXXXVI, 37.

7Chamberlain, pp. 32, 55.

8West and Augelli, p. 294.

 

28

of population.9 Later, mineral deposits were discovered
east of Choluteca at El Corpus.lo

The growth of mining communities in Honduras gave
the cattle industry a significant impetus. As the popula—
tion expanded and became permanent so did the cattle herds.
The large number of Indian workers needed to operate the
mines, plus the Spanish overseers, provided a substantial
market. The livestock industry supplemented the needs of
the mining community by furnishing "tallow for the candles
which illuminated the mine shafts, hides for ore sacks and
ropes, mules and horses for mine work, and beef (and mutton)
for food."11

The colonial encomienda system supported the expansion
of the cattle industry. As a reward for participating in
the conquest and colonization, Spanish encomenderos were
"entrusted" by the Crown with an area containing a given
number of Indians who were to labor in the mines and fields

in return for the protection of their "physical and

 

9Bustillo, p. 21.

loRobustiano Vera, Apuntes para la historia de
Honduras (Santiago, Chile: Imprenta de "El Correo"
Delicias, 1899), p. 139.

 

11Robert C. West, "The Mining Economy of Honduras
During the Colonial Period," Actas del XXXIII Congreso
Internacional de Americanistas, I (San José, Costa Rica,
1959), 774. -

 

 

 

 

 

 

29

spiritual well-being.“12 Ideally, the encomendero was
only the Crown administrator of the local operation but,
in practice, became the owner. As one author puts it:

The feudal lord was only the economic and
political manager and largest beneficiary

of the enterprise. It was therefore to his
own interest and to the interest of the
powers at the center to get as much as was
possible out of the encomienda system.

The obvious device for accomplishing this
objective was slavery, or labor exploitation
through the compelling instruments of force
and economic sanctions . . . Eventually, the
small privileged minority of colonial times
came to see private ownership of large
tracts of land, rather than management of the
encomienda system, as the basis of their own
survival. 3

Lands obtained in this manner were used for the
expansion of cattle raising. In Honduras, colonial land
legislation also enhanced the cattleman's situation by
freely granting huge tracts of land to Spaniards, by
legalizing land titles and, later, by protecting the

14

communal lands. Although residency and measurement

requirements were more stringently enforced around 1700,

 

12Hubert Herring, A History of Latin America from
the Beginnings to the Present (3rd ed.; New York: Alfred A.
Knopf, 1968), pp. 186-187.

 

3
Villanueva, p. 5.

14William S. Stokes, "The Land Laws of Honduras,"
Agricultural History, XXI (July, 1947), 149-150.

30

the cattlemen had already been given the opportunity to
incorporate the open grass-covered lowlands. The possession
of title to the land protected the ranchers from governmen-
tal land seizures and also facilitated the accumulation of
Indian labor and lands. The eventual protection of the Indian
lands was approved by the cattlemen, for by this time the
Indians had been displaced to inferior hillside locations.15

The encomendero and his cattle were instrumental,
ultimately, in the demise of the Indian population. It is
estimated, by various sources, that the indigenous population
of Honduras (sedentary Mayas in the West and semi-nomadic
peoples in the East) decreased from 1.2 million inhabitants
in 1524 to about 18,000 in 1590. Of the estimated 300
Spaniards in the country around 1575, about half were feudal
lords operating large estates.16. Early slave collection,
arduous labor, war, disease and disruption of the native
food supply eventually eliminated large numbers of Indians.17

Cattle became such a menace to Indian crOps that it became

necessary, in 1550, to prohibit the juxtaposition of grazing

. lands and Indian fields.18

 

15Ibid.

16Johannessen, pp. 30, 32.

17Ib1do’ pp. 29-31.

18
Stokes, p. 150.

31
Due to stringent financial regulations governing
trade during the colonial period, hides and tallow became
the major trade items of the industry.19 One account
relates that:

The cattle industry is poorest of all,
because the livestock are lost in the camp .
Perhaps they are lost because the common
people are not industrious and more inclined
to leisure than to work. Perhaps conditions
are poor because they have no market where
they can take the cattle, which as a result
are not highly valued among these people.

If such a port existed, their own self
interest would encourage economic activity
for the profit.20

Near the end of the period, in 1796, the largest
share of the approximately 200,000 cattle were reported
in the Olancho, Tegucigalpa, and Gracias areas--the most
isolated, but prosperous, mining districts of the country.
The need for improved transportation during that period
was summarized by Bancroft when he pointed out that:

. . . the want of good roads and facilities

for travel was also a serious drawback; and
it is probable that to make a tour of the

 

19William V. Wells, Explorations and Adventures in
Honduras (New York: Harper and Brothers, 1857),
pp. 461-462.

20Pedro Batres Ortiz de Lettona, "Relacién
geografica de la alcaldia mayor de Tegucigalpa, 1743,"

Archivo Nacional de Guatemala, File 210, No. 20, cited by
JOhannessen, p. 43.

II»

32

different settlements in Honduras, all lying
within a radius of forty leagues [120 miles],
occupied in the middle of the sixteenth
century, almost as much time as would now

be required to circuit the globe.21

The Post-Independence Period

Independence, in 1821, initiated several basic
changes in the Honduran cattle industry. These transforma-
tions were, however, to occur within a completely turbulent
political environment. From 1824 to 1900 there were no-
fewer than ninety—eight changes of executive authority.22
None of the executives was able to make significant
improvements during the period because of the many armed
disturbances from within and without the Republic.

Dr. Marco Aurelio Soto, the first to take office under
peaceful conditions in several decades, began his term
when there was allegedly only $1.90 remaining in the
treasury.23

One author believes that disruption stemmed from the

emerging landowning class, which challenged the Spanish

 

1

Hubert H. Bancroft, History of Central America,
VOlume II, 1530-1800 (San Francisco: The History Company,
Publishers, 1886), p. 294.

 

22William S. Stokes, Honduras: An Area Study in
Government (Madison: University of Wisconsin Press, 1950),
pp. 329-331.

23
Bustillo, pp. 28-29.

 

33

aristocracy. He states that:

Livestock exploitation provided the broad
economic foundations of power to the

emergent Honduran aristocracy. It also
provided the political power which accounted
for the smooth transition of the governmental
apparatus to the emerging Honduran state in
the middle of the nineteenth century. . . .
It is precisely this identification which

has accounted for the turbulent political
history of Honduras. Abuses of political
power and self interest in the attainment of
economic power through the machinery of
state, can be identified as causal factors

in the partisan struggles for power in almost
all of the history of Honduras as an
independent state.24

The financial crisis created by these difficulties
reinforced the trend. In order to raise revenues, land
legislation policies were focused on land sales and
taxation, title regulation and resurveying, and the use of
land grants to pay public debts. Little effort was made
to improve agriculture, although legal channels for the
distribution of free or inexpensive lands had been estab-
lished in 1829.25 At the same time, the population of
Honduras was expanding rapidly. It is estimated that from

1791 to 1887 the p0pu1ation more than tripled, from 93,500

 

4 .
Villanueva, pp. 5-6.

25Stokes, "Land LaWs of Honduras," pp. 150-151.

34

26 More people wanted low-cost land,

to over 330,000.
but it was unavailable at the beginning of the period.

The most significant agrarian development of the
post-independence period was enacted in 1836 for the people
who could not afford to buy land at previous prices. Both
individuals and communities were invited to purchase land
under the program. In the first statement of the principle
of the ejido, or communally-owned property, "two square
leagues" (11,520 acres) were allotted, at no cost, to each
town. Unfortunately, the original law was repealed, and
then revised several times, but finally returned to its
. . . 27
original form in 1870.

The ejido offered an ideal unit for deve10ping the
cattle industry. The problem plaguing the industry was one
of management. It was reported that

. . . little has been done to improve the
stock by the introduction of improved blood
or by selection of the best animals with
which to add to size, strength, or quality

. . . The cattle show evidences of their
Spanish origin. . . .28

 

6
Johannessen, p. 30.

27Stokes, "Land Laws of Honduras," pp. 151-152. This
reform was originally enacted in Honduras more than fifty
years before a similar program began in Mexico.

8

United States, Bureau of American Republics,
Honduras, Bulletin No. 57 (Washington, D.C.: United States
Government Printing Office, 1892), p. 45.

 

35

Communal ownership implies some form of maintenance of
crops and cattle, whereas large estate owners were
considered

. . . worse entrepreneurs than the tenants

and squatters on their land. They rent out

to subsistence farmers their poorest land--

rocky, eroded slopes, long since exhausted

of all fertility, incapable of providing

more than a pittance of income—-and reserve

for their own account the fertile plains

and valleys, but use them only to graze a
few scrawny cattle.29

Another event contributing to this problem was the decline
of the mining industry. "Wars and political disturbances
led to the abandonment of the mines and the owners afterward
became owners of immense grazing estates."3O

Despite the adversities of ranching during the
nineteenth century, trade did increase substantially.
During the century the cattle herd is estimated to have
doubled.31 Prior to independence, cattlemen were legally
allowed to market their animals in Guatemala and El Salvador

only during the annual "fairs."32 After removal of these

 

David F. Ross, "Economic Theory and Economic
Development: Reflections Derived from a Study of Honduras,"
Inter-American Economic Affairs, XIII (Winter, 1959), 24.

30
Bancroft, III, 655.

31Johannessen, pp. 43, 46.

321bido y p. 44.

 

36

restrictions large numbers were driven to the neighboring
markets, and sizeable shipments of hides and cattle were

made from Omoa and Trujillo (Figure 5).33

The Twentieth Century Cattle Industry

The cattle industry did not change significantly at
the turn of the century, but an overall concern for
improvement within the industry was evident. The avail-
ability of inexpensive land, increased breeding efforts,
and government legislation fostered development of the
industry.

An agrarian reform measure enacted in 1888 established
the free utilization of baldios, or state-owned land. The
government was empowered to make grants of two square
leagues to municipal centers, and to smaller centers one-half
this allotment. In 1924 national lands were opened for sale
at from $2.80 to $14.00 an acre. A revision of this law
provided for the rental of national lands in large units
for raising cattle.34

Increased herd-improvement efforts are evidenced by

the rise of stock imports. In four years, 1924-1926 and

 

33 .
Bancroft, III, £667; E. G. Squier, The States of
Central America (New York: Harper and Brothers, 1858), p. 269.

34Stokes, "Land Laws of Honduras," pp. 152-154.

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38

and 1935-1937, for which data are available, over

k.35 Part of

$100,000 was expended for improved livestoc
this increase was probably due to efforts of the fruit
companies to build up their herds,‘but another reason was
the elimination of import duties on "blooded animals," in
1928.36

Government assistance included the regulation of
grazing permits, fencing, branding, and taxation on young,
productive animals for export.37 The basic government-
supported program.was, however, a land distribution system
which led eventually to numerous small-sized operations in
Honduras.

The industry grew slowly during the first half of
the twentieth century but continued to increase its exports
of live animals, primarily to El Salvador and Guatemala.

In the late 1950's, Honduras was Central America's leading

producer of cattle and the major exporter of live animals.

 

35
A. H. King, Report on the Economic Conditions of

the Republic of Honduras, 1927, Department of Overseas
Commerce (London: Her Majesty's Stationery Office, 1927),
p. 16; D. G. Rydings, Report on the Economic Conditions
of the Republic of Honduras, 1938, Department of Overseas
Commerce (London: Her Majesty's Stationery Office, 1938),
p. 26.

36Stokes, "Land Laws of Honduras," p. 153.

 

 

37Bureau of American Republics, p. 46.

39

About 80 percent of the cattle in Honduras were owned by

small-scale farmers (125 acres or less).38

The Era of Meat Exports

 

For several decades there has been a general decrease
in the number of dairy cattle in the United States. It is
believed that the increased productivity of the average
dairy cow and the growing use of artificial insemination
have combined to limit the number of cows and bulls avail-
able for slaughter. The dairy herd has traditionally
supplied thin, old, grass fed or unproductive cattle to
fulfill the need for manufactured beef, officially graded
"cutter and canner." However, around 1957 the demand for
cutter and canner beef began to exceed the domestic supply.
At this time, the United States invited major exporters to
supply lower grade, range-fed beef. Between 1957 and 1963
the volume of imports as compared with domestic production
of this grade changed from 2 percent to 50 percent.39

Early in 1964 the United States officially began to

regulate beef imports, through trade agreements with

 

38The Beef Cattle Industries, pp. 1, 6-10.

39United States, Tariff Commission, Beef and Beef
Products, Publication No. 128 (Washington, D.C., June,

40

Australia, New Zealand, Ireland, and Mexico.40 On
August 22, 1964, the United States Meat Import Act (Public
Law 88-482) was passed, which established a quota system
for meat imports based upon percentage fluctuations from
average annual commercial production of meat in the United
States during the base period 1959 to 1963. The Secretary
of Agriculture was empowered to: (l) publish annually and
quarterly the quantities of meat to be imported, (2) restrain
imports from any nation which exceeds 110 percent of its
quota, (3) determine the quantity of meat to be imported
from any given nation, and (4) regulate, with approval of
the President, all allotments in accordance with "the
economic well being of the domestic livestock industry."41

The opportunity to export beef to the United States
met with enthusiastic approval in Central America. Besides
having the advantage of accessibility to the United States,
the republics of Guatemala, Honduras, Nicaragua, and Costa
Rica, in particular, had been in the process of expanding
the production of their livestock sectors through programs

designed to diversify agricultural production and exports.

Therefore, cattle supplies were readily available.

 

4OIbid., pp. 103-104.

41United States, Statutes at Large, 88th Congress,
2nd 8888., V01. 78, 1964, pp. 594-595.

 

41

Central America was also free of hoof and mouth disease, a
viral disease which seriously affects the milk, meat, and

. power production capabilities of unvaccinated animals. All
of South America has been declared a hoof and mouth "infected"
area, and therefore, all "fresh, chilled, or frozen" meat
from this region is banned from the United States.42

Central America rapidly adjusted to the new import
policy of the United States. Two immediate changes were
necessary to convert from live animal exports to exports of
semi-processed, frozen beef. First, United States-approved
export packing plants had to be constructed. All animals,
buildings, equipment and methods of slaughtering, packaging
and refrigeration had to be approved by inspectors of the
United States Department of Agriculture before beef
exports could begin. From 1958 to 1970, seventeen of these
slaughter facilities were opened in Central America
(Figure 6). Most are located near the Inter-American
Highway along the Pacific coast, the area of highest cattle
density in Central America. An additional plant, in Belize
City, was approved and began exporting in 1973.

An approved method of transporting the frozen beef
also had to be devised. At first, most beef was transported

by truck or train from the plants to the major ports, and

 

'42Beef and Beef Products, pp. 129-130.

 

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43

then to refrigerated ships which would deliver the products
to Atlantic ports in the United States. However, an American
firm has organized an overland system of transporting the
beef. Coordinated Caribbean Transport, Inc. operates

about 120 refrigerated trailer trucks which pick up perish-
able products along the Inter-American Highway from Panama

to Guatemala. The trucks are driven to Matias de Galvez
(Santo Tomas) on the east coast of Guatemala, where the
trailers are shipped to Miami. The trailers return with
manufactured goods for Central America.

Beef exports from Central America have boomed in the
past decade as the related facilities have been developed.
However, the era of beef export poses an immense challenge
to the cattle industry of Central America. Not only will
the problems of the past, such as inadequate transportation,
insufficient forage, ineffective herd management, and
institutional difficulties continue to plague the industry,
but new problems must also be considered.

The desire to maintain present levels of beef exports
has severely decreased the availability of cattle for
domestic consumption. A concurrent and rapid growth of
population compounds the problem. Per capita beef

consumption in Central America has decreased by almost

50 percent in the past decade and the future does not

44

appear bright. Projections indicate that by 1980 the
population of Central America will almost double the 1965
figure of approximately 13 million inhabitants. In the
same period the cattle population is expected to increase
by only 50 percent.43 It is apparent that the cattlemen
of Central America must devote their efforts to increasing
beef production if current policies are to continue.

Aside from importing huge numbers of cattle, the
most effective way to increase beef production, or the
total amount of beef produced through slaughter, is to
increase the average production per animal through proper
management. It is known that an effective feeding and
breeding program can produce animals averaging 925 pounds
in 2% to 3 years, rather than the present average of
750 pounds in 4 or 5 years. A parallel increase in the
calving percentage, and a decrease in the mortality rate,
could within a period of ten years increase meat production
by 50 percent while maintaining present export levels.44

The cattlemen have recently become concerned with

increased productivity, because the new export marketing

 

4

3Projections of Supply and Demand for Selected
Agricultural Products in Central America through 1980,
pp. 8-9, 202.

44 .
The Beef Cattle Industries . . ., p. 2.

b:
U‘i

system uses weight as the major criterion for price rather
than height or some other factor. Initial breeding programs
met heavy resistance from the ranchers who had been trying
to develop taller animals through selective breeding.
Prices previously had been established on the basis of
height, or horn development in the case of work animals,
so there was little concern for carcass development.4S
Prices based on the amount of weight accumulation have
provided incentives for change.

The era of beef exportation from Honduras began in
1958, with the shipment of 589,000 pounds (C.W.E) of frozen
boneless beef to the United States. By 1968 the total had
reached 20.3 million pounds, and the forecast for 1969
envisioned shipping 33.3 million pounds.46 These exports
were processed at one of five widely dispersed export
plants (see Figure 6, p. 42). The location of the plants
is highly indicative of the major concentrations of cattle

in Honduras and also illustrates the marketing importance

of the north coast.

 

Graham S. Quate, "Beef Production in Guatemala,"
Agriculture in the Americas, VII (August—September, 1947),
105.

 

46
The Beef Export Trade of Central America, p. 9;
Foreign Agriculture Circular, Livestock and Meat, p. 10.

 

46

The rising importance of the north coast cattle
producing areas, within the Departments of Santa Barbara,
Cortes, Yoro, Atlantida and Coldn, has been the most
significant feature of the era of exportation in Honduras.
Between 1952 and 1965 the cattle herds of the north coast
departments increased by 40 percent, as compared with only
a 6 percent increment for the remainder of the country.
The absolute increase on the north coast, some 115,000 head,
was more than double that for the remainder of the country,
which comprises more than two-thirds of the total area and
cattle in Honduras.47h

The north coast is physically and economically well
situated to capitalize on the recent rise in exports. The
general physical situation is conducive to a continual
forage cover throughout the year. This enables cattlemen
to market animals at any time and eliminates the need to
search for supplemental feed during six months of the year,
which is a problem on the Pacific coast. Abundant forage,
one requirement of an effective breeding program, is also
attractive to those concerned with increased productivity

and maximum profit. The question, however, is whether or

 

47Primer censo agropecuario, 1952, p. 64; Segpndo
censo nacional agrOpecuario, 1965-1966, pp. 2, 4.

 

 

47

not the region has increased its production specifically
in response to the recent export trend. Have the avail-
ability of export packing plants, better transportation
facilities and better prices "created" a booming cattle
industry on the north coast, or would the increases in
this area have occurred simply through the development of
effective management practices? The answer to this
question having many interrelated components could aid in
planning the development of a cattle industry in similar
areas elsewhere.

In one respect, the cattle industry of Honduras is
unique. It has most of the characteristics and problems
found in other Central American nations but is conSpicuous
as the only major cattle producer in Central America
operating successfully on the Caribbean coast. A variety
of factors such as early settlement, commercial development,
physical conditions, and current economic advantages
suggest reasons for the prominence of the Honduran north
coast relative to other cattle-producing regions of Central
America. However, a detailed analysis of these and other

factors will explain the predominance of the region.

CHAPTER III
PHYSICAL ASPECTS OF THE CATTLE INDUSTRY

Honduras is a land of rugged mountains and valleys,
and its other physical components reflect this complex
pattern. The climate, soils, and vegetation are charac-
terized by extreme diversity. Man's use of the land for
cattle raising is also varied and should be viewed in
relation to the physical landscape.

The cattle industry was concentrated originally in
the interior valleys and lowlands of Honduras and
subsequently expanded to the other areas. The number of
cattle ranches increased rapidly as smaller plots became
available to the majority of the population. The resultant
pattern revealed a dominance of large-scale operators
controlling the lowlands and many more small operators
widely dispersed throughout the remaining territory. This

general pattern remains in evidence today.

Topography_

 

Cattle raising in Honduras has been traditionally

restricted by rugged terrain. In effect, the mountainous

48

49
topography has isolated the various cattle raising areas
of the country. In contrast with many other extensive
cattle producing regions of Central America, the industry
in Honduras exemplifies a nodal distribution quite
distinctly confined to the major valleys and lowlands.
This has posed many economic, sociological, and physical
problems.

Initially, the cattle industry supplied only domestic
demands for meat, milk, hides and tallow, and local cattle
raising districts could easily supply the needs of adjacent
communities. Later, as the industry expanded and inter-
national markets for animals, hides and tallow were opened,
it became extremely difficult for ranchers to market their
produce--even if the product walked to market. Economic and
physical difficulties defeated most attempts at mountain
road construction. Therefore, the long, treacherous
journeys through the mountains to the ports or distant
markets in Guatemala or El Salvador resulted in substantial
weight and even animal losses. The new trend of meat
export, with the price emphasis upon weight, only increased
the financial losses of the cattlemen. Although trans-
portation facilities improved somewhat, the isolated valleys

remained inadequately served, and the cattlemen were unable

50

to capitalize on the improved prices offered by new packing
plants.

It now appears that the long period of isolation has
created a regional consciousness. This is particularly
evident in local customs or beliefs concerning livestock
management. Several individuals, usually prosperous and
influential, are generally recognized as the innovators
in a given community. The livestock practices of these
individuals became the "ideal" techniques for cattlemen
in the area. Whereas agricultural extension programs are
gradually making progress, the traditional methods of
animal husbandry which prevail in the isolated cattle
raising districts offer an immense educational challenge.

One author describes the process as follows:

The majority of Latin American countries

are classified on the traditional end of

the modernity continuum. As such, it is

much more likely that the rate of adeption

of innovations may be affected by relatively
few factgrs or individuals. For example, if
the patron decides that some innovation should
be used by his aparceros, the rate-of-adoption

curve for that particular system may be
highly accelerated.l

 

 

1A. Eugene Havens, "Theory and Method of Research on
Diffusion," Rural Development in Tropical Latin America,
ed. by Kenneth L. Turk and Loy V. Crowder (Ithaca, New York:
Cornell University, 1967); p. 98.

 

51

Early settlers initially favored the valley locations
because extensive grasslands, water and abandoned Indian
fields were available for cattle. As land acquisition
and colonization increased, the prized bottomlands became
the dominant cattle raising areas. However, competition
with crops for the fertile valley land gradually led to
the disappearance of formerly extensive pastures. The
valley sides, although cleared of forests in many areas,
provide inadequate forage for year-round grazing. The
soils on the hillsides, which frequently exceed 40 percent
gradients, are shallow, highly eroded, and lacking the
continuous riverine supply of moisture common to the

bottomlands.

The soils of Honduras are generally of three types:

alluvial, volcanic, and bedrock-associated (Figure 7).

The best soils have developed on alluvium in the lowlands
and valleys. These soils are primarily fertile, deep,
finely-textured and well-drained. About 65 percent of
the country is characterized by the latter two types.

The volcanic soils, encompassing the southernmost part of
lHonduras, are easily eroded, have medium to low fertility,

and are of moderate depth. The remaining soils are

52

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53

derived from sedimentary and metamorphic rock and prevail
throughout the highlands. They are generally shallow,
easily eroded, infertile and located on slopes of greater
than 40 percent.2

The cattle industry developed on the best soils in
Honduras, namely those of alluvial origin, and upon the
better volcanic soils. In general, those of volcanic
origin support the major cattle raising areas in Central
America and are believed to have the " . . . greatest
potential for a more intensive exploitation of cattle
raising."3

Grazing in Honduras has been subject to intensive
competition from crOps, and it has been "suggested" that
g the industry adjust to less favorable agricultural areas.
In the most recent and comprehensive soil analysis of
Honduras, only portions of the volcanic soil area have

been "recommended" for pasture (Figure 8). The other

 

Organizacion de los Estados Americanos, Informe
oficial de la mision 105 de asistencia técnica directa
a Honduras sobre reforma agraria y desarrollo agricola,
I (Washington, D.C., 1963), 18-21.

3Basespara el desarrollo de la ganaderia bovina
de carne en Centroamerica nganama, I, 16-17.

54

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55

areas suggested for exclusive production of pasture are,
again, extremely isolated.4

One common misconception has continually plagued the
cattle industry throughout the world, namely that pasture
can be developed in almost any environment. Whereas this
might hold true for native grasses, generally of low
nutritive qualities, improved pasture grasses are dependent

upon at least moderately fertile soils.

Climate

Pastures require ample rainfall to maintain their
verdure. Drought is particularly problematic along the
Pacific coast, where a distinct dry season inhibits pasture
growth from November to April. The early colonists on the
Pacific coast probably had little difficulty with the dry
season, since they were accustomed to the large scale
ranching techniques of semi-arid lands.5 At first, animals
were allowed to graze at will and were corralled only for

branding or marketing. However, as the area was settled

 

4Vladimiro Catellafios and Charles S. Simmons,
Algunos suelos de Honduras con unas de las caracteristicas
importantes que influyen en su uso, Appendix 2
(Tegucigalpa: Direccion General de Agricultura y Ganderia,
1970): p. 1.

5Bishko, XXXII, 494-495, 508.

 

56
and increasingly devoted to cattle and crops, it became
necessary to fence the land. The animals were now
restricted to the owner's or the communal pasture and thus
prevented from searching for the greener riverine grasses
or supplementary browse during the dry season.

The movement of the subtropical anticyclones northward
initiates the rainy season along the Pacific coast, with a
dominance of south-westerly, moisture—laden, winds from the
ocean.6 Choluteca on the south coast receives approximately
eighty inches of precipitation annually, and that almost
exclusively from May to October. Toloa, on the north coast,
also receives eight inches but with only slight decreases
in rainfall from February to May (Figures 9 and 10).7

The south coast is not the only region affected by
the dry season. Numerous interior valleys lie in the rain
shadow of mountain ranges and are little benefitted by
moisture-bearing air masses. Local cattlemen must therefore
cope with forage problems. Moroceli, east of Tegucigalpa,

receives only twenty-six inches of rainfall, mostly within

 

6Glenn T. Trewartha, The Earth's Problem Climates
(Madison. Wisconsin: University of Wisconsin Press, 1962),
Pp. 65—660

7Repfiblica de Honduras, Direccion General de
Aeronautica Civil, Servicio Meteorélogia Nacional,
Almanaque hondurefio, 1969 (Tegucigalpa, 1969), pp. 26, 32.

 

57

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59

a six-month period, while nearby Danli receives twice that
amount distributed more evenly during the year.8 The rugged
terrain is effective in creating such local differences
throughout the highlands (Figure 11).

Temperature is another climatic element which has a
direct bearing upon cattle raising. Native cattle can
withstand a substantial range of temperature but function
optimally (i.e. normal metabolism rate) between 60° and
70°F.9 Pure and cross-bred cattle have quite different
stress thresholds than native cattle. For example,

‘ European breeds become inefficient at temperatures above
80°F, while the Brahman hybrid cattle can withstand

105 degrees.10 Figure 12 indicates the variation of
average daily temperatures with elevation in Honduras.
It can be readily understood why cross-bred cattle are
common to the lowlands.

The productivity of the native animals decrease‘

when they are subjected to intense solar radiation and

 

81bid., pp. 26, 29.

9Bases para el desarrollo . . . , I, 12.

 

loLawrence Onesti, "The Characteristics and Resulting
thefulness and Productivity of Crossbred Cattle in the
flPropics and Subtropics" (unpublished manuscript, Department
c>f Geography, Michigan State University, 1968), p. 3.

60

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62

humidity. It has been shown in Venezuela that for some
breeds, such as the Holstein, only ten hours per day fall
within the animal's temperature (75 degrees) or humidity

(60 percent) thresholds.11

In Honduras, the Pacific coast
area has the greatest solar radiation during the dry season,

due to the paucity of clouds.12

Vegetation

 

When the Spaniards arrived in Honduras, the land was
more heavily forested and contained intermittent expanses
of open grasslands or savannas. The savannas provided
abundant pasture for cattle transported by the colonists.
The cattle industry expanded rapidly as more land was
cleared and the population increased. However, it is
believed that, in time, the original vegetation was changed
by man and livestock. During periods of excessive drought,
widespread burning by man and overgrazing by livestock
apparently destroyed much of the original grassland.13

Today, it is quite evident that many former grasslands have

 

llManuel Benezra R., "Climate Factors Influencing

Livestock Production," in Turk and Crowder, pp. 372-373.

Bases para el desarrollo . . . , I, 14.

 

13Johannessen, XXXXVI, 48-50.

 

63

been engulfed by a thorny, scrub growth of trees and
bushes. The ranchers, in most cases, planted various
pasture grasses instead of attempting to salvage the
savanna lands. The original savannas are now far exceeded
in acreage by planted pasture, a dominant vegetative form
on the landscape today.

A transition exists between pasture and forest.
The need for extensive areas for grazing prompted some
operators to plant grasses on communal or national land.
Today, some 37 percent of the more than eight million acres
of pasture in Honduras are under forest cover.14 This was
the only alternative for those cattlemen faced with crop
competition and the need to find substitute areas of

extensive pasture.

Summary

The early cattlemen of Honduras chose to settle the
interior valleys and lowlands and had to contend with many
problems. The isolation of the valleys_resulted in commu-
nication and marketing problems, and land-use competition

arose. The cattlemen first settled the most fertile areas

Republica de Honduras, Instituto de Investigaciones
.Econdmicas y Sociales, Universidad Nacional Autonoma
<ie Honduras, Esbozo de una politica para Honduras
(Tegucigalpa, 1964), p. 7.

64

of the country and later found they could not compete
successfully with the farmers or the government for the
best lands.

Climatically, the major cattle producing areas have
been plagued by dry season forage problems, and this has
necessitated decisions concerning animal adaptability.

The savanna vegetation gradually succumbed to the pressure
of man and beast, forcing the cattlemen to occupy other

areas.

 

CHAPTER IV
SPATIAL ASPECTS OF BEEF PRODUCTION

Honduras is an agricultural country with little of
its land in agriculture. Although about two-thirds of
the economically active population (ten years or older) is
engaged in agrarian pursuits, and 90 percent of the value of
Honduran exports come from agriculture, only 20 percent of
the total area (43,277 square miles) is used for crops or

pasture.l

This agricultural land (3,461,528 manzanas), or
all land in farms, is comprised of approximately 50 percent
pasture, 25 percent crOps, 20 percent forests, and 5 percent
other uses (i.e., idle land, wasteland, buildings).2

There are many factors which could be used to

analyze the nature, distribution and expansion of cattle

 

1
Republica de Honduras, Direccién General de

Estadistica y Censos, Honduras en cifras, 1964 (Tegucigalpa,
D.C.: Secretaria de Economia y Hacienda, December, 1965),
p. 13; Anuario estadistico, 1966 (Tegucigalpa, D.C.:
Secretaria de Economia y Hacienda, April, 1968), p. 195;
Segundo censos nacional agropecuario, 1965-1966, p. 66.

 

 

 

2Honduras en cifras, 1964, p. 110; the manzana
(1.73 acres) is the official agricultural land unit in
Honduras and is therefore used throughout the remainder of
the study.

65

66

raising in Honduras. Variations in the cattle population,
pasture land, cattle-pasture ratio, ranch size, types of
land ownership and their interrelationships are used in
this study. The growth of cattle ranching between 1952
and 1965, the agricultural census years, is reflected in
the Spatial analysis of land use, ownership, and scale of
operation. These characteristics are used to portray not
only the heritage of the past but also present changes

rapidly altering the nature of beef production in Honduras.

Relative Importance of Beef Cattle

 

Beef cattle are rapidly becoming a significant item
in the Honduran agricultural sector. In 1953 beef and beef
cattle represented only 1.6 percent of the total value of
exports and a decade later contributed about 5 percent.
Today these items maintain the same proportion of exports
while holding a strong fourth ranking behind only bananas,
coffee and wood products.3 In Central America, meat is
generally fourth—ranked behind coffee, bananas, and

cotton.4

 

Segundo censos nacional agropecuario, 1965-1966,
p. 66.

._4"Central America," gank of London and South America
Review, V01. XXXXV, No. 4 (September, 1970), 499.

67

The composition and growth in number of farming units

is reflective of the importance of cattle raising.

The

total number of farms increased by 14 percent between 1952

and 1965, and the number of ranches increased by 4 percent.

More significant, both the total area in farms and in cr0ps

about doubled during the intercensal period, while the

area in pasture almost tripled (Table

Table l

1).

FARMING UNITS AND AGRICULTURAL LAND IN HONDURAS:

PERCENTAGE CHANGE BETWEEN 1952 and 1965

(in manzanas)

 

 

Farm Units and Area 1952

1965

 

%Change

Total no. farming units 156,135 178,350 +14.2
no. of ranches 78,952 82,133 +4.0

no. of farms 77,183 96,217 +24.7

Total area in farms 1,755,183mz. 3,461,528mz. +97.2
crops 329,745mz. 761,935mz. +131.0
pasture 575,793mz. 1,617,618mz. +181.0
mountains & forest 509,156mz. 658,475mz. +29.3

idle 297,337mz. 321,777mz. +8.2
101,723mz. +1.4

other 43,152mz.

fir

Source: Repfiblica de Honduras, Direccién General de

“Estadistico y Censos, Primer censo agropecuario,

 

1952, pp. 38-39,.66¢.Segundo censos nacional

agropecuario, 1965-1966, pp. 66, 163.

68

The cattle industry has experienced a remarkable
expansion during the past twenty years. Although the period
between 1952 and 1965 was one of heavy slaughter for export,
cattle numbers increased from 1.1 to 1.3 million.5 A recent
report estimates the current cattle population to be 1.6
million head. Fresh beef exports from Honduras grew in a
similar manner. In 1958 Honduras exported 589,000 pounds
of frozen boneless beef. By 1968 this figure‘increased to
20.3 million pounds and by 1971 to 48 million pounds. In
the latter year 206,626 head were slaughtered, a number
equivalent to the total increase in herd size between 1952

and 1965.6

Location of Production

 

A question arises concerning the location of the
newly-Spirited production. Are these increases
representative of the entire industry or are they spatially
concentrated? It has been pointed outithat cattle raising
has, historically, been focused in the lowlands and valleys

of Honduras. If this is so today, it could be assumed that

 

5

Primer censo agrOQecuario, 1952, p. 63; Segundo
censos nacional agropecuario, p. 163.

 

6

United States, Department of State, Summary and
OutlookL_Unclassified Report of the Agricultural Attaché,
U.S. EmbasSy (Tegucigalpa, D.C., September 27, 1971),
pp. 2-5.

 

 

69

a rapid expansion of the industry has occurred in these
areas. If not, which areas have become prominent beef
cattle producers, and why?

A comparison of the cattle distributions in 1952
and 1965 reveals several noteworthy items for analysis
(Figures l3, 14). In 1952, prior to the era of exporta-
tion, the pattern depicts the historical arrangement of
production, primarily in the highland interior departments
of Olancho, Francisco Morazan and Comayagua. However, in
1965 substantial increases are illustrated in the depart-
ments of Santa Barbara, Cortes, and Yoro. Even the two
coastal departments of Atlantida and Colén had substantial
increases. An appraisal of the percentage change in cattle
numbers, by municipio, is more revealing (Figure 15).
Generally, sizeable increases in cattle numbers were
recorded in the northern departments and in small areas of
concentrated production elsewhere (i.e., Zamorano and
Comayagua east and northwest of Tegucigalpa, respectively).
Most of the cattle herds of the highland interior decreased
or increased only slightly in size between 1952 and 1965.

Another way to determine the specific area of
increased production is through an analysis of the locational

changes in the amount of pasture. Assuming that any

increase in the cattle p0pu1ation is related to an increase

70

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73

in the quantity rather than the quality of forage, one
could expect to find a high degree of correspondence in
those areas where substantial increases in the cattle
population occurred between 1952 and 1965. This is
generally true except in those areas which appear to be
increasing production through improvement in management
techniques, as in portions of Santa Barbara, Cortes, and
Choluteca departments (Figures 16 and 17). The areal
distinctions between cultivated and natural pasture also
substantiate the fact that the same areas, on the average,
contain more land devoted to cultivated pasture varieties
and therefore reflect a greater reSponsiveness to the
adoption of improved management practices (Figures 18 and 19).
I A combination of cattle numbers and ranch area in
pasture is an effective measure of intensity within the
industry. Assuming that a high cattle-pasture ratio is
indicative of leadership within the industry, one could
locate the areas which are becoming more intensified and
very likely concerned with high quality breeding and feeding.
The spatial distribution of cattle-pasture ratios for 1952
and 1965 again reflects the growing importance of the north
coast and several small areas of concentrated production

(Figures 20 and 21). The low ratios reflect those areas

 

74

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(Head/Manzana)

RATIO 1965

>20

HONDURAS
CATTLE-PASTURE

lD-l9
75-99

 

Source : Dlvocclél Gnnoul d. Ellldrlllcl y Con no:

Caribbean Sea

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1'

Pacif

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in:

89°

 

 

1965

Cattle-Pasture Ratio,

Honduras

Figure 21

80

which are well below the national average, including many

of the central and western departments.

Scale of Operation

 

Ranch size, in cattle numbers and area, is one of
the most important variables in cattle production. In 1965
more than 40 percent of the cattle herd was owned by only
4 percent of the ranchers. This small group of ranchers
operated ranches of at least 100 manzanas each. Thus, a
group of about 4,000 ranchers raised over 500,000 head, or
an average of around 150 head per ranch. In contrast, the
remainder of the ranchers averaged about ten head per
ranch (Table 2).

Unfortunately, there are no published sources giving
the area contained within each of the ranch-size categories.
However, a 100 percent sample of all ranches 100 manzanas
or larger was compiled from census questionnaires. This
sample contains detailed land use, ownership and cattle
7

population data on each of the 4,113 ranches in the group.

A spatial analysis of the "ranch sample" is used to portray

 

The sample, hereafter referred to as the "ranch
sample," originally contained 4,113 ranchers in all 278
municipios, but due to incomplete or inaccurate data has
been adjusted to 4,063 ranches in 247 municipios (see
Figure 22).

81

 

 

 

 

 

 

 

 

 

Table 2
HONDURAS: RANCH SlZE, RANCHES AND CATTLE POPULATION, 1965
Size ::=:i Ranches =:fiCattle Average No. Head
Small Scale
0- .9mz. 4,838 18,659 3.86
l-l.9mz. 6,856 28,843 4.21
2—2.9mz. 6,059 28,655 4.73
3-4.9mz. 5,700 29,832 5.23
5-9.9mz. 18,229 113,426 . 0.16
lO-l9mz. 17,060 153,465 9.00
20-49mz. 14,731 223,455 15.17
50-99mz. 5,268 161,352 30.63
Sub-total 78,741 757,687 9.62
Large Scale
100-199mz. 2,108 133,793 63.47
200-499mz. 1,125 161,149 143.24
500-999mz. 327 97,341 297.68
l,000-2,499mz. 162 96,273 594.28
2,500-or more mz. 57 69,382 1,217.23
Sub-total 3,779 557,938 147.64
Total 82,520 1,315,625 15.94
Source: Repfiblica de Honduras, Direccion General de

Estadistica y Censos, Nfimero y superficie de las

fincas_por departmento y municipio, 1965-1966
(Tegucigalpa, 1968), p. 3. '

 

 

82

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83
the importance of land use, ranch size and ownership in
the large-scale segment of the industry and determine
whether or not this segment is the major contributor to
recent growth.

Most writers contend that the most economical size
of ranch is somewhere between 100 and 300 manzanas.8 One
author states that in Honduras

. . . the average size of cattle ranches
has shown a tendency to increase in recent
years with increased interest in the livestock
industry. The very small size and subsistence
nature of a high percentage of the farms
holding cattle makes progress difficult and
slow.9
Assuming that an increase in beef production is the goal,
and this is a policy decision, the larger ranch unit is

more efficient in terms of economies of scale and modern

breeding and feeding practices.10

 

8Jorge deAlba, "Animal Production-~The Road from
Dreamy Potential to Hard Reality," Rural Development in
Tropical Latin America, eds. Kenneth L. Turk and Loy V.
Crowder (Ithaca, New York: Cornell University, 1967),
p. 364.

 

 

9
The Beef Cattle Industries . . . , p. 7.

10United States, Department of Agriculture, Economic
Research Service, The Latin American Farmer, Report No. 257
(Washington, August, 1969), pp. 61-66.

 

84

The distribution of ranch size within the ranch
sample emphasizes the relationship of size and beef
production (Figure 23). Many of the larger properties are
found neither in the colonial production areas, such as !
Olancho and Comayagua, nor in the newer zones of the north

coast. Rather, they are concentrated in central Honduras

in an extensive area north of Tegucigalpa. Many large
ranches such as these operate in marginal forest land, where
they require more area to feed a smaller number of cattle.
Also noteworthy are the relatively smaller-sized ranch units
in the western and other highlands. It is significant, as
well, that the areas defined as major cattle producers
along the north coast are not of the largest average size.
This is probably due to the fact that intensification of
the cattle operations there has decreased the need for
massive land accumulation.

Average cattle numbers on ranches of 100 manzanas
or larger are very definitive criteria for outlining the
major producing municipios. The average number of cattle
per ranch within the sample is 122. The Choluteca lowland,
Comayagua, Catacamas, San Esteban-Trujillo, Santa Barbara-
Cortés and Copan are the leading producers, as disclosed

by mean number of head (Figure 24).

85

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87

Large—scale livestock operations include only a
minute quantity of land devoted to crops. There is very
little "mixed—farming" or "crop-livestock" farming in
Honduras. Crops are usually grown for local sustenance
and rarely are fed to the animals. In general, the large
ranchers maintain this pattern although there are a few
exceptions which reflect the growing of crops for market
(Figure 25). The animals are fed grass almost exclusively,
with the result that pasture is the primary land use on
the large ranch. However, there are vast differences in
the forage quality, and these vary spatially. The
larger ranches, in general, have more of their pasture
area.devoted to improved grass varieties than to natural

grasses (see Figures 18 and 19, pp. 76 and 77).

Land Tenure

Land ownership is a critical topic in any agricultural
setting. In 1952, about 46 percent of Honduran agricultural
land was privately owned, one-quarter belonged to the
communities (ejidos), and the remainder was divided among
various other forms. By 1965, 58 percent was considered
privately-owned, 20 percent ejido, 13 percent nationally-

14

owned and the remainder in mixed forms. The rapid rise

 

l4Primer censo agropecuario, 1954, p. 31; Segundo
censos nacional agropecuario, 1965—1966, p. 27.

 

 

88

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89

in the contracting of national lands came with the creation
of the Instituto Nacional Agrario (I.N.A.) in 1962. I.N.A.
is the official organ of agrarian reform in Honduras.15

Land tenure in the cattle industry of Honduras is an
extremely volatile topic of discussion. Since the
establishment of I.N.A., many large landowners have lost
their lands to the government through the expropriation
right given to I.N.A. by the Agrarian Reform Law of 1962.
Since that time, however, an "artificial" interest in
cattle raising has occurred in many areas. That is to say,
the government has forced each landowner to "utilize" or
improve his land lest it be expropriated. The easiest way
to "utilize" vast pieces of property is to raise a few
hundred cattle on the land. Hence, the government has
complicated the task of the agricultural extensionist who
is working to alleviate some of the more traditional
methods of raising livestock.

Privately-owned land is concentrated in the major
areas of cattle production and in those areas where large-
scale operations predominate (Figure 26). The western and

central highlands stand out as areas with the least private

 

lSRepfiblica de Honduras, Ley de reforma agraria,
Decreto No. 2 (Tegucigalpa, D.C., 1962).

 

 

 

90

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91
ownership, but, as is the case for the country generally,
most of the land is under private ownership.

The largest share of ejido lands in Honduras is
found in the western highlands. Lempira, Intibucé, La Paz
and Comayagua have 58, 57, 48 and 38 percent of their total
areas in ejido properties, respectively.16 These lands were
given to early Indian villages in this part of the country.
Much later, ejido lands were assigned to additional
villages. Figure 27 illustrates the distribution of ejido,
or communally-owned, lands.

National lands, or segments of the public domain, are
usually associated with the least desirable, unoccupied
portions of a country. For example, 87 percent of Gracias
a Dios, the easternmost department, is classified as national
land. Large segments are also found in the departments of
Colofi, Atlantida and Olancho.l7 National lands can be
rented or leased for pasturing and therefore become part
of large—scale cattle operations (Figure 28). However,
this is not the usual pattern. A large share of the occupied
national land is settled by parasitos, or "squatters," who

make no payment to the government.

 

16
Segundo censos nacional agropecuario, 1965-1966,

 

p. 39.

17Ibid.

 

92

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93

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94

Conclusions

The spatial complexities of several aspects of beef
production reveal certain fundamental interrelationships:
(1) large ranch units are spatially similar to privately-
owned lands, (2) large ranch units correspond in area to
large cattle populations, (3) large cattle populations are
similarly located with high concentrations of private
ownership, and (4) proportionally large quantities of
pasture are associated with modern large-scale, intensified
beef cattle operations. The interrelationship of these
features has areally defined the major cattle-producing
areas as: (l) the Choluteca lowland, (2) the Catacamas-
San Esteban-Trujillo corridor, (3) the Santa Barbara

lowland and (4) the Caribbean coastal plain.

 

 

CHAPTER V

RANCH MANAGEMENT

It has been illustrated that several major areas of
cattle production have maintained their spatial dominance
through time. More important, the entire industry has
preserved its traditional methods of operation. This is
partially a reflection of the former emphasis within the
industry. In the past, ranchers could graze enormous
herds on vast territories and reap the benefits of personal
prestige and sizeable profits. Cattle buyers facilitated
the operation by coming to the ranch, making head or herd
purchases, and driving the cattle to local or neighboring
Guatemalan or Salvadoran markets. Animal age, sex or
quality (e.g. disease, structure) was not a significant
concern of the rancher, for he knew he could sell the
animals.

Today the situation is changed. A progressively
structured price system, based upon exact animal weights,
has been created with the new emphasis upon frozen meat
export. This system discriminates as to age, sex and

quality, offering relatively high prices per pound for

95

96
heavier, good quality steers. In addition. live animal
exports have been substantially diminished under the new
export quota system. In 1964, some 44,000 animals were
exported, but in the same year further trade of this nature
was prohibited by law.

Most of the cattle industry maintains its traditional
cast. However, a few ranchers have begun to adopt practices
which will meet the demands of the new export plants. In
order to respond to the price incentives of the industry
some cattlemen have become concerned with pasture improve-
ment, herd betterment and disease and pest control. Current
information regarding livestock management has been available
throughout this century, but ranchers have had little
incentive to change, even if they did have the financial
resources.

The availability of investment funds is a basic
factor in the decision to change one's mode of operation.

In the past simple economies of scale prevented the smaller
producer from adopting more efficient techniques. It was
only the large-scale operator who could bear the costs of

long-term investment or obtain credit. Government policy

 

l I ,
The Beef Export Trade of Central America, p. 11.

 

97
to increase beef production has now opened the channels for

investments in the livestock industry.

Management and Efficiency of Production

 

As a result of the decision to increase production,
the cattle industry was faced with a process of self
appraisal. If efficiency can be generally defined as the
most productive use of resources, the Honduran cattle
industry must examine the nature of its producing units.
Although productivity figures for the industry are almost
nonexistent, there are several good criteria which reflect
the current status of the beef cattle industry in relation
to other major world producers. These are: (l) carcass
weight of meat per animal slaughtered, (2) slaughtering
rate (number of animals slaughtered as a percentage of the
total cattle inventory), (3) fattening rate (time required
to achieve slaughter weight), and (4) reproduction rate
(the proportion of calves born, less the mortality of calves
up to one year of age, per dam per year).

The carcass weight of meat is a good measure of the
degree to which the animal is converting plant matter into
meat. For Latin America as a whole this figure averages

between 375 and 395 pounds, while in the United States

 

Grunwald and Musgrove, p. 411.

98

and Western Europe the average is between 570 and 615
pounds per animal.3 In Honduras, on the other hand, the
carcass weight average is about 287 pounds.4 These
averages account for about 50 percent of the live animal
weight in Latin America, 60 percent in the United States
and Western Europe, and 47 percent in Honduras.5

The slaughtering rate is also an indicator of the
productivity of the cattle herd. All animals exported
or slaughtered within a given year are calculated as a
percentage of the total herd. Rates for Latin America
are generally below 15 percent (except in the case of
Argentina, which slaughters 25 percent) and for the United
States about 40 percent. The higher rates of slaughter
are possible only where animals are fattened rapidly.
In general, Latin American countries average between four
and five years for bringing an animal to market weight.
The United States averages from one and one-half to two

and one-half years. Honduras slaughters around 12 percent

of the herd annually and these animals average 4.5 years of

 

3Ibid.

 

4Diagnéstico de la ganaderia en Honduras, pp. 72-74.

5Grunwald and Musgrove, p. 411; Diagnostico de la
ganaderia en Honduras, pp. 65-74. -

 

 

 

99

age. Between 1950 and 1963 an average rate of only 8.4
percent was recorded, the lowest in all of Central America
(see Table 3).6

Average cattle reproduction rates are important for
they reflect the ability of the herd to maintain a steady
supply of young animals. These rates for the United
States, Argentina, Uruguay and Brazil are 85, 65, 60 and
50 percent, respectively. Honduras, on the other hand,
has a reproduction rate of 45 percent.7

Some researchers feel the best overall indicator
of the level of yields is meat production per animal, or
the total weight of production divided by the total number
in the herd. This factor combines the carcass weight and
the slaughtering rate. For all of Latin America this
averages about sixty-five pounds. The United States,
Argentina, Australia and New Zealand reported factors of
150, 110 and 88 pounds per animal, respectively, in the

1960's.8 During the same period in Honduras, the

 

GIbid.
7

 

Ibid.

 

8Grunwald and Musgrove, p. 422.

100

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101

production-inventory factor, which averaged about 22 pounds,
remained relatively unchanged.9

It is apparent that the Honduran beef cattle industry
is not producing meat efficiently, and this is due primarily
to the management practices currently used. It has been
proved throughout the country, through various production
schemes, that marketable animals (1,000 pounds) can be
produced within two to three years. The problem lies not
with the physical resource base but with the individual
operator. The decision-making processes on the farm are
those which will implement change within the industry.
It is therefore necessary to consider the ranch and rancher
of Honduras to determine the basic problems. Breeding and

feeding practices represent one problem area for analysis.

Cattle Breeding10

 

In 1965, Honduras contained mostly criollo cattle.

These are animals which have been adapted to the local

 

9Summary and Outlook, p. 2. In 1963 the cattle-
inventory factor for Honduras was 23.0 pounds
(.47 x 76,106,000 = 35,769,000 9 1,550,000 = 23.0), while
in 1970 this factor was only 21.2 pounds (see Table 3,
page 100).

10Information for this section was obtained from
531 ranchers or employees interviewed in all portions of
Honduras from September, 1969, to August, 1970. The sample
is unstratified in that it includes information from all
sizes and types of operations.

 

102
environment through a slow process of culling and selection.
They are descended from the initial cattle imported by the
Spaniards some four centuries ago. The cattle herd in 1965
was comprised of 95 percent criollos and only 5 percent
pure or mixed-blooded animals. The criollos are generally
" . . . of small size, light weight, slow maturity, and low
productivity. The steers generally require four to five
years to reach an average slaughter weight of 700 pounds."
With productive characteristics such as these it can be seen
that the continued use of criollos will contribute little
to increased production. Why is it that despite increased
production incentives the ranchers continue to raise
predominantly criollos?

To comprehend the magnitude of this question, one
must understand the nature of the ranching population.
About 95 percent of the ranchers raise approximately
60 percent of the cattle, on ranches which range in size
from the smallest to 100 manzanas (see Table 2, page 81).
This group of individuals raises livestock with several
purposes in mind, namely milk, meat and draft. The adapted

criollo animals possess attributes in each category.

 

ll ‘ . .
The Beef Cattle Industries . . . , p. l.

103
However, due to the need to increase beef production,
emphasis has been placed on crossing Brahman bulls with
native cows. This has resulted in notable weight gains,
the major concern of the beef cattle industry.12 However,
the female offspring of the cross are poorer milk producers
than their mothers. The Brahman has been selectively bred
for its tropical adaptability and beef-producing, not
milk-producing, qualities. Therefore, ranchers concerned
with milk production are readily alerted to this disadvan-
tage and are reluctant to change their present mode of
operation. Emphasis on dual-purpose crosses with such
breeds as the Brown Swiss and Red Poll would satisfy both
the national need for an increased beef supply and local
preferences for dairy animals.

The criollo herd predominates for reasons such as
ease of management, lack of financial or technical
resources, and personal preference. The criollo animal is
a self-sufficing browser. Little maintenance is needed,
since the animals will seek_feed for themselves. This
is especially preferred by those ranchers who have extensive

or distant pastures.

 

12de Alba, p. 362.

104

The cost of introducing new breeds is prohibitive
to ranchers with limited personal resources or credit.

New purebred bulls range in price from $275 to $1,000 or
more. In addition, most of the improved breeds are known
to be more productive on grasses other than natural pasture.
So, the rancher is immediately faced with new pasture costs
such as fencing, seeding and cutting. One study reveals
that the average cost of maintaining five animals on one
manzana for one year is $746.13 Multiplying this cost by
the number of cattle for even a modest-sized operation
reveals the magnitude of investment required. However,
lending agencies have increasingly favored livestock
inveStment in recent years.

The availability of sound technical assistance is
essential. If a rancher commitshis resources to herd
improvement and encounters disease, pest or forage problems,
he expects first-rate assistance from the government.
However, the availability of such assistance was not
reported by many ranchers in Honduras. Rather, they felt
they were either ill—advised or were sold an inferior
product and have withdrawn from the breed improvement

program.

 

13Ibid., p. 358.

105

Personal preference for one breed, such as the
criollo, is well established in Honduras. In many cases
families have raised one breed and developed a traditional
reliance upon or attachment to that breed, no matter what
its productive capabilities. One rancher, having a
predominantly criollo herd, for example, said he would raise
only white animals because they are "pure." He proceeded
through time to cull all those animals having the typical
speckled coloring. It is indeed a difficult task to "sell"
these persons on the assets of a new breeding program for
they must be able to "see" the results. This again points
to the importance of the "change agent" approach for the
dissemination or diffusion of agricultural ideas.14

A small fraction of the Honduran cattle herd is
composed of pure or mixed-breed animals. The purebreds,
in order of their numbers are as follows: Brahman, Santa

Gertrudis, Charlois, Red Poll, Brown Swiss, Hereford, and

several dairy breeds. Mixing within these breeds, or with

14This process involves the identification of
agricultural leaders who are chosen as showcase representa-
tives and asked to exhibit current innovations with the
prospects of transmitting this information to the entire
agricultural area. For a good case study see: James Nielson,
The.Change Agent and the Process of Change, Research
Bulletin No. 17 (East Lansing, Michigan: Michigan State
University, Agricultural Experiment Station, 1967).

 

106
criollo animals is not an uncommon practice. The most
popular mixture is the Brahman-criollo combination. It is
easy to identify the extent of Brahman influence in a herd
by simply noting the "humped profile" of the entire group
of animals.

Most of the pure and mixed-blooded animals are found
in the northern and southern portions of Honduras where
the largest cattle operations are located (see Figure 16,
page 74). It is believed that this occurrence is directly
related, again, to the ability of the larger operator to
become financially involved in improved management.
However, it was observed that many of these Operations were
"artificially" improved for a variety of reasons. Some
large ranchers have recently purchased or have maintained
sizeable herds of improved cattle for purposes such as
prestige, resale, land occupance or squatter settlement
deterrence. In each of these cases there is consequently
little concern for herd improvement per se.

The Brahman in its purebred or mixed form is the
predominant improved breed of Honduras. This is primarily
because it is readily adapted to the local environment.
Other assets include faster liveweight gain, greater
fertility, greatercalf weights, higher calving percentage,

good conformation, disease resistance, and good temperature

107
maintenance. Santa Gertrudis have many of these qualities
but suffer frequent damage to the penis due to the low
slung structure of the animal and contact with thorny
vegetation. The basic problem with the Charolois and other
European breeds is their eye pigmentation disorders or
tick infestation. These qualities make them less adaptable
in tropical regions and, therefore, if chosen, require

closer attention.

Cattle Feeding

Some researchers believe that a good breeding program
must be concommitant with a good feeding program. The
contrary is illustrated by studies in Puerto Rico, where
it was found that young bulls (from seven to twelve months
old) could be fattened to 1,000 pounds in a year on good
pasture.15 Whatever the case may be in a local situation,
good forage is Vital to increased beef production.

Honduras is roughly divided, again, between the vast
majority of the ranchers who grow primarily native pasture,

called "knife grass" locally, and those who use improved

 

15 . .
L. Rivera Brenes and J. I. Cabrera, Comparacion

de toretes Charbray, Brangus, Brahman (Cebfi) y comun en
pruebas de ceba con yerba Pangola - segundo grupg,

Boletin 195 de Estaciofi Experimental Agricola (Rio Piedras,
Puerto Rico: Universidad de Puerto Rico, August, 1965).

 

108

pasture grasses. However, there has been more acceptance
of the improved grasses than is true of improved breeds.
In general, those ranches with the greatest prOportion of
land devoted to improved pasture are found in municipios
also characterized by large-scale ranching units (see
Figure 18, page 76 and Figure 23, page 85).

The choice of an improved grass is dependent upon
local environmental conditions. The grass chosen should
have the following qualities: (1) ease of establishment,
(2) harmony with soil and climatic conditions, (3) steady
production throughout the year, (4) uniform year—round
feed value, and (5) ability to crowd out undesirable
species.16 It is very difficult to find a grass which
meets all these criteria, so some compromise is usually
necessary.

In Honduras the most common improved grasses are

Jaragua (Hyparrhenia rufa), Pangola (Digitaria decumbens),

 

Guinea (Panicum maximum), Bahia(Paspalum notatum), Molasses

 

 

(Melinis minutiflora) and Para (Brachiaria mutica).

 

Pangola, Guinea and Para grasses are especially suited to

the north coast. Unfortunately, these grasses decrease

 

16Gordon Wrigley, Tropical Agriculture: The Develop-
ment of Production (New York: Praeger, 1969), p. 285.

109

rapidly in nutritive value over time. This implies a well-
planned pasture sequence and more intensive labor inputs.
On many of the ranches observed it was quite evident that
the improved pastures were poorly managed. Overgrazing,
overmaturation and weed encroachment were common features.

In southern Honduras, Jaragua and Bermuda are
preferred for their ability to withstand aridity for
extended periods. Beyond the time when the grasses lose
their effectiveness due to drought conditions, usually
around early January, ranchers must seek forage alternatives.
This is done in various ways, including the sale of all
sizeable cattle at the end of the rainy season, construction
of subterranean silos for the storage of fodder, the grazing
of animals at will on mast and other browse, and the move:
ment of herds and helpers (transhumance) to wet lowland
areas along the coast or river valleys. In every dry
season the number of cattle that die from starvation is
directly related to the ability of the ranchers to follow
one or several of these alternatives.

Under proper care each of the grasses will maintain
a given number of cattle per unit. The natural pasture of
Honduras is believed to have a "carrying capacity" of one
head to three manzanas, whereas improved grasses will

support up to six animals per manzana. Spatially, those

110
municipios having the largest proportion of improved
pasture (Figure 18, page 76), and the average number of head
per manzana in each of the municipios (Figure 21, page 79),
have been defined. A low cattle-pasture ratio within a
given municipio is indicative of improper pasture management

or underutilization.

Modern Versus Traditional Ranchers

There is a vast difference between the modern and the
traditional cattleman in Honduras. Four basic types of
individuals can be recognized in the managerial phase of
lthe industry, based upon their association with modern or
traditional techniques and with large or small scale
endeavors. These are as follows: (1) the "traditional-
traditionalist," applying primitive techniques on a small
parcel of land, (2) the "modern-traditionalist," applying
modern techniques on a small to medium-sized ranch, (3)
the "traditional-modernist," unable or unwilling to accept
current managerial practices, but possessing extensive
property, and (4) the "modern-modernist," using current
methods on a large-scale enterprise.

In conclusion, the beef cattle production techniques
employed in Honduras can be classified as generally

primitive. The rancher of limited financial resources is

lll
trapped by his current status andsize of operation.
Preferential treatment is offered to the individual who
already enjoys numerous advantages for cattle production.
However, at present even he is not reaping the benefits of
the market, primarily because of an inability or reluctance

to apply previously-proven beef production techniques.

 

CHAPTER VI

TRANSPORTATION, PROCESSING AND MARKETING

The transportation, processing and marketing phases
of the beef cattle industry have undergone substantial
changes since the beginning of the era of frozen meat
exportation in the early 1960's. In compliance with
the new price structure based upon weight, rather than
individual head or herd appraisals, the Honduran industry
has changed its basic method of animal transport. Prior
to this period animals were sold to cattle buyers who
drove the animals, on the hoof or by truck (when and where
the road permitted), to the various ports or neighboring
nations. Today, the motor truck is the primary method of
shipment and delivers directly to one of the five major
(export packing facilities. Now, the key to effective
marketing is the accessibility of "motorable" roads from
theproducing areas. The road network is especially
important in reducing weight losses formerly suffered by
animals in transit over long distances on the hoof.

Processing has also been radically affected. For

the export of beef to the rapidly growing market in the

112

 

113
United States, special slaughter facilities were constructed
which would meet the inspection standards required of all

meat suppliers. The five units in Honduras offer vivid

contrasts to the numerous municipal slaughter facilities
elsewhere in the nation and have provided a focus for beef
production in the country. The new plants are rigidly
governed by a United States meat inspector who is
responsible for veterinary inspection, overall sanitation
and refrigeration. Plant slaughtering capacity has been
enormously expanded so as to extend the marketing period
throughout the year in most areas. Municipal slaughter
facilities, on the other hand, are generally primitive,
unsanitary and irregular in their practices of accepting
or scheduling animals for slaughter.

The new emphasis upon frozen meat exportation has
necessitated an entirely new marketing arrangement for the
final product. Formerly, trucks and ships delivered live
animals to their final destinations. Now, only ships and
planes with refrigeration capabilities can deliver the
final product. Thus, the location of each of the export
plants in Honduras plays an important role in the eventual
cost of exporting meat to the United States.

Probably the most visible change within the industry

has been the proportion of annual production which is

114
exported. With all phases of the industry gearing toward
increased beef export, the availability of beef for domestic
consumption has lessened. Higher beef prices have
consequently been created in Honduras. This has initiated
a decrease in the per capita consumption of beef, a condition
greatly intensified by the rapid annual population growth.

The foreign and domestic government policies
regulating the entire system are the most volatile aspects
of the marketing situation and are subject to change upon
decree. Dependence of the industry solely upon United
States beef import quotas can be dangerous. The design of
the industry is to rapidly increase production so as to
benefit fully from the current United States "open door"
policy for beef imports. Immediate imposition of import
restraints, a part of the quota legislation, could
terminate all beef exports from Honduras and create a
glutted market there.

Honduran government decisions also profoundly affect
the viability of the industry. This is readily apparent
when it is recognized that all decisions regulating the
local cattle situation, such as those pertaining to trade,
transportation and finance, are administered by the

government. Fortunately, the central government has been

extremely helpful to date in the coordination and expansion

115

of beef production and marketing, a situation which does
not prevail in all other Latin American nations. For
example, in Uruguay and Argentina government officials are
continually plagued by the problem of balancing foreign
and domestic supplies, while in Costa Rica the government
stringently limits exports through a controversial quota

system.1

Transportation and Marketing of Cattle

The surface transportation network of Honduras is
as diverse as the terrain. There are three major arteries
which are completely paved: (l) the north-south trending
Interoceanic Highway connecting Puerto Cortés, San Pedro
Sula, and Tegucigalpa with the south coast highway; (2)
. the oldest major paved east-west-segment in Honduras, the
Inter-American Highway, which passes through Choluteca on
the south coast; and (3) the recently Opened east-west

highway from the Guatemalan border to La Ceiba via

 

l"Uruguayans End Last Fast," Times of the Americas
(Washington, D.C.), November 29, 1972, p. 3; Penny
Lernoux, "Beef-Hungry Argentinians Threaten Export Profits,"
Miami Herald, April 28, 1971, p. l-BW; Repfiblica de Costa
Rica, Consejo Nacional de Produccion, Departamento de
Investigaciones, Economicas y Planificacion. Ganado vacuno:
Informaci6n_para la fijiacion de la cuota exportable
periodo 1968-1969 (San José, July, 1968), pp. 5-6.

 

 

116
San Pedro Sula (see Figure 29). From these thoroughfares
other "all weather“ links provide access to Santa Barbara,
Catacamas and Danli, all important cattle producing centers.
Aside from these basic links, only short secondary roads
or lesser-quality, seasonally-passable roads or trails are
available for marketing.

The paucity of farm-to-market roads, or their
seasonal nature, in the more remote areas of Honduras is a
serious handicap to cattle production and marketing. It
is granted that cattle are more mobile and easier to market
than items such as grains. Nevertheless, weight losses
ranging fromS to 25 percent occur on journeys of varying
length through the rugged Honduran countryside. Even
truck transportation cannot eliminate the weight losses but

has been effective in reducing them to around 5 percent of

live weight.2

The cattle which finally reach the export
packing plants, therefore, generally originate in areas
immediately adjacent to, or having ready access to, the
major road netWork. In the road-deficient areas of the

western, central and eastern highlands animals are marketed

locally.

 

2Interview with José Fernandez, Plant Manager,
Empacadora Alus, S.A., San Pedro Sula, November 14, 1969.

 

 

 

 

 

117

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118

A matter of great concern to truck drivers, who
are accustomed to poor road surfaces, is the condition of
the bridges. Arteries are completely severed for days,
and sometimes weeks, due to the collapse of bridges.
A possibility of this occurring where there are bridged
thoroughfares is not remote. For example, along the "old"
highway from San Pedro Sula to Tela there are fifty-six
wooden bridges in various states of repair, an average of
one per mile. Maintenance of bridges over the numerous
surface streams, which during one rainy season are capable
of destroying innumerable crossings, is an unending task
and underscores the problems of constructing new or
reconstructing old farm-to-market roads in high rainfall
areas.

In general, animals delivered on the hoof to export
plants have covered greater distances in their journeys
than those delivered to municipal facilities. Drovers lead
the animals to the export plants, despite the greater weight
and animal losses, because of higher prices, larger slaughter
capacities and regular slaughter schedules. One man pointed
out very simply that the Interamerican Highway into
Choluteca makes it easier to drive his animals because the

fences along the thoroughfare prevent them from straying.

119
Sample interviews obtained from herdsmen delivering cattle
on the hoof to various export plants reveal that cattle are
driven as far as forty miles. The greater distances are
generally recorded for the Trujillo and Catacamas plants,
in an area where other transportation and slaughter
facilities are limited. Overall, most of the walking
traffic comes from the immediate hinterlands of the export
plants (see Figure 30).

In the municipal areas animals generally come on the
hoof from the immediate vicinity and by the head, not by
the herd. Local residents usually "make appointments" to
have their animal or animals slaughtered so that they can
be assured that it will be done that given day. The
movement of animals to municipal abattoirs is also regulated
by the particular day of slaughter. Each of the smaller
facilities usually slaughters on a given market day. Thus,
in the procession to market one can always observe animals
headed to town, usually accompanied by the woman or children
of the household. In other words, the people walk to town
along with the animal, which they will carry home in a
somewhat different form. This marketing regimen generally
establishes a twelve to twenty-four hour walking distance

(or approximately the same number of miles) as the primary

120

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121

supply area for the local meat market. Those individuals
not having access to one of the many small slaughter houses
must, of course, travel greater distances and require more
time to make the journey with their animals.

Truck transportation is the primary mode of delivery
to the export packing plants. Transportation charges range
from five to twelve Lempiras per head, depending upon
distance.3 The large cattle trucks carry from fifteen to
twenty animals tightly wedged. Interviews with arriving
truckers reveal that they are usually hired by the rancher,
who is present to oversee the entire transaction.

In Honduras there are several other ways to sell
cattle besides taking them directly to market. Cattle
buyers, carryovers from the earlier era of live animal
export, still act as middlemen between the rancher and the
market. However, they have been forced to change their
method of operation. They usually have their own trucks
and have been forced by the new price structure to become
very familiar with cattle weight appraisals. Formerly, the
buyers made general herd appraisals and presented the rancher

with an offer based on the general condition and size of the

 

3One Lempira (L) equals U.S. $0.50.

122

herd. Now, the weight of each animal must be precisely
evaluated and recorded. In most cases this transaction
occurs without the use of scales, which is a test of each
man's knowledge or experience concerning animal weights
and values. Both parties try to better each other in the
deal. Only the buyer realizes who benefitted most when he
arrives at the export plant to weigh the animals.

Another variant of the marketing procedure is the
purchase of younger, thinner animals by the packing house
buyer. The basic difference lies'in the eventual transfer
of these animals not to the slaughterhouse, but to ranches
owned and managed by the packing plant for purposes of
final fattening or "finishing." Ranchers in financial need
or unable to fatten a number of animals due to pasture
shortage, for example, will sell their younger or thinner
animals (100 to 500 pounds) at extremely low prices.

After fattening the animals to their maximum weights,
usually from BOO-1,000 pounds, the buyers will market them
and reap profits which are substantial in the higher weight
categories of the price structure. Every export packing
facility in Honduras is engaged in this lucrative, intensive
fattening procedure.

The crux of the marketing'system is the price

structure. Since the beginning of the era of exports,

123

prices at the export plants have risen substantially.
One rancher in the Trujillo area reported that anyone could
buy a full-grown cow in 1950 for fifteen Lempiras.4 It is
no wonder that others report that "the Honduran cattleman
is a poor cattleman," and that "he is tight" because he
has had a hard time making money in the past fifty years.5
Even after the new plants went into operation, it was
several years before prices began to change. The recent
opening of a new plant (CORSA) in San Pedro Sula brought
about a 25 percent rise in price, due to the plant's
effort to attract new business and forcing others to
compete.6

Maximum weight is the basic criterion of the price
system. The average slaughter weight in Honduras is

, 612 pounds. The export packing plants, however, are

slaughtering animals which average almost 700 pounds.7

 

4Interview with Juan Sousa, rancher, June 20, 1970.

5Interviews with Cecilio Velasquez, rancher,
September 28, 1969 and Guillermo Sevillas, rancher,

February 13, 1970.

6Interview with Mario Nfifio Gamero, Director of the
Agricultural Section, Banco de Fomento, September 19, 1969.

7Diagnbstico de la ganaderia en Honduras, p. 71.

124
Other slaughter facilities, especially in the interior of
the country, record averages as low as 575 pounds.8
Reflected in these figures is the differentiation and
market discrimination as to sex. Cows are not favored in
the export plants for several reasons, namely because
they are (1) usually older and tougher, (2) more prone to
be disease carriers (in the milk producing organs), (3)
smaller, and thus creating more work per unit of meat
realized, and (4) "necessary" for increasing the cattle
population. All of these factors, and especially the
latter, are used in the rationale for offering substantially
lower prices for females.

When the plants first began operating, a steer
weighing over 800 pounds was worth LO.17 per pound.9 In
1970 the prices indicated in Table 4 were in effect at the
five export packing facilities. Several significant
differences are apparent within the price structure. The

sex of the animal is immediately seen as a barrier to profit

 

8United States Department of Agriculture, Foreign
Agriculture Service, The Beef Cattle Industries of Central
America and Panama (June, 1969), p. 7.

 

Interview with Dr. Robert H. Stover, researcher,
September 5, 1969.

125

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126

maximization. .For example, a BSD-pound cow sold in
Catacamas would return L88.00 while a steer of the same
weight would bring L110. More significant, in the larger
weight categories there is yet a greater difference in
price at the three plants which list female values.

A pronounced regional differentiation in price
prevails between the various export plants. The price
differential thus has the effect of enlarging the supply
area for those plants offering higher prices.

For example, a marketable 950-pound steer is worth L228
in Catacamas, but at another plant the same animal is valued
at L266. However, even after paying an exorbitant L20.00
for transporting the animal to another plant, the rancher
would gain L18.00 over the transaction offered in Catacamas.
The Catacamas plant remains in full Operation despite the
higher prices paid elsewhere. This is due to the large
number of animals produced locally, relatively poor road
connections with other export plants, and the slight market
price differential for the relatively thin cattle character-
istic of the region. The plant, incidentally, has established
the generally lower prices So as to compensate for expenses

incurred in reconstruction.following a fire in early 1969

127

and in Shipping the final product to the port.10 This

situation is representative of many complex market

conditions which occur in relation to price. Noteworthy is
the fact that prices are established solely by the individual
plants, with no government interference.

The Honduran government has assisted the industry by
establishing protective trade barriers. Throughout the
1960's, while Honduras was establishing its beef export
system, Guatemala fulfilled its needs and quota with
Honduran cattle. Buyers came to Honduras to purchase
animals to be fattened and marketed in Guatemala. They
paid from L0.26 to L0.32 per pound for animals in Choluteca
and shipped them to Guatemala, where they were fattened and
later sold at the equivalent of LO.46 per pound at the
slaughter house. Some 30,000 head were reported sold
annually in this manner to Guatemala. Finally, the govern-
ment realized what was happening to the cattle population
and severed all live exports by a Presidential Decree in

11

1964. Gradually, the Honduran industry is develOping a

sizeable cattle p0pu1ation base which will keep the plants

 

10Interview with Luis Osiguerra, Plant Manager, CISA,
VCatacamas,.June 26, 1970._

11Interview with Mario Nfifio Gamero.

128
operating and aid in the establishment of better prices
through healthy intranational, rather than unhealthy
international, competition.

Price is also affected by the general condition of
the animal. Purebreds which are not tick infested, for
example, have two additional price advantages. First,
purebreds such as the Brahman and Charolais and their
crosses have better dressing weights than the criollos
and are therefore given special consideration (an extra!
L0.01-0.05 per pound) in the market.12 Also, the same
animal if well managed and sprayed to prevent tick inves-
tation will bring extra compensation (L0.50-1.00 per head)
in the market for having an unscarred hide. Probably more
significant is the fact that, in each case, the export
facilities are partially or entirely owned by a group of
individuals who live and work in Honduras and have "special'
friends" whom they rely upon for a constant supply of good
animals. By supplying animals to only one plant the
ranchers are repaid in the form of higher prices. In
addition, most packers will pay LO.30 or more per pound

for animals of over 1,000 pounds, but this is not published

 

12United States, Department of Agriculture, Beef
Cattle Breeds, Farmer's Bulletin No. 2228 (Washington, D.C.,
January, 1968): PP. 3-4.

 

129

information and is applied where and when the occasion
arises.

Prices for animals marketed at non-export abattoirs
are substantially less. Informants reported average prices
ranging between L0.lO and 0.17 per pound. Also, animal
appraisal and purchase by local butchers are common to the
small operations. More significantly, the local market
receives mainly female animals, due primarily to their
prior rejection by an export packing plant. Ranchers, in
order to market their cows, take them to the local
abattoirs.

Marketing regions were delimited on the basis of
interviews at varying distances from the four basic export
processing centers: Choluteca,Catacamas, Puerto Castilla
and San Pedro Sula. Physical barriers, transportation
arteries, price differences, political boundaries and
cattle production criteria aid in delimiting the regions.
Seven separate regions were identified as they relate to a
similar overall destination for marketable beef cattle.
Five of these have a single focus, namely the four export
centers and Tegucigalpa. The western Highlands has multiple
foci, and the Eastern Lowlands has no focus at all (see

Figure 31).

 

130

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131

The four marketing regions which contain the export
centers are defined primarily by transportation arteries
offering easy access to market. However, in several areas
other criteria are used. Physical and economic differences
separate Tegucigalpa and Choluteca, San Pedro Sula and the
Western Highlands, and Tegucigalpa and Catacamas. Between
Puerto Castilla and Catacamas a price differential is the
distinguishing feature, while the isolated domestic
production in the valleys of the Western Highlands set it
apart from the domestic focus of Tegucigalpa's hinterland.
The outer borders of Honduras are political in nature and

serve to prohibit the movement of cattle.

Meat Processing_

 

The principal differences within the beef processing
phase are related to foreign or domestic destination. These
differences can be viewed through sanitation, handling,
'refrigeration and storage, and the final products of the
two distinct channels.

Processing beef for export from Honduras is
stringently regulated by the sole recipient of the final
product, the United States. The United States influence is
also apparent in relation to the location and ownership of

the export units. For example, the northward-oriented

 

132

export facilities and their growth, especially the three
plants on the north coast, reflect the importance of being
near the market. The two other centers are located at
greater distances and must bear higher costs in getting
their product to market. Within the corporate structure
of each packing plant one can find a person responsible
for handling the final product at its destination, and
this is usually a North American.

Direct supervision within the plant is handled by
an inspector charged with the responsibility to maintain
rigid health, sanitation and storage regulations. The
delivery of animals to the holding pens begins the
processing operation. Here, the inspector must guarantee
that the veterinarian examines and declares fit for
consumption all animals in the holding pen. The animals
are held for twenty-four hours before slaughter and weighing
so that any "previously" treated intestinal diseases might
be recognized and the animals will discharge their body

wastes.13

 

13 I o
This second procedure became necessary when it was

discovered that ranchers living in the immediate vicinity
usually make a practice of stuffing their animals with as
much food and liquid as possible so as to increase the final
animal weights. One ingenious rancher is said to have
stuffed an old cow with about twenty-five pounds of B-B shot!

133

Slaughtering begins early in the morning and continues
throughout the day in most of the export plants. The cattle
are guided into a chute, instantly killed with a dart pistol,
hung on a conveyor, skinned (mechanically in some locations),
gutted, sliced, and divided. Then the tedious work begins.
The workers, from 57 to 150 in each of the export plants,
must separate the meat from the fat and bone and then chOp
all of the fleshy segments into "bite-size pieces"-—the
primary final product. The meat is then packaged in
cellophane and put in fifty-pound cartons and sent on its
way along a conveyor to the freezer, where it awaits
(at 0°F) shipment to the United States.

In the early yearsof the beef export era the plants
could not operate at full capacity because there were not
enough marketable animals in Honduras. In 1970, combined
daily slaughtering capacity was approximately 875 head.

This included the plants in Choluteca (150 per day, 7—8
-months), Catacamas (200 per day, 10 months), Puerto Castilla
(80 per day, throughout the year) and San Pedro Sula (CORSA,
250 per day and ALUS, 200 per day, both yearly). Today,
they cannot keep up with the amount to be exported. It is
costly to close the plant, but this is often necessary for

expansiOn purposes. Currently, plans are underway to

134

increase daily slaughter capacity to a total of 1,135
head.l4

Plant officials seek to utilize all by-products of
the processing. They formerly shipped the hides to El
Salvador for the manufacture of leather goods, but since
the confrontation of 1969 this activity has ceased.
Recently plans have been developed to construct a tannery
in Honduras to provide a local market for hides. All of
the bone matter is ground into bonemeal for fertilizer and
feed. The fat is collected and processed into tallow for
use in soap manufacture or for vegetable oil production.

The domestic side of meat processing offers
illuminating contrasts for study. It differs in purpose,
ownership, location, sanitation, handling and waste product
utilization. The different purpose is evident, but the
ownership of the local abattoir is not always as it appears
to be. Although many of these facilities are owned and
operated by municipal governments, a large number are
private establishments. For example, in Trujillo a local
merchant was assigned the task of preparing the meat for sale.
Walking into the front of his store early one Saturday

morning, the writer heard a clatter and groans of death in

 

14Summary and Outlook, p. 4.

135

the backyard. It was the axe meeting live flesh. From
this point on it was up to the machete to clean off the
hide and separate the bloody parts. In a few moments meat
was for sale to a sizeable crowd. Such is the scene in
many parts of the country. The meat is cut up into a
variety of pieces or hung to dry for the remainder of the
day. All of the other parts are usually wasted or eaten
by predators. The scene in a municipal slaughterhouse
is sometimes worse, due to the stench of half-dried blood,
armies of flies, and the frequent slow death of an animal
shrieking its last breath within the confines of an oven-
like room.

Other important forms of domestic processing include
(1) clandestine slaughter in the rural setting and (2) a
hybrid of the domestic and foreign processing activities,
the dried beef abattoir recently constructed in Danli.
Officials are unsure of the number of animals "slaughtered
in the night," but they are sure that it is substantial.
Usually associated with rustling, this form of slaughter
is most common in the major beef-producing areas. The
dried beef plant is a cultural introduction to Honduras.
The Cuban population of the Danli area created a demand
for tasajo, or jerked beef. Soon, the new plant began to

slaughter cattle and pigs for the local market, processing

 

 

136
beef for jerky, and smoked pork for sausage. The beef and
pork products are sold locally and abroad by the twenty

stockholders who supply the animals.15

Transportation and Marketing of Meat

After the meat has been processed, the basic problem
becomes one of tranSporting it to the consumer. In the
export realm there are three methods of transport from
which to choose: airplane, ship and motor truck. In each
case refrigeration units are essential to keep the beef
chilled or frozen. Cost is the first item of consideration.
Air freight rates to Miami are about U.S.$0.04 per pound,
and the planes fly at an elevation of 16,000 feet to keep
the cabin near 0°F. Ship charges to Miami are $0.025 per
pound from Atlantic ports and $0.035 per pound from ports
on the Pacific. Truck transport is $0.035 per pound.

For many of the earlier years air transport provided a
substantial part of the movement of meat to Miami, but
today less than 1 percent of the meat exports are shipped

in this manner.16

 

15
Interview with Guillermo Sevillas.

16Interview with Sr. Roberto Galvez, President,
TAN Airlines, Tegucigalpa, September 29, 1969.

137

Today, the meat shippers use a rather unique combina-
tion of refrigerated truck and ship transport. Again, the
location of the export plants is noteworthy. The three
plants on the Caribbean are substantially closer to market,
yet all of the produce from the Puerto Castilla plant is
currently shipped to Puerto Rico. Catacamas beef is
tranSported by refrigerated truck to Puerto Cortés, where
it is re-loaded for shipment to Miami. The Choluteca
plant exports via the Pacific through the Panama Canal and
,then to Tampa, while both San Pedro plants ship directly to
Miami. It is ironic that the famous refrigerated truck-to-
ship scheme developed by Coordinated Caribbean Transport,
Inc. does not ship Honduran beef. It is the largest
handler of beef and shrimp in Central America and has
recently shifted its basic northern journey to Honduras
and Puerto Cortés, yet it does not handle beef headed along
the same thoroughfare.

The prOpelling force in the Honduran cattle industry
has been the United States Meat Import Act (Public Law
88-482) passed on August 22, 1964. This law created the
quota system which is designed to control imports and help
fulfill the demand for meat in the United States. Contained

within the law is a provision which gives the President of

 

—_——. _:mr_g______v_ _‘ 7 _ __ Hi?

138
the United States, acting in concert with the Secretary of
Agriculture, the right to regulate meat imports through a
restraint program.l7 During the period of this study all
foreign nations supplying beef to the United States were
asked to curtail shipments. In the summer of 1972 President
Nixon removed the restraints and asked the same nations to
resume the trade. Major market fluctuations of this nature
will be a continuing phenomenon and will require periodic
restrictions on trade. It is relatively easy to restrain
activities when they are in the embryonic stage. After
Honduras has developed an enormous cattle exporting
potential, however, the effects could be catastrophic. It
would therefore seem judicious for Honduras to seek
additional markets without delay.

On the local level transport problems are of
particular concern. People in the more remote areas cannot
effectively contribute to increased beef production under
current conditions. The expansion of infrastructure into
isolated parts of the western, central and eastern highlands
might broaden participation as well as open up potentially

productive but unsettled lands.

 

17United States, Statutes at Large, 88th Congress,

2nd sess., Vol. 78, 1964, 594-595.

 

 

 

139

Distribution of the final product at the local level
is primarily a function of the "market basket" in Honduras.
Only in those areas remote from the major markets are there
distribution problems. One prime area which needs attention
is the San Esteban area in northeastern Honduras. This
area.has been famous as a cattle producer since colonial
times, yet the only way one can reach it is by air. This
is also precisely how the beef must be distributed. Three
days each week the plane arrives on the airfield, and the
residents butcher their animals on the field so that the
meat can be wrapped and flown to Tegucigalpa for the
domestic market.

There has been much discussion concerning the need
to increase beef production, but there has been little
consideration of the appropriate balance in meat supply
between the foreign and domestic market. Since the initi-
ation of meat export, domestic beef consumption has fallen
drastically. In fact, current estimates point out that
each Hondurefioconsumes an average of ten pounds of beef
per year, or four pounds less than he ate four years ago.
Government planners contend that the Hondurans have begun

to eat other meats. 18 Yet, it could be argued that the

 

18 *
Summary and Outlook, p. 5.

citizen should be given
inexpensively, the meat
the area in which it is
and largest city of the
an adequate beef supply

house.

140
the Opportunity to purchase,
of his choice if he lives within
produced. Curiously, the capital
country, Tegucigalpa, has neither

nor even a functional slaughter-

CHAPTER VII
REGIONALIZATION OF THE BEEF CATTLE INDUSTRY

The beef cattle industry of Honduras is gradually
changing but remains substantially bound to traditional
methods of operation. Changes within the industry, many of
which occur rapidly, have Spatial variation. It has been
the object of this study to spatially analyze the industry
of the past and present so as to provide insight for future
planning. A regional evaluation can contribute to this
effort.

A regionalization of the beef cattle industry is not
only effective in spatially defining the nature and extent
of the various regions but also elucidates the nature of
change within them. Four regions have been identified in
the discussion of the spatial aSpects of beef production,
transportation, processing and marketing. These are the
North Coast, the Central Highlands, the South Coast and the
Outlying Areas. Each has distinct physical, economic and
technological attributes which, in various combinations,

sets it apart from adjoining regions.

141

142

The four major cattle zones in Honduras are defined
by (l) the general size and nature of operations, (2)
physical conditions of the area, (3) general management
characteristics, (4) market orientation, and (5) access to
transportation. Information from 531 ranch interviews,
field Observations and detailed unpublished agricultural
census information were combined to delimit the regions.
In addition, the four regions have been divided into a

total of nine subregions based upon internal distinctions.

Physical Criteria

 

The initial step in the delimitation of regions
involved identification of major production areas.
Assuming large-sized ranches and herds are indicative of
cattle surpluses for market, all ranches over 100 manzanas
("ranch sample") were used to tentatively locate the major
areas of cattle raising. Two types of areas were then

delineated, namely, all municipios in which sample ranches

 

averaged over 300 manzanas in size and having over 122 head

1

of cattle. The spatial correspondence of these two

 

lMunicipios averagingat least 300 manzanas per ranch
were chosen because in Honduras, under marginal conditions
on natural pasture, three manzanas are expected to provide
pasture for one head of cattle. This represents, then, a
figure three times the size Of the sample base (100), and

 

 

143

criteria reflects optimal grazing of the land, assuming
it is under natural pasture (see Figure 32).

The location of the principal valleys and lowlands
were plotted next so as not to be misled by the political

boundaries of the municipios. It has been illustrated

 

that the cattle industry concentrated historically in the
lowlands and valleys and that this focus is still maintained.
Thus, in many areas the isolated valles and coastal and
riverine lowlands contain most of the cattle. Plotting the
lowlands, in effect, likewise depicts the mountains which
serve as barriers between the several regions. The major
cattle regions were then drawn, based upon the information
already plotted and that collected in the field.

The next physical item of consideration was climatic
differences between the regions.. Immediately, the three
generally east-west extending climatic areas of Honduras
were seen to be associated with the cattle areas. These
over-simplified climatic regions are: (l) the extremely
‘hot and windy, seasonally—arid South Coast, (2) the cooler

pocketed highlands of moderate to low precipitation

 

therefore, these municipios, if maintaining the national
average, should also average at least 100 head per ranch.
These municipios maintaining an average over the national
mean were delineated so as to identify the areas which
are operating in agreement with expectations relative to
natural and national conditions.

 

 

144

 

 

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HONDURAS
MAJOR CATTLE
PRODUCHON ZONES

Valleys and Lowlands

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— Climatic Borders

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Major Cattle Production Zones

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o

Honduras

Figure 32

145
stretching in a wide band through central Honduras, and
(3) the warm humid coastal lowlands of the north (see
Figure 32, page 144). Precipitation is the climatic
element of greatest importance to the cattle industry,
since growth of nutritious forage is dependent upon
sufficient moisture. The climatic borders generally
divided the previously plotted data. The much higher and
cooler western Highlands and the lower and.wetter Eastern
Lowlands now appeared incongruous in this scheme and were
thus separated and grouped together as one entity, the
Outlying Region. Thus, the four major regions were created.
It now became necessary to introduce other variables which
would refine the boundaries around and within each of the
units, delimiting the cattle regions more realistically

(Figure 33).

Economic Criteria

 

Three primary economic criteria were used to further
shape the regions. These are: market orientation of the
cattle enterprise, the perimeter of the market area for
each export packing plant (Figure 31, page 130), and
proximity to transportation lines. The first factor was
used to determine the areas which are producing for the

commecial export market and'those producing for domestic

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147
consumption. In most cases, the areas lacking transport
and/or export packing facilities produce for the local
market. Regional subdivisions were created to account for
these differences. The western Highlands and Eastern
Lowlands are at greater distances from major tranSport
links and, unlike the Central Basin region, do not produce
for the Tegucigalpa market.

The Choluteca Highlands and Northern Highlands have
been identified to separate different types of cattle
operations, although both supply an export packing plant.
The former has been differentiated because northward from
the Choluteca Lowlands the terrain rises abruptly in a
series of rugged volcanic mountains, and the cattle raising
immediately changes from large-scale to small-scale as a
result. In the second case, the Northwest Valleys are not
only distinctly different from the Northern Highlands in
type of cattle Operation but also in the availability of
transportation. The latter region lacks an effective
transport network, but this factor is evidently offset by
being near an export plant.

The remaining two regions, the Northeast Valleys and
the Eastern Valleys, each support an export plant, at

Puerto Castilla and Catacamas, respectively. However, the

 

148
former region, on the coast, lacks a transportation system
since termination Of fruit company Operations in the area.
Catacamas serves the immediate environs of the Eastern
Valleys and is separated from the region to the south by
rugged physiography and inadequate transportation

facilities.

Technological Criteria

 

Another major element distinguishing the regions is
the technological state of the cattle industry. A lOO—point
classification system was devised which incorporates size
and method of operation of the 531 ranches visited. The
following six categories and values were used in classifying
each operation: (1) Cattle type and condition: 0-20 points,
(2) Pasture type and condition: .0-20 points, (3) Cattle-
Pasture Ratio (0.0-6.0 head per manzana): 0-20 points,

(4) Land Use (percent of land in pasture): 0-20 points,

(5) Cattle Management (e.g. spraying, inoculation): 0-10
points, and (6) Pasture Management (e.g. rotation, fencing,
cleaning): 0410 points. One sample rancher received a
score of 53 for his operation of 376 head and 700 manzanas.
His score is comprised of the following: (1) Cattle
(mostlycriollo, in fair condition): 7 points, (2) Pasture

(primarily native pasture in fair condition): 8 points,

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149

(3) Cattle-Pasture Ratio (.53 head per manzana: 6 points,
(4) Land Use (100 percent pasture): 20 points, (5) Cattle
Management (fair): 6 points, and (6) Pasture Management
(fair): 6 points.

Four types of ranching Operations have been identified
on the basis of size and method: (1) the "traditional-
traditional," which is small in size (under 100 manzanas)
and uses traditional practices; (2) the "modern-traditional,"
a small to medium (100 to 299 manzanas) size ranch with
modern (e.g. improved management, breeding, feeding) methods;
(3) the "traditional-modern," which is large (300 or more
manzanas) in scale but has not yet adopted seriously the
improved management practices; and (4) the "modern-modern,"
a large-scale operation using current innovations to improve
cattle production. .More than half of the sample was of
large-scale, and about half was modern. Of those ranchers
in the large-scale category, most were concentrated toward
the modern end of the continuum. Significantly, the
sample reflects that about 70 percent of the ranches are
classified in some state of traditionalism (Figures 34
and 35).

The spatial distribution of ranch size and method of

operation is especially useful in distinguishing management

150

Honduras: A Comparison of Size and Method of Operation on 531 Ranches

 

 

 

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Source: Field Research. Author, 1969—1970 *Value scale based upon six
feeding and breeding characteristics (See preceding text).

Traditional

Figure 34 Honduras: A Comparison of Size and Method of

Operation on 531 Ranches

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152

regions. About 47 percent of the ranches sampled in the
North were considered “modern-modern," while in the South,
Central and Outlying Regions 20, 14, and 0 percent,
respectively, were so classifed (Table 5). Those ranches
in the smaller size categories using modern techniques,
"modern-traditional," are also proportionally greater in
the North. Each of the remaining regions has only about
10 percent of the ranches classified as, "modern-
traditional." About half of the ranches in the South were
considered "traditional-modern." These are, in many cases,
massive properties, with few animals and little use of
current innovations. Of all the regions, the South most
needs to employ current methods, if only to compensate for
the adverse conditions of the dry season. The Central
Region has approximately one-quarter of its ranches classi-
fied as "traditional-modern." Next in this category are the
North, with 14 percent, and the Outlying Areas, with about
5 percent. The small-scale traditional ranches proportion-
ally dominate the Outlying Region. The Central Region's
portion of the sample contains more than half "traditional-
traditional" ranches. About 10 and 20 percent of the North
and South, respectively, are in this category.

The regional subdivisions provide a refinement of

the technological distinctions between major cattle-producing

153

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154

zones. In the North, the Northwest Valleys stand out in
the "modern-modern“ category, the Northern Highlands and
Northeast Valleys in the "modernetraditional" category,
and the Northeast Valleys again in the "traditional-
traditional" classification. The Lowlands of the South
are characterized by large-scale properties and lack of
innovation, in addition to many (about one-quarter of sample
total) excellent "modern-modern" Operations. The Highlands
of the South are classified predominantly in the two
"traditional" categories. The Central Region is divided by
the "traditional-traditional" dominance of the Central
Basins and the "traditional-modern" larger properties of
the Eastern Valleys. Both the Western Highlands and Eastern
Lowlands are predominantly small-scale and traditional in
Operation (see Figure 33, page 146 and Figure 35, page 151).

The regions are recognized as spatial generalizations.
Exceptions to the general patterns are everywhere present.
However, a synthesis of the general character of these
areas should provide an effective framework from which to

begin planning an attack on the industry's many problems.

 

 

 

 

 

 

 

 

CHAPTER VIII

PROBLEMS AND PROSPECTS

Historically, the Honduran cattle industry has been
plagued by numerous operational problems. Principal among
these are: (l) inadequate transportation facilities, (2)
inequitable financing, (3) noncompetitive price structuring,
(4) insufficient agricultural extension services, (5) lack
of viable central organization and planning, (6) inadequate
marketing structure, and (7) ineffective land use planning.
The rate at which progress is made toward resolution of
these problems determines the rate of change within the
industry.

Many problem areas have recently received attention.
This has been due primarily to the initiation of frozen
beef exports to the United States in the early 1960's, and
during the subsequent period substantial improvements have
been made. This is not to say that the era of beef
exportation created all of the changes but has, for example,
been characterized by a realignment of government priorities
concerning financial aid to agriculture, improvement of

marketing and pricing systems, promotion of the agricultural

155

156

extension program, improved administration of the cattle-
men's associations, and creation of an increased desire to
raise production through imprOved management. The nature
and extent of the transportation network have gradually
improved in response to the demands of every sector and

section of the country.

 

Transportation

Most serious of all economic problems in Honduras
is development of the road network. Honduras has been
road deficient throughout its history. For example, in
1965, it contained 2,184 miles of roads, of which only
228 miles were paved.1 Since then, however, several
important projects have been completed, namely the Western
Highway from San Pedro Sula to Nueva Ocotopeque, the
Interoceanic Highway from Tegucigalpa to San Pedro Sula,
and the new Northern Highway from San Pedro Sula to La
Ceiba (see Figure 29, page 117). Also under construction
are surfaced roads from Tegucigalpa to Danli (then south
to Nicaragua) and from Puerto Cortes to Cuyamel (near the
Guatemala-Honduras border on the north coast). All of

these new roads will greatly aid the movement of cattle.

 

1Statistical Abstract of Latin America, 1966, p. 152.

 

157

from formerly isolated areas. In addition, in April of
1971 the Inter-American Development Bank (I.A.D.B.)
approved a loan for $6.3 million to "expand the national
road system and its highway maintenance services." This
loan is designed specifically to develop the farm-to-market
roads of the Department of Cortés, Comayagua and Yoro.2
These efforts appear to reflect a concrete attempt to re0pen
the Aguan River Valley. The I.A.D.B.-financed project will
expand the road facilities from La Ceiba into the central
Aguan Valley to Olanchito and Elixir, the current railroad
terminus.3 With completion of these segments there will

be year-round road access from Trujillo-Puerto Castilla

to the Guatemalan border near Nueva Ocotopeque.

The areas most in need of transportation for cattle
are the southern hinterland of Puerto Castilla and the
northern and southern source regions of Catacamas. The
only road servicing the Puerto Castilla packing plant

parallels the Aguan River to the railroad at Elixir.

A road should be constructed to connect with the major

 

2International Bank fOr Reconstruction and
Development, "Bank Lends $6.3 Million for Highway Programs
in Honduras," News Release No. 15 (April 16,.1971).

31bid.

158

artery to the south. The only roads providing access to
Catacamas are the main highway to Tegucigalpa (unpaved)
and its few and very short spurs. Also needed is a
connection from the Catacamas road to Danli and tributory
roads into the highlands north and west of Catacamas to
tap the produce of that area. Only one north-south road
connection has been completed between the oceans. All
other major thoroughfares are oriented generally east to
west in conformity with the land configuration. It is
time to open up the potentially rich, but isolated, areas

north and south of these primary links.

FinanCing

The lack of financial assistance has been an obstacle
to expansion of the cattle industry for decades, but
current endeavors appear to be operating in favor of the
cattlemen. Credit was traditionally extended only to
those already in the business Or to people who had sub—
stantial collateral. Fortunately, with the advent of beef
exports and the decision to increase beef prOduction
credit became more generally available for investment in
the livestock industry. In l958, for example, only Ll.57
million in loans were destined for the cattle industry,

while in 1965, L8.4l million were approved for livestock

159

development.4

In 1968, the National Development Bank
(Banco Nacional de Fomento) eased credit regulations for
cattlemen. Under this program a rancher can obtain a
loan to be paid back in one to seven years from the time
of approval. These loans, either for "production
installations" or "reproduction," were an improvement over
former loans because of longer periods of repayment,
progressive rates of payment based on the term of the loan,
grace periods conforming to the nature of the loan, and
flexibility in the acceptance of security for each loan.5
More recent financial assistance has come from
international organizations. In 1969, the United States
Agency for International Development (A.I.D.) approved a
U.S.$9.5 million loan for agriculture. About $5.5 million
was to be devoted to the livestock industry, $4.5 million

for production credit, and $1.0 million for associated

crop production.6 In March, 1970, the World Bank approved

 

4Anuario Estadistico. 1966, p. 261.

5Repfiblica de Honduras, Banco Nacional de Fomento,
"Bases para la concesiOn de creditos destinados a1
fomento de la ganaderia," (Comayaguela, 1968), pp. 1-5.

6Interview with Carroll Deyoe, Director of
Agriculture, Agency for International DevelOpment,
Tegucigalpa, September 22, 1969.

160
a loan of $2.6 million for the livestock industry.7 This
loan, in particular, is being actively distributed. In
September, 1971, it was reported that:

The Livestock Project Office, established

by the Central Bank to administer the

$2.6 million WOrld Bank loan for livestock
development, had approved 23 projects by
early August totaling about $1.0 million.
Officials of the program estimate that
approximately $1.7 to $1.8 million will

be disbursed in 197l--the first year of the
program. The project director is considering
the possibility of financing small slaughter-
houses to increase domestic beef consumption.
This program would provide financing for

30 slaughterhouses to be located in remote
areas where beef consumption is extremely
low. However, this project is still in the
formative stages.8

Finally, A.D.E.L.A., a Latin American investment
corporation, has recently Sponsored a loan to expand and
incorporate the Choluteca packing plant. An investment
of $450,000 was made to vertically integrate the "cattle
fattening, slaughtering, beef processing and marketing"
of the newly formed IGHSA (Honduran Cattle Industry, Inc.)
corporation. Two-thirds of the shares will be held by

local cattlemen and businessmen.9

 

World Bank, International Development Association,
Annual Report, 1970 (Washington, D.C., 1971), p. 107.

 

8
Summary and Outlook, p. 3.

9A.D.E.L.A. Investment Company, S.A., "Approved

Investment Summary," p. 2-

 

161

Price Structure

 

Prior to the era of beef export, cattle production
and prices remained relatively stable. There was little
incentive to increase production for each rancher sold his
marketable animals toa drover or buyer and waited another
year for his next sale. With the implementation of higher
prices based upon exact weights, however, ranchers became
concerned about their losses. Prices for cattle have
since increased substantially. For example, Empacadora
Alus, in San Pedro Sula, offered L0.095 per pound for an
BOO-pound steer in 1963, while six years later the price
had increased to L0.28 (seeTable 4, page 125).10
Unfortunately, the prices are not comparable to those
of neighboring nations. In 1968, Honduras had the lowest
average prices per pound (L0.20) in all of Central America
(regional average L0.24).ll In September, 1969,
Guatemalan packing plants were paying L0.46 per pound

for 1,000-pound steers, while the best price in Honduras

was'L0.28.12 It is no wonder that Guatemalan ranchers

 

10
"The Export Beef Industry of Central America," p. 41.

ll
Bases para el desarrollo . . . , I, 74.

Interview with Harry C. Bryan, United States Agri-
cultural Attaché for Honduras and Guatemala, Tegucigalpa,
September.29.,1969a ~' ~

162
were seen all over the Honduran landscape buying young,
thin animals to take back to Guatemala.

It is uncertain why Guatemalan export plants can
afford to pay higher prices than those of Honduras, since
operational and transportation costs appear similar for
the two countries. The average wholesale price paid in
Miami during the past several years has fluctuated between
U.S.$0.40 and $0.45 (L0.80 to L0.90) per pound for frozen

semi-processed beef.l3

In other words, there is a profit
margin of at least L0.50 per pound for animals in the
highest weight categories (L0.28 per pound). The rancher,
especially during the embryonic stages of the industry,

should receive every economic "break" possible to offset

the high costs of increasing beef production.

Agricultural Extension Services

 

Honduran agriculture has been handicapped by
ineffective communication of information concerning modern
technology. The basic problem has been financial, and
therefOre the number of teChnicians has been limited not
only in quantity, but also in quality. In the past most

efforts have been devoted to assisting farmers to grow

 

l3 _
Interview with Augusto Vargas, Customs Broker,

BANCSA, Tegucigalpa, September 9, 1969.

163

garden crOps, and little has beendone to encourage
livestock production.14

In 1967, the Banco Nacional de Fomento and DESARRURAL
(The Agricultural Extension Service) cooperated in two
joint ventures for development of the livestock industry,
namely agricultural extension and herd improvement.15
The first was designed to aid in the dissemination of
information to all agriculturalists. The number of
extensiOn offices has grown from a few poorly managed
concerns to thirty-three active, well-equipped educational
units (Figure 36). The second joint BNF-DESARRURAL effort
has been more consequential, because it established a
cattle breeding project. This project has been established
on some 60,000 manzanas near Comayagua. Only about 12,000
manzanas are used for crop production, and another 3,000
are currently planted in fifteen to twenty manzana pastures.
In 1967 some 337, and a year later another 355, head of

purebred livestock were airlifted from the United States

to stock the project, which is designed to produce purebred

 

4Bases para el desarrollo . . . , I, 95.

15Mario Nfifio Gamero, "DivisiOn de desarrollo
.ganaderia," Tegucigalpa, D.C.,;Banco de Fomento,-l967,
pp. 1-5. (Mimeographed.)

 

 

164

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165

breeding stock for sale to ranchers.16

The objective is

to sell one-year old calves (L500-900) to ranchers for‘

upgrading their herds. The young, of course, are the

offspring of the best animals in the country. One Brahman

bull was purchased, for example, at a cost of U.S.$24,000.

Brahman, Santa Gertrudis and Charolais are the major beef

breeds at the station. Three other bulls (a Hereford, an

Angus and a Shorthorn) were also brought in for experimental

reasons, in addition to many dairy animals, several quarter

horses, and numerous goats and swine.17
The intended purpose of BNF-DESARRURAL project is to

serve as a showcase for livestock raising and to provide a

source of improved animals for crossbreeding. In 1945,

when the program was first suggested (two decades before

BNF was created), there were only twenty breeding stock

18

on the prOject site and these were primarily dairy breeds.

Today, there are hundreds of livestock of good quality.

 

16 ~
"Honduras Airlifts Purebred U.S. Livestock," Foreign

Agriculture, Vol. VII, No. 23 (June 9, 1969), 13.

17Interview with Mario Nfifio Gamero, Director of the
Agricultural Section, Banco de Fomento, September 19, 1969.

 

18The Institute of InterrAmerican Affairs, Food
SupplyDivision,.Three.YearspofaAgriculturalnExperience
in Honduras (Washington,'D.C., May, 1945), p. 24.

 

166
It is through approaches of this nature that the purposes

of agricultural extension are best served.

Central Organization and Planning

For decades the cattle industry has "coasted" along
uninhibited and unconcerned about future plans. This is
understandable considering the nature of former livestock
operations. With the ranchers given new price incentives
and the government concerned with increasing beef produc-
tion, however, organization becomes essential. In several
Central American governments, especially Nicaragua and Costa
Rica, there is lack of precision in assigning tasks related
to the administration of the industry. What results is a
duplication of task and confusion of purpose.

In Honduras, the 1960's were a challenging period
for the industry, but in terms of organization the industry
would be considered "together." Fortunately, a viable
national plan was promulgated in 1965. The ten-year plan,
1965-1974, has eight principal objectives: (1) to increase
the production and efficiency of operation on farms through
crossing criollo cows with Brahman bulls; (2) to increase
the birth rate from 45 to 70 percent; (3) to reduce the
death rate of steers from 27 to 10 percent; (4) to increase

the dressed weight of animals to approximately 500 pounds:

167
(5) to increase the export of beef and domestic meat
consumption; (6) to continue the importation of improved
cattle, of which 25 percent are to be dairy animals and
75 percent beef; (7) to develop a "national breed" from
crossing Brahman and criollos; and (8) to increase the
number and size of the swine population.19 It is apparent
that the Brahman bull has his work cut out, for this animal
represents the crux of the program. The implementation of
improved breeding and feeding practices is a long-term
project, as is indicated in the summary of the four major
"types" of ranches.
Organization of cattlemen has developed slowly at the

local level. In 1945, it was pointed out that:

As steps in the improvement of the livestock

situation in the country, the Institute has urged

the formation of associations of livestock

Operators and the employment by the government

of competent veterinarians.20
There is not yet a viable national organization to coordinate

the efforts of the ranchers. There are some twenty-three

local associations of different purposes and qualities.21

 

19
Bases para el desarrollo . . . , II, 9.

20
p. 11.

Three Years of Agricultural Experience in Honduras,

1Interview with Mario Nfifio Gamero, September 19,
1969.

 

 

 

 

168
Annually there is a plea for a national organization, but
little is done. Again in 1971:

The Honduran Congress is considering a bill
that would create a National Federation of
Agricultural and Livestock Producers that would
replace the regional organizations. . . . The
main purpose of the organization would be to
represent the interests of the membership
before Congress, act as a bargaining agent to
secure higher prices, organize producers into
more economic units, disseminate technical
information, organize livestock shows and award
premiums. . . .22

The organization is to be financed by a progressive stamp
tax on each animal sold. HOpefully, this organization will
be established. If not, its creation should continue to be

given top priority by proponents of the cattle industry.

Marketing,Structure

 

The market for Honduran beef has traditionally
lacked diversity. From the period of cattle product
shipment (hides and tallow) to that of live animal export,
and now with the shipment of fresh frozen beef, Honduras
has failed to supply a variety of markets. In the early
periods this was not so significant, for Honduras was the
cattle kingdom of Central America. Adjacent areas provided

a sizeable, stable market. ’Today, however, all of the

 

22Summary and Outlook, p. 3.

 

169

Central American countries excepting El Salvador export
beef to the same market, the United States. More signifi-
cant, all of these livestock sources have been remodeled
to increase their production to supply this market. Under
normal production conditions the loss of a market is not as
drastic as the situation which could occur if the United
States market would be closed.

Some accounts of the world beef trade do not
consider the nature of the United States cattle industry.
Instead, they emphasize the nature of the consumer.
Renewed competition from United States producers is a
possibility because the "cutter and canner" type of beef
which Central America now supplies was primarily from
United States dairy cows and bulls, a cattle population
which is highly cyclic in nature. Bulls are no longer
significant in the United States cattle pOpulation, due to
the widespread use of artificial insemination, but dairy
cows represent approximately 20 percent. In 1920, the
dairy herd was about the same size as it is today. However,
around 1940 it reached a peak in its cycle. It is possible,
with increased demand for milk that the dairy herd could
again begin an upward cycle and therefore contribute larger

quantities of the manufacturing beef needs of the

170
country.23 With an oversupply of beef from domestic
sources in the United States, historically a common
occurrence, the import of cutter and canner meat would be
curtailed.

Honduras should develop a variety of markets for its
rapidly growing beef production. In September, 1969,
Honduras had filled its export quota to the United States,
some 14 million pounds. Had the "restraints" been strictly
enforced, not one more pound of Honduran beef could have
entered the United States. It was at this time that the
Minister of Economy went to Washington to request a larger

24 Had an alternative market been developed, the

quota.
situation would not have been so critical.

The emphasis on exports has led to a neglect of the
domestic market. Per capita beef consumption in Honduras
has declined 50 percent in the past decade. The margin of
profit for export beef is L0.50 per pound. A local
entrepreneur buying cattle at current prices could perhaps

make similar net gains by selling a large volume Of

inexpensive, good quality beef at a lower profit per pound.

 

23
Beef and Beef Products, pp. 34-37.

24"MisiCSn econdmica a Washington, D. C.," La Prensa
(San Pedro Sula), September 17, 1969, p. 28.

171
Honduran beef consumption has been as high as sixteen
pounds per capita per year (1956).25 This is the equivalent
of 0.3 pounds per person per week. In Tegucigalpa alone the
weekly need would be 33,000 pounds, or 132 animals averaging
500 pounds each with 50 percent dressing weights. Buying
the animals (66,000 pounds) at an average of L0.25 per pound
would cost Ll6,500 and necessitate selling the meat (33,000
pounds) at L0.50 per pound. Raising the price to L0.55 per
pound and realizing even a L0.05 profit per pound would
leave Ll,650 to cover weekly Operating expenses. Although
the figures are slightly exaggerated, the sample is

illustrative.

Land Use Planning

 

Over-dependence upon the world market is related to
the need for land use planning in Honduras. During the
so-called "cotton revolution" of the 1960's, cotton became
the salvation of the Pacific coastal lowlands. Farmers
took advantage of "attractive world prices, the availability
of cheap land and labor and probably the highest yields of

anywhere on earth. . . ."26 In 1963 it was reported that:

 

25The Beef Export Trade of Central America, p. 9.

26James J. Parsons, "Gotten and Cattle in the Pacific
Lowlands of Central America," Journal of Inter-American
Studies, VII (April, 1965), 151.

 

 

172

The cotton area is expected to increase from

16,000 acres, in 1962-63, to 21,000 in 1963-64.

This reflects increasing cotton because of

favorable returns from recent crops. Industry

representatives feel that the maximum practical

limit for cotton acreage in Honduras is about

50,000 acres or slightly more, and that this

figure will be reached in about three years.

. . . Factors which tend to curb production

expansion include limited area suitable for

cotton growing, conservatism among capital

investment interests, some scarcity of labor,

and increasing livestock operations.27
However, a 1971 report shows the effect of reduced prices
by stating that "the area sown to cotton in 1969/70 was
5,677 manzanas (9,651 acres), 61 percent below that of
1968/69. Production reached 196,246 quintals (4,129 bales),
compared with 488,713 quintals in the previous season."28
In 1969, it appeared that cotton was decreasing in importance
and the "cattle revolution" was about to begin. Many of the
former cotton fields were divided and fenced for pasture,
and marginal coffee plantings in the adjacent highlands were

also being removed and planted to pasture. This example

emphasizes the intense land competition which continually

 

7United States Department of Agriculture, Cotton
Production in Central America, Foreign Agricultural Service
Miscellaneous Publication No. 154 (Washington, D.C.,
November, 1963), p. 41.

8"Honduras,"Bank of London and South American
Review, VOl. V, No. 51 (March, 1971), 159.

173

exists between crops and livestock. TraditiOnally,
throughout the world, livestock enterprises have opened
up many areas only to be removed eventually by some more
profitable crop or pursuit. The cattle industry has
occupied some of the best lands of the world, but where
population pressure infringes upon the cattle domain, man
and his crOps usually prevail.29

In Honduras the cattle industry maintains its
dominance on some of the better agricultural lands of the
relatively underpopulated regions (e.g. Choluteca,
Catacamas, and the Lower Aguan Valley). Cattle will always
have a place on the "frontier," including its most fertile
areas. The last frontier in Honduras, presumably, will be
the unoccupied highland areas. Thus, what will have elapsed
is an exchange of property between the cattlemen and the
agriculturists. The fertile lowlands and valleys were once
controlled by the cattlemen.who forced the few native farmers
onto the hillsides. After centuries passed and the
population reached sizeable dimensions, the agriculturists
came to haunt the ranchers who were then forced onto the

marginal hillsides.

29 W_ -
For an excellent discusSiOn of this process see

T. Lynn Smith, "Agricultural-Pastoral Conflict: A Major‘
Obstacle in the Process of Rural Development," Journal of
Inter—American Studies, Vol. XI, No. 1 (January, 1969), 16-43.

 

174
The definition of areas to be used by the farmers

and ranchers is possible only in those rapidly-disappearing
unoccupied lands having potential value for crops and live-
stock. Both must be assigned their respective domains
before settlement of the region, or conflict will result.
This observation is based upon the assumption that the
rancher will accept the assignment of marginal territories
for his enterprise. Given proof of this, the two can
flourish side by side. As one author puts it:

While it is true that investment in ranching

creates relatively few jobs and is hardly a

suitable vehicle for "land reform," it can

employ land for which there is little

alternative use, increase and improve the food

supply, augment export earnings and give

important impetus to the development effort.

In most areas beef production can be increased

significantly in two or three years and

doubled in seven or eight.30

The real situation in Honduras is that the rancher

maintains his control of the better agricultural land. In
the past, and frequently today, vigorous conflicts have
31

occurred when the farmer encroached upon ranch land.

At present, the farmers have put down their weapons and

 

30Donald J. Pryor. "LiVeStOCk‘ Recognition Of a

Stepchild," Finance and Development, Vol. VII, No. 3
(September, 1970), 20-21.

 

31 T
This is illustrated by the fact that the researcher
was met at many doorsteps and gates by armed guards or
owners ready to thwart the ”enemy;"

 

 

 

 

175

employed the assistance of the government and its

"agrarian reform" policies. They will again be triumphant.
Planning is therefore necessary to accommodate the diSplaced
rancher. In the new colonization schemes in Honduras there

are no plans for cattle raising.32

These projects are
located in many of the promising cattle-producing areas

(see Figure 36, page 164). By planning a place for ranching
in the surrounding areas, the settlements can have a built-in
I meat supply and enjoy a stronger regional economy. In any

event, land-use planning for agriculture should consider the

cattleman.

 

3ZInterview with Rigoberto Sandoval C., DirectOr of
Institfito Nacional Agrario,!Tegucigalpa, May 12, 1970.

L

CHAPTER IX

SUMMARY AND CONCLUSIONS

This study has viewed the changing beef cattle
industry of Honduras from a geographical point of view. It
has been concerned with the basic problems of the past and
present cattle industry and how these problems are being
handled within the context Of recent government support of
rapidly increased beef production. The study has focused
upon the spatial aspects of beef cattle production, trans-
portation, processing and marketing and how these aspects
have changed since the initiation of frozen beef exports
to the United States in the late 1950's. The major cattle
regions have been delimited according to their respective
production, transportation, processing and marketing
components. The conclusions formulated are designed to

assist future regional planning efforts in Honduras.

Summary

The studyhas been organized into four basic parts.
The first part considers the historical and physical

patterns of the cattle induStry. The second focuses upon

176

I.

177

the Spatial analysis of beef cattle production, transpor-
tation, processing and marketing. The regionalization

of these elements constitutes the third section, and the
fourth part is a summary and conclusion.

The physical-historical setting of the industry
provides a framework from which to analyze several of the
industry's current problems. Although settlement in
Honduras during the early colonial era spread simultaneously
from the north and south, the population concentrated
around mining endeavors in the southern and central regions.
In the extensive lowlands and valleys.of these areas the
Spaniards introduced their familiar economic pursuit,
cattle raising. Here they gained control, at the expense
of the Indian population, of the best agricultural lands
and began raising large herds of small, criollo animals.
Abundant forage, local markets and control of vast estates
which needed little management were all available to the
early cattle barons of Honduras.

The cattle industry maintained its colonial cast for
over four centuries with little incentive for change.

Upon the invitation of the United States for grass-fed beef
at substantially higher prices in the late 1950's, however,

the Honduran industry began to change markedly. The

178

industry was affected by several Systematic and regional
changes. The systematic modifications involved a change

in (1) the emphasis fromlive animal export to the shipment
of frozen, semi-processed beef, (2) the general method of
transport from cattle drives to truck transport, (3) the
destination of the animals from local or Guatemalan and
Salvadoran markets to export processing plants in Honduras,
and (4) the method of determining price from head or herd
appraisals to precise weight of the animal. The regional
adjustments, of course, focused upon the new export

packing plants. Those areas serviced by adequate roads,
which prevent weight loss, and able to produce large
numbers of marketable (800-l,000 pounds) animals throughout
the year, benefitted from the new system.

The historical-physical associations established by
the industry of the earlier era were not easily adapted to
the new forms of production, transportation, processing
and marketing, thus creating innumerable problems for the
present industry. For example, the early rancher's
perception of a favorable site for livestock raising in the
lowlands and valleys of the country, although appropriate
for the early period, proved problematic with the change
to export emphasis. The concentration of cattle in the

valleys and lowlands of central and southern Honduras led

179

to the following situations in the current era: (1)
intense competition between farmers and ranchers for the
most fertile areas; (2) isolation, particularly in the
highland valleys, from the major transportation arteries
and modern cattle management innovations; (3) dry season
forage shortages intensified by increased population in
the formerly extensive grazing areas; and (4) sizeable
financial losses for those Operators residing in the
colonial production zones.

The changes in response to the era of frozen beef
export were not uniform throughout the country. Regional
differences in production, transportation, processing
and marketing revealed that only one region could respond
readily to the new incentives from abroad, namely, the
northern coastal area of HOnduras.

The North Coast Region is regionally dominant in
the following features: (1) percentage change (increaSe)
in the total cattle population between 1952 and 1965,

(2) percentage change (increase) in the area in pasture
between 1952 and 1965, (3) average number of cattle on
all large ranch units, (4) proportion of ranch under
private ownership, (5) area of ranch devoted to improved
pasture, (6) number of pure and mixed breed cattle, (7)

Imost'accessible transportation network, (8) most "modern"

180

management, (9) number of export packing facilities,

(10) highest average slaughter and storage capacity, (11)
highest average slaughter weights, (12) highest market
prices, (13) conditions most amenable to year-round pasture
growth, (14) proximity to the United States, and (15) least
expensive transport charges to the United States market.

A regionalization of the cattle industry ties
together many components within the several cattle-raising
areas of Honduras. Four major cattle regions and nine sub-
regions are defined by: (1) the general size and nature of
operations, (2) the physical conditions (i.e. tOpography,
climate), (3) general management characteristics, (4) market
orientation, and (5) access to transportation. Information
from 531 ranch interviews, field observations and detailed,
unpublished agricultural census information were combined
to delimit the regions. The four major regions are:

(I) the Northern Region, (II) the Central Region, (III) the
Southern Region, and (IV) the Outlying Areas. These were
subdivided on the basis of distinctions evolving from the
above-listed criteria.

Probably the most useful criterion for planning is
the technological nature of cattle operations. Four

principal types are identified on the basis of size and

181

method of operation: (1) the "traditional-traditional"
ranch, which is small in size and uses traditional
practices; (2) the "modern-traditional," a small (under

100 manzanas) to medium sized (100 to 299 manzanas) ranch
with modern management; (3) the "traditional-modern"
operation which is large in scale but has not yet adopted
seriously the improved management practices, and (4) the
"modern-modern" ranch, a large scale operation (300 or more
manzanas) utilizing current.innovations to improve cattle
production. By classifying each ranch, general regional
differences are obtained. The North is dominated by the
"modern-modern" operations, the South by "traditional-
modern," and the Central and Outlying Areas by "traditional-
traditional." All major regions contain numerous examples
Of the "modern-traditional" operation but not in sizeable
proportions.

In general, recent years have witnessed substantial
progress toward alleviating the immediacy of the numerous
problems, and prospects seem bright. The government has
recently acceded to the needs of the industry by making
substantial investment in the transportation network,
realigning its priorities concerning financial aid to

agriculture, improving the marketing and pricing mechanisms,

182
promoting the agricultural extension program, improving
the administration of the cattlemen's associations, and
increasing its efforts to raise production through
improved management. All of these factors, except road
improvement, are directly related to governmental concern
for increasing beef production to take advantage of the

United States demand for grass-fed beef.

Conclusions

 

The purpose of the study is to explain the growth
of the cattle industry on the north coast of Honduras.
It was hypothesized that the recent emphasis upon the
export of refrigerated beef from Honduras has led to the
concentration of beef production on the nOrth coast and
that this concentration will be intensified as compared
with other beef cattle producing regions of the country.
It was also believed that the physical and economic
advantages of this area have been primarily responsible
for the growth.

It was found that the north coast cattle producing
area was created by a unique set of physical, historical,
economic and cultural circumstances which have led to
development of the entire area and that the historical-

o

cultural factors have played a more significant role than

183

originally hypothesized. The north coast of Honduras was
one of the few Caribbean areas developed by the Spaniards
and has subsequently continued to develOp. The major
economic impetus was given to this area by the fruit
companies, however, which began operations around the begin-
ning of the twentieth century. They are responsible not
only for the rapid develOpment of the north coast during
this century but also deserve credit for importing large
numbers of improved breeds which, through time, have been
disseminated throughout the country. The United Fruit
Company (Tela Railroad Company, in Honduras) also aided

the rapid growth of San Pedro Sula, the booming urban
industrial heart of the country. It is the growth of this
city and its attraction of migrants from all over Honduras
'which relate to the unique nature of the cattle industry

in the area. Most of the so-called "modern-modern"

ranchers are well-educated professional people who live in
San Pedro Sula but were born elsewhere. A recent study shows
that the principal source of migrants for San Pedro Sula is
Tegucigalpa, the capital and largest city of Honduras, where

most of these doctors, lawyers and merchants once lived.1

 

1Charles M. Croner, "Spacial-Characteristics of
Internal Migration to San Pedro Sula, Honduras" (unpublished
Ph.D. dissertation, Department of Geography, Michigan State
University, 1972), p. 99.

 

184

The fact that these people are generally better educated
and usually new to the cattle business is significant
primarily because they are more likely to adopt new
practices in their recently acquired "hobbies." Such
people work at their professions in town and operate cattle
ranches as well. For example, about 80 percent of the Sula
Cattlemen's Association (AGAS) members have addresses in
San Pedro.2 They could be called "suitcase ranchers."

The Tela Railroad Company and the Standard Fruit
and Steamship Company are currently phasing out of the
cattle business. United Fruit for the past decade has been
selling its 15,000 head of purebred Brahman and Santa
Gertrudis, while Standard Fruit is selling its 5,000
Brahman, Charolais and Santa Gertrudis. Company officials
say there is "not a large enough return on the investment,"
or "there is more investment potential in crops." In any
case, the cost of labor enters into the situation for
wages on the plantation must comply with those established
by the labor unions, about L6.00 per day asagainst L2.00

per day for a machetero (weed cutter) on and off the

 

2Asociacién'de Ganaderos y Agricultores Sula (AGAS),
NOmina de los miembros actiyos de la "AGAS," (San Pedro
Sula, 1969). (Mimeographed.)

185

plantation, respectively.3 The disintegration of these
large purebred herds is important because local ranchers
can benefit in their purchase, and many have already done
so. The familiar brand of the Tela Railroad Company, an
arrow passing through a circle, is found all over Honduras,
but particularly in the Northwest Valley area. This
dissemination of purebred cattle will assist in the
intensification-process.

The growth of cattle raising on the north coast with
the advent of the era of exportation was greatly aided by
a favorable physical and economic environment. A natural
setting susceptible to year-round cattle raising and a
basic economic infrastructure were combined with the
opportunity to export frozen beef from packing houses soon
to be constructed in the regional hub of the area, San
Pedro Sula. The opening of slaughter facilities and
substantial price incentives have led to a cattle boom in

the area. The Open mindedness of the cattlemen and their

 

3 .
Interview with Marvin Davis, Director of Livestock,

Tela Railroad Company, La Lima, Honduras, September 4, 1969;
Interview with Junior Crocker, Livestock Director, Standard
Fruit Company, La Ceiba, Honduras, April 3, 1970; Interview
with H. H. Hord, Director of Agriculture, Standard Fruit
Company, La Ceiba, Honduras» April 4, 1970.

186

willingeness to use readily available information and
purebred stock played a paramount role in the intensifica-
tion of cattle raising in the north coast departments.

The composition of the ranching population and the
availability of purebred cattle cannot be over-emphasized.
Although other regions suffer climatic hardships, having an
astute ranching population and improved herds as part of
their character would have substantially changed the current
‘production situation. For example, export packing
facilities constructed in three other areas of Honduras
have not increased cattle production proportionally.
However, ranchers in dry environments along the Pacific
coast in Costa Rica have proved that modern management
techniques can be effective in increasing cattle production
under adverse conditions. Had less "progreSsive" ranchers
been the major element in the area the results might have
been less notable.

It appears that an historical tradition concerning
the methodology of animal husbandry has evolved. Each
man's son or sons continue to produce cattle in the
traditional manner and it becomes extremely difficult to
convince these individuals, many of whom possess the

financial resources, that a change in method would be

<1

187

beneficial. It is suggested, then, that the basic

problem is often with the rancher, not the ranch, and that
upon the introduction of improved animals and pastures the
remaining potentially rich cattle areas of Honduras, or

other similar areas, will prosper.

Recommendations

 

The final objective of the study is to offer sugges-
tions useful for planning in Honduras. These are listed
in the order in which they appear in this dissertation,
rather than in order of importance. All recommendations
are based upon the assumption that there is to be a
continuous expansion of the infrastructure similar to that
currently underway.

It is recommended that the Honduran cattlemen and
government:

(1) Evaluate what history indicates about the
spatial relationship between livestock and crop
production and plan accordingly;

(2) Choose those areas suitable for year-round
pasture, having access to markets, when planning
future livestock production areas;

(3) Maintain all efforts to assist in increasing the

use of, and decreasing the costs of, improved
management practices throughout the country;

(4) Plan to diversify the sale of beef by developing
' the domestic market and by locating additional
international markets;

 

188
(5) Open isolated cattle production zones to
markets inside and outside the various regions
by constructing regional slaughter facilities
and by permanently discontinuing live cattle
exports;

(6) Develop cattle by-product industries,
particularly leather goods manufacture;

(7) Organize an effective cattlemen's association to
properly administer the affairs of the industry;

(8) Construct a modern meat packing facility in
Tegucigalpa to fulfill the domestic demand for
beef;

(9) Continue to intensify production in the NorthWest
Valleys Region and develop the cattle-raising
capabilities of the Northern Highlands Region.

If the future of cattle raising in Honduras is to

brighten, planners must consider the regional diversity of
their country. This diversity affects every program which
is promulgated. Future cattle programs cannot suggest
improvements for the entire industry without consideration
of local physical, historical, economic and cultural
differences. This study will have fulfilled its purpose

if it can in any way contribute to the understanding of the

regional variation of the cattle production in Honduras.

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