Custom Rearing Farms in Uruguay

Resource Management and Contractual Alternatives

Abstract

In Uruguay, female calves are often custom raised until they reach the stage in which to become pregnant in Dairy Rearing Farms (DRFs). These facilities are managed by producers’ associations, mainly on public land. The object of present work was to establish how the organization, the use of resources and custom agreements with producers are settled. Information was obtained through survey methodology on thirteen DRFs. Daily producers using custom rearing services were 737 during 2007-08, which amount to 22% of total industry suppliers and 16% of total dairy farmers. The survey included 18.057 cows grazing on 19.891 ha, which represents 2,3% of the total national dairy farm Área. About 85% of DRFs are under grazing contracts with producers; only two DRFs are subject to contracts with payments computed from cattle weight gains. Most frequent cashing is monthly deductions from dairy industry payments. Seventy-five percent of producers use verbal contracts with DRF management. In six DRFs daily weight gain of animals is less than 420 g/day, and 4 of these DRFs have rearing periods longer than 24 months. DRFs with more than 75% of native range grazing Área show the highest rearing periods and the lowest daily weight gains. Animals from dairy farms with different size and technological development are reared; no specialization in each dairy cattle animal category was observed. DRFs with weight gains under 420 g/day, rearing periods longer than 30 months and pregnancy percentages lower than 80% have difficulties attracting users. National net income from dairy farming could be increased in US$ 96 million if custom female calf rearing were adopted by producers who presently rear their own replacement stock.