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Organizational
Life* Organizational History

* Problem areas in sheep production

* ANCO’s role in resolving them

* Resources for project support

 

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I.  ORGANIZATIONAL HISTORY

 

 

In 1953, a group of stockmen led by Mr. Galo Plaza Lasso formed the National Association of Sheep Breeders with the active support of experts from the United Nations’ Food and Aid Organization.  ANCO came into existence as a private non-profit institution through the Ministerial Agreement #142 of April 27, 1953.

 

In 1959, the National Aid Bank was forced to dispose of its agricultural properties, among them the Hacienda Pachamama, where the bank kept a flock of purebred Rambouillets.  The flock was going to be lost, and with it all the work ANCO had accomplished on there.  For that reason, the General Assembly of that year authorized the rent of Pachamama, a great step forward in the activities of ANCO.  The Association could demonstrate in practical form the utilization of the high mountain plains for sheep production, as well as those management methods that its extensionists had been trying to establish.

 

The national government solicited and obtained external financing for the then called “Immediate Plan of Development,” one of whose chapters was the Advancement of Wool Production, from the Interamerican Bank of Development.  Representatives from the latter bank came to Ecuador to study the various possibilities for implementation.  Convening in all that refers to sheep production, they agreed that ANCO be the entity completely in charge of carrying out the National Sheep Program.  The government and the national organizations that collaborated at that time for the execution of the loan and development of the program were in agreement with the request.

 

In March of 1962 the national government signed a contract with ANCO by means of which the Association took charge of the program for the Advancement and Improvement of Wool Production in the Country for as long as the General Development Plan was in force.  From that year on, ANCO acquired a national dimension, and its services of extension and wool classification came to cover the entire Ecuadoran Sierra.

 

In 1964 ANCO realized a massive importation of 8,800 animals of high genetic quality from Australia and the United States.  It was an invaluable injection for the country’s wool production and at the same time constituted a valuable experience for future importations.

 

However, in April of 1972 the dictatorship assumed ANCO’s assets through a Ministerial Agreement.  The sheep breeding stations and their activities became the charge of the Ministry of Agriculture and Animal Husbandry (MAG).  Thirteen years later, in 1985, the National Government decided to return the management of the National Sheep Program to the private sector.  Finally, on August 1, 1986, contracts were signed between MAG and ANCO, through which the national government granted ANCO the use of three haciendas: Concepción de Monjas, El Tablón, and Pachamama.

 

The development group U.S. AID (Agency for International Development), via the committee PL-480, furnished the necessary funds and provided the required technical assistance through a group of experts from the Universities of Florida and Utah.  Since then, and since ANCO’s resumption of the responsibility of carrying forward the National Sheep Program, enormous activity has developed.  In October of 1987, 5,300 purebred sheep of various breeds were imported from New Zealand to crossbreed with the native sheep with the end of furthering genetic improvement and taking advantage of the hardiness of the native sheep, thereby obtaining better lambs and hence better quality in wool and meat, all of which directly benefit the peasant farmer by augmenting his/her economic income and quality of life.

 

II.  PROBLEM AREAS IN SHEEP PRODUCTION

 

Owing to the extreme marginality that is found in the peasant sector dedicated to sheep production in Ecuador, an accelerated shrinkage in the sheep population has been produced, especially due to the following reasons:

 

*  Expulsion of the sheep industry to the highest and most inhospitable lands, due basically to demographic growth.

*  Lack of economic resources.

*  Lack of knowledge of appropriate technologies.

*  Lack of commercialization facilities.

*  Degradation of the species due to indiscriminate killing of animals no matter the age or reproductive condition.

*  Low production and reproduction parameters due to a lack of technology and lack of a genetic base for improving bloodlines.

*  Environmental degradation due to indiscriminate overgrazing in natural pasturelands.

*  Abuse of the producers on the part of the system of commercial middlemen.

 

III.  ANCO’S ROLE IN RESOLVING THEM

 

ANCO, as an organization, has sufficient experience to direct the development of the country’s sheep industry.  However, were it to obtain the necessary financial resources, ANCO could amplify its activities not only with respect to wool production but also with respect to initiating or increasing lamb and sheep production in all zones generally.

 

The project shall result in the improved utilization of sectors of the high mountain plains, which remain under-utilized, by means of an increase in lamb and sheep exploitation.  It shall represent a source of secure, higher income for small and large sheep raisers alike, in addition to the permanent employment of a number of people in secondary industries such as wool processing or meatpacking.

 

Furthermore, sheep and lamb hides that lack the industrial treatment needed to enter existing markets can be better utilized in the production of natural sheepskins and haired hides, which can be employed in distinct uses and manufacturing processes.

 

For the completion of those objectives and goals, Ecuador possesses the land, natural resources, and workforce necessary to develop a productive sheep industry.  Such an industry could constitute an important factor in the development of the economy.  The needs of the national textile industry, the low level of animal proteins in the rural Ecuadoran diet, and the analysis of these aspects, establish the foundation for orienting policy towards the augmentation of the production of those products that, like wool and meat, constitute and contribute to improve industrial development and elevate nutrition.

 

In this sense, it’s important to be optimistic and see the problem as within our national reach.  We estimate that the use of wool substitutes such as pure or blended synthetic fibers will not be able to compete with this natural fiber for the elaboration of a wide variety of garments.

 

With the above, and with time, self-financing will be obtained from the products derived from sheep production.

 

IV.  RESOURCES FOR PROJECT SUPPORT

 

First would be the obtainment of direct external financial support for two years, until the association can finance its own operations, or, on the other hand, the obtainment of a long-term loan to be guaranteed with those assets that the organization possesses at that time and that are well accepted, without relying on the grants of land-use or the animals that exist in each hacienda.

 

Being that the service of Extension and Veterinary Medicine, which is in charge of transferring technologies to the associates and sheepmen in general, needs to grow with the demand for its services, greater expenses will result.  For this reason, it may be necessary in the future to charge for visits, classifying them by sector, type of work realized, and class of associate, which shall be determined by economic condition.

 

The Wool Classification Center will need to amplify its wool warehouses, which shall be located in the area of highest sheep population, in order to buy wool directly from the producers at a superior price.  It will charge the textile industry a percentage for the cost of classification and delivery of the wool to the factories.

 

The sale of purebred sheep born in country will be able to finance the costs of maintaining the haciendas and breeding stock.  The proceeds from agricultural crops will help to equip more modern machinery that the centers require.

 

The above goals shall be attained when ANCO can obtain financial resources needed for its territorial expansion.

 

Nevertheless, ANCO must continue working with the same professionalism it has demonstrated throughout the years, which means that the personnel of Extension, Veterinary Medicine, as well as that of the Administration, must be up to date in all aspects of the sheep industry, from production to marketing.  This shall be achieved with capacitation courses, preferably in the Exterior, or through inviting experts in sheep production to Ecuador, as has been done in the past.

 

Another resource that aids the success of the project is the many institutions with which ANCO collaborates, giving technical assistance through institutional accords.  This includes the national universities, especially their Faculties of Veterinary Medicine and Agronomy, whose goal is that their students thoroughly grasp the problematic of the sheep industry and complete their graduate theses with the solid base of those experiences.

 

In the end, we are all the beneficiaries of this project: ANCO, for becoming a prestigious institution with an extensive body of experience that has its future assured because it is the driving force of making a success of and advancing the sheep industry; the small, medium-sized, and large sheepmen, whose incomes are increasing; the textile industry, which has prime wool within reach; and, at last, the country, which is able to climb a step higher in its development.

 

                                                * SHEEP INDUSTRY IN ECUADOR

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