THE VALUE NETWORK OF AN ORGANIZATION OF DAIRY CATTLE PRODUCERS IN MUNICPALITY OF XICO, VERACRUZ, MEXICO

Abstract

Objective:Characterize the growers and the dairy cattle value network in the municipality of Xico, Veracruz, based on interviews with key actors to analyze the concerns and issues and the identification of opportunity areas to improve cattle ranchers competitiveness.

Design/methodology/approach:Interviews to 30 cattle ranchers selected by targeted sampling and snowballing, semi-structured interviews with key actors, and revision of documentary information were performed, to identify producer profiles and the structure of the value network.

Results:Milk producers in Xico are the third generation dedicated to that activity; they are classified as small (83%) and medium (17%) cattle ranchers, with a mean age of 56.0 ± 12.1 years, and 30.0 ± 15.1 years of experience; they have 55.0 ± 33.8 heads per producer, producing 241 ± 156.8 L day^-1; 57% of them have mechanical milking and cold tank storage. Their marketing channels are Nestlé and Liconsa, regional cheese factories, and direct sales to consumers within the municipality. Growers interact with the Local Xico Livestock Association (LXLA) for paperwork related to cattle management and for supplies purchase.

Limitations/implications: Successors must be prepared to maintain the active in the region.

Findings/conclusions: Producers have the experience, vocation, resources, and infrastructure to produce milk offered for sale, primarily to Nestlé and Liconsa. The LXLA is the center of the network and it has the capacity to promote dairy activity to generate benefits for the chain of actors in the value network.

Keywords:value network, key actors, union organization, productive chain, associativity.