TED Case Studies

The Introduction of Sheep Into Bolivia's Camelid Herding Industry

Draft Author: Juliet Litterer, Spring 1997




Case Number
Case Mnemonic
Case Name:
406
CAMELID
Camelids and Trade


Table of Contents

  • IDENTIFICATION
  • LEGAL CLUSTERS
  • GEOGRAPHIC CLUSTERS
  • TRADE CLUSTERS
  • ENVIRONMENT CLUSTERS
  • OTHER FACTORS
  • I. Identification

    1. The Issue

    One approach to improving economic terms is the introduction or increase in production of a non-traditional crop or livestock in the economy of a developing country. The newly introduced element would be a crop or animal for which there is already a well- established international market. This allows for local agricultural or herding communities to become exporters, thereby bringing foreign currency into the country's economy and providing income for the rural poor. An alternate strategy for development would be to focus on the improvement of indigenous crops, livestock, and technologies for which there may be a smaller international demand, but through overseas marketing techniques, create a niche market for those products. This case study examines the application of the first strategy, non-traditional production for export, in the Bolivian highlands, or altiplano. It focuses on the introduction of sheep into the altiplano herding economy, replacing camelids, and is situated at the crossroads of trade, culture, development, and environment.

    2. Description

    In the Bolivian highlands, the homeland of the indigenous Aymara people, sheep have been introduced to the herding economy to the extreme detriment of the local ecosystem. The herd animals native to the region include llamas, alpacas, and vicunas, all three of which are part of the camelid [var: camelloid] family. Camelids differ from sheep in two ways that make them the appropriate livestock for the altiplano environment. First, sheep's hooves are hollow and break up the ground as they walk, causing erosion of the topsoil. The hooves of Latin American camelids are spongy and flat, and do not tend to break up topsoil because they don't sink into it. The second difference of importance in this case is the eating habits of the two animals. Sheep graze by pulling grass out by the roots, but camelid s browse, biting off only the tops of the grass stalks. When prairie grass has been pulled out of the soil by the roots, there is no plant material remaining to hold the topsoil together and keep it from being eroded by wind and rain. The erosion of topsoil, in turn, prevents new prairie grass from growing, thus leaving less grazing land for the herds. It is a cyclical problem, then, because the more sheep are included in herds, the less ability the land has to support grazing livestock, thereby creating the tendency for sheep herding to be increased even more.

    Llamas have historically been used for their high protein meat, transporting goods along the Incan mountain roads, and in religious rituals. Alpaca fur is a finer fiber, and therefore alpacas have been historically been used for their fiber. Both llamas and alpacas decreased in Bolivian sheep herds gained predominance. The resulting degradation of topsoil in the altiplano region is a problem that has been more visible and publicized in the past few years, but its roots extend back 400 years.

    In 1580, sheep were first introduced to the Bolivian altiplano by Spanish colonists. When the Spanish conquistadors arrived in Bolivia, they used religion to attempt to control the native Bolivians. Catholic missionaries established themselves in the altiplano region, and promptly denounced the use of llamas in religious rituals, using their colonial power to wear down the Aymara religion so Catholicism could take root. In addition, llama meat was outlawed in the marketplace, in an attempt to reduce the availability of llamas for religious rituals. Spain, as the colonial power in Bolivia, used this law to generate markets for its own livestock, such as sheep and cattle. This law remained intact until the 1980s, when it was challenged by an association of camelid herders and subsequently repealed by the government. (See Legal Cluster for more information.) Because of this combination of religious dogma and colonial law, sheep became increasingly central to herding in the altiplano communities and the llama lost some of its predominance, but was not eliminated. Almost 400 years later, in the 1960s, the Bolivian transportation infrastructure has been developed, decreasing the demand for llamas for transporting goods. This further challenged herders to decrease llama production.

    There is one reason central to the continuation of sheep herding after the reversal of the law prohibiting sales of llama meat: the need of Bolivia's rural poor to generate income through, and the limited foresight of aid donors supporting income - generating projects. To development professionals and aid donors, sheep simply appear to have greater potential for income generation than do llamas and alpacas.

    Sheep have a gestation period of nine months, whereas llamas have a gestation period of eleven and a half months. The shorter gestation period means that more sheep can be produced in the same period of time. In addition, sheep simply take less pasture space since they are smaller animals. The overseas market for sheep wool is quite well established, whereas there is not a large demand for alpaca or llama fiber on the world market. These three points, along with the relative familiarity of sheep to US and European donors, made the case for promotion of sheep herding as an avenue for economic development. Donors including the University of Utah and Heifer Project International, began to fund programs to establish sheep herding and wool processing as a means of income for the rural poor; this was one component of what was considered an appropriate path to economic development for Bolivia. However, issues of market competitiveness and environmental sustainability were not considered in depth, and the projects meant to help the herders actually served to destroy the soil.

    The same protectionist trends that led to the introduction of sheep into the Bolivian herding industry in European colonial times now limit the demand for Bolivian sheep wool. This is a product that can be produced within the European Union and the US, and given the trends of national protectionism that have arisen as some countries face issues of globalization of markets, the wool market is unlikely to favor fiber imported from Bolivia. The Bolivian domestic market favors traditional fibers. Thus market competitiveness makes sheep herding a difficult strategy for successful economic development.

    On the environmental issue of soil erosion, the logical response of a development community unaware of the link between sheep and soil erosion would be to increase sheep herding. In purely logical terms, as soil is eroded and less land is available for herding, it makes sense to maximize use of the remaining grazing land by raising smaller animals. Sheep are significantly smaller than llamas, which weigh an average of 280 to 350 pounds and measure 40 to 50 inches high at the withers. More sheep can be raised per acre of land, and as a result development groups which have not done proper impact assessments on sheep herding continue to increase their funding of sheep herding projects. The impact is clear -- it is a cyclical problem that requires both education within the development community and rejuvenation of the traditional herding practices and significance of camelids within the Aymara community .

    It should be noted here that not all development organizations and aid donors remain unaware or unconcerned about the erosion of altiplano topsoil. The Inter American Foundation, a US government agency, has funded Bolivian NGOs for projects in genetic improvement of camelid livestock and overseas fiber marketing. Other development organizations and Bolivian NGOs are increasingly involved in publicizing the environmental problems related to sheep herding in an altiplano ecosystem, and their voices have begun to make an impact. The most significant hurdle, the domestic law prohibiting sale of llama meat, has been cleared, and now action can be taken to improve the environmental sustainability of the Bolivian altiplano herding industry.

    3. Related Cases

    Bolivian Gold Mining
    BOLIVIA - http://gurukul.ucc.american.edu/ted/bolivia.htm


    Bolivian Coca Production
    BOLCOCA - http://gurukul.ucc.american.edu/ted/bolcoca.htm


    Cahsmere Production
    CASHMERE - http://gurukul.ucc.american.edu/ted/cashmere.htm


    Colombian Coca Production
    COLCOCA - http://gurukul.ucc.american.edu/ted/colcoca.htm


    Lebanese Cedars
    CEDARS - http:gurukul.ucc.american.edu/ted/cedars.htm


    Chile
    CHILE - http:gurukul.ucc.american.edu/ted/chile.htm


    Keyword Clusters

    Trade Product:
    Bio-geography:
    Environmental Problem:
    Domain:
    SHEEP, CAMELIDS
    ALTIPLANO - ANDES MOUNTAINS
    HABITAT
    SOUTH AMERICA

    4. Draft Author: Juliet Litterer, Spring 1997

    Table of Contents

    II. Legal Clusters

    5. Discourse and Status: AGREEment and COMplete

    The legal status of llama meat as a marketable food in Bolivia has been addressed, and the legislation process has been completed. Legislation signed in the 1980s allowed for the sale of llama meat in Bolivia and created a framework of health and sanitation standards for butchering. According to Inter American Foundation project evaluations, this has resulted in an increase in llama production, measured in absolute numbers of llamas and in the ratio of llamas to sheep in the majority of herds (Healy, Forthcoming).

    The legal status of sheep herding as an economic activity is unlikely to be challenged. This issue is more likely to be addressed and resolved in a change in herding norms and practices than in legislation. Possibilities for legislative action include quotas on sheep per acre of land, limits to number of sheep that may be imported or donated by development organizations, or ratio requirements for herders that require a specified number of camelids per sheep in a herd. Each of these three possibilities has potential to generate resistance from herders, middlemen in the sheep wool export industry, and development groups and aid donors. This is an issue which will increase in visibility with time unless it is addressed comprehensively -- providing incentives for herders to reduce sheep and increase camelids in their herds and ensuring a fair market price for llama meat (domestically) and alpaca fiber (internationally).

    6. Forum and Scope: Bolivia and Unilateral

    Bolivian domestic law was changed to allow for sale of llama meat in the marketplace. In addition, potential measures restricting development projects and funding to increase sheep herding would affect both Bolivia and donor countries.

    7. Decision Breadth: 1 (Bolivia)

    While the llama meat legislation has a very narrow breadth of impact, controls on sheep herding or quotas on camelid to sheep ratios could impact Bolivia, the US, and other donor countries.

    8. Legal Standing: Law



    Table of Contents

    III. Geographic Clusters

    9. Geographic Locations

    a. Geographic Domain:
    b. Geographic Site:
    c. Geographic Impact:
    South America
    Western South America
    Bolivia




    10. Sub-National Factors: YES

    The discrimination against the Aymara culture and norms that began under colonialism remained part of the Bolivian legal system long after Bolivia gained its independence from Spain. Along with the legislation against llama meat, the colonial government was responsible for creating the internal divide between rural Bolivians and Bolivians living in the colonial metropolis, La Paz. An attitude was cultivated within La Paz that llama meat was made illegal because it is disease-ridden and unclean, and therefore the rural communities which sustained themselves through camelid herding were backward, unclean people. This is, of course, untrue, however, there is still an urban bias against herders and llama meat is still viewed as poor people's food.

    The religious rituals involving llamas to celebrate fertility and prosperity were outlawed during colonial times and frowned upon by Catholic missionaries. The Aymara people were worshippers of "other" gods, and clearly they were discriminated against when they were forced to convert to Catholicism. The result was the disappearance of many Aymara cultural and religious rituals and the diminishing importance of the llama in their daily life.

    11. Type of Habitat: COOL



    Table of Contents

    IV. Trade Clusters

    12. Type of Measure: Import Quota

    One way to address the problem of an excess of sheep per herd would be to place quotas on imports of sheep and exports of lambswool. The imports that would be limited would be mainly those from donor agencies and international development organizations. Export quotas would decrease the desirability of sheep herding as a main source of income, but might have the side effect of driving up world market prices. This would occur because fewer exporters means a smaller supply of wool and the price would rise to a market equilibrium price higher than before the establishment of export quotas.

    13. Direct v. Indirect Impacts: DIRECT

    14. Relation of Trade Measure to Environmental Impact:

    a. Directly Related to Product:
    b. Indirectly Related to Product:
    c. Not Related to Product:
    d. Related to Process:
    Yes
    Yes

    Yes
    Llama
    Sheep

    Species Loss Land


    15. Trade Product Identification: LLAMA



    16. Economic Data

    not available

    17. Impact of Trade Restriction on Trade Competitiveness:

    Restriction of exports of sheep wool would return the focus of producers to niche markets of specialty alpaca fiber. The altiplano region has a comparative advantage in the camelid herding industry, The market for specialty fiber is not saturated as the sheep wool market is. The result of a quota on sheep wool exports would be increased competitiveness.

    18. Industry Sector: FOOD

    19. Exporter and Importer: BOLIVIA and MANY

    Table of Contents

    V. Environment Clusters



    20. Environmental Problem Type: Species Loss Land



    21. Name, Type, and Diversity of Species

    Name:
    Type:
    Diversity:
    Llama/Alpaca
    Animal/Ruminant/Camelid
    North American and South American varieties


    22. Resource Impact and Effect: Product and Scale



    23. Urgency of Problem: MEDium and Several Years



    24. Substitutes: Like Products

    Substitute alpaca fiber for sheep wool. Substitute camelid herding for sheep herding.

    Table of Contents

    VI. Other Factors

    25. Culture: YES

    Indigenous culture versus colonial culture and legislation.

    26. Trans-Boundary Issues: NO



    27. Rights: YES

    The rights of the Aymara people were determined by the colonial government, and the negative impacts of the colonial rule remained until just a decade ago because the colonial government left its legacy behind in discriminating legislation.

    28. Relevant Literature

    Burns-Ardell, Erin, "Prometa: Tackling Tarija's Environmental Woes and Foes," The Bolivian Times, November 10 - 17, 1995.

    Caro, Deborah A., "The Socioeconomic and Cultural Context of Andean Pastoralism," Sustainable Crop-Livestock Systems for the Bolivian Highlands: Proceedings of an SR-CRSP Workshop, University of Missouri, 1992.

    Hamida, Essma Ben, "Development: The Rape of the Andean Agricultural Heritage," Inter Press Service, May 2, 1988.

    Healy, Kevin. Forthcoming.

    International Llama Association. The Llama Catalog: 1996-97 Directory of Llama Products and Services. ILA: Denver, 1996.

    US Department of Commerce, "Bolivia: Licensing Abroad," NTIS Foreign Trade Opportunities, January 17, 1991.

    Walker, Bruce D. "Recent Agreements by International Lending and Financial Institutions," The Washington Post, October 10, 1983.

    Heifer Project International
    http://www.intellinet.com/Heifer/LatinAmericaCaribbean.html
    Llama- Market
    http://llama-market.com/640/paddock1.htm

    Univers ity of Missouri Small Ruminant Collaborative Research and Support Program (SR-CRSP)
    http://www.ssu.missouri.edu/ssu/SRCRSP/bolivia.htm



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