The agricultural development of Uruguay

74255  July 25, 1951 His Excellency Andres Eartinez Trueba ?renident of the Oriental l~blic or Uruguay Montevideo, Uruguay Your Excellency: ·vie have the honor to transmit herewith the Report of the J,iission to Uruguay, headed by Sir hiaurice Hutton, which was organized jointly by the International Bank for Heconstruction and Development and the Food and Agriculture Organization of the United Nations at the request of the Government of Uruguay. Although neither the Bank nor FAO has yet had the opportun- ity to study the Report in deto.il, our examination of it has convinced us that it proviaes an objective analysis of the major factors relating to the continued development of the agricultural and pastoral economy of Uruguay. We believe that the recommenda- tions of the l1~ission are deserving of the most careful considera- tion by the Governr.1ent and people of Uruguay so that a sound and effective pro[ram may eventuate fror.l it. Both the Bank and FAO will follow vvi th interest the action taken by your Government in connection with the Report. ~1e wish to assure Your Excellency of our readiness to render any assist- ance tr~t may be appropriate and helpful d~~~.:<.:,"\~ ;,ltOrlS~dera t.i on . ;'".· \ ~~. ~. ... " of the H.eport and the formulation and e~c)tion ,. of a program of ~ ,/ --....,- agricultural development. ! f i  We wish to express our appreciation for the many courtesies shown to the Lission during their sojourn in Uruguay. ··;ii th the renewed expression of our highest sentiments, we are, Sincerely yours, c--·-) /: ., ,.. r----- -/~~~. It· /. / r:,_<~. £..._ r/ ~/ Eugene R. Black, President International Bank for Reconstruction and Development .. ..,..,... --·1 ,..,1 ~ '\ .. : -~~ . .. /' /j< (~ p-~/ 6) -~t Norris E. Dodd, Director-General Food and Agriculture Organization of the United Nations ii  Chesterfield House London, ·.ci .1, England July 15, 1951 1~:r. Eur,ene R. :dlack President International Bank for Reconstruction and Developzr.ent Yiashington, D. C. lvir • lJ orris E • Dodd Director-General Food and hgriculture Organization of the United Nations Rome, Italy l\:~ dear .President, my dear Director-General: The 1..iission -..vhich you appointed, at the request of the Government of Uruguay, "to undertake a survey of the agricultural problems and require- ments of truguay" has prepared the attached report. We were instructed to make recommendations "as to how agricultural and pastoral production can be stimulated and further improved, costs of production reduced, and r:1arketing methods imprO\red". The series of inter- related recont~endations which are presented in the report are, in our judg- ment, realistic and practicable. They constitute a broad program of agricultural development which, if [>Ut intu effect, would be of the greatest assistance to Uruguay. ~ie have little doubt that their inple- mentation lies within the technical and econonic resources of Uruguay. F_fter a preliminary meeting in 'JashinBton, D.c., early in October 1950, the Lissioa spent about tvm months in Uruguay in an intensive examination of the existing and rotential capacities of the total aericultural economy. Thereafter, each member prepared his individual contribution relating to his ov1n specialized field of knowledge. At meetings held in l!ashington, D.C., iii the recomn1endations were agreed upon and the report itself was drafted. The report is unanimous, all members of the Mission supporting its recom- mendations. During our stay in Uruguay, the members of the Hission received invaluable assistance from many people, including Government officials, ranchers, farmers, university research workers, merchants, and bankers. To all of these we wish to express our most sincere thanks. In particu- lar, we were much indebted to Sr. Esteban F. Campal, President of the .tlreparatory Committee for Agriculture and Livestock Planning, and his colleagues, who unreservedly afforded us all the information and assist- ance which lay in their power. Our report is now subnitted, with our respects. 1,JAURICE I. HUTTON FOSTER F. ELLIOTT KARL BRANDT .A. H. EA'lli-:DER C. P. l.id:EEKAN W. H. PIERRE DAVID &-~VAGE LEOHAED G. SCHuEELEBER HANS G. -dli "il\11I··:ANN. iv  THE l:iiSSlON 11,IAURIG"'E I •. RUTTGN, C•.l!.G. Chief of Mission Director; Glaxo Laboratories, Ltd., England,. North British & I·fercantile Insurance Co. Ltd., England FOSTLH F. ELLIOTT Deputv Chief of I,iission Specialist in Agricultural Production Economics Associat6 Chief, Bureau of Agricultural Econornics ·United States Departli'lent of .Agriculture I<.ARL BRANDT Specialist in l·[c:,rketing Economist, Food Research Institute, and Prices Stanford University, United States A. H. LhUl.,JDER Specialist in Agricultural Acting Chief, Agricultural Extension Institutions and Services Branch, F'ood and Agriculture Organization of the United Nations C. P. l1;1cl':.J;EKf.N §pecialist in Animal Superintendent, huakura Experi- Husbandru and Dairyj:M mental Station, Ne:ll Zeale.nd W. H. PIEHRE Specialist in Soils and Head, Agronomy Department, Crops Iowa State College, United States DB.VID SA-VAGE Specialist in Pastur~ Superintendent, Southern Great and Range J..'anage1:1ent Plains Field Station, United States DepE,.rtr.lent of Agriculture ~ON.H.RD G. .SCtLbTE.EBEH Specialist in t.gricul~ural Agricultural Engineer, Bureau of EnRineering Plant Industry, Soils, and Agri- cultural EngL~eering, United States Department of Agriculture HANS G. \,w-INK1L.;ANN Specialist in Forestry Director, Swiss Forest Economy .hssociation OIJi.F S. AAJ.:oDT Consultant to the Iv1ission Principal Agronomist, Bureau of Plant Industry, Soils, and agricultural Engineering, United States Department of Agriculture EUGhNE S. TftOY Administrative Lssistant v  DEPARTMENTS I. AR.TIGAS 7. RIO NEGRO 14. ROCHA SALTO 8 DURAZNO 15 COLONIA RIVERA 9 TREINTA Y TRES 16 SAN JOSE 4 PAYSANDU 10 SORIANO 17 CANELONES 5 TACUAREMBO II FLORES 18. MALDONADO 6. CERRO LARGO 12. FLORIDA 19. MONTEVIDEO 13. LA VALLEJA < URUGUAY HIGHWAYS RAILWAYS 20 40 60 80 100 DEPARTMENTAL BOUNDARIES KILOMETERS INTERNATIONAL BOUNDARIES  TABLE OF CONTEIYT S Chapter GENEHAL INTRODUCTION .................................... 1 PART I LAND USE AND P~10JlJCTION PRACTICES Introduction • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • . • • . • • • 5 I. Improved Use of Grasslands....................... 9 II. Improvement of Permanent Grassl~~ds •••••••••••••• 17 III. Fodder Reserves ••..•••••••••••••••••••••••••••••• 22 IV. Improvement in the Pattern of Land Use and in Soil Productivity................................... 29 v. The Use of Fertilizers and LL~e ................. . 41 VI. Improvements in Productivity by Irrigation, Tillage Practices, and "~'Teed and Pest Control ... 48 VII. The Control of Erosion ••••••••••••••••••••••••••• 51 VIII. Control of Animal Disease ••••••••••••••••••••.••• 54 IX. Improvement in Animal Husbandry • • • . • • . • • • • • . • . . • • 62 X. Improvement of the Dairy Indust~ ••.••••••••••••• 73 XI. Special Crops •••••••••••••••••••••••••••••••••••• 89 XII. Orchards, Vineyards, and Truck Crops............. 94 XIII. Forestry • • • • • • • • • • • • • • • • • • • • . . . • . • • • • . • • • • • • • . • • • 99 XIV. The l\ocha-Treinta y Tres ~eclamation Project • • • • • 114 vi Chapter PART II TRfl.ESPOHTATIOH, STOBAGE AND MABKETiiTG Introduction.................................... 118 I. Transportation.................................. 120 II. Standards and Grades, and Export Quality Controls 122 III. Packing Sheds and 17holesale Auctions •••••••••••• 12h IV. Cold Storage and Cooling Plants ••••••••••••••••• 127 V. :Marketing Recommendations for Specific Commodities 130 PART III THE OHGANIZATION O.:i" H.ESEitRCH AND TECHiJICAL SEHVICES Introduction • • • • • • • • • • . • • • . • • • • • • • • . . • . • • • • • • • • • 140 I. The Integration of ~lesearch, Education and Techni- cal Services • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 141 II. The Organization of ~te search • • • • • • • • • • • • • • • • • • • • lh3 III. The National Agricultural Advisory Service • • • • • • 153 IV. The 1egulatory and Inspection Service........... 161 V. The Official Seed Service ••••••••••••••••••••••• 166 PA~lT TV ECOHOLIC COl-TSIDEl1ATIONS Introduction.................................... 170 Prices and Price Poli~ ••••••••••••••••.•••••••• 171 The Economic Limitatio~s on Capital Investment •• 175 The Nature of Capital Requirements.............. 182 Incentives...................................... 184 Estimate of Possible Increase in Output 186 vii  NOTES A. Deferred and Hotational Grazing e ••••••••••.•.• . . . . . . . 188 B.. Introduction of Better Legumes and Grasses • • • • •.• • • • 194 C•. SilaGe and Hay Conservation .........................·• 201 D. Suggested Crop Rotations and Estimated Fertilizer and Lime Needs for Achieving Improved Use of Arable Lands •••.••••••••••••.• •••••••••••••• ·• • • • • • • 208 E. The Need of a Soil Sur-rrey Program •••••••••••••• •... 217 F. Livestock Diseases ••••••••••••••••••••••••••••••••• 222 G. Improvement of :r:.~ilk l,;_;:arketing • • • • • • • • • • • • • • • • • • • • • • 228 viii  GEITERA.L llJT:tOLUCTION The Joint l!Iission to Uruguay of the International Bank for ~reconstruction and Development and the Food and Agriculture Organization of the United Hations was instructed: "To undertake a sur-vey of the agricultural problems and requirements of Uruguay, 11vith a viet~r to making recommendations as to how agricultural and pastoral production can be st~nulated and further improved, costs of production reduced, and marketing methods improved.... It is contemplated that the recommenda- tions would outline a broad program of agricultural development that would be realistic and practical. Any recommendations for investment would take into consideration the capacities of the Uruguayan economy and would include i:r1dications, to the extent possible, of priorities. "The purpose of the }fission would be to provide sufficiently specific reco~~endations so that the Government of Uruguay could appraise alternative agricultural policies, undertake actions, proceed with more detailed studies, or arrange for such fur- ther, more specific, technical assistance as may be required to car~y out the recommendations of the l.lission. It v.rould not be contemplated that projects or problems would be covered in complete detail to the point of final analysis of all matters of spe- cific engineering considerations, exact locations of projects or actual installations." This Report contains a series of specific recommendations, which together are designed to constitute a coherent program for the further development and utilization of the agricultural resources of Uruguay. They can be grouped into four lines of parallel effort: 1 - To control animal diseases, especially foot-and-mouth disease and brucellosis. Contagious diseases and their after- effects are probably the most important single factor limiting 1  the full utilization of existing livestock resources. 2 - To improve existing grazing and arable land resources by: (a) The introduction of high-yielding legumes through- out the permanent and temporary pastures of the count~J; (b) The creation of feed reserves of pastures and forage crops to meet the frequently recurring periods of shortage; {c) The introduction of high-yielding legumes in rota- tion with cash crops :i.n order to improve the yields of such crops; (d) The modification of dairJing from reliance on con- centrated feeds to reliance on improved pastures; (e) The control of pests and diseases in the fruit, wine-grape, and truck-crop industries. 3 - To improve the grading, transportation, storage and marketing of agricultural co~~odities. 4 - To reorganize and extend the research, adviso~J, and other technical services, and to bring them into more intL~ate contact ·with the practical work of producers throughout the country. These recommendations, tal~en as a \'!hole, constitute a major modification of the total agricultural economy. The Mission has been impressed by the need for concentrated effort along the lines proposed. After mal~ing remarkable progress for long periods 2 ll! the past, the agricultural ecoDO~J of Uruguay is approaching a static condition, which even involves the danger of decline. Such a decline, or even a long-continued stationary situa- tion, is not necessary. The Hission sees the definite possi- bility of increasing national output and efficiency in an import- ant degree. Its recommendations point the way toward lower costs and higher yields of plants and animal products per hectare, per man-hour, and per unit of invested capital. If these potentialities are to be realized, many new practices must be adopted trxoughout the count~ under a variety of conditions. The changes must, however, be cautiously execu- ted. Technical iTh~ovations must be locally tested lunder practical farming conditions before they are applied on a large scale, and their economic consequences must be fully evaluated. It is for this reason that the l.iission has placed much emphasis on the ex- pansion of research and advisory services. T!ith improved experi- mental and demonstration facilities, the research and advisory organizations can play a critically important part in testing and evaluating the proposed measures and in promoting their acceptance throughout the count~J. The ~!lission does not wish to imply that the introduction of new practices should be a.pproached timidly or with delay. Oppor- tunities for progress in increasing output and lovvering unit costs of production exist in large measure. The recommendations made in this Report have all been based on practices that have 3 been tested and have proved successful elsewhere. The Hission views the prospect of agricultural development vdth optimism and confidence and urges that energetic action be begun at the earli- est possible time if satisfactor.y results are to be achieved within the co~ing five to ten years. Note: ~"Jherever the term "agriculture" is used in this Report, it refers comprehensively to the utilization of land .for the pro- duction of food, feed, fibers, and forest products. Hence it includes the production of .fann crops, livestock, livestock products, vegetables, fruits, and wood. 4  PART I lAND USE AND P::lODUCTIOH P.3.ltCTICES The first part of this Report makes recor.F:!endations for changes in land use and in proG.uction practices. These recommen- dations are designed to ameliorate a number of conditions, summarized in the follmr.J-.1.11g paragraphs, wh:i.ch stand in the way of full realization of the possibilities for agricultural de- velopment in Uruguay. Uruguay has a favorable climate for a pastoral economy, but the natural grasslands undergo periods of drought in st111'1'Tier and of cold weather in vdnter ·when the feed supplies on grazing land decline, especially L~ the large portion of the count~J which has a thin cover of soil over the basic rock formation. The re- current scarcity of grass on natural pastures and the resultant setbacks in growth and losses in 1rreight of the animals have a ma:::ked impact upon the entire livestock econonw, and particularly on the production of beef. rlhile natural conditions cannot be changed, methods of managing grasslands can be adapted to intermittent drought and variable soils so that harmful e.ffects on the quality and costs of livestock production can be greatly diminished. In addition to improving permanent and temporar"~J pastures, the consequences of seasonal decline Ln grass gro~~h can be also diminished by the accumulation of fodder reserves. These reserves can be produced at low cost by harvesti.11g excess forage during the lush surplus season and by growing special fodder crops. This practice can accomplish a multiple econonuc goal -- conservation of feed for grazing,application of reserve supplies directly to purposes of growth, improvement in the quality of meat, and faster turnover of herds on the range. Eany of the soils of Uruguay are deficient in nitrogen, phosphorus, and lime. Soil acidity and the shortage of phosphorus are partly responsible for the almost complete absence of effect- ive nitrogen-collecting legU.liles. The shortage of legumes i:n pastures seriously l~nits the total amoltnt and nutritive value of the feed produced, since grass vrill not grovr vigorously in the absence of an adequate supply of nitrogen and since legumes themselves contribute materially to the protein and mineral con- tent of pasture feed. The deficiency in lirr~ Bust also be over- come because legurninous plants are averse to acid soils. This presents no serious obstacle, because limestone deposits of good quality are found in most parts of the country. The deficiency in phospho~~s presents greater difficulties. The necessary raw phosphates and sulphur or superphosphates must be imported and sulphur, at least, is in markedly short supply. The widespread incidence of animal disease is a most serious handicap to the livestocl<: inQust~J. Unnecessarily high losses are caused by foot-and-mouth disease, brucellosis, tick fever, sheep scab, mastitis, and tuberculosis. Energetic action by the Government and by producers is imperative. Enough is lmmm re- garding the control of all these diseases to ensure that the 6 existing rate of economic loss can be substantially reduced. Soil erosion is observable in various parts of the country. Fortunately, the reme~ for the damage to the topsoil is partly the same cls the remedy for the deficiency jn nitrogen: the introduction of leg~minous plants into pastures, as well as into arable land in rotat:..on ,~;ith cash crops. Increased terracing and afforestation cru1 be of further assistance. All land that is subject to excessive water or ~rind erosion, to unavoidable flooding, or that is waste, should be afforested. Tree culture on livestock ranches can contribute to the solution of such problems as v.ratex· conservation and the securing of sbade and shelter. It will also help to satisfy the country's need for fuel and lumber. Various adjustments should be made to utilize the natural grov~h of succulent range fodder mo~e effectively and to coordi- nate the pastoral economywith crop farming on arable land so that cash crops would alternate with fertility-replenishing and soil- conserving fodder crops. L~proved soil husban~J on arable land with special emphasis on suitable rotations and cultural practi- ces is essential. In addition, considerable modifications are necessary in the dairJ industry if full advantace is to be taken of the favorable natural conditions that exist for low-cost dai~J production. The changes described amount to an intensification of agri- culture; a higher output per hectare v1i th the aid of a higher input in management, labor, and capital; the use of more efficient 7 plants and animals; ~~d better coordination of the various factors of production. The li..'rles of action proposed nay appear to be rather numerous and difficult, and in many cases e:~..rpensive, yet they present no really formidable difficulties and are a necessary development i f progress is to be made. Th~ probably cannot all be adopted at once, but steady even i f limted progress in the recommended direction is important. Hence, there should be no hesitation in making a start on implementing the various recommendations. 8  CHAPI'ER I Titf.f'~~OV:SD USE OF G.3ASSLANDS The grasslands of Uruguay sholud respond favorably to many of the practices which, under similar conditions elsewhere, have resulted in higher sustained yields. The foll01r..w1g adjustments in the utilization of ~rasslands are therefore recommended. 1. The subdivision o~ pastures by fences should be substantially increased and water su;eplies should be made accessible to each subdi•nsion. The purpose of this recommendation is to make range forage more useful; livestock 1vill be better nourished and range forage will be more uniformly used. Smaller enclosures -r;ill lead to more even grazing of the whole range and will reduce excessive grazing that may occur near vvidely separated supplies of water. The production of reserve feed in the form of silage, hay or standing grass 1v.ill be increased, because during the season of lush gro~~h, certain enclosures can be reserved for mowing or ve~ late grazing. Subdivisions are essential, also, to the proper ~anagement of livestock. Small pastures facilitate breeding ru1d thereby in- crease calving and lalllbing. Subdivisions allov; the segregation of livestock by classes, ages, or sex, and facilitate range management through the periodic exclusion of sheep, cattle, or all livestock. Each area of land that is to be managed as an integrated 9 unit for grazing purposes should be subc.ivided into not less than fifteen enclosUl~es. Experience has sho~n that this is the mini- mum number needed to achieve the purposes 1Nhich proper sub eli vision can serve. The advantages of subdivisions soon defray the costs of additional fences and wate~ developmen~ and thereafter contribute to profits. The initial costs can be kept to a minimum by erect- ing simple but effective fences conveniently arranged with respect to water. Division fences need not be so -vvell constructed as those now legally required in Uruguay for ranch boundaries. Fences 20 to 30 centimeters lower are used satisfactoril~r in other countries. To some extent electric fences can be used to reduce costs of subdi viciL'1g dairy pastures or pastures used pri- marily for beef cattle and horses. Livestock do not use grass efficiently unless they have access to a good suppl7 of -r;ater nearby. The daily vrater re- quirements of beef cattle are 40 to 43 liters per head. Dairy cattle need about 30 percent 1rrore. A sheep requires three to four liters a day. It is desirable that the grass should not be more than 800 meters from rrater unless costs of providing water aake this inpossible. The increase in the value of beef cattle on small, Yrell-watered pastures usually offsets the a deli tional costs involved. A program of constructing inexpensive artificial ponds for watering livestock should be adopted for most of the rolling prairies of Uruguay, to supply the needs aris~~g out of further 10 subdivision of pastures. Artificial ponds have proved to be the practical solution on similar ranges in other countries. 0ontra~J to a popular notion, water stored in ti1is manner is completely satisfactory for livestock. The development of natural springs and their protection from sedimentation is also a pl'actical ,,.,ay of improving ·water supplies for stock in many parts of the country. Expansion of this cheap and effective method of water development should be encouraged. It is desirable to fence the springs and ponds and some of the watersheds above them and to plant trees around them to reduce silting. Piping 1'rater from the springs or ponds to adjacent troughs or ta.""lks is advisable. '7here ponds are not feasible and springs are not available, vrells are recommended in spite of the high costs involved. ~'Jells should be located where they can :)l"'Ovide Y.rater to several pasture divisions and sho"'-lld be on the leew·ard side of the pastu!:"e ·where the animals are less inclined to graze, since livestock tend to graze into the wind. Locating ponds and v.rells in less accessible parts of the area, or where grass is less palatable, promotes more unifo~ grazing. 2. Stockmen and research vrorkers should conduct com- parative gra~ing trials to determine the best combina- tion and optim~~ number of cattle and sheep on the range, the timing of restL~g and grazing periods in each enclosure ( 11 deferredn grazing), and the sequence of grazing by sex ll  and age groups ("rotational" e;razing) for different sets of range condition~. Sheep and cattle are commonly run together continuously on the same land in Uruguay. This practice is frequently modified by reducing or eliminating sheep for a few r:10nths from pastures used for fattening cattle. A method that has proven successful in parts of North America consists of grazing a pasture ·with sheep for a few years, follov;ed by the exclusive grazing of cattle. 3.otation of this kind can be done in such a manner that the forage is alternately improved in condition for both types of livestock. It is i.l:1portant to deterrrj_ne the proper numter of animals to be carried on the range for its most effective use. Tests should be made of various rates of stocking v·ri th different combi- nations of sheep and cattle and of different deferment periods for each class of livestock. Under the highly variable climatic conditions of Uruguay, it is extrenely difficult to keep a range pro1Jerly stocked throughout the year. Stocking to capacity for favorable seasons may result in severe losses during adverse periods, vrhile vraste- ful use of range forage is certain to occur in good seasons if the carrying load of livestock is ra.intained at a level low enough to weather severe droughts. liuch can be done to maintain a high degree of proper use on a yearly basis by making adequate pi·ovision for reserve feed. Other alternatives a:.."'e to adjust the 12. culling of cows and ewes and the sale of steers, lambs, and wethers to coincide closely with available forage. It has been demonstrated throughout the major grazing regions of the world that net returns from moderate use of ranc;e foi·age, lear..t11g a reasonable reserve of unused forage stubble on the land at the end of the growi11g season, surpass those from excessive use. A reasonable a.mo,mt of unused top growth (possibly one to tvm inches on short grasses and three to four inches on tall), reduces evaporation, encourages the conservation and penetration of moisture, and controls erosion. Increased root development, made possible by conservative grazing, enables the plant better to tvithstand drought, remain green longer, and produce more and better feed. In contrast with the nor:aal ster.mr.f development of rr:nge grasses in UruEUay, most of the native grasses, when affor- ded an opportunity, are capable of producing a rich leafy grmvth of satisfactory feed for purposes of fattening, haying or ensiling. A temporary reduction in livestock numbers may be necessary to bring about the substantial improvement of range forage that is possible in Uruguay. Tl~ advantages in the long ~Qn are so gJ."'eat, however, that trials, both on a research and ranch basis, should certainly be conducted. If a temporary reduction is re- quired, it will of course be necessary to decide whether the num- ber of cattle or sheep will be the more heav:i.ly affected. rrDeferred11 grazing consists of excluding livestock from certain enclosed parts of a pasture unit tmtil the optimal growth of plants is reached; the thorough, even and quick grazing down 13 of the forage; the concentrated manuring of the enclosure; and the subsequent evacuation of livestock from the enclosure for replenishing of the gro·wth. One i_rnportant factor is that the grass of some enclosures can be preserved durL~g the season of most prolific grmvth for storage in the form of silage or hay as energency reserves for periods of feed scarcity. "Rotational" grazing is a refinement of the technique of de- ferred grazing on a given enclosure. A herd is divided into separate groups according to age, sex, or other characteristics, and each group is ad-mitted to the enclosures in such sequence that the most desirable forage is given to the group ·which will return the highest money value per un~t of fodder. Compared with continuous moderate grazing, the method of controlled rotational grazing has the advantage of alternation between periods of complete rest for the grass and periods of very intensive grazing and manuring. By resting the vegetation at frequent intervals there can be subsequent heaV'J stoc1:ing, jf the animals are E:oved before they can cause excessive use of the enclosure. Periodic exclusion of livestock during the grass-growing season perrn.its the plants to develop a deeper and wider root systemjf 'l,hus the more appetizing and therefore more closely- grazed plants are better able to compete a"'J.d to produce a maximum of surface growth. Plants are better able to withstand frequent periods of drought when they are protected at intervals from grazing. 14  In order to obtali1 the full benefit from deferred and rota- tional grazing -- substantial i.mpro1tement in the vegetation and thereby an increased car~ring capacity -- it may be necessalJr at first to reduce the livestocl<: numbers per hectare below the nu.r:1- bsr carried under continuous moderate grazing. The ultllJate advantage is fully sufficient, however, to justify such a temporar.y reduction. ::totational grazing and deferred grazing, w·hen carefully plam1ed and conducted, have resulted in great improvement of the vegetation, increased carrying capacity, and improved livestock production in l'~ew Zealand and elsewhere. The s>Jstem yields reserve feed as well, in the form of silage, hay, or standir.g grass, and it would be important to investigate the extent to vrhich it might be introduced successfully. 1 11ile the experience Y!ith strict rotational grazing has not been uniform, the best results have been obtained on the more productive pastures.!/ 3. Consideration should be given to the advantages of planting trees on pe1~~anent gr~~slands for shade and shelter of livestock. A larger amount of the o}en rangeland could advantageously be devoted to the planting of groups of trees for shade and shelter. The wind-break value of the belts could be increased by the use of louver and more densely growing shrubs along 1Yith eucalyptus trees. See liote A, page 188, aJ.so Jour.r1al of ,(anc;e 1a~5ement, .American .society of n.anee ~.~anagemont' January. 1950. 1.5 Varieties of eucalyptus and other trees should be chosen which yield quality lumber as vYell as firewood. The possible advantages of planting scattered trees instead of the present technique of gro"V~ring patches of woodlots with a high densi.ty of trees should be explored. I.Iore t.ree plantings vdll serve the multiple purpose of dis- tributing, sheltering, and shading grazing herds, reducing the erosive effects of livestock use on the soil, ar1d offering addi- tional forest supplies, as discussed later in this report. 16  CHAPTER II The introduction of better legumes and grasses, if this can be economically achieved, is perhaps the most important contribu- tion which could be made to tl-x:; pennanent grasslands of Uruguay. The existing grasslands are plainly capable of supportD1g a large and relatively efficient livestock industry, but the possibili- ties of much higher standards of productivity are so great and the Lmportance to the national wealth is so significant, that the establishment of introduced species of legumes and grasses, especially legumes, should be given the highest priority in the national interest. 1. All appropriate methods on the largest scale possible should be used to determine which strains, species, and mixtures of legumes and grasses give the best results in improving the productivity of permanent grasslands for different seasons, soils and management conditions. Plants should be tested in field trials for lime and phosphates needs. Immediate steps ~hould be taken to facilitate the importation and increased availability of improved forage seeds for 1r.ride scale testing in the country .Y The research program for developing, testing, and increasing the availability of improved grasses and legumes in Uruguay should !/ See also ?a-rt III, Chapter V, pap;e 166. 17 be greatly expanded, energetically pursued, and fully supported with adequate facilities, labor, land, equipment, and technical personnel. Economies can be effected by tal-~ing full advantage of research findings, the results of plant breeding, and procedures devised under similar conditions elsewhere in the world. Field-scale seeding tests should be undertaken at once and made a continuing phase of the research program. R-rnphasis should be given to testing strains of species Yrhich may lead to discovexy of those most adaptable.!/ Field tests should not await the final results of more intensive research. Interested fanners and stock- men might institute such field tests promptly with the technical advice and active assistance of research and advisory officials. The best methods of seeding and self-propagation of the range vegetation should be determined in combination 1vith tests for the best species and strains of species. Methods to be tested should include seeding by airplane, scarification of the ~xrface by harrows and dish:s, and mal::ing shallow contour furrows.?./ 1/ Legumes worthy of iwaediate trial are Trifoli~~ subterraneum, - Lotus corniculatus and Lotus uliginosus, Trifolium nrocumbens and Trifolium dubium, and Lespedeza stipulacea a."ld Lespedeza striata. Grasses showing promise include the Brazilian strain Ho. 284 of Lolium multiflorum, Bromus catharticus, li'estuca elatior, ?halaris tuberosa, Dactylis glor.1erata, se7eral varie- ties of Andropogon, ~=>aspalum rotatum, and ?aspalt4"':1 dilatatum. 2/ Each set of seedings should be tested on (l) deep fertile soil - containin~ a good cover of native grass, (2) shallow infertile soil possessing a thin natural cover, and (3) intermediate soil and cover conditions. The tests should provide comparisons of different methods of introduction ranging from oversee ding v.rith- out coverage to smving on prepared seedbeds. 18  2. The response of permanent gras~lan~ to lime and phosphates should be studied in 1videly sca~tered. field tests and observational trials un0er practical range conditions in various soil areas of the c~tmtry. It is questionable whether economic conditions permit profit- able use of lime or fertilizer on pennanent grassland, except on soils of high quality. It is nevertheless essential to explore the response of ra'1ge land in the various soil and climatic areas of the countr~r. Economic feasibility can be deterr:lined only "1.-rhen the relation of input of lime and phosphates per hectare to the output o~ forage is known. This relationship depends in turn on the type and consu.rnptive capacity of the forage plants and on the availability of nitrogen supplied to the grasses by vigorous legume grovrth. 3. A comprehensive test~_ng program should ~ developed for specific methods of eradicating various tJ~es of weeds and shrubs, such as Eupatorium, Ba_cci?-aris, Carduus, Cynara_.t_Erosopis, and ']entaurea. Large areas of permanent grassland are covered ~"Tith weeds, shrubs, and brush which are unpalatable to livestock and deprive the useful forage plants of space, water, and nutrients, particu- larly on the better soils. Agricultural tecr.u1ology has made rapid advances in recent years in Iaechanical and chemical Y:reed control anc exterrd.nation. In view of the great benefits to be derived by the stoclDUen, 19 it may be expected that the conquest of weeds on pastures will progress rapidly as soon as the specific techniques and the cost of their application have been determined and publicized. 4. Light cultivation -- renovati~~ or scarification is encourag:L'1g the _establishment of s~edl::i.ngs an~ the penet.ra- alreaGy present on the lan~. This tillage practice may be used to advante.;ze in conjtm.ction Y.rith seedings of in-troduced zrassos and. legmnes. It has proved to be a useful method of encouraging natural reseeding and the estab- lishment of such cool-season grasses as Br~ catharti~~ and ------ IJolium multiflorum. ---------- ::.?.enovation is helpful also in controlling annual vreeds vrhich thicl:ly infest many natural pastures. The operations may be per- formed with harrovrs of the disk, spike-tooth, or spring-tooth type. Shallow furrows established on the contour also may be helpful in controlling rnnoff 1:1ate::.... s and providing strips -..-v:Lth more moisture for the establishment of improved grasses and legumes. 5. Earthen or other structures to divert runoff water ~natural channels and to spreC!-d it on adjacent range lands are recommenc2ed as a practical and effective nethod of conserving moisture and improving the uroduction of range forage. Diversion dams have been used with success elsewhere on rolling terrain similar to t.hat of Uruguay. The diversions are constructed 20 Trith sufficient gradient to carry 1vater to smooth slopes of ad- jacent land. Furrows near the end of the eliversion dam hel:} fur- ther to distribute the water. The structures are not only highly effective in providing additional water for range improvement but help to control erosion farther do1:m the watershed. Grazing capacities of the French, Sriiss, and Italian Alps and of the western range of North America have been greatly increased vrhere this practice has been applied. 21  CHAPTER III FODJE~i. J..BSERVES 2rom examination of the climatic records of the country and of the production records of r:m.ny ranchers, it is evident that efficient husban~J requires the provision of reserves of feed for periods of drought which may extend up to one hundred days. Only a minority of livestock operators conserve adequate supplies. Equally important with provision against protracted periods of drought is the need to safeguard livestock against the feed shortage resulting from temporary or intermittent periods of arrested pasture grmvth due to drought or cold weather. 1. A strong effort should be made to provide ample re- serves of stored feed in the form of silage, hay or binder- harvested "bundle feedu, as an insurance against drought and to supplement grazing during the seasons of poorest pasture conditions. The absence of adequate feed reserves ine,ntably forces heavier use of the grasslands in periods of drought. This together 1Yith the fact that drought naturally retards the grovvth of grass soon sharply reduces the volmne of feed available. In turn, a higher proportion of the remaining feed must go to maintain the bod,y weight of the animals and less is used for growth and gain. Yihen such a situation is prolonged both grovvth and gain are wiped out completely and severe economic loss occurs. Livestock ranchers of t Uruguay have experienced such losses on numerous occasions L~ the 22 past ~"1d Ylill continue to do so unless more attention is given to the development of ade~~ate fedder reserves. As a protection against recurring periods of severe drought all stock ranches should attempt to accuJnulate fodder reserves of five lcilograms of hay or its equivalent in silage for each cattle unit per day for one hundred days. This amounts to one-half ton of hay or its equivalent in silage per head for six million head of adult cattle. Of this foclder reserve of three million tons, one fourth to one third. should be fed to the stock and replaced every year, thus renewing the total reserve every three to four years. This is an ambitious program, but it should be accepted as a goal because of its great value to the agricultural econo~J. l0ith native grasses as the principal i f not the exclusive diet of most livestock, the current lack of supplementary forage subjects the livestock to constantly recurring periods of under- feeding and occasionally of starvation. Feed reserves ~vill improve the breeding, developing, and fattening of livestock and could reduce by one to two years the period now usually required to bring steers into marketable condition. This would approach the average marlceting age in other beef-producing countries. In spite of fairly even distribution of rainfall in normal years, the growth of feed on permanent pastures fluctuates widely during the seasons of the year. The lJational Corronission for Study- ing the Forage Problem found that in 1947-48 the average yield of forage on permanent pastures was nearly twice as high in spring 23 and fall as in sunnner and v;inter. At present almost no fodder is harvested for storage as a reserve and pastures are in general grazed closely throughout the year. Hence seasonal shortages of feed for livestock are found on nearly all ranches and farms. Hany of the more progressive ranchers, aware of this situation, groY; a limited hectarage of Y.rinter grain, especially oats, for tempora~J winter grazing. ·rhe government has encouraged this practice, but cultivation of winter oats neither wholly overcomes the vdnter feed shortages nor diminishes the summer shortages which are an even greater challenge. This uneconomic situation of L~sufficient feed reserves calls for adjustments in land use both in the livestocl-: ranch areas 1'd.th a small proportion of arable land and in the smaller crop-producing areas with a high proportion of arable land. IIany of the principal native grasses found in Urugua:r can produce excellent silage or hay crops if grazing is properly managed. These grasses have, horrever, suffered from many years of over- grazing forced by droughts and now rarely produce silage or hay of good quality. A possible solution, as indicated by the practices of leading Uruguayan stockmen, is to relieve the grazing load and defer grazing often enough to enable the plants to regain their iru1erent vigor and their ability to produce a heavy growth of leafy forage. Other remedies consist of li1proving the range by renovation of the turf and of introducing better species of grasses and legumes. 24  liorring the ;;rass of pastures on which grazing has been de- ferred or which were otherrrise improved and storing the silage or hay should be adopted as a common practice. IIodern silage and haying e~~ipment will be required if this is to be done on a sufficiently large scale. Some of the deeper and better soils on most ranches could be set aside to produce silage, hay, or bundle feed to supplement the range forage. Alfalfa, hybrid corn, improved sorghum varieties, Sudan grass, and other grasses and legumes should be more widely tested and gr~m for this purpose. 2. Increased mechanization is necessa~ for expanded feed conservation and should be promoted with all appropri- ate neans. Present harvesting methods and equipment are inadequate to supply large feed reserves. The connaon practice of hand-loading hay both in the field and at storage points can provide only small amotmts of forage. Such methods require large amounts of labor for each ton of forage harvested. The need for increased mechanization is indicated by the esti- mate tr...a.t about three million tons of hay or its equivalent will be needed as a permanent feed reserve for beef cattle to insure against drought and an additional three-fourths million tons of silage and one-sixth million tons of hay will be needed annually as feed for dairy cows. The minimum equipment for the efficient harvesting of forage is considered to be a tractor, a wide-cut movving attachment, a 25 high-lift buckrake attachment, and a side delivery rake. This minimum equipment is equally sui table for mal'::ing silage or hay. It enables stock ranchers to harvest large quantities of forage nith:L."1 a few days with as feYr as t-wo men, particularly when the fodder is stored near the place 1'lhere it is cut. All equipment for tractors should be of a type which permits attachment or release in a fe-rJ r.rinutes by one man. "7ide-cut tractor m01rrers and tractor-pulled side delivery rakes which can operate at speeds of six to seven kilometers per hour are essential for fast and efficient harvesting. Additional or different equip- ment, such as field choppers, unloading equipment, wagons, balers, and bale loaders, may be used, where large forage requirements justify larger investment. ~urthermore, increased mechanization requires a substantial improvement in repair service and the supply of repair parts, particularly during the harvesting season. 3. Maximum emphasis in prov?-ding feed reserves should be placed on making silage, which should be store~ stacks or trenches at or near the ~lace of harvesting. Because of the high ra~1fall, it is frequently more satisfac- to~J to make silage than to cure hay. i7ea ther conditions often penni t a fe1~r hours of partial ci.rying in the field sufficient for silage ro..aking, when adequate drying of hay would be impossible. Gut forage, long exposed to rain or sun during changing Y:eather, loses large amounts of nutrients and generally deteriorates in quality as fodder. 26  Silage VITill keep satisfactoril3r in trenches for as long as four or five years, once it has been properly packed and sealed to exclude air and has been provided TT:i th good drainage. The feed reserves should be stored near the place of cutting whenever possible to avoid unnecessary transport and handling. It is preferable to store silage in trenches rather than in stacks, since less rraste is involv£:d. Storage i...'r1 trenches is also preferable to the use of deep vertical-wall pits or high-tovrer silos, since the initial cost is much lower, less equipment is re- quired for harvesting, and less labor is needed for storing. So long as equipment for digging trenches is not available on ranches, hovrever, silage should be stored primarily in stacks. Even though far greater vrastage occurs in stacks than in trenches, it is better to have reserve feed in stacks than to have no reserves at all. 4. All rorplus forage not conserved as silage should be harvested as hay. Good drJing ,rfeather is of prime importance to good hay making. The main objectives should be adequate drying vrith the least handling and the least possible ex~osure to the weather. This re- sult can be attai..""led only with efficient management practices and techniques. llechanized equipment and facilities for storing large quantities of hay quickly and efficiently are required. Hay that is made and fed on ranches should be stored in stacks in the field to save equipment in the storing process and to make 27 it available for feeding in the enclosures where it is harvested. Hay that is not fed Yvhere it is grown should be baled to reduce its bulk and to make it easier to handle in transport. Because of the high cost of baling equipment, baling pays only if large quantities of hay are harvested. Conservation of fodder crops such as sorghums, including feterita, corn fodder, mature oats, and other matured grains in the fcr.m of bundle feed should be encot~aged. 5. !Acre adequate facilities should be developed for the storage and conditioning of grain grovnn on the fann. If and when a program for the increased production of corn materializes from the development of hybrid corn, attention should be given to improved methods of storing corn on cobs. The slatted type of bin with cover for protection from the weather, which allo·ws the circulation of air through the corn and promotes natural drying, is reconnnended for this purpose. This type of bin is used widely in other cotmtries and has proved satisfactory. 6. Investigations should be made of methods of for~ge harvesting and conservation. Investigations should be started promptly of the problem of the conservation of fodder to determine the size and lcind of reserves desired, the quality and type of forage to be cut, and the methods and equipment to be used. 28  CHA.PTEil r! TIPJOVEI,!ElJT Ilr THE PATTE]N 0}1' LAlJD USB Ai~D IH SOIL E10DU:jTI7ITY If the production of livestock and crops is to be made more ef£icient and is to yield larger net returns, r.~uch more effective use of arable land will be necessary-. This will mean passing from the present state of the mere utilization of the natural fertility of the soil to a soil husbandry which replenishes and gradually improves fertility. The I·Iission holds this to be one of the most basic needs of Uruguayan agriculture. The present cropping system on nearly all of the arable land area is extractive. Although this practice was originally feasible, too long a continuation of it inevitably results in low crop yields and, in the case of farms ·with rolling topography, in seriously eroding soils. If crop farming is to be restored to a sound basis, so that production can be increased and costs can be lowered, this trend toward the exhaustion of soil fertility must be reversed. The achievement of this general objective requires vigorous action. Decisive changes rvill be necessary in the kind and hectar- age of crops, in farming practices, and in farm organization. In many cases a shift will be necessa~J from specialized crop farming to mixed farming enterprises rrhich produce soil-improving leguminous fodder crops in rotation vrith cash crops and which also support livestock. The diversification and the additions of legumes will result in improved soil and a greater economic return. 29  The changes in land use and soil management practices that are necessary will, of course, vary with the type of soil. )Tor this reason, one of the important factors in bringing about these ad,iust- ments is a good understanding of the soil conditions existing in the different parts of the country. (See Note E, The Heed of a Soil Survey Program, page 217.) 1. The cropping syste1:1 should be cl:langed from an alter- nation of cash crops alone to regular crop rotations which would include legumes and legume-grass combinations occupy- ing the land at least one-fourth of the time during the rotation cycle. Continuous cropping with grains and linseed is one of the causes of low yields, because it reduces the available nitrogen and other plant nutrients and deteriorates the physical condition or tilth of the soil. The only method feasible in Uruguay for replenishing the fer- tility of the soil is the adoption in the rotation of legume crops, particularly the close growing, sod-forming legumes such as alfalfa or clover-grass (Trifolium) mixtures. These crops, when the seed is properly inoculated, add nitrogen to the soil and thus increase the yields of the other crop~ that follow· in the rotation. 11oreover, they improve the tilth of the soil and are ve~J effective in the control of soil erosion. The kind of leg1.1.111e grm~m and the kind of soil will, of course, affect the amotmt of legumes needed in the rotation to increase and maintain soil productivity. In general, a good target is 25 30 percent of the crop land in legumes. All evidence indicates that the establishment of such rotations, together with the use of enough fertilizer and lime for a good grovvth of legumes, promises to increase the yields of most of the crops grown by an average of at least 50 percent. The yields of such crops as wheat, corn and barley could probably be doubled on some of the poorer soils. This assumes, hm¥ever, a good grovvth of legumes, which on many soils cannot be attained without the use of adequate amounts of fertilizers and lime. The use of leguminous crops on one fourth of the rotated crop land does not mean a decrease by one fourth in the area of grain crops or other cash crops. Aru1ual winter legumes usually occupy the land less than six months when they are grown either for pasture or hay, or where they are grm~ as green manure. They can, therefore, be followed by the regular cash or grain feed crop of the rotation. Lioreover, with inter seeded crops like svreet clover sovr.n in linseed or small grain, the legume makes its maxi- mum grovnh after the grain crop is removed and before the seeding time of the following crop in the rotation. It should be emphasized that legumes which occupy the land for two or more years, like alfalfa, are more beneficial than annual legumes in their effect on the physical properties of soils and on the control of erosion on rolling topography. In addition, they usually produce larger yields 1v.ith less preparation of the seedbed. 31  The least expensive method of alternating cash crops ·with soil-replenishing legumes is to shift the cropped area within permanent pasture. In order to have legumes gro,v.ing in the pas- ture, the perem1ial or self-reseeding legTh~es must be so~~ when the land is turned back to use as permanent pasture. In all cases, inoculation of the legume seeds vdth specific bacteria cultures is essential. r-rany failures in the growing of new legumes are traceable to the lack of proper seed inoculation. 2. As the yield of cash crops is increased through the use of improved rotat~ons and other practices 1 th~ land released from cash cr~~oduction should be used largely for the production of feed crop~. The best available evidence indicates that with unproved crop rotations and with the use of fertilizer and lime when needed to get a good growth of legumes in the crop rotation, the amount of cash grain and oil crops presently produced could be grov~n on about forty percent less land. Assuming that the total production of these crops would be maintained at the present level, this would release about 300,000 hectares of arable land. If we assume further that about 200,000 hectares of the land so released would be used for feed crops, pr~narily alfalfa and other legume forage crops, and if the necessa~ phosphates can be obtained, it is estimated that the total feed production would be increased by about 8oo,ooo tons annually. Such an increase of feed crops and changed pattern of arable land use would yield forage for increased and improved livestock 32 production. It -rrould help to restore the fonner practice of fattening range cattle in the crop farming areas and would also provide emergency pasture for stock threatened by starvation on drought-ridden ranges. At the same time it would creatly assist in the improvement and conservation of the soils. (See Alterna- tive 1, Table 1, Note D, ~age 214.) This pattern of use of the arable land area appears to offer advantages that are far superior to the continuation of the present pattern. In the judgment of the ~:Iission, Uruguay should move as rapidly as possible to'\;\"ard its adoption. The Hission recognizes, hmvever, that shortages of phosphate fertilizer and lime may be important deterrents and thus sloviT dorm the rapidity of the shift. Substantial amoQ~ts of both phosphates and lime as well as addi- tional amounts of legume seed would be needed to obtain maximum results. Pending the development of adequate supplies of these materials, an alternative 1-..ray of expanding the improved pasture and feed area might be undertaken vri th advantage. This would be to increase the total arable land area by plmving up substantial areas of permanent pasture lands and seeding them to cash grain or cultivateci crops for two years, and then seeding them dovm to improved legume pas- ture mixtures for an additional six to eight years before replm~ing again. This alternative pattern, in addition to u1creasing the improved pasture area, would have the advantage of securing the beneficial effects of plmving under pasture sod before sowing the small grain or cultivated crop. It also ·would reduce substantially 33 the fertilizer required and probably would be the easiest and least expensive way of .:loving into the other and more desirable pattern. A further discussion of these tvro alternative patterns of use and also of the specific crop rotations that are suggested as guides for achievLl1g them is given in Note D at the end of this li.eport, page 208. 3. Diversified farming 2 combining harvested crops and livestock, should.be encouraged both to make better use of soil resources and to assure more stable income in the long run to many farm operators. In the areas ~here crop farming predominates, many small farmers use their land only for the production of cash grains and oilseeds. Similarly, many snall farns as v1ell as large ranches in the extensive pasture area specialize li1 the production of livestock as their sole enterprise. I.Tany small fanns and some ranches would gain security of income in the long run by shifting tm1ard more diversification of farrung. Some production of live stock on many small cash crop farms would not only lead to a larger and more stable income but would also reduce the costs of grain production by bringing about better yields. On many ranches and farms now used exclusively for extensive grazing, there are va~jing amom1ts of good crop land that could be used in long-term rotations for the production of feed or cash crops. Such a change in land use would provide needed feed reserves and improve the pastures on most ranches and would increase production and income, especially on small ranches. 34  4. The production of oilseeds should be adjusted to th~ proposed rotation of cash crops 1~th leguminous crops and artificial pastures, so that the oilseed production can be kept flexible by expandins or contracting sun- flmver and peanut hectarage as against linseed in response to the demands of the market. Because linseed is a winter sown cash "grain" which usually has enough moisture and othervvise fits well into the farm-management pattern of mechanized wheat culture, it may be assumed that it 1T.ill occupy a large area even i f the price is relatively lm~. The essen- tial question is then to increase yields in order to reduce costs. This can be attained by adding legt~inous hay or artificial pasture to the rotation. Linseed can be used ideally as the nurse crop for all of the forage crops which can be broadcast into the linseed fields. In the long run, however, sunflowers seem to offer the best opportunity for an intensified land use. Both linseed and sunflowers yield a feed cake of high protein content for which there is a large domestic and foreign dema"1d. In addition, sunflo;.•rers yield a high grade edible oil, unlike linseed which yields a ctr.ring or paint oil. l.loreover, sunflower stalks can be used for silage. Although the sunflower plant is a native of Uruguay, its cul- ture is still in an exploratory stage, in contrast with linseed culture which is well developed. The experience of the best growers in different parts of the cotmtry indicates that if highly efficient 35 methods are used, sunfl~~ers give promise of very high yields and costs low enough to enable the growers to compete successfully in the world market. The new short-stem varieties, more suitable for harvesting with a graL~ combine than those with longer stems, should be tested. It seems advisable for the Government to assist in the practi- cal exploration of how far and on what soils sunflower culture can be fitted into the recommended new pattern of land use and farm management based on crop rotations with legumes, in order to have a wider range of cash crops. The same applies to peanut culture which is well adapted to the sandy soils of the northern part of the country. 5. If the necessa~r phosphates can be secured, some 100,000 hectares each year should be seeded with alfalfa and a mixture of several leglunes and grasses, so as to have about 200,000 hectares of alfalfa and le~ume-grass forage annually. Field trials will detennine the best combinations of seed for different types of soil and the possibility of reduci1_~;~ the amount of seed used per hectare. During the ten-year period from 1937 to 19h6 the area seeded to alfalfa each year avel..aged only about 3,900 hectares. If an average yield of four to five tons per hectare is attainable, the reconmen- ded goal ".17ould mean a total annual production of 800,000 to 1,000,000 tons of good quality fodder by the end of the first three-year period. Such a production would go a long "Nay in building up the feed re- serve goals called for in this ~1.eport. ~.7hile the proposed program may seem to be ambitious the goal is believed to be realistic and it can be achieved if the government officials, stockmen, and farmers of Uruguay can be convinced of its practicability and profitability. Seed is a major item of expense in addition to the cost of fertilizer and in some cases of lime. This is partly because of the large quantity of seed now· cor.unonly used for alfalfa, about 30 kilograms per hectare or twice as much as in countries where alfalfa is grown extensively. A reduction in the amounts used can be accomplished by the use of improved seed of certified germinat- ing power and by better cultural practices. 6. The area of annual, good quality fora~e crops should be exnanded to at least 300,000 hectares and emphasis should be given to the greater use of grass-legume mix- tures and other improved forage crops. Oats and other small grain crops are being used at the present time as the primary means of furnishing supplemental pasture during the winter period 1vhen production of permanent pastures is relative- ly lcwr. In some respects these crops are satisfactory, for seed is readily available and the crops are produced rather easily. They produce relatively low yields, however, in the poor arable land area where legumes are seldom c;rown in the rotation. In re- cent years, moreover, the oat crop has been subject to destruction by insects in certain sections of the count~J. -- Lolium multiflorum and Bromus catharticus should be used much more extensively in e;cpanding the acrear;e of temporary pastures. 37 Increased attention should be given to the use of improved strains, such as the Brazilian strain Ho. 284 of Lolium multiflorum. Of even greater importance is the need for adapted legumes to be grmm in association with these grasses or Yfith oats. Among the grass-legume combinations that seem promising are: oats or ~Je with vetch; Lolium grasses or oats with Trifolium incarnatum; oats or other small grains with ~{elilotus indica or other species of Helilotus; and rye or oats vrith annual Lespedeza. Greater use should also be made of sorghums and Sudan grass as supplemental summer forages, and more effort should be made to ob- tain higher production of these crops. This higher production can be achieved not only through better conditions of grov~h, but also by the use of improved varieties. Sorghums and Sudan grass are recognized as valuable sumner forages, but their yields are often low. These lmf yields result in part at least from a deficiency of available soil nitrogen caused by a lack of legumes in the crop rotation. If winter legumes are Grm~ as sug:ested they could precede sorghum and Suda~ grass in the crop rotation and vrould supply the nitrogen needed by those crops. Such a combination of crops could provide productive ~~er and winter forage crops in the same rotation. There is also the possibility, tmder special conditions, of growing root crops such as soft turnips, beets and manioc, and other high forage-yielding am1ual crops, such as marrow-stem kale and rape, especially those crops ·which can be consmned on the field. These 38 crops varJ considerably in adaptability to different soils and other conditions. I.fanioc, for example, is probably best adapted to sanr:1y soils such as those found in the rracuarembo-Rivera area. In general, these crops vrill have their greatest value on dairy farms. Under favorable conditions very high yields of forage or fodder are produced per hectare. 7. Greater use should be made of improv~d crop varie- ties, and crop bree~ variety testing should be expanded to meet the needs of various sections of the country. Among all production factors the choice of variet:r is the only one over which the gr01ver has complete control. It is the key to the efficient production of crops. Uruguay has made considerable progress in the use of improved varieties of small grains and has made a good beginning in sugar cane. Limited progress has been made in the use of hybrid corn, which yields considerably r:J.ore than the corlJ1lonly grovm flint corns. Hybrid corn can be harvested by mchine with greatly reduced costs per ·unit. The principal factors hindering the introduction of im:proved grasses and legumes seem to be lack of seed, failure to appreciate the value of improved varieties and their place in the farming systems, and the absence of incentives or programs of promotion and education. Improved varieties available from other countries should be 39 tested on a large scale under the conditions of soil and climate found in various parts of the count~. This activity should be strongly supported by a plant-breeding program. Such a program has made much hea&vay at Estanzuela but it needs continued support. Breeding for resistance to disease and insects is one of the greatest needs of an enlarged program. 40  CHAPTER V THE USE OF FERTILIZERS AND LI~ffi The relatively low crop yields and the limited amount of experience and field eJ<perimentation with fertilizers all indj_cate that on many soils the greater use of fertilizers is essential to more efficient crop production. The use of fertilizer on nutrient- deficient soils like those of Uruguay not only makes greater yields per hectare possible but also widens the choice of crops that will thrive and improves the quality of the feed that is produced. These latter factors may be of even greater importance than the direct effect on yields. The case of alfalfa is a good illustration. Available evidence indicates that a serious deficiency in phosphorus prevents the culture of alfalfa on many soils. The use of phosphate fertilizers on such soils is, therefore, the first requirement in any program of i~ed land use and crop production which involves the growing of this valuable legume. It has been variously estimated that the present consumption of fertilizers in the entire country is somewhere between 15,000 and 19 1 000 tons annually. Assuming that none of the fertilizer is used on pastures, these figures mean that probably less than three percent of the total arable land in cultivation receives fertilizers. Actually, most of the fertilizer is being used for potatoes, vegetable crops, grape vines and fruits. ~ a small amount is being used for legumes like alfalfa. It is evident, therefore, that if much of the soil area devoted to non-horticultural crops is to be fertilized, a marked 41 increase in the quantity of fertilizer will be needed. 1. Primary consideration should be given to the use of phosphate fertilizers for the growth of leguminous crops in improved eroE rotations and in permanent pastures. At present, the most clear-cut instance of the need for fertili· zer is the need for phosphates in the production of alfalfa. Alfalfa has shown marked responses to phosphate fertilizers in a number of field experiments on soils in Canelones and Colonia conducted at Estanzuela and by the Institute of Industrial Chemistry. Recently at Estanzuela, superphosphate increased the yield of an alfalfa-rye- grass mixture over three and one-half times. Although such e~eriments have been conducted on only a few soils, alfalfa will probably need phosphate fertilizers on a majority of soils. The need for phosphates is so vital to agricultural production that the Government should make every effort to increase the supply. It is suggested that Government support of this fertilizer program be made more effective by differential allocations according to the crop fertilized and the kind of fertilizer used. 2. An expansion of field experiments and observational trials to determine the need for fertilizers on different soils and for different cropping systems should be given early attention. Field experiments and observational trials are indispensable if the use of fertilizer is to be developed on a sound basis. The experi- ence of Uruguayan farmers with fertilizers and the results obtained in other countries with similar soils and crops should provide valuable 42 information. Reliable guidance can come, however, only from field experiments where the response of various crops to different fertili- zers on different soils can be measured and the costs as well as the financial returns can be established. Field experiments should be supplemented by widespread observational trials carried on under ranch and farm conditions in cooperation with stockmen and farmers. An appropriate goal might be to conduct at least fifty field experi- ments and at least two hundred observational trials a year. These trials should be carefully located on a variety of major types of soil, as determined by reconnaissance soil surveys. The determination of phosphorous deficiencies for the gr~~h of leguminous crops ought to have priority. The trials that have been conducted so far show that on some soils the use of phosphate fertilizer for alfalfa means the difference between failure and a good crop. This has also been the experience of a number of farmers, although on certain soils good growth is obtained without the use of either phosphate fertilizer or lime. Present evidence, based on field and laboratory tests, indicates that at least one-half and possibly three- fourths of the different soil types of the country should receive phosphate fertilizer for the successful growth of alfalfa. The possible shortage of phosphate fertilizers and the differ- ences in the availability and cost of fertilizers from different sources lead to the conclusion that the relative value of various types of phosphate fertilizers including ground rock phosphates should be intensively studied. The proper quantity per hectare, methods of application, and responses of different crops, also deserve study. 43  J. A central soil-testing laboratorJ _should be e~tablished to supplement the ~ield experiment pro~am and to assist stockmen and farmers in making efficient use of fertilizers. Chemical soil tests have been developed during recent years for determining the soluble plant nutrients in soils. These tests when properly standardized and adapted to local conditions are valuable in estimating the need for fertilizers and thus in giving guidance to farmers in the use of fertilizer. Government-supported laboratories in many countries test or analyze soil samples submitted by farmers, either free or for a nominal charge. Such a laboratory for Uruguay, supported by a proper research program, could render great service. Cherr'.ical tests must be checked carefully, however, against the results of actual experiments. Field experimental work and labora- tory soil testing work must be conducted simultaneously. Laboratory tests may help to determine the areas for field experiments. In addition to testing samples of soils submitted by farmers, the laboratorJ should also undertake surveys of nutrient deficiencies of soils from different soil areas. On the basis of such studies an appraisal should be made of the total need for various fertilizers. 4. The Government should develop a long-term policy to assure sufficient supplies of fer~ilizers for a.n extended program of efficient production and soil improvement. Fertilizer needs can be estimated only very roughly at present. A long-term program demands that general goals should be established and early attention paid to possible obstacles. At present less than 20,000 tons of fertilizer are being used each year. Except for 44 horticultural crops, the amount of fertilizers used is too small to have significant effects on agricultural production. There is sufficient evidence that much larger amounts, especially of phosphate fertilizers, are needed. A program of improved land use with legumes in the crop rotation, including 120,000 hectares of alfalfa, will probably require at least 60,000 tons of superphosphate or its equiva- lent annually. This figure does not include an esti~ated need of 55,000 tons of phosphate and other fertilizers annually for other arable land crops and horticultural crops nor does it include the needs of permanent grasslands. (See Note D, page 208.) A goal of 130,000 tons of fertilizer, three fourths of which would be phosphates, emphasizes the problem of the procurement of phosphates. At present, superphosphate is being produced from imported raw materials. Existing plant capacities might be sufficient to produce as much as 50,000 tons of superphosphate and mixed fertilizers annually. SUpplies of sulphur, one of the two raw materials for making superphosphate, are scarce, hmvever, and may become more so. The question immediately arises of the means by which adequate fertilizer supplies can be secured and made available at prices that are not prohibitive. Various alternatives need to be studied from the long term as well as the immediate point of view. It is important to determine whether a dependable supply of high grade phosphates can be obtained from abroad at favorable prices, whether methods other than treatment with sulphuric acid can be used, and to what extent raw phosphate itself can be used as a fertilizer. Obviously only field experiments can answer the last question. 45  The liming problem is one that must also be solved if desirable land-use adjustments are to be made. Although the need for lime is apparently less acute than the need for fertilizers, chemical analysis of a limited number of soil samples indicates that most soils in Uruguay are slightly to moderately acid. This indicates that on at least one third of the soils ground l:i.mestone or some other form of lime would be needed for the successful grov~h of alfalfa, and that on approximately another third some benefits would probably be obtained from liming o The liming of acid soils not only supplies calci~~ and corrects soil acidity, but it also increases the availability of the phosphorus in the soil to crqps. Thus, a strong liming program would decrease the total amount of imported phosphate fertilizers needed. Probably less than 1,000 tons of agricultural lime are now used annually. In contrast, if the suggested goal of improved land use is to be attained, it is estimated that about 250,000 tons of ground limestone should be used annually. (See Note D, Table 3, page 216.) Fortunately, limestone deposits are available in most sections of the country and could be developed to produce the needed limestone for agric~tural purposes. Such a development will, however, need encouragement if it is to materialize. 5. The Government should promote the use of lime where it is most needed and, in order to facilitate the supply, should consider the establisr~ent of a pilot plant for the production of ground limestone for agricultural use. 46  The small amount of ground limestone now produced costs about 20 pesos per ton.· This high price could be materially reduced if larger amounts were produced ·with more up-to-date equipment. The greatest opportunity for reducing the cost of lime would seem to be in improvements in the methods of production and in economies in the transportation of this heavy material. The most economical method might be the use of mobile crushing units that move from one quarry to another. With consumption spread over a wide area, trans- portation could be saved by having well-scattered grinders instead of only one or two central plants. Savings in transportation and spreading could also be made if the hauling and spreading of bulk lime could be done by trucks equipped with spreading devices. The establishment of a government-sponsored pilot plant would provide necessar.y information on methods and costs of production and distribution, and would be of assistance in the expansion of the private lime-crushing industry. Chemical tests for determining the lime requirements of soils are well developed and relatively accurate. The soil testing laboratory can, therefore, obtain much valuable basic information to establish the needs for lime in different soil areas and to guide its efficient use by individual stockmen and farmers. Some field experiments would also be needed to provide a quantitative interpretation of laboratory tests, but these need not be as exten- si~ as in the case of fertilizers. Observational trials shoUld also be utili~ed in demonstrating the need for lime and its value on acid soils. 47  CHAPTER VI IMPROVEME:,IT S IN PRODUCTIVITY BY IRRIGATION, TILLAGE PAACTICES, AliD vVEED AND PEST CONTROL 1. The possibility of improving the_;eroductivity of the best land by the irrigation of high-value crops should be further explored,, an~ c~nsideration should be given to both surface and spray i~rigat~on ~rstems. Many fertile areas are to be found in .valleys and along strean~ in Uruguay. Some rivers and creeks provide water all year round, while others could supply water to irrigate small areas if it were stored in reservoirs until needed. The production of vegetables and fruits in such areas could easily be doubled with irrigation and the production of high-value crops could be secured during dry spells. A survey should be made of the promising soil areas where water for irrigation could be made available vfi th the least expense. The existing irrigation projects, such as that near lunas on the Mataojo River and the cane sugar plantations in the Departments of Salta and Artigas are examples of what might be accomplished at other locations in increasing the production of high-value crops for food and for use in industry. The adaptability of spray-irrigation systems, which have been successfully used in other countries for growing vegetables and otb~::."' crops, should be fully explored. Such systems usually supply small quantities of water and can be used with pumps to get water from creeks, wells, or reservoirs without levelling the land. Success in the use of wells for irrigation will require sufficient quantities of water at high enough p~~ping levels to be lifted economically. 48  2. Greater attention should be paid to the need for more adequate tillage operations and the importance of main- taining a mellow, friable soil condition or good tilt~ Many of the soils of the littoral show evidence of poor tilth or structure which is one of the important causes of law crop yields. They have lost their mellow, friable condition which they had when they were first plowed from sod, and are now more compact and clodqy. Because many of the soils contain considerable clay, they are normal- ly difficult to keep in a mellow, friable condition. The primary causes of poor tilth are two-fold: continuous cropping ~~thout legumes and grasses in the rotation; and poor tillage practices. The first of these causes can be removed by proper crop rotations, but improved tillage practices must also be foll~~ed if good tilth and high yields are to be achieved. The general methods used by farmers in preparing seedbeds for crops and in intertilling cultivated row crops have impressed the 1tission as being capable of considerable improvement. Seedbeds vdth large soil clods are common in Uruguay. They prevent proper seeding and result in poor, uneven stands of crops, particularly of the legumes and grasses with small seeds. Much valuable seed is therefore wasted. Good seedbeds permit a marked reduction in the amount of seed required. The type and distribution of rainfall and the slow drying of clay soils leaves only a limited time for tillage operations and demands good equipment for tillage. At present this equipment is not available on many farms, especially on small ones. Competent tilling requires that cultivation be properly timed, particularly with respect to conditions of moisture in the soil, and there is 49 urgent need for tillage studies on different soils to determine the most desirable types of equipment and practices. 3. Programs o! coordina~ed action shoul_d be developed as community projects to c~ntrol weeds and migratory pests destructive to c~ As crop farming is intensified, it becomes increasingly important to eliminate leakages and waste. The eventual control of locusts and parakeets is well on its way under the Government's present program. Similar programs for control of aphis on oats and of doves seem essen- tial. In order to achieve ultL~ate success, full enforcement of each campaign reaching into the remote refuges of these pests will be necessary. The adoption of regular crop rotations vdll diminish infestation by weeds, since monoculture leads to the accumulation of specific weeds. Careful intertilling of row crops is still the most practical and least expensive method of controlling weeds. Some chemical pesti- cides may also prove profitable. The introduction of new crops or crop varieties may often be unsuccessful because of their susceptibility to diseases and pests that are present in or are favored by the new environment. The suscepti- bility to pests and diseases of new crops and varieties must, there- fore, be studied and the results must be used in making appraisals and selections. The occurrence of nematodes in alfalfa should be studied. Vfuere they are prevalent, "nematode resistant 11 alfalfa, a strain recently developed in Argentina, should replace other varieties as soon as possible. 50  CHA.PI'El1 VII THE COHTROL OF E:aOSION Soil erosion is a serious problem on many of the rolling lands in the arable fanning area. Even where the slopes are gen·t.le, with less than five percent incline, losses of soil by erosion may be considerable because heavy rains are common. Losses are especially heavy where the soils have been cultivated continuously for many years. On most farms, where no legume and grass crops have been used in the crop rotation, the soil has become less productive and more vulnerable to erosion. In some places the subsoil is exposed and the productivity of the land has greatly declined. Gullies have been formed in some of the worst areas. 1. The present erosion-control program should be greatly expanded, not only through present methods, but also by developing the educational and advisorz services in this field. The Government has made an excellent start by calling atten- tion to the erosion problem and by initiating a program of construct- ing terraces and rehabilitating eroded lands. If this pror;ram is to succeed, however, it must be expanded and far greater emphasis must be placed on vvidespread educational and advisor-J work. Some practices such as changes in land use and terracing may need promotion by incentive payments. The Goverru:1ent should expand its program of reclai:rning badly-gullied land because such measures may not be profitable from the private standpoint of the owner of the 51 lane~. If the Government reclaims pri vutc lands, it shoulct be com- pensated by the OT.ner accordinf~ to the aF~1ra~.sed value of the benefits. J3eca.use erosion is chiefl~r caused by r)oor land use, ~t.he first considerc:.tion in any pro~ra.m of erosion cont~ol on crop .liind is the establishnent of good crop , rotc:tions .,_-ri th le~unes and le?,u::te- crass crops. 'n1ese crops not only protect the soil from erosion v1hile they w-e r;ro~.-rin~; but the:' leave i t in better tilth. This results in less Yratcr loss and erosion :tn subsequent yec:..rs Yihen the cultivated crops of thr: rotation arc beinc-; :~ro,·.n. The control of erosion depends also on the iu1provenent of the fer~_li ty uf the soil. ..~lfalfa and other 1egunes need phosphate fertilizer \'Then .:;rO'.orn on many soils. Fertilization may be the first step to~n;;.rds erosion control on soil~ that are already badly eroded. Eroeion control is an inte~r&l part of the e;cn.eral proc;ram of soil improverr~nt and conservation. In addition to such practices as terracin ..:, contouring and the use of grass-covered r:aterria~rs nust be popularized by field dmaon- strati.ons. Farners must be nade generally alert to the erosion problem wtd co~:ipetent in various methods of control so tj1at they the:nsolves ·\:ill .:1djust their land use and ~oil mL.na;::ement. On rollin~ land the heaV'J use of public driveua,ts by cattle and sheep has resulted in the elimination of ve~:etation ond subse- .:uent severe erosion. In so!1e cases not only is the top soil ~one but deep .c!,ullies nake further use difficult. Iteclamation should be made throu'r,h ~ctual fillin~~ oi' t_?;ullies, esta;)lish~.n~~ a ve~etative cover, &nd prevent inc use by e:.ny li ,restock 6urin~: the renovation period. 52  The gully erosion on the driveways raises the question ot their best future use. In their extraordinar.y width and their spread throughout the country, they represent a large proportion of the land under public domain. The best method of stopping this erosion and utilizing this land appears to be its afforestation. This would not necessarily exclude continued use as driveways, except during the initial stage. These tree belts would contribute their share to the domestic lumber·and firewood supply. Although the solution for reclaiming the severely eroded areas may seem relatively simple, such work is costly. For this reason the program should be started on a small scale and be expanded as the experience accrues as to the least expensive and most effective methods. 53  CHAPTER VIII CONTROL OF ANIMAL DISEASE No stockman visiting Uruguay and ix"lspecting ranches throughout the country can fa5_l to be depressed by the ·wide- spread incidence of avoidable or co11trollable diseases. It is the .:'irm conviction of the 1\i.ission that no other sir..gle factor imposes such serious limitations on productive effie- iency. The country is extremely fortunate in one respect; it is afflicted only with animal diseases for which effective remedies or methods of control are knovn1. Nevertheless, the fact that cases of foot-and-mouth disease, contagious abortion, tuberculosis, mastitis, cattle tick, swine fever and sheep scab exist almoEt universally is a challenge to the Goverrnnent, to the producers, and to the veterinary profession. The Mission has been impressed with the competence of the veterinary specialists in Uruguay and with the measures that have already been taken to reduce losses from disease. There is a well-staffed and efficient veterinary college, equipped with full lcnovrledge of modern techniques for the control o£ disease. Much still rer:ains to be done, however, and veterin- arians must receive the greatest possible support of all groups interested in their important task. 54  1. A national survey should be made of the types, distribution, and economic importance of all animal diseases occurring in the country. Any sound policy f~r the control or eradication of diseases within a country must be built upon accurate knowledge of the types of disease that exist there. Veterinarians must have available an accurate survey of the entire situation with which they have to deal if they are to plan campaigns of control or eradication effectively. The main centers of infection must be localized and control measures must be concentrated on those areas. Some evaluation of the economic importance of each disease will be helpful in marshalling the necessary support of the Government and of public opinion for costly and often dis- agreeable measures of control. Such estimates serve also to avoid the dissipation of the energies of technical personnel on diseases of minor importance. It is probable that important animal diseases exist to which practically no attention has yet been given. Very little in- formation exists, for example, on the types and extent of male and female infertility occurring among the country's animals. This problem calls for immediate attention in view of the low rate of calving and lambing. Surveys of the kind required for sound planning can be carried out at relatively small expense if good organization and the understanding cooperation of producers can be achieved. 55 Veterinarians in Uruguay are acquainted in detail with the methods that have proved successful in other countries with comparable problen:s. ·· Extension of the Biological Institute at Montevideo as recorrl!11ended in Part III of this report, to make it an effective diagnost:i..c laboratory with a national coverage, woulG go far toward confirming the results of more empirical field surveys, checking for previously unrecognized diseases, and locating focal points of infection. 2. A ten year program should be established to reduce foot-and-mouth disease to c<?ntrol!able proportions through ~ystemati~ vaccination. Foot-and-mouth disease is by far the most important cause of loss to the beef-cattle and dairy industries, and to a lesser degree the sheep industry. It is universal in its spread through the country. Always present in a mild form, periodic outbreaks of high virulence occur frequently and increase losses to critical levels. Its control would reduce the average age of fat cattle at slaughter and would increase calving rates. In the case of dairy cattle, control would increc:se the average yield of milk per cow, reduce infertility, and cut dmvn the serious losses in young dairy stock, thereby making it practicable to select dairy cattle effectively and to reduce considerably the proportion of uneconomic, non-producing, dairy stock. In sheep, the control of the disease would improve the percentages of lambing and lovrer the incidence of defects in wool. 56  Ultimate elimination should be aimed at, but it would be an extremely costly undertaking. The l~ssion is of the opinion that the incidence and spread of infection in the country should be reduced to much l~rer proportions than those existing at present, before complete elimination is attempted. 3. The present system of controlling brucellosis by agglutination tests, segregation, and slaughter should be abandoned, and the use of Strain 19 brucellosis vaccine should be adopted on a national scale, ~~th priority given to dairy cattle. Although accurate information is lacking, reports indicate that contagious abortion due to brucellosis is ~~despread. This sit- uation is certainly true in the case of the dairy cattle herds. The survey by CONAPROLE supports this conclusion and locates the areas of major infection. Some owners of herds of beef cattle also report a high incidence of the disease. The customary method of control now in use, which is based on blood testing, segregation and slaughter, can lead to the elimination of the disease if it is generally and effectively applied. It is unfortunately so expensive that very few countries can afford its cost. The Mission recommends that control through vaccination be adopted as a more economical and satisfactor.y method. Vaccination with Strain 19 vaccine has been sufficiently tested in so many countries to leave no doubt as to its worth 51 and effectiveness. In New Zealand, the first country to use the technique on a nationwide basis, contagious abortion has been reduced from one of the most important single causes p;f herd wastage to relative unimporta~ce in a period of only five years. Strain 19 vaccine is inexpensive and easy to produce in quantity. For economic reasons, dairy cattle should initially have priority. The work can be extended to beef cattle when adequate supplies are available. The use of this method requires the modification of existing regulations concerning cattle shows and the export of cattle to countries that require certificates of failure to react to the agglutination test. Both these aspects can probably be handled, however, by official certificates of vaccination. 4. The offi~ial program for the eradication of cattle ticks and tick fever should be enforced so that it will be completed within five years. The eradication of ticks that has already been accomplished in the southern part of the country proves that the country can free itself from this parasite and from tick fever with the present official machinery and techniques. Because tick fever limits the rate of growth of cattle, the Y~ssion feels that the Government and the producers should jointly undertake to complete the task of eradication. 5. The task ~f ridding the country of sheep scab should be completed within three years. 58  Ample official machinery and field experience exist to permit eradication of sheep scab in a short time. Because the task is relatively simple vdth modern chemical dips, the con- tinued existence of scab is not only a menace to producers who have clean flocks but is unnecessary. Its presence in any flock should no longer be tolerated by law. Sheep owners should give their fullest support to the officials VFho conduct the campaign of eradication. 6. Penicillin or streptomycin cerate and other proved antibiotics should be made readily and cheaply available to all dairy farmers for immediate treatment of bovine mastitis. Practical eA~erience throughout the dairy countries of the world confirms the efficiency of antibiotics in the control of mastitis caused by streptococcal infections. Little data exist in Uruguay as to the relative incidence of the different forms of mastitis, but the results obtained from the use of antibiotics so far sugg~st that a more extensive appli~~tion would reduce losses from this disease to a substantial degree. There appears to be a tendency on the part of professional veterinarians to restrict the use of antibiotics to solutions requiring injection. This practice should be officially dis- couraged, because it automatically restricts the treatment to qualified technicians, with the result that the cost of treat- ment becomes uneconomic. Ample experience in other countries 59 proves that treatment with cerates by farners is effective and cheap. Present prices of penj_cil.lin cerate in Uruguay appear unnecessarily high as compared with those in many other coun- tries. In view of the economic importance of its use by small farmers, this should be remedied. ?. As a long term objective, the complete eradica~ of tuberculosis in ,dairy cattle should be recognized as a major resnonsibili t;r of Government and industry, but so long as other diseases that are economically more important prevail, the control of tuberculosis should be limited to herds exhibiting a high clinical incidence of the disease. The task facing Uruguay in controlling arrl eradicating disease is of such magnitude that the resources available in the immediate future should be directed against the most damaging diseases. Foot-and-mouth disease and brucellosis cause such hea~J losses and their control is so urgent that they must receive priority of treatment for at least a number of years. The eradication of tuberculosis involves the slau~hter of infected animals and compensation for them. It is therefore an expensive task. It is justifiable ultimately, hryNever, on the grounds of hu.-rnan health and greater productivity of stock. In a country such as Uruguay, -.v-here incidence is relatively low -- a situation typical of cattle maintained out of doors throughout the year -- and where most of the milk consumed by hu:mans is or 60 can be pasteurized, the case for tuberculosis eradication is less urgent. Nevertheless, herds with a high incidence of tuberculosis are a menace. Such herds are easily located by official veterinarians and should be handled as special cases until such time as a full-scale program of eradication can be undertaken. 61  CHAPTER IX II~iPROVEMENT IN ANIHAL HUSBANDRY Uruguay, as a pastoral country well suited for livestock production by good natural conditions of climate, contour and soil, and dependent on the export o! livestock products to world markets, has a vital interest in the efficiency and the production costs of her livestock industr,y. Costs are decisive for her position as an exporting country and for the standard of living of her people. In a competitive world, the drive for further reductions in the cost structl.lre must c-nntinue, whether export prices rise or fall. A policy seeking improved efficiency and lower costs can pay handsome dividends in times of world pros- perity and will be valuable insurance in times of falling prices. The livestock producers of Uruguay have succeeded in developing an efficient low-cost structure that is matched or surpassed only by their competitors in Argentina, Australia, and New Zealand. Their appreciation and knowledge of efficient animal husbandry is great, placing them on favorable terms with stockmen fron other countries exporting wool and beef. Their management practices, particularly the techniques that permit the handling of a relatively large number of stock units per man, have assisted materially in placing products of good quality on the export market. Despite this high quality of management, great opportunities 62 exist for further improverr;ent of the industry. The possibility for such improve~~nt is indicated by the exceedingly low figures of fifty to sixty lambs raised per hundred breeding ewes and fifty to sixty calves raised per hundred breeding cows. Other indications are the high disease and mortality rates on most of the ranches and the fact that the average age of fat cattle at slaughter ranges from four and one half to five and one half years. This approaches twice the age accepted today as a standard by specialized beef-producing countries. 1. Improvement in the quality of all livestock should receive continued close attention; special emphasis must be given to eliminating scrub rams and bulls on small farms and to measures for the improvement of cattle aimed particularly at decreasing the age of cattle at slaughter. The Mission has been deeply impressed by the very high standard of the stocks of both sheep and cattle on the larger ranches. Leading stockmen evidently recognize fully the value of pedigree and high-grade animals. Hereford cattle and Carrie- dale sheep compare favorably on a large number of ranches with these breeds in their countries of origin. Therefore, the 1lission does not presume to give advice on general techniques of breed improvement, a matter that could hardly be avoided in many less advanced countries. At the same time a rigorous prograrn of breeding for further 63 i;.'lprove:ment in body conformation is recommended. Even among livestock being prepared for shows, where feeding and other management practices are practically ideal, certain defects in body conformation were noted. Continued close attention there- fore should be devoted to the hereditary factors involved in breeding for the improvement of strains. Selection of sires and dams on the basis of carefully maintained records of the per- formance of their offspring is suggested as a sound procedure for breed improvements of stud cattle and sheep. Although the Mission was impressed vd th the high quality of many of the livestock on larger ranches, it foQDd a generally lm•r quality in both sheep and cattle on snaller farms. Serious consideration should be given to developing a workable system of using only pedigreed or high-grade sires for breeding on all stock raising units vd.thout exception, including particularly all of the small ones. As a practical method, small holders should receive financial assistance to acquire sires capable of ii.1proving their female stock. It is essential that assistance should be strictly limited to licensed sires whatever the financial support or incentive that may be employed. For sheep, the existing plan of the Associacion Rural del Uruguay and the Government of marking or permanently identifying sheep that reach acceptable standards of quality could well be used as the system for licensing rams. A comparable system for beef cattle would not only assist in 64  ,_ the general improvement of cattle, but would provide a similar sound basis for licensing of bulls. In vievr of the high standard of stock on the larger ranches, there seems to be li~tle need to consider the introduction of compulsor,y licensing of all sires used in the country. Such a step, if introduced, could eliminate all scrub sires, but the costs of enforcement would be exceedingly high. The lfission is of the opinion that the development of an official plan for licensing sires combined with proper financial incentives would be sufficient if it could be applied to all flocks of up to one hundred breeding ewes and all herds of up to fifty breeding cows. The method of reducing the age, and thereby the cost of production, of mature slaughter cattle is not only a matter of a more even feed supply of better quality but also to a sub- stantial degree one of breed and breeding. Although the present dominant breed of cattle is of high average quality and is well adapted to the available feed and range conditions, the rate of maturing is unsatisfactory. The adoption of the techniques previously recommended for improving fodder conditions might well change the qualifications needed for breeds of beef cattle since breeds and types which have produced well under the poorer feed conditions so far may not vield the best results with improved supplies of fodder. Research work on animal production should, therefore, include comparative tests of different breeds and crosses of cattle with the special object of obtaining much ear- lier maturity. 65  2. Closer attention should be given to husbandry practices which aid in securing the maximum percentages of calving and lambing. Very few stockmen are able to maintain a lambing or calving figure better than eighty young reared to the weaning stage from one hundred females mated. Far too many achieve lamb or calf "crops" of little better than fifty percent. Although poor nutrition and disease contribute materially to this situation, it must be emphasized that stock management is also a major factor. The improvement of pasture conditions on the range, the provision of supplementary fodder crops for periods of scarcity and for special needs, the increased subdivision of pastures, and better methods of range management already suggested in this report should all contribute to bett.er yields of calves and lambs. Reduction of disease will assist substantially. Results from these practices will be even greater if they are accompanied by appropriate stock-management practices designed to give the female every chance to reproduce and her young every chance of survival. Young females must be sufficiently grown at the time of first mating and all females should be in prime nutritional condition. ~No weeks before mating begins, ewes should rapidly be brought into a condition of improved nutrition and be kept well fed throughout nating. Herds and flocks also should be mustered frequently throughout mating so that small lots of females will not lose contact 1.vith males in very large enclosures. 66 The mating season should be restricted to th~ most fertile period and should be short enough tc) give the progeny a reason- able chance of survival and of good growth during their first year; late-b~rn animals seldom thrive and they create special management problems. Ewes and cows that fail to breed during this optimum period should be the first to be culled in order to raise the actual, as well as the inherited, fertility of the flock or herd. Individual attention cannot be provided under a system of extensive grazing of cattle and sheep combined, but more frequent inspection of lambing and calving animals, the selection of specially sheltered fields for the purpose, and the segregation of females for better nutrition near the end of pregnancy would substantially reduce losses after birth. It is perhaps worth pointing out that a loss of ten percent of the lambs from ten million ewes at or during the first week after birth means a loss of one million lanbs and that the average loss in Uruguay is probably nearer t"rmnty percent than ten. Vii th the sub- division of pastures and with the changes in management methods recornnended, better handling of pregnant animals would not require additional manpower. Every beef cattle operator should have the following specific goals: to improve his forage resources and management so that he can breed his heifers to have their first calves at two years of age instead of three, to increase his calf crop to ninety percent 67 or better, to wean his calves at seven months of age instead of ten to twelve, and to fatten his steers for sale at two years to two and one-half years of age instead of four or more. The aim of every stockman producing for export should be to produce animals ~dth L~proved body conformation, yielding a higher percentage of better quality beef with more marbling of fat. This practical goal can be accomplished through the rapid growth and fattening of improved cattle on superior pastures, supplemented with reserve feeds during periods of grazing shortages. 3. Salt, augmented with phosphorus and calcium, should be fed as a basic and necessary supplement to the diet of range livestock where these elements are known to be lacking in the range forage. The fact that many Uruguayan stockmen do not use mineral supple- ments of any kind is probably responsible to some extent for the compara- tively low calf crops and other results of malnutrition found in live- stock throughout the country. The sodium and chlorine content of the range forage is perhaps sufficiently low to justify the use of salt except in isolated areas of high alkalinity. Bone chewing and other signs of phosphorus deficiency among live- stock are particularly noticeable in the northern and eastern parts of the country. Less pronounced ptosphorus deficiencies may exist elsewhere. Calcium deficiency is not likely to be important, however, except on certain badly leached acid soils. Both deficiencies may be corrected by feeding bonemeal which contains calcium and phosphorus in the desirable ratio of two to one. It is a mistake to feed ground limestone alone in areas where phosphorus is deficient because an 68 excess of calcium in such cases tends to accentuate the defici- encies in phosphorus. The relative degree of sufficiency or deficiency in minerals should be determined by carefully-conducted feeding trials and thorough analyses of the range forage at frequent intervals through- out the year. These studies should be undertaken in all of the major grazing areas of the country and should include investigation of such trace elements as cobalt, iron, iodine, manganese, and copper. 11hen minerals are used they should be placed at a considerable distance from water and should be moved from time to time to encourage more uniform use of the range forage. 4. General practices for the management of stock should be modified and improved so as to increase still further the output per unit of labor. Labor conditions in Uruguay of recent years have resulted in an increasing shortage of competent ranch hands on the extensive grazing lands. This situation can be met by improving the efficiency of ranch labor. Such an approach is economically sound because it assists in lowering costs and socially sound because it leads to increased income for farm labor. Improving labor output within the livestock industry is largely a matter of improving management practices. Discussion of the large number and wide variety of management practices that enter into the efficient production of livestock would be beyond the scope of this report. Uruguayan stockmen are familiar with most of the essentials and appreciate the principles involved. There are, however, some 69 practices leading to increased efficiency with which local stockmen appear to be unfamiliar and which can be mentioned briefly here. Consideration should be given to the use of trained sheep dogs in the handling of sheep. Present methods of shifting, driving, yarding, and working sheep with horsemen are extremely expensive. Trained dogs of stud quality could easily be imported. With these as a nucleus, a force of invaluable assistants for the handling of sheep could be built up. One shepherd and two good dogs could replace three to five men n~r needed under present shepherding methods. The design of sheepyards and shearing sheds should be improved. Even the equipment of the larger and wealthier ranches leaves much to be desired from the standpoint of labor-saving design. In parti- cular, systems of gates and chutes for separating animals into dif- ferent pens should be introduced universally, to avoid the unnecessary labor of catching and carrying individual sheep when flocks are separated into different categories. Stockmen should also be taught how to catch sheep without the wasteful effort typical of their present methods. Suitable equipment for every size of flock is well described in the agricultural literature of both Australia and New Zealand. Shearing practices should be improved. Early attention to this matter may become particularly important in the light of the reportedly increasing shortage of expert shearers. Better design of shearing sheds to permit more rapid and easy movement of sheep vnthout tying the legs of the animals, would bring immediate benefits 70 through reduced labor in the shed and an increase in number of sheep sheared per man. Tying the sheep prevents immediate "skirt- ing" (preliminary removal of dirt and low grade wool), causes the sheared fleece to split, and necessitates tying the fleece with paper string for shipping, with the untying, "skirting" and grading to be done later. This is a much more complicated and expensive process than the all-in-one shearing system. Double cutting during shearing -- second cuts of wool a few milimetres long, made for the sake of appearance - shoulc, be elimin- ated. This practice is wasteful of the shearers' time, creates added problems in classing and milling the resulting wool, and reduces the value of the wool. Fleece should be graded on the ranch wherever possible. This could easily be done by extending the duties of the sheep classifiers, operating under the sheep improvement scheme, to include the grading of fleece. Grading in export houses in Montevideo is efficient from the viewpoint of wool export but it is a poor practice for the pro- gressive sheep owner who is trying to make progress in breeding wool of high quality, because it does not provide him with any detailed information as to the quality of the fleece that his individual sheep are producing. Such information is essential to selection and culling for the sound improvement of wool and can be obtained only by grading the fleece on the ranch. TJhen details of the weight of wool in each grade are available to the grower, he can measure annual changes in the quality of his product on a standard basis, independent of prices. 71  The adoptien of "wool binning" would provide much more information than the small grower gets at present as an aid to wool improvement. Under this method, the entire clip of a grower is sorted by the wool exporter into twenty to forty qualities, and each quality is put into separate bins for subsequent sale along with similar wool from other growers. 72  IH?ROiT.s!v:ENT OF THf D/IIRY INDUFTRY IncroRsed dairy production is an important factor in realiz- ing an increased income from livestock. The efficiency of dairJ cattle 3S converters of feed in comparison with other livestock, the great possibilities for the employment of labor, and the high value of milk and dairy products make increased dairy production a desirable objective on a long-term basis. For the immediate future, the principal consideration is to reduce costs of production rather than ·~o make substantial increased in the amount produc~ Production costs in Uruguay are hirh at the present time. liilk prices yield only a small net cash return to the majority of producers, even though these subsidized prices are, on a butterfat basis, approximately three times the present export value of dairy produce. It t·rould be possible to lm·rer present costs of milk production substantially by increased efficiency in almost evory part of the industry. The general level of technical efficiency in both production and ma.nufacturing is so lm..r, however, in comparison vJi th that of Denmark, Holl~nd, New Zealand, Canada, and Australia that the reduction of costs to a level that Hould permit efficient export competition at present world prices is not likely to be quickly or readily attained. 73  It is suggested, therefore, that instead of attempting to increase the volume of production to achieve an export surplus, all energies be concentrated on increased efficiency within the existing industry with tho purpose of cutting its costs drastically. Until these costs can be reduced to a level comparable with those exic:;ting in highly specialized dairy export countries, the develop- ment of the industr.y should continue primarily on a domestic consumption basis. Only when the objective of up-to-date operation is achieved should any serious attention be directed touard increas- ing dairy production beyond domestic needs. Shift of Dair.y Feeding from Concentrates to Forage 1. The costs of milk production should be reduced by shifting the emphasis frcm the prc;sent depcndonco upon concentrate feeds to1r1ard the maximUm utiliz~tion o.f permanent pasture, te~pora~ pasture, and forage: croos, as dair,y feed. Uru~<Uay is a country in 'tvhich grass is abundant and cheap to produce, while grain and oilcakes are relatively expensive. It is some-vrhat surprising, therefore, to find the dairy industr'J employ- ing the techniques of nutrition and management characteristics of most parts of Western Europe and North .America, 1rrhere extremely short pc~riods of pasture growth and long, hard vrinters force the dairy industr.y to rely upon alternative feeds and indoor stall- feeding methoos. The milk production pattern in Uruguay should be more similar to that of dairy countries in the southern hemisphere like Australia and New Zealand, where pasture growth is sub~ ct to 74 no such climatic limit~tion and 1·Jhere cattle can remain out of doors the year round. In a land able to produce grass and foraee crops cheaply in ever.y month of the year, feed concentrates should be employed only as supplements to pasture feeding and no~ as the basic feed. If the costs of milk production are to be cut drastically, much more extensive use must be made of pasture and of all other green feed crops. This can be done along several lines as indicated in the follovzi.. ng paragraphs. 2. Permanent dair,y pastures should be improved by reseeding with suita.ble seed mixtures and by the ap;;lication of fertilizers. About 75 percent of the grazing areas of dair.y farms in Uruguay are permanent pastures. These natural pastures are now incapable of supporting ·efficient milk production and the dairy farmers are forced to use excessive amounts of feed concentrates. The dairy industry must change this feed situation if it is to become a self- supporting and profitable industry. Farmers must abandon the practice of leaving their pastures in the native unimproved state, so-called "natural camp". They must plow and reseed the native grassland vti. th sui table improved legumes and grasses which will yield more feed, of better quality and more evenly distributed. The recommendations made earlier for the improvement of grazing lands for cattle and sheep apply generally to dairy pastures except that t-Jhere dairy pastures are concerned, the more expensi:ve method of plowing and seeding on carefully prepared seed beds, in comparison 75  1/ with the cheaper over•sowing, is likely to prove more profitabJe";' Phosphate fertilizer and lime will help considerably to establish and maintain improved pastures on many farms. Dairy farmers should be in a far better position to afford phosphates and lime than the producers of sheep and beef cattle because of the existing price relations bet't..reen tvool, beef and milk. 3. The use of a V~Jider variety of temporary pasture and forage crops should be e;plored; in particular there should be a greater use of alfalfa. The supj"::ly of inexpensive succulent feed or hay can be increased on dair.y farms by making better use of temporary pasture on arable land and b.Y better forage crops. Dairy farmers now rely for supplementary green feed and hay chiefly on oats, one of the least satisfactor,y forages for the production of milk. The recommendations made in Chapter I~T on improvements in the pattern of land use apply in principle to dair.y farms. The feasibility of feeding soft turnips in sununer anr: marrow-stem kale in summer and winter should be explored. Both crops can be fed in the field 'With minimum labor. 'Ihey should considerably reduce the costs of pasture improvement if grown in the initial stages of plo~dng and reseeding permanent pasture land. Special attention should be given to the possible use of Trifolium subterraneum, Trifolium phalaris tuberosa, and Ne1..r Zeland short rotation rye grass for 1.vinter and spring feed:i_ng; Trifolium subterraneum, perennial rye grass, Festuca elatior, and .Andropqgon saccharoides for spring and early summer; Trif9lium.pratense and llndropogon saccparoides for summer and autumn. 76  Huch more alfalfa. could undoubtedly be gro-r;m for green feed and for hay on tho better lands used for dai~ing. In order to arrive at a lower cost structure, the proper balance between the areas in permanent pasture, tempor~1ry pasture, and forage crops must be determined by field experimentation. Consideration should be given to the fact that highly productive permanent pastures involve lower costs than fodders needing annual reseeding and culti va.tion. 4. Permanent pastures, temporary pastures and fields with forage crops should be much more extensively subdivided by fences. The improvements in the production and quality of forage previously suggested ::Jill not yield optimum results unless the dai~ farmer is able, through increased subdivision, to use such forage more effectively. Permanent pastures must be subdivided into ['.t least lS fi8lc.lE for efficinnt, cont~olled grazing by herds of dai~J cattle. This number of enclosures allows a sufficiently long interval to elapse betvJeen successive grazin~s of each field to permit abundant regroTtJth of milk-producing fodder of high quality. Temporary pastures and forage-crop fields sui table for grazing liker·iise require subdivision for their maximum utilization. Feeding of such croy:>s to dairy cattle in temporarily fenced strips is both economical of labor and efficient in reducing waste. Subdivisions of dairy land need not be costly. Fences of three wires are sufficient. The extensive use of single-Hire 77 electric fence is especially cheap and effe~tive for the strip grazing of forage crops. ft.dequate ·Hater supply must be provided in each field and this may inYolve more initial capital invest- ment t~·1an the subdivision itself. Nevertheless, since milk cannot be produced Hi thout sufficient drinking ·~-;ater for the cows and since a large proportion of dairy farms now have quite inadequate water supplies, this is a crucial cost i tern t.fuich must be assumed if the industry is to become efficient. 5. Adequate reserves of silage and hay should be provided for sup·olementary feeding during periods of feed shortage. All that has been said earlier in the Report about supple- mentary feeding of beef cattle and sheep applies in even greater degree to the dairy industry. Very little hay is being made at present for dairy co~r,rs, and silage is almost unkno"tom. Even in an ideal pasture en~dronment like that of New Zealand, efficient dair,ymen have a reserve supply of at least three tons of silage and three quarters of a ton of hay per cow per year. These quanti- ties might be taken as a guide for Uruguay until experience provides more precise information. Improved pastures and the cultivation of better forage crops should aid considerably in building up reserves to these levels. 6. The feedi. ng of concentrates to dairy cows should be substantially reduced as supplies of fodder increase and should be confined normally to the unexported by-products of the domestic flour milling and oilseed crushing industries. 78  Dairy colvs can make efficient use of bran and nilcake, particularly if the ration of fodder has too little p!gestible protein. The present policy of producing concentrated feed- stuffs, such as oats, corn, or sorghum, especially for the feeding of dair,y cattle should be discontinued. The goal for the next five years should be to reduce the present amount of concentrates in the feed of dairy cattle by one half. The Mission is of the opinion that Uruguay's dairy farmers are capable of bringing about an even greater reduction in the use of high-priced concentrates. If these savings are achieved, substantially lower costs of pro• duction would result. Supplies of concentrates released by reducing their use in dairy feed uould be available for the proc.uction of egr;s, poultry, and l!irs which suff~-r at present from the priority th.~· t. is given to dairy co1r1s for such feeds. Insofar as the demand is reduced for oilcake and v-rheat bran in the feed of dairy cows, these products can be best used as exports to earn foreign exchange -vJi th which to buy phosphates or other agricultural essentials abroad. Increased Efficiency of Cot·JS 7. The dairy industry should set a goal of an average production of at least 3,000 liters of milk per coH per lactation and should promptly initiate an energetic drive to achieve it. Although there is no accurate information on the sub.]:; ct, existing data indicate that the average amount of milk marketed 79 per co-v1 per lactation vru.,ies from 1,000 to l,Soo liters in spite of large rations of concentrates. This amount is far too low for an adequate return on the investment in land, livestock, and equipment and on management and labor. It is also a major reason why the dairy industry receives a subsidy which absorbs so large a part of the national budget. In a country so favorably endot-red qy nature for dairy production, there is no need for any subsidy if milk production and marketing are reasonably efficient. The logical method of eliminating the artificial support provided by subsidies is to reduce costs. An essential element in reducing costs is to improve the annual output per covr. The performance of many individual dair,y herds in Uruguay and the record of countries with similar natural conditions prove that the goal of 3,000 liters per co1~ per lactation is well 1r1i thin the reach of dai:cymen; if all proc.uction factors are 1vell coordinated. 8. Huch more effective use should be made of standard techniques of culling and selection, 1:1i th the goal of an effective annual replacement rate of twenty percent of the covT herd. Uruguay's dairy farms have many animals of high quality and most of tre dairymen appreciate the value of well-bred stock, but the general quality of the herds is much lov:er than it needs to be. The main reason is that practically no lo"tor-producing cows are culled and no selection takes place among the heifers used for replacement. Diseases cause small calf crops and much uaste in the herds. 80 This factor, combined uith the rapid expansion in total numbers of cot-IS over the past 14 years, has led to the rearing of almost every heifer calf born irrespective of its capacity to produce. The competition between non-milking and milking stock for available feed is increased, and the use of standardrelection procedures is impossible. On most of Uruguay's dai~ farms, the average ratio between total cattle and coHS in milk is three to one, which is exceeding- ly 1..ride. .A ratio of two to one is quite feasible and even a ratio of one and one half to one is not unattainable. Ratios of this order Hould require an annual replacement of approximately 20 percent of the co"t-JS so that at least 50 percent of the annual crop of heifer calves could be discarded and effective selection could be carried out. This rate assumes an average milking life of five years for each cow. It is obvious that a vicious circle perpetuates the unsat- isfacto~ situation in the dair.y industr,y. Milk production per cm,J is low, as is the rate of reproduction and survival. To provide an adequate milk supply, therefore, an increase in the number of cows is necessary. This prevents the culling of low- producing G01i-TS, and no selection takes place among heifers used for replacement. This circle must be broken at some point. The obvious startinr-- point should be an all-out attack upon disease Hhich is discussed in Recommendation JD belo'tv. Other steps also 1r1ill need to be taken. All practical measures to increase production per 81 covr will be needed to reduce the necessity of increasing the total number of COlvs to meet future eA.'Pansion. The importance of culling and the selection of high-producing heifers has already been discussed. Milk recording techniques should be extended so as to provic~e all commercial dairymen 1..rith the factual basis for improvinr, their herds through culling and selection,. .Artifici::1l inseminc:,tion should be more ~·ddely used to improve the breeding stock of d.c:--..iry herds. The present use metde of it is ineffective,and it is suggested that an artificial in- semination service be organized to provide complete OQVerage of the major milk-producing ~ones. This \·rill not require research or investigation; all that is needed is the application of the experience of other dairy countries. 9. As one step touard attaining a higher production per cot-r, a vig~rous educational campaign should be undertaken to demonstrate to dairy farmers the necessity and profita- bility of improved feed:i ng for all classes of 'dairy c~ttle. Better nutrition can brinp; about important increasGs in the yield of milk per cow. Tne noor nutritional condition of dairy cattle of all eges vras observed to be the rule ra.ther than the exception in Uruguay. Quantitative undernourishment is evident among all dairy herds. Probably qualitative malnutrition also exists. The basic nutritive requirements of dairy cattle in quantity and composition of feed are vJell knovm and widely documented, but they are obviously not fully understood by U1~guay 1 s dair,y farmers. A vigorous campaign of education and 82 demonstration is required to bring about the elementary improve- ments in feeding practices that are necessar,r. Special attention must be directed to the nutrition of calves in order to reduce mortality rates and to increase vigor. The present system of rearing calves on the mother, allovJing each calf to suckle one teat, is primitive and wasteful of milk and should be replaced by modern hand-rearing practices. Much greater reliance upon improved pastures is essential in the rearing of young stock if low costs and better health are desired. Improved nutrition of milking cows must aim at lengthening the lactation period as well as increasing the daily yields. The prevailing average lactation period of less than eight months reduces the yield per cow and increases the total number of stock thc::t must be kept to maintain an even supply of milk. Extension by one to two months is feasible through better feeding and would assist materially in reducing the three to one ratio between dairy cattle and cows in milk. In developing a progran for improved feeding, it is often first in importance to determine Hhether calving should be concen- trated in the autumn and spring months or whether it should be distributed evenly throughout the year. The calving pattern will become increasingly important as the reliance on pasture-feeding increases. Available data on climate suggest strongly that Uruguay should concentrate calving in the autumn, with spring calving as a second major period. Such a practice would be bet ~er than the present calving rhythm for adjusting the feed requirements of 83 fresh milking cows to the available feed 8Up:plies on pastures. A simple field sur\Tey of production per cow in relation to the month of calving could provide a quick and inexpensive check on the validity of this suggestion. 10. ~ry cattle should rece:i. ve priority in plans adopted ~ the control of foot-and-mouth disease and -~~tagio~s abortion through the use of vaccines. Disease seriously limits :Jroductive efficiency. Foot-and- mouth disease, contagious abortion, mastitis, and tuberculosis are widespread throughout tb.e dairy areas. 'lne financ:_al losses per animc:l due to foot-and-mouth disease are far grsater 1-ri th dairy cattle than beef cattle and any national plans for controlling this disease should consequently give priority to dairy cattle, so long as either the supply of vaccine or the means of applying it are limited. Priority should similarly be given to the use of Strain 19 vaccine in the initial stages of controlling contagious abortion. NoH that the effective control of most cases of mastitis is possible vJith antibiotic therapy, the necessary antibiotics must be made av2.ilable in a form suitable for use by all dairymen in providing inexpensive and ilmnediate treatment for actua.l and suspected cases • The exi.:·ting program for the eradication of tuberculosis should continue, with the eventual objective of eliminating this disease. Since tuberculosis is not a cause of major economic loss, ho~:;ever, and since most fluid milk is pasteurized before consumption by humans, any extension of the plans for eradicating tuberculosis 84 among dairy cattle must not be allowed to interfere with the measures for controlling other much more important diseases. Improved Economic Organization 11. The output of milk per unit of labor should be increase~ ~.rapidly as possib~by the general .~doption of ~hin~ milking and other labor-saving devices. The dependence on hand milking in Uruguay seriously restricts the output per man at the present time. Efficiently organized machine milking not only enables a man to handle three times as many cm.rs, but it completely alters the whole nature of dairy farrr.ing by making it a much more attractive way of life. The effect upon the cost of production needs no emphasis. The adoption of a type of milking machine in which the milk flows directly into the milk can should receive consideration in preference to machines 11\Thich employ milking buckets and thus involve unnecessary hand labor in transporting milk from the cow to the milk room for cooling and loading. Major econm-,ies in labor can come also from the m.echa.nization of processes for renovating pastures and for preserving and feeding hay and silage. TI~e pre2ent system of feeding harvested green feed, silage, and hay in barns and stalls should be Eliminated. Indoor feeding is expensive. Nuch labor is required to transport feed to the feeding barns, feed individual animals bytand, clean barns, and remove the manure. Indoor fo.:.;ding must be condemned also on sani t2.ry grounds 1.rhen it is carried out in the same barns where 85 cows are milked. It is also an obst~cle to the maintenance of soil fertility, because much ani.':lal manure is wasted arotmd barns by deterioration and by the failure to retturn such residues to the fields. The efficient dair,r unit should have a light tractor and trailer, together with tractor mo1'ler and side-delive~J rake vv-hich ·will permit rapid and efficient collection of feed and subsequent feeding in the field. 12. A price premimn should be offered for winter milk as an incentive to a better seasonal adjustment of milk production. I:ilk produced during the w·inter costs more than that obtained during other periods of the year, yet for the da~ indust~ as a whole there will be a reduction in costs per unit i f more winter milk is produced. Premium payments for milk delivered ii'1 winter are used in nearly all specialized dairy countries to li.l1lit seasonal fluctua- tions. The statistics of COHAPHOLE, the national cooperative of milk producers, on supply and sales for the past 25 years indicate a consistent L~crease of surpluses in summer and deficits in winter. It is true that the current practice in Uruguay of pay- ing a lovmr price for surplus milk in the surnr:1er results in a higher average price for winter milk, but this method has the ps:'"chological weakness that producers tend to regard it as a penalty for over-production rather than as a premium for balanc- ing the supply. 86  13. Incentives shou~d be provided fo~ improvement of the quality of milk. The treatment of milk in urban pasteurization and bottling plants does not obviate the necessity of producing a clean, healthy a~~.d rich milk on the dairy farms. On the contrar.f, the need for a high quality of fluid milk before pasteurization is increased. The method suggested to impro--:e the regrettably low quality of the average milk received by ODNAPROLE is discussed in Part II along with other marketing practices. TI1e method consists of paJdng premiums according to specific criteria of quality. 14. The general structure of tho industry should be. changed so that uneconomic dairy-farm units will be eliminatede A close ex~~ination of the general organization of milk production in the large milk zone that supplies Montevideo has raised serious doubts whether it is economically feasible for most dairy producers to operate efficiently as tho industry is now organized. In 1950, 85 percent of producers supplied less than ~-5 percent of the total milk. Nearly half of the farms had from 10 to 30 covm each, employed two to three 1-wrkers, and sold less· than 30,000 liters during the year. Gross ~n d net income vJere too loH, even at subsidized prices, to provide any margin for the limited capital investment invclvcd in adopting the changes in methods that are proposed herein. It is imper2.tive that consideration should be given to ways and means of increasing tl1e average dairy herd to at least 40 cows 87 ' on specialized dairy farms. This does not necessarily mean that all far.m areas havo to be increased or that all small units must be eliminated. No st dairy farms could carry a minim1h'11 of 40 coHs if the suggested improvements in pastures and pasture management vrere made. It is probable, hoHever, that the Governmeht vti.ll have to take ste~s to remove the limitations imposed b,y existing conditions of tenancy. Most dai~ farms occupy land rented on a short-term basis, without adequate provision for compensation to the tenant for improvements. Reseeding of pastures, subdivision, and the provision of water supplies -- three steps essential to reorganiza- tion -- are not like to be attGmpted under the present tenancy system. 88  CHAP'l'ER XL SPECIAL CROPS This section deals with four crops: sugar cane, sugar beets, rice, and potatoes, which, for a number of reasons, are considered to be "special crops". In the case of sugar cane, Sugar beets, and potatoes, cultivation is still in en eX'_tJloratory stage end the growers are concerned with initial problems. Rice is an established grain crop and the gro-v-rers have much knowledge regarding its culti va- tion, but in the area 1·:here most rice is produced there is insufficient experience and knovvledge of the treatment of soils, the control of i..rater, and other problems. l. The expansion of beet sugar production should be suspend- ed so lonr as good prospects for producing sugar from cane at substantially lower costs than from beets are under investigation and have not been disproved. The development of sugar production up to the level of domestic requirements should proceed, but such development should be based on a definite policy of cost reduction. To this end, the relative costs of cane and beet sugar should be determined as soon as possible. ~.·\lhile the production of .sugan cane in the Departments of ArtifaS and Salto is still in an experimental stage, it holds some promise of providing rav1 sugar at lower costs than sugar beet production. It appears possible that the yields of ra"t<r sugar per hectare of irrigated cane c~n be raised to a level far higher than that of beets. At the same time, the stalk residue (bagasse) supplies all the fuel n~eded to mill the cane, and there is a market for the only by-product, molasses. Even considering the climatic risk, the opportunity for improvement seems greater than in the case of sugar beets, but the sugar cane industry vrlll need the best equipment and the highest efficiency in extraction if it is to succeed in reduc~~g costs and remaining adequately profitable. In undertaking measures of support, the C'10vernment should concentrate on effiency in the production of the sugar-bearing plants themselves end on effiency in the sugar milling industry. The l,Iission is a1r:rare of the provisions of the Sugar Act of June 12, 1950 hnich grant tho sugar mills import quotas of raw sugar in exchange for their obligation to expand their output of domestically-produced sugar by at least ten percent per year and to buy at guaranteed prices all beets or cane offered by producers. The Eission believes the.t the decision to accomplish the increase in domestically-produced supplies of raw sugar by expand- ing beet production requires a most critical revie1rr. Even assuming excellent .boe.t yield in Paysandu and other suitable locations, beet cultivation in Uruguay suffers from a number of incurable economic as Hell as technical impediments. In a climate "rhich favors the gro-vrth of grass, as in Uruguay, beets require an excessive anount of cultivation to keep them free of \-reeds. Costs of processing are high, beca~se all of the coal is imported. Roughly one half of the caloric value of the sugar beet crop consists of tops and leaves, and the mill by-products are pulp and molasses. In view of the abundance of relatively low-priced cattle feed, grm,rers cannot rely 9n the sale of tops and leaves 90 for supplementary income. There is no market for pulp, a.nd thus the sugar mill must rely for supplementary revenue solely on molasses for distilling alcohol. The present heavily subsidized price of beets will lead to further investment in the industry. This would prove to be a serious mis-investment if cane sugar 't-Jere to prove a permanently economic enterprise in the north-r·:estern part of the country, or, alternatively, if the imports of raw sugar at a much lower cost should be maintained. The further e~ansion of the sugar beet industry thus raises the serious ques ijion of a perpetual need of heavy subsidies. If this can be avoided, investment c~tal can be set free for other profitable improvements in agricultural production and marketing. 2. The cost of production of rice should be reduced by the more intensive use of land through diversified farming!t The culture of irrigated rice has been successful. in the past under a single cropping system which has utilized the natural fertility of the soil and has periodically rested the land by letting it go back to natural grass. There is good reason to believe that the yields of rice could be substantially improved and the costs of production per unit of product reduced if improved cultural and management practices 't>Tere adopted, such as seeding the land to leguminous grass mixtures after rice for more intensive use as temporary or permanent pasture, and growing sunflowers or hybrid corn in rotation with rice. 91  The irrigation and drainage ditches used for rice land are expensive to construct, while maintenance is a relatively small item of expense. For this reason, the better use of existing ditches and facilities on rice land by rotating rice Ni't.'1 other crops should be encouraged, particularly where pumping equipment and water supplies are available. Similarly the overhead cost of operating combine-harvesters on rice farms can be reduced b.1 growing other crops for combining , such as sunfl011ers. If it can be proved that the rice and pasture yields can be substantially improved by rotating rice with legume-grass pastures, and if the demand and prices in the t-.'Orld market remain favorable, moderate expansion of rice culture could be encouraged. It would be advisable, however, to avoid an exclusive reliance on rice culture in large reclaimed areas. Other crops should be introduced, at least experimentally, to provide alternative uses of land if the demand or price situation in the world market becomes unfavorable for exporters of rice. 3. Imported seed of the best origin should be used exclusive- ly for the entire potato area, all potatoes should be grown in crop rotation following leg~~es and legume- grass mixtures, and the kind and amounts of commercial fertilizer sufficicntfor a high yield per hectare should be used. Haste should be curtailed by introducing appropriate subterranean storage space on far~ The Government should consider a change in its method of encouraging the expansion of potato cultivation. The present 92 program of price suppo~t encourages a waste of resources so long as the majority of the gro~-rers achieve only the present poor yields. If the support vrere given as a premium for high yields per hectare, the improvement in the efficiency of produc- tion could eventually rnake any support unnecessary. Considera... tion should also be given to making more use of better-adapted soils, such as the sandy soils of the Tacuarembo and Salto areas. These soils have better internal drainage and are more easily cultivated than the heavy soils on which most potatoes are now grown and they ordinarily produce high yields when properly treated vti. th sui table fertilizer. These soils, ho"t-Jever, are located in areas not noH accessible to good transportation. Hence attention ~-JOuld have to be given to this problem if potato production is expanded thereo Potato gro1·rers should be induced to build inexpensive potato cellars with sufficient insulation and easy accessibility. This can be done by constructing covered earth dugouts or rock cellars. Even in countries with much warmer climates than Uruguay, this method is used with very satisfactory results. 93  CHAPTER XII oaCHATIDS, VDmYAH.DS, AND TRUCK CTIOPS Only seven tenths of one percent of the land in agricultural use in Uruguay, and only six percent of the arable land, is uaed for the production of fruits, wine grapes and vegetables. vvithout any public support or encouragement, this relatively tiny acreage contributes 17 to 20 percent of the country's gross agricultural income, a disproportionately large share. In 1949 the value of fruits, grapes, and vegetables probably exceeded substantially the value of all slaughter animals sold, and the present land value of the approximately 100,000 hectares in orchards," vineyards and vegetable culture probably represents eight to ten percent of the value of the 14,322,000 hectares in agricultural use. From the national point of view, the gross agricultural income would be larger if the grapes were processed into wine. It would seem possible to find remunerative outlets for Uruguayan wine in foreign markets and this would offer a more economical use for surplus wine than distillation into spirits. 1. The Government should allocate a proportionate share of public aid for research, education and services for orchards, vineyards and truck-crop production. Present production of fruits, wine grapes and vegetables -- the three most intensive fonns of land utilization -- is in the hands of a large number of growers who, in spite of their experience 94 and skill, operate with far higher costs than are necessary. This is a result of the absence or inadequacy of public aid in the scientific control of pests and diseases, inadequate machinery for spraying or dusting, the unavailability of spray services, and the absence of public supervision and support of seed selection, breeding and the control of nursery stock. An increase in the area of truck crops and fruit is obviously desirable. The high value of the fruit and vegetable production results partly from the fact that a strong consumer demand presses against a small supply and drives prices to levels which, measured against other food prices as well as prices in other industries, seem exorbitantly high. Fruits and vegetables have an elastic demand. Consumption is ver.y sensitive to changes in price and supply. ~\Then the supply increases, prices will decline and consumption expand progressively. An increase in the supply of these products is desirable from the standpoint of a better balanced diet and better health. It would also increase the income of Uruguay and, by bringing about a shift in the diet, might even increas·e the supply qf' meat. for export. Such a supply at lower prices will become available onlY if producers succeed in lovrering the unit costs of production and marketing. If the decline in prices 1-rhich can be expected to follo'tv expanding production is not to assume such proportions as to lead to sudden reductions in output, it will be necessar,y to provide for expanded cold storage facilities by toJhich the shocks 95 of the periodic surpluses can be evened out. 2. Costs should be lowered by increasing yields per hectare with the use of fertilizers, irrigation and pest control. The production of fruits and vegetables is the most intensive type of land use in respect to labor and capital. It involves only a limited area but provides high gross returns per hectare. Invest- ments that bring about increased yields are, therefore, particularly worthy of consideration. In view of the increased returns resulting from the use of fertilizer and the beneficial effect of organic matter left behind by legumes, a great deal of alfalfa or legume-grass mixtures should be grovm by fruit and vegetable producers. Since vegetables are frequently short of moisture during their brief period of gro-vrth, the use of mobile pipe-sprinkler units for irrigation deserves prompt investigation. The Government should grant preferential import licenses for fertilizers and sprinkler irrigation units for truck crop growers. Vegetable growers should be induced, perhaps by such measures as contracts with a special bonus, to apply fertilizer and irrigation on selected li~ited areas. They should also be offered more generous technical aid than is now available in their fight against pests and diseases. Experience in several countries proves that, for many vegetables, improved labor saving methods of cultivation can radically reduce the costs of production. This involves the transition from horti- cultural methods, with manual care of individual plants, to agri- cultural cultivation practices with mass cultivation in the open 96 field. The labor saved b.Y such methods will make it easier for vegetable growers to cultivate larger hectarages and thus to produce profitably at the lower prices which are desirable f10m the stand- point of the consumer. 3. Foreign and domestic varieties of vegetables and fruits should be tested, private initiative in breeding better varieties encouraged, breeding of vegetables incorporated into the Government research program and a system for the certification of seed and nursery stock established. Improved varieties have a great effect on the size and stability of yields and on the quality of the products. So far the growers have not received a~ aid in this field. B.y testing varieties from countries with highly advanced vegetable breeding, Uruguay may share without cost in the benefit from the large investments made elsewhere in this work. Particu- lar attention should be given to the ability of varieties to stand up under cold storage conditions and to respond to heavier fertilization and irrigation. The seed certification serVice should be expanded to include vegetable seeds at the earliest possible date. 4. The Government should apply every feasible measure to expand the number of privatelY and publicly owned power units for spraying and dusting in the fruit, vegetable and vineyard areas. Mechanization of the cultivation and harvesting of grains and 97 oilseeds has made remarkable progress in Uruguay, but the equipment of vineyard operators, fruit orchardists and vegetable gro-v;rers has not kept abreast of the progress made by the ~vorld' s farm machinery industry. The fact that many of the producers have ve~J small areas in production is a further handicap. In vineyards particularly, the cost of spraying or dusting eight or even 12 times a year represents a major item of cost, and the poor equipment presently used is likely to cause extreme waste and an avoidable loss of income. h'ays should be devised to establish these services corr~ercially and public tests of various units of such equipment should be conducted annually. S. Orange groHers should be aided in replacing their trees -vJi th virus-resistant root stock and ever.r effort should be made to reconstruct the orange ~nd_ustry -vJi th a goal of complete replanting tnrithin ~our years. Citrus trees seem ideally suited to Uruguay's climatic and soil conditions. Furthermore, citrus fruit has a preferential place in the diet and the citrus industry had reached an eJ~ort basis before disease struck the orange orchards. The slow rate at which the replacement of diseased trees has proceeded has caused a heavy loss in agricultural income and clearly should be speeded up in the interest of both the citrus producers and the nation as a whole. The Government should hold regional conferences -vJi th the orange growers and should promote the drafting and adoption of a four- year restoration program for the entire orange industry. The main Government support might consist o,f contracting vJi th nurseries for the production of the necessary quantity of virus-resistant planting stock and of extending special credits. 98  CHAPI'ER XIII FORESTRY !/ In Uruguay, unlike certain other countries, there is no conflict between forestry on the one hand and livestock grazing, crop farming, and horticultural land use on the other. These forms of land utilization are found on most of the country's area and must continue to be the principal sources of income derived from land. The primary aim of Uruguayan afforestation should be to reestablish certain local equilibria now seriously menaced and to increase the country's productive capacity. Both private and official interests are conscious of the general problems and major needs, but so far little coordinated action has been taken. The objective of this Report is to suggest the main lines along which development might proceed. 1. Ftrrther measures of afforestation should be directed toward the protection of land and livestock. Much more attention must be giyen to the use of species and varieties of trees which can yield forest products at present largely imported. 1/ In addition to the Mission's joint recommendations in this - Chapter concerning forestry as a supplementary type of land utilization, the Mission's forestry expert has vvritten a separate report V·rhich includes a draft of a forestry law. This report will be made available to the Uruguayan government. 99  Although Uruguay has but little indigenous forest, and although it is reasonably certain that much of the land ·w·as never Tiooded, appreciable progress has been made in developing forests during recent decades. Afforestation has been concerned, hmvever, largely vdth the provision of shelter for livestock and only to a limited degree with the protectton of headwaters and of soils subject to erosion, and with the utilization of otherwise ·waste land. Very little attention has been devoted, also, to tne use of trees capable of yielding cormnercia1 products other than fuel and fencing materialo Since the latter objective is as i:rnportant as that of shelter, the actual concentration on a feiN species of eucalyptus is unwarranted. Uruguay imports annually some 100,000 tons of forestry products - lumber, cellulose, tannin, and rosin - valued at more than .'(,7 million (u.s.). The Mission has been impressed with the relative ease with which a wide range of tree species can be grmvn and with the high yields of tL11ber that can be produced in a comparatively short time. Uruguayan experience has shown that lumber can be produced for boxes, building, and furniture as well as for cellulose. The demand for 1:·:-ood for industrial purposes is increasing all over the world. It may be expected to increase considerably in Uruguay, where per capita consumption has been extremely low, reaching only one fifth of that in the United States. If future afforestation is planned wisely, the country could undoubtedly 100 replace in a relatively short period most of its i!uport.s by its own forest productso It is important to em~hasize that the initial planting should avoid the later creation of a substantial surplus for export. Large-scale p::·oduction inv·olving ultimate depende:'lce upon an expo!"t market would appear to be a highly speculative undertaking at this tiMe, vvhen no extensive plantings yield industrial lumbero Accordingly, the pri1nary concern should continue to be one of protecting land and stock;) Ne-rr forests should be developed speedily in relation to the need to preserve soils from erosion, to conserve and protect water supplies, and to use waste landS such as sand dunes, rocky ridges, and swamp areas which otherwise are a menace to normal a.g1,icul t ure, but Y·rhich can be converted to profitable use~ 2. The target for new forest planting should be .. approxi- mately 200,000 hectares. At present approximately 2.3 per cent o~ the national land area carries trees. Although it is i~possible to forecast future demands or future forest yields with certainty, it is important to have a reasonably accurate estimate of the total area of nevi forest required to attain self-sufficiency in forest products. An attempt to make such an estlinate is necessary if afforestation is to be adequate without leading to Pl'ices :or forest p:-oducts which make forestry unprofitable. 101  Present imports of lumber and other products are at a level which requires some 60,000 hectares of continuously productive forestso Such an area planted in the next few years would not come to full production for 40 to 50 years, but would begin to yield marketable products within 10 to 20 years. The target of 200,000 hectares suggested for the initial period of afforestation vvould permit the consumption of three to three and one-half times as much wood as today. This calculation ls based on the assumption that in the future, instead of being cleared at a maximum age of 8 to 10 years, forests will be managed in such a way as to yield continuously a maximum of high quality industrial timber. The figures do 11ot appear to be unduly optimistic and they involve a forest area relatively modest in size, amounting only to an additional one per cent of the total avaj_lable lando With organized effort, such an area could be planted in lS to 20 years. Such an amount of planting would also be likely to protect a major part of the land which needs it most urgently. It may seem that the area suggested for the initial phase of afforestation is insufficient for the desired yield of commercial products. It must not be overlooked that about 80 per cent of the existing forest area in Uruguay consists of natural forests in poor condition and that the il1provement and better care of existing forests should also yield a sub- stantially larger output. 102  In determining the location of the proposed new forests, special attention should be directed to the protection of the watershed of the Rio Negro. Afforestation could regulate the run-off of the water and reduce, if not stop, soil erosion v.£1ich tends to fill the lake above the power dam with silt. The watershed of the Rio Santa Lucia is of outstanding public interest since it provides the water supply of IJontevideo. It is essential that this zone be adequately protected against irregular water flow by creating n~v forests on the slopes. Similarly, the coastal region of the Atlantic and Rio de la Plata need to be afforested to tie down the moving sand dunes. These three areas in particular must be specially classified as zones of public interest, as suggested later. 3. Afforestation should be developed primarily by private initiative and enterprise. The Government should take the responsibility for approDriate action, however, on lands where the public interest demands afforestation while private initiative has no incentive. Measures for the promotion of afforestation should be graduated according to the predominance of private or public interests. It is essential to distinguish·between two main types of forest land in so far as promotion methods are concerned: lands where private afforestation interests are dominant, and lands Vlhere public interests prevail. All proposed new forest 103 areas should be considered in terms of the eA~ected yields per hectare and the prevalence o: p~ivate or public interest in afforestation. Promotion through pri-vate afforestation must obviously take place since 98 per cent of the land of the country is under private ~nnership. The greater part of the present forests have been developed by private owners without any special stimulation from the Gove:;:·nment. This situation gives consider- able promise that much of the additional forest needed will be developed vii thout special promotion measures~ Much of the land requiring afforestation mainly in the public interest is, however, in private ovinership. Such land is likely to be of poor quality so that yields will be low and the gro~vth pel":iod long. Special economic incentives will have to be provided. These incentives may have to range from limited financial assistance for private afforestation to assumption of the entire financial responsibility by the state. The Mission holds the view that proraotion measures by the Government sh:mld be graduated according to the extent to -vv-hich public interest is involved and according to the expected yield of the forest land in question. The building up of new forests is merely the starting point for a forest economy" Later, it will be the task of forest ovvners to manage the forests in such a way as to secure the greatest possible financial yield, while fully :-especting 104 the protective functions of forests and maintaining a steady productiono The private landowner is in many cases interested in creating his own forest. Instruction and explanation and, above all, the progress of the whole afforestation program will teach him that forests will not only supply his needs for wood for fuel and fencing material, but will also give him a cash yield. In tilne, the landowner engaged in agricul- ture and cattle breeding ·will understand that the forest represents insurance against periods of low returns from other crops& The more the private owners realize these possibilities, the less necessarJ it will be for the Govern- ment to support financially the afforestation of privately owned landc 4o All lan~s in public .~.~ship for which afforestation ~esirable should b~ systematically and fully pla~~q !!!._ the~rtest possible time~' The state owns extensive areas previously acquired or e:xpropriated for afforestation pur~Joses, where operations have been suspended and earlier successes in afforestation have been nullified by lack of care. These unsatisfacto~ results are · largely a consequence of the failure to make available the annual funds necessary for afforestationc It should be recognized that afforestation on la:1d in public ownership is so~netime.s needed to fulfill important 105 protective purposes. The fixation of sand dunes by forests is one example of an essential need which can be filled at the same time that a net profit is being obta:i.nedo It is in the interest of the country for a complete working and financing plan for the affo:::'estation of public land to be drawn up and carried out immediately. Since the afforestation of publicly ovmed land provides an excellent opportunity for stimulating private owners by setting an example, state forests should be established ·when possible with a view to their value for purposes of demonstration. Municipalities have the opportunity, in addition, to create forests for recreational purposes on the outskirts of their public land. It has been observed that the government re~~lation providing• for the planting of trees along public roads by private owners of the adjoining land has had little effect. The l~iission be- lieves that the best way to obtain sh3.de, shelter, and forest products from the highways is by the systematic planting of trees on the public cattle drives by the landowLer, namely the Stateo Progress should be gradual but systematic; only one side of the highway should be planted at first, so that in the early years the other side can be used for cattle transport. T.Lees should be thinned where they stand too close for cattle driving. This ·would simultaneously supply tte fencing material necessary for continuing the plant:i.ng along the hj.ghvrays and a surplus that vmuld be readily saleable because of favorable transport conditions. 106  5o Present reliance on _2ure, i.e., single-species forests, should be abandC?ned in favor_2!.' permanent, .~ntir_:uouslr pr?ductive mix~.2:_!o~:s~~.:f..E~ny_ species C) The species and varieties should be selected primarily accordinr; to their suitability to t~loc~n anc~o the ~~~e of protection sough~_and_~_con~~u::~ly ~.~?-ing to their e:xp~~ comrnerci1.l value. The work in afforestation carried out over the past decades suffers from almost complete dependence on pure-stand fc:-ests. This fact and the practice of clearing the entire stand has imposed severe limitations upon the usefulness of forests. Extensive pure stdnds of trees are also subject to greater risks of damage by fire and disease. There is a most urgent need to develop the concept of per- manent forests composed of different species. Such forests are more efficient from the viewpoint of protect~_on and far safer as a long-term investment. So far as possible, forests should be rene\Yed by natural regeneration, which can be so handled as to lead progressively to stands of varying age and thus to perennial yields. This method of regeneration has the additional advantage of not requiring large periodic investments for re-establis~~ent. Such continuo~sly productive forests provide permanent income and employment, so that they become an integral pa1~ of the whole economy of both the individual landowner and the nation. 107  Little attention has been given to the use of di£'ferent sub-species vrhich produce industrial lumber and, as experi.ence has sho-wn, grow well in Uruguay. This is illustrated by the dependence upon only a few of the maQY hundreds of sub-species of eucalyptus. Sub-species differ materially in their commercial usefulness as well as in their adaptability to thej_r envj_ronment. Failure to appreciate this elementary but important point has been responsible for such extensive use of Eucalyntus globulus, the least valuable of all sub-species of eucalyptus. Close study of all the many possibilities must receive high priority in the program of the proposed research organiz,- ation. Until such time as all the necessary information can be gained by local forestr;J experts from studies on the spot, full advantage should be taken of the extensive information ... vailable < from other countries. To assist local foresters in arriving at decisions regarding suitable species and varieties, the following suggestions are advanced as a guide: (a) on appropriate sites, much more attention should be devoted to conifers such as Pinus insir;nis, Pinus caribea (humid soil), Araucaria excelsa, and A~aucaria angustifolia. (b) In river lowlands and on river islands, emphasis should be laid on the Salicace~, particularly Salix alba, and on the different quick-growing varieties of poplar. (c) All available infornation on the results of research and experier..ce in the industrial usage of the numerous eucalyptus varieties should be gathered from external sources. 108  (d) For ~Tampland, Ta~odium distichum is recommended; in river forests Are~trum romanzoffi_~, heretofore overlooked, deserves attention. (e) Acacia decurrens var, molliss~ should be planted considerably more than formerly because of its eJ-:cellent suit- ability for producing tannin. Systematic experimental planting should be commenced vd thout delay. Since it is not possible vd thin the limits of these recom- mendations to discuss the broad problem of the selection of tree species, it may be pointed out that the technicians working as foresters in Uruguay already possess much knovrledge and experience in this field. Every effort must be made to make this knowledge and exnerience available to land o1mers who up to the preseLt time have had little appreciation of forestry. 6. Adequate control of the importing and production of seed should be undertaken, so that only trees of good origin are cultivated in state and private forest nurseries. Extension of nursery facilities sho·ald be provided. At present seeds are selected where they can be harvested most easily, without considering the quality of the parent trees. There is therefore the danger that strains with undesir- able hereditary character are grown~ This situation should be remedied by designating officially a sufficient number of trees and stands fitted for seed productiono The local Forestry Section of the 1 1;linistry of Agriculture should issue certificates 109 of origin for seeds gained from such trees and standso Parallel control of import.ed tree seeds should be instituted. The afforestation program involves the extension of nursery facilities to provide the increased number of seedlings of different species and varieties that will be required. Con- sid.eration must be given to their establishment.. The Mission holds the view t~at the most rapid progress can be made by· the encouragement of priva·t.e nurseries under conditions of adequate control and supervisions Such control is justifiable on the grou."'lds that national ':larm results from planting ti-·ees of undesirable types. 7. In order to~~ulate action in regions where public interest in afforestation predominates, th~ Go~nment should give attention to the provision of suitable credit incentives to landowners for the afforestation of lands otherv-:ise used for agricultural purposes. The very long-term character inherent in any capital invest- ment in afforestation makes it especially necessaFJ to consider Government aid in respect at least to the special public-interest zones. Various forms of assistance, such as tax abatement or an afforestation bonus, may be found necessary and should be used, but it appears likely that the most important of these will be the provision of the necessary credit for the i~itial costs. The Government should work out an appropriate technique for providing credit assistance. It is essential, however, that 110 such credit be conditional upon official supervision of the establishment, management, and harvesting of the forests in- volved. B. Adequ~te pro_yis~ should be made for an effective forest service and the availability of its services to all private landm·mers. The ad"Uinistration of state forests should_be placed under separate management. Considerable research is necessary to provide the necessary basic information to permit the most efficient forestry develop- ment. Recommendations to this end have been made in Part III of the Report. A Forestry Research Section with experimental forest areas and access to both state and private forests is an essential part of the afforestation program. Vfithout it, any forest service is severely limited in its efficiency. Equally basic is the creation of an effective forest service within the Iviinistry of Agriculture. This Forestry Section should have not only a trained forester as its leader, but an adequate field staff to carry out the necessary work of education, control, and inspection. In particular, it must be given the responsibility of classifying forest lands according to the dominance of private or public interest, and of preparing and executing the afforestation projects. It must be responsible for the necessary control of private nurseries and for adequate control of management practices on forests receiving Government ald. This service should also 111 be responsible for all advisory v:ork in forestry among private landowners. A separate advisory orga~ization does not appear to be necessary in view of the high proportion of activity likely to involve Government assistance and therefore some reasonable measure of Government supervision. The management of the limited areas of state forests constitutes a separ~te problem. It is suggested that the present organization be simplified, working methods rational- ized, management intensified, hiring of workmen placed on a different basis, and regular yearly budgets provided for. Along with the afforestation of state land, the Forestry Section has the task of managing state-owned forests so as to procure lasting and maximum net returns·. This commercial goal makes a separate administration highly desirable, since it is hardly possible to mix advisorJ services, inspection, and control with direct forest management of a com.111ercial type. The Mission believes that the best solution is to place the management of state forests under the Ministry of Public Works, with which the National Parks are already affiliated. The change would be advantageous in view of the fact that the main highways, along which large-scale tree plantations have been proposed, are also under this MinistrJ. This reorganization would then leave responsibility for basic education according to a special forestry curriculum with the University, for a general forestry service with the 1hinistry 112 of A~riculture, and for the commercial management of all state forests with the Ivtinistry of Public Works. 113  CHAPTER XIV THE ROCHA-TREI!'-JTA Y TRES ~LAHATION PROJECT No examination of possible adjustments in land use can ignore the possibilities of reclaiming waste areas of land. The extent of such areas in Uruguay is relatively small but special areas exist that warrant attention. Reference to seve:;:-ely eroded areas, to sand du:n.es, and to other vraste land has been made in other parts of this ~eport, where steps for reclamation have been reconmended. One special area, the Rocha-Treinta y Tres floodland area 1rrhich bas not been referred to else~:-rhere deser-ves special con- sideration because of the high capital cost involved. 1. A cor:mrehensiye and coordinated study of both the agri- cultural e.nd enginee;ring pha.s es of this pro .i ect should be made to detennine the extent to which th~ Rroject is de- ~ble and economically fe~le. The Rocha-Treinta y Tres floodland project of approximately 650,000 hectares represents potentially a large addition of arable land to the present cropland of Uruguay. A project of this magnitude requires consideration of the economic, agricul- tu~al and engineering factors involved to reduce the risk of large-scale mis-investment of capital and the serious misalloca- tion of manpower and other resources. 114  The Hission refrains from any judgment on the advisability of developing hyiroelectric power as an associated part of this project. The engineering plans for the development of the floodland area south of the Cebollati River, known as the "Zona del Este", appear feasible frora an engineering standpoint. The l\1ission has been adv~sed that the technical section of the Association. of Enginee~s of Uruguay approved the plans in December, 1944. It is imperative that a number of further preliminary studies be made, Hhether the project is to be instituted in whole or in part. 2. Tq~ proposed proje~~should be reconsidered in the light of the chancres in land use recommended in this .renort. A project as large as the one proposed might readily be developed under several alternative plans. Although all plans might be workable, each would have certain distinct weaknesses and advantages. On the whole, the part of the project concerned \-lith drain- age appears more practical and less problematical than the use of tva.ter for irrigation. :Sven where drainage is concerned, l_~weYer, many questions remain. The systen of interior drainage canals should be an integral part of the main drainage system. iiuch of the land has a very gradual slope of one meter in three kilometers or less, and this involves the danger of silting of ditches vrhich must be met by appropriate designs. A revaluation 11.5 of the project shoulc indicate whether there should be one or several parallel canals, and, if several, l..rhat their design and location should be. Irrigation seems feasible only near the streru~ outlets where water is available at all times. Only small areas in addition to the present 9,000 or 10,000 hectares could be ir- rigated from these streams. Should much larger areas be irrigated, storage facilities for stream water would be needed, \·Ti th d:J.rJS and irrigation works, at a higher ~levation. Only Hhen the benefits from the development of irrigation vlOrks are shov.m to be economically attainable should development be con- sidered. 3. A detailed survev of the soils of the floodland areas ~hould be undertaken to determine the extent and distri- bution of different soil types and to e·valuate these with respect to c1.rainability, fertility, and suitabilitv for .-i_ thout irrigation. specific crops grown with or ·,. Very little information is available regarding the different types of soils in the area, their distribution, and their agri- cultural properties. A soil survey 'tvould yield a soil l:J.ap l·li th the location of all important types, their permeability, and related qualities. (3ee Note E, The Need of a Soil Survey Program, page 217.) 4. Fie1d studies of land use should determine the effect of flood control, drainage and irrigation on 'tvidening the 116  The economic feasibillty of a soil reclamation project depends ultimately upon the kind of crops that can be groHn and the yields that are possible. Huch of the a1"'ea nou under \.rater is used almost exclusively for summer grazing. Little inforrn.ation is available on the yields of different crops that can be obtained after reclamation and uith improved management. Hence field experiments and trials should be undertaken on small representative areas of soil that have been adequately drained and protected from floods to forn the basis for deciding upon any further development of the land under consideration. 5. Once the economic feasibtlity of reclamation is estab- lished for the entire area or sections of it, the development of the proje9t should proceed by stages. Developing the floodland by stages lvill siLnplify land utilization and settlement. .Such a procedure will also provide an opportunity for testing the soundness of various phases of the program, leaving some leeway for adjustments in plans to meet unforeseen circLL~stances. Provided that soil investigations support such a develop- ment and that the present cost estimate of roughly tlvo million pesos is confirmed, the drainage and flood control of the 200,000 hectares south of the Cebollati River and extending J/ south to the proposed canals 1 and 2, deserve a high priority. 1/ See Zona del Este Nanuel Plano H2795 by Bula. '117  PART II TRANSPORTATION, STOP-AGE AND MARKETING If advancement in applied tecru1ology and research remains confined to production processes while the marketing economy is left unchc~ged, Uruguayan agriculture vdll continue to operate unaer a serious handicap in competing with countries with more advanced marketing systems. In countries that are highly developed economically, the amount of money the consumer spends on food and farm-produced fibers combined is roughly twice as much as the farmer gets for his products at the farm. For individual commodities, the farmer's share in the consumer's peso may be as low as 10 or as high as 90 percent. The spread between the farm price and the retail price is accounted for by services such as transportation, sorting, grading, packing, pro- cessing, storing, wholesaling and retailing, as well as by wastage and deterioration. The cost of the end-product to the consumer depends as much on the technical equipment and the managerial and operational efficiency used in marketing as on production processes. Considerable progress has been made in Uruguay in improving equip- ment and practices in transportation, storage, and marketing, but it is the view of the Mission that there is much opportunity for further improvement. Much progress has been made in the last generation in other countries with which Uruguay must keep pace. As in the case of production technology, much information regarding improved marketing methods can be obtained from abroad which would be of real benefit provided that proper adaptations are made to Uruguayan conditions. ll8 There is also serious need for the indigenous study of marketing problems. Detailed recommendatl.ons concernj_ng the marketing of parti- cular commodities require far more intensive time, analysis, and consideration than the Mission was able to devote to this extensive field. Yet the Mission is convinced that the need for certain basic changes in the system for storage and marketing and in the pricing system are so obvious that remedial action should commence with the least possible delay. There is one essentj_al difference between the recommendations concerning greater efficiency of agricultural production on the one hand and the recommendations for transportation, storage, and market- ing on the other. Agricultural production is a matter of private enterprise and the process of change depends on the actions of some 100,000 individual operators. The Government can assist this process but cannot execute the work itself. In contrast, the changes in transportation, storage, and marketing, require the regulatory func- tions of Government and in many instances public institutions and services, while private agencies can act only within the boundaries of such regulations. The principal changes recommended are improvements in rapid transportation, expanded facilities for mechanical cooling and cold storage, facilities for the sorting, grading, and packing of peris~ ables, more and better auctions, and a system of standards and grades to make prices effective and to permit incentive payments for high quality. 119  CHAPTER I TRANSPORTATION 1. The Government should consider the benefits to agri- cultural produ.ctioJ?. and marketing and to the development of the rural economy by the reduction in the costs of transportation which can be accomplished by: (a) improving the ma~n cross-country highways and the connecti~roads throughout Uruguay, particularly in t~e eastern and northern part of the country; (b) improving railroad freight services for agricultural products; and (c) reducing the cost of gaso- line for trucks used exclusively for the transportation of agricultural commodities. Uruguay is fortunate in having available everyw-here an abundance of rock and gravel, the essential raw materials for roadmaking" In view of the availability of modern high-speed, heavy-duty, long-distance trucking in Uruguay, the extension of highways and improved secondary roads into the eastern and northern parts of the country promises to serve as a sti~ulant to rural development as the railroads did a century ago. A program of road construction with a fixed time schedule vrill improve land values and will thereby support many of the measures to improve production recor~ended in this Report. Farners will benefit from road construction by improved rreconomic location" because then they will lose less of their gross income through high transportation costs. Farmers whose land values are enhanced by road-construction will have better security to offer for improvement loans. V!ith improved country roads, the c est of ground limestone and 120 fertilizer, of such importance in increasing production, would fall within the reach of many additional farmers. In shipping livestock and wool, fast transportation on improved roads, or movement by railroad with accelerated freight train schedules, would mean a reduction in costs. For perishable commodities like meat, milk, eggs, fruits, and egetables, the availability of such transportation would permit production to be transferred into the areas of lower costs. This could be particularly important to the dairy industry. Improved roads also contribute to a greater degree of equality of services for the rural people by giving them better access to hospitals, medical services, education, and cultural activities. Private and state-sponsored colonization depend also on better roads. The tlinistry of Agriculture, although not responsible for road construction, should indicate priorities of road development according to the assistance that would be rendered to agriculture and should guide the public agencies which administer road construction and maintenance in the interests of the entire rural community. Road improvements offer the prospect of such great benefits to areas which at present have the least communication with the markets that the expenses could be met at least in part by higher real estate taxes on land adjacent to the improved roads. 121  CHAPI'ER II STANDARDS AND GRADES, AND EXPORT QUALITY CONTROLS 1. The Ministry of Agriculture should study the feasibilitl of establishing legal standards and grades for agricultural commodities, and should apply these gradually to the domestic market as well as to the export trade. The marketing of most agricultural products, with the exception of the export trade in wool, meats, and hides, is at present much more costly than is necessary. High marketing costs are due in con- siderable degree to the absence of uniform quality standards and to the sale of ungraded goods, and the risk of quality is transferred entirely to the trade or the consumer. The consumer's preference for better quality does not find a clear reflection in the producer's price differentials for quality grades. Even in the case of co~~odities to which the trade applies inter- national standards of quality as in the case of meat and wool, or for which it uses its own grades or firm brands as in the case of oranges and apples, the price to the producer in most cases is not determined according to grades uniformly applied throughout the country. The accumulated results of more than thirty years of research on national standards and grades of agricultural con~odities in the United States are now well kn~m, as is also the experience gained in New Zealand, Australia, Holland, and Denmark. These grades and standards can be introduced, with some small adaptations, in Uruguay. The payment of the highest price premium to those producers who best comply with the consumer's demand would give both farmers and traders 122 a powerful incentive to improve the quality of their products. 2. In the case of all export commodities, careful study should be made of the benefits obtainable from the intro- duction or improvement of minimum requirements of quality, correct declaration of quality grades, and the enforcement of such standards through quality controls over exports. Uruguay's agriculture must be able to sell products of a stable and reliable quality, and, if possible, a better quality on the average than competitors can offer, if it is to meet foreign competi- tion successfully in the future. A few deliveries of unreliable quality do more harm to an export trade than many high-grade shipments can undo. This consideration applies to meat just as much as it does to vegetable oils, oilseeds, casein, cheese, and oranges. Export controls, if properly arranged, will not cause delay, and they can introduce or improve standards and grades which also may be applied in the domestic market. Increasing world competition can be met not only by price adjustments but also by improving quality and services offered to foreign customers. 12)-  CHAPTER III PACKING SHEDS AND WHOLESALE AUCTIONS 1. The feasibility of establishing grading and packing sheds in the producing areas should be explored. In the case of perishables like fruits, vegetables, and eggs, the centers at which the waste is separated from the clean and graded product must be moved as close to the producer as is practicable. Such a move will reduce the costs of transportation and storage as well as other losses in distribution. The establishment of packing sheds is needed, therefore, in the main areas of surplus and shipping. Packing sheds may be of the utmost simplicity in construction and arrangement, but they must provide for labor-saving processes. They may be operated by producer cooperatives or by agencies of the wholesale trade. They constitute the kind of industrial enterprise which creates employment in rural districts. Some wholesale merch~~ts of fruits and vegetables operate packing sheds of their mm, but a much larger proportion of fruits and vegetables should be sorted and packed in the producing areas before being sent to the wholesale and retail markets. Cooperative producers• packing sheds or licensed commercial packing sheds that render service to farmers should be organized in the centers of all areas of production with large commercial surpluses, preferably at railroad sidings or near main highways. In the packing sheds, fruits and vegetables should be graded for reliable quality, sorted for equal size, and properly packed 124 according to the needs of the wholesale or retail trade and consumer preference. Packing sheds must be profitable or at least self-maintaining enterprises and hence must not be subsidized, but their introduction may need the energetic sponsorship of the Ministry of Agriculture through farm advisory specialists on fruits and vegetables. Containers in standard sizes, such as boxes, crates, and baskets, are necessary for the proper operation of packing sheds. A survey should reveal to what extent local craft workers can use domestic wood to supply the needs of the packing sheds. 2. The Government should organize a careful study of the possibility of introducing the auction system to the sales of commodities such as wool, lumber, oilseeds, fruits, wine grapes ~d vegetables. Auctions with cumulative bidding, or even better, the Dutch system described below, have proved to be the most effective method of selling goods promptly under effective competition in both the wholesale and retail trade. They serve to collect quantities of commodities from many small sources in the production areas, so that the individual producer need not transport the goods into urban markets where he runs the risk of not selling them or of selling them below cost. The time thus saved for the producers can be applied to better practices on the farms. The continuation of the wasteful system by which hundreds of producers of fruits and vegetables sell individually to the retail trade and to consumers in giant urban farmers' markets does not impress the M[ssion as being the most satisfactory solution.  Auctions held regularly in the production areas for whole- salers and retailers would substantially reduce the costs of marketing. Auctions for fruits and vegetables should be located at the same places where the cold storage warehouses.will be located, in the center of areas vvith a sufficient density of commercial surpluses. The Ministry of Agriculture should study the fruit and vegetable auctions in Holland. The Dutch auction system has a number of advan- tages for the small producers and the retail trade. It makes the sales transaction automatic, determines the ~~rket price by competi- tive bidding, wastes no time, and provides for the payment and removal or storage of unsold goods. It protects the seller and the buyer. By setting definite requirements as to quality and preparation of pro- duce for the market, it will have a strong influence upon proper grading and can serve as the means by which official grades can be introduced as soon as they have been established. The auction system can reduce the space required for such markets as the Mercado Modele to a fraction of their present area by organizing a steady flow of goods in the process of continuous auction sale, instead of having hundreds of sellers wait around the major part of a day for individual buyers. This system will be most likely to succeed if these auctions are organized either in the form of a cooperative enterprise of producers or as a public corporation with an equitable representation of producers and the trade on its board of directors. 126  CHJJ..PTLR IT COLD STORJ~GE AND COOLING PLANTS 1. The Governnent should or_g-anize a study of the proper location and the necessary specifications for nultiple- purpose cold storaf!e plants without delay and should ensure that the plants are constructed. Air-conditioned storage can elinina te substantial waste from spoilage, shrinkage, or deteriora.tion of the quality of all perishable products. Control of ter11pera.ture and hurilidi ty, and the circulation of air in storage roons, inhibits the activity of bacteria and fungi and reduces chemical deterioration. The period of storage, processing, or marketing can be stretched to remarkable lengths for nany vegetables and fruits. Storaee facilities prevent the narket from being glutted during the main harvesting season, n1ake use of otherwise surplus commodities during the peak and late-season IE riod, and r:e rmit the gradual processing of crops which -v1ould other1"1ise have been lost by spoilage. P~pples, onions and s i1.'"ilar crops can be kept in good condition for as long as a year or more by using appropriate temperatures. The period durinD which a pear crop awaits canning or marketine can be stretched to three months. :1eat can be kept for several weeks. The provision of safe, high-quality milk at reasonable cost must be the major objective of efficient railk marketing. 127 Fluid milk raust be cooled v1i th the least possible delay after milking to a temperature of tvvo degrees Centigrade and must be kept as close to that temperature as possible until fS.Steuriza- tion, and after pasteurization in the plant until distributed to the conswner. Eg{;,'s are another comr.wdity vvhich can be supplied in large volume and good quality only with the aid of cold storage. Careful planning of the proper size and location of facilities is essential if the problem of supplying the lo-r: temperatures for so many different products vvi th so large a volume and with a flow ciu.ring every rart of the year is to be solved ~·;ith maximum economy. The most urgent need is the establishment near the dairy farms of collecting and cooling stations for milk vJhere machine cooling can take place before the railk is poured into large tank trucks or tank containers for shipping by freight car or truck. The cooling plants necessary for the dairy industry should be built in so far as possible as multi-purpose ~;)lants, COLibining milk cooling units 'ivith extensive cold storage sy:>ace for butter, cream, meat, poultry, eg[s, vegetables and fruits to the extent that the supply of these perishables within the area requires such storage. The plants should be equipped also to ~oduce and sell block ice in subst&ntial quantities and should be flexible in operation to permit rentinf of unused space for the purposes of ordinary fireproof and v1ea ther-proof warehouses. 128  It is essential that the plants should be authorized, licensed, and operated under Government supervision and under bond, so that commodities in storage can be financed by regu- lar negotiable viarehouse receipts. The l1iission is of the opinion that these new cold storage vmrehouses should not be built primarily for large quantities of potatoes, which can be better stored in potato cellars on farms. It seems desirable to give due consideration to the possi- bility of including in such plants limited deep-freeze storage capacity for berries, fresh grapes, t:reen peas, and meat. Hhile it is probable that deep-freeze storage will p: ove to be unprofitable for some time to come, it is advisable to exclude this process only after careful investigation. 129  CPAPTER V MA.RKETTIJG RECOMMENDA.TIONS FOR SPECIFIC COJ:ITviODITIES Wool 1. Wool should be processed to the econo~~c limit before eeEort, with the aim of achieving the largest possible export of scoured sorted wool and tops. Wool, as Uruguay's most important income-yielding raw material, can make a special contribution to the country's economic policy of creating more industrial employment. The main emphasis in the past has been upon the domestic manufacture of woolen yarns and finished textile fabrics, while the major part of the wool exported is still shipped as graded raw wool. If, however, the policy of increasing domestic employment is seriously to be followed, wool exports should shift toward the exportation first of sorted raw wool, later of sorted scoured wool, and finally of wool tops, although it is probably not feasible to export only tops. 2. Fleece grading should be moved from fiontevideo to the ranches to assist in improving quality. Fleece grading and skirting (preliminary cleaning) of the wool clip are at present performed by the wool trade in Montevideo. This -v·;ork should be done on in elividual ranches by competent wool graders. This change would not necessarily yield real improvement in the prices obtained by the growers, 130 but it vvould 1aake the wool grov1ers rr..ore clearly avvare of the actual grades of wool obtained from their flocks and ·would bring about the purchase of wool by fleece grades instead of by clip at the ranches. Ho fleeces should leave the ranch without being skirted, because the presence of lumps of dirt increases the risk of the buyer and is discounted in the price. dhen the grading of fleeces is transferred to the ranches, the wool trade should sort the ·wool into uniform classes in order to obtain better prices for the classes fi' eferred by domestic and foreign buyers. 3. Consideration should be given to the nossibility of establishing the auction system as the main method of selling wool. The sale of v-wol in sorted condition at auctions could benefit the Uruguayan uarket in general and the wool growers in particular. Uruguay's "'·mol would be made better kno·wn by accumulatint:, the major part of the clip for an organized series of sales, and more cor~1peti tion would be created among foreign buyers, thus reflectin~· r~1ore accurately the demand at the ti11le and yielC1ini~ prices more in line with demand. The administrators of the auction, who should represent wool grovJE.~rs anc the iiJO ol trade, coulci. adopt r.iniHum require- ments of quality in line Hi th the recomFlendations made earlier in this chapter. The success of the auction system as operated in r~ustralia, New Zealand, and :South Africa suggests that the same marketing procedure way vmrk well in tiruguay. 131  4. Individual vvool growers or cooperative associations of growers should be freely granted export licenses for wool. If vvool growers have enough initiative and enterprise to seek an improvement in the marketing of their wool abroad, they should have the full support of the Governnent, because the country as w€11 as the sheep industry will benefit thereby. bxperience t:ained in the search for better foreign outlets for Uruguayan VTool may assist in better adjustment of the production policy to foreign denand. 5. Consideration should be given Yfhenever circmistances permit to the abolition of volume-of-business quotas for the p&cking plants and to the establishment of competition throuf?'hout the meat-packinF industry for the domestic and export markets. The singular importance of efficiency in the rneat-pacl:ing industry in L.Truguay is eElphasized by the high share which meat contributes to foreign trsde earnings and by the large propor- tion of a~ricultural incoue which is paid to the producers by the buyers anO. processors of th:_s prinary commodity. Without entering upon a discussion of the issue of Government-monopoly enterprises, the ~.ission feels obliged to state that a system of allocating quotas of production to tlle meat-packing plants inevitably invol·:res hit,her costs of operation than are necessary. 132  6. rrhe present method of payina producers for sheep and cattle should 1:ive way to the earlier system of paying for quality on the basis of dressed carcass wei.rht and ,.::rade. The differential for superior grades should be sufficient to provide an adeauate incentive for the ~reduction of high quality meat. This procedure viill encourage emergency feeding during drought periods and. the planting of legumes to improve pastures as well as improving the average anilT:al product and the yield from each carcass, with resulting lower unit costs. 7. h special effort should be made to produce fat larabs for export. The Lission feels that the export of five-month-old fat lambs, born in v1inter of ewes grazed on grasses, legumes, and v1inter grains including nhea t, and. reaching the market in October, November and December, is a possibility that should be carefully exarained. Such a marketing practice vvould fit well into the program of livestock production and land use recom- iilended in the precedine chapters and would tend to reciuce processing costs in the meat-packing plants. 8. A system of standard cuttin£:. of meat should be introauced and a leF;,al obligation should be placed on all. butchers to Elark visibly the p: ices at vrhicl1 their retail cuts are sold. In contrast to the modern ha~1dling of the slaughter and wholesaling of meat and rae at products in the fMCking plants, 133 methods of cutting lmlves and quarters of carcasses and of retailing meat cuts in the metropolitan and other urban areas are out of line v1ith desirable standards of efficiency in meat retailing. If the administrative efforts now spent on ineffe0tive price controls for meat were directed instead tmvard the il:J.prove- ment of meat retailers' services to their customers, great bene- fits to consumers would result. Competition among retail butchers in terms of quality, service, and free rr ices would protect the consumer better than the system of fixed prices. In order to make the proposed syster!l effective, the prices actually charged must be visible to the public from outside the stores. Poultry and Eggs 9. The slaughter of Doultry in the sections of markets accessible to the customers or in stores should be forbidden, and only the sale of plucked and eviscerated noul try shoula be allowed. The slaughter, pluckinf, and evisceration of poultry for irillltediate sale at retail, should be confined to a room separate from the retailing area. Adequate refrigerator space should be required for all poultry retailers. If the poultry producer is to obtain adequBte payr1ent in relation to the quality of his proauct and is to earn a larger share of the consuner 1 s peso, he nust be induced to pluck and eviscerate his proauct and hil~.self deliver it as dressed poultry to the market. 134  10. The marketing of eggs should be organized according to accepted 1:.odern standards. The grading and storage of eggs under refrigeration are indispensable to the supply of eggs of good quality throughout the year. The establishment of an appropriate grading system will help to avoid waste and will provide an incentive for the most efficient production and marketing. The expansion of cold storage and the improvement in fan'~ to-market transport and handling will make it possible to pre- serve the quality of these products, i:.;prove their sanitation, and realize the profits offered by incentive payments for quality. :: 7 ilk, Butter, and Cheese Facilities for adequate cooling on the dairy farm and transportation from the farm to the pasteurization ana bottling plants must be made available if the dairy industry is to suqply milk of high quality and avoid excessive waste. 11. CCJNAPhOLL should operate milk-tank trucks and railroad-truck milk conto.iners on an ex~Jerirn.ental basis, in combination with collecting and cooling sta- tions in distant •Jarts of the J·jontevideo milk shed; on the basis of infornation thereby obtained COl'TAP"H.OIE should determine the most strategic points for locat- ing a system of collecting-coo.linv stations and p-et them built. An experi·1ent of this kind will indicate whether the poor quality of i.ailk is caused largely by shortcomings in the treatment 135 of milk before shipring or by shortcomings in present E1ethods of transportation, particularly in the suzr..rr1er. It will also provide the basic technical data for reorganizing the collection and shipment of milk. The transportation of milk in cans carried on open trucks in hot weather, as now practised, is partly responsible for the poor quality. This can be largely overcome by establishing collectine- and cooling stations at strategic points in the producing area where the milk is cooled before it is loaded into tanl:-truck and railroad-truck con- tainers for shipment by truck or rail to the point of consurap- tion. TI'hen CONAPROLE has deternined the required nuJr1ber of stations and the strategic points for their location no tiue should be lost in getting· the1.~ built and into operation. 12. The F!' esent system of pavii1g the fluid-milk price for a certain quota and a much lower price for all rr.ilk in excess of the quota should be replaced by a pricing svstem based on milk r~radin~· according to lacto- bacteria count and fat test determined at collecting or receiving stations. The fact that fal." more milk is produced than can be sold as fluid milk offers an excellent opportunity for improving the quality of fluid milk by paying staggered prices for quality grades and excluc..ing from fluid use all milk below a mininum quality. .i"'>. pricing system based on lacto-bacteria count and fat content should provide farmers with the incentive to pro- duce milk of higher quality. 136  ]3. In order gradually to improve the handling of milk during and after milking, dairy farns should be inspected and classified according to their sanitary practices, and a differential should be established in prices paid for Illlk based on this classification. Dai~ farms should be classified on the basis of unannounced quarterly inspections and a rigid scoring system should be adopted which would take into account the equipment used and the sanitary practices empluyed. Farms should be grouped into three classes. I!ilk from farms in the interr11edia te class should be paid for at the basic quality-grade price. ]Jiilk from farms in the first class should have a prenium of perhaps one centesimo per liter~ while for milk fror11 farms in the third class an equal a;::1ount per liter should be .deducted from the basic price. The use of such price incentives should accelerate the process of improve- ment. 14. .Pasteurization of fluid milk should be required and enforced in all urban cornimnities. The right to pasteurize 1:d.lk should be granted under license to any applicant who meets the requirements for equipment and processing. ?asteurization should be made compulsory in all urban com- munities. It can be perfonned by any dairy plant equipped with a pasteurizer and it is easily controlled by checking the temperature diagrams and by bacteriological tests of sample.s. 137 An important consideration is to establish the confidence of consun.ers in the hygienic necessity of .r..asteurization. 15. All butter and cheese r;1aking plants which sell their products should be subject to inspection for sanitation, and the inspectors should be empowered to enfo roe minimum requirements. .A system of quality- control stamps for individual units of cheese should be introduced sin1ultaneously. Minin~um standards of sanitation should be established for all butter and cheese making plants producing products for sale in both the domestic and foreign market. A rigid inspection system should be set up to enforce these standards. There also should be introduced at the same time a system of quality con- trolled stamps to indicate the quality and grade of specific units of the products to be sold. 16. Action should be taken to implement the recomraenda- tion afthe Jol1nston report on the collection, processing, and distribution of milk in the Montevideo milk shed, anrl comparable facilities should be developed for the other ma~or cities of Uruguay. The I\:ission endorses without qualification the recOlm::iendations made by James P. Jolmston, President of Iairy Sealed Incorporated, in his report on CONA,tJl:tOlli dated July 1, 1950. His estimates of lower costs obtainable through better factory organization and transport appear sound. The Nission lays particular stress on 138 the ciesirability of providing in current cost accounting for adequate amortization and depreciation of facto~r installations to maintain them pern~nently in good condition. Operation of the dairy plants for the fluid milk supply of L.ontevideo without adequate provision for depreciation leads to their ci.et€rioration and obsolescence, with the result that the plants must be rebuilt. Such a policy violates the principles of good management. Eilk supplies to cities other than 1\Iontevideo appear to be relatively disorganized, and steps should be taken as soon as possible to extend the benefits of properly-handled rrdlk to the people of such areas. Note: ~lith the permission of tr. Johnston, a sumrnar-J of his recomr.:enaations is attached to this Report as Note G. 139  PAH.T III THE ORGANIZATION OF RESEAH.CH AND TECHNICAL SEJ.VICES Adjustments within the private agricultural econo~ of the nature and magnitude of those outlined in the preceding chapters can be achieved within a reasonable period of time only i f the farmers of Uruguay receive the same aid from their Government in research, education, regulation and other special se~r.ices as is available to their competitors in other countries. The importance of government assistance in this field cannot be over-emphasized. The full exploitation of the agricultural potential will not be attained unless teclmical know'ledge and skills in all fields related to agrietllture are developed. The Mission attempts in this Bart to describe the nature of changes in public service L~stitutions under the auspices of the Ministr.y of Agriculture which are believed necessar,r to assure the services essential to the successful execution of the production and marketing program. The suggested adjustment program is not presented in detail but rather as an outline of an effective organization. 140  CHAPTER I THE INTEGRPTI0N OF RESEARCH, SDUC.~TION AND TECHNIC.AL SERVICES 1. The Mission recommends that a National Advisor.y Council on Agricultural Research and Education should be established to bring about the closest possible coordination of research, education and technical services. Uruguay, like most countries in these years of rapid techni- cal advance, has a pressing need for thoroughly educated and trained personnel in all fields of research, teaching, advisor,y services, agricultural industries, and governmental and other administrative services. Huch of the research and experimental ~Tork in agriculture and all of the agricultural advisory and regulatory services Nill be carried out by Government agencies. It is essential, therefore, that there should be· a close liaison between the University, Which is responsible for the training of all technical personnel, and the Government, which is responsible for the development and administration of policies which require the services of well-trained specialists for their implementation. The farming community, which is the instrument through which technical developments are actually implemented on a national scale, should be kept in close contact with the formulation and application of national programs of research and education. Accordingly, this Council should include the Ninister of Agriculture, the Minister of Education, the Directors of the l41 Research Organization, the Regulatory and Inspection Service, and the educational advisory service (proposed below), a representative of the University administration, and at least five or six competent representatives of the ranch and farm community. The Council should select its own chairman. ~2  CHAPT:J.R II T:Hb ORGAlTIZATION OF RLSEARCH 1. A ITational 3.esearch Organizatior: should be est<---.olished under a permanent Director "~.-Jho should control all the research activities of the i-:inistry of .~griculture. The many references throughout this 1.. eport to the need for a greater amount of precise information in almost every phase of agricultural production indicate clearly that it is essential to integrate all rese~rch activities ':ithin one or- ganization. A Hide range of research activities is involved. These require efficient direction, planning, and coordination if their results are to be of maximum value. In viev1 of the shortage of trained personnel, the selection of the problems to be dealt uith at any one time and the general direction of research has to be effectively handled at the top level of the research organization. The Eission believes that these functions can be fulfilled adequately only by the creation of the special post of Director of Research and the appointment of an experienced and competent Director. This officer must be a research uorker himself, familiar uith research adminis- tration, ancl must have a thorough knouledge of agriculture. He must be given responsibility for the research program in all its phases and have the full support of his I:J:inistry. Agricultural research must be continuous, and to a ver; large degree • long rant:;e in its outlook, and therefore req_uires 143 continuity of leadership. The Mission is of the opinion that it uoulcl. be a serious mistake to make any appointment on a short term basis, or ,,.,ithout e. full alJ~;reci.s.tion of the high calibre of leadership required. 2. ~esearch centers or facilities should be established for the study of nroblems relatinr to economics, soils, crops, engineerinp:, horticulture, forestry, animal hus- bandry, range develo~Jment, and dairy production, in ac1di tion to the existing facilities of the 3iological Institute and :Cstanzuela. Some of the activities to be undertaken by these research stations should oe centralized in one major center, and it is highly clesirable that all sections should uork closely \"Ii th each other and under the constant supervision of the Director. Some problems must of necessity be handled in specific soil, plant, and animal regions; thus some measure of decentralization is also necessary. Attention is directed to the following major needs in the specific fields of uork listed in this recorrJnendation, (a) Agricultural ~conomics An Agricultural Economics Section should eventually cover all of the major aspects of the field -- farm management, marketing, prices, income, consumption, and credit. Attention should center initially upon the economic aspects of land use and the production problems of both large and small ranch and 144 farm operatol~s. ?articular attention should be given to 1·1ays of reducing costs and of increasing returns through the adoption of improved organization and better operating practices, e.ncl to some of the more urgent mar!\:eting problems. This section should also develop an agricultural statistics service \·Thich l:Tould provide the inform?. tion on past trends and current developments necessary for analysis, planning and action in all branches of agricultural policy, research, and operation. The }Jresent Statistical Section in the I.Iinistry of .1gri- culture, Hhen transferred to the control of the Research Director, could be the nucleus of this .i~gricul tural Economic Section, but it should be divorced from its present dependence on the police for the collection of data ['.nd should be providecl 1vith its oun field staff. (b) Soils A Soil Survey, Eanagement and Conservation Section is necessary. This should be responsible for the national soil survey and for research in all ~hases of soil fertility, manage- ment and conservation. Since a soil survey is basic to other phases of the total research I>rogram and to a proper understanding ancl cl.evelopment of the resom.. ces of the country, classification ancl ma~nJing of the soils should be initiated immedic.tely. The first stelJ should be the com1Jletion of a reconnaissance survey of the ·vhole of Uruguay VTithin the next five years. This General survey should provide basic information for the ~lanning of land use, 145 colonization, erosion control, and the organization of more effective research and educational procrams. It should be follo'\'Ted by <letailed surveys, prefel...ably first in those areas "rhere specific land reclamation, irrigation, colonization, and erosion control projects are to be undertaken. (See liote E, The lTeed of a Soil Survey Program, page 217.) Research in the field of soil management and conservation should concentrate first on determining the need for fertilizers and lime on various soils for various crops. Other important problems in need of attention include the determination of the best cropping systems and soil management practices for the control of erosion, the conservation of vTater, and the improvement of soil tilth and productivity. Suitable land at the several field stations and experinental farms should be made available for such studies. The Section mu.st be provicled uith a<lequate laboratory facilities, including the soil test inc l~'-boratory referred to in ?art I, Chapter V of this report. The headquarters of the Section should be located uith the Director of Research, along \·rith the other central research units. (c) Crops Research uork in the production and breeding of forage crops requires considerable extension under a Plant an~ Phytopathology Section. !luch greater attention should be given 146 to the testing of forage-crop varieties and to their improvement thcough careful breeding, particularly in respect of resistance to disease and insect pests. Because work on the suitability of species l~s been linited primarily to small scale plots, the effect of animals, management practices, climate, and soil, has not been measurable. These studies must be extended to cover large-scale field tests of varieties and strains, so that the usefulness of different varieties and strains to crop and pasture improvement can be established and their ade~ta­ tion to different regions of soil and climate determined. lvork on grain crops shoulcl lay ~)articular stress on the development and testinG of strains of hybrid corn and on cul- tural practices aimed E.t i~n~roving yields. Testing of im1)roved varieties and strains from different countries should be carried out over e. t·ride range of conditions. The station at Estanzuela should be the nucleus of this Section and could provide its main experimental area. (d) .Agricultural Engineering An . .1.gricul tural Engineering Section should cover all lJhases of farm mechanization. Problems needing early study include agricultural l'Jractices in the J?roduction of fielcl and forage crops; harvesting, processing, preserving, and storing of grains and fodders; farm t1ater SUlJ:)lies; anc1 the suitability of modern farm machinery to local conditions. As a Section of the headquarters unit of the Director, only a small staff s~ould be required for the early development 147 of this field. Full advantage should be taken of the facilities \'lhich may be provided by cooperating farmers, as ~:rell as facilities available at research stations. (e) Horticulture A Horticultural 2esearch Section should be developed. The important share already contributed by vegetables, fruits, and grapes to the national income in proportion to the energies and investment so fQr expended suggest that early and substan- tial benefits 1!Tould follou organized. I'esearch into problems of vegetable, fruit, and ~rape culture. ~dequate and suitable land for the lJUrl)OSe '.!ill have to be ,rovided. This rntly neces- sitate a separate research stc::.tion, but the :iorticultural 3.esearch Section should be located uith the other e.xperimental groups if possible. (f) Forestry A relatively small ?orest~t Research Section is required to fill the many gaps in local lmouledge of forest lJrocl.uction, management, and use. Special attention must be given to the propagation anc1 culture of trees from the vie11rgoint of their suitability to different zones a.nd different uses. .1.s ui th horticulture, this Section may require a seyaLate field station, but it should be established in conjunction ':Ti th other groups if possible. It must be yointed out that con- siderable use could 1)e made of tl1e man~r large and small forests of lJriv,;.te m·mers. 148  (g) Animal Husbandry Continuing researcl1 must be llnL~_ertaken in an Animal Hus- bandrY Section if stockmen are to be kept UlJ-to-c'la.te on modern li,restocl: ~')ractices. The improvement in the use of rangeland by cattle and shee~ on the one hand, and improvement of the dairy industry on the other, present se1:>arate ::problems uhich require separate organization of research~ Breeding, feeding and manc.gement l)ractices need the atten- tion of such a Section. In many cases, the general problems involved can be considered \·.rithout any special reference to l)articular regions. For eY~mple, there is need for an aninal geneticist 1 fully trained in moc~ern anine,l improvement tech- niques, Vlho can investigr:te, evaluate, and guide the animal breeclin€; methocls of the 1:!hole country. All basic studies of this type coulcl \Jell be located ct the existing Biological Institute, the fm1ctions of uhich should be enlarged and the staff strengthened to embrace animal llus- b~ndry research, in adcli tion to the e::isting interests in c1iagnosis ancl. :?atholot:;y. (h) Rangeland ~·Jevel o~omen t Most of the land in Uruguay falls into the c2.terory of rangeland employed for livestock ~)reduction, and much of it is in need of im~rovemen t. High lJri ori ty shoulcl_ therefore be given to the establishment of a Rangeland Develo·nment ::tesearch Section to handle the special ~roblems involved in the full exploitation of these areas. ·,.-orlt is required on all phases 149 of range livestock nanagement, including range reseeding, grazing methods, the conservation of fodder, animal nutrition, sheep and cattle breeding, ueed and brush control, erosion control and needs for fertilizer. It uill be necessary to locate this 't·Tork in a j_'el~resentative area. Accordingly a ne\'l and separate research stHtion for rangeland development should be established. (i) Dairy Production The ~1ission has dra't·Tn attention to the great lJOssibilities that exist for increased efficiency in dair,ying. A Dai~r Re- search Section is therefore of hich priority. This Section should embrace not only studies of milk lJrocl.uction, but also of milk lJrocess ing e.nd manufactUJ.'"'e• ..~deque.te land, laboratory 1 and processing fc.cili ties are essential. ~-::n.ile these coulc1 be estaolished as a se:pare.te Dai1~ ~esearch Station if necessary, it is desirable that the Section shoulcl 't·:ork alongside other a"q_Jerimental grou~1s. 1. Consideration should. 1)e $;iven to iJlacing as man.y of the research sections as !JOssible in one location in direct -osrsonal contact vith the :Uirector of ?..esearch. Better cooperation and gre~ter integration of all research is likely to be Pchieved if most research uork is centerecl at one location. The :~ission believes that there is no organiza- tional difficulty in re::.ching this objective in respect to the Aericultural ~conomics, Soils ancl :::::ngineering l.esearch Sections. Still greater centralization ~.Iould occur if the Horticultural, lSO Dairy ancl_ ~orestry 3.esearch Sections, uith their facilities in land ancl laboratories, could be locatec1 in close pro::imity to the expancted 3iological Institute. This 1Joulc1_ then leave only ~stanzuela and the RanGe Development Station as major units located avay from headq_uarters. Such an arrangement shoulcl be much less costly as uell as more e£fective than the development of completely separated units. 4. Research pror;rams :shoulcl ·oe developed only ui thin the limits of available com;1etent ·oersonnel. The success of research progre.ms in any field delJends primarily upon the availability of trained and highly competent personnel rather than upon organization or physical plant facilities. No research should be initiated unless a competent st.'.ff, pD.rticularly the section leader, is secured first. Because of initial shortages of trainecl ~Jersonnel, the i:inistry may find it necessary to recruit staff f::·om abroad in order to avoid delay in :_Jrocrams. It must be )rep£vreo. to offer salaries com- mensurate trith the sl:ill and tro..ining re0~uired. 5. Pilot farms for research and demonstration and ex- ·oerimental test plots should be vridely used. Pilot farms for rasearch and demonstration should ~lay an imiJOrtant role in the research lJrogram. Such farms should be under the sUlJervision of the Director of national :rtesearch. 151 They should test the economic feasibility of ne\·J practices ~der actual operating conditions of range, farm, orchard or vineyard, thereb~r serving as local demonstration units as vrell as test w.1its. Experirnental test plots should also be employed on all major types of soil and in all major cli~tic zones to obtain supplementary data on many problems, particularly those of soil management. 6. The Directol'" of ::::esearch should invite re-;)resentative farm operators to act in an advisory capacity. The i~ission believes that reseLrch vrill be ineffective in many instances unless ~reducers have confidence in the research organization. :i·~uch can be achieved to secure the necessc:try cooperation, interest, and confidence of farmers by establishing small cornmi ttees of carefu.lly selected 1)roducers \vho vrill act in an advisory capacity. Such col!lr.'littees can contribute to research by bringing to the research uorker a better ap~Jreciation of the major problems met with in practice and providing information as to the practicability of the solutions proposed. They can ~Jlay an equally valuable role in taking the results of research back to the farm. 152  CH.t\.PI'ER III THE NATIONAL AGJ.ICULTU~lA.L ADVISORY SEilVICE 1. The present agronomic service of the £jinist:ry of Agriculture should be reorganized and responsi- bility for all advisory services placed in a National Agricultttral Adviso~J Service under a permanent Director in the /,'iinist~J of Agriculture. A National Agricultural Advisory service should be respon- sible for all educational phases of rural development including agriculture, horticulture, animal husbandr,y, soil conservation, forestry, marketing of agricultural products, home economics, and programs for rural youth. An educational program for rural development must take into account not only the improvements to be made in individual farm enterprises such as increased crop yields, greater annual beef production, or i"11provements in the yield or quality of milk, but also the desirable combi- nation of crops, woodlands and livestock which will yield the greatest net income to the farmer and best meet the needs of the nation as a whole. The Se1~ice should be given responsibility for d~velop­ ing and administering the soil conservation and erosion control program, since this work is largely educational in nature. Technical specialists should be assigned to this 153 problem, and special local Jdvisors should be employed in the areas of greatest need. Efficient operation of the farm is largely dependent rrpon a \'Tell-operated home tJhere am~)le provision is made for the health and uelfare of all members of the household ancl any auxiliary \Jorkers. A rural home and training program that \Jill ap,eal to rural youth is an important factor in encouraging the most intelli~ent and capable young people to remain in agriculture and forestry and contribute to its economic cLe- velopment. 2. Staff members engaged in advisory Fork shoulcl be relieved of all res;)onsibilitv for the regulatory or administrative uork of the Einistr;y. Regulatory and administr2tive duti~s include inspsctions of nursery stock ancl forest clesign, gathering of o.gricul tural statistics, investigation of dispossessed tenants, certification of farmers for Gasoline tax exemption, and many other similar activities. Aclvisory work is depenclent upon voluntary co01)eration and not upon coercion. It is essential that the peO})le uho are to benefit from this service should have complete confidence that their adviser is concerned only 1:-ri th their l·relfare anc1 is not actinc as a policeman for the government. It is also evident that administrative or regulato17 functions might occupy the major attention of staff officers to the detriment of the advisory program. 154  The shortaGe of ac1.equ.a tely trained veterinary personnel may preclude the possibility of maintaining separate regulato~J and advisory staffs 2.t this time. Until adcli tional personnel can be trained, it is suggested that gove1~ent veterinarians concentrate their efforts on regulation and control but co- operate closely t·ji th general advisory officers in relet ted educational activities. In a lilte manner. forestry officers in the Regulatory and Insliection Service should ·uork closely ~ith advisory officers on educational phases of their program. 3~~ A staff should be established under the Director of the national . .1-cricultural .r~dvisory Service to administer the nroeram as a uhole ancl to coordinate its -oro?ram uith those of related organizations and agencies. It is essential that in addition to the staff engaged in carryinG aut advisory activities, a small suDervisory staff should be established to be responsible for the development of the advisory program throughout the country. A number of technical specialists should be included, to be in constant touch ui th research and e:i:perimental Hork, carry the results of research to the field staff, assist the field staff in the solution of farm c.~ncl home yl'"Oblems, and inform research ·vTorkers of fielcl :9roblems requiring additional research or experimenta- tion. Specialists should_ carry out their demonstration tvorl~ uith and through the local advisory officer~, thus strengthening the local program and promoting local recognition of the ser- vices available from the advisory officers. 155  It is also essential that an efficient information and editorial section be established v1ithin the national ~l.Cl.visory Service. Functions of this service shoulcl. include the ~)relJara­ tion of pol;ularly ·uritten informc.tion circulars for c1istribution through the field offices; the liiriting n.nd distribution of ne·HslJaper articles on up-to-date farming lJractices; the clevelop- ment of educational radio programs; and the training of field vrorkers and specialists in ne\'rs vlri ting, raclio presentation, and the ~reparation and use of visual aids. 4. The existing advisory field service should be re- _Qrganized. The e::isting local offices of the Einistry of Agriculture should be e:~aminec1 1Ji th a vieu to im·orovil'!,g their location and. staffs, anCl. to ·o1,ovicl.ing more adequate facilities. The ratio bet\"Ieen the number of advisors and the number of farmers to be served must be carefully adjusted to all conditions so as to result in the most effective 1.rork. In arriving at the proper adjustment, consideration must be given particularly to commw1ication facilities, density of rural population and intellectual development of the people served. As the scope of the loc2.l advisory program develops and the demand for services increases, additional staff members can be assigned to uork under the direction of the g~neral advisor on such phases as :·outh uork, home economics and highly specialized phases of agriculture. 156  ·The =}resent sy9 tem of housing all officic:.ls of the i ;inistry of .d.gricul ture in the same building is a convenience 1.-1hich encourages efficiency in the use of equipment and in the coordina- tion of administrative, regulatory, and educational services. It may be necessary, holTever, to establish some additional .::.3.visory service offices in order to carry on an adeg_uate }.Jro- gram for all areas. The ~ational Adviso~r Council on Agricultural Research and 3ducation should give early attention to the establishment of a personnel training program as one of the first steps necessary in developing an effective advisory service. Adviso~J uorkers uill be most effective if provi0.ed lli th adequate facil- ities and equipment for an educational program, including demonstration equipment and visual aids, transportation, modern office equipment, and efficient clerical and secretarial assistance. The effectiveness of trained '·Jorkers is seriously handicap~ed if any of these are not available. In a country as advanced ac Uruguay, the advisory office should be as ,,;ell equipped as comparable business or professional offices, and convenient and speedy transportation must be available if an efficient advisory service is to be established. Like the agricultural research activities, the advisory service can profit from the aid of local advisory committees representing regional and specialized interests uhich c~n hell) to put ne\·1 develo:pment s and improvements in agriculture, forestry, and rural living into practice. 1.57  5. Em·,)hasis sho.!!!§. be pl2£_ed upon c1emonstration methods, the use of visual teaching aids, and the cooperation of rural leaders, orr;anizations, and schools in carr:yine out the uro~ram. Demonstrations should be conducted in most instances on the farm or ranch, using resources and equilJment o·uned b:;r the farmer or available to those exyected to adopt the practices. A successful demonstration un~er conditions common in the com- munity is probably the most convincing and effective method of doing advisory uork. It is im~Jortant in starting ao.visory vrork in a ne\·J area to begin 1.1i th p~,actices that are fairly simple, are sure to succeed, and can oe easily recognized as improving upon the l)ractices they ::.,eplace. As confidence is established more comlJrehensive demonst~ations can be undertaken. The demonstration farm or forest is the most advanced method of demonstration. To be effective a farm must be chosen that is tylJical of the area; plans for its operation shoulcl be 1.:orked out jointly by the opera tor ancl his adviser; only those practices should be em:ployecl uhich he>"ve been proved successful through experimentation at the research institute or nearby test farms, and only tho.t equiJ.Jment and ca~Jital should be used uhich can be afforded by neighboring farmers and is available to them. Such demonstration farms are lJarticularly valuable in shouin;:; the increase in farm income possible through a combination of inrprovecl production practices, and the~r have 158 been found to be ine~)ensive devices for stimulating the adoption of such practices. The use of slides, film strips, motion ~ictures, posters, exhibits, ancl other visual £>.ids greatly increases the effective- ness of advisory \lork. .At present, Uruguayan advisory officers have very little such equipment and depend largely upon in- diviclual advice and a fe1·r lectures as their main advisory methods. An essential ingredient in an improvement }.Jrogram is the local assumption of responsibility for its success. One of the most effective 11ays of c1eveloping such local responsibility is to enlist the cooperation of local individuals in some ~base of the program. l!ith the addition of brief training in sub- ject matter and methods, local volunteer leaders are a major resource of the advisory service. Farm organizations, groups for the improvement of live- stock and breeds, organizations of seed producers, dairy associations, forestry and uoodvrorking groups, agricultural, elementary, and secondary schools ancl many other groups are interested in rural Helfare. If these groups are brought into the planning of the advisory program at an early stabe, they can frequently be induced to take responsibility for carrying out a large part of it under the technical guidance of the advisory uorker. Such cooperation multiplies the effective- ness of the advisory t.rrorker many times. The 20 or more vocational schools under the University of Labor have facilities for local testing and demonstration 159 'lt.Tork. They also have teachers and supervisors uho can conduct intensive educational uork lJith surrounding farmers if given proper direction and assistance by local advisory officers. 6. The Agricultural Advisory Service should be develo·oed gradually, as trained personnel become available. A complete advisory service cannot be established at once because of the lack of adequately trained personnel. A plan of reorganization should be developed and put into effect over a period of three to five years, thus giving ample oppor- tunity for trainine uo1~kers and testing administrative lJolicy. It is suggested that the first step should be to relj_eve field \·rorkers of the rebulatory and administrative \"Iork of the i-Iinistry. This should be folloued at once by the establish- ment of specialist and supervisory staffs and the inaucuration of a training lJrogram in ac1.visory methods. The original staff of specialists can be quite small, but it should be e:~anded as personnel becomes available and research inform~tion is developed by the research centers. 160  CF..A?TER IV 1. The resuonsibility for regulation and insuection should be centered in a 3.er;ulatory and Insi)ection Service, headed by a permanent Director in the f.Iinistr:y of Agri- culture. The Director of the negJlatory and Inspection Service should be responsible for the control and eradication of disease and pests, the inspection of all plant and animal produce enter- ing internal and foreign commerce, the establishment of grades and standards, the administration of the national forest pro- gram, and in general for the administration £>-nd enforcement of la\IJs for agricultural regulation anc1 control. He should also be responsible for the organization of the official seed service described in Chapter V belo\·T· Control of diseases and pests is highly important to the agricultural l'relfare of the cow1try. The extent of protection is often determined by the extent to t·Thich legal requirements are effectively enforced. The Service should protect the agricultural industry from misuse of pesticides and from losses due to ineffective products. It can also protect both the industry and the public against fraudulent practice, establish minimum standards of sanitation, insure higher quality, cut d0\1n uaste in distribution and utilization, and thereby secure greater returns to the country as a vrhole. 161  The 1:1ork of ret;ulation anc1 ins1}ection is scattered at the present time through a number of government offices and much of the field \·tork is hanc1led by £>.gricul tural agents ancl local veterinarians. It is proposed thD.t the locust control viork (Oficina :Tacional del Servicio ~e Lucha Contra la Lancosta), the regulatory and_ inspection \'lark in livestock ( Insnecciones ReP-:ionales), and any similar activities in othe1~ sections of the I-Iinistry should be :L~eorganized in line \·Tith subsequent recommendations. Centralizing the administration of such regulat017 and ins1Jection services should. -oring about more effective aclminis- tration anci_ control. Since much of the field uork of this organization uill be seasonal in nattu·e, inspecto1·s should be trained and assigned to handle several products or activities. IJ:he arrangement ·vrill lJermit the full employment of the better qualified J?ersons, reduce costs, eliminate du::9lica tions, and irrrorove the thol~oughness of the uork. 2. The Regulatory and Ins"Dection Service shouJ.d contain t1:1o main sections, one cleo..ling: \·Ji th animal problems, the other uith -olant nroblems. The ....-l.nimal and .\.nimal ?roducts Section should be respon- sible for controlling diseases and yreventing their introduc- tion from foreign sources. S:}ecific duties uoulc1 be to plan an~ develop quarantine measures and other control programs for eradicating destructive diseases noH prevalent ancl for 162 preventing neu outbreaks. Laborc:ttory and field services should be further developed for the ~rograms of regulation, control, and eradication, involving the testing of serums and vaccines, and other control methods. Nuch can be accoml1lished in the control and eradication of disease through the develop- ment of close Harking relations ancl mutual control programs Hith officic.ls of adjacent countries. Other duties 'lrrould include the development of policies and the establishment of procedures for supervising and con- I trolling public stoclcyards ancl frigerificos. This uouJ..cl entail inspection and certification of the que.lity of 1')roclucts and the sanitary concli tions under uhich they are ~')rocessed, as 1.rell as req_uirinc; the labeling of these :proclucts. This section uould also inspect products in lJUblic s.nc1 :9rivate warehouses anC:. supervise the opere,tion of such establishments. The ?lant, ?lant Products and Fertilizers Section should be responsible fo~ yrotecting agriculture from injurious pests and plant diseases and for quality control of pesticides and fertilizers. This vroUlcl include controlling the iml)ortation of ple.nt materials in cooperation vrith poste.l and customs officials, using extermination treatment if necessary to prevent the introduction of ::_Jlant diseases or pests. .i~nother imlJortant function of this ~ection uould be to protect crops from destruction by locusts, grasshoppers, mi6Tatory i)irds, and other pests. 163  Cooperative contacts and surveys \·rith similar agencies in adjacent countries uoulcl materially assist in the control program. A national Forestry Service should be established as ~ part of this Section, to administer the Forestry program described in ?art I, Chapter XIII of this Report)) In addition to the administrative ·uork involved, the Forestry Service should uork closely 'li!i th the .:1€;l.. icul tural .Advisory Service in carrying out a·program of education in forestry uith farmers, ranchers, and other yrivate lando\·Tners. A central laboratory shoulcl be estaclished for the i<ienti- fication of plants ancl insects ancl. for anc:.lyses of chemicEtls ano. other m£.terials solf;_ for the control of disease ancJ. J.Jests or for fertilizer. Other duties uoulc1 include surveys of the occurrence, distribution, and severity of plant Qiseases and the ~Jrovision of iniormation ancl the issuance of 'arninGs l .. regarding disease. These sw:·veys \roulc1. serve as a basis for issuing foreco.sts on l:Jotentinl epic1enics of disease or insects. 3. Close 'l.ro:"'king relations shoulc1 be maintained betueen the Re,.:;ulatory c;.ncl Ins]Jection Service, the lTational Research Organization, and the national Agricultural Advisory Service. The Regulatory and InslJection Service shoulll keep in close touch ui th the 1~ational H.eseal"'Ch Orge.nization in order to keep abreast of nei..r <ievelopments cl~irectly relatint; to its major fields of res~Jonsibili ty. Close \·rorking relations should 164 like,·rise be maintained \·ri th the :National Agricultural Advisory Service. It is believed that the veterinarians should confine their activities mainly to the im:oortant problems of disease control, biving such aid as they can to the c?.dvisory uorkers in educational matters relating to animal diseases. Such a division of responsibility uoulcl not !_)reclude the close co- operation of advisory officers Hith the locc:..l veterinarians in campaigns for disease control and eradication. The educational aspects of such campaigns should be, in fact, the primary res!)onsi bili ty of the Advisory Service and shoulct be sponsored jointly. 165  CHAPT:ER V THE OFFICIAL SEED SERVICE The existing official Seed Service, lJhich should be made a 1)art of the Regulatory and Inspection Service, has an es- pecially int_9ortant responsibility to fulfil in viev1 of the outstanding importance to Uruguay of a larger sU??lY and variety of improved legume, grass and other seeds. Accordingly, its functions have been considered in greater detail than any other section of the Service. 1. The iMoortation, nroduction, urocessing, and distribu- tion of seed and nursery stock should be greatly expanded by the official Seed Service. The ·orimary purpose of this organization should oe to maintain stocks and encourage the ·,Jrocluction and. use of Government-certified seed. In order to carry out the major recommendations of this report for the improvement of yasture and arable land, ade~uate seed supplies for initial tests and subse~uent large-scale use must be made readily available to all farmers and stockmen, through government assistance in procurement if necessary. Seed stocks of ~roven strains should be produced locally, i f possible; othervrise, they must be im-ported. In the latter case, seed importation should become an established part of the country's agricultural budget on a continuing basis. 166  There are no factors over 'l:Thich the grouer has more control and \'lhich are more im::_Jortant to economical, efficient produc- tion, than the choice and preparation of seed and nurser.y stoCk. Some progress has been made in the use of improved varieties in Uruguay, but much remains to be done. The introduction, propagation and distribution of seed for improved varieties of small grains and potatoes have received considerable attention from the official Seed Service and the Institute at Estanzuela. Limited quantities of hybrid corn have been imported and distributed by AlJCAP. The volume of seed of improved varieties of grasses and le&umes has been, hot"lever, very meagero The failure to make more intensive use of inproved vGrieties, especially of grasses and legumes, h~s not been due entirely to a limited sul~Jly of improved seens, but also to a lack of a:P2_Jrecie.tion of their value. The ac- tivities of the Agricultural ~~dvisory Service should stimulate the demand for seeds of improved varieties of grasses, legumes, hybrid corn, sorghums, and other crops. Improved varieties l>rill be a means by uhich the improved cultural and. management practices can be made effective in increasing the production of crops, rotational pastures, forage, and forests. Valuable assistf'.nce to farmers can be provided by con- tinuing and improving the ~resent seed testing service. To this should be added an improved cleaning and processing service, both in stationary plants and 1.·1ith lJortable equipment. 167 Host of the present equipment at :Estanzuela is tuenty-five or more years old unCI. \·Jill be entirely inadequate for the re- quirements of the new progr~~. Seeds of some crops are not readily produced under the conditions of soil: and climate found in Uruguay. T\-.ro e:mmples are alfalfa seed and potato tubers. In the case of alfalfa 1 the limitinG factor in seed formation is primarily climatic - humidity and temperature. These factors do not limit forage production, hoNever, uhen seed. of adapted varieties is used. If ne\'J varieties are developed that are es1:>ecially suited to Uruguayan conditions, arrangements should be made for ir~)orting the seed. The ,rimary limiting factors in potato production in practically all temperate climates are virus diseases and insects. Since Uruguay is no e::ception, lJrovision uill have to be made for importing, from countries vrith cool climates, seed tubers producing disease-free varieties adapted to Uruguay. The techniques for :producinr;, harvesting anct processing some crop seeds such as Trifolium subterraneum have not yet been developed sufficiently to make. seecl production economically feasible in Uruguay. In such cases, importation can be a temporal~ solution. In general, yrovision should be made for the easy entrance of plant materials for research and experi- mentation, especially from countries uith similar conc1itions of soil and climate. The increase and maintenance of fotu1da- tion seed stocks has been one of the most critical stages in 168 developing seed su::>l')lies of ne"r varieties large enough to meet a country t s needs. \ii thout these stocks it is impossible to keep a continued flow of the seed of valuable improved varieties. The cost of production of seed is hibh in the early generations because of the need to safe~Iard the stock against contamina- tion~ High l1rices lvill prevent the free use of foundation seed and \'rill deter tlle J_JrocLuction of comcercial seed. Govern- ment provision of the basic seed stocks of improved varieties is a relatively simple and inexpensive measure for encouraging the production of varieties in short supply. Certifiecl seed should be gl~o,.,n on Gove1.. nment seed farms, or by re:putable and experienced seed grouers. ?revision should be made for inspection both in the field and in the sack to insure purity ancl quality. Ret:.,ulations shoulc1 be es- tablished for the certification of seed uith res:pect to varietal purity, quality, and freedom from seed-borne diseases~ Certified seed should be sealed in the sack. The purpose of a crop improvement program is to develop better-adapted and hiehel~yielding varietiesi but the valuable results of research in l)lant breeding \Jill be lost unless the seed of improved varieties is e::tensively used. S:pecial measures vrhich should be taken to encourage farmers to use im:!?roved certified seed include demonstration tests, the ready availability of supplies at fair prices, comnercial gradine; systems that l"Till give recognition to superior products, and public recognition of achievements in the field.  P.c.. HT IV ECONOHIC COFSIDERATIOIJS The recommendations of the preceding ch&pters cm:stitute a cohere:1.t agricul turo.l pro;~ram wh:tch the ...·,ission believes TJj_ll be rnost beneficial to the development of the Uruguayan econony. The l-:ission is confident tho.t the proposed lileasures are technic ally sound. These measures have been proved by practicc:.l application under vary:tng econoFd.c conditions in other countries. lany of them are new to Uruguay, hmvever, and their economic feasibility must be established under Uruguayan conditions. The various recornnendations are largely interdependent. The l.~ission is strongly of the opinion thd.t their partial adoption v;ould result in benefit much less than wot~ld be derived from their ac1 option as a vrhole. The purr.ose of this pc.J.rt o£' the Report is to exarine some of the econon'.ic implications of the recom:~1endations. It is not possible to exar:~ine all the econor;:ic implications, or, indeed, to examine any limited range 1.ri th great intensity. 11. fe·;; sa2.ient matters hc..ve therefore been selected. It is ho}Jed that the e:;:a::r.ination rn.s.y be of sm~:e assist2.nce to the Uruguayan Government in the appraisal of agricultural pcl~.cies of vrbich r~ention is made in the ·ission's terns of reference. 170  Prices and Price Policy The proposed program of agricultural develop~1ent Ydll not be fully successful unless the relationships bet-ween the prices paid for the various types of agricultural produce are appropriate. The EY.isting Combination of Subsidies, Fixed Prices and Differential Exchange P~tes The present system of subsidies, fixed prices and differential exchange rates has an effect upon agricultural land use which is far from being wholly beneficial. The subsidization of vrheat v.rhich has aimed at increased domestic production and the subsidization of linseed which has aimed at increased production for export have together steered production in the desired direction but have inadvertently offered an incentive to a form of land use which has tended to deplete soil fertility. ~jJheat and linseed are both heavy consumers of nutrients. The ey~austion of available soil nutrients by such crops can be avoided only by field rotations vrith heavy applications of fertilizer and green ~.anure or 11\1. th legumes and legume-grass mixtures. Higher yields per hectare ~·e also possible only by the use of such practices to replenish the fertility of the soil. The subsidies and the accompanying fixed price relations have put such ernphaEis on the expansion of these two crops that the grower's interest has been diverted from efforts to lmver production costs. Even if this were not the case, the subsidies and fixed price relations of the past have failed to use this public support as an incentive for the adoption of the necessary farm practices. 171  The subsidization of milk production through the supply of concentrated feed at a price far below cost and the subsidization of milk consumption to the extent of the costs of processin~ and distribution by COl'J.APR•)LE has had the effect of increasing milk production at uneconomically high cost. The subsidization of meat prices has reduced the price to the consumer (insofar as evasion does not occur) to a level out of pronortion to the prices of other foods, and therefore has distorted the pattern of consumption. 'l'he subsidization of rice has increased output so that an e:qJort surplus has been created before efficient land use has reduced pro- duction costs to a level vrhich will enable Uruguayan rice to compete successfully in the international market over a period of years. It is recognized that the existing system of subsidies, fixed prices, and differential exchange rates applied to some of the main agricultural commodities has had a number of objectives, some of them of a social nature. But while one of the goals has been that of intensifying the use of arable lands and of increasing the output of grains, oilseeds, and milk, too little consideration has been given to the prinary necessity of lm"lering the cost of production along V'.ri th the expansion of output. This policy has operated to the detriment of the li-..restock econony by vii thdrawing arable land, often the best grazing land, fran fodder production. -Jool production has suffered a relative disadvantage through the operation of the differential exchange rate system, under v:rhich the exchange rate for wool is lower than tbe going international 172 rate. rfuile wool production certainly needs no financial assistance 1 from the Government under present price conditions, the net result of this "taxing" of wool has been to reduce the incentive for reinvesting net profits in the improvenent of the li vestocl~ industry, which may prove a handicap under less favorable eire~ stances. In general, the combination of the present $ystem of fixed prices, subsidies, anc differential exchange rates miss\;;s the opportunity of providing a strong incentive for the development of more efficient land use and tends to make Uruguayan agriculture less diversified than is desirable. The Safeguard of Reduced Costs and Diversified Production The major changes in at;ricultural production and narketing recommended i': this report vvill require a period of between five and fifteen years, or even more, to become fully effective. During so long a period, price relations will change, perhaps widely. It is not possible to forecast Vfhat these changes may be, but it l"ri.ll be a vi tal anc~ continuing task for the Governraent, aericul tural producers, anc lJ.erchants in ~Jruguay to be alert to major changes in the world narket situation anG to weigh carefully the specific ueasures of adjustnent which In&y be necessary. This report ~-s not based on ony speculative forecast of the world !::arket situation, bu.t pursues exclusively the goal of increased efficiency and greater diversification in production. The greatest safeguard against any future adversi t.'.r L1Ust be the attainment of the most efficient use of all existing and potential resources. Any improv.enent in the efficiency of production, 173 processinz, or marketing ~s 2 net gain for the natio~ and must under any conceivable set of circumstances strengthen Uruguay's pos_:tion as an exporting country. The advantages of some increased di versi t:r of production BUst not be overlooked. A greater versatility in the pattern of land use and thereby in the number of conunodi ties ·which may be sold at a profit in external markets creates the possibility of more stable income over a period of years. The system of changes suggested in Part I will lead to some diversification in production in the livestock-raising economy and in farming. The helation of Domestic Prices to Export Prices Uruguayan agriculture has essentially t"t·-.ro nain tasks: to supply the people of Uruguay with food, wool, hic:es, fuel-wood, and timber; and to produce an agricultural e::-1)ort surplus large enough to earn, along vd. th other sources of foreiE;n incor~e, the foreign excl:ange required to satisfy the im-.ort requirements of the country. These tasks are distinct, yet it is i:m··)ossible in an integrated agricultural economy to separate those activities which relate to the domestic market fron those v1hicb relate to the eJ\.-port mari~et. The ·world market, ·with its competition, affects not only the e~portable part of Uruguay's production, but inevitably also the entire agricultural production system. All agricultural land must therefore be cons~dered as coming ·within the orbit of international co::1petition. 11.ny attenpt to establish a price system v.rhich results in production for the donestic market at a hi~:her level of costs than the export D.arket vJill bear must inevitably undermine the strength of Uruguay's 174 position in foreign trade. Conse'-iuently, domestic prices must be geared to export prices. ..-;.ny departure from this basic principle must be nade vrith deliberation and caution c:.ncl vdth a full consciousness of the adverse effect likely to be produced on the efficiency of production and the long-ter/1 welfare of Uruguayan agriculture. In a controlled econonw, just as znuch as in a free one, price relations are the guiding mechanism for producers, traders, and c onsmners. If for reasons of policy some element of price control must be introduced, it is essential that the relationships between the r"~rices of the various co1nr.1odi ties be maintained in a manner consistent r-d. th the adjustments in land use which are desired. The Econorrdc Limitations on Capital Invest~ent Numerous variations are possible in the adjustment of land use, especially in the area devoted to crop cultivation. The Government r:mst nake its a1m choice. That choice will depend in rart on a jucgrnent of technical agricultural possibilities, but in part it may be affected by the amount of capital required in relation to the estimated return in both eross an~~ net inc01ne. The r.agnj_tude of the capital investment required to achieve the developments suggested in the report cannot be esti:1ated by the hJ.ssion. Only the Government can ~:ake such an estir1ate, after a declsion has been rr!ade regarding the extent to vrhich the l·,ission 's recommendatiuns will be accepted and applied. In general, however, if the recommendations are executed with care and 175 persistence, it should be possible to finance the changes either wholly or in very large measure out of Uruguay's current resources. The present tine of high aericultural prosperity is, indeed, a favorable one in vd1ich to undertake important adjustr;Ients. Pro- ducers benefitting from the exceptionally favorable situation in the w-orld Barket should be pers'J.aded to reinvest their net profits in equipment an·::1 practices that will reduce costs and to augment the productive capacity of their a~ricultural enterprises. If advantage can be taken of this period of high agricultural incone for such remodeling and renovation of equipment and practices, vdth a resultant lowering of production costs for l!lajor cormnodities, then a period of lower prices can be faced 'Hith much greater confidence. The Rate of Change The success of the proposed technical changes will depend to a large extent on the rate at which they are introduced and on their adaptation to local conditions. Hev~ practices usually take several years before all the probler1s of innovation have been experienced and overcome. Practices which 1r.r:Lll certainly reduce costs in the long run may tenporarily increase costs. This is particularly true of livestock production in an extensive grazing economy. The maxirJurn. care must be observed, therefore, in the execution of all measures sucgested in this report. The displaceMent of labor by the use of capital equi~~aent may occur at varying speeds and to a varying extent. It is not always desirable to achieve the l'la.ximum mechanization at the earliest 176 possible moment; indeed, this may be a ruinous practice. Each producer must carefully weigh the whole range of consequences of mechanization upon the entire operation of the farm. Margins of Profitability in Relation to Land Use In an evaluation of opportunities for increasing Uruguay's agricultural gross income, it is useful to consider the present structure of gross income as disclosed by the available statistics. A consideration, in the broadest outline, of existing land use discloses 1videly differing margins of profitability per hectare, and therefore gives an indication of the economic limitations on capital investment. Roughly 93 percent of the land in agricultural use is de- voted to the pastoral economy, and produces wool, livestock for · slaughter, and milk. The main export value of Uruguayan agri- culture is also produced from this dominant section of the land, for it is in production from the grasslands that the economy of Uruguay has the greatest comparative advantage in international trade. Only six percent o£ the land is used for cash field crops. In order to produce these crops at reasonable cost, and in order to increase the efficiency of the entire economy, the use of this arable land must be closely related to the use of the grassland. Crop production can be achieved at lmY cost only if the yields per hectare are substantially improved, and if the forage on arable land is converted efficiently into meat, milk, and wool. 177  Less than one percent of the land is used for horticulture, but the money return per hectare is relatively high. This type of activity is highly specialized and requires no coordination with the pastoral economw. With roughly 17 percent of the value of total agricultural production originating on this very small area, the potentialities of further development should receive particular attention. In considering the expansion of agricultural output, it must be recognized that the pastoral economy operates with a very low intensity per hectare. This is indicated by the statis- tics for 191!.9 which shovv an average gross rate of return of 20 pesos per hectare of rangeland and artificial pastures. Against this, cash crop land yielded more than 150 pesos per hectare, and land in orchards, vineyards, and vegetables yielded over 800 pesos per hectare. These figures broadly indicate the relative chances of gain or loss involved in any effort at technical improvement in the several areas. In the large area of grassland, only a limited application of capital per hectare can be contemplated, since the margin of profit per hectare is lmY and the risk of loss is relatively high. Nevertheless, the critical importance of pastoral products to the country's economy requires that the largest total increase in output and the greatest total reduction in costs must be achieved in this area. Despite the limitation on capital investment per hectare, the great extent of the graz- ing lands necessarily involves a large total capital investment. 178  On the arable land which is used for cash crops, the economic margin for improvement is greater, and the security of additional capital investment is relatively good. 1JUI:1erous alternative uses of the arable land area are, of course, possible, and it nust be for the Government and the farming conwunity in their planning to ::nake their ovvn choice. The l ;ission calls attention to two of these which appear to have considerable promise for increasing income and for bringing about increased production on a sustained basis. {See Part I, Chapter IV, also Note D, beloyr.) The first of these assumes that the total area of arable land re~ains sub- stantially unchanged. 1 ~-i thin this area there would be a large increase in the land devoted to artificial pastures and alfalfa and a substantial decrease in the area of wheat and linseed, but the decrease woulc~ be off2et by increased :,rields resulting fro1:1 improved land use. This pattern of use includes essentially the :major recommendations for changes contained in Part I. It provides for the maximum flexibility of choice in the selection of cash and other crops to be grmm, ancl opens the vvay to obtaininG lovrer costs in a wide section of the agricultural economy. Although increased capital and other expenditures would be necessary, particularly for phosphate fertilizers, lime and seed, the increased gross income that would result vrould more than cm:1pensate. This plan asswnes, however, a large increase in the use of fertilizers, particularly a relatively heavy dosage of phosphates. 179  The second alternative has the same general :;attern of use but provides a means of expanding the improved pasture area vdthout requiring the large anounts of phosphate fertilizer recommended in the first alternative. The reduced amount of fertilizer used would be compensated in part, by the larger area of arable land and by the increased amount of sod that would be available for plowing under before seeding the small grain or cultivated crops. Yields.would be somewhat lower than in Altern~tive 1 but they still vvoulcl be substantially higher than are o>:tained under the present pattern of l~d use. The larger area of inproved pasture would permit greatly increased production of livestock a.nd livestock products, thereby permitting larger exports. The net returns to be expected from this pattern oi use should conpare favorably with those obtained from r.l ternati ve 1 since the necessary expenditures for carrying it into effect would be somewhat lov.rer. Thus if phosphate fertilizer, for one reason or another, cannot be applied at the optimum rates suggested in rilternative 1, the second alternative probably would become the best pattern of use for effecting the transi tj_on from the present pattern toward the more desirable and permanent pattern pro.-~osed. The production of fruits, vegetables, and grapes for wine involves only a negligible amount of land, yet it is important as a source of high agricultural incoMe. The application of human skills and a relatively high capital investment per unit of land play a much nore important part here than in any other section of the agricultural economy. It seems, therefore, highly probable 180 that the profitability of this type of production vvill peruit an increase in incone v~th relatively little risk (given & parallel improvement in the organization of marketing) ·without calling for public support except as certain technical services nay be involved. Uneconomic Production Units The beneficial effects froo changes in the techniques of lane use and production can be realized only on farms organized in such a way as to make a full and efficient use of manpower and equipment. l,~any of the farms in Uruguay are so small that it appears extremely cubious whether they can operate vri th real productive efficiency. Available estimates indicate that between five and ten per cent of the total nuMber of all ar~ricultural holdings are betneen one and ten hectares in extent, and that some fifty per cent have only ten to fifty hectares of land. Units as small as these are bound to be inefficient in the utilization of land, labor, and capital. Their costs of production must be relatively high and therefore tre farmers who work them uust suffer a lo,r.r standard of living. In some cases it is possible, of course, that highly intensive forms of agriculture may yield adequate net returns even in the small units. There can ~e no doubt, hmvever, that the existence of so many small farns is in general a lir•ti tation on the achievement of maximum nation&l output. It is outside the terms of reference of the lJJi.ssion to attempt to deal -vvi th the complex problems, both economic and social, which are involved in this situation. The contribution made to total agricultural output by these small holdings is not 181 of great importance. Facts about the actual organization and performance of the undersized and uneconomic farm units should be collected and analyzed. The problem of what constitutes the economic unit capable of efficient operation and the question of whether small farms ~U.ght nove toward greater efficiency in supplying the needs of the donestic and export markets should be the subject of continued discussion within the Government, among farmers, and among the general public. The studies of the Institute of Colonization should be made widely known. Only when accurate Y~mfledge has been obtained and general agreement reached as to the nature of the problem and its possible solution can any really effective action be undertaken. The Nature of Capital Requirements Long-term investment capital is required for per!·1anent improve- mer:.t such as ponds, wells, pumps, fences, trees, trench silos, irrigatior: anc drainage scher.1es, farm machine sheds, packin~~ sheds, and storage warehouses. Such capital has to be invested on privately ov~rned property. If the financial neans are secured privately as mortga~e credits, the durable nature of the i1nprovements should facilitate sloF._r amortization over a period of from twelve to twenty years. The ~:i ssion feels, however, it would be a serious mistake to allow the total volu..'ne of mortgage debt to grow to such a level as to introduce into the agricultural system a large and rigid structure of long term obligations. Uruguay is fortunate at the rnomer.t in having a relatively lovr long-term a?;ricultural debt structure. ~·!ere it to become greater, it is conceivable that in 182 the event of an agricultural depression the prospective benefits of the adjustnents recommended by the J11ission vrould be offset by the burden of a rigid debt service which rught seriously interfere vdth the efficient workings of the entire agricultural economy. Apart from long term improvement capital, there is need for a substantial amount of medium term credit for p~Ner-driven equip- ment, trucks, and farm implements. These credits 1mght range froD nine months to three years and might be secured by chattel mortgages. Under prevailing conditions, and ~dth continual acceleration in technical obsolescence, such capital should be amortized vdthin a period of from five to seven years. Investment in mechanized equipment faces a serious handicap since almost all of it must be imported. l~ices paid by the average farmer are high in relation to those prevailing in rtany other countries and the prices for spare parts are relatively still higher. It is clear that in the national interest all practical steps should be taken to insure that Uruguayan farmers are able freely to import 1:hatever equipment they deem necessary, but advice should be available to then regarding the most appropriate types and makes of machines and every effort should be 11ade to reduce the corrLmercial cost of importation. There is a substantial further need of capital arising from the Lission 's recommendations. The normal vv-orl:ing capital of the ranches and particularly of crop farms and dairy farns rmst be enlarged. Additional capital Viill be needed for seeds, lime, phosphate fertilizer, fuel and lubricants, machine repairs, 183 veterinary supplies, and purchased feed. A major part of the required capital should be available from increased returns resulting from nevr and improved practices, but to tbe extent that retained and reinvested incoMe is inadequate, recourse should be made to short ter1:1 credits. Finally, the recot:u:nendations of the report require additional capital investment outside the field of agriculture itself. For example, the construction of lime crushing plants, fertilizer plants, cold-storage warehouses, ndlk collecting stations, creameries, and cheese plants vdll require a substantial volume of capital investment. h.luch or perhaps all of such capital could be supplied by private investors. If this is not feasible, the enployment of public funds will be required. There also ·will be a very substantial general requirement of long teru investment capital for the building of roads and bridges throughout the country, a developi!lent vrhich will require public finance exclusively. Incentives If the Bission 's recommendations are to be impleElented, it seems certain that a coherent system of incentives vdll be required to insure that the desired adjustments are initiated and completed. ~:!any of the changes involve real innovations, and an under- standable hesitancy mi~ht lead to the neglect of many desirable measures because of the initial risks apparently involved. In all such cases, the Government should foster the adoption of the recommended policies bff means of suitable incentives. 184  One of the first and Most important incentives is the simple one of making supplies readily available, especially those supplies which are required for the adoption of nevf technj_ques. In this category would be placed improved seeds, phosphate fertilizers and liMe, machinery and farm equipnent, and vaccines. Certain direct incentives 1nay also be desirable. These may be eli vided into tv;o classes. The first involves. the extension of short term and intermediate credits at lovv interest rates. Since all the recommendations which have been made shmud in time increase the net returns to the producer, the incentive afforded by the grant of these favorable creci ts should· t:e provided in such a vray that their benefit ~~11 decline over a period of a few years. Wherever possible, they should be granted on terms vrhich permit control over the execution of the desired adjustments. The second type of direct incentive is more extreme and should be applied only if a real necessity arises. It is directly to subsidize, for a limited period of time, those materials which are essential to the successful implementation of the proposed program. Cheaper fuel for tractors and T.'O'Wer-driven machinery, lov·r-priced phosphate fertilizers, ground limestone, and improved legume and grass seed, and possibly free vaccines and other critical veterinary supplies, might justifiably be made available to the producer. In short, if subsidies are to be extended in any fashion to assist agricultural prod~cers, the Nussion would strongly reconwend direct subsidies for a limited period, to be applied to specific production factors, the use of which could confidently be expected to lower unit costs of production. 185  Estimate of Possible Increase in Output In the previous par~Jraphs, emphasis has been laid on some of the factors limiting the rate and extent of the change which would result from the adoption of the ~.fission's recommendations. It may be that the warnings given are too cautious. Yet the possibilities of increasing agricultural output are so great, and the absolute necessity of increased output at lcw1er cost is so important to Uruguay, that the H:ission is convinced that sins neither of omission nor of commission should be allm~ed to check the full expansion which can be achieved. The 1'Jission is satisfied that if the program recommended in this l1.eport is pursued as an integrated agricultural policy, with proper incentives provided and all measures applied with sound economic discretion, proc;ress would be substantial and of long duration. Calculations concerning the extent or the rate of progress must be approximate and tentative, since actual development vdll be influenced by the economic environment in which Uruguay will operate in the future. Assuming that these economic conditions remain relatively stable, the ltission believes that the systematic introduction of the practices and linprovements recommended in Parts I and II, in combination with a gradual improvement in research and advisory services as described in Part III, should, 1r.ithin less than ten years, make it possible to double the output of beef and hides, greatly increase the output of wool, establish 186 the production of fat lambs on an economic basis, increase the output of milk and milk pro0ucts at a substantially red\.lced unit cost of production, continue the eX'_t>ort of veget~ble oils, oilseeds, and rice given favorable external market c ondi ti ens, and rnaintain or achieve self-sufficiencJr in wheat, potatoes and sugar. This increase in output should be accompanied by some improvement in the net income received by producers, even on the basis of a price-cost relationship someFhat less favorable than e::dsts today. It is probable that the rate of .:.~regress towards the end of a five to ten year perio( would be such as to justify the confident e~oectation of even further developments in subsec~ent years, as the results of increased research become evident and the skill of all agricultural workers improves. 187  NOTE A DEFERRED AND ROTATIOl'JAL GRAZING The role which deferred and rotational grazing can be made to play in an effective range management program was discussed in Part I, Chapter I, of the Report. The following somewhat ex- panded discussion may be of some assistance, however, for those not familiar with the nature and operation of such practices. Although grazing practices vary from count~ to count~ accord- ing to varying conditions, the practical systems of range manage- ment in all countries include an effort to utilize the grasslands and other range resources in such a manner as to yield profitable returns and, at the same time, to maintain the resources on the basis of sustained, and i f possible, improved yields. Much difference of opinion exists among investigators and stockmen of the world with respect to the kinds and combinations of prac- tices that 1vill be most likely to achieve these objectives. There is a fairly complete literature on the subject and particular reference can be made to it from the selected bibliographical list at the end of this Note. The relative merits of rotational and deferred grazing versus continuous grazing have been the subject of extensive attention among experts on range management. The evidence in favor of the one or the other is by no means conclusive and depends upon the conditions prevailing in a particular area. Rotation and deferment have been beneficial in some instances and of no advantage in 188 others.1f They have given best results on highly improved pastures and when the animals have been rotated in accord with the condi- tions of the forage rather than at fixed intervals of time. Although the evidence on the different ~stems of grazing is not conclusive, there is fairly conclusive evidence on the closely related problem of overgrazing. Investigations conducted through- out the major grazing regions of the world universally show the dangers of overgrazing if it persists for any prolonged period of time. All of these investigations emphasize the importance of leaving a reasonable reserve of unused forage stubble on the land at the end of the growing season. This is important because sus- tained vigor of plant production is dependent directly upon the development of sufficient top grmvth to replenish the root re- serves. A reasonable amount of unused top grmvth also reduces evaporation, encourages conservation and penetration of moisture, and controls erosion. Increased root development, made possible by conservative grazing, enables the plant to ·withstand drought, remain green longer, and produce more and better quality of feed. Deferred and rotational grazing particularly facilitate the achievement of these beneficial results. Periodic exclusion of the livestock during the gro·wing season of the vegetation enables the plants to develop a deeper and more ramified root system. This, in time, permits the better plants to compete with the less 1/ See Journal of Range I.Ianagement, American Society of Range - Hanagement, Januar.f 1951, for a symposium on this subject. palatable ones and allovrs them to produce the maximum surface growth. The controlled rotation of a grazing herd from one enclosure to another permits the forage in each enclosure to be grazed at its most palatable and nutritious period and by the class and age of livestock which will yield the highest economic return. }'urthermore, by regulating the degree of use in relation to the condition of the forage, it is possible to force the animals to consume the forage more closely on the grazed area. This results in less waste by over-all trampling and selective grazing while, at the same time, the plants in other parts of the range have an uninterrupted chance to grow, enlarge, produce seed and renew their root resources. Under highly favorable conditions, when rainfall is adequate and evenly distributed, many if not most of these beneficial re- sults also can be obtained 'vith continuous grazing. Even under such optimum conditions, however, a rather high degree of control is necessa~. The problem becomes vastly more difficult when climatic conditions are variable and the situation is characterized by uneven and uncertain rainfall with frequent droughts. Under such circumstances the ranch operator is in a difficult situation. He is so occupied with the immediate and pressing problem of hmv to get enough feed either from his m~ range or from outside to carry his herd over the difficult period that he has little time to consider what effects the heavy degree of continuous use he is forced to wake of his range vvill have upon its subsequent produc- tion capacity. Deterioration under such conditions is almost certain to occur. 190  This kind of situation is not unusual under the highly variable climatic conditions of Uruguay. The ranch operator is obliged to wrestle almost continuously 1v.ith the problem of hmv to stock his range so as to avoid the evils of overgrazing. Stocking to capacity during favorable seasons may result in severe losses during adverse periods. rrasteful use of range forage, on the other hand, is cer- tain to occur in good seasons if the carrying load of livestock is maintained at the low level suitable for severe droughts. This situation is one in which all the conditions appear to favor the use of a ~Jstem of deferred and rotational grazing tied in with and sup:Jlemented by an adequate program of feed reserves. The possibilities which such a s.ystem of range management offer for improving pasture utilization in Uruguay warrant extensive trial throughout the country. Before this s,ystem of pasture management can be introduced generally, hmvever, much trial and experimenta- tion will be necessary. It also \vill involve some changes in ranch layout, particularly an increase in pasture subdivision as well as some changes in water development. Attention will need to be given particularly to determining by careful experimentation, on a practical ranch basis, the proper number of animals to be carried on the range for its most effective use, including tests of different rates of stocking with different combinations of sheep and cattle and of different deferment periods for each class of livestock. Although many of the large ranch operators will be able to make these tests for themselves, it is 191 the sort of problem the Government should tackle in the Range De- velopment Research Section previously proposed. Comparative grazing tests also will be needed to determine the extent to which a temporary reduction in existing rates of stocking will be necessa~J to bring about a substantial and sus- tained improvement in the range forage on a year-long basis, the economic feasibility of such a reduction, and also in which class of livestock the reduction could best be taken. Ranch operators will want as precise inforrnation as they can get since they vrill hesitate to make such reductions unless they are convinced that there will be benefits in the long run. ~"That they obviously will be seeking will be to bring about as quickly as possible an improve- ment in their ranges which will permit an increase rather than a decrease in their rates of stocking. rrhere deferred and rotational systems of grazing have been introduced i..YJ. other parts of the world, under conditions favorable to such s.rstems, both increased carrying capacity and increased returns have ultimately resulted even though it was necessary at the outset to reduce livestock numbers temporarily. It is the considered opinion of many stockmen and officials in the Govern- ment that such results are possible in Uruguay. The possibilities, at any rate, are so promising that the system should be given a thorough trial. For a more detailed treatment of deferred and rotational graz- ing as well as of other significant range management problems see the following selected bibliography: 192  Bibliographical References Clawson, Marion. The Western Range Livestock Industry. McGraw-Hill, New York, 1950. Roseveare, G. E. The Grasslands of Latin America. Bul. 36, Imperial Bureau of Pastures and Field Crops, 1948. Saunderson, lv.lont H. vv~es tern Stock Ranching. Uni v. of Einn • Press., Hinneapolis, 1950. Savage, D. A. Grass Culture and Range ImRrovement in the Central and Southern Great Plains. Cir. 491, U. s. Dept. Agr., 1939. Savage, D. A., and Heller, V. G. Nutritional Qualities of Range J..,orage .Plants in Relation to Grazing Results with Beef Cattle. Tech. Bul. 943, U. S. Dept. Agr., 1947. Stoddart, Laurence A., and Smith, Arthur D. Range l:Ianagement. l"'cGraw-Hill, IJew York, 1943. ~' the Yearbook of Agriculture for 1948. U. s. Dept. Agr., Wash., D. C. Wheeler, Yl. A. Forage and Pasture Crops. Van Nostrand, New York, 1950. 193  NOTE B TI1TRO:CUCTION OF BETT:C1t LEGUBES AND GRASSES The legumes and grasses discussed in this Report should be smvn, treated and managed under a wide variety of conditions as soon as possible to determine practical and economical methods of establishine them. Many seedings vvill be failures but the successes are capable of transforming the whole of the grasslands of Uruguay • some of the legumes and grasses worthy of trial are listed . in the follo~dng tabulations. The more intensive phases should include all available strains and sources of each species. Ex- perience elsewhere has shown that some strains of a particular legume are Y!ell adapted to a given area,. while others are not. For example, the first strains of Trifolium subterraneum tested in northwestern United States proved to be a failure, whereas subsequent accessions were highly successful. Delay in obtaining satisfacto~ legumes for Uruguay will be avoided by a thorough test of all available strains. PreliminarJ tests on a range basis should include the more promising species from the suggested lists, with other species added as rapidly as seed supplies and facilities permit. Legumes most worthy of immediate trial are Trifolium subterraneum, Lotus corniculatus and~ uliginosus, ~~sativa and Hedicago falcata, Trifolium procumbens and Trifolium dubium, Lespedeza stipulacca and Lespedeza striata, Trifoli~~ pratense, and 19h Trifolium Incarnatum. Grasses sho1ving the greatest ~~ediate promise for trial include the Brazilian strain No. 284 of Lolium multiflorum, Bromus catharticus, Festuca elatior, Phalaris tuberosa, Dactylis glomerata, several Andropogon species, Paspalum notatum and Paspal~~ dilatatum. A few specific remarks about these leading legumes and grasses may be helpful. Trifolium subterraneum has given good results at four loca- tions in Uruguay. 'rhis low-growing, winter-annual legume is certainly worthy of L~nediate trial on a rather extensive scale. It appears to be especially promising for improving depleted ranges. One small planting on a prepared seedbed of native range has survived and spread by natural reseeding for eleven years, in spite of rather close grazing for the last seven years. The seed- ing norr consists of a fairly dense stand of the clover intenningled with most of the better native grasses of the country. Of special interest is the fact that the undesirable Stipa grass that infests the adjacent range is conspicuous by its absence in the seeded area. Other grasses appear to have been greatly stimulated by the soil-improving characteristics of the legume. Another ranch also has an excellent strip seeding of this legume which is spreading onto adjacent range land. Good grcw~h and heavf yields of seed 11ere obtained in 1950 at Estanzuela, indicating that the seed can be produced satisfactorily in the 195 count~J,and that the legume can compete and grmv with other vegeta- tion. Special harvesting and processing equipment and techniques are required to handle the seed crop. Pending development of seed production in Uruguay, the seed ~ay be obtained from Australia, New Zealand, and the Pacific Northw·est sections of the United States. Forty different strains have been isolated and recognized in North America, including early, medium, and late-maturing types. The earlier strains are more resistant to drought. Trifolium subterraneum develops root nodules with the same nodule bacteria that inoculate Trifolium repens, Trifolium hybridum incarnatum, and Trifolium hybridum. Trifolium subterraneum is usually soYm at 2 to 3 pounds per acre when used in combination with grasses. However, rates as low as 1 or 2 kilos per hectare should provide the nucleus for satisfactory final coverage by natural reseeding under reasonably favorable conditions. Lotus corniculatus probably ranks second anong the promising legumes for range improvement in Uruguay. This summer-growing perennial legume has given good results at Estanzuela for several years. It has produced two crops of seed annually, showed fair recovery from drought, and eY~ibited resistance to nematodes. It may be desirable to use it in mixtures with alfalfa on nematode- infested soils. It is cormnonly gr01rm in mixtures vrith Lotus uliginosus in parts of the United States. The latter leg~~e may be well adapted in Uruguay since it does well under somewhat simi- lar conditions in the southeastern United States. 196  The Lotus species usually respond with satisfactory final stands from the use of som~ihat lower seeding rates than were suggested for Trifolium subterraneum. Each Lotus requires inocu- lation with a different and specific culture, unlike the bacteria usable on other legumes. The Hission believes that the acreage of alfalfa may be greatly expanded in Uruguay, confining it of course to well pre- pared seedbeds on the deeper and better soils. Extensive areas of good alfalfa soil are limited in Uruguay but some areas suit- able for alfalfa occur on nearly eve~ farm and ranch in the countr.y. The failure of this valuable legume to survive on cer- tain soil types nay be due to stem nematode infection rather than soil conditions. This may indicate the need for introducing or developing nematode-resistant varieties.· Importation of more drought resistant varieties is also 1•rorthy of consideration. Trifolium procumbens and Trifolium dubium are winter-annual legumes that perpetuate themselves by natural reseeding. Lespedeza stipulacca and Lespedeza striata are s~~er annual legumes that may be used successfully in airplane seedings of native range. Extremely limited tests of Lespedeza in UruguaJr have not shm~m much promise. Further and nore extensive trials should be conducted to determine their adaptation to the count~. If they should reseed themselves and thrive as they do else·Prhere they would be excellent surmner-growing legumes to use along with the trefoils in mixtures with such winter species as the Trifolium species. 197  Trifolium pratense, another deep-rooted legume, has shovm promise for forage and seed production, longevity, and natural reseedings at Estanzuela. Ordinarily a biennial, it frequently develops as a short-lived perennial. It may be an excellent substitute for alfalfa on neutral or acid soils and is desirable to use in mixtures 1vith orchard grass and other grasses. Of the grasses, Lolium multiflorum and Bromus catharticus have proved to be well adapted in Uruguay and are worthy of exten- sive use in providing palatable forage for winter and spring grazing and fattening. Their tendency to become established rapidly by natural reseeding on renovated range lands mal<.:es them an effective and economical substitute for oats pasture. They are also superior to oats in resistance to aphids. Seed of these grasses can be produced readily, harvested easily 1v.ith ordina~ farm machinery, and made promptly available for extensive use in areas where they do not appear naturally in sufficient quantity. Hore permanent grasses suitable for immediate use include Festuca elatior and Phalaris tuberosa1 vvith Dactylis glomerata, the Andropogons and Paspalums deserving of trial. Further and more extensive efforts should be made to increase and use for re- seeding purposes such valuable native grasses as Andropogon saccharoides, Paspalum notatum and Paspalum dilatatum. Andropogon ischaemum and Andropogon intermedium ~ caucasicus thrive well in North America under conditions similar to those of Uruguay. The ability of these highly-productive, deep-rooted perennial grasses to increase and spread by natural 198 reseeding in the face of competition from other plants makes them desirable species to include in range seeding trials. LEGUMES RECOI 1MENDED FOR TRIAL Scientific Name and Duration of Growth Common Names Annuals~f- Trifolium subterraneum Subterranean clover Trifolium proc~~bens Large hop clover Trifolium dubium Small hop clover Lespedeza stipulacea Korean lespedeza Lespedeza striata Common lespedeza Trifolium incarnatum Crimson clover Me dicago lupulina Black medic Indigophera hirsuta Hairy indigo Alysicarpus vaginalis Alyce clover Nedicago orbicularis Button clover Medicago tuberculata Cogswheel clover Crotolaria inter.media Slenderleaf crotolaria Crotolaria lanceolata Lanceleaf crotolaria Perennials Lotus corniculatus Birdsfoot trefoil Lotus uliginosus Big trefoil Trifolium repens 'Tfui te clover Trifolium repens var ladino Ladino clover Hedicago sativa~H~ Alfalfa Medicago falcata~H~ Alfalfa Adesmia bicolor "Uruguayan native" Lespedeza sericea Sericea lespedeza Biennials Trifolium praten~e~H~~ Red clover Melilotus albus White sweet clover I.Ielilotus officinalis Yellow mqeet clover * VIany of the annual legumes perpetuate themselves by natural reseeding. ~H} For use only on well prepared seedbeds ~H} Often a short-lived perennial. 199  Gl1ASSES RECOM~!ENDED FOR TRIA.L Scientific Name Connnon Name Lolium multiflorum Domestic rye grass Bromus catharticus Rescue grass Festuca elatior Tall or "alta" fescue Phalaris tuberosa Harding grass Phalaris minor Annual canary grass Dactylis glomerata Orchard grass Andropogon saccharoides Silver beardgrass Andropogon ischaemum Turkestan bluestem Andropogon intermedius var. caucasicus caucasian bluestem Paspalum notatum Bahia grass Paspalum dilatatum Dallis grass 200  NorE C §LLAGE AND HAY CONSERVATION 1. Silage Conservation Grass silage can be made with a wide variety of equip- ment. The equipment listed in the recommendations has a number of advantages. It can be used, with small crews, to harvest both silage and cured hay. It is also considered to be the minioum that will afford efficiency in operation as well as the ability to harvest large quantities of forage over short periods of time. Experience in other countries has shown that more forage can be stored per man hour of labor by the use of a buck rake than by use of other types of equipment, providing the forage is stored near the place where it is cut. It is essential that the tractor equipment -- the mower, buck rake, and scraper -- be of a type which permits attach- ment or release by one man in a few minutes. Otherwise much time will be lost in changing equipment. High-speed wide-cut mounted tractor-mowers are most de- sirable in cutting large quantities of forage quickly and in utilizing the power of the tractor more efficiently. A four-bar heavy-duty side-delivery rake is much pre- ferred to three-bar side-delivery or dump rakes. Four-bar rakes will handle heavy green forage at faster operating speeds than other rakes, and will give much better service. 201  Forage should not be cut in too large an area, or storage at the optimum moisture content cannot be a~tained with the equipment on hand. It may be necessary to cut forage several times a day to prevent over-drying. If two tractors are avail- able for harvesting, thoequipment will not have to be inter- changed, as the rake can be pulled with a tractor having either a buck rake or mower attached. When necessary, an improvised hitch can be made without difficulty. A high-lift buck rake is essential to permj.t placing forage on stacks and in trenches. Care should be exercised when using a buck rake on the front end of a tractor not to exceed the capacity of the wheels and bearings on the tractor. Loading of green forage for silage must be carefully watched in order not to overload the equipment. The construction and size of trench silos should be such that equipment may be driven through, during filling, to pack the silage and to eliminate further handling. The trench should not be so large that forage cannot be fed fast enough to prevent spoilage. Once the trench is o9ened for feeding, a layer of at least 5 centimeters thick should be removed each day to prevent spoilage. The trench should be opened at the lower end and fed in layers like slicing a loaf of bread so that as little of the silage is exposed to the air as possible. A trench large enough to hold 120 tons of silage should have the following approximate dimensions: 202 3 meters deep, 3 meters wide at the base, 4t meters wide at the surface and 20 meters long. A slope of i meter inward for each meter of depth is recomreended for the side walls as it permits eaey packing and helps to prevent air pockets and the caving of dirt walls. Unlined walls usually stand well in heavy soils. Under other soil conditions, a lining of plaster, rock, brick, clay tile, cement or other materials may be neces- sary. A tractor-mounted scoop is particularly useful for digging the trench, for covering the sj_lage with soil, and for carrying out the silage at the time of feeding. Trenches should be located so that surface flood water cannot enter and there is no danger from ground water. Trenches should be dug well in advance of the filling date so that the crop can be stored at the best time to preserve feed nutrients and to ~lize labor and equipment efficiently. Trenches used in the previous year should be put into good repair well in ad- vance of the filling dates. Trench silos should be made on sloping ground whenever possible. The bottom of the trench should be sloping to pro- vide good drainage. The trench should be filled at a rate fast enough to pre- vent surface spoilage and should be covered as soon as filling is completed. A covering of at least 10 centimeters of -::et straiT should be placed on top of the silage and covered uith at least 10 centimeters and ~referably 20 centimeters of damp soil. 203  The preservation of silage depends in part upon the mois- ture content of the material stored. Grasses or mixtures of grass and legumes may often be ensiled when cut. Most legumes usually require some wilting to reduce the moisture content to approximately 65 percent moisture (wet basis). Conservation of forage as silage should be done at the leafy stage of growth before the plants come into full bloom and before they get mature and coarse. At the stage of early bloom the forage is higher in nutrient value and more palatable than at more mature growth. As a general guide, legume plants such as alfalfa should be made into silage from one-tenth to one-fourth bloom stage. Equipment other than that listed above may also be used for harvesting and storing silage. Field choppers are used extens~vely in other countries. However, they are expensive machines and require considerable power. Such equipment with attachments can b€ used for cutting row cro9s, standing forage, or forabe from windrows. When field or stationary cho?ners are used, the silage should be cut into shorts lengths for sBtisfactory storage. The length of the cut will depend on the type of material. Until investigations prove otherwise, all material should be cut to 2 centimeters or less in length. Literature on hay-making ffiethods and practices is docu- mented in the United States and other countries and should be 2oL~ used as a guide for making silage and hay until investigations indicate otherwise. 2. ti!I_Conservatio~ The field hay-baler is particularly suitable for reducing hay to a form that can be easily handled and transported. Recent developments of the one-man automatic-tie field-baler makes possible the baling of at least four tons of hay per hour under good baling conditions. Automatic one-man field-balers are made to tie bales with wire while others use twine. The twine used in balers is made specifically for hay balers and is stronger than that used with wheat or corn binders. The balers are made with power provided by an auxiliary motor drive or by power take-off from a tractor. Adequate power is essential when heavy windrows of hay are baled and when large amounts must be baled quickly. For this reason, balers with the auxiliary motor drive are much preferred to balers powered from tractors through power take-off drives. Because of the high initial cost of baling equipment, large amounts of hay must be baled for efficient economical operation. For this reason only custom operators and operators with large acreages should acquire baling equipment. Loading scattered bales in the field by hand onto wagons or trucks is hearJ work and requires much labor. Such labor requirements can be greatly reduced by loading directly from the baler onto a trailer. This system for handling bales 205 requires additional hauling equipment but reduces the labor requirements and much heavy work. In addition the bales are stored as soon as they are baled and are not subjected to weather. Bales may be loaded from the field onto wagons by use of bale loaders. This type of equipment attaches to the side of a truck or wagon. The loader conveys the bales from the ground onto the wagon merely by <iriving down the row so that the bales can enter the front end of the loader~ Another system is to pile bales on a simply constructed sled attached behind the bale chamber of the baler. A small sta~k of 12 or more bales is piled on the sled, then slid off by means of a pole or rod. This may be accomplished with little effort if the sled is constructed so that an open space exists in the middle of the sled parallel to the direction of travel. The bales are removed from the sled by inserting the pole or rod through the slot of the sled into the soil so that it will not slip. As the sled is pulled forward the bales slide off. The pole is then removed and. kept on the baler for removing successive stacks of bales. Bales are then put onto wagons from the stacks and stored as desired. Considerable traveling in the field is eliminated and labor is utilized more efficiently than by picking up scattered bales in the field. It is essential that hay should not be baled with too much moisture or mold and spoilage will take place. The proper 206 moisture content will depend on the material baled, weather, and storage conditions. Normally, however, baled hay of not over 20% moisture content will keep satisfactorily. Free circulation of air through a pile of bales will tend to dry out any of the bales which may have too high a moisture content. Baling extremely dry leafy hay tends to knock off the leaves. When this happens the leaves are lost and the hay quality is reduced. Good management of harvesting, baling, and storing hay is most important for conserving the maximum nutrients of forage. All harvesting equipment should be kept in good repair at all times with the spare parts on hand that are normally re- quired in a season's work. Lost time due to equipment break- ing down will thus be kept to a minimum and storage of hay can be assured without undue losses caused by rainy weather or over-drying in the sun. 207  NOTE D SUGGESTED CROP ROTATIONS AHD ESTIMATED FETITILIZEa AND Lil;JE NEEDS FOil ACHIEVIIJG lli?J.OVED USE OF ARJ,.BLE LANDS In Chapter rv of Part I as well as in Part IV attention has been called to two alternative patterns of using the arable land area of Uruguay which appear to offer considerable promise for in- creasli1g income and for brL~ging about increased production on a sustained basis. There has been no discussion in the Report, hmv- ever, of the specific rotations which might be used to achieve these patterns of usc, nor has there been a clear indication of the ro~gnitude of the shifts in crops that would be involved, or of the amount of fertilizer and other materials that would be nee~ed. These points are discussed in some Qetail in this expanded Note. 1. Land Use Alten1atives and Suggested Rotations Alternative patterns of land use and a number of specific crop rotations that could be used as guides for achievi..Tlg them are shown in Table 1 below. The five rotations shown provide for a wide rap_ge of conditions and for considerable flexibility. They vary in length from two to six years and differ also in the ratios of the various crops gr01m. They all provide for the growing of soil-improvM~g leguminous crops for at least 25 percent of the tL~e during the rotation cycle, as recommended 208 earlier in this report. flot~.:ti2.!! No. 1 is the ILost desirable rotation from the standl)oint of soil improvement and erosion control" It is well suited to some of the most rolling and erosive soils. Since alfalfa grows well in the Frey Bentos area and since this area has a considerabJ.e proportion of rolling soils, this rotation should be especially appllcable to the south- western and western parts of the country. If it is desired to grow a higher proportion of grain crops to alfalfa, the number of years of alfalfa in each cropping cycle could be reduced from three to two. Rota.tion_No~_g is also suitable to the areas of relatively intensive grain and cash crop production in the southwestern and southern parts of the country, especially where the soils are less rolling and a greater proportion of grain crops is desired than is obtained in Rotation 1. Since the legume- grass crop is grown for only one year, the legume species might consist mostly of Trifoli~oratensis and Trifcl~Ym in~_!!!!~Ym' with possibly small amounts of alfalfa. Rotation No. 2 is suited only to areas that are not sub- ject to serious erosion, especially where a maximum acreage of grain or cash crops is desired. It is probably most applic- able to small farms but could also be used on other farms in combination with rotations 1 or 2 as a means of increasing the proportion of grain or cash crops grown. 209  fiotation._llQ~ is similar to Rotation 3, except that half of the land is used for rotation pasture. It is best adapted to ranches where only a limited amount of plowable land is available and where im?roved pastures as well as feed reserves are needed. Since it has the disadvantage of requiring con- siderable grass and legume seed, it is omitted in land-use Alternative 2. Rota~n No~ 5 is one of the most practicable and flexible rotations for ranches throughout the country where sufficient areas of plowable or arable land exist. This is especi.ally true in the northern section of the country. After two years of cropping, the J.and is reseeded to grasses and legumes and kept in improved pastures for variable lengths of time, depend- ing on the amounts of plowable land available. Thus, a triple goal is ach:l.eved: improved pastures, more feed reserved, and a cash crop if desired. The proportion of the total arable land that is devoted to each of these rotations determines, of course, the amount of the various crops grown. Land-use Alternative 1 assumes no increase in the total area of arable land, but provides for the major changes in land use recow~ended in Part I of the Report. Since legumes would be grown in all the rotations and lime and fertilizers would be used where needed, much higher yields of grain and oil crops would be obtained than at present. The total production of these crops could thus 210 be obtained on about 300,000 fewer hectares, which would be released for the growing of improved pastures and of much needed feed reserves in the form of hay or silage. Land-use Alternative 2 differs essentially from the first alternative in that the total arable land area would be increased to 2,400,000 hectares by bringing 700,000 hectares of permanent pasture into a long rotation, consisting of two years of grain or oil crops followed by six years of improved past\~e. The 200,000 hectares in Rotation 4 would also be converted to Rotation 5. 1~us, the total area of improved pastures would be increased by 620,000 hectares and the area of other crops by 80,000 hectares, compared with the first alternative. An ad·vantage of the second alternative, as previously pointed out, is that it would not necessitate as large an amount of fertilizer and of legume seed. Even though little or no legume seed or fertilizer is used in Rotation 5 and de- pendence is placed on volunteer legumes for the pasture, the yield of grain and cultivated crops in this rotation would still be considerably higher than in the present cropping systems, because of the well-known value of pasture sod to the physical and biologic conditions of the soil. The possibility of expanding the area in Rotation 5 will, of course, vary with different farms and sect1. ons of the coun- try, depending on the amount of potentially tillable land now 211 in pasture. For the country as a whole, however, much more land could be shifted to this rotation than is suggested even in Land-use Alternative 2. It should be ~ecognized, however, that without the reseeding of legumes and the use of fertilizer and lirne where needed, this alternative represents in part an extractive system of land use and should not be continued inde.finitelyo 2. Fcr~ill:~!: and Lime Nee§.§ The amounts of fertilizer and lime needed can only be very roughly estimated. In order to evaluate the feasibility of the suggested changes in land use shown in Table 1, however, it is desirable to make some estimates of the amounts of fertilizer and lime that would be required. These estimates are shown in Tables 2 and J. The assumption with respect to the percentage of the land in each crop rotation or group of crops that would receive lime and fertilizer, and the amounts needed per hectare, are indicated in the tables. It will be noted that primary emphasis is given to the use of fertilizers and lime for the legume crops. These crops are the "key" crops in the rotation, for if they are grown successfully they will add nitrogen to the soil and will thus greatly improve the yields of other crops that follow in the rotation. Moreover, they usually respond more to lime and fertilizers, especially phosphates, than do most of the other crops grown. 212  A total of approximately 135,000 tons of fertilizer is estimated to be needed in Land-use Alte:cnati ve 1. A somewhat larger tonnage would be needed in Alternative 2 if the same rates of application were used. In view of probable shortages of phosphate fertilizers tn the next few years it has been asstmed that only about one-half as much fertilizer would be available. Under such an assumotion the second land-use alternative would be definitely preferable to the first. The lack of fertilizers would be compensated for in part by the J.arger acreage of arable land, and by the greater amount of sod in Rotation 5 for plowing under befor-e the sowing of the small grain or cultivated crop. The reduction in the amount of fertilizer in Alternative 2 to 70,270 tons is accomplished large.ly by (1) not using fertilizer on wheat; (2) by reducing the amount of fertilizers for Rotation 3 for vegetable and fruit crops and for large- scale pasture fertilizer trials; and (J) by not using ferti- lizers in hotation 5. Such a reduction is suggested only while a fertilizer shortage exists. Since the larger amounts of fertilizer mean greater efficiency in production, every effort should be made to overcome the fertilizer shortage and to use the amounts needed. 213 n-u~~~~ f o_:_~~~~~.!~~~__!~- Imp_:~.!~~-~~: er~a t i .!~Patter~ of-~~nd_y~lf __ ----------------------~E~_jE-~1ff~I~~~2.Pes ~f-E!~~OOO_F!l______________________ __ Alternative 1 Alternative 2 120 80 40 240 120 80 40 -------·--~----------------.-a-.-. .. ~-··---~--------------------------- ..--.....-----------------------...- )0 75 150 75 300 75 150 75 )0 150 150 )00 150 1.50 :>O 100 100 ----------~-------------------------------~ ...----------.......------·------------------- )60 90 90 1,440 1,080 220 140 ---------------------------------- ___________ _____ 30 655 570 355 2,280 ....,._ ~_... 1,275 ____ ___________ 600 .,.. 405 __ -----------------------~----------------------------------~---------------------~-~------- ~2,000 H~) that was used in 1949. It also assumes that both fertilizer ~nd lime are avail- the other hand, assumes an increase of 700,000 Ha in the arable area and further assumes lll be available. 'f cultivated or spring planted crop. The best a,dapted legume or legume-grass mixture will 1itable for the various rotations are the following: Rot. 2 - T~ifolJ~ vrat~n~l§, 1!1- inCA,rnaturn, Melilotus illl!i~. and other species of ~otus; Rot. 4 - J&.§J2~dezl!- ~- 5 - !!!foliE!l ~terr~E~um, ~mi~ .lli£~~ and~~ CorniculatuA. (See also Note A.) rice; \'lhereas the "cultivated or spring planted crops" are primarily corn, sunflowers, ~e between these two groups of crops is possible, as is indicated in Rotation 5, Alterna- eneral Estimate of Annual Fertilizer Feeds lternatives and crop rotations outlined in Table 1) ve 1 Land-Use Alternative 2 ge ----------- Total ------ ---...-- -------- Average Total of amount of Total area amount of amount of General izer Fertilizer Percent Fertilized Fertilizer Fertilizer type of a) (Tons) Fertilized -------~-------...,.._,_----~- 14,000 (Ha) (k./Ha) 70 (Tons) __._,_____.....__,__._ 28,000 500 ________ 14tOOO Fertilizer ~----------------- Largely phosphates __ ____________ .._ 6,000 __. ____________ _._,__ _ ---- ... Largely -------- superphosphatea _ . ~ ~ - - - - ~ - - - - - - ~ - - 9.000 40 30,000 300 9,000 Largely phosphates 5,625 Largely superphosphate& 18,000 30 45,000 250 11,250 Largely phosphates 12,000 Largely phosphates -------------------------- 10,800 ----------~--~~~ Largely phosphates __ ..,..., ___20,800 ...,_.... __________________________ 80 41,600 400 _____._...., 16,640 ____ _ Mixed fertilizers of various kinds Largely nitrogen and 18,600 50 37,200 4oo 14,880 mixed fertilizers ----------' 3,000 4o 10,000 )00 3,000 Various types ---------------------------------------- 15,000 5,000 300 Phosphates 132,825 70 '2'70 -------- f as much fertilizer would be available as in Alternative 1.  1eral Estimate of Annual Fertilizer Needs iernatives and crop rotations outlined in Table 1) ~ 1 ~-------- .... - ---- Land-Use Alternative .,...._._..._ 2 --- ~ Total Average Total )f amount of Total area amount of amount of General ~er Fertilizer Percent Fertilized Fertilizer Fertilizer tyPe of (Tons) Fertilized (Ha) (k./H~) (Tons) Fertilizer ·--------------------- 14,000 70 28,000 500 14,000 Largely phosphates ·------- 6, 000____________________________________ Largely supe!J:~Osphat_:e 9,000 40 30,000 300 9,000 Largely phosphates 5,625 Largely superphosphate& __________________ _______________________________ 18,000 30 45,000 ....,.._ 250 11,250 Largely phosphates 12,000 Largely phosphates 10,800 ---------------------------------- Largely phosphates Mixed fertilizers of 20,800 80 41,600 4oo 16,6Lto various kinds --------------------------.... ---~---- ... ---------~- Largely nitrogen and 18,600 50 37,200 4oo 14,880 mixed fertilizers ·--~~-----------------~--------·---~-------~----~---------------~-----~--~-~- . __________ 3,000 40 ,_,_....._.... 10,000 ___________ .... _... _____ 300 ),000 Various types ~--.-.---...--__...._._-----------------·--- . ' 15,000 5,000 )00 15,000 Phosphates 132,825 70,270 ----------- -------- as much fertilizer would be available as in Alternative 1.  1/ Table 3.- Estimated Junounts of Lime Needed for Six-;rear Period~ -,-- 1 ··-·-·---,-··-··-----··· Estimated area f Amount of ' I I Total '''r in greatest need lime needed Rotation a:~ea in ' 1 of lime No. rotations 'I Per- Tons ·y; l Totai- ''Jcent of Hectares per i tonnar:e 21 ftotal (000) Hectare I (oo·J) I 1 ·-- -- 1 240 30 72.0 6 432 2 300 20 60.0 5 300 3 280 25 70.0 5 350 4 200 15 30.0 4 120 ___ ...-,.. 5 600 10 4 240 Vegetable a.nd other 32 30 6 58 crops Total JOlo6 1,5oo 1:/ Lime refers to finely ground limestone or equivalent. 2/ Amounts eiven assume purity of at least 90 per cent, and gri~ding to such fineness that So per cent passes through a 6o-mesh sieve. 3/ If ::_t is ass1.·.med that these values are approximately correct, and that it would take six years to carry on this program, the requirement would be 250,000 tons annually. This estimate considers, however, only the areas in most critical need of lime. Horeover, it does not include the amounts tha.t might profitably be used on some of the land in perma- nent pasture if the price of lime was materially reduced. The long- time needs, especially, must therefore await further investigation. Since alfalfa and sweet clover grow less satisfactorily on acid soils than other crops grov:n, these crops should get priority in the liming program. 216 1. Efficient 1Jse of Fertil:1.zers. bd. by Vla(limir Ignatieff. Agricultural Studies, No. 9. Food. and .t.griculture Organization of the United Nations. Hashinct.on, D. C., 1949. 2. National Joint Cornrai ttee on Fertilizer Application. I~Iethods of Applying Fertilizer. Iiationa.l .Fertilizer Association, Washington, D. C. Revised 1<)48. 3. Surnmary of Phosphorus Research in the United States Re~~?ting to Soils an~ Fertili~ers e Phosphorus hes€arch -~Jorh: Group oi the National Soil and }...,ertilizer Research CoiilLd.ttee. w·ashint;ton, D. C., 1950. 216 (a)  NOTE E THE NEED OF A SOIL SGRVEY PROORAlv1 ·-----. ·-- It has been recommended in several sections of this report that a soil survey program be initiated. This recommendation is based on the fact that it is impossi.ole to develop properly and utilize efficiently a country's soil resources without a knowledge of these resources and their distribution. P~though it is beyond the scope of this Note to outline the details of such a soil sur- vey program, it seems desirable to emphasize here its importance and to point out certain essential features and requirements. The basic soil survey program as developed in most of the advanced agricultural countries of the world consists essentially of four phases: 1. Determination of the properties of different soils by field and laboratory studies, 2. Classification of the soils, based on their properties, 3. The preparation of soil maps showing the distribution and exact location of different soil types, and 4. The bringing together and interpreting of pertinent infar- mation about the various soil types as a basis for determining their productivity, their adaptation to different crops and the management practices that may be or are required for efficient crop production. The information available at present regarding the soils of Uruguay is mostly scattered and general in nature. No systematic 217 study has been made, nor have any soil maps been prepared shOi..J"ing the location of different types of soil. In contrast, much progress has been made on the geological survey of the country. A general geological map is available, and for some sections of the country detailed geological studies have been compJ.eted and appropriate naps published. Because of the absence of soil maps these geological maps have been used as general guides to the soil conditions in differGnt parts of the countrjr. They are entii"ely inadequate in themselves, hoHever, even for this gen- eral purpose • .Soil survey maps and reports have many specific uses. Among these may be listed the follo-vring: 1. Providing the farG or ranch opera tor \vi th specific in- formation about his soils and enabling hi!n to apply the results of research, and of experiences obtained on sinilar soils else- ~rrhere, to his own farr·1ing operation. 2. Serving as a basis for determining the best land use and the potential distribution of different crops i.n different parts of the country, as \.rell as on individual farms and ranches • 3. .Serving as an aid in planning research programs of various types, but especially in the locating of field experiments and pilot research farms on representative soil types or Hhere most urgently needed. 4. Guiding farm buyers and colonization groups in the selection of land. 218  5. Appraising land fo~ farm loans, farm purchasing, tax assessments, or public land acquisition. 6. Planning of irrigation, flood control, drainage, erosion control and similar projects. Other uses of soil maps and reports include guidance in the location of public roads, schools and rural electric lines as 1..rell as in the construction of roads and airports. It is evident that a strong soil survey program would be a great aid in giving direction to and in bringing about many of the needed adjustments in land use recon1mended in Part I of this report. In fact it can be stated unequivocally that uithout the development of such a program many of the proposed and needed changes in land use and in management practices discussed in Chapter IV of Part I cannot be fully realized or made most ef- fective. As no general soil T;1ap of Urugua~r is available, the first step should be the preparation of such a map based on a recon- naissance or general surveyo This should be completed if at all possible in a period of not nore than five yearso It should include both field and laboratory studies of the main soil t~)es. E~uch a survey would be particularly useful in providing basic information for broad land-use pla~~ing, for general predictions and reco~mendations, and for organizing research on different soil tJ~es. Detailed soil surveys, however, should be initiated in sn~~ll soil 2rcas soon 2ftcr the rcconnaissar.cc survey is initiated. These might first be made where specific projects are being 219 planned for la::1cl reclar.:ation, erosion control, or irrigation, but they should eventual1y cover the entire country. r::'he detailed classification and mapping of the soils of a co~~try as large as Uruguay is a major undertrucing and one that cannot be completed in a few years. It uill need careful, long-time plar21ing, the development and adoption of a logical and scientific syster.1 of soil classification, the training of an adequate c:~nd competent staff, and the assurance of con tin- uity for the program and its financial support if the desired progress is to be made. Huch guidance in the development of such a program can be obtained from the experiences of workers in other countries. A comprehensive handboolt based on years of experience not only in the United ;States of iimerica but iri other countries as uell has recently been prepared. It should prove a very valuable guide to uorkers in Uruguay, not only in developing the broad aspects of a soil survey program, but also in developing specific 1I _/ procedures. Tbe t:;eological maps of Uruguay and the other information developed by the Geological Institute should, also, be of great value in the development of soil surveys, particularly in the preparation of reconnaissance soil maps. It should be fully realized, however, that the underlying rock or parent material is only one of the major soil forming factors that determine the properties of soilso A sound system of soil classification 1/ Kellogg, Charles E., Soil Sury_ey Hanual (Second edition). United States Department of Agriculture, Agriculture Handbook No. 18, Hashington, 1951, (In press) 220 must be based on the characteristics of the soils themselves, including the characteristics of the profile, slope of the land, and other pertinent features. These are the soil factors that determine the value of soils for crop production and the management practices that are necessary for efficient and sustained production. It should be emphasized, also, that the basic soil survey is essentially a technical and research activity. As such, it should be fully integrated with all other soil resaarch, and it should be conducted by an able and Hell-trained staff. Harkers in this field :!1ust be thoroug~ly trained not only in -~he broad subject of soil science but also in chemistry, !zeology and botany. Loreover, they need to have a good under- standing of agriculture, including the fields of farm managenent and agricultural economics. 221  NOTE F LIVESTOCK DTBL'JillES (Prepared for the Mission by Dr~ Bennett T. Simns, Chief of the Bureau of 11nimal Industry, United States Department of Agriculture) Disease is a ser~ous handicap to Uruguayrs livestock industry as may be expected in any country vvi th a large and highl;:r concentrated livestock population.,. The Uruguayan Government has long recognized this. ~.Iany years ago a veterinar:r college was established and a v;ell-organized staff of government veterinarians was placed in charge of the control, eradication, and prevention of diceases of livestockQ They h0.ve made, and are making, good progress. B~t, as is true in so many countries, much remains to be done. Both the veterinary officials and the live- stock ovmers of the country are anare of this o The entire progrmn for controlling and preventing diseases of livestock in Uruguay should be strengthened., This will be expensive. But funds spent for this purpose should be considered as investments rather than expenditures. If properly used they will pay big dividends. An adequate, continuous supply of ,:vell-trained veterinarians is the first requirement for any disease-control program. The veterinary college is the only source of such personnel. It is basic,then, that Uruguay maintain a good veterinary college. If this is to be done additional modern facilities for teaching ~ust be provided and the staff must be enlarged. The government should encourage staff members to do graduate ·work in other countries by providing financial support for such studiesc The staff engaged in disease control, eradication, and prevention must be enlarged and its facilities greatly expanded if 222 Uruguay's livestock is to attain maximum freedom :.C'rom disease. The officials in charge realize this and have made recommendations and requests based on this concept~ The following specific suggestions and recommendc:.tions concerning some of t11e more serious diseases are made. _Foot-:_~;fouth~ .Q.ise a~:.... (Aftos~) This is one of the most serious of the C.iseases occurr:_ng among Uruguay •s livestock. The methods of control in use at present are inacequate to prevent widespread outbreo.ks of aftosa vvith serious losses to the beef and mille producerso Tl1e final objective in fighting foot-a.11d.-mouth disease should be co~plete eradication. But it seems quite evident that the time is not yet ripe to undertake such a program in Uruguayo The immediate efforts should be directed tcv1ard control and prevention of spread~ Hany years of experience in the different parts of the world nhere aftosa occurs has shown that this disease can breach all but the most stringent quarantines. .Gven ·when reasonably well enforced., quarar..tine mea2ures usually slow dorm rather than completely prevent the spread of aftosa. During the last decade vaccination against this disease has become a recognized aid in controlling it. The officials of Uruguay have adopted a combin2tion of quarantine and vaccination as the st~~dard control program, probably the most logical procedure under the circumstances~ The success of such a program depends upon (1) adequate quarantine laws and regulations, (2) sufficient trained personnel to enforce these, (3) rapid diagnosis, (4) availability and use of potent 223 vaccine, and (5) support of the pi·ograrn. by· livestock owners and producers. Uruguay seems to have sat:..sfactory quarantine laws and regulations. Lurin:; acwte and widespread outbreaks it vvill be necessary to add teBporary employees to the field staffe There are several types of foot-and-mouth disease virus, &'1d vaccines made with one type do not protect against other types. It is, therefore, necessar.r to determ~.ne the t~rpe of virus present before the type of vaccine to be uE·ed can be known. Such determinations require accurate and intricate laboratory tests; in many instances including inoculations of' some few ani.1llals. 4·~s a basic requirement, then, both staff and laboratory facilities for mal:ing st~ci1 tests are necessary. Uruguay already has the nucleus of such a la.boratory staff. These are ·well- trained, competent 1-vorkerso But some additions v.rill be necessary if an adequate diagnostic service is to be maintained. And it would probably be advisable for at least one or two of the staff members to spend some time 1·mrking in one of the laboratories vvhere such diagnoses are being regularly made. The laboratory facilities for such norl-:: are entirely inadequate. Before accurate and efficient service can be rencered additionallaboratory space, including quarters for housing experimental anQ test anLDals und~r strict isolation ru1d quarantine, must be provided. Uruguay is lacking in facilities to produce foot-c:nd-mouth clisease vaccine. Consec;.uently the country depends upon establi~hments in other countries for this product. In times of stress this has proved unsatisfactory. Serious consideration should be given to vaccine production within the country. In such countries &s Holland, Switzer- land, dexico, and Denmark, vaccine production has been, c-11d is, a goverrunent activity. In some instances the livestock owners have 224 purchased the vaccine, thus mah:ing the laboratories very largely self-supporting. In Mexico the 1·iiexican-tinited _~tates Comr~1ission for the Eradication o:f Foot-and-Mouth Disease produced vaccine and administered it free of charge. In other countries such as France and Argentina privately-ovmed laboratories have produced vaccine$ Since private industry has not provided facilities for tl:e production and testing of foot-and-mouth disease vaccine the government should give serious consideration to tl1e development of a laboratory for this purpose$ Such a laboratory should be of sufficient size to p:"ovide an adequate supply of vaccine at all times. It should be equipped to test each lot of vaccine produced for both innocuity and potency. It shoul<i ·work in close cooperation vrith the diagnostic lc.boratory. In some countries diagnosis and vaccine production have been corilbined in a single unite Brucellosis Data collected by the veterinary authorities of Uruguay sho-rr tnat brucellosis is v-ridespread among Uruguayan cattle herds. },Jethods of controlling ana. eradicating tJ.1is disease are vrell knorm. f.Torvray, SI'Ieden, Denmark, and Finland have eradicated brucellosis from large areas within their boundaries by eliminating ini'ected cattle, preventing exposure of disease-free cattle, and, in some instances, vaccination of heifers vrith Strain 19 Brucella vaccineo In other countries, such as the United States of .~erica and Canada, vaccine has been more Y!idely used along vrith elimination of infected cattle and quarantine. These countries have made good progress in preventing the ravages of brucellosis but in them actual eradication has been somewhat slower than in the Scandinavian countries. In still 225 others, such as the United Kingdom and New ZealandJ use of Strain 19 Brucella vaccine has been the principal activity. Here, too, econ01nic losses from brucellosis have been fairly vTell controlled but actual eradication is far from accomplished, An active br1;.cellosis-control pro;;rai'n should be launched in Uruguay as soon as this is practicable. It is probable that a large amount of educat:Lonal vrork ·with beef producers and dairyr::en must be done as a preliminary step. The type of progran1 best suited to the country can best be determined by the Uruguayan veterinary officials. Tick Fever The l"Jission focmd a l.rell-oPga:ni zed ticJ.r... cont.rol and quarantine program under way in Uruguay,. Perhaps vd.th more educational vwrk the cattle owners would become more interested in comp:..ete eradication of fever ticks at an early dateQ Tuberculosis Tuberculosis is not a very vadespread obstructive disease of cattle in Uruguay,. The veterinary authorities are fully aware of the necessity of stamping out tuberculosis rather than allovring it to extend to additional cattle and animals. Here again some educational work with the owners may be advisableo Anthrax and Blackleg The veterinary authorities seem to keep these tvro diseases under good control by requiring regular vaccinatioN on farms and estancias where these infections are knovm to occur. 226  ~heep Scab Uruguay has made fine progress in the control and eradica- tion of sheep scab. The llission believes every effort should be made to elirninate the last ni te so that the country may be entirely free from this disease. Spmmary Sugges~jQns and Recommendatjons 1. That Uruguay give full support to programs for the control, eradication, and prevention of livestock diseases. 2. That the veterinary college be given sufficient financial aid to enable it to supply Urt:tg-uay -v1i th an e.dequa te number of well-trained veterinarians. 3. Thc-~t personnel and facilities be provided the veterinary staff for making laboratory diagnoses of foot-and-:nouth disease and tn)ing the virus. 4. That facilities for production of foot-..and-mouth disease vaccine be developed in Uruguay. 5. That a program for brucellosis control and eradication be o.eveloped as soon as it is practiccblc •. 6. That continued attention be given to educating livestock owners in regard to the importance of disease control, eradica- tion, and prevention. ?. That, at the earliest practical time, the tempo of the programs for control and eradication of tick fever and sheep scab be incree.sed. 227  NOTE G TIJPROVEI'.'lENT OF },~ILK HARKETING As stated in Recomnendation 16, Chapter V, Part II, the Hission endorses without qualification the recommendations of Mr. James P. Johnston, President of Dair,y Sealed Incorporated, in his report on COIJAPB.OLE of July 1, 1950. The following is a verbatim extract of the relevant section of his report: The Plan for Enlargement of the Conaprole ?lants Several solutions to the problem of effecting the necessary expansion and improvement of Conaprole 's facilities were analyzed with the Conaprole engineers. One proposal was to build a nevr plant large enough so that all operations Ymuld be contained therein. This was rejected because such a plant would be expensive to construct and inefficient to operate. The distribution of milk from a single plant to all sections of the city would be very costly. 1:Ioreover, to have all acti "'"lities in one plant ~-rould be hazardous; in case of fire, accident, or other disaster all the plant capacity vrould be lost. Other plans that ·were studied would have been costly from a construction and operational standpoL"lt, and v1ere also rejected in agreement with the Conaprole engineers. The best solution to the problem appears clearly to be the development of the tiYO existing Conaprole city plants to their greatest potential. The reasons for this conclusion are the following: (1) The larger structure required to house the necessary addi- tional equipment can be erected and the equipment installed in the shortest possible time. (2) Such a plant will be the least expensive to construct and the most efficient to operate. (3) There is adequate boiler capacity in the present plants to operate the increased equipment. (h) The present Plant Eo. 2 has excellent railroad siding facilities, which permit rail shipments of rr~~~ and materials. (5) The necessary power lines, water lines, sewage line and gas line are alreaqy installed and good road facilities surround the plant. (6) Very little additional refrigeration equipment is required, because there is considerable equipment already operating, such as compressors with electrically driven motors, condensers, evaporators, ammonia lines and brine taru:s and brine lines. 228  (7) Refrigerated milk storage rooms already exist in both plants, and would requtre only a small addition to accommodate additional volume. Under the plans agreed upon the pasteurizing capacity for the two plants will be : Plant No. l - 15,000 liters per hour, equivalent to 28 per cent of the total capacity. Plant No. 2 - 40,000 liters per hour, equivalent to 72 per cent of the total capacity. Plant No. 2 vall be used exclusively for the pasteurization and bottl:i.ng of milk.. Plant No. 1 will be used to nanufacture milk products and to pasteurize and bottle milk. 'Ihis allocation v1as determined by the size of the plant structures and the territory to be served. The total capacity of the t-vv-o plants will be 55,000 liters per hour; in a vvorking day of 8 hours a total of 440,000 liters could be processed, which is adequate for Conaprole's present needs and those of the ~1®ediate future. In the event of a substantial further increase in demand, two-shift operations could be institutedo The No. 2 plant vrill process a uniform amount of milk daily, permitting the fullest utilization of labor. The ~ount of milk to be processed in Plant No. 1 will fluctuate with the daily demand. As this plant manufactures other dairy products it vv-ill be possible to switch lab-Jr in accordance nith actual demand~ It is interesting to note that Plant No. 2 will be among the largest processors of milk in the whole vmrld. The largest Borden plant in New York City has a capacity of only 30,000 liters per hour. Upon their completion, these plants will be a model of the best method of handling milk for all the Americaso The expenditure required to car~ out the Conaprole plan is esti- mated as follows (approxL~ately): Pasteurizing, bottling, refrigerating and associated equipment U$1., 750.,000 Reconstruction of building of Plant 1 100,000 Reconstruction of building of Plant 2 860,000 3 Country Receiving Stations 6oo,ooo 10 refrigerating tank trucks of 10,000 liters capacity each 300,000 1,200,000 bottles to substitute the present ones, This substitution to be gradual and vvill be made to replace present bottles over a period of a year to comply vvith Municipal regulations 204,000 100,000 vdre bottle boxes 700,000 Contingencies 50o,ooo TOTAL U$5,ol.h,OOO 229  In round numbers, therefore, Conaprole v:ill require U:)5,ooo,ooo to carry out this plan. It is believed that tl1is added indebtecL'1ess should be amortized over a ter:n corresponding roughly to the prospective useful life of the facilities ~or vitich it will be incurred; this woto.ld necessarily be considerably less than the 50 years fixed for the 1936 bond issue. It would be most unfortunate for Conaprole to find itself, after 15 or 20 years, faced r.'ith the necessity of replacing its facilities, lacking an:r reserves with VIhich to do so, and unable to borrow because it still 11ould be saddled for many years vrith the debt for the outworn equipment. Moreover, it should be noted that U$904 1 000, or nearly one-fifth of the total, is expected to be spent for purposes -- new bottles and bottle boxes -- v.:hich fall normally vTithin the category of current ope~:·at:tng requirewents. It is true, to be sure, that ne-;;; health regu- lations necessitate complete replacement of Conaprole's present supply of bottles and boxes, but it may be assumed that normal breakage 1imuld require the replacement of the former at least, over a relatively short period, in any case~ It appears essential to the sound financial operation of Conaprole that adequate reserves be built up in future to provide for such current requirements for supplies and equipment. Asst111ing a term of 15 years o.nd a 5 per cent interest rate, the approximate cost of servicing the contemplated investment of U~5,000,000 would be: Interest at 5 per cent on u~5,ooo,ooo U$250,000 first year (In subsequent years, as the principal is paid off, this interest cost vrill decline to zero) P~~ortization over 15 years 333,000 per year Total for first year U$ 583,000 Average cost over 15 years U$ 458,000 per year On the basis of Conaprole's 1949 sales of 135 million liters this ~~ounts to less than one-third of one centesimo per liter. The improvement in the supply and quality of milk would be worth far more. Moreover, if full advantage is taken of the opera~ing economies th2.t are possible with the new facilities, the resulting savings 1-vill greatly exceed the sum required to service the proposed investment. The principal savings vrill derive from the reduction of Conaprole rs labor requirements. There are now 44 supervisors and 280 workmen (100 of 11vhom 1vork in the pasteurizing and bottling departments), in Plant No. 1, to vrhom Conaprole pays U$44,000 per month; with ti1e new equip- ment the total labor force could be reduced by 15 per cent, principally in the pasteurizing and bottling department, with a resultant economy of U$6,600 per wonth. In Plant No. 2 there are at present 62 super- visors and 454 workmen, to whom Conaprole pays U$84,000 monthly; this personnel could be reduced 30 per cent, resulting in an economy of U$25,200 per month. Plant No. 2 1.vill have only one shift of 8 hours, instead of working 16 hours daily as at present. It will function at 230 full capacity for the pasteuriz.ation and bottling of milk. The total anticipated labor saving would thus be u:::> 31,300 per month, or u~:::J31,600 annually. Other substantial savings could also be expected.. The follo-:or- ing table lists the costs for certain items from July 1, 1948 to Jur_.~:; 30, 1949, and shoYJS the pote!ltial savings on each item, expl"essed as percen~abes and in terms of pesos. ActuaJ. costs :?otential Savings (19h8-19L~9) % Pesos Losses of LL-i..lk u:·~loS n ' 46q / 90% u:::;97, 622 Ii'D.el oil 145,000 65% 94,250 J.epairs lhO,OOO 70% 98,350 Bottle breakage 84,500 50% 42,250 u::~332,472 The potential ::::avj_ngs of labor and other costs thus total over U(;>?OO ,000 annuall:r, Yihich T.roulcl nore than suffice not only to pay interest and amortization on the ~1ecessary investment but also to build. up a small 'depreciation rese:i"Ve. 231