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  • 8/14/2019 Economic Development and Biodiversity Gain with Local Community Cooperation.pdf

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    Journal of Economics and Sustainable Development www.iiste.org

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    Economic Development and Biodiversity Gain with Local

    Community Cooperation

    Dr. Ismaiel +buamoud1,) Dr. aed +l-abini2) Eng. /0alid +l-/0alidi*) ustafa +l-S0udiefat*

    Economic Development ourism Economics Specialist) 3ueen ania Institute of ourism 4eritage) 0e4as0emite 5niversit6) ".&. o8 1%(%9) :ar;a 1*11%) Jordan

    1. esearc0er) < and +cademic Director) SI) Sc0ool for International raining) +mman) Jordan2. 0e o6al otanic

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    management of gra?ing is critical to maintaining soil 0ealt0) especiall6 because up to 7 of JordanCs land areais used solel6 for gra?ing purposes !ilne et al.) 27#.Despite t0e potential productive value of rangeland) JordanCs land 0as become severel6 degraded. In 1991) t0eGood and +gricultural &rgani?ation of t0e 5nited Nations estimated t0at JordanCs badia onl6 provided 1 of

    its potential forage cover !G+& 1991#) a trend t0at 0as worsened over time. P0ile anal6ses 0ave suggested t0atforage cover in JordanCs rangelands could provide up ( of livestoc feed re;uirements) supplemental feedaccounted for 9 of animal feed in t0e 199s !+l-Eisa) 199$# and 9% toda6 !+l-abini) 211a#. If current use

    patterns continue) JordanCs ecos6stem is predicted to become more vulnerable to erosion over time)compounding and entrenc0ing an e8isting problem !+l-+damat et al.) 27#. "redictive modeling suggests t0at@overgra?ing) leading to degradation of rangelands) LisM t0e single most important issue facing Jordan in terms ofsoil organic carbon stocsB !

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    0e traditional resource-management s6stem in t0e iddle East) nown as hima) establis0ed protected areas tobe used as droug0t reserves. 0e himas6stem simultaneousl6 s0ielded 0erders from t0e full impact of climates0ocs and allowed for 0erd rotation on available land resources. It managed gra?ing sites) limiting t0e numberand t6pes of ruminants or restricting access based on climactic variations !/ilani et al.) 27#. 4owever) t0e

    same factors breaing down communal management s6stems t0roug0out +sia and +frica 0ave affected t0eiddle East as well) and better transportation) c0anges in land tenure) and a state-centric management approac0to land decisions 0ave all accelerated t0e erosion of t0e himas6stem !ourn) 2*#. Jordan 0as not been e8emptfrom t0ese c0anges) leading to t0e aforementioned fragmented s6stem of land owners0ip and regulation.Evidentl6) t0is problem 0as manifested itself in land degradation and insufficient motivation for conservation.+not0er criticism stems from t0e in0erent irrationalit6 of t0e Rtraged6C in t0at) w0ile eac0 0erder ma6 ma8imi?e0is s0ort-run returns) long-run returns will inevitabl6 suffer as a result of increased environmental degradationin t0is lig0t) continued e8ploitation of t0e land is viewed as an irrational be0avior !Qipton) 1997a0man) 2*#.4owever) t0is irrationalit6 can be considered rational given e8ternal conditions w0ic0 re;uire an emp0asis ons0ort-run t0ining) given t0at a long-run profit motive would encourage reduced animal stocing rates tore0abilitate degraded rangeland !orell et al.) 1991#Namel6) @!1#increases in population as mortalit6 falls butfertilit6 declines lag and !2# declines in common propert6 resourcesB !Jod0a) 19$K 1991#. ot0 conditions are

    present in Jordan) albeit wit0 fertilit6 rate fluctuations !inistr6 of unicipal) ural and Environment

    +ffairs)1991 5S+ID) 212#. ore importantl6) considerations of rational be0avior must tae into accountaccurate opportunit6 costs of reducing wor for 0erders often woring below t0e povert6 level. &ne e8planationof 0erd e8pansion e8plains)o farmers living at t0e subsistence level) less of an6t0ing often translated into t0e difference between survivaland starvation. "astoral nomads faced a similar situation. 0e6 also needed more cas0 for new ta8es and to bu6supplies t0e6 0ad once gotten t0roug0 barter. raditional means of risingcas0declined) but cas0re;uirements increased. +s farmers s0ifted to cas0 crops) t0e6 produced less fodder and grain) so prices roserapidl6. o adapt to c0anging economic conditions) nomads 0ad to e8pand t0eir economies) w0ic0) of course)meant increased 0erd si?e !Speece) 1997#.0is anal6sis reveals a common t0eme of environmental conservation dialogue= environmental protectionnecessitates a reduction of income for affected parties.0e @environment vs. AobsB trade-off is 0eavil6 debated in t0e academic literature. 4owever) muc0 of t0isanal6sis is macroeconomic !e?de et al.) 2$# or industr6-level anal6sis w0ic0 focuses on 0eav6-polluting

    industries !orgenstern et al.) 2

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    top-down approac0 to range management similar to programs t0at 0ave been unsuccessful in edouincommunities in S6ria !O0att6) 199$#. 0e communit6 initiall6 ignored t0e fencing around t0e protected site andwould actuall6 cut t0e

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    and red meat in rural areas in developing countries is below international standards due to t0e traditional farmings6stem !+lam) 29Stein et al.) 21#.Empowering small 0erders) conse;uentl6) will efficientl6 support economic development obAectives) mainl6 indeveloping countries. 0erefore) educating small-scale 0erders in rangeland management tec0ni;ues) simple

    financial anal6sis tec0ni;ues) animal 0ealt0 protocols) and providing t0em wit0 supplemental gra?ing and animalfeed subsidies will improve 0erdersC economic returns on t0eir 0erds and improve c0ances of business success.0is process supports t0eir families and t0e local econom6 on t0e one 0and and allows t0em to preserve naturalresources on t0e ot0er !PG") 2#.

    Net profit for livestoc production is a function of several factors. +n almost endless number of productionpractices and management decisions) as well as man6 e8ternal forces suc0 as forage prices) livestoc prices)labor cost) transportation and ot0er macroeconomic variables) suc0 as interest and inflation rates) affect 0erd

    profitabilit6 !David et al.) 199*#. Specialists at t0e O now w0ic0 factors a 0erder ma6 need to improve onto mae t0e best use of 0is 0erd. Gor e8ample) most livestoc 0erders do not anal6?e t0eir individual 0erd profit)

    but rat0er depend on a measure of t0e amount of cas0 on 0and b6 t0e end of t0e 6ear to determine t0e netrevenue for t0eir business. 0is process fre;uentl6 leads to incorrect management decisions) as t0e profitcontribution of various factors is unnown !4ug0es) 2K#.+ccurate identification of t0e factors t0at determine 0erd profitabilit6 allows 0erdsmen to focus t0eir

    management efforts on t0ose areas t0at can improve profitabilit6. Simple economic and financial anal6ses canassist t0em in maing profitable decisions. 0roug0 t0is proAect) t0e O 0as tried suppl6 t0e missing piecest0at 0erders in Jordan need in order to improve t0eir profitabilit6 b6 woring closel6 t0roug0 specialists wit0 agroup of 0erders near t0e protected area to increase t0eir nowledge and return per 0ead.

    '1 (erd %tructure

    Pit0in Jordan) t0e 0erd si?e and structure depends on t0e willingness of t0e farmers to maintain a 0erd si?ecommensurate wit0 t0eir resources and t0e si?e of t0eir famil6. Gamil6 si?e ma6 0ave an impact on 0erd si?e dueto t0e dependence of small-scale 0erders on t0e famil6Cs labor. 0is affects t0e process of replacement in t0e0erd) and some 0erders follow t0e pattern of replacement t0roug0 t0e election of t0e best from t0e entire 0erd)w0ile ot0ers bu6 from ot0er 0erds or utili?e bot0 met0ods. Ewes are t0e basic unit of production in t0e 0erd.evenue from livestoc in Jordan primaril6 comes from t0e sales of lambs for meat) mil production) and

    breeding animals. +dditional revenue is obtained t0roug0 t0e sale of culled mature animals and b6-products) e.g.wool and manure.

    4erders assume t0at male lambs must reac0 a certain age or weig0t before t0e6 are sold and) conse;uentl6)e8pected prices determine t0e age at w0ic0 t0e6 sell t0e lambs. In t0is stud6) it 0as been found t0at lamb pricesrise graduall6 t0e longer t0e 0erder eeps t0em before t0e6 are sold. 4erders generall6 sell t0eir lambs at t0e ageof K mont0s or older to generate 0ig0er revenue per 0ead. Gemale lambs are usuall6 ept or sold for breeding and)in some cases) are sold for meat.0e productive life of ewes ma6 e8tend for more t0an five 6ears in some cases farmers ma6 cull a ewe in t0ecase of illness) inabilit6 to produce or not producing as e8pected !Polfova) Polf) ilersi) 29#. Oosts perewe or per 0erd are calculated for feeding) transportation) 0ealt0 care) labor) breeding and purc0asing of breedinganimals. +ll remaining costs) suc0 as depreciation and maintenance e8penses) are included as fi8ed costs peranimal or per 0erd.Some livestoc 0erders prefer to 0ave s0eep and goats in t0e same 0erd) as we find in our sample) and somedepend on one t6pe of animal. Qivestoc owners in Jordan primaril6 depend on imported fodder to feed livestoc.Due to droug0t and scarcit6 of vegetation) t0e6 need to purc0ase feed t0roug0out most of t0e 6ear) but ma6

    cutbac t0e amount allocated per 0ead in spring time and during t0e 0arvest season for w0eat and barle6 innort0ern and central Jordan.

    * DataGive 0erding families were anal6?ed for t0is stud6. Despite t0e relativel6 small sample) t0ere were severalconsiderations appropriate to t0e studies t0at Austif6 t0e use of t0is locali?ed sample. Girst) t0e families in;uestion 0ad a 0istorical claim to t0e land put under protection b6 t0e < and used b6 t0e O.Oonse;uentl6) adAudications of program suitabilit6 wit0 t0e local communit6 were made more accurate b6involving t0e members of t0e communit6 w0o would potentiall6 0ave t0e greatest obAections to limitations ont0eir land. Second) t0e O program started wit0 Aust five families) and 0as since e8panded to nearl6 (. Peopted to evaluate t0e initial %member families so t0at our data would be more precise and less subAect to annualfluctuation. Ginall6) t0ere is a sa6ing in t0e 0erding communities of Jordan analogous to t0e +mericane8pression @seeing believes.B at0er t0an tr6 to persuade t0e entire communit6 of t0e benefits of t0e O)

    program administrators wored first wit0 willing participants in order to provide empirical results to t0esurrounding communit6. 0e e8pansion of t0e O proAect to *$ families b6 212 is testament to t0e benefits

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    of t0is approac0.Data used in t0e anal6sis were coll0erders. Specialists at t0e < visiwit0 advice to improve t0eir 0erds.

    and price of lambs sold) mil protransportation) medical services antables were built to compare 0erdersa total of 7*K 0ead) and t0e si?e0ectares#. Depending on gra?ing ca

    November ever6 6ear) providing frfeed re;uirements !

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    Gi8ed costs include depreciation on 0erd animals and buildings) e;uipment and rent. 4erders can improve t0eirnet revenue b6 minimi?ing t0eir variable cost t0roug0 ma8imi?ing t0e use of pasture if possible) producing t0eirown 0arvested feeds) bu6ing and storing feed in bul w0en it is available in low prices) and minimi?ing feedwastage. +lso) t0e6 can ma8imi?e income b6 selling at 0ig0er prices after improving t0e ;ualit6 of t0eir products

    and adding value to t0eir products. 0e sale price for s0eepCs mil is about T1perFliter and T.KFliter for goatCsmil. 0e mil is priced in line wit0 maret prices and t0e pricing of maAor competitors in t0e region.

    able 21. atio of variable cost items to total variable costs) 21

    o understand t0e variation among t0e five 0erders in terms ofnet revenue) additional anal6ses were conducted.Gigure2 s0owst0e contribution of eac0 item in t0e variable cost list as a percentof t0e total variable cost. Geed was t0e largest s0are) accountingfor %1 to $K of total t0e variable cost) followed b6 labore8penses in 29 and 21. 4owever) low feed costs do notalwa6s mean 0ig0er revenues and) in our case) it was found t0at4erder 1 paid t0e 0ig0est feed cost) but also generated t0e0ig0est income among t0e five 0erders.

    -" &atio o$ .ariable Costs to %ales &evenue

    able 22.'ariable cost to sales

    + ratio anal6sis of variable costs to total sales revenues important in order to understand w0at portion of total

    revenue was used to cover variable costs. able 2 s0ows t0e ratio of variable cost to sales revenue for eac00erder and 0erd) e8pressed as percentages of **to K7. 4ig0 variable costs reduce t0e Oontributionargin!O#) namel6 t0e difference between sales revenue and variable costs before deduction of fi8ed costs or)in ot0er words) t0e amount of sales dollars available to cover fi8ed costs after all variable costs 0ave been paid.0e Oontribution argin atio !O#) seen in able *) is t0e percentage of sales revenue) after deducting

    variable costs t0at is available to cover fi8ed costs. O U ( )/ 100. 0is ratio

    0elps to find t0e rea-Even "oint !E"#) i.e.( )/) and s0ows t0e minimum sales t0ateac0 0erder 0as to generate to cover bot0 variable and fi8ed costs. able * indicates t0at 4erder 2g and 4erder *sand *g did not reac0 t0e brea-even point) meaning t0at t0e6 were operating at a loss.

    1SU S0eep)

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    #able "' sales revenue/ variable cost/ contribution margin0ratio/ $ied cost/ and break2even point $or the

    $ive herders

    Herder SA"ES# $%# % %&'# (%# )EP#

    1FS %)22% 1K)%$2 **)K(* K7 $)1% T12)1K7

    2FS 22)7$ 9)%7 12)%7 %7 *)$72. TK)$*%2F< K)%1*, ()K* 2)(% *$ 2)9*$.K7 T7)$12,*FS ()*$2, *)19* 1)1$9 27 1)27. T()K$2,*F< ()%*K, *)2% 1)%11 ** 1)92. T%)7K%,(F< 9)(97 %)K1 ()(*7 (7 2)**. T()9$$%F< 12)*9$ %)$K% K)%** %* *)7**.** T7)$%

    ,'OU'ariable cost) OUOontribution margin) OUOontribution margin ratio) GOUGi8ed costs) E"U rea-even point+n additional anal6sis was conducted to compare cost-revenue per 0ead among t0e five 0erders. ables( and %gives t0e most detailed picture of t0e average cost and net revenue per 0ead for 21 compared to 29. 0e costand net revenue per 0eadis s0own for t0e five 0erders !wit0 andwit0out depreciation# for 21and 29. 0etables s0ow t0at t0e annual average cost and revenue per 0ead varied among 0erders. Data suggest t0e price offeed rose in 21 b6 more t0an 1 from t0e previous 6ear) w0ic0 e8plains t0e 0ig0 cost per 0ead in 21. Inaddition) a significant increase occurred in t0e net income for all 0erders in 21 compared to 29) as seen inGigure *.

    able2(.+verage cost and net revenue per 0ead) 21.

    Herder Average cost*head in dollars +et revenue*head in dollars

    Depreciation No deDepreciation Depreciation No Depreciation

    1FS T1(( T9$ T1($ T19*

    2F

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    !allowing animals to gra?ein t0e protected area for ( da6s# allowed 0erders to improve net income b6 %-11)w0ile direct subsidies !providing animals wit0 feed lie barle6 and 0a6# contributedat 2 to 1% of total netincome !ableK#.

    able 2K. Impact of < direct and indirect subsidies on 0erdersC net revenue1

    Herde

    r

    ndirect

    Subsi

    irectSubsid

    y

    otalSubsi

    dy

    +etncome

    ! ofotal+etncome

    from ndirect

    ! ofotal +etncome from

    irectSubsidy

    1-S T1)$9

    T1)1*% T*)

    T*%)*(

    ( 2

    2- T9(9 T1)17% T2)1

    T1%)$

    ( %

    *S T%7 T$K T1)(

    T*)9(9 1 1%

    (-S T*79 T1( T($( T%)*77 % 1

    %-

    T1)2*

    T1)1$ T2)2

    T$)1(* 11 9

    -* Lambing &ate/ Lamb %ales/ Breeding and ,ortality &ate

    able 27. Qambing ates)29 and 21

    Herder "ambing rate 2//0 "ambing rate 2/1/

    1-S 79 99.%2-S KK 79

    2-< K7 K2

    *-S (7 7(

    *-< * 9$

    (-< 9K 112

    %-< $2 7

    P0ile t0e number of lambs born per ewe is certainl6 an economicall6 important attribute in s0eep 0usbandr6)profitabilit6 is largel6 determined b6 t0e number of lambs sold per ewe. 0erefore) a great deal of effort s0ouldbe put toward t0e care of animal 0ealt0 before) during) and after birt0. /nowledge of w0en and 0ow lamb

    mortalit6 occurs can be 0elpful to reduce mortalit6 rates. 0e percentage of sales) breeding and deat0 loss fromt0e total number of lambs can give us an idea of a given 0erderCs management s6stem. Sales prices per 0eadobviousl6 0ave a significant impact on enterprise profitabilit6 as well. able 7 s0ows t0e lambing rate for t0edifferent 0erds in 29 and 21. 0e findings indicate t0at an improvement occurred in t0e lambing rate in most0erds) e8cept in t0e case of 4erder 2 and 4erder %.

    able2$.readown of total lambs b6 sales) breeding and deat0) in percentages lambs

    4erder Sales reeding ortalit6

    1-S 7% 2* 2

    2-S 9K (

    2-< %7 27 1K

    *-S 7( 11 1%

    *-< *$ %$ %

    (-S %$ 21 21

    %-< 72 2* K

    able $ s0ows a clear variation between t0e five 0erders in terms of lambs sold) breeding and mortalit6 rates.0e 0ig0 animal mortalit6 rates seen for some 0erders indicate a poor management s6stem. 0e overall cost oflost lambs is estimated at T*)7(and t0is figure represents loss of T7($ per 0erd. Gurt0er researc0 is needed toinvestigate t0e reasons be0ind t0e 0ig0 mortalit6 rate seen for some 0erders. It is important to now w0en and0ow lamb mortalit6 occurs in order to avoid suc0 losses in t0e future. oreover) recordeeping is also a critical

    10e indirect subsidies were computed based on t0e cost of feed per da6 per 0ead multiplied b6 ( da6s !gra?ing

    da6s for eac0 0erder#. aw *) total of direct and indirect subsidies) according to

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    issue w0ic0 can result in more effective and productive livestoc management.-+ Lambs and ,ilk %ales )ercentages

    able 29."ercentage of mil and lamb sales out of total salesQamb and mil sales are t0e primar6 sources of income from livestoc in Jordan) w0ile manure and wool are

    considered secondar6 sources of income !representing of total sales in our sample#. Qambing percentage andsales price per 0ead 0ave a significant impact on enterprise profitabilit6. 0e goal s0ould be to increase t0enumber of ids per female per 6ear. +ccelerated lambing of less t0an 12 mont0s is a wa6 to increasereproductive efficienc6 and reduce over0ead cost. able 9 s0ows t0e s0are of lamb and mil sales out of totalrevenue for t0e 0erds) and indicates a clear variation between t0e five 0erds. aret prices varied according tot0e si?e and ;ualit6 of t0e animals sold and maret demand. In general) 0erders in Jordan depend on on-farmsales) w0ere bu6ers come to t0em to negotiate sales prices) alt0oug0 auction barns or broers ma6 also be used.P0ile prices ma6 be better at larger) more distant auctions) t0e added transportation costs and sales commissionneeds to be factored into t0e price to determine an individual 0erderCs most profitable sales location. o generate0ig0er revenue) 0erders need to decide w0ere and w0en to sell t0eir lambs or goat ids. P0ile lamb is t0e

    primar6 c0oice for religious and cultural 0olida6s in Jordanian cuisine) bot0 lamb and goat sales s0ould be timedto matc0 t0ese periods of increased demand.il revenue depends on a number of factors) suc0 as maret price) 0erd nutrition and floc management

    practices !OI+I&N#. Gor e8ample) in

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    t0e degree to w0ic0 direct and indirect subsidies benefited small-livestoc owners in t0e targeted area.4erders w0o received subsidies witnessed improvement in net income ranging between 1 and 2K. 4owever)subsidies are not t0e onl6 factors t0at improved net income) as management decisions and t0e prices for inputsand outputs pla6ed a maAor role in net income variation. P0ile) t0e results cannot directl6 provide t0e economic

    impact of pastoralism in t0e stud6 area) t0e6 nevert0eless s0ow strong evidence of 0ow livestoc and land usescould best be promoted in t0e stud6 area.In t0is stud6) 0erder post-intervention incomes were anal6?ed based on actual e8penses and sales. In order togain a better understanding of t0e ot0er factors impacting per-0ead productivit6) furt0er anal6sis of t0e 0erdersCsocio demograp0ic c0aracteristics is encouraged to be included in future anal6ses. 0is t6pe of anal6sis 0elps tounderstand t0e correlation between per-0ead productivit6 and 0erdersC c0aracteristics) and will 0elp t0e < to

    provide t0e 0erders and local communit6 members wit0 appropriate training. Improving t0e local communit6Cincome will) in turn) assist t0e < to ac0ieve its primar6 goal of preserving t0e ecological s6stem in t0e stud6area.0us) we find t0at several important steps must be made in order to ma8imi?e profits for local 0erdingcommunities w0ile protecting valuable rangeland resources=

    41 (erd 5uality

    esults suggest t0at traditional small-scale livestoc 0usbandr6 in Jordan 0as t0e possibilit6 to 0ave a 0ig0

    economic impact on t0e national econom6 as well as on local communities. + small improvement in per-0eadproductivit6 can raise t0e total productivit6 for meat and mil. Increases mig0t be ac0ieved simpl6 b6maintaining t0e productivit6 of eac0 animal rat0er t0an b6 increasing 0erd si?e. 0e role of specialists in animal0ealt0 and animal nutrition in educating management regarding t0ese issues will be ver6 important to 0elplivestoc owners reac0 t0is goal.

    4" 6lock &ecords

    In order to eep trac of animals in t0e floc) eac0 0erder must maintain detailed floc records to assist inmanagement decisions. Information s0ould be recorded for all animals starting at birt0) including birt0 weig0t)se8 of lamb) t6pe of birt0 !single) twin#) and be ept for t0e entire life c6cle. If a lamb dies prior to weaning) t0iss0ould also be noted along wit0 t0e cause of deat0. +s 0ig0 deat0 losses ma6 be due to disease) parasites or poormanagement) detailed records can be used to identif6 t0e cause and tae corrective measures. Information onfloc records can be stored in a variet6 of wa6s) including noteboos) and < staff can 0elp to eep recordswit0 computer software suc0 as E8cel.

    4' ,arketing0e 0erders in t0is stud6) lie most 0erders in Jordan) raise s0eep and goats for meat and mil production. Pit0t0ese two products as t0eir primar6 income source) farmers 0ave to ma8imi?e t0eir revenue from t0ese sourcesusing improved management s6stems. It ma6 be wise to also establis0 an additional income source b6 producing0ig0 ;ualit6 breeding stoc animals for sale. &nce a reputation for ;ualit6 stoc is establis0ed) breeding lambscould t0en be sold at an6 weig0t. 0e group of farmers woring wit0 < 0as a comparative advantage overot0er 0erderCs due of t0eir location) w0ic0 gives t0em ot0er benefits since t0e6 receive a special support from

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    consider using a profit anal6sis to determine and monitor t0e profitabilit6 of t0eir flocs. In addition) t0e stud6suggests t0at 0erders s0ould maintain 0istorical records allowing t0em to measure progress over time. Ginall6)t0e stud6 concludes t0at) albeit on a locali?ed level of anal6sis) environmental protection measures ma6 beimplemented effectivel6) and wit0 communal support) to promote bot0 environmental sustainabilit6 and

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    liveli0oods in agro-pastoral communities. 4e also collaborated in t0e set-up of t0e adia Oenter for EcologicalEducational. Dr. +l-abini is currentl6 a researc0er at t0e o6al otanic

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