GOVERNMENT POLICY EFFECTS ON CATTLE AND WILDLIFE RANCHING PROFITS IN ZIMBABWE

The profitability of alternative range-based production systems is fre quently affected by government policies. Moreover, the comparative pro fitability of wild and domestic animal production systems on African s emi-arid savannas has not been well analyzed. This paper presents a si mple method for analyzing government policy effects on ranch profits a nd reports application of the method to 30 commercial cattle, 7 wildli fe, and 13 mixed ranches in Zimbabwe. Ranches were selected in 4 conti guous woodland savanna areas with abundant wildlife and in 2 adjacent open savanna areas with sparse wildlife. Financial profits were calcul ated from 1989/90 ranch data and economic profits were estimated from the opportunity costs of inputs and outputs. A policy analysis matrix was used to estimate financial-economic profit differences. Cattle ran ches in the 2 areas with sparse wildlife were the most profitable grou p studied. Profits were lower (but similar) for cattle and mixed ranch es in the areas with abundant wildlife. The financial profit was highe r than economic profit for all ranch types, thus creating production d isincentives. However, currency over-valuation and implicit taxes on e xported beef created greater production disincentives for cattle than wildlife producers. While the policy interventions negated the governm ent's stated objectives of increasing foreign currency earnings and be ing self sufficient in beef production, they did appear to have benefi cial range management consequences by encouraging fewer cattle on hist orically overstocked cattle ranches.