A Caganer is a small statue found in Catalonia, in neighbouring areas with Catalan culture such as Andorra, and in other parts of Spain, Portugal and Italy. The figure is depicted in the act of defecation. Caganer is Catalan for "sh--ter".
In Catalonia, as well as in Spain and in most of Italy and Southern France, traditional Christmas decorations consist of a large model of the city of Bethlehem, similar to the Nativity scenes of the English-speaking world but encompassing the entire city rather than just the typical manger scene. The caganer is a particular feature of modern Catalan nativity scenes, and is also found in other parts of Spain. Accompanying Mary, Joseph, Jesus, the Shepherds and company, the caganer is often tucked away in a corner of the model, typically nowhere near the manger scene.
The Caganer can also be found in other European cultures:
In Dutch / Flemish : Kakkers / Schijterkes ("Pooper"/"Little Pooper")In French : Père la Colique ("Father Colic")In German : Choleramännchen or Hinterlader ("Little Cholera Man" or "Breech-loader")
From: http://en.wikipedia.org/wiki/Caganer