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Activities
The main project components were:
- provision of credit for livestock development to small farmers;
- provision of credit for development of small-scale processing; and
- institutional capacity-building.
Objectives
The principal objective of the project was to improve small
farmers living standards by increasing the productivity of unused
marginal land through enhanced forage production and development of livestock
activities.
Outcome
During the five-year implementation period, 67 822 beneficiary
households were reached, exceeding the appraisal target of 50 000. The
project had a significant impact on farm household incomes. During the
1989-1994 project period, the average increase in participating farmers
incomes was 61.5%. The project was successful in establishing financially
viable small-farmer livestock enterprises through provision of credit
and support services for the purchase of livestock. The dairy cattle component
exceeded expectations. The number of households producing cows
milk exceeded appraisal targets, and the productivity of dairy cows increased
significantly. Average daily milk production was 4.7 litres per cow in
1989, rising to 9.0 litres in 1994. Dairy producers, cow and goat, did
not increase the size of their herds because of high market prices offered
for young female breeding stock by new project participants. The rabbit-wool
production enterprise was considered risky because of the instability
of wool prices; the number of rabbit-multiplier households remained low,
because many rabbit meat and wool producers bred their own replacement
and incremental stock.
The technical extension service played a significant role in the success
of the project. Extension services, including basic animal disease-prevention
inputs, technical advice, artificial insemination services and veterinary
drugs, were provided at a fee cost, which motivated technicians to improve
the quality of their services. The project established an effective targeted-credit
programme with good recovery rates and successful revolving funds. A significant
achievement was the introduction of ryegrass and white clover at higher
altitudes and the subsequent change in farmer attitudes to ryegrass.
Project management offices (PMOs) supplied credit very efficiently during
and after the project period. The recent restructuring of the rural financial
sector calls for a reorganization of the revolving fund through existing
rural credit cooperatives.
Organizations
and people
| Planned |
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Achieved |
| To support the establishment of PMOs
at provincial, prefecture, county and township levels.
To establish 106 livestock service centres in the project area
at the township level.
To support training of project staff, including specialist training
for senior officers in breed improvement techniques, pasture and
forage development, credit operations and project analysis.
To support rehabilitation and re-equipment of the Yaan
Training Centre, and training for individual farmers in production
technology and groups of farmers in processing and grading procedures.
To finance studies and surveys including:
- a technical and financial feasibility and design study for
renovation and expansion of Bazhong tannery;
- a marketing study to investigate demand for and supply of rabbit
meat in different forms in Sichuan and China in general; and
- a study of organizational possibilities for small-scale processing
facilities to determine the optimal type of cooperative association,
its responsibilities and its legal and financial position.
To provide technical assistance in field testing and recording
systems, Angora wool grading and marketing, breed improvement and
forage research.
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At closure, the project had established:
- 1 PMO at the provincial level;
- 3 PMOs at the prefecture level;
- 7 PMOs at the county level; and
- 106 PMOs at the township level.
The PMOs are operational and continue follow-up on
the use of revolving funds.
All 106 livestock centres were established at the township level,
including 47 in three northern counties to provide technical services
for ruminant husbandry, 13 in Yaan prefecture to support
ruminant and rabbit husbandry and 46 to support rabbit development.
Almost all project farmers signed technical service contracts with
the centres, which provided extension inputs for beneficiaries.
Technicians made routine farm visits and provided animal health
services; farmers paid an annual fee.
Training for project staff covered selection, examination and approval
of applicants, technical service skills, financial management and
monitoring. Study tours were organized for 69 project management
staff at all levels, on topics including:
- management of livestock development projects; Thailand, 7 staff;
- goat breed improvement and product processing techniques; Turkey
and Cyprus, 6 staff;
- dairy cow production management, breeding improvement and milk
product processing techniques; Canada, 6 staff;
- rabbit meat production management, breeding improvement and
product processing techniques; France, 6 staff;
- project management; USA and Australia, 5 staff;
- annual work plan and budget; Philippines, 19 staff; and
- dairy production and processing; Australia, 20 staff.
Training for beneficiaries included procedures and criteria for
participation in project activities, feeding and management of animals,
stock selection, breeding technology, prevention and treatment of
common diseases, milking, rabbit shearing, shed building and forage
planting.
Studies included marketing rabbit meat, insuring dairy cattle and
the proposed regulation of credit to joint households.
Local short-term technical assistance included livestock specialists,
researchers and a livestock and veterinary specialist.
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Access
to inputs and infrastructure
A major constraint on livestock development
in China was identified as peasant farmers limited access
to credit in the absence of savings and shortage of development
finance, particularly for small farmers. The target group is largely
located in mountainous and hilly areas that offer little potential
for development of cropland. Development of ruminants through utilization
of existing hillsides was considered a realistic choice for poor
marginal farmers. |
Planned |
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Achieved |
| To provide individual
credit, or shared credit to small groups of farmers for joint enterprises,
for the establishment and development of small-farm
livestock enterprises to:
- 11 650 cows milk producers;
- 6 500 goat milk producers;
- 14 000 goat meat producers;
- 7 500 rabbit wool producers;
- 8 700 rabbit meat producers; and
- 198 rabbit multipliers.
The project was to offer primary loans financed directly
from initial disbursement, and secondary loans financed from revolving
funds. Repayments and interest were to be paid into revolving funds,
from which additional credit could be made available for livestock
development. (See Livestock Enterprise Models
below.) |
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At completion, individual credit had
been provided to:
- 13 734 cows milk producers;
- 7 744 goat milk producers;
- 15 345 goat meat producers;
- 19 325 rabbit wool producers;
- 11 433 rabbit meat producers; and
- 241 rabbit multipliers.
Revolving funds continue to be operated by the PMOs.
No shared credit was disbursed, because farmers showed
little interest. This was attributed to reluctance to undertake
joint production activities with non-family members, recent emergence
from an enforced collective system and the problem of handling default. |
Risk
management
| Planned |
|
Achieved |
| To provide credit for township/community
processing facilities, to be owned by cooperatives of livestock
producers, including:
- 11 milk-powder plants;
- 22 chilling centres;
- 11 feed mills (7 to be associated with the milk powder centres),
with a truck each;
- 1 rabbit meat processing plant at Cangxi;
- facilities for storage and distribution of concentrated feed;
and
- modernization and expansion of Bazhong tannery, with machinery
and equipment for leather processing.
To support the formation of village-level producer
associations of a few households, with the objective of involving
them in simple processing and marketing of their goods. Credit would
be provided for the establishment of small-scale commercial enterprises
for marketing, grading Angora wool and smoking and preparation of
rabbit meat.
To establish a cattle-insurance fund, to be operated by the Bureau
of Animal Husbandry (BAH), to replace losses that could not be ascribed
to negligence. Farmers were to pay an annual premium of 2.5% of
the market value of lactating cows.
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Processing facilities established in the project
area included:
- 4 milk-powder plants;
- 4 milk collection centres;
- 10 feed mills;
- 1 rabbit meat processing plant; and
- 2 goat meat processing plants.
These facilities marketed much of the milk and meat
produced by local beneficiaries.
A rabbit-wool grading plant was established at Cangxi, using the
revolving funds and self-financing funds. It sold wool to the provincial
foreign-trade corporation through the livestock centres, which purchased
the ungraded wool from project farmers. All the processing facilities
were established by local animal-husbandry bureaux; none were run
by the farmer associations.
Almost all dairy farmers participated in the insurance scheme.
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Livestock production
Poor animal-husbandry practices are
among the major causes of low livestock performance in the project
area. Livestock sheds are often poorly ventilated, lack exercise
areas and in many cases flooring is of poor quality. Hygiene is
poor because animals are housed so that manure could be collected.
Care of animals is generally poor. There are five breeding stations
and five breeding farms in the project area, but their contribution
to increasing the supply of improved livestock breeds is minimal.
The main sources of livestock fodder include natural
vegetation, crop by-products such as stover, halms, chaffs or uneaten
vegetables and low levels of concentrates. The quantity of feed
is adequate but quality is poor, particularly in winter when animals
are fed on crop residues. The nutritive levels of these residues
are too low to maintain animals, resulting in poor yields of milk,
meat and wool. Major constraints on forage and fodder development
include:
- lack of a proven technology for improved forage production;
and
- lack of trained and experienced staff to assist farmers in
developing and maintaining sustainable forage and fodder resources.
The project therefore supported forage and fodder
development, with the aim of meeting the seasonal livestock demand
by planting good-quality grass on cultivated and uncultivated land.
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| Planned |
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Achieved |
| To finance research into breed improvement.
To provide artificial insemination equipment, including two liquid
nitrogen containers, for 34 centres involved in cattle programmes.
To provide support for pasture development research programmes,
including:
- introduction and testing of new species and varieties;
- trials of annual fodder for use on agricultural land; and
- forage development trials to investigate fertilizers, seed
multiplication and importation of seeds and inoculants.
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Studies were carried out on techniques of maintaining
dairy animals, development of standardized animal sheds and design
of rabbit hutches. The Animal Breeding Research Institute in Chengdu
multiplied improved strains of meat rabbits and evaluated the breeds
and their crosses for meat production, providing improved breeding
stock to rabbit multipliers. Research into breed improvement, however,
was largely restricted to creation of a computer data bank. Data
collection was limited to large governmental breeding stations,
excluding small farmers; no evaluation of the data was attempted
in terms of selecting improved breeding animals.
The Sichuan Provincial Animal Husbandry and Veterinary Research
Institute in Chengdu undertook the following:
- Research Programme for Extension of Ammoniated Fodder; and
- Study and Extension of the Ensilage of Maize Stalks for Project
Farmers.
Development of pasture in marginal areas was in general unsuccessful.
Forage development was restricted to trials with varieties of ryegrass
and strains of white clover. The two forages were found to be unsuitable
for marginal areas.
Failure to implement forage research has been attributed to lack
of technical knowledge, inadequate technical assistance and farmers
unwillingness to commit resources to this type of development, where
benefits are uncertain.
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Lessons learned
- Key elements for the success of this project were the following:
- motivated and capable management at all levels and the strong
institutional structure in China;
- farmers deep interest in project activities;
- utilization of surplus labour, especially women;
- improved utilization of marginal lands in terms of production
and the environment;
- integration of production, processing and marketing; and
- a sound, comprehensive and workable monitoring and evaluation
system.
- Beneficiaries should participate more in determining the type of
credit most relevant to their needs to ensure their commitment and the
sustainability of project activities.
- Ruminants were able to utilize low-quality natural vegetation in
marginal areas. Dairy cows could eat low-quality forage, but did not
perform well on it.
- This project promoted rabbit production as a successful income generating
activity for poor farmers and especially for women. Rabbit production
suits well to small farms with few assets. These enterprises need low
initial investment and light maintenance work
Livestock enterprise models
1. Cows milk producers enterprise
Farmers would purchase one in-calf heifer and participate
in an insurance scheme to replace losses of animals bought from project
resources. BAH would assist farmers in procuring dairy cattle.
2. Goat milk producers enterprise
Farmers would purchase five young pregnant females. Other
investments would include a building with a slatted floor, an exercise
yard and credit for forage development and simple equipment. The flock
would be built up to ten milking females four years after starting the
farm. Breeding methods would include artificial insemination and natural
servicing.
3. Goat meat producers enterprise
Participating farmers would purchase five females and a
share in a male. Additional investment includes simple housing, forage
development and equipment. BAH would assist farmers taking up goat milk
or meat production with procurement of initial breeding animals.
4. Rabbit meat producers enterprise
Farmers would purchase five females and one male as part
of the initial investment; additional investment included a rabbit shed,
rabbit cages and the development of forage on 0.07 ha of arable land.
Successful producers would be selected as multipliers of breeding stock
and would purchase 30 females and 5 males from the Animal Husbandry and
Veterinary Research Institute in Chengdu, supplying the offspring to rabbit
meat producers.
5. Angora wool producers enterprise
Five female rabbits and one male would be provided as part
of the initial investment; other items would include a 40-metre rabbit
shed, 45 rabbit cages and seeding of 0.07 ha of arable land for forage.
The number of rabbits used for wool production on individual farms would
be stabilized at 43 females and 2 males. About 125 successful rabbit producers
would be selected as multipliers of breeding stock and would purchase
30 females and 5 males from the institute at Chengdu to supply offspring
to rabbit wool producers.
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| Project information |
Total cost: USD 34.7 million. Livestock cost (as percentage
of total): 61.1%.
Duration: Implementation of the project began in 1989 and
ended in 1995.
Area: The project was located in eight counties of Sichuan
Province, three in the Yaan prefecture - Yaan, Yinggjing
and Hanyuan - and five in Guangyuang and Daxian prefectures - Xuanhan,
Bazhong, Pingchang, Cangxi and Jiange.
Beneficiaries: The project targeted about 50 000 farm families comprising
225 000 people with extremely low incomes living in remote areas with
limited arable land. |
| References |
Report and Recommendations of the President to the Executive
Board, November 1988.
Project Appraisal Report, July 1989.
Project Mid-Term Review Report, March 1992.
Project Mid-Term Evaluation Report, October 1992.
Project Completion Report (Provincial Project Management
Office), January 1995.
UNOPS Project Completion Supervision Report, May 1995.
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