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 cow’s 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

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 Ya’an 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.

 

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 Ya’an 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.

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

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 cow’s 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.)

At completion, individual credit had been provided to:

  • 13 734 cow’s 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.

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.

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.

Planned   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.
 

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.


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. Cow’s 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.

Valid CSS! Valid XHTML 1.0 Transitional