The
main objective of the project was to increase supplies of livestock feed
through forage production on irrigated land. This was intended both to
improve yields and increase the livestock carrying capacity on natural
rangeland. The project was intended to serve as a first step in a large-scale
effort to modernize livestock production in northern China and thereby
increase the living standards of the population.
The appraisal report divided the project into seven components, as follows:
- pasture and fodder improvement;
- irrigation;
- provision of farm machinery;
- livestock improvement;
- processing facilities;
- training; and
- M&E.
Outcome
Owing to policy changes on the part of the Chinese Government (from rural development based on a commune management system to one based on household management), the project was significantly modified in terms of scope and objectives. In 1983, two years after start-up, an MTR was conducted and the project was readjusted from an extensive, large-scale mechanization intervention to one providing small-scale household loans to encourage pasture development and grazing management. After the economic reforms in 1983, the Government set profits as the main measure of operational success. This was generally considered to be beneficial as it made the directors of business enterprises financially responsible for the success of the plants they managed. The second phase of China's rural reforms, enacted by the Government in 1985-86, led to the project being redesigned yet again. The redesigned project placed emphasis on specialized households, technical service centres and large-scale pasture development schemes.
By the end of the project, some 20 000 loans had been disbursed, mostly to households or groups of households. Other major project results were in the area of pastures and fodder improvement. This component originally included intensive alfalfa and maize production, fencing, shelterbelt planting, silo construction and feed processing mills. After the MTR redesign, emphasis was shifted from the development of irrigated pasture to the improvement of non-irrigated pasture through fencing, light ploughing, seeding and demonstration of rotational grazing techniques.
Due to the changes in the Government’s rural policies, however, it is very hard to assess the extent of project impact. There is some controversy regarding the actual contribution of the project versus the effects of the Government’s policy reforms. Studies undertaken by the Australian Centre for International Agricultural Research concluded that the significant changes observed in project areas were not only due to the activities of the project, but that the rural policy changes enacted by the government had also played an important part.
Access to inputs and infrastructure
| At appraisal,
the inputs to be supplied by the project were farm machinery,
fertilizer and livestock. The farm machinery inputs were primarily
aimed at hay and fodder production. The arrangement at appraisal
was that the machinery would be provided to communes, which in
turn would lend them out to farmers. As the commune system disappeared,
the project began to lend the machinery to specialized households
that had been selected as models.
It was not originally intended to provide credit to individuals. However, following changes in the project design, the project decided to incorporate a credit programme. By project completion, 18 000 individual households had received short- or medium-term loans averaging USD 1 000. Loan recovery rates stood at 70% and were expected to rise to 80-90% once late repayments were received. Some recovered funds were relent in loans to new project recipients. The PCR does not specify the criteria for granting loans to individual households. |
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| Planned |
Achieved |
|
| Provide machinery
for silage production, alfalfa production and pasture improvement,
including 453 large tractors. Some of the machinery was new at
the time of project appraisal, either to China as a whole or to
the project areas. |
Only 136 of the intended
453 large modern tractors had been delivered by project completion.
Most of them ended up in machinery service centres and specialized
households. However, 323 small scale and walking tractors had
been provided in project areas. |
|
| The project’s range management activities concentrated mostly on pasture and fodder improvement. The project was to establish shelterbelts in all areas planted to fodder crops and on improved pastures in order to reduce erosion. The trees were also intended as a future source of timber. Planting was to be undertaken by commune members. In addition, the project was to establish a pasture research unit in Heilungjiang or Hebei Province. The main objectives of the unit were to identify the most suitable grass and legume species for each region; determine fertilizer and trace element requirements, investigate specific problems relating to pasture establishment (sowing, seed rates and seed inoculation requirements); and supervise grassland surveys of the various local communes. In the appraisal report, it was noted that the Government had undertaken to set up another pasture research unit in the event the unit supported by the project was found useful. |
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| Planned |
Achieved |
|
| Irrigate 16 760 ha of land in the project areas. Activities were to include a detailed land survey, mapping, construction of distributor canals, purchase of 10 diesel driven pumping sets and construction of structures for surface and sub-surface drainage of 12 840 ha of surface irrigation areas. In addition, 178 additional wells were to be drilled, 80 additional pumping sets for existing wells purchased, 489 portable sprinkler equipment sets procured and farm roads constructed over 3 920 ha of sprinkler-irrigated areas. Establish 51 400 ha of improved pasture, and sow selected pastures to perennial grasses and legume species. Most of the land was to be used for growing hay until it had been rehabilitated and the shelterbelts established. Ultimately, it was to revert to grazing in rotation with hay cutting to reduce the depletion of soil nutrients associated with continuous hay cutting. The hay from the improved pasture would be used to feed both cattle and sheep. Fence off 4 652 km of improved and vulnerable natural pasture in order to prevent grazing. Provide for the cultivation of 8 166 ha of irrigated alfalfa to produce hay for cattle consumption and 38 520 ha of irrigated maize, and for the construction of 2 039 silos, each of 200-ton capacity each, for silage storage. Establish and equip a seed farm to produce specialized seed under irrigation. The seed plant was to supply the needs of the project area and eventually those of other areas in northern China. Provide 75 person-months of training and foreign study tours, focused mostly around pasture and fodder improvement. |
The project introduced improved irrigation pasture on newly consolidated grassland in two project areas of Wenguite and Anda. It is not reported how many of the irrigation-related activities took place. After the MTR, the emphasis shifted from the irrigation of pasture to improving non-irrigated pasture through fencing, light ploughing, seeding and demonstrations of rotational grazing techniques. The planned establishment of improved pasture did not take place. After the MTR, most project areas introduced a lower intensity pasture improvement technology known as ‘semi-improved pasture’, which involved seeding extensive areas by plane. By project completion, 111 000 ha of semi-improved pasture had been planted. 10 584 km of pasture was fenced off. No information is available on the cultivation of alfalfa and maize, or on the establishment of the seed farm. The training component was increased to 171 person-months at the time of the MTR. By the end of the project, 124 person-months of foreign study tours had been undertaken. |
|
| Friesian-type dairy cattle
and artificial insemination techniques have been used on specialized,
milk-producing farms and native breeds used for beef production.
However, considerable effort has been devoted to upgrading these
breeds by crossing with imported European breeds. This strategy,
aimed at producing dual-purpose animals, seems appropriate to
northern China.
Under the traditional cattle and sheep production system, animals are managed in a simple, low-cost manner, resulting in low input levels. Productivity levels are depressed by the stresses of winter feeding and lack of housing, which cause weight loss and high mortality rates. |
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| Planned | Achieved | |
| Purchase 730 local dairy heifers for
the purpose of genetic upgrading.
Build four barns, 193 000 m² of animal shelters and four processing plants. |
Livestock services increased significantly
over the appraisal objectives. The project purchased 1 375
local dairy heifers, and built seven milk-processing plants, 13
feed mills and one wool-processing factory. Delays in setting
up the plants were attributed to quality-control problems owing
to the use of local, poor-quality machinery.
Although the types of animal shelters built by the project changed, the total area of shelter construction increased to 216 000 m². |
|
| While
most common livestock diseases are present in the project area,
they are easily controlled by vaccination and medication and
do not constitute a serious constraint on livestock production.
All the required vaccines and veterinary medicines are produced
in China and are readily available at the commune level. |
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| Planned |
Achieved |
|
| Establish 60 veterinary
centres; provide 27 dipping tanks. |
96 dual-purpose
artificial insemination and veterinary centres were built and
38 dipping tanks provided. |
|
- The number of cattle in the project areas increased by 20% during the course of the project as opposed to 12% in non-project areas, possibly as a result of increased forage supply. It is very difficult to implement a livestock reduction policy when strong incentives exist, or, as in this case, arise, for households to increase or maintain livestock. To be successful, such a policy calls for a clear implementation strategy with the participation of the target communities. Policy implementation may even then require parallel interventions; these should be formulated at the outset.
- The successful mid-course adaptation of project implementation to a very different economic system in rural areas emphasized the need for flexibility in project design, an effective M&E system, intensive supervision and evaluation.
- Public investments are long-term in nature and cannot be expected to yield high financial returns; commercial activities can be managed to provide attractive returns and ensure adequate debt servicing to meet loan obligations to IFAD. The proper balance between these developments is a matter for further consideration. Loan policies can be set to reflect particular development needs, both through allocations and imposed loan terms. Grants may also be considered to supplement loans.
- The project clearly demonstrates the need to devise alternative criteria for evaluating economic viability together with mechanisms for assessing the economic rate of return for environmental rehabilitation projects or components. The project’s rangeland rehabilitation activities not only conflicted with the maximization of household income in many cases, but also could not realistically be expected to yield the short-term economic benefit normally expected in investment projects under any production system.
- There is a need for careful monitoring of the distribution of project benefits among the population and of the environmental impact in ecologically fragile areas.
- The project has taken a number of innovative steps for using group action in credit, fencing and pasture management. Every consideration should be given to extending the use of groups in the future. Credit administration by groups clearly had lower administrative costs and this may prove important in the sustainability of credit activities after the project period. In addition, there are unexplored group possibilities for pasture management and for group ownership of large machinery and buildings.
- (All lessons are based on the findings of the completion evaluation report.)
