|
Objectives
 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.
Activities
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. |
| 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. |
Range
management
| 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. |
| 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. |
Herd improvement
| 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. |
| 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. |
Animal
health
| 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. |
| 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. |
Lessons learned
- 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.)
|
| Project information |
Total cost: USD 64.6 million, Livestock cost (as percentage of total):
71%
Beneficiaries: under the original project design, there were to be no individual
beneficiaries since all activities would be extended by the state or by
communally managed farms. Due to rural policy reforms in China two years
after start-up, the project was modified for implementation at the household
level. By project completion, it was estimated that short- and medium-term
loans had been disbursed to 18,000 individual households.
Project area: the project area consisted of eight counties in Heilungjiang
Province, Hebei Province and Inner Mongolia Autonomous Region.
|
| References |
Report and Recommendation of the President to the Executive
Board on a Proposed Loan to the People's Republic of China (1981).
Staff Appraisal Report: China: Northern Pasture and Livestock
Development Project (1981).
Mid-Term Review: China: Northern Pasture and Livestock
Development Project (1983).
Completion Report: China: Northern Pasture and Livestock
Development Project (1988).
Completion Evaluation Report: China: Northern Pasture
and Livestock Development Project (1989).
Multilateral Assistance and sustainable development
- The case of the IFAD North China Pasture and Animal Development Project.
Colin Brown, University of Queensland. International Association of Agricultural
Economists, XXI International Conference of Agricultural Economists, Tokyo,
Japan (1991). |
|
|
