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Objectives
The primary objective of the project was to increase agricultural
production on smallholdings by overcoming the draught-power constraint.
Activities
- Provision of credit facilities and support for the procurement and
distribution of cattle.
- Provision of support for institutional development.
- Upgrading of the cattle transfer infrastructure.
- Provision of support for the development of a forage improvement programme
through the development of an internal monitoring system.
- Provision of technical assistance and programme support.
- Enhancement of research into Jembrana disease.
Outcome
The project enabled poor smallholders to acquire breeding
cattle/draught animals. This opened up more land to cultivation, raising
the agricultural output and household incomes of the project beneficiaries.
Project support led to the evolution of a well-knit and coordinated organizational
structure that enhanced effective communication. Farmers' groups were
created and served as a vital tool in project implementation and knowledge
transfer. A comprehensive monitoring and evaluation system was developed,
together with an effective quality control procedure that allowed poor-quality
cattle breeds to be rejected before shipping.
The project's introduction of a viable credit-in-kind system
was crucial to ensuring widespread participation. It allowed smallholders
to obtain cattle at very favourable terms, without burdening them with
the necessity of income generation in order to repay the loan. The Satuan
Tugas (SATGAS) teams played a key role in the delivery of cattle to the
distribution areas, the provision of animal-health services and the two-way
transfer of information between beneficiaries and project management.
Project support for civil works helped to minimize, during cattle transfer,
the potential risks of high mortality due to disease and stress. The support
given to research into Jembrana disease enabled the identification of
the causal organism and the formulation of a control strategy.
Access
to inputs and infrastructure
| The Government
of Indonesia had initiated a transmigration project, encouraging
the voluntary movement of people from overpopulated and overexploited
land in the inner islands to the less developed areas of the outer
islands. However, programme implementation was limited by constraints
such as the lack of draught animals in the new environment. Cattle
ownership was therefore identified as crucial to the improvement
of productivity, the maximization of land utility and the augmentation
of smallholder incomes. Attempts to provide draught cattle under
various governmental programmes had proved unsuccessful. |
| Planned
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Achieved
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| To procure cattle from
domestic sources on a continuous basis and distribute them in the
outer islands.
To provide credit facilities for a credit-in-kind
system that would allow poor smallholders to acquire cattle on favourable
terms without imposing the burden of cash-generation for repayment.
Farmers were expected to return two offspring to the project for
redistribution five years after the date of receipt.
To provide infrastructure for cattle transfer through
the establishment of quality control centres and the construction
of quarantine stations and holding yards. |
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In Phase I, a total of
52 410 cattle (exceeding the appraisal target by 16.5%) were procured
and distributed to 46 572 farmers in the five provinces of Sumatera.
In Phase II, 84 150 cattle (100% of the target) were procured and
distributed to 76 500 farmers in the five provinces in Sumatera
and three provinces in Sulawesi. However, the sites selected for
cattle distribution (predominately upland farming areas) were inappropriate
due to poor soil conditions and exposed the cattle to nutritional
risks.
Beginning in 1986, 61 175 offspring were redistributed
to 53 205 farmers. A total of 58.7% of the farmers who had received
cattle under Phase I and 16.6% from Phase II had repaid their loans
by July 1994. The credit-in-kind system was embraced with great
enthusiasm, resulting in increased participation. However, the repayment
of loans was compromised by the distribution of poor-quality animals,
the selection of sites with unfavourable agro-ecological conditions,
poor animal-husbandry practices, disease outbreaks and a lack of
land for forage development.
Under Phase I, funds were made available for the construction
of livestock-handling facilities, holding grounds and quarantine
centres. Inspections found the facilities to be solid and spacious,
with the exception of dipping facilities, which were judged to be
too small. Due to land shortages, the sites chosen were not always
optimal. In Phase II, fewer funds were allocated since most facilities
had already been constructed. Eight holding grounds and a quarantine
station were upgraded. Much attention was given to the provision
of feed storage facilities and water supplies, reducing cattle losses
related to stress and inadequate watering. |
Organizations
and people
| The Government
of Indonesia implemented its livestock development polices through
the Directorate General of Livestock, which concentrated its initiatives
on the improvement of services and infrastructure through the provision
of seed, fodder and breeding stock, artificial insemination, disease
investigation and quarantine. At appraisal, it was recognized that
there was a need to strengthen and upgrade the institutional structures
of the existing animal service. |
| Planned
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Achieved
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| To strengthen livestock
extension services at field level through the establishment of SATGAS
rural extension field workers. The SATGAS teams were to consist
of a veterinary officer, an animal husbandry officer, a forage agronomist
officer and a support staff member.
To provide essential staff training.
To provide vehicles.
To provide consultancy services responsible for project
management support and coordination. |
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By the end of Phase II,
582 SATGAS teams were operating in the field. These teams efficiently
conveyed information, training and technology to the beneficiaries
and aided in the establishment of farmers' groups led by key farmers.
They also ensured the effective distribution and redistribution
of cattle, provided extension and animal health services and organized
and recorded the credit activities. However, the expansion of the
project reduced the ability of SATGAS teams to carry out other technical
and advisory work. This slowed the process of loan documentation
and meant that less time was spent on data collection and administration.
Moreover, the shortage of qualified veterinary officers limited
the animal-health expertise of the teams.
A total of 37 project management staff received a
12-day course in management, project organization, monitoring and
evaluation, and problem analysis, and 28 middle-to-upper-level staff
received overseas training. A total of 203 SATGAS team members attended
an 80-hour course, and 563 key farmers attended a 40-hour course.
However, it was noted that the transmission of knowledge and information
from key farmers to group members was inadequate.
A total of 192 motorcycles and 71 vehicles were provided
in Phase I, and a further 550 motorcycles and 123 vehicles in Phase
II.
Both local and expatriate consultants were employed
in technical and managerial roles. |
Livestock feed
| Inadequate
nutrition was identified as the single most important constraint
on cattle production in Indonesia. Forage production improvement
had, in the past, been given a low priority in government livestock
development programmes. Due to a lack of land, smallholders rarely
planted forage crops and for cattle fodder relied on crop residues
and grass collected from the roadside. |
| Planned
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Achieved
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| To develop forage seed
production by providing participating farmers with credit in the
form of seedlings, seed, fertilizer, herbicides and insecticides.
Loans were to be repaid in the form of forage seed sale to the project.
Legume species to be produced included leucaena leucocephala,
siratro and stylosantles.
To introduce fodder production in cattle-distribution
areas. |
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Seed and plants were distributed
to a total of 857 farmers, leading to the formation of seed-producing
groups. Of the proceeds from sales, 50% had to be placed in a designated
bank account, so that farmers learned about money, savings and banking
services. However, the demand for seed decreased as cattle beneficiaries
in the distribution areas began to grow their own seed and rely
more on forage readily available on public grazing land and roadsides.
Grass seed production of species including setaria,
splendida, elephant grass and brachiaria decumbens was attempted.
Mixed farming systems aimed at improving the sustainability of the
dominant cropping component, while also securing forage for livestock,
were designed and implemented in the distribution areas. |
Animal health
| The Government
made veterinary services and drugs available free of charge to all
cattle owners in Indonesia and enforced disease control through
vaccination and quarantine. This inhibited the development of commercial
supply, resulting in shortages. However, there were no effective
means of control for diseases such as malignant catarrhal fever
and Jembrana disease. Prior to the project, research on Jembrana
disease had been ongoing for some 20 years with little success.
Malignant catarrhal fever is carried by sheep and has no known cure.
As a result, only sheep-free areas received cattle under the project.
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| Planned
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Achieved
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| To provide drugs for disease
control.
To establish field services to improve animal health
in the distribution areas.
To support the Bali Cattle Disease Investigation Unit,
established in 1982 primarily to identify the causative organism
of Jembrana disease and develop a disease-control methodology and
vaccine. |
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Prior to shipment, cattle
were quarantined in stations of the Directorate General of Livestock,
vaccinated against haemorrhagic septicaemia and anthrax, treated
for trypanosomiasis and tested for brucella abortus.
The SATGAS teams were set up specifically to deliver
animal health services to farmers in the distribution areas. However,
the shortage of veterinarians caused the number of veterinary officers
to be reduced to one for every three teams. In addition, the SATGAS
personnel lacked practical experience in diagnosis and symptom recognition
and were therefore unable to take appropriate measures.
By 1989, the Bali Cattle Disease Investigation Unit
was fully equipped and functional. By 1991, useful work had been
done in characterizing the disease, identifying the causative agent
and developing diagnostic procedures, control methods and a vaccine.
However, the vaccine developed is costly to produce and largely
unstable. |
Lessons learned
- The phasing of large-scale projects may increase the likelihood of
success, allowing for the re-evaluation of project objectives and implementation
procedures, as well as the identification of project constraints and
errors, which can be corrected in the second phase.
- An effective two-way-communication process is vital to project success.
- Adequate remuneration and the provision of housing, transport facilities,
equipment and training contribute to the morale and motivation of project-implementation
staff and improve their performance.
- It is essential that funding organizations should coordinate their
intended activities with those of existing projects at the formulation
stage. Too many donors were competing for the same breeding stock, which
resulted in shortages and the purchase of poor quality immature cattle.
- Studies of the agro-ecological conditions of the intended project
site and an environmental impact assessment should be conducted prior
to the formulation of project objectives in all cases. Poor soils had
a negative effect on animal health and performance, and the land opened
to agriculture by the increase in draught-animal power was also exposed
to erosion.
- The sustainability of project activities and the compatibility of
the various components should be examined at the design stage. Post-project
mission reports show that, after loan repayment, some farmers sold off
the animals they had received from the project.
- A credit-in-kind system is highly suitable for borrowers with sporadic
cash flows.
- Beneficiary farmers who receive livestock should be sensitized on
ways to maximize the utility of the animals. The livestock used for
draught power could also have been used as a source of protein, enhancing
household food security.
- The need to engage a qualified consultancy agency should be emphasized
before the loan is signed, and, given the importance of project monitoring
and evaluation, donors should play a major role in agency selection.
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| Project information |
Total cost: USD 39.825 million. Livestock cost (as a
percentage of total): 63%. Duration: The project was approved on 6 May
1980 and was to be phased in two parts. The first phase of the project
was initiated in 1981 and completed in 1987, while implementation of Phase
II lasted from 1988 to 1994.
Beneficiaries
The project targeted approximately 45 000 smallholders with
cultivable land that was uncropped due to the lack of labour and draught
power. Phase I targeted smallholders in Southern Sumatera, while Phase
II targeted smallholders in both Sumatera and Sulawesi. |
| References |
IFAD Post-Evaluation Report, March 1995
Project Completion Report (Phase I), Institute of Social
Studies, Indonesia and ENEX Consortium, New Zealand, 1988.
President's Report and Recommendations to the Executive
Board, 1990.
IFAD Mid-Term Evaluation Report, 1993.
IFAD Appraisal Report, 1980.
Staff Appraisal Report, April 1985.
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