The primary objective of the project was to increase agricultural production on smallholdings by overcoming the draught-power constraint.
- 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. |
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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. |
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. |
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| 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. |
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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. |
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. |
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| 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. |
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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. |
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. |
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| 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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| 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. |
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. |
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- 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.

