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Objectives
The main objective of the project was to increase the number,
productivity and quality of cattle, caraboa (water buffalo) and goats
in The Philippines, thereby augmenting the participation of smallholders
in livestock production as a means of improving their income and diversifying
on-farm employment opportunities.
Activities
- Establishment of a pilot scheme for milk production, collection, processing
and marketing within the smallholder sector.
- Livestock improvement through the provision of improved beef and dairy
cattle and encouragement for goat production.
- Establishment of backyard fattening and marketing facilities.
- Provision of cattle on credit to backyard milk producers and cattle
fatteners.
- Provision of equipment, transport and training facilities to strengthen
the organizational and institutional capacity of the state livestock
services.
Outcome
The project led to an increase in the demand for and consumption
of ultra high treatment (UHT) processed fresh milk and fresh pasteurized
milk. By the end of the project, the consumption of UHT fresh milk was
said to have doubled to about 10 million litres a year. The demand for
and the prices of milk products also increased. Project activities encouraged
three major producers to invest in dairy production and processing. The
project motivated the formation of farmer cooperative groups, and a number
of smallholder farmers joined larger medium-scale producers with the capacity
to provide management, operating capital and marketing support to form
small commercial operations. In addition, the training of project staff
proved productive and was a major factor contributing to project success.
However, changes in government policy and unfavourable loan
terms meant that the proposed credit scheme for backyard milk producers
and cattle fatteners was never initiated. Moreover, the achievements under
the livestock improvement component were limited due to policy changes,
budgetary constraints and problems with inter-institutional cooperation,
substantially reducing project benefits and dairy industry development.
The failure to implement the livestock improvement and cattle fattening
components contributed to a shortage of meat and animals for fattening.
It is estimated that by 1988 there were only 120 000 head of cattle in
the country, as opposed to 180 000 head in 1980 at the time of project
formulation.
Organizations
and people
| Planned
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Achieved
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| To strengthen public-sector
organizational and institutional capacity by establishing offices
and providing equipment, transport and training facilities.
To upgrade existing training facilities at the Dairy
Training and Research Institute (DTRI) and Central Mindanao University
(CMU) and establish programmes for training smallholders in dairy
management, pasture development, milk collection and milk processing.
New milk products and extension techniques were also to be developed.
To organize farmers into barangay (village)
milk associations. |
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Two milk zone offices
were established and equipped in Luzon and Mindanao, although only
limited numbers of vehicles were procured. A total of 54 man-months
of overseas training in dairy husbandry, dairy technology and dairy
industry planning were provided in Queensland, Australia. Consultants
in dairy technology, dairy production, animal health, economics,
breeding and computer services were recruited locally.
Training facilities at the DTRI and CMU were not upgraded
due to an administrative misunderstanding. The DTRI supported the
project by providing technical services, assisting in the organization
of a milk marketing cooperative and processing milk from the project
in its existing facility.
Farmers were successfully motivated to form cooperative
groups. |
Access
to inputs and infrastructure
| Planned
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Achieved
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| To provide funds for the
procurement of 6 200 cross-bred dairy cattle (of which 3 700 were
to be imported and 2 500 purchased from local sources).
To provide credit for the establishment of 40 backyard production
units, each consisting of two-three cross-bred milking cows.
To establish 3 500 backyard cattle-fattening units,
each unit fattening two male stock at any one time, and to procure
7 000 male cattle to supply to them. The project was to support
the provision of credit facilities by the Philippine National Bank
to enable beneficiaries to purchase the cattle. |
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A total of 2 400 dairy
cattle were imported, and a farm management advisor was recruited
in May 1984 for five weeks to assist in handling the first shipment
of heifers. However, only 328 cattle were procured locally. The
local dairy animals were distributed to demonstration units set
up specifically to show future smallholder dairy-farmers how to
handle the new enterprise.
Changes in government policy and unfavourable loan
terms meant that the proposed credit scheme for backyard milk producers
was never initiated.
The project procured 283 stock for the cattle-fattening
units. Due to financial problems, only 261 male calves born of project
cows were fattened by farmer cooperatives. |
Risk
management
| At project
appraisal, The Philippines imported 99% of its total consumption
of dairy products and 39% of its total consumption of meat products,
and the existing dairy processing industry was based on the processing
and repackaging of imports. Government efforts to promote and increase
smallholder milk-production were very unsuccessful due to the absence
of a traditional milk producing culture. Low production levels rendered
milk marketing facilities economically unviable. The major constraint
on the development of a viable smallholder dairy industry was the
existence of cheap milk imports. |
| Planned
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Achieved
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| To establish 85 village-based
milk collection stations.
To establish two milk chilling centres in Luzon.
To establish three milk processing plants at the DTRI
in Luzon, at CMU and at Cagayan de Oro, in Mindanao. These facilities
were to be used for the chilling and testing of milk and milk pasteurization
and processing into cheese curd and butter.
To procure UHT milk processing equipment. |
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Only 42 milk collection
stations were established, collecting milk from 143 of the 155 villages.
The dispersal of cattle in 155 villages as opposed to 85 led to
problems with milk quality, increasing the costs of collection for
processors and decreasing farm incomes.
Milk chilling centres were established at Trece Martires
City, Cavite City, Lipa City and Maraouy, but shut down in April
1986.
The milk processing plants at the DTRI and CMU were
never established. A plant was established at Alabang Stock Farm,
instead of at Cagayan de Oro. However, it ceased operations in April
1986 and is now idle.
No information is currently available on the procurement
of UHT processing equipment. |
Herd improvement
| Despite the
favourable climatic and physical conditions and the abundant forage
resources, the potential of dairy and livestock enterprises had
not been fully utilized. It was established at appraisal that the
lack of suitable dairy animals and the high cost of importing improved
breeds were key factors hindering the development of a milk production
industry. |
| Planned
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Achieved
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| To support the upgrading
of facilities at the National Artificial Breeding Centre at Alabang,
including the provision of accommodation for trainees, training
equipment, laboratory equipment and transportation. The project
also intended to procure and install liquid nitrogen plants with
the associated storage equipment at five centres.
To establish 135 artificial insemination field units,
the purpose of which would be to conduct artificial insemination
breeding programmes in about 20 selected villages and to supply
the programmes with transport and the necessary equipment.
To establish a pure-bred Brahman herd of 50 cows at
the Bureau of Animal Husbandry Livestock Farm in Masbate, with improved
pasture, farm equipment and additional fencing. The herd would produce
improved bulls for dispersal.
To purchase 200 local and 300 imported bulls in order
to facilitate the annual production and distribution of 100 improved
breeding bulls. Bulls were to be allocated free of charge to selected
farmers and would become theirs after three to four years if satisfactory
services had been made available to other villagers.
To establish facilities for the production-testing
of about 200-400 dairy cattle.
To encourage goat production and the consumption of goat products
and to strengthen extension programmes.
To establish a facility to investigate embryo-transplantation
techniques for possible use in future breeding programmes. |
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The National Artificial
Breeding Centre received 152 semen storage containers, two motorcycles
and other materials and equipment. It was also the only centre to
receive a liquid nitrogen plant.
Artificial insemination technicians were assigned
to 19 provinces, and 27 237 cows were inseminated - an 11% increase
in conception rates relative to 1986. The field units were provided
with eight motorcycles.
The proposed breeding herd of 50 cows in Masbate was
not established.
Under the bull dispersal programme, only 15 local breeding bulls
were purchased for distribution.
Facilities for the production testing of the planned
200-400 dairy cross-animals were established. The project provided
184 hectares of improved pasture, nine cattle sheds, one milk shed,
milking equipment, farm machinery and a motorcycle. A total of 200
pure-bred cattle were imported to start up the production testing
programme. However, due to heavy losses among the pure-bred animals,
it was decided to cancel the programme in 1986, and the animals
were distributed to farmers and institutions.
A total of 200 imported Anglo-Nubian goats (160 does
and 40 bucks) were purchased.
No information is available on the research into embryo-transplantation
techniques. |
Lessons learned
- Donors and co-donors should ensure that changes in governments or
in government polices do not adversely influence project implementation.
This can be accomplished by placing more emphasis on the development
of private-sector institutions capable of handling the implementation
process.
- Smallholder farmers may increase and diversify their incomes by including
milk production in their farming systems.
- The association of small commercial farmers with smallholders is an
effective means of involving the private sector in smallholder development
and allows smallholders to learn from commercial farmers.
- Assured credit and marketing arrangements are critical to the successful
establishment of small-scale producers.
- It is necessary to consider the issue of animal health when designing
livestock projects. Failure to ensure that imported animals had been
vaccinated resulted in losses.
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| Project information |
Total cost: USD 7.298 million. Livestock cost
(as a percentage of total): 67%. Duration: The project was approved
on 25 November 1981 and was to be implemented over a six-year period between
1982 and 1988.
Beneficiaries: the intended beneficiaries were 34 000 smallholders living
below the poverty line in Southern Luzon and Northern Mindanao. The project
targeted rural families with farms of less than 3 hectares and a medium-to-high
potential for milk and meat production |
| References |
Report and Recommendations of the President of IFAD to the
Executive Board, December 1981.
IFAD Project Completion Report, June 1988.
Asian Development Bank, Appraisal Report, October 1981. |
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