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Folder Title: Working Paper - Livestock - Shandong Agricultural Development Project - China - June 7, 1988

Folder ID: F17061

Dates: 6/7/1988

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Ari$rv,i Olhe,:1;,061 28881B ;· . . .. ,., . R1990-099 p . t China_ June 7

·: . A~ • ultural Development roJec -. P r Livestock - Shandong ""'rte Working ape -1988

DECLASSIFIED WBG Archives

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Report No.: 61/88 CP-CPR 20 WP 4

Date: 7 June 1988

CHINA

SHANDONG AGRICULTURAL DEVELOPME NT PROJE

LIVESTOCK

WORKING PAPER ASI . I SE~

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FAQ/World Bank Cooperative Programme

Investment Centre

FOOD ANO AGRICULTURE ORGANIZATION OF THE UNITED NATIONS

ROME

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CHINA

SHANDONG AGRICULTURAL DEVELOPMENT PROJECT

' LIVESTOCK

• A. J.ntroduction

- Approach to Preparation - Degree of Preparation Reached - General Observations

• B. Background

- ·Main Features of Sub-Sector Description of Project Areas

- Physical Resour.c,es and Climate -

' Institutions

C. Rationale

- Constraints and Opportunities - Design Consid~rations:

I ( a) Rabbits (b) Broiler Chickens (c) Pigs (d) Sheep (e) Beef Cattle

' D. Project Description

- Organisation and Management - Financial Analysis

• E. Issues

- Remaining Preparation Work

F. Criteria for Subsequent Studies

• CHART 1: Organisation Chart

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Working Paper 4 Page 1

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TABLES

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

ANNEXES:

A. B. c. D.

TAB LE OF CONTENTS (cont'd)

Shandong Province Livestock Population Trends Shandong Province Animal Feed Trade

Working Paper 4 Table 2

Supply of Concentrated Feed in 1986 in the Project Area Total Avai lable for Coarse Feed in the Project Area County Rabbit Breeding Farm Model Township Rabbit Multiplication Farm Model Rabbit Meat Product~on Household Model Angora Hair Production Household Model County Pig Breeding Farm Specialized Pig Household Model Pig Fattening Meat Rabbit Abattoir Model Summary of Results of the Economic Analysis

Rabbit Production and.Processing Pig Production and Marketing

I Poultry Production and Marketing Market Conditions and Plans for Animal Husbandry Proposals

ATIACHMENTS:

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12 .

-13.

Meng Yang County Lai Wu Prefecture Chi Ping County Fei County Shang He County Wu Di County Zhanhua County Shen County Teng County Yi Nan County Yi Yuan County Ping Yi County Yi Shui County

) ) ) ) ) ) Animal Husbandry Development Project Plan ) ) ) ) ) ) )

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CHINA


LIVESTOCK

A. Introduction

Approach to Preparation


1. Preparation of the livestock componeAt has been carried out at county level aod individual ,county feasibility studies prepared in Chinese. The county planni ng teams have been given central government set objectives to encourage the deve lopment of grass eating animals, to encourage development in areas with low per capita income and to encourage processing of county livestock products in county areas.

2. The provincial planning authorities have ~ded objectives of their own, to maximize foreign exchange earning capacity, to rehabilitate existing facilities rather than build new ones and to maximize use of central government grant funds fo,r deve 1 opment of poor areas. The pr·ovi nci a 1 planning authorities have also apparently provided some budget guidelines and indications of the type of investment to be considered, breeding farm~

· feed ~ill, processing plant, etc.

3. Each county's planning team had described the county's resources and then proposed an integrated series of sub-projects from breeding and production through to processing. The livestock selected for developmert has differed between counties and the reason for this is not always apparent from the report but genera 1 lly the primary objectives have been addressed although not all animal . breeds proposed are grass eating and not all districts are among the poorest • . The techniques proposed and yields projected are general ly conservative and the planned organisation and management is in line with current policy towards incentive ·based non-state enterprise.

Degree of Preparation Reached .

4. Each county has pr,esented a report and these are commented on individually in the Attachment s to this Paper. There is considerable variation in standard and dietail of report between counties and although the Shandong Province Planning Commiss ion has studied and summarized eight of these, evidently some of them have been modified again and al l of the studies require some additional work before appraisal.

5. Some sub-projects have been detailed almost to the point of preparation but many others, par ti cularly at the processing end of the integrated chain, have only been identified and cannot be appraised in their present form. The genera l criteria to be met by studies for indivi dual subprojects by type are given in Chapt er V.


General Observations

6. The most general problem with the reports at this stage of their preparation lies with marketing. Each county has addressed the market demand for end products, mostly by reference to a study called 11 Domestic Animal Husbandry to the Year 2000" by CAAS or Forecasts by the China Foreign Economic Trade Consulting Company using "Trend Prediction Analysis 11

• The mission has not been provided with the basis of these studies and they are not sufficient by themselves to demonstrate secure markets in the case of end products. Market aspects of each type of sub-component are discussed in Chapter IV.

B. Background

Main Features of Sub-Sector

7. Livestock production in agricultural areas in China is normally a by-product of farming activities and stock are kept with multiple objectives: the vast majority are pigs (88% by carcase wt.) and poultry {8% by carcase wt.). which depend for food on crop by-products and household scraps with varying amounts of supplementary oil cake or grain, and produce meat/eggs and dung. Large animals utilize coarser crop stovers and grass, producing draught power, meat, hides and dung. Sheep and goats utilize a greater percentage of naturatl grass and are more likely to be found on extensive grass or shrub wastelands, producing wool/hair, meat, hides and smaller quantitites of colle!ctable dung. Rabbits occupy a production· niche between poultry and ruminants and are efficient converters of better quality coarse feeds with some proteiin supplementation into meat/hair and dung . Animals are traditionally ke!pt by part-time family labour and the limitation on herd size is usually a function of by-product feeds available at farm level and available family ·1abour.

8. Since the introduction of the responsibility system the demand and price of livestock products has increased significantly. <1> Additionally the movement of a lot of farm tractors into the sh9rt distance haulage business (fuelled by a construction boom in country areas) has increased the demand for cattle for farm draught power while leavi ng the demand for some road based animal draught power, horses, donkeys, etc . , somewhat static. Increases in crop and consequent crop by-product production also resulting from the change to the respons ibi l ity system, has allowed an increase in ruminant livestock numbers in response to demand, although this varies between regions. As the income elasticity of demand for meat is greater than that for grain, livestock consumption and production is likely to continue to rise in importance as China's development continues and GOC policy is to encourage development of livestock production where resources permit.

9. Livestock production in Shandong province has responded to these market pressures somewhat selectively depending on local feed resources . <2> Mission observations on this and previous visits suggest that Shandong

<1>

<2>

A discussion of the causes of these increases is contained in the World Bank China Livestock Sector Study 6589-CHA, January 1987 pp.6-9. Figures on feed availability in individual project counties appear in the attachments to this paper.

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suffers from significant shortages of traditional crop by-products and grass duri ng and immediately follo,wing the w1nter. Any delay in opening rains causes significant weight loss and actual stock losses . It i s apparent that further increases in aggregate stock numbers wi ll need to come from incremental feed productic1n or by greater use of grains and oil cakes in ~nimal feeds . This is possi ble for Shandong as , unlike China as a whole, it is an exporter of corn atnd animal feeds (Table 2) . Shandong province was estimated to be 158% self-sufficient in quality feed for l ivestock in 1984, <1> fif th out of 29 provinces, suggesting that Shandong has a competiti ve advantage in intensive livestock feed compared with defic i t provinces .

10. The utilization of this feed resource in intensive livestock production in Shandong wi ll be rel ated to competitive marketing advantages and the ratio between concentrate feed prices and livestock product prices. Shandong does have some intrinsic marketi ng advantages both for export to other provinces because of ·its location i n the main Beij i ng-Tiajin-Shanghai Railway corridor <2> and internally because of · demand from industria l workers (Shandong was fourth in industrial output in China in 1984) . <3> The feed price: l ivestock product price ratio is i nf luenced by State feed .subsidy and product pricing policie:s. These have the objective of stabi liz ing meat prices in cities, part icularly for pork and pou ltry . The effects of these subsidies are complex. <4> They have least effect with l ivestock not normal ly fed grai n such as ruminants and rabbits and most with intensively fed lean meat ~igs. Province livestock population trends indicate that these factors have 'operated 1o the detriment of pig production in Shandong. This may have contributed to the apparent surplus of grain and concentrate feed. This problem can be addressed at central level by gradually reducing subsidies so producers and processors obtain a clearer and quicker idea of changing supp.ly/demand factors . or at local level by planning production/process i ng investments for maxi mum production efficiency and to take advantage of subsidies.

Description of Project Areas

11. The project involves livestock development in two distinct areas. 5 counties, Chi Ping, Sheng le, Shenx ian, Zhanhau and Wu Di in the Tuhai River Basin and 8 counties Yi Shul, Ping Yi, Yi Yuan, Teng, Yi Nan, Meng Yin, Fei

· Xian and Lai Wu in the Yi Meng Mountain Region.

<1> <2>

<3> <4>

World Bank Livestock Sector Study (Annex 3, Table 5. ) This advantage is limited at present as access to rail and transport is restricted and free market products move in more expensive trucks. China Statistical Year Book 1986 • Described in the World Bank Livestock Sector Study and summarized in the Executive Summary, paras.5-7 •


Physical Resources and Climate

12. The climate of the Tuhai River Basin is described in the Irrigation and Agricultural component working papers. Livestock development mainly i nvolves production from natural and developed pastures in sandy and sali ne wastelands along old river beds and near the coast around the mouth of the Yellow River. The climate is cold and dry in the winter and is often dry in the spring. Most growth occurs in the short monsoon season in July and August when 54% of the annual average rainfall of 580 mm occurs . Rainfall is very variable with a 230% va.riation between the driest and wettest year. This and the cool to cold winter means an emphasis on stored animal feeds . The main crop by-products result from corn, wheat, peanuts, cotton, sesame and vegetables .

13. The Yi Meng Mountain Region lies south-west of the Tuhai River Basin. The project areas lie! between 100 metres and 500 metres and are slightly wetter with an annual rainfal l of 720-860 mm per annum with a simi lar vari ation and distribution. The soils are free draining sand or degraded l imestone and usually showing rapid erosion from sandstone or limestone hills that rise tc, 750 metres i n most areas. Livestock production is based on supplemented crop by-products with some grass from road and hillsides in the summer and autumn. The main crop.by-products avatlable from local farms are corn stovers, wheat straw, peanut hay and s~eet potato leaves as well as oil cakes .. The province reports the availabi lity of feed in the project area in 1986 to be about 2.8 million tonnes (Tables 2 and 3). Assuming the dry matter yie'ld of this feed to average 85% and the daily consumption of feed to be about 2% of live weight in dry matter equivalent feed, the carrying capacity of the project area can be calculated to be about 1.3 million LAU, compared with present (1985) stock numbers of 404,000 LAU. These figures probably exaggerate actual feed available , particularly coarse feed, due to access problems and wastage and of course it i s highly seasonal.

Institutions

14. The livestock industry in the project area is assisted by the County Animal Husbandry Burieau under the guidance of the County Planning Commission and the technical direction of the prefecture, under the provincial and State Animal Husbandry Departments of the Ministry of Agriculture.

15. Livestock enterprises can be owned by households as part of their farming activities, specialist households for specific types of livestock production, county or provincial enterprise companies or state farms. Credit for enterprises comes from the Agricultural Bank of China and sometimes specific grants or very low interest loans are provided through the county or prefecture government.

C. Rationale

Constraints and Opportunities

16. Shandong province along with other regions in China development of Animal Husbandry in line with State consideration of the growing demand for livestock products . Shandong and some project areas have limitation in supp ly even with regard to lower quality but essential coarse feed .

has encouraged policy and in Some areas in of animal feed , In some areas

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the limitat ion can be overcome by pasture improvement in wasteland and in other areas project activities in agriculture and irrigation will result in increased cropping with consequent ial increases in by-product availability.

17. Shandong is well provided with rail li nks to principal markets in Tiajin and Shanghai but access to rail transport is limited and not generally ava i1 ab 1 e to pri va.te enterprise. Road transport is more expensive and roads to some project areas are congested . This constrains the movement of some products in and ou1t of Shandong and some products within Shandong. Shandong contains a lot of industry spread among the large coal and oil deposits that are being e!xploited in the project area. These create local demand for livestock products.

18. These transport constraints and market oppbrtunities mean a need exists for more processing capacity in some local production areas. Local grain and other feed surpluses now transported and sold out of some areas can be milled and sold or converted to livestock , and in turn processed and consumed locally or exported (in reduced volume). Local processing can thus both increase returns to producers and reduce costs to consumers through savings in freight. <1> County based processing facilities are usually smaller than more central'ized facilities but there are significant savings in management costs directll (and indirectly through clearer lines of responsibility) that result from the county base and smaller size, and these offset the economies of sca·1e possible with larger centralized units.

Design Considerations

19. Each' county in its feasiblity study has sought to maximize ifs. resources for the benefit of producers and the county government. Different livestock and different 1processors have different design considerations. These are summarised below for each type of product or process proposed under the project.

(a) Rabbits

20. Most counties have chosen rabbits as a form of livestock production suitable for investment in their area. Rabbits are the most efficient converter of high cellulose feed of all farmyard animals. Most Ch i nese farmers have access to feed suitable for rabbits from their vegetabl e growing and cropping activities: chickens and pigs do not compete for some of this feed thus providi~g farmers with more overall production from total feed than the more selective pig and chicken. Those farmers that do choose rabbit production as a sideline or a specialized enterprise discover constraints that require a~sistance or service from special ists. Important among these are:

i) Access to good breeding and production stock

Good production is only possibl e from we l l bred stock. Meat rabbi t producers benefit greatly from access to hybr id breeding schemes (see Annex A) . Hair rabbit producers require access to wel l bred breeding stock and would benefit from access t o f emales ready for

<1> A discussion on t1ransport effects appears in the Wor ld Bank Livestock Sector Study , p.86 .


hair production rather than conducting their own breeding. Farmers identify access to i~ood breeding stock as a major constraint.

On small ~production units in-breeding is difficult to avoid and access to good imported stock and the ability to maintain large lines of animals for selection is impractical.

Each county interested in rabbits has proposed investment in rabbit breeding and multiplication farms. Access to feed is a problem for these units and most counties have also sug~ested i nvestment in feed units (see be low) to provide t his. The facilities are to be owned by county li vestock enterprises and are therefore to be run at a profit. '

i i) Access to feed pre-mixes and feed processing facilities

Although rabbits can utilize (actual ly need) some high fibre feed in their diet this often needs some processing to be palatable and to avoid disease. Some producers need access to high protein supplementary feedl , particularly over the winter . Some rabbit hair producers need access to feeds rich in certain amino acids and almost all produceirs need access to mineral supplements. Producers may benefi t from access to contract milling facilities for their own feed resource!s (See Annex A, para .a ; Nutrition). Additionally the breeding and multiplication farms need access to compound feeds (complete rations).

Each county interested in rabbit production has proposed investment in feed milling capacity to produce a range of products . But in the absence of good market studies there is danger of providing too much capacity in technical ly desirable but uneconomic feeds (such as compound feed fOr meat rabbit producers). Feed mills usually have to operate on low margins and r ely on high turnover for financial success . Sma~l differences in raw material costs (for example f rei ght) or market demand can mean the difference between profit or loss. Each feed mill wi l l therefore require a detailed study before funding approval. (Draft criteria for such a study appears in Chapter V) .

No county has suggested investment in pasture establ ishment for rabb it production under a cut and carry system, although this is evidently a feature of some other provinces .

iii) Access to a good market

Meat rabbits do not travel well and producers in remote areas need a processing plant within 2-3 hours travel to avoid losses . Conversely produce?rs near urban centres have alternat i ve outlets through free markets for which processing is not necessary . Abattoirs also usually exist on low margins and depend on tight management and high turnover for success . The rabbit abattoir inspected by the miss ion appeared to be very efficiently run and an

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inspection of thei county livestock enterprises books of account showed it to be making a profit, so it is clear that processing rabbit meat can be successful but each proposal needs careful study prior to funding approval. Criteria for such a study appear in Chapter V.

Profitability of an abattoir depends partly on the uti lizat ion of by-products. This appears very good for rabbit abattoirs (except for blood) but the desire to obtain a good return for skins has led some counties to suggest new or expanded fur skin process i ng and fur apparel manufacture. The processing of raw skins i nto tanned pelts is not technically difficult providing post-slaughter skin handling is good and may be financially attractive if turnover is high but apparel manufacture requires good design and close links with the apparel market to ensure the clothing is fashionab l e and thus profitable. C1areful study of these factors is required and the possiblity of joint venture investment with apparel manufacturers with access to markets and technical skills in fashion apparel needs to be considered (see Annex A).

Hair rabbit producers need secure markets to warrant long term investment in the industry . There is evidence from farmer intervi ews that local area processing promotes more stable prices to farmers and most counties concerned with hair rabbits have proposed investment in processing through yarn spinning and sometimes knitting. The rabbit hair market is quite volatile and much more dependent on fashion than the fur market. These factors are discussed in A.nnex A. but the same general observation applies as with the fur fa.ctory. Each proposed investment requires detailed study and consideration should be given to joint venture investment in the special ized end product manufacturing proposed because of the difficulties involved in the international fashion industry . Criteria for such a study is presented in Chapter V.

iv) Technical servi ces

Rabbit production is subject to disease problems and extension is needed to keep farmers attuned with good management and feeding practices . This requires specialized technical services. Each county has proposed investment in technical support services and most have included training of technicians in the use of new equipment and techniques. Mission observation suggests that training will be essential to the efficient expansion of .these centres •

Broiler Chickens

21. Recent Government policy changes have made the broiler chicken industry more attractive and this has encouraged two counties to propose investment in this industry. Both have surpluses of grain (the principal feed for chickens) and both are proposing investment in fairly intensive production. Profitabi l ity in the poultry industry is very dependent on grain/meat price ratios and in China at present (and in this case) this is affected significantly by government policy •


22. In the sense that State policy on grain prices is outside the control of the county, this represents a risk. The effects of this risk (and other market risks) can be miinimized in two ways:

i) ensuring the enterprise(s) is located in the most favourable place with regard to access to feed, markets, utilities, etc., and that competition is acceptable;

ii) ensuring the breeds;, management and feeding techniques are the very best available so that per unit production costs compare favourably with competitors.

23. Efficient intensive broiler production requires access to imported breeding stock. Internationatl breeding companies spend, and continue to spend, millions of dollars in developing birds that make the most economic use of feed. It i s not pract ical to duplicate this effort and failure to obtain the best stock will lleave the enterprises at risk from companies . that do. The two counties interested in chickens have prepared special breeding farms based on stock imported from Shanghai and Gansui. It is not clear if these stock go back to imported lines but this should be considered. Breeding strategies are discussed in Annex C. ~

24. Efficient intensivE~ broi ler production also requires access to well formulated processed feed w·ith tailored additions of vitamins, amino acids and antibiotics. Each county has proposed investment in feed milling for this purpose. Some observers <1> have commented that feeds processed for chickens in China are S(Jmetimes low in protein due to local shortages of fishmeal and soybean cake 01r quality problems with some raw materials. Sampling and general quality control is very important in producing the consistent feed necessary f1Jr high production and low unit cost.

25. Broiler chickens also do not travel well and there is a case for inwestment in local processing to improve market prospects for producers away from large urban areas, but if production of frozen prorjucts is proposed, the marketing chain for these needs descriptioD. However, consumer demand is for fresh chicken meat so ·a processing plant close to urban areas may suffer competition from the Agricultural Trade Markets (ATM) or "Free Markets" in large towns. The location of processing plants i n rel ation to producer areas and ut i l i ties i s important as is consideration of actual or planned competition. Criteria for a study of processing pl ants before appraisal is presented in Chapter V.

(c) ~

26. Lai Wu county has proposed investment in pig production to take advantage of local experience and feed advantages. The proposal made for production is intensive and! aims to produce lean pork. Similarly with poultry, the pig breeds, matnagement and feeding systems have to be excellent to provide the compet i t i ve edge essential to survival in the face of increasing ly volatile feed/meat price ratios.

<1> World Bank Livestock Sub-Sector Study.

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27. The most efficient producer is the last to become unprofitable as market conditions become unfavourable and the first to become profitable as markets improve . There arE~ different design criteria for local semi intensive pig production (still the dominant form of production in China) and intensive lean pig production (the dominant form of production in most developed countries). There is a financial risk in attempting to compromise between these two product ion systems and this lies in the ar eas of breed, management, (including feeding) and processing.

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i) Breed

Local pig breeds are well adapted to the low cost coarse feeds traditional in China while exotic breeds have been heavily selected for capacity to convert high quality feeds into high quality l ean pork which sells for premium prices in urban areas . <1> There is evidence to suggest that local/exotic cross breeds are less profitable i-n intensive programmes aimed at lean meat than exotic hybrids alone. The Lai Wu county has proposed a breeding farm to special ize in producing local/exotic cross pigs and perhaps the policy needs further consideration. (Breeding aspects of pig production are discussed in ~nnex B).

ii) Management

Intensive piggery design is highly evolved to minimi ze piglet l»sses and to maximize weight gain in varying weather conditions ind to achieve other effic iencies. Specialist input is required at design to achieve this . Similarly intensive piggery management is highly specialized and it is necessary to demonstrate adequate training or access to experi~nced management in proposing · investment in this new (for the project area) form of pig production.

iii) Feed

The quality contro l for pig feed is not quite as important as it is for poultry, but for intensive piggeries it is still important to be sure of regular supplies of consistent compound feed of the appropriate formulation at competitive prices . Investment in feed mi l ling is proposed, but the design study should make it clear th~ facility can achieve this quality and make a profit .

iv) Process i ng

The profitable marketing of lean pork requires improved processing/packaging and chilling facilities. The profitable operation of a modern abattoir usually requires efficient use of by-products. There! is a premium f or fresh pork over frozen pork and some smaller premium for chilled pork. The market for local sales

·<1> But not necessarily in county or smaller urban centres where fresh fatty meat from local pigs is still in demand for energy in the winter, the time of most pork consumption.

(d)


of fresh chi l led po1rk should be compared with the returns· available from marketing pork in distant urban areas which might require deeper freezing (and higher freight costs).

Sheep

28. Sheep are efficient converters of coarse natural grass into meat and wool. They are tolerant to saline conditions and traditional to the area. Pasture improvement experiments in saline sandy wasteland in the Tuhai Basin have been very successful (see Attachment 7) and investment in increased production and improved breeds of sheep has been proposed in these improved pasture areas. The traditional mode of sheep production emphasizes meat production with coarse carpet wool and tanned coarse wool skins as byproducts. Increased production of this type of sheep is simple but each· county interested in sheep has proposed crossing imported fine wool sheep with local breeds to producei the more valuable fine wool which is in strong demand i n China. This has begun in the project area.

29. Production of fine wool has different requirements in feeding and management than meat sheep. The nutritional stress period which occurs in the winter ~nd post-winter period is not serious for meat sheep due to the compensatory we~ght gain characteristic of most farm animals <1> but in fine wool sheep stress causes weiakness or actual breaks in the wool grown during the stress period. This causes problems in spinning and thus . r.eduction in value and actual loss of wool that drops off. Fine wool is more easily contaminated by dust, sticks and fecal matter than tradit.ional coarse wool. Fine wool post-harvest treatment and grading is a signif icant determinant of price.

30. The specific design considerations of importance for sheep development are:-

i) Breeding

Specific breeding stations have been proposed to ensure quality stock are available to farmers, but it is not clear why this cannot be provided more cheaply through AI.

ii) Feeding

The provision of investment in sheep and silage is made extension .

iii) Technical Support

improved pasture is the foundation . of the production and is evidently well founded. Hay by farmers in the area and this is a feature of

Extens ion serviceis to inform farmers of the production factors

<1> This refers to capacity of grown an imals to regain weight lost through stress and recover to the point that would have been reached without the stress period.

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important with fine wool sheep is clearly necessary~ Technical support has been proposed but it is not clear to what extent this covers the specific requirements for fine wool production.

iv) Wool Procurement Centres

One county interested in sheep has proposed an investment in these centres. This may be a very positive investment if they work in cooperation with the extension service to provide farmers with i ncentives to produce clean wool without stress weaknesses.

Beef Cattle

31. Beef cattle are gocld converters of coarse natural feed into meat and are traditional to the area. The proposed investment in beef production would exploit the recent success in pasture development in the area and is soundly based.

32. One county has proposed using the pasture plus supplementary grain in a feedlot. The rationale for this more intensive form of beef production and the use of grain, which is more efficiently ·converted by monogastric animals such as pigs and chickens, is that this wiTl turn off animals one winter earlier and will produce b~ef that can be sold for high prices to hotels now importing beef o1 this quality. This proposal needs very caref~l study to justify t he investment as the hotel market is quite specifi~ in lts requirements and may not be very high volume~ Processing and packing has to be of a very high standard. The design considerations of importance are :

i) Breed

The local breed of cattle, the Bohai Black, appears suited to feedlots •

ii) Feed

The use of grain needs careful assessment as the feed might be better utilized in the fish farms to be developed in the same area .

iii) Processing and Transport

This must be of a high standard to enable the meat to be sold profitably and 1it must be established that competition is not better placed to serve the limited market .

D. Project Description

33. The 24 sub-projects proposed for the Yi Meng mountain region by the 8 counties participating in the--.project from that region are summar i sed in the following table. A detailed description of these proposals are contained in the attachments together with mission comments . In essence each county intends to have a breeding sub-project to provide high quality stock for farmers. Many counties also propose breed multiplication farms where this is appropriate. Each county also wishes to invest in feed milling to ensure


feed supplies to breeding stations and at least supplementary feed for producers. Each county also intends to build or expand abattoirs. All but one county proposes investment in technical support centres to provide veterinary service feed analysis services and extension for farmers and specialised households. All but one county propose further animal product processing, either for skin processing, yarn spinning and knitting or in one case goose feather processing. Training of technicians and processing plant employees is a feature of most of the studies and a few propose specific assistance in the form of credit for households to become established in the respective breed of livestock selected for promotion in each county.

34. 5 counties in this region propose investment in rabbit processing (one in pigs, one in geese and one in chickens).

35. The 24 sub-projects proposed for the Tuhai River Basin region by the 5 counties participating1 in the livestock component of the project are summarised in the second of the following tables. Detailed descriptions are contained in the attachments together with mission comments.

36. Each county in the region proposes investment in abattoirs, two in breeding stations for sheeip and cattle, three in pasture improvement, four in technical service centres, two in other animal product processing, three in ~e~d milling and two counti es propose establishment of specialised households in the livestock industry. The region contains a lot of waste or saline grasslands in which pasture is being successfully establ ished and the main livestock proposed for investment are ruminant cattle or sheep. One county proposes a cattle fe1~dlot.

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37. The projects as proposed involve almost~) development investment in Year 1 with operational start-up in Year 2 and full production starting in Year 3. The mission has added almost six months to the development phase with operations beginning at the middle of the second year.

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Yj_Henn_Ho~ntain_Region

~C~fHt!9 Feed_Hil J Abattoirs Q!h~c Technir~l Q!hgc !t!!t!!t!9 !I Produc1ion Hanage11ent !~H! E!C~~ Processing ~gc~i~g Invest11ent ~1~~J~22ort

it!~!)

Fri 3,070 385 3,701, ~,566 494 .- 390 16,611 - - -

Hrnq Yin 1 ,415,1, 1,069.9 3,660 lr ,55R.3 :m.R - 25 . - 2,330 21,402.6

Trng 1,760 4,493 51439.1 1,420.3 1,00. 0 - - - 651 14,362.4

Lai Wu f I 10 1,530 10,814 - - 370 109 - - 13,936

Yi Han l 1?R1.2 388.1 1,,259 \693.5 589.3 - 190 3,400 - 17,801.1

Yi Yuan 2,004 1,297.8 4,279.7 ~,753.9 rn .3 - 140 3,876 - 15,682.7

Y l Shu l 1,rn. t 700. O S,41,2. 0 917St5 4S~.S - - - - 17,491.1

Ping Yi 5,899.7 5,016.3 4,611.5 - 400 993.4 200 - - 17,120.9

!~H! !Z.l~~1!~ H.l~~~!! H1.gH!~ 1!.tZ1~!~ ~.1g11J !J.~~~d ~~1 Z.tiZ~ ~.t~?! H1.1.1E!.~

a?1~ ~* ..... ~

-------------------- ~II !/ So"e proposed training is still rontainrd in individual sub-projert figures. vJ ""

Chi Ping County

Wu Di County

Zhanhua

Shen County

Shang He

I!H!

~t!~~!n!I ~H!!!a

2,316

2,400

~J.Z!§

~!H~t! Dev~!!e11ent

100

1,265.98

Jno

!1Z1~!2§

Feed_Hill (new_Qt_~ieansion)

695

950 .1

2, 7~0

~J.~z~~~

Tuhai_~i!Et_Basi n

Heat_Precessing E~£Ht~

5,792.0

i, Y7ii.l,i

4,695.0

2,963.7

?.,280

!Z1Z!2~~

Livestock Technical Purrhase VetP.rinari

<Y'OOO)

500

jyj .iii

!122!~H

~~t~f£t

150

600

380 .

590

!1Zg!

Y!n~t Pr!£~~~!!!9

U~!!!

3,~B2.2il

t,t2R.3

~1§U~2

Other Training lllve~tl!.~nt

too 40

3,806

~12!§ !!

Hanage11ent l!H!

7,374 .~

" 1:U] ~'/ '"'I) . .,,, 01561. to

a,65n.o

8;000

~!11!~~!~

o915 ~* -'•

~

~ ., ~,~

t

I

'

•

•

•

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•

•

•

Organisation and Management


38. Chart 1 sets out the relationship between government and the County Animal Husbandry Commerce Companies (CAHCC} , specialized and responsibility households. The CAHCC are owned by the cou nty government and the prov incial agricultural economic development investment companies . They are prov ided with technical support services by line departments through the county government. They buy produce · from specialized households (SH) and responsibility system households (RSH) and sell goods and services back .

39. This arrangement does not change the responsibility of l ine departments to continue to provide support to farmers (RSH) and SHs, except that significant technical SUPP.Qrt service assets, veterinary and nutrition testing equipment, etc., will now be owned by t he CAHCCs . These are proposed to se ll services to both SHs and RSHs normally at 1.5% of produce delivered to the CAHCCs. This charging mechanism has risk to the CAHCCs as farmers may elect to sell only some of their produce to the CAHCC in order to receive all of the serv ice required. This is balanced to some extent by the potential conflict of interest between the CAHCC owned technical ser vice centre responsible for proviiding an impartial feed testing service and the CAHCC owned county feed mills.

40 . The different units of the CAHCCs are proposed to operate as individual profit centres w'ith (for example) the feed mill selling feed to the breeding farms who sell cull stock to the abattoirs . There are potential conflicts of interest here that will require sensitive management.

Financial Analysis

41 . Data provided in the various county feasib i lity studies was generally not sufficiently 1complete to enable complete financial analysis . However, to assist final preparation and complete design of t he various components, financial analysis has been attempted for a number of mode ls to give at least some idea of their profitability and sens itivity to the various factors of production . Models have been prepared on the following :-

i) County Rabbit Breeding Farm;

ii) Township Rabbit Multiplication Farm;

iii) Rabbit Meat Production Household;

iv) Angora Hair Production Household ;

v) County Pig Breed ing Farm;

vi) Specialised Pig Household;

vii) Pig Fatteni ng Household ;

viii) Meat Rabbit Abattoir •


42. The eight models and rate of return calculation are set out in Tables 5-12 and the results summarised in Table 13. Comments on the various models are given below.

43 . County Rabbit Breeding Farm. Based on the assumptions regarding technical parameters costs and prices detailed in Table 5, the financial rate of return is estimated at 19%. Profitability of the component is quite sensitive to changes in revenues and input costs.

44. Township Rabbit Multiplication Farm. Financial rate of return is estimated at about 14%, but i s quite sensitive to changes in revenue and operating costs. For the model it has been assumed that sale price of young rabbits would be about YlO per head. One county feasibility study indicated a sale price of only Y5.5i per head, which would mean that sales would not even cover production costs. Fixing low sales prices by county and township farms cou ld be intended to assist farm families, but might result in considerab le costs to t he counties for l i ttle benefit. Sales pri ces by county and township farms. shou ld be set to reflect free market prices and allow for full recovery of production costs and a reasonable profit margin.

45. Rabbi t Meat Product ion Household. Using a sale price for 2 kg rabbits of about YS . 4 per head, the model indicates a financial rate of return of around 56%. Profitabili ty is, however, very sensit i ve to changes in revenues and i nput costs. Reducti on in revenues of 10% reduces t he FRR ·t o 25% and the analysis shows t hat a 15% reduction in revenues would reduce returns to 12%. The analysis i ndi cates that meat rabbit production on t he basis of the parameters and assumpt ions used is quite prof itable and that there should not be any need for subsidy arrangements to make production attracti ve t o farmers.

46. Angora Hai r Produc1:ion Household. Using an angora hair sale price of Y60/kg and a price of Y? .O per head for young hair rabbits at 90 days of age and for cull rabbits, the financial rate of return is calculated at round 41%. Returns are extremely sensitive to changes in revenues, however, a decrease of 10% reducing the financial rate of return to 22%. The sensitivity analysis resu ·lts are similar to those for meat rabbits with a decrease of 15% in gross val ue of production, or an increase of 20% in operating costs both reduci,~g the financial rate of return to about 12%.

47. County Pig Breeding Farm. The model set out in Table 9 is based on informat ion provided by Lai1Hu county. As for the other models, profitability is highly sensitive to changes in output prices and cost of inputs, particularly feed costs. On the basis of the information provided by the county value of sales (excluding value of manure, for which no benefit has been estimated) would be insufficient to cover operating costs. Moreover the proposals include considerable investment in land, building construction equipment and services totalling Yl.06 million (US$287,000). The main reasons for this poor performance are:

- the number of pigs produced are l ow - about 15 weaners per sow per year compared with a reasonable standard target of 20 and a high performance target in intensive European pig farms of more than 23 weaners per sow per year.

- the percentage of stock sold as cul l s (57%) appears too high;

- the sal e price of pigs at Y90 per head for breeding st ock, Y30 per head for cu l l pigs and Y50 per head for cull breeding fema les all seem to be set too l ow.


48. Unless the county proposals have been misinterpreted or it is realistic to adopt technical parameters resulting in a better performance, the model as presented a1t present implies a degree of subsidisation of breeding stock costs to farmers. In order for the breeding farm to achieve a financial rate of return of 12%, annual support payments b"y t he county would amount to about Y0.25 mi ll ion or to break even at 0% over a 20-year period an annual subsidy of about Yl50,000 wou ld be required.

49. Specialised Pig Household. The model illustrates the situation of a family keeping one sow and fattening the progeny to about 75 kg at 180 days of age, and selling them at the government guarantee price of Y2.4/kg (Yl80 per head). The financiial rate of return is estimated at about 16%. However, a 5% reduction is revenue, or 5% increase in operating costs, would both reduce the financial rate of return to close to zero (1% and 2% respectively).

50. Pig Fattening. The model is of a household which purchases five weaners and fattens them to 75 kg li veweight at 180 days of age. No estimate has been made of any addit 'i onal building costs and the sole investment cost by the farmer is to purchase 60 day old, 15 kg liveweight weaners . The model and the various other assumptions made are presented in Table 11. As the table shows margin over total costs is estimated at Y75, or a return per labour day of about Y9, more than three times market labour rates.

51. Rabbit Meat Abattoir. The model presented in Table 12 is based on information from Feixian (F1~i County). Based on the data provided financial rate of return i s calcu·lated at 60%, but is very sensitive to decline in gross revenues. Only a 10% reduction in ·value of sales brings down the financial rate of return ito 13%. The model is also somewhat less sensitive to ~ncreases in operating costs but relatively insensitive to changes in investment costs.

E. Is.sues

52. The sign i ficant issues of this stage of preparation of these livestock sub-projects are the definition of work remaining and the methods of preparation/appraisal ,of those enterprises that cannot be prepared adequately before forma l World Bank appraisal early in 1989.

Remaining Preparation Work

53 . The most important area of rema1n1ng work for preparation li es in marketing. As set out at present the production SH and RSHs sell to the CAHCC primary processing unit (abattoir, yarn spinning mill, etc.) who sell partially finished products to secondary or subsequent processing units, who sell to either a provincial trade company or some "open market" for finished products . These sales of finished products contain significant r isk for the CAHCCs and require much more definition and description before an informed appraisal decision can be m~de.

54. The contracts for sale to prov incial trade companies all· def i ne the method for calculating the contract price and guarantee to buy al l products. Unfortunately, the contracts do not define when the produce will be purchased or when paymenit will be rece ived . These contracts may not be useful in the event the CAHICCs 1 finished products do not suit the market


(for, say fashion reasons.) or the market price drops below the provinci al trade companies' buying price.

55. The sale of these finished products is the end point of all t he proposed investments in liveistock processing and therefore the production as wel l . It is important to study these markets in detail (marketing is discussed in Annex O and in Annexes A, Band C) to demonstrate the security of markets before appraisal ~ In some enterprises t here is a risk of product by-passing the proposed processing facilities (notably in chicken and rabbit abattoirs). It is also important to discuss competition for each processing investment.

56. In summary, markE?ting surveys should anticipate questions on security of marketing and indicate:

i) sources and security of supply of raw material;

ii) markets defined as volume and pri~e for the qual ity to be produced and, including historical data;

iii) marketing chains, to include transport, packaging and storage systems necessary for successfu l marketing;

. iv) competition, including discussion of actual and potential

competition and advantages and disadvantages of the proposed investment in relation to the competition.

F. Criteria for Subsequ.ent Studies

57. It will be necessary for some investment proposals to be appraised during implementation by the Agricultural Bank of China . In most cases this will mean additions to existing studies . General criteria for these are:

i) the studies should be site specific, that is, it should discuss topography, utility services and transport or freight implications of the site, and g1ive site and construction plan drawings;

ii) the studies should, as they do now, show proposed investment details, equipment, construct ion and operational details, and project future sall es and costs of sales with sensitivity analysis;

iii) the studies should prov ide market studies as discussed above.

• MAY 12 .

•

'

•

•

•

•

•

•

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'88 ~5: 04 MPW AUST. ADEL. 08 2237602" • ~ ~ ""~c:1--cJ A 6

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f foV~ "{l.· ( f.>( (, OV,t \ft\ . ~ Cc,""' ,~ ":.;.,:.. i c,," }

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CO\JN.1\ ~\t 6-~~ w...l:t,.t I

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Working Pap• Chart 1

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CHINA

~orking Paper 4 Table 1

SHANDONG 1A.GRICUL TURAL DEVELOPMENT PROJECT

Shandong Province Livestock Population Trends

( '000 head)

llll 1l.lll.. liil llli 1986

Large Animal 3,512.8 3,H39.6 3,820.4 4,030.5 4,442.5 4,800.6

Cattle 2,317.0 2, 135. 5 2,220.6 2,325.6 2,579.8 2,925.3

Mule and 355.5 349.8 3 4·1 . 7 356.8 367.2 365.6 Horse 269.4 :24 8. 9 305. 1 330.7 369.8 381. 7

Assc~ 750.9 069.4 953.0 1,017.4 1,105.7 11,280.0

Pigs 19,011.0 17,:262.1 15,626.8 16,851.4 18.128.3 16,689.3

Sheep & Goats 10,256.0 9,1194.7 9,017.8 7,539.3 7,832.5 9,852.7

Sheep 3,551.5 3·,;206.7 2,790.9 2,232.0 2,229.8 2,781.9

Goat 6,704.5 6, Ei 8 8. 0 6,226.9 5,307.3 5,602.7 7,070.8

Rabbit: 17,758.2

Rabbit Meat 5,895.5

Rabbit Hair 11,862.7

Poultry: 146,889.2 165,481.9 51,206.7

Chicken 143,438.2 131,593.1

Ducks 10,660.0 19,244.6

Geese 11 , 3 83. 7 10,369.0

Source: Shandong Animal Husbandry Bureau.

..

CHINA


Shandong Provi nce Animal Feed Trade

Gross Income from Procurement & Process i ng Costs Sa le or Feed

Commodi ti es Quantity Unit Price Amount Yuan Total Unit Price Amount . Profit to <US$) - -- -- --- Import Pr ice --- County Feed Co . . . . . . . . . ..... ..

Vegetat ive Feed 277,693.4 1 , 356.0 3,765.6 12,991.4 21, 5 16 . 1 6,976.1 19.372 . 2 2,14 3.9

Soybean Cakes 6 1. 6 21.0 1 . 465 . 1 902.8 J .114. 6 5. 121. 3 7. 793. I 4.802.2 319. 1

Pf'a m,t Cakes 2 16 .072 .4 I. 324. ~I 2 . 862 .8 9, 87 6 .8 16 . 187.4 G.74J. I 14. 5 70.0 1,617. 4

Ot he r Feccts - - - - 207.4 - - 207. 4

:-,o urc· t.•. Sh a nd o n,J .l\ 11J mal lh1 ~h.1 11dr y Uu r e au .

-i ~ a, 0 0- ., ,- ~ (1) .....

::::, N lO

iJ a, u (1) ., ~

• • •

Feed Types

Gr a in

Mai z e

So r g hum

fl r 1 <'d s ,,·ep l Po t ato

Mi 11 1' 1

Soylwu 11

" h("#t t llus k,.,

CH 11" r~

( 'akP~

Peii nut Ca k e~

Soyhrnn Cake~

('c, t t n n S0<'c1 C'a ke!,

Sou rc · t~: Sha 11d o 11q An1 mi.I I

•

Unit Price lY/kgl

-0.42

0.42

0 . 36

0 . 42

0 . 61

0 . 36

0. 4 6

-

0. 70

0 . 70

O. J O

• • • •

CHINA

SHANDONG AGRICULTURAL DEVELOPMENT PROJECT ,

Yi Meng Mountain Region

Supply of Concentrated Feed in 1986 in the Project Ar e a

~tons >

Teng Xian Lai Wu Yi Shui Yi Yuan Meng Yin ---

'

295 .000 113.557 GI. 937 20.846 55 , 612

205. 000 130 .000 23,000 7,600 22 . 000

4 . 000 700 2 . 000 15 0 5 00

!:P S. r;oo 3 0 . 000 J0. 400 10 . 00 0 29 .000

2. (100 I .000 1 .000 300 - 5 00

I . 000 150 150 - 250

23. 5 00 11. 6 87 5 . 287 2 . 796 3.312

1 .000 20 100 t . 005 50

I!. '1 l,/1 1·. 191 6.800 990 4. 11 2

'.>. 4Ci8 1 .1 60 6 .4 00 4 .02 7

l. 000 14 400 15 8 5

lhH, h il m l r y 11u rNHI . ;

- - - -

Pi ng Yi Fei Xian Yi Nam ---

5 4 . 303 137 . 710 103. 95 0

8 . 000 2 1 ,500 7 .500

3,900 2. 100 I . 500

33. 5 00 10 4 .200 8 5 .200

I . 5 00 1 . !;00 1 . 000

400 35 0 600

7 . 0 0 3 8,010 7 . 950

- 5 0

::; . 620 7,800 6 . 11 0

5 .820 7 . 770 6 . 100

-i i£ - 30 10 QI 0 er ., r- .,... (t) ..,,

:, vJ co

"U QI 'O (t) ., .i:--

CHINA


Yi Meng Mountain Region

Total Available for Coarse Feed in the Project Area

c tons)

Feed Types Unit Price Teng Xian Lai Wu Yi Shui Yi Yuan Meng Yin Ping Yi Fei Xian Yi Na .. !Ylkg)

St rah'S of C rop" - 422.000 285 .000 210.000 101. 000 115.000 180.000 230.000 206.000

h'hca t S t r a ,, 0.04 200.000 98.000 53,1100 28.300 30.800 63,000 69.500 69. QOO

Ol ht•r s 0.06 222.000 187,000 156.200 72,700 84'. 200 117.000 160.500 139.000

Hu !-k ... 0.06 7(10 100 5 80 2 00 280 750 I I\ . ·100 400

Ci r a~~ - :? h . 000 2'."·. 000 ~h.000 IJ. GOO I 1. ·100 21 .000 30 19 .400

."-rt I f I c· 1 a I (: r., ~!-- 0. 20 "; ()() - GO - - 3 . 120 IS .370

h°C('Ch, 0. 10 2:, . $ 00 J$.OOO 25.940 13.600 11.400 19 .880 6.010 19.400

~o t c : T he· ) Hirt o f ~. tr ah'~ o f r· r o p s <' >«: lucl•·~ th<' p;,rl of ,-tr.H,s 11,-Pd for fuc•l Cor cook1119 l .

Sou r c e : S h a 11cJ0 119 Animal 1111 ,, b a mlry Burc•au.

_. ~

QI 0 CT -, r- .,_. l'l> .....

:, ~ ID

-,:, QI "O l'l> -,

.. ~

• • • • • • • I I' • • • •• •

CHIMA Shandong Agricultural Oevelop"pnt Project

County Rabbit Breeding Far" Currency : Yuan

C_OU~TY RAf!f!JT BREEDING FARM MON:I. 1/ ==========---====--======-=··= -=============::-:-:: .. ~============--.: :-:::===========:.:: :::::-:::::::::::::-:::-:::.::::::::::

Year 0 1 'J 3 4-10 11 12-19 20 ...

-----------------------------------------------------------------------------------------------------------Working Capital 2/ o.o 0.0 13263.0 130P.7 .0 0.0 0.0 0.0 -2b3SO.O

Building Invest"ent 0.0 100000.0 135900.0 0.0 0. 0 o.o o.o 0.0

Equip"ent Inve~t"ent 3/ . o.o 38000, 0 3000.0 0.0 o.o 41000.0 o.o 0, 0

Stock Cost @120 4/ 0, 0 o.o 132000.0 501,40.0 50640.0 ~OMO.O SOMO .O 50640, 0

Land Cost o.o 150000,0 o.o 0, 0 o.o o.o o.o -150000.0

Tot•l In,est"ent Co~ts o.o 288000.0 318563.0 637?7.0 50640. O 91640.0 50640.0 -125710.0

Val1e Y Stock P 15 5/ 0.0 o.o 130950.0 256500.0 256S00.0 256500.0 256SOO.O 256500.0

Val1e of Cul l Sales bl · 0.0 0.0 6800.0 131,00 .0 13600 .0 13/,00, 0 131'00.0 13600.0

Val,e of ManurP Sales 7/ 0, 0 0.0 ?500.0 ~,000, 0 sooo.o ~000.0 5000.0 5000.0

GVP@ 15 o.o 0. 0 140250.0 2751 00.0 275100.0 ?75100.0 275100.0 ~75100.0

Feed Cost FeMalP Jlreeders 8/ 0.0 o.o 12P.07.0 25614 ,0 25614. 0 25614 .0 25614.0 25614.0

Feed Cest Male;~ Reserve 9/ 0.0 0, 0 35:?2.0 70~4 .0 7044.0 70~4.0 7044.0 7044.0

Feed Cost Young ~reeders 10/ o.o 0.0 12184.2 243~7.8 24367.8 ?43/,7,8 24367.8 24367.8

Vet c,sts Adult Breeders 11/ o.o 0, 0 550. 0 1100 , 0 1100 .0 1100.0 11 00.0 11 oo·. o

Vet C,st Young Freeders 12/ o.o 0, 0 855.0 1710 .0 1710.0 1710.0 1710.0 1710.0

Labour 13/ o.o 0.0 lbBO.O J3b0 .0 3360.0 331'0.0 33/,0,0 3360 .0

Water , Electririty ~ Coal 14/ 0.0 0.0 4150.0 8300.0 8300.0 ll300.0 8300.0 8300.0

Marlet Fees 15/ 0.0 0.0 2104.0 41?7 .o 4127. 0 41?7, 0 41?7 .0 4127 .o

Manage"ent Feer. 15/ 0. 0 0.0 2104.8 41 ?7.0 4127 .0 4127.0 4127.0 4127.0 i

Other Costs 16/ o.o 0.0 13095.0 251,50.0 25650. 0 ?~650.0 251'50.0 256SO.O ~ r;: , ,- 7C" fl) .....

~ i Total Operatin~ Costs · o.o o.o S3051,2 105399.8 105399.8 10~399.8 105399 .B 105399.8

V1

I Total Costs 0.0 ~88000.0 ~71614 .2 169126.8 156039 .8 197039.8 1S6039 .9 -20310.2 ,

"'

MVP 0,0 -288000.0 -?.Jt364.2 10S973.2 119060 .2 78060.2 119060.2 295410,2

. - r ~- - · -······------------··---==-=-===--------==------=-=~~=::::::::=-

1.

FOOOOTES

Working Paper 4 tables Page 2

1/ Hodel is based on data frol'I the Yinan County proposal, wjth MJjor aMendl'lent to feeding and reprodt1ctio:i rates.

2/ 3 l'IOnths operating costs. 3/ Replaced in Year 11. 4/ A total of 1,110 breeders {10% bllcks), ~ew Zealand and Cali fornia

rabbit s il'lported frol'I the USA , West GerMany and France. One-1~1rd of ~~eed stock (367 rahbits) plus replacel'lent for l'lortality (5%) losses (55 rabbits) iMported earh year froM Year 3 onwards.

5/ At full production 800 brePd ing fel'lales at~% l'lortality = 760 survi~ing hreeders at 5 l itters with 5 ki ttens= 19 1 800 young at 101. Mortality= 17 ,100 sale rahhits . Sale price assUl'led Yi5 per head,

6/ Culls at 10% of pro~uction (j,e, 850 in Year 2 and 1,70u k'o~ Year 3 onwards) at YB per head.

7/ 50 tons in Year 2 and 100 t11n, fro11 Year 3 onwards at Y50 per ton. 8/ 760 feMales at 0,15 kg per day+ 40 fel'lales at 0.15 kg per d~y for

1/2 year. Y0.6 per kg. 9/ 285 11ales at 0.11 kg per d~y + 15 11ales ~t 0.11 kg per day for

1/2 year . Y0.6 per kg. 10/ 171100 young at 0.075 kg per day for 30 day,+ 1,900 at 0.075 kg

per day for 15 days. Y0.6 per kg. 11/ At Yl per head per year. 12/ At YO. 1 per head.

13/ 21 Months in Year 2 and 4? Months frol'I Year 3 onwards at Y80 per Mnth.

14/ Frol'I Yinan r.ounty proposal. 15/ 1 .5Z of gross value of prod~rtion. 16/ j0% of gro~~ value of produriton.

Shandong Agricultural Developftent Project Count~ Rabbit Breeding Far"

NVP Rate of return= 19.4

Switching values for eppertunity cost of capital = 12 .0 %

PROJECT CVP@ 15 PROJECT Total Investftent Cost~ PROJECT Total Operating Costs

WITHOUT PROJECT BALANCE

NET BALANCE

PRESENT VALUES SWITCHING VALUES PER CENT

1701717.35 -806S~7.73 -6514:l8.92

0.00

243(\90.70

-14.3 30 .2 J7.4

• • • • • • • I' • • • • •

r.HTNA Shandong Agricultural De,elopnen t ProjPct

Fin~ncia l Anal9sis Currency : Yuan

Township Rabbit Multiplication F~rn Model 1/ ==----=---=--------------------··H------=----------=====-===-====-==========·· ===-=:-:= ==== ============~=======

Year 0 1 2 ~ 4-10 11 12-19 20 ----------------------------------------------------------------------------------------------------------Working Capital 2/ 0.0 0.0 4943.0 4941 .8 0.0 o.o 0.0 -9884.9 Building InvestMent 0.0 27500.0 50000.0 o.o 0.0 0.0 0. 0 0.0 EquipMent InvestMent 3/ 0.0 9300.0 .3700 :0 0, 0 o.o 13000.0 0.0 0.0 Stock Cost P1S 4/ 0.0 0.0 5250.0 1905. 0 1905.0 1905.0 1905.0 1905.0 Land c,st 0.0 60000.0 10000.0 0.0 0. 0 0.0 0.0 -70000.0

Total In,estMP.nt Costs 0.0 96800.0 73893,0 6846.S 1905.0 14905.0 1905.0 -77979.9

Valle Y01ng Rabbits @ 10 5! 0.0 0.0 ~?970.0 659~0.0 b5930.0 65930', 0 65930.0 65930.0 Val,e of Hanure bl 0.0 0.0 380.0 7~0.0 750.0 750, 0 750.0 750.0 Val,e of CuJls 7/ 0,0 0.0 390.0 747J 747.0 747.0 747.0 747.0

GVP@ 10 0.0 0; 0 ~~730.0 674?7.0 1>7427.0 f.74?7. 0 67427.0 67427.0

Cost Doe Feed 8/ 0. 0 0. 0 48P.5.8 9771. 0 9771.0 9771.0 9771. 0 9771. 0 C~st Buck Fee~ 9/ 0.0 0.0 602.4 1?04.8 1204.8 1?04.8 1204.8 1204.8 Cost Young Feed 10/ 0.0 0.0 4450.2 8900.4 8900.4 8900.4 8900.4 8900. 4 Vet Cast Breeders 11 / o.o 0.0 263.0 5?.5.0 525.0 5?.5.0 525. 0 525. 0 Vet Cest Young Stock 12/ 0.0 0.0 3bb.O nJ.o 733.0 73~.o 733.0 733.0 Labm@ 80 13/ 0.0 0.0 4320.0 8640.0 8640, 0 flMO. 0 8640.0 8640.0 Water 1Electrir.itp i Ceal 0,0 0. 0 500.0 1000.0 1000.0 1000.0 1000.0 1000.0 Nar,et Fees 14/ o.o 0.0 506.0 1011. 4 I 011 . 4 1011.4 1011. 4 1 Ott, 4 i & r:i Ng11t Fees H/ o.o 0, 0 50(,.0 1011.1 1011 , 4 1011, 4 1011.4 1011. 4

-, ,- ~ 11) ..,.

Other Op. Co~t~ 15/ 0.0 0.0 3373.0 674?.7 6742.7 b742.7 6742.7 6742.7 .... cB 0-

Tot~l Operating Co;ts 0. 0 o.o 19772.3 39539.7 39539 .7 39539.7 39539.7 39539,7 ~ ~ -,

Totd Costs 0.0 96800.0 931,/.5.3 46386.5 , .I:--

41444.7 54444.7 41444.7 -38440.2

NVP @ 10 0.0 -96800.0 -59935. 3 21040.5 25982.3 12982.3 25982.3 105867 .2

FOOOOTES

1/ Model is hased on data fro" the Yinan County proposal, wjth "~jor a"e1dMent of output pricef.

2/ 2 "onths oprrating costs. 3/ Replaced in Year 11. 4/ 350 brePding stock purchaspd in Year 2 ~t Y15 per hea~. AssuMed

127 breeding stock replare"Pnts purchased froM Year 3 onwards . S/ 300 feMale~ at 3I "ortality = 293 fe"ales x 5 litters X 5 kittPns

= 7,325 eff~pring at 10% Mortality= 61593 ;old at full developMent (fro" Year 3 onwards> at Y10 per head.

6/ 7.S tons in Year a and 15 tons fro" Year 3 onwards at YSO per ton. 7/ As per Yinan proposal 1 83 pPr year froM Year 3 onwards at Y9 pPr

head. 8/ 293 fet\aJ.e~. at 0, ts kg per head per day = tb ,042 kg, plus 9

feMales at 0.1S kg per head per day for 180 d~y~ = 243 kg at Y0.6 per kg.

9/ SO bucts at 0.11 kg per head per day= 21 008 kg at Y0.6 per kg; No adjtstMent Made for insignjfjcant "ortality .

10/ 61593 young rabbits at 0.075 kg per head per day for 30 days=

141

834 kg at YO .b per kg. Assu"es coMpletP pPJJet feeding without grass.

11/ At Yl.S per year. 12/ At Y0.1 per year. 13/ 54 Man-Months in Year 2 and 108 Man-Months froM Year 3 onwards, at

Y80 per Mnth. 14/ 1.5! of gross value of produrtion. 15/ 10% tf gross value of produrtjon.

Shandong Agricultural DevelopMent Project Financial Analy;j;

NVP t! 10 Kate of return= 13.7

Switch1ng ~alues for opportun ity cost of capital = 12.0 %

W::>rki~ Paper 4 Table 6 Page 2

PRESENT VALUES SWITCHUIG VALUES PER CENT

PROJECT CVP F 10 PROJECT Total In~estl'E!nt Costs PROJECT Total Operating Costs


NET BALANCE

411,576 .45 -15~318.62 -244n7.B6

0.00

16979. 97

-}. .1 ln.9 7.0

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Working Paper 4 Table 7 Page 1

CHINA Shandong Agricultural Development Project

Financial Analysis Currency : Yuan

Rabbit Meat Production Household Model ================================================================

Year 0 1 2-10 11 12-20 ----- -- ------------- ---------------- ------------ ----------------Building Cost 1/ 0.0 360.0 0.0 0.0 0.0 Equip Cost ZI 0.0 480.0 0.0 480.0 0.0 Stock Cost 'J./ 0.0 225.0 75.0 75.0 75.0

Total Investment Costs 0.0 1065.0 75.0 555.0 75.0

Fat Rabbit Sales Al 0.0 1047.6 2095 . 2 2095.2 2095.2

GVP@ Y5.4 0.0 1047.6 2095.2 2095.2 2095.2

Pellet Feed Cost 5./ 0.0 246.0 492.0 492.0 492.0 Concentrate Feed Cost fJ./ 0.0 399.1 797.9 797.9 797.9 Grass Cost II 0.-0 106 .0 213.0 213. 0 213.0 Stock Vet Costs El 0.0 8.0 15 .0 15.0 15.0 Fattener Vet Costs 2/ 0.0 16.0 32.0 32 .0 32.0 Other Costs 0.0 8.0 15.0 15.0 15.0

Total Operating Costs · 0.0 783.2 1564.9 1564.9 1564.9

Total Costs 0 .. 0 1848.1 1639.9 2119. 9 1639.9

NVP 0.0 -800.5 455.4 - 24 .'6 455.4

===-============================================================ l/ 150 m2 at Y2.4 per m2 . . ZI 32 cages at Y15 per cage. Replaced in Year 11. 'J./ 15 breeders at Y15 per head . From Year 2 onwards assumed that one

third of stock replaced annually. Al At full develop.m.ent in Year 2 onwards, 400 head per year less 3%

mortality. Average weight of 2 kg per head and sale price of Y2.7 per kg. ·

~/ For 15 breeding stock at 0.15 kg per day and Y0.6 per kg. fi/ For fattening stock, number sold+ half number of mortality (at

3%) at 0.075 kg per day for 60 days, at Y0.45 per kg. ll For fattening stock, number sold+ half number of mortality (at

3%) at 0.15 kg per day for 60 days, at Y0.06 per kg. El Yl per head. 2/ · Y0.8 per head .

Shandong Agricultural DevelopMent Project Financial Analysis


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Wor king Paper 4 Table 7 Page 2

Switching valuer. for opportunity co5t of capit~J = 12.0 %

PROJECT GVP@ Y5.4 PROJECT Total Invest"ent Costs PROJECT Total Operating Costs

WITHOUT PROJECT BALANCF.

NET BALANCE

PRFSENT VALUES SWITCHING VALUES PFR CENT

14?14. 62 -15R2.13

-10990.61 0.00

21 ~1. 88

-14.b 1~5.4 19.5

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CHINA Shandong Agricultural Development Project

Financial Analysis Currency : Yuan

Angora Hair Production Household Model

Working Paper · 4 Table 8 Page 1

--------------------------------------------------------------------------------------------------------------------------------Year 0 1 2-10 11 12-20

Building Cost 1/ 0.0 360 .0 0.0 0.0 0.0 Equipment Cost 2/ 0.0 1050.0 0.0 1050.0 0.0 Stock Cost 'J./ 0.0 800.0 0.0 0.0 0.0

Total Investment Costs 0.0 2210.0 0.0 1050.0 0.0

Value Angora@ 60 !/ 0.0 0.0 1380.0 1380.0 1380.0 Value Yn~ Rabbit Prod 5/ 0.0 0.0 2198.0 2198.0 2198.0 Value Cu l Prod ~/ 0.0 0.0 252.0 252.0 252.0

GVP@ 60 o·. o 0.0 3830.0 3830.0 3830.0

Pellet Cost LI 0.0 0.0 1314. 0 1314. 0 1314. 0 Concentrate Cost Bl 0.0 0.0 1093.5 1093.5 1093.5 Grass Cost 9./ 0.0 0.0 389.0 389 .0 389.0 Vet Costs .l.Q/ 0.0 0.0 60.0 60 .0 60.0 Other Costs 0.0 0.0 60 .0 60.0 60 .0

Total Operat i-ng Costs 0.0 0.0 2916.5 2916.5 2916.5

Total Costs o. o· 2210.0 2916 .5 3966.5 2916.5

NVP@ 60 0.0 -2210.0 913.5 -136.5 913.5

1/ 150 m2 at Y2.4 per m2. 2/ 70 ca~es at Y15 per cage. Replaced in Year 11 . 'J./ Breeding stock 30 females and 10 males, 25% replaced each year

from own breed stock . !/ Assumed 30 does and 10 bucks. Doe hair production 0.6 kg/head/

year and bucks 0.5 kg/head /year, totalling 23 kg (Source: Sichuan report).

51 20 does with 4 litters of 5 kittens per year= 400 born less 10% mortality, less 10% culling, less 10 rabbit replacements per year = 314 at Y7 per head.

~/ 36 culls per year at Y7 per head . 11 0.15 kg per head per day for 40 breeders= 2,190 kg at Y0 .6 per

kg. Bl 0.075 kg per head per day for 360 young hair rabbit for 90 days=

2,430 at Y0.45 per kg. Rabbits sold at 4 months, weaned after 30 days.

9./ 0.15 kg per head per day for 360 young hair rabbits for 90 days= 4,860 at YO.OS per kg .

.l.Q/ At Yl.5 per head of breeding stock .

Shandong Agricultural Deuelop~ent Project Financial Analy, js

NVP@ bO Rate of return = 40.b

Wor king Pape r 4 Table 8 Page 2

Switching values for opportunity rost of cap j ta) = 12. 0 X

PROJECT GVP P t-0 PROJECT Total Jnv~;t~en t Co,ts PROJECT Total O~P~ating Costs

WITHOUT PROJECT BALANr.F

NET BALANCE

PRESENT VALUES SWITCHING VALUES PFR CENT

251Rfl.33 -2?75. Ob

-191RO.b1 0.00

3732.65

-1U! 1 f.4 . 1 19.5

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CHINA

SHANOONG AGRICULTURAL DEVELOPMENT PROJECT

Investment Costs

Land Pig Housing Other Buildings Equipment and Services Preparation, Design, Training Breeding Stock: Female

Male Unforeseen Working Capital

lJlltl

Value of Production

Breeding:

Cul 1:

Females Males Pigs Females

1.Q.ll.l

Production Costs

Feed:

Veterinary and Medical Other Materials Power and Water Labour Staff Salaries Other Overheads

lQll.l

Margin over Production Costs

Unit Cost

V80/m3 V152/m3

V100/head V100/head

V90/head Y90/head Y30/head Y50/head

Y500/ton

Coyntv Pig Breeding Farm!/

Yea!:.......J_ Amount Value

4,000 830

100 20

(V'OOO)

400 320 126 17 2 44 20

2 106 55

.L.1..ll

!/ Based on Inf o rmation included in the La i wu County f e asiblli l ) studiec:.

Years ~2 - 20 Amou n t Value

(V'OOO )

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600 54 50 5

850 25 100 5

ill

200 100

3 3 8

25 10 18

167

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CHINA Shandong · Integrated Agricultural Development

Specialized Pig Household Currency: Yuan

Specialized Pig Household Model ================================================

Year 0 1 2-20

Building Cost 1/ 0.0 1800.0 0.0 Stock Cost 2/ 0.0 90.0 0.0

Total Inv ·. Costs. 0.0 1890.0 0. 0

Fat Pig Production J/ 0.0 3492.0 3492.0 Sow Depreciation!±/ 0. 0 -30.0 -30.0

GVP 0.0 3462.0 3462.0

Sow Feed 5./ 0. 0 578.0 578.0 Pre-Weaning Feed Q/ 0. 0 165.0 165. 0 Fattenint Ration Z/ 0.0 2332.0 2332.0 Sow Vet ost B./ 0.0 6.0 6.0 Offspri.1..0. Vet Cost 2/ 0.0 60.0 60.0 AI Fee / 0.0 4.0 4.0 Other Costs 0.0 40.0 40.0

Total Operating Costs. 0.0 3185.0 3185. 0

Total Costs. 0. 0 5075.0 3185.0

NVP 0.0 -1613.0 277. 0

1/ 30 m2 at Y60 per rn2.

Work1ng . Paper 4 ta1:>Le · 10 Page 1

2/ One in-pig gilt at Y90. 11 20 weaners per sow per year and 3% mortality from weaning to

fattening= 19 . 4 fat pigs per year at 75 kg each at 180 days of age and Y2.4 per kg government guaranteed price.

4/ Sow depreciation at one-third of purchase price per year. 5/ 1.05 tons at Y550 per ton . Q/ 15 kg per weaner (0 . 3 ton total) at Y550 per ton. · ZI 216 kg per head (3.6 :1 conversion) allowing for 3% mortality=

4.24 tons at Y550 per ton. Bl For sow at Y6 per year. 2/ For weaners/fatteners at Y3 per head. l.Q/ Twice at Y2 each service.

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China Shandong Integrated Agrjcultural DevelopMPnt Specialized Pjq Household


Switchin~ value; for opportunity ro~t of ca~i tal = 12.0 %


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PRESFNT VALUES SWITCHING VALUES PER CF.NT

PROJECT GVP PROJECT Total Operating Costs. PROJECT Total Jnv. Costs.


NET BALANCE

25B59.21 -2~790.18 -16R7.50

o.oo

381.S4

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CHINA


Pig Fattening

Pig Fattening Cycle

Inves tment Costs

Weaners

Value of Production

Fat Pigs

Total

Produ c tion Costs

Feed

Veterinary and Medi cal

Paid Labour

Other

Total

Unit Cost

¥38/ha J,.I

¥180/ha ~/

¥550/ton

Y3/head

v21t,ead

Margin over p roduct ion costs . Margin over total costs. Family Jabour days. Return per labour day.

Amount (V'OOO)

5

485 ~/

1. 06/ton .§./

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5

Value

190

873

873

583

15

10

608

265 75

8 9.4

i t As s umed to be 120 days from purchase of weaners to sale of fat pigs. 11 15 kg piglets of 60 days of age and ¥2.5/kg JI 75 kg fat pigs at 180 days of dge and Y2.4/kg gove r nment guaranteed price.

1/ 3% marketing . .§./ 216 ky µer h ead (3.6:1 co11versio11), allowing for 3% marketing.

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CHINA Shandong AgriculTural Development

Rabbit Abattoir Currency : Yuan·ooo

Meat Rabbit Abattoir Model it

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Working Capital 0.0 1.8 0 0 . 0 0.0 0.0 0.0 0.0

Investment Costs 0.0 3395.0 3 11. 0 0.0 1435.0 0.0

Value Frozen Meat 3 / 0.0 0.0 5820.0 17460.0 17460.0 17460.0 Value Rabbit Pelt 4/ 0.0 0.0 1455.0 · 4365.0 4365.0 4365.0 Value Offal 2/ - 0.0 0.0 2 9 1 . 0 873.0 873.0 8 7 3. D

GVP 0.0 0.0 7566.0 22698.0 22698.0 22698.D

Cost of Rabb i ts &,./ 0.0 0.0 6000.0 18000.D 18000.0 18000.D Coal l/ 0.0 0.0 21.0 64.0 64.0 64.0 Water 8/ 0.0 0.0 1. 0 4 . D 4 .0 4.0 Electricity :J../ . 0.0 0.0 32.0 96.0 96.0 96.0 Smal 1 plastic Bags 10/ 0.0 0.0 10.0 3 1. D 3 1. 0 3 l. 0 Large P l astic Bags TT/ 0.0 0.0 4.0 12 . D 1 2 . 0 12.0 Nylon Bags ll/ 0.0 0.0 36.0 109.0 109.0 109.0 Paper Boxes ll/ 0.0 0.0 98.0 2 9 5. 0 295.0 295.0 Labour 14/ o.o 0.0 12 . 0 35.0 35.0 3 5. 0 OverheaTs ll/ 0.0 0.0 234. 0 710.0 710.0 710 . 0 Other Op.Costs . .1.§./ o.o 0.0 151. 0 454.0 454.0 4 5 4. 0

Operating Costs 0.0 0.0 6599.0 19810.0 19810.0 19810.0

Total Costs 0.0 3395.0 6910.0 19810.0 21245.0 19810.0

HVP 0.0 -3395. 0 656.0 2888.0 1453 , 0 2888.0

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4 I 75 I b / 7 / 8 / 9 / Tot TT ! TI/ TI/ TI / Ts/ TI!

Based on data from Feixian. From Working Paper 4, Attachment A, Table 4. Assuming a throug·hput of 1 million rabbits in Year 2 and 3 million rabbits from Year 3 onwards, 3% loss rate of purchased rabbits and O. 75 kg of boneless meat per 1 ive rabbit. Sale price Y8,000 per ton. 970 in Year 2 and 2,910 from Year 3 onwards at Yl.5 per pelt 970 in Year 2 and 2,910 from Year 3 onwards at Y0.3 per head. 2 kg· p e r h e a d 1 i v ewe i g h t a t Y 3 p e r k g . 800 tons at ful 1 production at Y80 per ton. 40,000 tons at full production at YO. l per ton. 800,000 kWh at full production at YO. 12 per kWh 200 bags per ton at Y0.07 per bag. 50 bags per ton at YO. 11 per bag. 50 bags per ton at Yl.O per bag. 50 boxes per ton at Y2.7 per box. 388 man-months (ful 1 production) at Y90 per month. Includes market fee, management fee to parent company and repaid co s ts. 2% of gross sales income.

-1800.0

-1800.0

17460.0 4365.0

8 7 3 . D

22698.0

18000.0 64.0

4.0 96.0 31. 0 12.0

109.0 295.0

35.0 710.0 454.0 .

19810.0

18010.0

4688.0

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<O O" ., '1> ,- .,....

'1> _,, ~ ::, ~ <O N

:u Q)

u ro ., .t--

Sha~dong Agricultural Develop~ent Rahbit Abc1t toir

NVP Rate of return= b0.1


Switching valuP~ for opport~njty rPst pf capitil = 12.0 I

PROJECT G'JP PROJECT lnvest~Pnt Costs PROJECT Operatjnr, Costs

IJITHOUT PROJECT BAI.Mlf'.t

NF.T BALANCF.

PRESENT VAi .IIF.S SWITCHING VALUES PER CENT

137212.2? -3505.11

-119750.4~ 0. 0(1

13956.f.7

-10.2 398.? 11.7

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lOY. higher opearating costs lOY. lower operating costs tOY. higher inve~tment costs IOY. lower investment costs

Switching val u~s 2/ for base case -

Gross value of production Total ln\·estment Costs Total Operating Costs

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RORY.

19.4 14.3 24.4 17.5 21.4 16.6 22.9

S.V.Y.

-1 4 .3 30.2 37.4

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CHINA


Summary of Results of the Economic Analysis 1 /

Township Rabbit Meat Angora Hair Rabbit Production Production

Multiplication Household Household

RORY. RORY. RORY. . 13.7 56.5 40 ,6Y. 9.4 25.4 22.0

17.9 95.5 58.4 11. 2 32.8 26.6 16.2 84.6 54.2 1 2. 1 48.8 36.7 15.6 66.4 45.4

S.V.Y. S.V.Y. S.V.Y.

-4. 1 -14.6 -14.8 10.9 135.4 164. 1 7.0 19.5 19.5

1 / Result.., of the County Pig Breeding are gi\·Pn 111 Table 9 and for Pig Fattening in Table 11. 2 / Si<1 l c-h1ng \'alues for an opportunity cost of capital of 12Y..

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Household Abattoir

RORY. RORY.

16. 2 60 .1 <O 13.0

49 .2 97.4 <0 20.4

46.0 92.9 14.1 55.4 18.7 65.8

S.V. Y. S.V.Y.

-1.5 -10.2 t. 6 398.2

22.6 11. 7

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:::, ~

1.1'1 -0 a, "O (l) , ~

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CHINA


RABBIT PRODUCTION AND PROCESSING

Introduction

Working Paper 4 ANNEX A Page 1

1. This annex provides background to the mission's comments on county rabbit proposals. Rabbits are the most efficient producers of meat and hair from cellulose rich feeds of any farm animal (monogastric animals, pigs and chickens, etc., are better converters of quality feeds). Rabbit husbandry is traditional and is particularly suited to the small scale farms that characterize the ·project area. China is the lowest cost producer of rabbit products and the dominant force in international rabbit product markets. Rabbit production is thus a most suitable investment for counties in Shandong with available feed •

2. Each county has proposed an integrated series of sub-projects from production through to primary processing of raw materials and some have proposed producing finished products. Following are some technical and market aspects of these proposals, no\ covered elsewhere in this report, that may be significant in final design •

Breeding

3. Rabbits are prolific breeders with a very short generation span. For this reason, it is difficult to prevent in-breeding in small production uni ts and conversely considerable genetic gain from selection canoe obtained in a short period from wel l-run breeding stations.

Meat Rabbits

4. There are two groups of traits important2in meat rabbit production . The first group, w.ith medium-high heritability {h =0.3-0.5) are tne size, growth rate, feed conversion rate and dressing percentage. The second group of traits, fertility of males and females, prolificacy, embryo mortality and port-birth mortality, have a low heritability ratio (0.1-0.2), but are greatly affected by hybrid vigor or heterosis •

5. The accepted way of maximizing production by breeding for these two groups of factors is through a three-tiered system where two lines {A and B) are obtained, which have already been selected for general genetic ability and specific crossing suitability. These lines produce AB hybrid fema les, from which the low heritabil ity traits are passed to the production meat rabbit. A line C is also selectively bred to emphasize the first group of traits , i n the conditions of the project area. These A, Band C animals are produced and selected in the first level breeding farms. AB females are produced in the multiplication farms and C animals are multiplied there and both are provided to farmers for meat production at the third level . The numbers must be carefully calculated to suit the proposed number of farms

and production at the farm level.

Hair Rabbits


6. Hair yield is quite heritable (0 . 3-0.6), the third harvest being the criteria of selection. The same three-tiere& system is suitable for hair rabbits as the technica l skills of selective breeding can be concentrated at the first level, l eaving simpl er multiplication for breeding and/or production animals for the second storage farms, located for ease of distribution to farmers, i n each area.

7. There is a techni cal argument for multiplication farms producing all females for hair production on the third level farms wi th no breeding done at this level as non-reproducing females produce the most hair (then castrated males, then producing females). This should be considered but it is possible that farmers will not accept this level of dependence at this stage as it would mean losing a valuable market in females which now occurs when ever prices rise quickly. If ,prices can be stabil i zed (see hair marketing below), then the advantage of carrying out all breeding at multiplication farm level would be clearer to producers.

Nutrition

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8. Pelleted complete feed for rabbits has become standard in many • intensive rabbitries in the world . Pelleting is proposed for all Shandong mills being supported under the !FAD project, and the technical advantages are:

i) Rabbit hair is usually not carbonized or scoured prior to spinning, so contamination by straws, powder or dirt is a significant cause • of downgrading. Hard complete ration pellets including the necessary fibre content minimizes contamination from these sources .

ii) ~icro-biological contamination of feed, particularly from crop byproducts is a significant cause of digestive problems. Pelleting causes heating which reduces some of such contamination. •

iii) Pellet i ng feed improves its storage characterist i cs by reducing mould and dust.

iv) Pelleting feed s ignificantly reduces upper respiratory disease resulting from powder in concentrates fe d as a meal .

v) Providing rabbits with sufficient indigestibl e f ibre is compl icated because the usual and cheapest sources of fibre (the farmer's own crop stovers, dry grass, etc.) are re l at ive ly unpalatable in an unprocessed form. Additionally, the best source of fibre (and other nutrient requirements) changes from season to season . If farmers could contract pellet their own rabbi t rat ion they could select an appropriate and least cost ration that wou l d minimize digestive problems and ensure a smooth transfer from one diet to another as seasons change.

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9. Rabbit feed formulation has different considerations than other small animals and the literature is limited. Table 1 sets out a comprehensive l ist of nutrient requirements.

10. The feed proposed for rabbits is entirely crop by-products or roadside grass and supplementary feed (or compound feed for breeding farms) • Some other provinces in China are evidently having success producing a cut and carry pasture for rabbits on marginal land and the appraisal team would benefit from seeing a discussion on the prospects for this in Shandong. Alfalfa Medicago sativa is recognized as excellent rabbit feed and Astragalus adsurgens appears similar. Perhaps some temperate species such as Italian rye grass could be grown to provide early Spring and late Autumn growth. Perhaps rabbits could be considered as an additional form of production in the areas where pasture is being established (Zhanhua, Wu Di and Chipping).

Rabbit Hair Marketing

11. China is the lowest cost producer of rabbit hair in the world and the dominant force in the international hair market. Most of China ' s production is of even length angora hair, suitable for blending with long staple rabbit hair and fine wool but not suitable for independent production Jf fine pure angora hair textile nor sui table for the high angora percentage fabrics (above 65% angora) in demand for the lucrative fashion market. This is due to the lack of long staple hair in the predominantly German rabbits used in the Chinese hair i ndustry .

12. Data on hair production and marketing from China is difficult to obtai n and may not be rel iabl e . Table 2 gives export statistics for 1979-1984. Prices are given in Table 3. These figures may understate the extent of hair exports in the form of yarn and texti les but do illustrate the ~olatility and cyclical nature of hair prices.

13. Hair prices are reportedly heavily dependent on fash ion and hair stocks in different stages of the production/ processing l ine. <1> Manufacturers do not begin processing hair if their own stocks are low. When they have sufficient hair for a production run, angora apparel is promoted. If i t becomes fashionab le , prices rise, drawing stocks from Chinese provincial stores and eventually from farmers. This initially causes production to fall during the re-stocking phase and then rise but insufficiently to replace the drawdown in stocks in store at higher levels • When stocks at the process i ng level are insufficient to maintain production runs (which normal ly happens at the top of the price cycle), production of rabbit hair fashion items drops drastically or ceases , causing a collapse in prices. Producers then run down numbers and stores slowly refill from the declining production base . As the productive life of angora rabbit is 3-4 years, there is a production cycle of about four years and this is reflected in the price data (Table 3) .

<1> This account of the rabbit hair marketing cycle was provided by M.J.L. Vri l lon, a rabbit speciali st with INRA, the French National Research Institute •


14. While this situation allows high speculative profits to merchants and processors, it does not induce producers to invest and manage hair production for the long term. There is apparent ly considerable scope for increased production of rabbit hair, but this will require coordinated efforts in marketing, processing and production and it may also require the introduction of French angora rabbits which produce more of the long staple angora hair suitable for fashion and spinning of pure angora yarn. The investment proposals for hair rabbits do not describe the marketing side in sufficient detail to know how these factors have been considered. There are limitations and opportunities in this market processing situation and it is recommended these receive careful consideration prior to final appraisal.

15. The price setting and most lucrative end of the hair market lies in the fashion industry (mainly in France). Th i s industry· requires a very close relationship between the production and the retail market to enable quick and accurate changes in style and fabric type. The spinning of pure or high percentage yarn is technically possible but much more demanding than the yarns now spun in China. These two constraints of distance from market and the technical difficulties involved in spinning high proportion angora yarn might be solved by seeking a commercial joint venture with a foreign company

· having strong links with the market and the necessary technical skil l s.

16. As lack of continuity in product supply is a signifi~ant constraint, there needs to be coordination between promotion, processing and extension with producers.

17. Jhere is reportedly a strong local and export demand for blended hair/wool · fabrics, such as for imitation cashmere pullovers. Additionally, rabbit hair has about three times the insulation capacity of fine wool and at the lower end of the rabbit hair price scale it may have a much greater use in China as a blended light weight warm clothing. If this were promoted, it might provide a volume market on which to base the proposed investments in production and processing.

18. There is another approach to stabi l izing hair prices and increasing the use of rabbit hair for which a model exists with the Australian sheep wool marketing scheme. There are similarities between the Chinese rabbit hair industry and the Australian fine wool industry. Both countries are the dominant low cost produter of its respective products. Both products are non-perishable and easily stored and both products involve f ashion and require promotion and price stabi l ity to encourage industry and retailers to "tool up 11 for the respective products.

19. The Australian wool marketing scheme has now been operating for nearly fifteen years and has been judged a success. The main features of the scheme are:

- A long term marketing programme aimed at:

i) promoting wool to the general public as a fashionable and .quality, utility natural fibre;

ii) promoting wool to the fashion and general textile industry as a fibre wi th assured supp ly, stable prices and for which considerable 11 free 11 promotion is available (see (i) above).

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A price stabilizing and warehousing programme where wool is purchased and stored when prices are low and resold when prices are high.

20. The scheme is organised as a corporation at national level and funded by a levy on wool sold through the scheme. To be successful in China it would also need to be organised nationally •

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CHINA

SHANl')(Nj AGRICU..ruw... DEVELOPfJENT PROJECT

1{1 n,~~l'.Nl)l;I) <.:1 11::\UC:/\I. C:OMl'()l,11 ION O F r 1'1(1)<;

I c II< 1-.: I u,1s1v1 :1.Y Hl './\IUH> KAIIIIITS or- OIFl'l. KENT Ci\ 1 E<,O Kll'S

(°on~,.o('nh ,-4 It,. ,•,I • .-. .. ua,•"'" tu c,,,u .. ,n ~V ("',.'t,~nt J,~ n,.,ttt:t

Crude proteins

Amino acids Methionine +

cystinc .... . Lysine ..... . . Arginine .... . Threonine ... . Tryptophane .. . Hist idine .... . lsoleueine ... . Phenylalanine +

tyrosine .. . . Valine ...... . Leueinc ..... .

Crude fihre .... .

Indigestible crude

O/o n/o 0/o "/o % % %

I<,

0.60 0.65 0.90 0.55

~ O. l ll 0.35 0.60

1.20 0.70 1.05

14

fibre.. ....... % 12

Diges1iblc energy . kc:1i/'kg 2 500

Me1aboli t:1hle energy . . . . . . . kcal/kg 2 400

Fats .. . ...... . 'Yo

Minerals

Calcium .... .. • ".:' % Phosphorus . . . % Pot:tssium . . . . •10 Sodium . . . . . . % Chlorine . . . . % Magncsiu,n . . . 'i'o Sulphur.. . . . . % Coball. . . . . . . ppm Copper .. ' . . . . ppm 2.rne . . . . . . . . ppm Iron . . . . . . . . ppm Manganese . . . . ppm Iodine ....... ppm Fluorine . . . . . ppm

Vit.imins

Vitamin A ... . Vi1:1111in O .... i Vit.cmin E ... -1 Vit:unin I( .. . • 1

Vit;11ni11 (' • .•. I Vi1.u11i11 II 1 ••• I Vitamin B: ...

1 Vitamin U,. . .. Vit:unin II,: .•. Folic ·"·icl I l'.1111 .. ;hcni.:. ;:~·i,i ! N,:,dn . . . ... t Iii,,,; .. .... ... I .

Ul/1,:t: UIA;t rrm l'I'"'

"""' Pl'"' Pf'IIII

''''"' 1'1""' ppm

l'I"" Pl'"' 1'1'"'

3

0.40 0 .30 0 .60 0.30 0 .30 O.Q3 0.04 0.1 5

50 50 8.5 0.2 0.5

" 0(1(1 CJCl(I

:,Cl (I

(I

2 (,

1 (1.(11

:i. - I :?II ;i{I I

tt .:! i

18

0.60 0.75 0 .80 0.70 0 .22 0.43 0.70

1.40 0.85 1.25

12

10

2 600

2 500

1.10 0.80 0.90

. 0.30 0.30 0 .04

0. 1 5

70 100

2.5 0.2

16

14

12

2 500

2 400

3

0.60 0.50 0.90 0 .30

· 0 .30 0.0-t

70 50 2.5 0.2

12011(1 CJCl(I

:'i(I

:! (I

I.:? 00(1 . j 900

(I

• i I

I I I :

!

50 2 (I

(I

II (I

(I

(I

(I

I I I i

·i "·-• , .~ .... ,~,-._, ... 'f. , • .,., - Rougeot Thebault 1983

13

15- 16

13

2 200

2 120

3

0.40 0.30

50 2.5 0.2

6 000 9(1(1

5(1 (I

(I

(I

(I

(I

(I

(I

ti

17

0.60 0.70 0.90 0 .60 0.20 0.40 0 .6S

1.25 0.80 1.20

14

12

2 500

2 410

3

1.10 0.80 0.90 0.30 0.30 0.04 0.04 0.1 5

70 JOO

8.5 0.2 0.5

10 0(1(1 9(1(1

5(1

(I

2 -t 2 (1 .0I

~ ~ (I

;,(I

u.::

\forki ng Pape r 4 ANNEX A Table 1

17

0.75 0.70 0.90 0.60 0.20 0.1.0 . 0.65'

1.30 0.80 1.25

16

12 2,YXJ

2, SOJ

3

0.60 0.40 Q.90 0.30 0.30 C.04 iJ.04 0.10

76 1~-5

0.2

10,cm . sm so a a a a a a-. a a

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CHINA

SHANOONG AGRICULTURAL DEVELOPMENT PROJECr

working Pape:- .. _ ANNEX A

Table 2

Ha ir Rabbit Export Data for the whole of Chin a

Export Trends

Year Tonne s

1979 2,675

1981 7,500

1983 7,900

1984 7,186

Brea kd own o f Export Dest ination for 1984

Year Tonnes

Japan 2 ,980

Ital y 2 ,923

Fran ce 455

Germany 350

Belgium 11 0

South Korea 238

Other 130

Total -1....ll§

Source: C.F.C.E. (French Centre for International Trade}.

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'/kg

100 ·

,. CHINA

S~ AGRICU..lURAL DEV£l0Pf,'EITT 'PROJECT

ArY;J:)ra Rabbits· - \.brld Prices 'Evolution

• • r • • • - - - • • ' • .. - • • • • • - •• - • - • • • • • • • • • • - • - • • • •

Work1ng Paper 4 ANNEX A Tab~e 3

80·. · - .. -· .. - - -t t I t t

6 01 · -. _( ... ~ .·. -. ~ ... -1. - .· - \ . -. ~ . -') . -. - : . -.. : . . . : t , 1 , t t I f I I . ' . . . . . ' . . . . . ' . . . . .. . . ' ' ' \:.: . . .- . . . . . ' . . . ' . . . 40 : .. ·, . . - . ; . - . ·,· - .. ·. - . - . r. - • -,· - - - , - ..• ; • - . ·,· - . - ; ..•. r ••• •, .••• '

PH IX ALrACi

...._ PHIX AHGOR?

.;c. P ll IX Cr1CII Erl IR~

• I

.;. · :.: .. :~:.: 20------·· - ·-"--"'-!.. .. -- ..... ·---!---- .... · ___ . ____ ., __ _ ._ __ -·-- --~- --·" --

1 1 1 · ;., I , I ""-..... I , I -; . . _..,.,:- . . . ----.;,__: . . . " . .-- . . ' /.~ -~ . .· . . .__.., . . ,:.~-"-.

~ . ...........-- : -,. . ' . . . ' . . . ---· 0-,!o-~--1-~ ..-:~ ~-;~~-+~~-· ~··~~~~~-1f-~~1-~~1-~~1-~~1-~~;::.......~~1-~~

74 7S 76 Tl · 78 79 80 81 02 83 8/s ns Ii(' IJ' I ,,

-"

r ·rancs con.;:..:.:. ... ~, ... ~ 430 0 • • · ... · .., • • • •·· - ' • ; - ' - "' - ·• - ••- ., ... • - • ,.. • "' • ..., • - • •,• "'._ • r - • - , • • "' • , •. • •- • ,- - • • ..- • "' • .... • • •• - ,. - • , - • •

8 00

700

$80

t:00

• • • • f • • t • • •

• ~ - ... J • .I - -·. - ... - ._ - ' - ! - J - -· - -·- .. ._ • ~ .. ! ..... -· .. -· - - •. - "" - !. - • - ! - -· -. . . . . . . . . . .• ..... 1 · ~--\- -!-·l·-,.i~\- 1 · i t I I t • t t I t t . . . . . . . . . . ............ . .. '\' . . ;.~--:--:--:--~-~-:-~--·-··:-··-· ·: __ 1. !: ... ·-·-::-B-· .. -<-!.!··'.·-:--:--: · ~-!-~ .. -:--:--:! : ·: ~-~ . . ... . .. ·1 F ........ - ..... .

. . . . .• . . . . ~ --L- . . . . . . t • • • • • • • •

• • ! , , , • , • PR I CES - - . • • • . • • • • • • · · \ · -~-:·,--:·-:· -:·-~· :- : us·.$-±-- :-:-·:- ·:··:-·~·:·:--:--:·-:· ·· -:-·\·:

• • • • • • • • • • • • • • • ' • • • • • f f • • • • • - • • •

. : . ; ·. A-:--:· -~ -: -; -;- -: =- -:- -:- . : - ; . : . ~ . ~- -:- ·:· - ~ . : . ; . ~. -:- . :· . :- . =/:\. ~ . ·> :· . :- / . ; . > ~ • : /:\: • : • : • : • : • : • : • : • : • : • : • : • : • : • : /. : • ! --:--~.: .. ~ .. ~ .. :. _: .. : . : .-:E.: _:_ -:- . ~.: . ; . ~ . ~ .. : .. :. -: . : . :/\·: .. : .. : .. : .... : . : .. :/..~. :. -: . : . :\j: : \· :;·:": : : :, ; : : /· :"'-: : : .: : : : : ~ : :;: : ~< : : : : : : . . . . . - . . . . \ . . . \' ·~· . . . ~ ........... : . . . . . . . . . . . . : . : .. ' ....... - .. -\· ... - .. _ .• ··- . ~ z . ! • ., -·. ,A. - •. • - : • - .. ' •. , .. -::--..... . : .•• : . ., ..•. - • . . ' . .•. : - • . . . ·"-.' .• . . ·1 . . . '/ . . . :/. . . ;· . . . . . . . . . . . . . . : : : : . : : : : : : :...,....: : : : : : : ~ : : : : : : , : : : : : : : : : :

.. ~. ! - ~. ~ - -:- -:- - ~ - ~ - ; - ~ - -:- -:- -~ - ~ .. ; - ~. -:- -:- -:. -:-\~ . ! - ~ - -: .. :. ·:- - ~ -! - ; - ~ . . :. -: .: .. ~ .. ; . . . ;. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . I":\. . ..•••••. •• •• I • • •••••••• •• ••• ..__..y. .: ·"' . . . . . . .. . . . . . . . . . . . . . . . ... . . . . ....... .. . . ~ . . . . . -... ...... ~ ... ,,· .. .. ...... ~ r

.: · ... :. -:-·,:/;-~~:..::.:~---.:.:. ·:- . :~;.:.~-----~-~.: -: . ;~.:-·~:..:~·.: .v:·--~-~. './.--.:: ~ O ,_;-i_; __ j _. ;_; . ....;-i-..;-._+-~--i--;·- •-~-i-_;-~-~-! -! · ,_ . ;. -i-;- ; .. +-; : : . : · ~

7~ ~ 76 7~ ic. S'"~ 8:4--p . :-

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PIG PRODUCTION ANO MARKETING

Working Paper 4 ANNEX B Page 1

Introduction

1. This annex <1> provides background to the mission's comments on county pig raising proposals .

2. Pigs on a carcass weight basis comprise 88% of the meat produced in China (in 1985). The industry remains dominated by household producers who utilize mostly by-products to produce very fat pigs from local breeds and manure for their fields. Pig raising is usual ly a multipurpose sideline to farming and considering present prices for fresh fat pork in rural areas is ef ficient .

3. In response to urban demand, recent Government policy seeks to encourage intensive production of lean pork in special i zed households. County pig raising proposals under the project are aimed at this market. Following are some technical and market aspects of these proposals not covered elsewhere in the report, that may be significant in final design.

Breeding

4. The desired breed characteristics for traditional pork production are not al l compatible with the desired breed characteristics for intensive pig production.

5. Exotic pigs have been bred for maximum efficiency in conversion of quality feeds into relatively lean meat. Local pigs on the same feed begin to convert feed into fat rather than meat at an earlier weight thereby becomi ng less effici ent converters (as fat deposition requires 2. 5 times more energy than lean meat deposition).

6. The traditional feeding technique, wh i ch emphas izes the use of low quality, high fibre feed and roughage , is efficient as it lowers energy and protein intakes, slows growth rates and reduces the excessive fat deposition that occurs ~ith high energy feeds.

7. The breeding programme outlined by Laiwu county describes a local x exotic breed hybrid cross- breeding programme. This makes maximum use of hybrid vigour, and makes breeding allowances for the proven disease control and feed quality conditions in China at present and may be the best approach in the short term. But a review of relevant literature <2> suggests this may

<l>

<2>

Much of the information in this annex has been adapted from the World Bank Livestock Sector Study, January 1987. This is discussed in more detail by M. Bichard and P.J. David in 11 Producing More Pigs per Sow per Year - Genetic Contributions", J. Anim Sci, 63:1275-1279 .


ndt be the most economic approach to breeding for intensive lean pork production in the long term. The following table is a rough comparison of total meat production per sow per year, as generated by local x local, local x exotic and exotic hybrids under intensive specialized household management conditioQs (in all cases with maximum use of high-quality feed) . Local breeds are reported to have a higher reproduction rate than exotic breeds but this table illustrates the more than balancing disadvantages of the local breeds poor growth rate, killing-out percentage, carcass lean percentage and confirmation: This argument is presented .to provoke discussion on the long-term direction of the intensive pig industry as these factors have dictated the development of the industry in Thailand, Singapore, Japan and Taiwan in recent years, against the Government policy to encourage local breeds in many of these countries.

Lean Meat Production per Sow per Year from Local, Local x Exotic and Exotic Crosses~/

Local Local x Exotic x Exotic Exotic

Pigs raised/sow/year (No.) 14.0 13.7 · 14.8 Market weight, 8 months, live (kg) 93 97 105 Liveweight marketed/sow/year (kg) 1,310 1,320 1,560 Lean carcass meat (%) 40 50 55 Lean carcass meat (kg) 524 660 858 Increased lean meat over local x

local (%) 26 64 Increased carcass retail value (%) b/ 16 46

i/ Based on Table 1.

Q/ Assuming the market price of lean is 260% greater than the price of fat, as observed in Fuzhou urban markets in 1986.

8. Pig Feeding. The mission was not able to obtain comprehensive data on pig feed factors in the project area. Some observers have commented on pig feed formulation problems common in China in 1986. These are repeated below because they illustrate the importance of pig producers having access to: . (a) exact, impartial information on feeds being sold to them; and (b) the likely benefits of competition in feed supplies.

9. Feeding Practices and Feeds. In all areas visited , feeding was the weakest point in pig production •. The following problems generally occur :

a) because of an insufficient grain proportion within the total feed , energy levels were low;

b) total protein and protein qual i ty were insufficient;

c) often too much green feed was fed in combination with compound feed;

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d) insufficient attention was paid to supply of minerals and trace elements and the Ca/P ratio, even in compound feeds;

e) amounts of feed used were often too low and nutrient levels therefore below standard;

f) animals (particularly younger ones) suffer from the practice of producing a single form of compound feed.

10. It is common for farmers to supplement their own grain, middlings and green feed with purchases of compound feed which, however, has been formulated as a complete feed rather than a balancer, as would be appropriate. The "dilution'' of complete feeds by combination with farmavailable feedstuffs tends to reduce the concentration of nutrients, minerals, vitamins and other additives.

ll. There is, in addition, reason for concern about the quality of complete compound feeds distributed by some Chinese feed mills. For example, a pig finisher produced by one mill visited ~1> used a formulation reported to consist of 24% whole rice, 17% broken rice, 15% rice bran cake, 10% rice bran, 7% wheat bran, 4% soybean mea 1 , 9% rapeseed mea 1 , 4% f i shmea 1 ( 62%) , 8% wheat flour, and 2% minerals. The claimed analysis of this feed, and our estimated analys is based on the reported composition, are compared below:

Claimed Estimated

~/ Not estimated .

Met. En . .....fE_ _l_f_ ~ P Lys. Meth. (Ca 1 I kg ) . . . . . .. . • . . . . . . ( %). .............. .

2,900 2,422

14.6 6.03 / 17.1 6.90

1. 02 0.8 0.500 - ii - ii 0.890

0.6

--------------------------------------<1> A visit conducted by the World Bank Livestock Sector Study Mission

in 1986 .

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Wor ~ · , '2 Pape r 4 Anne x B Ta b l-:' ., ·

.CHtNA

SHANOOO:; AGRICU..TURAL DEVELOPf'1:Nr POOJECt

Estimated Physical Paraneters .. for .Pig ·prociJction

--------------------.=.=-=s-:-i-,-tu_a_t....,1,...o-n---=F-o-r -9i:::-:--:&:---=S-t -at- e--:F:-e-m------·--;1-&-t -io-;;al

Phy s i cal Pa r!!')otere

Ptge Weened pe r Sow per Li tte r Lftt~rs per Sow pe r Year Age a t Weeni ng ( days) We i ght a t Weeni ng (kga) Wei ght at Sale ( kge lfvewefght) Weight gdf n rrOIII Weening (gma/dey ) r

Age a t Slaughter (months)

Mortel f ty Sowa:% Oeethe pe r year Fattener s :% Deaths per pi g weaned

Feedi ng Sows (kgs per sow per year ):

Fi ne Feed Balanced Concent r ate Gretna, Bran etc.

Total Ftne Feed Coar se Feed Green Fee<l

Weaners (kga per pig to 60 days) : Bal anced Cont ent r ate

Fa t teni ng Pi gs ( kge per pig Ff ne Feed

6elencad Concent r ate Gretna, Bren etc.

Tota l Ffne Feed Coerse Feed Green Feed

Indices of Perfo naance Ptga Weened per Sow per Year

r!l,tened):-

Fattened Pfga Sold per Sow per Yea r Livewetght Sold per Sow per Ye a r (tons) Balanced Cone. per Sow 1>9r Year (tone) Total Feed par Sow per Year Adj ueted Feed per Sow · per Veer ( tone)

(green feed on a dryaatter baste)

Convereion factors Total Feed per Unit Live Weigtit Gain AdJu-1;ed Feed per Unt t Live Wetgtit Get• Fine Feed per Untt Uva Wetgtit 8atn

~ Present Sftuet forr- -Potent i al- hvg 1984 Local Local Exotf c Exotic Loc~l Bleck x Type Type Uleck Breed Exoti c Hybri d Hvbr1 d Breed

8 1.8

60 10 93

375 9.2

-600 200 800 180 360

8 1.75

60 12 97

425 0. 5

2 . 01 2 . s,;

6 1.9

60 12

105 465 e.~_~:

2~t~ 2 ~s,; ;·

750 900 200 100 sso 1·, 000 1 80 180 360 360

1 2 12

250 270 290 50

340 25 60

120 70 370l!! 340 ·v & . 25 651.Jl.. 60

14. 4 14.0 1.3 1 6.17 6.oo 6.98

6.1 6.3 4.7

14.0 13 . 7 1.32 5.76 7.48

6.52

6.6 4.9 4.S

15.2 14 .8 1.56 e.22 8.02

7.02

5.2 4.5 4.0

9 2 .1

42 12

105 ~00

. ] . 5 - · ·:· r . . .

{,/;.600 . o

1 , 000 180 360

8

300 0

300 25 60

18.9 18. 4 1.93 6.68 8.79

7.61

1 . ~ 90 15 SOL!!

180 14.7L! ,

'i-.ai . •. 3·. s,;

70 530 600

, 1 80 1,100

0

30 325 :}551.Jl.. ~001.Jl..

i ,OOOI.Jl..

10.56! 10.1~ 0.91~ 4 . 20

18 .62

7 .64

18.2 · 8.-4 4.6

~ Iapl1ed by natt onel etat tst tca on 1983 end-year stocks of &awe end other pigs, and 1135-i Ql.tllberc aleughtared end caroecc wetutlt. All ottler figure• ere a1ca1on eet1aatae.

Hiea1on eet1aetaa. ·ffowever, net1onel curvey ·date given 1n State Stettettcal Bureau. ~ J!!!!:!1 Stattetjcal Yeetboo6c 1985, p. 189 euggeet considerably better eff1 ~1 encya f o r f 1na feed e nd coaree or areen feed Nl9f)8ct1vely, 175 end 731 kga/pig · for_ Sier 237 ~ 674 kge per pi g for backyard pn,ducere, pree-.b l y using local bled( breeda. . The corresponding l i ve weight getna ween1ng-to-aleugfltar were 71 end 89 kga~apaoth e !l.y .

Source: WB Li vestock Sector Study, Annex 3, TAbte . 10.

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CHINA


POULTRY PRODUCTION AND MARKETING

Introduction

Working Paper 4 ANNEX C Page 1

1. This annex <l> provides background to the mission's comments on . county poultry raising proposals.

2. Chickens on a carcass weight basis comprise 8% of the meat produced in China (in 1985). The industry is still largely a household operation with birds sJld live. The opening of agricultural trade markets in 1985 has legalized urban free marketing of live birds. Egg production comes increas ingly from intensive specialized households raising between 1,000 and 3,000 birds. Most were birds containing imported breed lines and production efficiency has significantly increased. Government now encourages production of broilers in similar specialized households and project proposals are aimed at this market. Following are some technical and market aspects of these proposals, not covered elsewhere in the report, that may be significant in final design .

Breeds

3. The breeding policy is not clear from county proposals. Many intens ive poultry breeding stations tend to cross imported breeds with local breeds to obtain more "local flavour 11

• This has genetic and therefore financial risk because it is too difficult to produce pure grandparent lines from the normal parent stock provided by the international breeding companies. There may be benefit from crossing local and exotic breeds in order to select for qualities mor~ advantageous for backyard poultry production, but as with pigs this is unlikely to be the most economic solution for the potentially highly competitive intensive broiler industry.

4. International Poultry Breeders . There are approximately five commercial breeders of broiler type chickens which collectively supp ly 95% of all intensive breeding stocks in the world . These breeders have spent and continue to spend millions of dollars on research and development . Using highly specialized poultry geneticists, nutritionists, physiologists, statisticians and veterinarians . The expense of developing a major domestic programme, based on local breeds, would be prohibitive and would probably fail to develop breeds as productive as those already international ly available.

5. Pure Line Breeding Programme. In order to produce 200,000 bro iler chicks yearly or 4,000 per week, 40 weekly placements of two f locks of 1,200 breeder females are required . To produce the two breeder flocks, grandparent flocks of 1,100 female-line females and 200 male-line females are required . Pure line flocks of the following size, after selection , are required to

<1> Much of the information in this annex has been adapted f rom the World Bank Livestock Sub-sector Study, January 1987 .

produce the grandparent flocks:

Male-line male line Male- line female line Female-line male line Female-line female li ne

Males

30 30 30

130

Sex

Working Paper 4 ANNEX C Page 2

Females

300 300 300

1,100

•

Improvement of the genetic stock requires placing approximately five times • as many females of each line and 15-20 times as many males of each line. This selection intensity will increase growth rate between 40 and 60 grams per generation . Several more grandparent f locks could be produced from the pure line flock as the need for grandparents increases. With complete ut i lization of the grandparent eggs, approximately 39 breeder females can be produced from each grandparent female-line female housed •

Processing and Marketing

6. The technology involved in broiler processing is well known and exists in China. County proposals include modern processing lines to take expected production, but there are evident marketing risks in this approach t hat need further consideration.

7. Considering · the thriving sales of live birds (or custom slaughter) in Hong Kong and Taiwan today, it is unlikely that frozen processed poultry wi l l f i nd early acceptance among consumers. Factors favouring sale of live birds include at present: (a) seasonality of production and consumption are even more pronounced than for pigs, making efficient utilization of processing facilities very difficult; (b) consumers have suff ici ent leisure to process the bird; (c) due to current high pri ces for poultry and low cost of labour, custom slaught er ing i s not expensive (one hour of unskilled labour costs about 10% of the price of one chicken); and (d) as birds sold for meat are now mainly cu 11 s, consumer II hea 1th inspection" of the 1 i ve bi rd is the safest guarantee of product quality.

8. There wi l l be a place for chicken processing in the hotel and catering trade as intens ive production increases, but Shandong with its centralized industrial urban markets may provide a more profitable and secure market for live/fresh or slightly chilled broilers than for frozen production for some time to come.

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CHINA


Working Paper 4 ANNEX D Page 1

MARKET CONDITIONS AND PLANS FOR ANIMAL HUSBANDRY PROPOSALS

1. Under the proposed project, a variety of livestock products will be produced. These include: rabbit meat, rabbit hair yarn , rabbit fur, beef , mutton, broilers, down feathers, goose meat, and cattle and sheep hides • Marketing conditions and plans for these products are discussed to a greater or l esser extent 1n each of the county or prefectural project proposals. A summary of these discussions is giv~n below.

2. Most of the reports refer to the findings of a recent study by the Chinese Academy of Hgricultural Sciences (CAAS), entitled "Domestic Animal Husbandry Development to the Year 2000 11

• The report was not seen by the mission, but apparently contai ns recent data on livestock marketing conditions in China, as we ll as market forecasts using a 11 trend prediction analysis" method. It could be useful for the appraisal mission to obtain a copy of this report. In addition, several counties have referred to a study by the China Foreign Economic Trade Consulting Company (CFETCC), which also used trend prediction analysis methods to produce export market forecasts for Chinese products.

Rabbit Meat Market (Yi Yuan, Yi Nan, Teng, Meng Yang, Yi Shui, and Fei Counties)

3. The counties cite the low per capita meat consumption in China as one of the major indicators of future market prospects for rabbit meat. This factor , combined with increasing domestic incomes, indicates that there is a great potential for increase in rabbit meat demand domestically. During the period from 1980 to 1985, domestic demand for rabbit meat increased by 25.7% while meat availability only increased by 7.2%. At present, demand is still far greater than supply.

4. The export market demand for frozen, boneless rabbit meat is also expected to increase according to the projections made in the CAAS study. Rabbit meat has a high percentage of white and lean meat which makes it suitable for use i n meat blends and popular in foreign markets . In Yi Shui County , a meat processing plant that was established in 1974 has had a standing guaranteed order for the entire amount of their rabbit meat production from the Foreign Trade Bureau. This meat is al l exported •

Rabbit Hair Yarn (Yi Shui, Fei, Yi Yuan , Yi Nan, and Meng Yang Counties)

5. Several counties propose to produce rabbit hair (angora) yarn and market this intermediate product domestically and abroad, while other countries propose to use the yarn themselves to produce knitted clothing. Angora yarn is expected to have a rapidly increasing market in Japan, West G·ermany, Italy and Hong Kong as these countries are increasing their production of angora and angora-blend clothing. In addition, angora yarn is being used in greater percentages in textile blends: from 20% of the total blend in the past to 40%-70% at present. Angora blends with silk and linen are increasing in popularity as well. For these reasons, it is expected that


the demand for angora yarn on the world market will increase rapidly in the near future. Domestic knitted goods producers will also expand their demand for angora in response to the expected increase in international and domestic markets for angora clothing.

6. In 1986, China exported 2.87 million items of angora woo l clothing and sold 2 million items domestically. Export demand forecasts for angora clothing were included in the study done by CFETCC.

Chicken Meat Market (Shang He and Ping Yi Counties)

7. Ch i cken is a preferred meat product in China and therefore expected to be in increasing demand as per capita incomes rise . Annual per capita chicken consumption is low in China at present (1.5 kg/person in 1986). Between 1980 and 1985 domestic chicken meat sales tripled . Tables showing production and demand for chicken meat from 1980 to 2000 are given in the county proposal.

Beef and Mutton Market (Chi Ping, Zhanhua, Wu Di and Shen Counties)

8. Beef and mut ton market :onditions and plans were generally not described in any detai l in the county reports . In Wu Di County, however, the market per Bohai Black cattle and beef products are reported to be good. In 1987, 500 head of Bohai Black cattle were exported to Hong Ko ng . During the period from 1985 to 1987, the county sold 125.6 tons of beef to Shandong Province and 1,316.3 tons to Beijing and Tianjin. Good market contacts exist between the cou nty and Beijing and Tianjin .

Sheep Wool Market (Zhanhua, Shen and Chi Ping Counties)

9. Shandong Province is a net importer of wool. In 1986, the wool demand among woollen mills located in the province was 25,666 tons, while production was only 10,224 tons. 9,600 tons were imported from other provinces and abroad. 8% of the wool used at the Liao Cheng woollen Mill is imported (either from other provinces or abroad). Wool has a ready market in the province which is expected to expand in the future.

Pork Market (Lai Wu Prefecture)

10. Lai Wu Prefecture has included a relatively detai l ed market study of pigs and pork products in their project proposal. The prefecture intends to expand pork production for local (within the prefecture) consumption as well as for export to other areas in the province and nation . In 1985, Lai Wu Prefecture sold 180,000 head of pigs within the prefecture and 58,800 to consumers outside the prefecture. In 1986, 218,500 head were sold locally and 57,200 head to outside consumers. The prefecture has been designated as an ''iron and steel manufacturing centre" and this expansion of industry has resulted in increased demand for pork.

11. Pig production and pork prices are closely related to grain prices. In 1987, following a national inc~ease in grain prices, pig raising declined and pork prices rose. In Shandong Province, pig production dropped by 17% between 1986 and 1987 because of the effect of higher grain prices. The. prefecture is committed to maintaining an i ncreasing level of pig production, however, despite fluctuations in grain and pork relative prices. In 1988, the prefecture will extend Yl00,000 in interest subsidization in

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pork production loans t o producers, lend another Yl. 38 mi l lion and supply 3,200 tons of feed at a low price to pig producers, in order to encourage production.

Goose Feathers and Down Market (Yi Nan County)

12. Goose feather and down will be produced for both domestic and international markets. At present, Yi Nan County has one feather processing plant which has converted from a hide process i ng plant in 1983 and makes products under the "Wh i te Swan" label. Their products have good markets domest ically i n Be i jing, Tianjin, Yi Nan and Yantai and 20 other ci t i es in Shandong . 50,000 further product items are sold annua l ly through the Pa Lian Hua Lin Company and 20,000 items through the Yi Nan People's Market .

. Feather products are sold abroad to Japan, USA, France, West Germany, and Poland as well as other countries. In 1986, the value of feather good exports was US$2.5 mi l lion. The demand for feather products is far greater than the supp ly. In 1985, a local feather factory had to turn down a contract offer with West Germany because it was not able to meet their demand.

Rabbit Fur Market (Yi Nan, Yi ·Shui and Fei Counties)

13. According · to the results of the .CAAS study, rabbit fur demand is expected to experience a substantial expans ion in the near future. An important development iD rabbit fur marketing in China is the recently developed fur dyeing process, which can convert ·rabbit fur into high-quality simulated fox furs. It is expected that the use of this process will result in a product with an expanding domestic and foreign market •

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CHINA


LIVESTOCK DEVELOPMENT SUB-PROJECTS

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Working Paper 4 Attachment 1

Page 1

Meng Ytng County Animal Husbandry Development Project Plan

Introduction

Meng Yang County is located in the Yi Meng Mountain area. This county has only an animal husbandry development component under the proposed project. A large part of the County's proposals involve expansion of existing facilities. The resources of the county are detailed in a feasibility ·study prepared ·by the county in Chinese. A summarized trans 1 at ion of the proposa 1 s follow together with mission comments.

I. Project

1.

(a)

Content

Improved Rabbit Br~eding Farms . County Improved Propagation Facility

The plan is to expand existing county facility, which already has 3,000 mu mountain land, 1,000 rabbit pens, 12 buildings and 900 German hair rabbits. The plan is to add 600 female rabbits, 120 males and 200 reserve rabbits . Annual production of breeding rabbits will te 12,000 head p.a.

(b) Township Improved Breeding Facilities

2.

11 township faci lities will be built under the project. Altogether 2,000 female rabbits, 400 males and 1,100 reserve rabbits will be added. Annual output of rabbits will be 48,000 breeding rabbits.

These township and county rabbit breeding farms will supp ly 2,000 rabbit production specialized households and 22,000 11 social" production households with improved breed rabbits each year. The 2,000 specialized households will produce 1.6 million rabbits per year and the 11 social 11 houeholds wi ll produce 2.2 mi llion market rabbits.

Feed Mi 11

The plan is to expand the existing county facility. At present capacity is 6, 000 tons . After expansion, capacity will be 15,000 tons. The expanded facility will supply the county ' s Township Improved Breeding Farms within a radius of 50 km .

3. Meat Processing Factory


Page 2

The plan is to expand the existing county facility. At present there are three production lines:-

boneless meat line carcass line canning line

annual output " " II II

- 1,800 tons 500 tons

1,000 tons

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• The plan is to add one rabbit meat processing line. After expansion, the total number of rabbits that can be processed will be 3 million. 2,850 tons of boneless rabbit meat will be produced annually. A water disposal facility, water •

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purification facility, a sediment settling pond and a methane-generating pit are also included in project design.

Rabbit Hair Spinning Factory

The plan is to expand the existing county facility. With expansion, the facility will produce 600 tons of mixed fibre per year. This material will be used by the newly constructed sewing factory to produce 200,000 rabbit hair undershirts per year.

Technical Service Centre

The plan is to increase the number of staff, equipment and services.

II . Project Management Organization

All project activities will be under the superv1s1on of the Meng Yang County Animal Husbandry Commercial Integrated Development Company. For detailed staffing see Table 1. A gradual presentation of the proposed integrated development is set out in Figure 1.

III. Training

Most of the new managers and workers to be hired under the project will be trained by their original units. Some training will be done by the technical service centre.

IV. Miss ion Findings and Comments

1. The county was visited by the livestock specialist and the proposals discussed with county officials. Two farmer interviews were conducted with hair rabbit farmers who had been in the

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industry over 15 years and the textile plant was visited . e 2. Livestock population figures supplied to the mission in the field

(Table 2) indicate that ruminant numbers are increasing gradually, chicken, pigs and geese are static or declining while rabbit numbers both meat and hair are increasing rapidly.

3. Historical county grain production figures were not presented but those figures that were (Table 3) indicate the county is in aggregate a deficit area for high protein feed al though it does export sweet potatoes and by reports peanuts. This indicates availability of storable rabbit feed for producers in the form of

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Page 3

sweet potato leaf and peanut hay and peanut cake. Additional ly there are spring and summer grasses which provide good nutrition when young. Rabbit hair production has a long history in the area and many farmers consider rabbit raising as a good form of supplementary income .

4. The county's feasibility study is fairly detailed and in general the proposals are justified although the marketing situation, particularly regarding rabbit hair is not described sufficiently .

Expansion of Rabbit Breeding Facility

Estimated investment Yl,415,600

This proposal seems well founded. There is a need for regular long term supplies of specially bred rabbits for both hair and meat production and this is best done through a two-tiered breeding and multiplication scheme, of which hair breeding facility is the first. The county study refers to scientific breeding system and producing hybrids for meat production but more description of the breeding strategy would aid appraisal. A discussion on breeding strategies is contained -in the main report .

Township Improved Breeding Facilities

Estimated investment of Y368,800

These facilities are. aimed at multiplying the rabbits produced at county level for sale to production and specialized households and is justified. (A note on breeding systems is contained in the main report.

Feedmi 11 ....


There is a demand for compound rabbit feed for the breeding and multiplication farms and also a need (if not demand) for a pre-mix for production farmers but the county has not demonstrated that this is best provided by a feedmill establ i shed i n t he county. This is significant as the county is apparently a high protein feed importer and might save freight costs .bY importing the prepared feed and pre-mix instead of the raw material . There are reported to be institutional reasons why sma l l feed mi l ls can operate more economially than larger units. Perhaps this competitive advantage can be described to justify the proposed investment.

Meat Processing Factory.

Estimated investment Y3,660 ,000

This facility was not inspected by the mission but there is a good export market for frozen rabbit meat and evidently good local demand. These markets can compete for the same stock and i n an environment of rising local meat prices there i s a potent i al for the expanded abattoir facility to be under-utilized un l ess :he procurement pricing strategy is flexible. In general terms the abatto i r expansion is supported . A discussion on abattoirs appears

in the main report.

Expanded Rabbit Hair Spinning Factory

Estimated investment Yl2 ,558,300


Page 4

The textile mill was visited by the livestock specialist who has no technical expertise in textiles. The factory is new and is equipped with a range of imported carding, combing and spinning machines, which were worki ng at the time of inspection. The county's feasibility study does not describe the marketing system for the proposed expanded factory in sufficient detail for appraisal. There are some special factors in rabbit hair marketing and these are discussed in the main report.


Estimated investment Y368,800

This proposal is supported but it is noted that training in the operation of all. technical eqµipment to be purchased is essential.

Management Suppurt • Estimated investment Y2,330 , 000

This component includes offices and support facilities and a significant allowance for working capital.

Estimated total investment of Y21 ,402,600 (Tables 4 and 5).

(Note: These costs require revision in timing, unit costs and contingency provisions).

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CHINA

Working Paper 4 Attachment 1 Table 1


Meng Yang Project Staffing

Parti Admin. Management Production Total Sub-Project Personnel Personnel Personnel

Improved Breeding Farms ]j 6 19 107 132

Feed Mi 11 3 11 16 30

Meat Processing Plant 13 24 163 200

Rabbit Hair Spinning Plant 6 394 400

Technical Service C.entre 7 20 27

Project Management Organization 4 7 11

Total 33 87 680 800

l/ Does not include township breeding farms •

Cattl e

Sheep

Meat Rabbit

Hair Rabbit

Geese

Chicken

Pigs

CHINA



Meng Yang County Livestock Population Trends

(1 000 head)

1982 1983 1984 1985 1986 1987

16.3 17.2 18.8 17 . 7 20.0 21.0

55.6 58.7 66.1 60 .6 63.8 75.4

10 10 20 40 100 . 120

100.3 230 470 1,060 720 711.4

200 210 278 212 210 197 . 1

820 840 1,112 848.0 840 788.3

170.0 180.0 187.0 194.0 160.5 156.3

Source: Animal Husbandry Bureau.

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1982 --In Out

Corn - -

Wheat 99,350 17,400

Sweet Potato 143,000 56,050

Soybcon Cake 101. 950 27.000

Sorghum - -Other 28.000 3.700

1982 In Out

Corn - -

Wh<'ll t 0.334 0.334

Sl'CC'l Potato o. 188 0. 1116

Soyhca11 Ca kC' 0.43 0. 43

Sorghum - -

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CHINA


Meng Yang County - Grain Trade Trends

1983 1984 1985 1986 1987

In -- Out In -- -- -- --Out; '· In Out In Out In Out

! '000 tons)

- - 70,000 - 240,000 - 9.900 - 102.100

98.800 11, 600 105.100 16, 350 74,100 14. 500 110. 100 14', 500 183,000 119.900

62.700 1<I. 500 116.700 25.900 17,450 :!5,350 26.100 25.350 25.250 32.250

90,500 750 90,450 750 9 1. 800 I ,4 50 9 1.850 I .600 93. 000

- - 900 - - - 600

15,350 I. 650 12.850 1. 800 56 , 550 ·1:iO 115.550 I, 350 100.550 29,970

1983 1984 1985 1986 1981

In Out In Out In Out In Out In Out

I Yuan / kg) .......... .. ....... . ........................... .

- - 0.234 - 0. 332 - 0.332 - 0.332

0.334 0.334 0.334 0. 331 0.'1 53 0. ·I S) 0.'153 0.453, 0.453 0.62

0. 188 0. lllll 0. 111S 0. 11\S 0.25:l !1 . .,?;,'\ 0.253 0.253 0.253 0.253

0 .,I) !1.1 J 0. ,1J o. ,u (1.(i!l (l,( ,O 0.69 0.69 0.69 0.7

- - 0.238 - - - 0.318 0.46 0.38 0.38

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CHINA SHANDONG AGRICULTURAL DEVELOPMENT PROJECT

Table 606. Yi Meng Mts. · Livestock Processing - Mengyin County Detailed Cost Table

I. INVESTMENT COSTS ·---------------A. Rabbit Abattoir

-------·------· Land Acquisition Civil \Jorks Equipment Training \Jerking Capital

Sub-Total Rabbit Abattoir B. Feednill

-·--- ---Civil \Jorks (1245 m2) Equipment Training \Jerking Capital

Sub·Total Feedmill C. Rabbit Hair Factory

Unit

Ha

Land Acquisition Ha Civil \Jorks (5900 m2> Equipnent Vehicles \Jerking Capital

Sub-.Total Rabbit Hair Factory

Total INVESTMENT COSTS

Total

(Yuan '000)

ouantity ............... 1989 1990 1991 1992 1993 Total ==== ==== ==== ==== ==== =----

0.8 0.8

Unit Cost

150

Base Costs -------------------------------------------

1989 1990 1991 1992 1993 Total ======== ======= ======= ==== ---- --------

120.0 410.0 1,230.0 570.0 80.0

50.0 - 1,200.0

~-·----1,100.0 1,360.0 1,200.0

91.2 154.7 319.0

5.0 500.0

-------- ------- -------410.2 159.7 500.0

120.0 · 1,640.0

650.0 50.0

~ 1,200.0 --·- ---··---

· 3,660.0

245.9 319.0

5.0 500.0

- 1,069.9

2.7 2.7 120 320.4 320.4 1,185.0

- 8,182.9 70.0

1,185.0 8, 18'2.9

70.0 - 2,800.0

------- .............. .. 9,758.3 2,800.0 .............................

11,268.5 4,319.7 1,700.0

11,268.5 4,319.7 1,700.0

2,800.0

- 12,558.3 - -----··· - 17,288.2

======== 17,288.2

======== ======= ==----- --== ==-- --------....................................................................................................................................................................................................... ~ay 9 , 1988 14:18

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Table 605. Yi Heng Hts. • Livestock Production· Hengyin County Detailed Cost Table

I. INVESTMENT COSTS ---------·------A. Rabbit Breeding Farm

-------------------· Civil Works Equipment Stock (Rabbits) Vehicles Working Capital

Sub·Total Rabbit Breeding Farm B. Technical Service Centre

. .................... Office Equipment Vehicles Training

Sub·Total Technical Service Centre c; Management Section

------ ------ ------Office, Dormitory etc. (250 m2) Vehicles · Working Capital /a

Sub·Total Management Section


Total

--·-----·-----------------------------/a Funds to support livestock farmers

(Yuan 1 000)

oua1:tity ... -....... - ...... ~ ... -- -.- ~.- ....... -..... -........ --- ...

Unit 1989 1990 1991 1992 1993 Total ===== :::: ===== ==== ==== =====

No 780 780

H2 920 920

Unit Cost

0.78

0.26

Base Costs ...••...•. \ ... . ......•...••......•..• 1989 1990 1991 1992 1993 Total ===== ======= ===== ==== . === -------

64.0 460.5 524.5 10.5 10.5

· 600 .6 600.6 180.0 180.0 100.0 100.0 ----· ------- ----- ---- ---- -------354.5 460.5 600.6 • 1,415.6

230.0 230.0 33.8 33.8 80.0 80 .0 25.0 25 .0 ---- ------- ----- ---- ---- ----- --

368.8 368.8

200.0 200.0 30.0 30.0

· 2,100.0 · 2, 100.0 ----- ------- ----- ---- ---- -------230.0 2,100.0 · 2,330.0

953.3 2,560.5 600.6 · 4, 114.4 ===== ======= ===== ===- ---- -------953.3 2,560.5 600.6 · 4,114.4 ===== ======= ===== =--- ---- -------

.... .................... . .............................................................................. . .......... ............................................. .. .... ...... ...................... ... ....... .......

HA Y 9, 1988 14:18

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CHINA




Page 1

Lai Wu Prefecture Animal Husbandry Development Project Plan

Introduction

Lai Wu prefecture is one of the eight divisions of the Yi Meng Mountain Region livestock component. Most of the Prefectures's proposal involves building new facilities rather than ·expanding existing ones. The Prefecture resources and development proposals are part of an on-going pig development scheme that has been under way for some years and are described in the prefecture's feasibility study. A translated summary of the prefecture plans under the project follows together with mission comments •

I. Project Proposals

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Pig Meat Processing Plant

A new plant will be built on 4 ha of land involving 10,285 m2 construction. Planned annual capacity: slaughter 100,000 head pigs, providing 1,890 tons of mixed lean cut meats, 1,440 tons by-products, 800 tons pig skin, 1,814 tons fat oil, 50,000 intestines, 200 tons blood powder, 196 tons sausage, 1,052 tons industrial use oil . 440 tons of boiled by-products, 33 kg .liver product, 3 kg of bile, 1,796 tons of other products •

Feed Mill

A new facility will be built on 0.67 ha land with 2,995 m2 construction. Planned annual production capacity: 4,000 tons pre-mix concentrate, 2,000 tons pelleted feed concentrate.

Artificial Insemination Station

A new facility will be built on 67 ha land with 920 m2 construction. Planned annual production capacity: Doses for 40,000 inseminations .

Pig Breeding Farm

A new facility will be built on 2. 67 ha land, 4,830 m2 construction. The farm will be stocked with 100 breeding sows and 20 boars. Annual production capacity: 600 head breeding sows, 50 boars, 850 head fattening pigs. All of the Lai Wu Black Breed .

5. Specialised Households


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The proposed phasing for the development of specialised households is as follows. Initially specialised breeding households would be supplied with 900 Lai Wu black sows. Numbers of sows kept is expected to increase to 17,400 sows

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after three years. By AI each sow is expected to produce • 20 marketable piglets per year for further fattening.

6. Staff Requirements

Sub-Project Management Workers Total

Meat Processing Plant 50 250 300

II.

Feed Mi 11 6 10 16 Pig Breeding Farm 4 17 21 Artificial Insemination Station 4 2 6

Total 64

7. Training Requirements

279

No. of People Trained

343

Meat Processing Plant Feed Mil 1

256 11

Pig Breeding Farm 5 Artificial Insemination Station 2

Total 274

Training costs per person are Y300, total Y82,200. Another Y26,800 will be used for consultant's fees. Total training costs are Yl09,000.

Mission Findings and Comments

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Lai Wu prefecture was visited by the mission leade~ Discussions held with prefecture staff on project

proposals. Follow up discussions between the livestock . specialist and county officials were held in Jinan .

Lai Wu prefecture has a history of specialized pig production and is the home of the Lai Wu Black Pig breed. Livestock production trend figures (Table 1) provided in the field indicates pig numbers are rising steadily even in 1987 when pig numbers fell in almost all ether counties in China. Cattle and hair rabbit numbers, however, are falling.

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Figures on grain production trends were not provided but grain trade trends (Table 2) suggest that Lai Wu prefecture is a corn, wheat and sweet potato exporter and that production is rising, only soybean cake is imported. These grain figures and the prefecture tradition in pork production supports the prefecture's emphasis on pigs.

The pig industry in China has been through considerable strain in recent years as a result of fluctuations in feed, pig and pig meat prices. This instability has been increased by relaxation of price and quota restrictions and the prefecture development proposals seek to bring a measure of stability to the market through feed subsidy to encourage farmers to invest in and improve management of ·pigs and thus allow the prefecture to profit from its natural advantages in pig production. The prefecture plans to stabilize and encourage pig production, predate the project and pig population trends indicate these efforts have been successful (para 2).

5. The prefecture proposals are fairly detailed and are in general supported by the mission.

Meat Processing Plant

Estimated investment Yl0,914,000

Prefecture plans feature investment in pig product processing in addition to modern slaughter facilities and appears appropriate in scale and processes employed, to improve the marketing of pigs in the prefecture.

Feedmi·l 1


The prefecture's strategy of subsidizing feed encourage farmers to breed lean meat pigs and pig fattening requires an investment in infrastructure .

supplies to invest in

feed supply

As the prefecture is a grain exporter, an investment in feed milling appears justified. A discussion on feed milling is given in the main report.

Artificial Insemination Station

Est imated investment Y370,000

This f ac il ity i s centra l t o the prefecture pl an to promote lean pig production and can be justified .

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Pig Breeding Farm


Worf< i ng Paper 4 Attachment 2

Page 4

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The county's justification for this investment lies in their proposal to keep a line of pure Lai Wu Black Breed • pigs for use as Breeding Stock in the Hybrid Lean Pig Fattening Programme at household level. Some aspects of pig breeding are discussed in Annex B. The mission recommends these be considered. There may be a market outside the prefecture for the Lai Wu Black pig. The mission recommends the county have the detailed plans for • this farm reviewed by a Chinese pig consultant experienced in modern pen layout.

Total (Note:

estimated investment Yl3,936,000 (Tables 3 and 4). These costs need revision).

Inconsistencies in Feasibility Figures

There are a few inconsistencies in the county's figures for production and in the cost tables. Some of these may be transcription or typing errors, some may illustrate problems with conceptual thinking or the use of unlikely production parameters. Examples from the production proposals are:

Pig Breeding Proposals

The breeding farm is reported to produce 600 breeding females but the specialised households receive 900. Where does the balance come from? Also production households are credited with producing 348,000 piglets but selling only. 200,000, and this difference is not explained.

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CHINA

Working Paper '* Attachment 2 Table 1

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Lai Wu Prefecture Animal Livestock Population Trends

('000 head)

1982 1983 1984 1985 1986 1987

Cattle 25.6 19.6 • 12.9 11.5 10. 7 12 . 7

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Goat · 71.0 72.9 46.0 43.2 55.0 91.5

Meat Rabbit 5. 1 6.2 5.3 2.5 4.0 75.5

Wool Rabbi t 1,232.3 569.2 569.0 1, 185.9 903.2 792.2

Goose 303 .8 246.3 242 . 1 287. 1 226 . 5 189 .9

Chicken 1,128.5 1,391.7 2,229.9 1,936.5 2,021.7 2,133.0

Pig 278.0 265 . 3 305 . 1 324.2 324. 5 335.5

Source: Shandong Animal Husbandry Bureau .

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CHINA

SHANDONG. AGRICULTURAL DEVELOPMENT PROJECT

Lai Wu Prefecture Grain Trade Trends

1982 1983 1984 1985 1966 1987 In -- Out In -- Out In -- Out In -- Out In -- Out In -- Out - - - - -

('000 tons)

Corn 192 ;030 207,970 177,220 199.550 206.800 310.000 225,870 325.530 259.410 302. 770 228.650 299.750

Wheat -~ 54,860 83,190 50.630 79,820 59,000 124.000 64,530 130.210 74. 120 121.100 65•. )30 119. 900

Sweet Potato 54,870 83,190 50,640 79,820 59,000 124.000 64,540 130.210 74. 110 121,110 65.330 119. 900

Soybean Cake 192.030 12,480 177. 220 11,970 206.500 18.600 225.870 19.530 259.410 18. 160 228.650 17.990

Sorghum 10,970 8,320 10.130 7,980 11,800 12.400 l~.910 1J. 020 14 .820 12,110 1).070 11. 990

Other 43.890 20,800 40.510 19.960 47.200 31.000 51,630 32.550 59.290 )0.280 5 2.270 29.970

1982 1983 1984 1985 1986 1987 -- In -- Out ln -- Out -- --In Out In Out In Out 111 Out -- - -- - --Yua11 / k2

Corn h'h"a t 0.32 0.32 0.31 0.)1 0.1 O.<l o.s o. ::, Cl. ·IS Cl. '16 0, ·1 0. ·I

Wheat 0.56 0.56 0.59 0.59 O.G 0.6 0.7 0 . 7 0.7 0.7 0.62 0.62

S,<ee t Potato O.J 0.3 0.)2 0.)2 0 . 37 0.37 0. 116 0 . 16 0. ~. 0 . 5 O. ·I 0. •I ~ ~ ti ~ .,

,- QI A° Soybean Cake 0.6 0.6 0.65 0.65 0.7 0.7 0.8 o.s 0. 76 0 . 76 0.7 0.7 ~i .....

~-So r ghum 0.3 0.3 0.32 0. ) 2 0.)6 0.36 (I . 1:1 Cl . ·1·1 0. ·Hi O . •l\j O. J/1 0 . jl(

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N ., Source: Shandong Agricultural llui,l>andry Bureau .

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I. INVESTMENT COSTS .............................. A. Pork Abattoir ......................

Land Acquisition Buildings (10,285 m2) Equipment Training Other Costs \Jorking Capital

Sub-Total Pork Abattoir B. Feedmi l l

--------Land Purchase Buildings (2995 m2) Equipment Training Other Costs \Jorking Capital

Sub-Total Feedmill

Tot al INVESTMENT COSTS

Total

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CHINA. SHANDONG AGRICULTURAL DEVELOPMENT PROJECT

Table 602. Yi Meng Mts. - Livestock Processing· Laiwu City Detailed Cost Table

(Yuan '000)

Quantity ------------------------------ Unit

Unit 1989 1990 1991 1992 1993 TQt~l Cost

Base Costs - - - ••• - • - - - • - - .A. - - - • - ••• - - • - - - • - - - • - - - •• - -1989 1990 1991 1992 1993 Total

======= ======= ======= ==== ==== ========

600.0 - 3,045.0

3,523.0 570.0 100.0 160.0

- 2,916.0 ---- ------- -------4,123.0 3,875.0 2,916.0

100.0 25.0

339.0

464.0

560.0 21.0 5.0

15.0 470.0

601.0 470.0

4,587.0 4,476.0 3,386.0 ======= =======

4,587.0 4,476.0 3,386.0

600 .0 3,045.0

- 4,093.0 100.0 160.0

2,916.0

- 10,914.0

100.0 585.0 360.0

5.0 15.0

470.0

1,535.0

- 12,449.0 ======== 12,449.0 ========

-- -·--------------------········-----·--------·-----··------·······-·······------·---------·----------------------May 9, 1988 14:18

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I. INVESTMENT COSTS - - - - -- - - .. - - -----A. Pig Breeding Farm

- - - - - - - - -- -- . - ... . Land Acquisition Buildings (4830 m2) Equipment Training Other Costs Working Capital

Sub-Total Pig Breeding Farm B. Art. Insemination Centre

.. -- .. -...... ----- - - --- - - .. ---Land Purchase Buildings (920 m2) Equipment Other Costs Working Capital

Unit

Sub-Total Art. Insemination Centre


Total


Table 601. Yi Meng Mts. - Livestock Production - Laiwu City Detailed Cost Table

(Yuan '000)

Quantity Base Costs --·-·------------------------- Unit ----------1989 1990 1991 1992 1993 Total Cost 1989 1990 1991 1992 1993 Total

===== ===== ==== ==== ==== =======

400.0 . 400.0 20.0 521.0 541.0 79.0 32.0 111. 0

4.0 4.0 6.0 6.0 .

· 55.0 55.0 -···- ...... ---- ---- ----·--

499.0 563.0 55.0 1,117.0

100.0 100.0 17.0 117.0 134.0 90.0 21.0 111.0

16.0 16.0 9.0 9.0

....... ----- ---- ....... ---- -------207.0 154.0 9.0 370_0

706.0 717.0 64.0 - 1,487.0 ===== ===== ==== ==== = ======= 706.0 717.0 64.0 - 1,487.0 ----- ---== ==== ====

. -... --- - -- .. -..... - .. - ... - - - - - -·- - --- .. -- ---- --- ..... -- - - - - - - -- - - --- - ... - ...... - .. ------ --- - - - .. - ----- .. -- - ---- - -- .. - - --- ----- ---- -- .. June 9, 1988 10:07

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Page 1

Chi Ping County Animal Husbandry Development Project Plan

Introduction

Chi Ping County is located in the Tuhai River Basin. The animal husbandry development project i s part of an integrated agricultural development project proposed by the County. Other project sub-components include water conservancy works, fertilizing crop lands, date, grain intercropping and improved seed development. The county ' s resources and development proposals are presented in a feasibility study. A translated summary together with mission comments is set out below •

I. Project Content

1.

2.

Sheep ~reeding Base '

' 22 households in 5 villages have been chosen for this activity . Each household has 50 head on average • . Altogether there are 1,100 head, 1,000 of these are females. These households will supply 800 head of stud sheep to the market per year and 300 head meat sheep to the meat ·processing factory. Sheep wi 11 be mostly range fed (grazed) with some supplementary feeding at the barns . Artificial insemination and strict breeding records methods will be used.

Meat Processing Pactory

Planned annual processing capacity is 120,000 head of sheep, 2,000 cattle and 500,000 chickens. Annual production output is planned as follows:

frozen mutton (boned) frozen beef (boned) chicken meat (boned) hides (skins)

1,380 tons 1,120 tons

600 tons 127,000

A waste water treatment facility will be constructed for the plant. The effluent from the plan as well as sewage will be treated according to national standards, t hen used on agricultural fields. The factory boiler will be equipped with dirt and dust particle removal equipment.

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Feed Mill

Working Paper~ Attachment 3

Page 2

Planned annual processing capacity is 5,000 tons. Waste water (sewage from workers' facilities) will be drained into the city's sewage system.

Sheep Wool Procurement Stations

These stations will be established in 10 townships; one per each township. They wi l l purchase 500 tons of wool annually.

Commercial Sheep Wool and Cattle Production Base

4,800 specialized households will engage in this activity. On average, eaefl household wi l l have 50 head of sheep . Each household will supply on average 25 sheep to market per year. Altogether there will be 120 ,000 or more free-grazing sheep. In addition there will be 1,400 special i zed households selected

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for cattle raising activities , with an average of 5 head per • household, total 7,000 head.

6. Technical Service Centre

The Centre wi ll be set up in the County Veterinary Station. The Centre will consist of: a wool analysis room (laboratory} , •

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technical training office, disease protection, treatment of fice, library, reference room, speci men display, file room and necessary equipment.

Construction of the Pasture Base

667 ha of wasteland will be reclaimed in 3 townships.

Project Management and Staffing

The Animal Husbandry project in Chi Ping County is one of several project sub-components. (Other components include water conservancy , forestry and cropping). Management organization for this component is shown in Figure 1.

Chi Pi ng County Animal Husbandry Development Project Staffing

Policy Making Technical Group Group

Production Group

Service Group

Total

Sub-component 5 150 300 20 475

The technicians in the Wool-Purchasing Station would be trained under the guidance of the Service Centre, through technical classes and production work training. The Meat-Packing Plant would select some representatives from the workers and management personnel and send them to study in other places and then ask them to do training jobs after returning . The Technological Service Centre wi ll provide on-the-spot

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consulting and advisory services for the Commercial Livestock base in breeding, disease prevention, treatment techniques of raising, management and disease prevention. The estimated cost for training is Y40,000.

Project Training Plan

Item Name Training of Person/Time Estimated Cost (Yuan)

Animal raising 5,000 40,000

II. Mission Findings and Comments

1. Chi Ping county was visited by the Livestock Specialist and the proposals discussed with county officials •

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Figures .. for livestock population trends in Chi ing county provided in the field (Table 1) indicate that cattle and sheep numbers are rising sharply. Pigs, poultry and rabbits are also rising.

Grain and grain trade trend figures were not provided but data on present production and uses of oil cakes, cotton, soybean and peanut (Table 2) indicate the region is in surplus for all the important high protein animal feeds common in Shandong

·Province.

The county report signifies areas of sandy and saline wastelands that can be developed with pasture (between fast growing trees) and large and growing supplies of crop stovers to support increased livestock numbers.

5. With certain qualifications, the mission supports the county ' s proposals:

- Sheep Breeding Base

The proposal is apparently to provide funds for stud sheep purchasers by way of credit to farmers. These stud stocks are intended to provide sheep meat and wool, breeding stocks for production households as well as actual production of meat and wool. The breeding farms are to be operated under .the specialised household system. These farmers can fall back on ordinary meat and wool production when the demand for breeding stock falls off and so the proposal i s ju~tified (at least with regard to meat sheep). In the view of the mission, farmers do not understand the correct feeding and management systems from fine wool sheep. All fine wool sheep inspected by the mission were in poor condition (to be expected in the post-winter season under usual feeding practices) and wool quality was very poor. Fleeces showed evidence of breaks due to nutrition stress and possibly wool fungal disease in the previous wet season and heavy loads of contamination due to poor pen design and no trimming of wool showing fecal contamination. In t he mission's opinion investment in fine wool product ion is not justified without a considerable investment in extens ion


Page 4

directed at helping farmers solve their management problems. Fine wool production is discussed in the main report.

- Meat Processing Factory

Estimated investment: YS,799,000. An investment in meat processing may be justified, but• a detailed feasibility study needs to be prepared prior to appraisal.

- Sheep Wool Procurement Stations.

Estimated investment: Yl00,000. If the county is to persist with fine woo l production then these stations are justified if they form the basis for greatly increased extension into fine wool sheep nutrition and wool handling. Well formulated · pricing policies and prizes for the best wool might induce the changes in production attitudes necessary to establish a profitable woollen industry.

- Commercial Sheep Wool and Cattle Production Base

No specific investment is proposed: support will come from other sub-projects. As, actual and potential feed resources are available for increased ruminant production and markets for the products are good, this programme i s justified, subject to the above comments on extension for fine wool pr~dction.

- Technical Service Centre

Estimated investment: Yl50,000. · This component is also justified but training in the use of new technical equipment is essential as is specific assistance with extension and technial assistance for fine wool production.

Pasture Development

Estimated investment: Yl00,000. Pasture development in the area has good propects for success, but technical assistance from Chinese consultants experienced with pasture

· development is necessary to ensure appropr i ate species are planted in the different soil conditions in· which pasture development is proposed, since species suited for well drained soils are not suitable for areas subject to water logging and vice versa .

- Other Comments

Has rabbit production been cons i dered for these improved pastures?

- Total estimated costs: Y7,374,500.

(Note: These costs require revision in timi ng, uni t costs and contingencies.)

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• Working Pa~er 4 Attachment 3 Table 1

• CHINA


• Chi Ping County Livestock Population Trends

(1 000 head)

• 1983 1984 1985 ~ 1987

f

Cattle 24.1 26.7 29.7 55.6 58.1

• Donkey 16.1 15.7 18.3 18.6 20 .6

Mule 01.0 01.0 01.9 02.3 02 .7

Horse 01.0 01.6 02.1 02.5 02 .4

• Total of 42.6 45.1 52.1 79 . 0 83.8 Big Livestock

Pig 35.3 26.7 51.3 51.4 45.4

• Sheep and Goats 66.1 50.l 82.3 115. 5 163.3

Poultry 1,376.2 1,677.4 1-,398.7 1,131.2 1,401.5

Rabbit 66.0 94.4 82.9 65.8 82.0

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CHINA


SHANDONG AGRICULTURAL DEVELOPMENT PROJECT I

Averaged Production and Utilization of Cakes 85 to 87, Chiping County

Yearly Cotton Cake Production

Used as feeds Sales outside the county

- Used as fertilizer

Yearly Soycake Production

- Used as feeds - Used as fertilizer

Yearly Peanut Cake Production

- Used as feeds - Used as fertilizer or other

purposes

Source: County Livestock Bureau.

Tons

33,334

9,666 1,200

22,468

2,391

2,032 359

1,632

1,550

82

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CH INA SHANDONG AGRICULTURAL DEVELOPMENT

Table 304. Tuha i Lives tock Component Detailed Cost Table

(Yuan 1 000)

PROJECT Chip ing Coun ty

Ouant i ty · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · Uni t

Unit 1989 1990 1991 1992 1993 Total Cos t

I . INVESTMENT COSTS ----·-· ---------A. Feed Processing Fact ory

-------------------- --· Land Aquisiti on Factory Building Equipment Vehicles \Jorking Capital

Sub-Total Feed Processing Factory B. Mea t Processing Factory /a

Land Aquisition Factory Construction Equipnent Vehicles Others \Jerking Capita l

M2

Sub- Total Meat Processing Factory /a C. Stud Sheep D. Technical Suppor t Centre E. \Jool Purchase Stati on F. Pasture Improvement G. Train ing

Tota l IN VE STMEN T COSTS

Total

130 800 930 0 . 22

Base Costs

1989 1990 1991 1992 1993 Total ======= ==== ==== =======

100 .0 100.0 28.0 172.0 200.0

100 .0 42.5 142.5 50 .0 50.0

200.0 200.0 ----- ------- ---- ---- -------

278. 0 414.5 692.5

375. 0 375 .0 · 3,287.0 3,287.0

930.0 930.0 200 .0 200.0

200.0 200.0 800.0 800.0 ----- ---- --- - -------

1, 505 .0 3,287.0 1, 000.0 • · 5,792.0 500.0 500.0 150.0 150.0 100.0 100.0 100.0 100.0

40.0 40.0 ·---- -----·- -- ----- ---- -- -- ----·--

1, 783. 0 4, 551. 5 1,040.0 · 7,374.5 ======= ======= ======= ==== ==== ======= 1, 783.0 4,551.5 1, 040.0 · 7,374.5 ------- ------- ------- ---- ---- -------

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Page · l

Fei County Animal Husbandry Development Project Plan

Introduction

Fei County is located in the Yi Meng Mountain region. This County has only an animal husbandry development component under the proposed plan. The project proposal includes both the establishment of new facilities and expansion of existing facilities. The county's resources and proposals are set down in a feasibility study. A translated summary together with mission comments are set out below •

I. Project Content

1. Rabbit Breeding Farm

e This farm will be newly established under the project. Project plan is to raise 1,100 rabbits per year (which includes 1,000 meat rabbits, 100 long hair rabbits) and 250 reserve rabbits. The farm will supply 20,000 head of improved meat rabbits per year and 2,000 head long hair rabbits. Entire farm covers 1. 4 ha and will supply breeding rabbits to households within a 30 mile radius •

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Feed Mill

Plan is to expand existing facility. Covers 1.3 ha land and has 1,355 m2 construction structures. At present there is one production line in operation with a design capacity of 6,000 tons per year, which has been operating since 1985. Under the project annual production will be expanded to 8,000 tons per year.

Rabbit Hide Processing Factory

Annual processing capacity will be 3 million hides per year and annual production capacity will be 60,000 items of fur clothing per year.

Meat Processing Factory

The plan is to expand the existing county facility to reach the following annual production capacity: 2,246 tons of chilled boneless rabbit meat. The exist i ng factory has been ~n operation for 8 years. Expansion construction is planned to begin in 1989. The factory is located within 20 km of the households in the production base •

5. Rabbit Hair Spinning Factory


Page 2

The plan is to expand the existing county facility. Planned annual production targets are processing 30 tons of hair to produce 150 tons yarn. The existing facility began production in 1982.

6. Technical Service Centre

The old county Veterinary Technical Service Centre will be expanded by a further 2 ha and more staff will be added. The Centre will provide each of the sub-project components in the following way: consulting services, feed analysis services, protective, veterinary services.

7. Rabbit Commercial Production Base

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• The project will support farmers new to rabbit breeding. 8,500 specialised households will be raising rabbits of which 7,500 will raise meat rabbits and 1,000 hair rabbits. The county will supply 3 million rabbits per year for 20 of the 30 tons of • rabbit hair produced in the county will be produced by this base. 500 natural villages in 20 townships will be involved.

NOTE

Waste water from project facilities will be treated until they reach national standards for being released. Part of the :hy•products from the meat processing factory will be used for human consumption~ or fo~~eecl.

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Fei County Animal Husbandry Development Project Staffing

Sub- Project

Rabbit Breed i ng Farm Feed Mi 11 Meat Processing Plant Hide Processing Plant Ha ir Spinning Factory Technical Service Centre Project Managment

Organization

Total

Training Length of Content Training

(110nths}

Operation aanagenent 6

Breeding management 1

Veterinary 1

Hide processing 6

Mixed (various) 6 technology

Fur c lothing design 6

Equipment repair 6

Total

Party Members Admi nistrators

6 3

13 11

2 2

37

Project Training Plan

Person Estinated Times Cost

(Yuan'OOO)

40 so:o

3,000 12.0

2,000 14.0

50 50.0

15 15.0

10 18.0

20 20.0

180.0

II . Mission Findings and Comments

Management Personnel

8 7

38 24

1 16

7

101

Length of Training (months)

1

Production Personnel

Total

28 42 30 40

337 388 365 400

19 20 7 25

9

786 924

Person Estimated Times Cost

(Yuan'OOO)

2.000 4.0

4.0

1. The county was not visited by the mission . A briefing on the county's proposals was provided but no discussion on the proposal was possible .

2 • Figures on l ivestock population trends were provided in the fie ld (Table 1) and these indicate t hat livestock numbers have on aggregate remained somewhat static or fallen slightly since 1982. The exceptions to this are meat rabb i t and geese. The reason for the decline in numbers is not clear as feed resources appear satisfactory •


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3. Grain production trend figures were not suplied but grain trade _. 1 figures that were suppl i ed (Table 2) suggest the county is a grain (corn, wheat and sweet potato) exporter and that production is rising. The county also reports significant grass resources in the mountains.

4. The county's proposals are fairly well detailed in their _. feasibility study but some investments have not been justified sufficiently from the marketing point of view.

- Rabbit Breeding Farm


An investment in providing good breeding and production, rabbit fur, rabbit meat and hair products is justified because of the difficulty of maintaining breeding standards on producing farms (see main report).

- Feed Mi 11

Estimated investment Y385, 000

As the county is apparently a f eed exporter, an expansion of

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exist ing facilities i s probably j ustified. Some description of • the f eed mill market would aid the appraisal team.

Rabbi t Hide Produc ing Factory

Esti mated investment Y2,614,000

This investment i s based on processing by-products from the expa:M~~d. abattoir and at least the tanning facility is justified as it adds val ue to an important by-product. The feasibility study does not di scu ss competitors in hide tanning or· what happens- to rabbi t hides at present. The proposal will need a detailed f eas ibility st udy prior to final appraisal. ·The proposals also i nclude t he manufacture of fur apparel and although marketing is discussed in aggregate demand terms it is · not detailed enough for appraisal. Marketing is discussed in the main report.



This is likely to be justified but attention to training

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techniques in the use of new machines will be important. . ~

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Rabbit Production Base



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It is not clear how assistance to the production base households is to be given. Credit was discussed but exact terms have not been discussed •

Total estimated cost Yl,661,000 (Tables 3 and 4}.

(Note: These costs require revision in timing unit costs and contingencies) .

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CHINA


Fei County Livestock Production Trends

( '000 head)

1982 llil 1984 1..9.llj_

Cattle 24.8 24.4 22.9 23.7

Goat 64.9 93.8 59 5 0. 1

Meat Rabbit 60.0 23.6 21 1 2. 2

Wool Rabbit 1,000 400 600 4 1 7 . 2

Geese 57 6 1 150 179. 8

working Paper 4 Attachment 4 Table 1

.1-9.li. llll

23.3 26.0

5 1 . 6 60.0

21. 7 134

322.6 200.0

179. 1 250

Chicken 1 . 100 1 . 0 0 0 1 , 3 2 9 1,209.7 1,268.1 1,420

Pig 31 5. 5 336.4 37 1 . 3 415.6 386.2 3 8 5.. 2

Source: County Animal Husbandry .

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CHINA


Fei County - Grain Trade Trends

1982 1983 1984 1985 1986 1987 I n -- Out In -- Out In -- Out In -- Out In -- Out In Out - - - - - -

< '000 tons>

Maize 1,000 8,200 - 18,300 2,500 14,600 - . 16,450 12,570 23,900 - 29,350

Wheat 1,900 65,850 1,400 21, 156 1.350 49.750 2.050 53,050 2.540 33.620 5,700 118.370

Sweet Potato 450 60,450 100 194,850 200 137,250 - 88,300 1,680 76,510 - 69,150 I

Soybean Cake - - - - 50 - 50

Sorghum

Other ·.!- Rice 1.250 800 1,550 1,200 5. 100 3.200 200 250 50 - 530

1982 198 3 1984 1985 1986 1987 In -- Out In -- Out In -- Out ln -- Out In Out In -- Out -- - - - - -

Yuan/kg

Mnlze 0.259 0.259 - 0. 32 0.32 0.32 - 0. 32 0.34 0.34 - o. 32

~ ~ ~ Wheat 0.359 0.359 0.359 0.359 0.408 0.408 0.408 0.408 0.502 0.408 0.514 0.502 rt , r- QI ']'\' It) n ..j,

:::r ~ Sweet Potato 0.213 0.213 0.226 0.226 0.29 0.29 - 0.42 0 . 41 0.429 - 0.255 N l Soybean Cake I - - - - 0.66 - 0.66 - - - - -""' ,

Sorghum - - - - - - - - - - ··- - +:--

Other - Rice 0.324 0. 324 O.J2 0.32 o. 32 0.32 0.37 0.37 0.3i - 0 . 34

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I. INVESTMENT COSTS -·---··---------A. Rabbit Breeding Farm

-- ------------------Land Acquisition Civil \.lorks Equipment Vehicles Livestock Purchase Training \.lorking Capital

Suo·Totol Rabbit Breeding Farm B. Prodn. Base Support

-- ----------------Civl l \.lorks Equipment Livestock Purchase

Sub·Total Prodn. Base Support c. Technical Service Centre

Lend Acquisition Civil \.lorks Equipment Vehicles Training \.lorking Capital

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Table 609. Yi Meng Hts. · Livestock Production· Fei County · Detailed Cost Table

(Yuan '000)

Quantity Base Costs

Unit 1989 1990 1991 1992 1993 Total Unit Cost 1989 1990 1991 1992 1993 Total ==== ==== ==== ==== ==== ====~

Ha 1.4 1.4 214.29 300. 1 300.1 538.0 538.0

153.0 39.0 192.0 150.0 150.0

- 470.0 470.0 20.0 20.0

- 150. 0 150.0 ---- ------- ----- ---- ---- -------

603. 1 597.0 620.0 - 1,820.0

300.0 300. 0 100.0 50.0 150.0

800.0 800 .0 --- ------- ----- ---- ---- -------

100.0 1,150.0 - 1,250.0

30.0 30.0 188.0 188.0

177.0 19.0 196.0 50.0 50.0

10.0 10.0 l 20.0 20.0

----· ------- ----- ---- ---- ---- ---Sub-Total Technical Service Centre 257.0 217.0 20.0 494.0 D. Management Support

---····-----------Civil \.lorl<s Equipment Vehicles \.lorking Capital

Sub·Total Manageme~t Support


Total

Hay 9, 1988 14:19

140.0 140.0 142.0 8.0 150.0 80.0 80.0

20.0 20.0 --·- ........ ---- .......... 222.0 148.0 20.0 390.0 -··-- ............ ----- ---· ---- ----···

1,182.1 2,112.0 660 .0 3,954.0 ======= ======- =---- -=== ==== ======= 1,182.1 2,112.0 660 .0 - 3,954.0 ======= =====-- ----= ==== ==== =======

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I. INVESTMENT COSTS .............................. A. Pellet Feedmill ..............................

Land Acquisition Civil llorks Equipment Vehicles Training

Sub-Total Pellet Feedmill B. Abattoir ........ - .... -

Land Acquisition Civil llorlcs Equipment Vehicles Trianing llorlcing Capital

Sub-Total Abattoir C. Rabbit Fur Factory

--·------··-- ----· Land Acqu isition Civil llorks Equipment Vehicles Training llorldng Capital

Sub-Total Rabbit Fur Factory D. Rabbit Hair Texti le Plant

Civil llorks Equipment Training llorking Capital


Table 610. Yi Meng Mt s . · Livestock Processing· Fei County Detailed Cost Table

(Yuan 1 000)

Ouant i ty Base Costs .. ----·---

Unit 1989 1990 1991 1992 1993 Total Unit Cost 1989 1990 1991 1992 1993 Total

Ha 2 2 150.01

======= ======= -----== ==== ==-- --------

20.0 20.0 145.0 145.0

172.0 24.0 196.0 20.0 20.0

4.0 - · · 4.0 ---·- .............. ---· ........ -----·--

212.0 173.0 385 .0

300.0 300.0 131 .0 131.0

995.0 140.0 . 1,135.0 300.0 300.0

40.0 40 .0 · 1,800.0 . 1,800.0

....................... ---- ........................

1,595.0 311. 0 1 , 800. 0 . 3,706.0

330.0 330.0 · 1,020.0 . 1,020.0

114.0 80.0 194.0 90.0 90.0 80.0 80.0

900.0 900 .0 ................ -·-- ...............

614.0 1,100.0

450.0 3,154.0 318.0·

30.0

900.0

· 2,000.0 .......................

. 2,614.0

450.00 · 3,472.0

30.0 · 2,000.0 .. .. -...... -.. -

Sub-Total Rabbit Hair Textile Plant


3,154.0 798.0 2,000.0 ........... ------- ............ .. 5,575.0 2,382.0 4,700.0 ======= ======= ====--- ----

· 5,952.0 .. -...... - ... 12,657.0 ========

Total 5,575.0 2,382.0 4,700.0 · 12,657.0 ======= ======= ====--- =-== =--- --------

• ... • ····· ·· ··· . ...• ..... . . .. .. .. .• ... · ..... ... ... • ······ ···· ··· • ··············• ·············· .

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CHINA



Shang He County Animal Husbandry Project Plan


. Page 1

Introduction

Shang He County is located in the Tuthai River Basin . The animal husbandry development project i s part of an integrated agricultural development proposal for the county which includes other project sub-components such as seed development and date and grain i ntercropping. The county's resources and proposals are set out in a feasibility study, a t rans lated summary of the animal husbandry component of this study follows below together with mission's comments.

I. Project Content

1. Chicken Farm

The farm will have 10,000 stock chickens whi ch can produce 1 miJlion meat chickens per year. The farm area wi l l be 1 ha.

2. Pellet Feed Mill

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Annual production capacity will be 12,000 tons feed/year . Area is 0.67 ha .

Chicken Meat Processing Factory

Planned cold storage_ capacity is 500 tons. 1 million chickens will be processed per year and 1,500 tons frozen chicken meat produced. Planned area is 0. 53 ha .

Commercial Chicken Meat Production Base

400 specialized households in 14 villages and belonging to 3 townships will be selected for participation in chicken raising activities . On average, each household wi ll produce 2, 500 chickens for market per year . On average , the production base requires 300,000 work days per year . (Each worker works 300 days per year) . Altogether 1,000 people are requ i red .

Animal Husbandry Veterinary Techni cal Service Centre

The plan is to expand the existing county veterinary station. Services include : technical consulting, training guidance, protection services and treatment , experimental research and feed analysis. Under the project, office staff and equipment will be added .

NOTE


Page 2

No environmental protection or water treatment plans were included in this county's proposal.

II. Project Management - Staffing

Animal husbandry development activities wi l l be managed by the Shang He Animal Husbandry United Commercial Company . This company is under the management of the Shang He County Foreign Investment Development Project Office. Project implementation will be under the guidance of the relevant country government bureaus.

Shang He County Animal Husbandry Development Project Staffing

Management Production Total Personnel Personnel

Chicken Farm 18 40 58

63

120

10

15

Pellet Feea Mi ll 18 45

Chicken Meat Processing Plant 53 67

Veterinary Technical Service Centre 10

Project Management Organisation l/ 15

l/ Also coordinates other county project sub-components such as water conservancy, date:grain intercropping and improved seed base.

III.

IV.

Project Training

Under the guidance of the Shang He County Foreign Investment Agricultural Development Company, the Animal Husbandry United Commercial Company wi ll organize technical training classes . Training costs for all county sub-project components (water conservancy, agriculture, forestry and animal husbandry) is Yll0,000.

Mission ' s Findings and Comments

1. The County was not visited by the livestock specialist nor was there an opportunity for a briefing on discussion on the county's proposals.

2. Figures on livestock population trends provided in the field (see table below) indicate that most livestock numbers have increased sharply since 1983, the only exceptions being horses and mules.

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Trend figures for grain production and trade were not provided but the development proposals under the agricultural component will involve significant increases in production of crop by-products and this will provide additional feed resources on which to base further increases in livestock numbers •

4. The develoment proposals under the livestock component are not detailed and will require further study prior to appraisal. The studies will need to quantify available feed resources for the feed mill and for the chickens •

5. The specific components are:

Breeding Chicken Farm

Estimated Investment Y2,400,000

Feed Mi 11


Chicken Abattoir



Estirnated Investment Y590,000

Estimated Total Inves~ment Y8,000,000

(Note: These estimates are a very approximate breakdown by the mission and require complete re-working) •

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Horse

Mule

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Sheep

Rabbit

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Worki ng Pa per 4 Attachment 5 Table 1

SHANOONG AGRI CULTURAL DEVELOPMENT PROJECT

Shang He .County Live stoc k Populatio n Trends

( ' 0 00 head)

liU llll Ull 1986 llll

62 . 3 61. 9 58.9 60.5 1 1 4 . 9

1 7. 8 24 .8 20.5 3 1 . 2 56 .1

3.7 6 . 7 6. 7 6.4 7. 0

2 4.8 4 . 7 4 . 7 6. ,

1 6. 1 19.8 26.7 22.5 26.9

9 2. 1 52.4 68.4 90 . 6 277. 0

1 6. 7 64. 4 33.7 68.8 121 . 0

850.0 792.9 1,140 . 0 1,000.0 1,173.3

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Table 303·. Tuhai Lives-tock Component·Shanghe County /a Detailed Cost Table

I. INVESTMENT COSTS .. -.... -... -..... ---...... A. Breeding Chicken Farm

................ .. ..................

Civil \Jorks Equipment Livestock Purchase

· Unit

Sub-Total Breeding Chicken Farm B. Feeonill --.......... ..

Civil \Jorks Equipment Vehicles Working Capital

Sub-Total Feecknill C. Chicken Abattoir ..................................

Civil Works Equipment Working Capital

Sub-Total Chicken Abattoir D. Technical Service Centre

...............................................

Civil Works Equipment Vehicles Working Capital

Sub-Total Technical Service Centre


Total

(Yuan '000)

Quantity ·······••····················· Unit 1989 1990 1991 1992 1993 Total Cost

----

Base Costs .................... 1989 1990 1991 1992 1993 Total

======= ===== ==== ==== =======

· 1,260.0 · 1,260.0 840 .0 840.0

300.~ 300.0 ........................... --- · -------

840 .0 1,560.0 • 2,400.0

· 1,100.0 • 1,100.0 1,270.0 - 1,270.0

200.0 200.0 160.0 160.0 .......... ----· ...... ---- ..............

1,470.0 1,260.0 · 2,730.0

900.0 900.0 1,000.0

380.0 · 1,000.0

380.0 ----- ------- ........................................

1,000.0 1,280.0 · 2,280.0

200.0 200.0 200.0 200.0 80.0 80.0

· 110.0 110.0 ---·· ----·-· ·---· ........................... 280.0 200.0 110.0 590.0

3,590.0 4,300.0 110.0 · 8,000.0 ------- ------- ----- = ======= 3,590.0 4,300.0 110.0 · 8,000.0 ------- ------- -----

...................................... ......... ...................................................... .................... ..................................... ........................... ....................... .....................................

/a Break· down into expenditures for the components not provided in the County report. It has been roughly estimated by the mission

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Page 1

Wu Di Animal Husbandry Development Project Plan

Introduction

Wu Di County is located in the Tuhai River Basin. Animal husbandry development activities are one component in an integrated agricultural development project described in a county feasibility study. The feasibility study describes the county and its resources and gives details of project development proposals. A translated summary of these follows tog~ther with mission's comments.

I. Project Content

1. Cattle Slaughterhouse

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At present the county has 35,000 head of cattle. 10,000 head or more can be supplied. to the market each year. It is necessary to increase the county's slaughter capacity. The plan i s to expand the existing county meat processing plant. The cold storage capacity will be expanded by 250 tons . One cattle slaughter line and a packaging workshop will also be added. After expansion, daily throughput will pe 40 head cattle; 5,000 cattle will be slaughtered per year, producing 1,000 tons frozen beef.

Beef Feedlot

The plan is to expand the Wu Di County Mule Breeding Farm and start-up beef fattening operations. The farm has 1,533 ha, of which 1,133 are grassland. Under the project, more feed lines will be put in, and electrical facilities and deep wells will be installed. Annual production of free grazing beef is planned to be 5,000 head.

Beef Cattle Production Base

1,650 specialized households in 5 townships will be selected to participate in beef production activities. Each household wi l l be granted around Y600 as well as technical assistance. Each household will produce 3 fattened cattle per year, or 5,000 in total. Each household can increase their gross income by Yl,500.

Grassland Improvement

The plan is to improve 26,667 ha of l and over a five year period. 5,333 ha will be improved per year. Investment cost is around Y300/ha. Improvement work will cons i st of bu i lding irrigation and drainage channels, building animal water reservoirs, soil improvement, sand stabilization and plant i ng. The per

NOTE


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hectare grass output can be increased to around 2,580 kg.

No environmental protection issues or measures were discussed in the County Report.

-II • . Project Management and Staffing

The Wu Di County Agricultural Development General Company will manage economic and financial aspects of the project with technical guidance from the relevant County Government Bureaus.

Wu Di Animal Husbandry Development Project - Proposed Staffing

Management Technicians Production Total Personnel

Beef Feedlot 10 20 80 110 Slaughterhouse 5 15 45 65

21 Grassland Improvement 4 7 10

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Total 19 42 135 196

Project Training

The total planned cost for animal husbandry training activities is Y20,000.

Mission's Findings and Comments

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The county was visited by the livestock specialist and the proposals discussed with county staff. One interview with a livestock producer was conducted and a potential pasture area visited.

Livestock Populat i on

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Figures provided to the mission in the field (Table 1) suggest ~ that large animal numbers have increased in Wu Di County over

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the last 6-7 years, while pig numbers have decreased and small animals, chickens, rabbits, ducks and geese have on aggregate declined slightly. County staff comments and mission's observations suggest the feed for the additional large animals have come from natural grasses with some increase in crop • by-products and stubble. Improved pasture development work in neighbouring Zhanhua county encourages the county in its proposal to develop artificial pasture to permit further increase in large animal numbers. The mission notes that these pasture resources would also suit rabbits.

Crop production and grain trade figures also provided to the mission in the field (Table 2) indicate that crop production is only slightly higher in aggregate in 1987 than it was early in the responsibility period in 1982. The figures are inconclusive but the county may be a deficit area for the most

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important livestock feeds. If so. this would account for the static population of small animals.

The county's feasibility study is not well detailed and some important proposals are not justified on the detail presented.

The Cattle Abattoir (Estimated Investment Y2,068,050)

This is appropriate in size for the county's cattle production but, as it will produce frozen carcass meat, it does not seem appropriate to handle the high quality production from the proposed feedlot . The proposal requires a detailed study.

Beef Feedlot (Estimated Investment Y3,639,000)

This proposal involves fee.ding a fairly high grain diet to finish animals in three months . In discussion, the county officials indicated that a lower grain diet had been considered and rejected as it would involve an additional winter before turnoff. The county's objective of using the feedlot to draw production from specialized farmer producers a year earlier and thus increase returns to these farmers is understood. But it is the mission's view that the proposals should be re-examined allowing for a possibly lower feed conversion rate and describing the proposed marketing chain much more carefully to demonstrat~ the ·practicality of obtaining the projected high price for the quality meat produced. In the absence of a proven market (and processing system) for the feedlot cattle, the county may be better advised to consider other uses for any available high protein feed resources .

Beef Cattle Production Base (Estimated Investment Y827,420)

Assistance to these producers seem well justified. Grass resources are likely to be available. The breed, the Bohai black cattle, seem most appropriate for the area· and the establishment of the abattoir is likely to improve market prospects for cattle producers. The proposed turnoff figures seem ambitious as they apparently assume a 100% calving rate and no losses. Specific assistance has not been costed into the county budgets, although there was discussion of credit assistance and this seems justified in light of the large capital outlay required for cattle raising •

Grassland Improvement (Estimated Investment Yl,323,230)

Working Paper ·4 Attachment 6

Page 4

Based on the success of pasture improvement in neighbouring Zhanhua county, these proposals look very

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promising although the mission did not see any of the free ~ draining soils in Wu Di that the pasture was so successful in Zhanhua county. It is thus not clear to what extent the pasture development in Zhanhua can be replicated at Wu Di.

Estimated total investment Y?,857,700 (Table 3).

(Note: These costs require revision in timing, unit costs and contingencies.)

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Cattle Donkey Mule Horse

Total

Sheep/goat Pig Chicken Duck Geese

Rabbit: - Meat - Wool

Total

CH"INA


Wu Di County Livestock Population Trends

( '000 head)

1982 1983 1984 1985 --

145 177 199 229 72 87 95 109 34 71 76 94 89 96 100 98

371 431 470 530

192 101 143 420 250 253 271 390 420 420 454 600

180 169 250 154

112 112 123 113 80 200 283 400

630 396 533 700

Source: County Livestock Bureau •


1986 1987

·267 355 82 110 63 84

104 71

516 620

418 48 154 15 400 471 658 428

204 106 99 140

711 105

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ll~? Productio1 _ In _Ott_

t~!~~

SHANDQNr._AGRICLlTURAL_DEVELOPKENT_PRQ!E~I

Prtd,ction_.ind Cr.iin Trade_in_ll, _Di Cunh

m~ ........... !2~i .. .. .. .. .. .. ...... , !2-~ .......... , ......... 12~~ .. .. . .. .. .. .. ....... t9SZ ..... · Procluc tion _In__ __Ou t _ · Productien In Out Production In Out Production In Out Productitn In

••••• I.' ••• '. I I. I •• '.' •••• •• '' ••• I I ••• ' ••••• I ••• ''. I. I. I •••• I •• I ' ••••••• I •••••• ' • •• ••• (ton«;) .. . I •• • ••••• I I •••• ' •••••••• I'.' ••• I •• I' •• I •••••••••••• I •••• I •••••• I I. I •••• I I

llhut 22,ISO 15 685 50,839 3,3?.9 49,730 3,245 72 ,640 1,075 30 84,860 224 - 3b,570 I, 5113

Corn 67,120 215/.5 505 b3,370 ..... 2, 0bl 4b,O!'i0 1,5 t,870 54 ,250 - 6,015 39,380 - 2,651, 64,783

Rice 6,225 - - fl,830 990 - s,m I ,350 - 9,310 510 - 3,192 :m - 8,040 35

so,bean 6,680 - 1,585 1~,830 - 1,230 b,370 - 2,?60 9,610 - 5,361 - 8,815 - \

SwP.et potatt 926 - - 1,024 150 - 720 70 - 1,150 55 40 952 - 856

Soybean cake - m - - - - - 175 - - 225 390

Sor~hu11 93 t481 - - 6,750 - - 5,040 - - 7,560 - - 2,568 - - b,1bb

~!!t~i: Co,nty LiuPsttd Bureau.

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-l )> ~ QI rt 0 CT rt -,

,-- n, " (1) n -' '

=:J":::, N 3 (0

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I. INVESTMENT COSTS ............................ A. Civil Works

---- ----·--Office Dormitory Dining Hall Barn Storage Roads Manure Pit

Sub-Total Civil Works B. Equipment

---------Boiler Pellet Feedmill Other Items Vehicles

Sub-Total Equipment

Unit

M2 M2 M2 M2 M2 M2 M2

C. Fertilizer (OAP) TON


Total

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CHINA .. SHANDONG AGRICULTURAL DEVELOPMENT PROJECT

Table 301. Tuhai Livestock Component - Wudi County /a Detailed Cost Table

(Yuan '000)

Quantity

1989 1990 1991 1992 1993 Total ------- ------- ------- ----------- ------- ------- ----

540 540 2,000

360 2,000

360 8,000 1,300

244

8,000 1,300

244 1,160 1, 160

1,000 1,000 1,000 3,000

Unit Cost

0. 18 0. 16 0. 17 0.13 0.15 0.74 0.07

0.94

Base Costs ---·--·---

1989 1990 1991 1992 1993 Total ======= ======= ===== ==== ==-= ==-====

92.9 92.9 312.0 312.0 60.9 60.9

960.0 960.0 192.4 , 192.4 180.4 180.4 72.0 72.0

------- ------- .......... ---- ---- -·-----1,870.4 • 1,870.4

100.0 100.0 1,022.9 - 1,022.9

- 1,594.4 • 1,594.4 140.0 140.0 ...... ---- -- - ----- ....... ---- -------140.0 2,7~7.3 • 2,857.3 930.0 930.0 930.0 - 2,790.0

------- ------- ----- ---- ---- -------1,070.0 5,517.7 930.0 - 7,517.7 ======= ==-==== ===== ==== ==== ¥====== 1,070.0 5,517.7 930.0 - 7,517.7 ======= ------- --=== ==== ==== =======

/a Consolidated Feedl ot, Feedmill, Meat Process ing

May 9, 1988 14:18

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Page 1

Zhanhua County Animal Husbandry Development Project Plan

Introduction

Zhanhua County is located in the Tuhai River Basin Area. Animal Husbandry development is one sub-component of an integrated agricu l tural development project described in a county feasibility study. The study describes the counties resources and investment proposals. A summarized translation of these proposals is given below together with mission comments.

I. Project Content

1. Stud Sheep Breeding Farm

The farm will keep 3,030 head of sheep breed stock, including 3,000 females. 2,000 improved breed ~heep will be supplied to the production base per year. 1,000 fattened sheep will be supplied to the meat processing plant. The farm area is planned to be 533.35 ha •

2. Stud Cattle Breeding Farm

50 stock breeding cattle will be kept by the farm. 40 head will provided to the production base per year. The farm will cover The farm will cover 20 ha, and will be located in a grassland area

~ which is air-seeded.

3. Commercial Cattle and Sheep Production Base

117 villages in 6 townships will be involved. 400 speci al ized households will be selected to participate in sheep r ai si ng

~ activities. On average, each household will have 50 head of fema le sheep. On average each household will supply 25 meat sheep to t he market each year. 1,500 specialized households will engage in cattle raising, with an average of 4 head free grazing cattle per household. Total number of free grazing cattle will be 6,000 head •

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4. Meat Processing Plant

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Planned annual processing capacity i s 6,000 head of cattle, 100,000 head of sheep. Planned annual production output i s 1,020 tons boneless beef, 1,700 tons boneless frozen mutton. The pl ant covers a 2 ha area. Planned blast freez i ng capacity is 30 t ons/24 hour period.

Feed Mi 11

Planned annua 1 production capacity is 4,000 tons • . The area wi 11 be 1 ha •


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6. Animal Husbandry Veterinary Technical Service Centre

This will be an expansion of the existing County Animal Husbandry Veterinary Technical Service Centre. Equipment will be purchased

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NOTE

No specific environmental protection or water treatment plans have been • discussed in the County Report.

I I. Project Management and Staffing

The County ~ Anima 1 activities.

Husbandry Company will manage all project

Zhanhua County Animal Husbandry Development Project Staffing

Party Me111bers & Management Production Total Admin . Personnel Personnel Personnel

Stud Sheep Breeding Farm 6 7 32 45 10 Stud Cattle Breeding fal"III 1 2 7

Feed Mill 3 6 21 30 Animal Husbandry Veterinary 2 15 17

Technical Service Centre Meat Processing Factory 15 20 100 135

Total 27 50 160 237

I I I. Project Training

No detailed project training plan was given.

IV. Mission Find i ngs and Comments

1. The county was visited by the livestock spec i alist and the investment proposals discussed with county officials. Established and potential pasture areas were visited, one farmer interview was conducted and representat i ve sheep and cattle herds visited.

2. Livestock popu l ation figures provided to the miss i on in the field (Table 1) indicate that all livestock numbers are increasing with the exception of donkeys .and mules. Greater population increase has been with ruminants, sheep and cattle - and this is due to increased use of pastural grasslands and improved pasture on waste lands.

3. The improved pasture programme has been very successful, particularly where the legume Astragalus adsurgens i s established

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i n free draining soils. Little or no fertilization has been used in this pasture establishment and the development looks sustainable in the long term. Although the pasture is intended for grazing only,interplanting trials with corn have been conducted by the County Research Farm and the legume appears to have a place in the early stage of salt waste land reclamation Alfalfa Medicago setiva is also established in free draining soils and both legumes being deep rooted and salt tolerant have the effect of anchoring wind blown and saline sand in addition to improving fertility. A comparison between Astragalus and alfalfa hay is presented in Table 2).

4. The county has had some success establishing a clover Melitotum suaveolens in heavier, even more more saline soils subject to waterlogging. The class of soil is more prevalent in the project area and further applied experimental work is warranted in the heavier soils. The mission notes that these pasture resources are excellent for rabbits .

5. Grain production and trade trends figures provided to the mission i n the field (Table 3) indicate that on aggregate grain production has declined since 1983 and the county is evidently a deficit area for high protein animal feeds . There seems therefore to be little scope for intensive animal feeding •

6. The county's feasibility study is not detailed in the area of market analysis and some components may need strengthening or further justification before appraisal:

Stud Sheep Breeding Farm


The county is a traditional meat sheep and goat area and numbers are increasing rapidly and have good prospects of increasing further as more improved pasture is established. There is a place for a breeding farm in the short term to provide good breeding stock· to assist in increasing meat sheep numbers. However, its justification in the long term is less certain as breeding services are also planned by means of AI through the technical service support centres.· Additional justification is required for a long term investment in this sheep breed farm. The mission does not recommend investment in fine wool breeds unless there is a simultaneous investment in training of staff in extension of fine wool sheep feeding and fine wool handling. _

Stud Cattle Breeding Farm


Again there is some justification for having an additional supply of stud breeding cattle to assist increas i ng the supply of good stock in the short term but supplies of the local Bohai Black cattle breed seem assured from surrounding areas and the mission recommends further justification be requested before appraisal of a long term investment in a cattle breeding farm •

Commercial Cattle and Sheep Production Trade

Estimated investment Y ••••••••• •••


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Assistance to specialized producers of meat sheep and cattle

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seems well justified . Feed resources are and will be ~ available. The breeds, except for fine wool sheep, seem well adapted for the area and there is no obvious competing use for the land. However, no specific assistance is costed into the county proposal s although mention of credit was made and this seems justified. • Meat Processing Plant

Estimated investment Y4,695,000

This plant is an appropriate investment for the area although marketing proposal s f-0r the frozen meat require more • description.

Feed Mi 11


It is not clear what the justification for this mill is. Zhanhua seems to be a deficit area for high protein feed, so why not import prepared feed? In any case high protein feed seems unnecessary for the sheep, cattle and goats due to the availability of hay and silage.

Animal Husbandry Veterinary Technical Service Centre


Assistance to expand this service seems well justified to provide: (i) more improved pasture land (including applied research into other sal t tolerant species); (ii) breeding services through AI; (iii) veterinary services; and (iv) extension services on methods of preserv ing pasture over the winter. In the event, the county decided to persist with fine wool sheep then the mission would recommend specific strengthening in feeding fine woo l sheep and handling fine wool. (See section on sheep design considerations).

Estimated total costs YB,561,100 (Tables 4 and 5).

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AU~ctlment 1 Table 1

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Zhanhua County Livestoc k Population Trend s

( '000 head)

• lill llll .1.ti..2. llfil. illl

Big Animal 3 1 . 5 32.5 36 . 7 48 . 0 52 0

Cattle 1 6. 7 13.6 1 6. 9 2 7. 5 31. 9

I• Donkey 1 0. 4 1 0 . 1 11 . 0 11 . 5 11 . 9

Mule 9.4 8.8 8.8 9. 1 8.2

Pig • 24.3 17. 0 4 1 . 0 23.2 35.0

• Sheep 29.9 1 7 . 7 4 3. 4 63.3 103. 1

Goat 1 2. 2 9. 1 22·. 7 2 8. 1 4 1 . 1

Sheep 1 7 . 7 8.6 20. 7 35.3 62.0 ,. Poultry 362.9 4 6 8. 1 6 0.1 . 1 530.6 7 0 0. 1

Chicken 33 8. 1 4 1 5. 1 501. 8 465.0 610.0

Rabbit 26.3 16. 9 70.0 55.0 60.0

• Meat . 22.5 1 5. 1 50.0 25.0 32.6 Wool 3.5 1 . 8 20.0 30.0 27. 4

Meat Yield (tonnes) 2, 16 5 2,490 2,388 3,055 3,325

Egg Yield (tonnes) 1 • 27 2 2. 116 1 . 5 7 6 2,655 3, 150 • Sheep Wool Yield (tonnes) 20 75 32 50 91

• Source: County Livestock Bureau .

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Zhanhua County - Comparison of Medica Setavia and Astragalus Adsurge ns Hay

Alfalfa

Astragalus

Crude Fat Fibre Ash Non-N .water _c_ __P_ ~ Protein Extract (mg/kg) .•.• •• ••••••• •••••• •. •. •••.••. ( 7.) • ••.•••••••.••.. ..••••. ........

19.40

15. 4 4

1 . 7 8

2.34

18.04 10.12

36.46 6.23

37.24

3 0. 1 8

10.58 1 .19 0.49

9.35 0.49 0.23

80

Note: Both at the point of flowering.

Source: Zhanhua Experimental Station.

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so,bean uke

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SHANDOHC: AGUC\J\.llll:AL DE\'O.OPIIENl _PROJECT

Zhaob~a~C,un1, {:rain P~o~te1ion and lr.ide_lrends

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Prt4!ill!l !n Out fiqPJP.Pd Prtdyction In Ott fiqe Feed Prod11c1i1n In Ou1 Fine feed Prod~ch,n In 001 [in.t_feed

······························································································· (1tnsl ·······················································

129,391 1s,m 4,511 Js,m 115,175 29,791 2,891 :G,m 1J~,m 13,IOS 4,249 31i,le0 114121.S 9,see 3e 42,SDI

51,331 S,870 m ~ I 000 41,285 11,"21 8(5 3,501 f.2,725 7 ,S31 - 4:m 45,23t S,975 31 4,5&0

S8,Stl ,e ,s,s 20 28,510 s1,m 12,m 221 17, I 01 H 1St5 S,475 2,121 16,HI ~2, 16G 3,525 - 15,100

6,981 1,095 4,180 3,501 9 ,li/.5 5,431 I 1825 4,509 13,731 - 2,221 i ,ceo IS,788 - - 8,00I

B,153 - - 9,408 13,m - - 1' ,Bae 9,f.28 - - S,HO 12,353 - - IO ,000

- - - If .If-I - - - 5,900

~tl~: r,tttn sl'PdtakP i~ n,1 ·inchdr<I in ut•l prodsrtien.

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I. INVESTMENT COSTS ----------------A. Breeding Sheep Farm


Table 306. Tuhai Livestock· Zanhua County (Breeding) Detailed Cost Table

(Yuan 1 000)

Quantity Base Costs ... ................. ! ............ : .. Unit ··· ··· ······-·········---·····-······

Unit 1989 1990 1991 1992 1993 Total Cost 1989 1990 1991 1992 1993 Total ---- ----- ------- ---- ---· ---- ------- ---- ----- -----

.. - ..... - .. -.... - - ...... - .. ---Land Purchase Ha 533.3 533.3 1 .51 800.0 800.0 Covered Sheet Yard M2 8,000 8,000 0.06 400.0 400.0 Al Faci Ii ty M2 200 200 0.11 20.0 20.0 Feed Store and Si lo M2 75 75 0.21 15.0 15.0 Vet. Centre M2 · 25 25 0.41 10.0 10.0 Offices, etc . M2 450 450 0..21 90.0 90.0 Equipment M2 101.0 101.0 Vehicles M2 100.0 100.0 Stock Purchase M2 300.0 300.0 Uorking Capital M2 100.0 100.0 ........ ---···· ----- ---- ....... ·------

Sub·Total Breeding Sheep Farm 800.0 1,036 . 0 100.0 • 1,936.0

B. Cattle Breeding Farm -------·· ----- ------Land Purchase Ha 20 20 3.01 60.0 60.0 Covered Yards M2 560 560 0. 11 56.0 56.0 Al Facility M2 40 40 0.11 4.0 4.0 Feed Storage and Si lo M2 100 100 0.11 10.0 10.0 Vet. Facility M2 40 40 0.11 4.0 4.0 Offices, etc. M2 135 135 0.11 13.5 13.5 Electrical Power M2 40 40 0.11 4.0 4.0 Equipment M2 68.5 68.5 -g. ~ ~ Vehicles M2 90.0 90.0 ,- ~ * Stock Purchase M2 30 . 0 30. 0 m n -'· Uorking Capital M2 .' •..•...••.. -~~:~ •••..•••..• ~~:~ ~ r ~

Sub·Total Cattle Breeding Farm 60.0 280.0 40.0 380.0 r+ 'cif C. Technical Service Centre -.J ~ . . . ... . . ... .. . ... . . .. ... ,

Land Purchase 100.0 100.0 -l" Bui !dings 320.0 320.0 Equipment 180. 0 180 . 0 ---- - ·------ ----- ........ ---- -------

Sub·Total Techn i cal Service Centre 100.0 500.0 600.0 •• ....... -----·· -···· ---- ---- --- --- -To tal INVESTMENT COSTS 960.0 1,816.0 140.0 • 2,916.0 ===== ======= ===== ==== ==== =======

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Total 960.0 1,816.0 140.0 • 2,916.0 . . . . . . ----- --- ·------ ----- -.- ------- . . .

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Tabl~ 305 . Tuhai Li vestock - Zanhua County (Processing) Detailed Cost Table

(Yuan •ODO)

Quantity Base Costs

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Unit 1989 1990 1991 1992 1993 Total Unit Cost 1989 1990 1991 1992 1993 Total

I. INVESTMENT COSTS - - - .. - -... - .. - -A. Feedmill

. - - -...... Land Purchase Factory Buildings Support Buildings Equipment Vehicles \.lork i ng Capital

Sub-Total Feedmill 8. Meat Processing Factory

-----··--------------·-Land Purchase Factory Buildings Equipment Vehicles Other I terns \.lorking Capital

HA M2

HA

Sub-Total Meat Processing Factory


Total

---- ----- ---- ---- ---- -----

1 525 525

2 2

===-- ---==== ======= ==== ==== -------

225.01 225.0 225.0 0.21 105.0 105.0

54. 1 54. 1 266.0 266.0 100.0 100.0

200.0 200.0 ----- ---- ---- -------

225.0 525.1 200.0 950.1

225.01 450.0 450.0 1,392.0 - 1,392.0 1,233.0 - 1,233.0

20.0 20.0 100.0 100.0

1,500.0 - 1,500.0 ------- ---- ---- -------470.0 2,625.0 1,600.0 - 4,695.0 ----- ------- ------- ---- ---- -------695.0 3,150.1 1,800.0 - 5,645.1 ===== ======= ===-=== ==== ==== ======= 695.0 3,150.1 1,800.0 - 5,645.1 ===== ======= ==--=== ==== ==== =======

..... - - - ...... - .. - --... - .. - - ...... - .. - -- ........ -- .... - .. - .... -... - .. - ..... - .... - - - .. -- . - . ..... ....... ... - - .. - - - .. -- - - ... - - ---. --- ---.... - -- -.. ----.... - -- ----... -- -- ........ --June 9, 1988 10:07

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CHINA




Page 1

Shen County Animal Husbandry Development Project Plan

Introduction

Shen County is located in the Tuhai River Basin Area. The Animal Husbandry Development project is one of several sub-projects being proposed by the county. A large part of the County's proposals involve the establishment of new facilities. The county's resources and proposals are set out in a feasibility study; a translated summary together with mission comments follow.

I. Project Content

1. Grasslands Improvement

The plan is to improve 20,000 mu grass lands. Improvement will be carried out in 9 different townships and under different conditions. These are listed below:

Type of Improvement . Area Townships /

Activity ~

Tree planting (nursery) 12,000 3

Saline, alkaline soil 6,000 3 improvement

Shallow soils improvement 2,000 3

2. Dual Purpose Cattle (Meat/Service) and Dual Purpose Sheep (Wool/Meat) Production Base

The base will cover 15 townships, 1,500 speci alized households will participate in cattle raising activities. 15,000 head of cattle will be raised with 9,000 free grazing head of cattle per year. Planned annual meat production is 1.44 thousand tons. 4,000 specialized households will participate in sheep raising activities. 20,000 sheep will be raised, with 16,000 free grazing head per year. Planned annual meat production is 2.3 thousand tons •


Planned annual 200,000 head of facility will year. Planned

processing capacity is 3,000 head of cattle ; sheep, 250,000 rabbits. A 300 ton cold storage be built. Stock turnover is planned at 8 times per annual frozen meat production is as follows:


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500 tons beef, 1,500 tons mutton and 400 tons rabbit meat . The

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plant will be constructed in the western part of the county .where • water resources are plentiful.

4. Hide Processing Factory

Planned annual produGtion is 200,000 sheep hides, 250,000 rabbit hides. Altogether 20,000 pieces of sheep leather will be produced. • 10,000 pieces will be soft leather.

5. Animal Husbandry Technical Service Centre

The County Veterinary Station will coordinate with the township stations and village disease protection and treatment technicians to establish the Animal Husbandry Technical Service Centre. The Centre will work to improve grassland reclamation activities, grass silage.

(Note : No · specific information on environmental protection measures was given in the County Report).

II. Project Management

Staffing: . The project management arrangement in this county is slightly different than other counties. A diagram of the management organization only as concerns the animal husbandry component is attached (Figure 1).

Project Staffing

Management Technicians Workers Total Personnel

Animal Husbandry Co. 1/ 40 47 143 230

Foreign Investment 8 7 Uti l izat ion Project Office 'l:..I

l/ The County Report did not specify if this included township company personnel as well.

'l:..I Oversees other project components besides animal husbandry as well.

III. Project Training

15

A detai l ed training plan was not given . However , the idea i s to tra in

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project technicians through short term courses and operation pract ice. • Within 3-5 years a number of farmer technicians will also be trained.

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IV. Mission Comments and Findings

1. The livestock specialist together with the mission leader and a team agronomist visited the county and discussed the project proposals with county officials •

2. Livestock population figures provided to the mission in the field (Table 1) indicate that cattle and sheep numbers have shown the greatest increase over the l ast five years; other stocks have remained static or increased slightly .

3. Grain trade trend figures were not provided, but production figures for 1986 (Table 2) suggest production is low, possibly the county is a deficit area for quality feeds . If so, this would explain the static tre~d in small animals.

4. The mission visited some pasture areas established under fast growing trees in free draining soils (poplar, etc . ). Pasture establishment was apparently partly due to variable results from aerial seeding. However, where germination had occurred, the plants were healthy and evidently producing useful growth for sheep and cattle. The villages in the area were accustomed to collecting leaves for sheep/cattle and the pasture production was complementary to this activity •

5. The county's feasibility study is not detailed particularly i n the area of marketing and further description and analysis is required before appraisal •

6. Grassland Improvement

7.

8.

Estimated investment : Y380 ,000 .

This activity appears well worthwhile , although perhaps the seed establishment process would benefit from assistance from the Zhanhua experimental farm technicians in both establishment methods and selection of seeding sites.

Beef/Sheep Production Base Support

Estimated investment : Y3,806,000 .

This investment is reported to be for stock and seed purchase. Based on the success of pasture establishment, the investment appears justified although care will be needed to ensure farmers receive good seed in time for planting in the year of initial investment. Extension input for fine wool production is requ i red .

Meat Processing Plant

Estimated investment : Y2,963,700.

This proposal is not detailed sufficiently for appraisa l, particularly in the marketing area. It appears the works wil l be fairly simple in design marketing carcass meat and these ideas might be modified in the l ight of a market study .

9. High Processing Factors

Estimated investment: Yl,128,300.


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• This proposal depends on the raw material from the abattoir described above. To the extent it is justified, this facility may also be justified, particularly if it carries processing only to • the "wet blue" stage of the hide preservation, which is not technically difficult and would overcome a serious constraint to leather producers in China, but that is to preserve the hide soon after slaughter.

10. Animal Husbandry Service Centre

Estimated investment: Y380,000. This proposal appears justified although the mission recommends it be enlarged to include extension support for fine wool producers. There appears to be serious problems in fine wool production at farm level in nutrition and wool management.

11. Estimated total investment: YS,658,000 (Table 3). I

(Note: These costs require revision in unit costs~ timing and contingencies.)

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• Working Paper 4 Attachment 8 Table 1

• CHINA


• Shen County Livestock Population Trends

( '000 head)

• 1983 1984 1985 1986 1987

Cattle 2.9 33 3.9 42 63

• Horse 5 5 5 5 6

Donkey 28 3 29 35 31

Mule 2 2.5 2.6 2.8 2.7

• Pig 104 104 124 109 113

Rabbit 59 43 58 81.4 125

Poultry 987 120 145 124 122

• Sheep and Goat 135 139 136 26 35

• Source: County Animal Husbandry Bureau •

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Soycake

Peanut cake

Cottonseed cake

Total

CHINA



Production of Oil Cakes 1986 and Utilization

Production Used as Feeds

...................... (tons)

13,300

8,342

33,358

55,000

13,000

8,300

6,550

27,850

Used as Fertilizer

30

42

26,808

27,150

Source: County Animal Husbandry Bureau.

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I. INVESTMENT COSTS ............... ..... A. PHtura ........

Seed Labour

Slb·Toul PHture B. Abattoir .........

civil llorh Land Purchete Electr icity Supply Equipment Vtlllclea Other•

Sub·Total Abet to Ir c. Leather fact ory ...................

Civil 1/orks Land Purchnsc Elcctric i ty Equipment Vehicles Others

Svb·lotal Le~thcr factory O. Tcchnicftl Service Centre .......... ....................

1, Land Purchase 2. Clvl l llorka ... --...... -.

Cl lnlc Centre

Sub·Total Civil \lorka 3. Equipment

SU:>·Total Technical Service Centre E. ~roductlon Base

.... -· ...... -.... --. S :ock and Grass Purchase /a Grass Harvester

slb·Tc.tel Production Base


To te l

/o Includes cost of grass purchase

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TON 000 md

M2 HA

HZ

H2

China Shanclong Agrfcul tural Oevelopncnt

Table 302. Tuhal livestock Cooponcnt • Detailed Cost Table

(Yuan 1 000)

Quant ity ···· ···· ··· ········· ·········· ··· ·· 198~ 1990 1991 1992 1993 Total Unit Cost .... ....... .... .... .... ······· ........ .

10 10 10.1 92.7 92.7 3.1

4,800 4,800 O.l 1.1 1. 1 l00.1

,. 350 I, 350 O.}

. 120 120 0.3

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• Project Shenxlan County

Bue Coste

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... ............................................. 1989 1990 1991 1992 1991 Total ....... ....... .... .... .... ...... .

100.0 100.0 280.0 260.0

•••• ••• •r••••! •••• •••• •• • • •••••••

180.0 lOO.O

1,113.6 1, 11l.6 l20, 1 320.1

100.0 100.0 800.0 1100.0 200.0 200.0 4l0.0 410.0 ······· . ...........................

1,750.1 1,213.6 2, 96}. 7

l7S.3 "175. 3 !JO.O llfl.0

,s.u 1~.o ~oo.o ~00.0 f,0 . 0 (,0.0

9U.0 'IU,0 ······· ······· ... . ........ .......

e,,.o.o '{lU. 3 1, 12/U

IS0,0 ISO.O

30.0 30.0 190.0 190.0

.::.~ .. ······· ......... .......... .... 220.0 220.0

80.0 80.0 ......... ······· ................ ·······

160.0 220.0 300.0

l,787 .o J ,787.0 19.0 19.0

...................... . .................. 3,806.0 l,806.0 -.. .... - ...... -· ...... -.... -... -... -... 6,736.1 1,921.9 8,658 .0 ••• :.l >c• a . oe: :.•> c 2 a2 .- -: ~ • •••• •••••• & t.,i36.1 1,? 21.9 8,6~8.0 Z!;. .#'.1.::%:1: ;:~~===• :;t;:: .::. ;;, • .. •••• ,:•~•· •.

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Parametara ........ ....................... Phy. Cont. for. a ro11 Tax Sum11ry Rit a Exch. Rau Accow,t ....••.... ········· ...... .

0.05 0.6 0 11A TL o.os 0 0 LAI

o.os 0.3 0 BU> 0 0 0 LA

0.05 0. 3 0 I LD 0 0.6 'O AOLQ 0 0.61 0 VfK 0 0.6 0 AOtQ

0.05 O.l 0 BLO 0 0 0 lt.

0.05 0.3 0 8LO 0 0.6 B AGCO 0 0.6 0 YEH 0 0.6 0 ACCO

0 0 0 LA

o.os O. l 0 DLO o.os 0.3 0 BLO

0 0.7 0 EO

o.os 0 0 8AO 0 0.7 0 EO

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CHINA




Page 1

Teng County Animal Husbandry Development Project

Introduction

Teng County is located in the Yi Meng Mountain Region. The Animal Husbandry component is the only project component being proposed by the county. The county's resources and proposals are described in a feasibility study. A summary of the proposals, together with mission comments, follow.

I. · Project Content


The project cal ls for the expansion of an existing company breeding farm. The farm will have 1,100 stock rabbits (including 100 males) and an additional 200 reserve rabbits. 22,000 improved breeding rabbits will be supplied to the production herd annual ly.

2. Pellet Feed Mill

A new plant will be established on 1. 7 ha land. Planned annual production capacity is 10,000 tons of feed. The mill will serve

. farmers within an 18 km radius •


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Under the project, an existing meat processing facility will be enlarged. The original plant was built in 1981, covers 3.3 ha and serves farmers within a 15 km radius. The expanded facility will · have an annual processing capacity of 3 million rabbits and ,produce 2,240 tons of bcne-less, frozen rabbit meat.

Rabbit Fur Processing Plant

The project proposal calls for the expansion of an existing hair and hide processing plant. The planned annual processing capacity is 3 million hides, producing 60,000 items of rabbit for clothing and 50~000 for product items.

Commercial Rabbit Production Base

7,800 households will engage in rabbit production under the proposed project. Each household will keep 11 breeding stock and produce 400 ·market rabbits annually . Altogether for the entire country, 3.12 million market rabbits will be supplied annually .

6. Technical Servi ce Centre


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• The Centre will be located at the Veterinary Technical Service Centre, but will be a newly established entity under the project. It will provide technical guidance, consultation, feed monitoring and disease prevention and treatment services to the project sub-components. ti

II. Project Management and Staffing

The Teng County Animal Husbandry and Industrial Commercial Company will be responsible for project implementation management. T~e Company is already in operation. Under the project, the Company will expand its staffing.

Propasea Project Staffing

Parti Members & Management Production Total Admin. Personnel Personnel Personnel

Rabbit Breeding Fann 9 9 42 64

Pe 11 et Feed Mi 11 10 11 37 58

Meat Processing Plant 26 42 325 393 Fur Processing Plant 43 40 808 891 Technical Service Centre 12 12 Management Organization. 3 18 - 21 --

Total 91 132 1.216 1.439

I I I. Project Training Plan

Since the meat processing factory -has had several years of operating experience and i s a high-quality processing operation, the employees who will be newly recruited with the project expansion will be trai ned by the original pl ant staff. Detai l s of the proposed project train ing pl an are shown in t he fo llowing t abl e : ·

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Worki ng PaQer 4 Attachment 9

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Project Proposed Trai ning Plan

Trafoing Training 1989 Cost Training 1990 Cost Content Period Number of Yuan'OOO Period Number of Yuan'OOO

(months) Person Times (months) Person Tintes

Operation Management 6 30 30.0 6 10 10. 0

Breeding Management 1 1.aoo 5.0 1 1. 500 5.0

Disease Prevention 1 1,800 5.0 1 1.500 5.0

Feed Processing 3 20 10.0 6 3 6.0

Fur Maki ng 6 50 25.0 12 3 6.0

Dying 6 10 5.0 12 2 4.0

pothi ng : Design 6 20 13.0 6 5 5.0

Freeze Processing 6 2 2.0 6 2 2. 0

E'qui p11ent Repair

Total

IV.

6 10 5.0 3 5 3.0

100.0 46.0

Environmental Protection Measures

1. All equipment used in raw material t r anspor t, cr ushing and packi ng will be air-tight and equipped with ventilation and dust-removal facilit ies. Li ght ni ng rods will be inst al l ed on build i ngs where necessary. Cables will be double-granded. The freezing workshop will be equipped with a Q-3 grade anti-explosive protective device.

2. Manure will be treated and then used on agricu l tural fie lds. Since the water is high in organic content and contains no poisonous materials, it will undergo a secondary treatment . After treatment , the water will meet government industrial waste water standards.

V. Mission Findings and Comments

1. Teng county was visited by the li vestock specialist, the team leader and the agronomist. The rabbit abattoir and fur factory were inspected , some farmer interviews carried out and the proposals and financial perfomance of the county animal husbandry company discussed.

2. Livestock population figures presented to the mission in the fie ld (Table 1) suggest that livestock numbers have i n aggregate fallen


Page 4

during the last six years, particularly cattle and, surprisingly, meat rabbits. Goats and chickens have increased slightly and pigs fallen slightly.

3. Grain production trends were not provided but grain trade trend figures that were (Table 2) suggest that production is somewhat static. The county's feasibility study reports porduction in 1986 and says sufficient of this is not being utilized at present to carry the increase expected under the project. Some further investigation is warranted to determine why livestock numbers have not been increasing during the favourable market circumstances of the last six years, to utilize this reported surplus.

4. Rabbits are usually an excellent form of supplementary livestock production in Shandong and they have apparently been in Teng county for some years. Farmers interviewed by the mission were enthusiastic and skilled in rabbit husbandry. There has been an efficient rabbit abattoir and a yarn spinning plant in the area supplying a good market and so it is a puzzle why meat rabbits are apparently falling and the rabbits have remained static. This will need to be investigated during appraisal.

5. The county's proposals have been detailed quite well. Following are the mission's reactions assuming the apparent problem with feed supply can be explained.

- Rabbit Breeding Far~


This breeding farm is an important part of the rabbit enterprise. It is not clear why the multiplication phase of breeding been omitted. A discussion on hybrid rabbit breeding appears in Appendix A.

Pellet Feed Mill

Estimated Cost Y4,493,000

This mill is intended to supply the breeding station with a compound feed. This is necessary and technically and financially justified. The mill is also intended to supply farmers with a concentrate pellet for meat and t heir production. Technically, this is appropr iate for meat production but the margin between feed costs and meat sales is quite fine and this proposed sale of pellets to farmers will not occur if the feed is priced incorrectly.

- Meat Processing Plant

This meat processing plant was inspected by the mission. It is obviously run efficiently and would · benefit from upgrading. The most significant area of risk for this investment li es in ensuring throughput. This is partly a problem of pr1c1ng against the competition from forest rabbit meat sellers in nearby urban areas and partly a problem of overall meat rabbit production . This needs further discussion.

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Rabbit Fur Processing Plant



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The mission also inspected this plant and studied its financial results. It is evidently not operating at a profit at p~osent . The post-slaughter treatment of skins in China is said to be poor. Certainly raw material waiting to be processed at this plant was very badly damaged by insect mould and knife cuts. To the extent this proposal is intended to enable skins to be treated soon after slaughter (in the expanded abattoir, see below) it is certainlly justified. Justification for investment beyond primary tanning into the fur apparel stage depends on markets and technical skills in fashion that need to be demonstrated before appraisal. The mission recommends to the county to investigate the prospects for a joint venture with a partner having access to both markets and technical skills in fashion furs •

- Commercial Rabbit Production Base

.Estimated investment cost Y •••••••••••• (not provided).

e No particu lar items have been costed against this proposal. There was discussion of credit for cages and breeding stock and this may be justified but will need to be discussed again during pre-appraisal.

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6. Technical Services Centre


The mission inspected the present Technical Service Centre and its equipment. Evidently the level of training to use existing laboratory equipment is low and re-training and new training will be an important part of any new investment. Feed and disease analysis services will be important to the county rabbit producers and the propsal is justified.

Total estimated investment Yl4 ,362,400 (Tab les 1 and 2)

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CHINA



Teng County Livestock Population Trends

('000 head)

1982 1983 1984 1985 "i986 1987

Cattle 38.41 31.11 23.46 19.21 14.74 10.78

Goats 297.69 305.27 255.19 272.60 303.62 367.2

Meat Rabbit 495.83 538.66 338.77 323.29 332.5 355.5

Hair Rabbit 30. 77 29.32 17.83 .

17 17.5 30

Geese 200.12 202.20 214 340.1 340 238.2

Chicken 1,503.2 -· 1,580.16 2,967.6 3,111 3,060 3,866.8

Pig 284.67 286.95 299.44 322.84 256.11 235.6

Source: County Animal Husbandry Bureau •

CHINA

SIIANDONG AGRICULTURAL DEVELOPMENT PROJECT

Teng County Grai n Trade Trends

1982 1983 1984 1985

In -- Out In -- Out In -- Out In -- Out -- - -- -

< '000 tons I

Corn - 5 - 6 - 13.5 - 8

Wheat - 2 - 3 - - - 3

Sweet Potato - 2 . 5 - 2.5 - - - 2

Soybean Cake - 1 - 1. 5 - - - 2

Sorghum - 0.5 - 0.5 - - - 1

<Yuan/kg>

Corn - 320 - 340 - 400 - 480

Wheat - 560 - 580 - 590 - 640

Sweet Potato - 230 - 250 - 290 - ,120

Soybean Cake - 600 - 650 - 680 .: 780

Sorghum - 330 - 350 - 420 - 500

Source: Coun ty Animal Husbandry Bureau.

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1986 --In Out In

- 5 -

- 3 -

- 2

- 1 -

- 0.5 -

- 120 -

- 660 -

- 120 -- 760 -

- 410 -

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45

3

0.5

0.5

400

700

400

750

420

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::r :::, N 3 (0

(1)

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, . INVESTMENT COSTS .....•.•.•..•••• A, Fur Process ing )actory /a ••.•.......•.........

Civil Works (4600 m2) Equipment Other costs Vehicles

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Sub·Totel Fur Proeeatlng Factory /a 8, Rabbit Abattoir /b

··················· lond Acquisition Civil \Jorks (2540 m2) Equipment

· Othor Costa V11hlc lu \Jorklng Ceplt11l

!:11b·Tot11I R11hblt Abnttolr /b c. re l let feednl II -... .. .. .. .. -.. .

L11nd Acqulnltlon Civil Vorkn (2670 m2) Equipment Vch lcl~n Othor Co!lto Vorklng C11pltt1l

Sub·Tot 11 I relict Fe~dmltl

•lllll INVESTMENT COSTS

t11t

······················· ········ Expnnalon of exlatlng factory Expansion of existing factory

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Chinn Shendong Agricultural Oevelopnent Project

Teble 614. Yi Meng Mts. · Livestock Processing· Teng Covnty Detailed Cost Tobie

Quont I ty ... .. .... 1989 1990 1991 1992 1993 Total •••• •••• as:s c::, :::: ::::z

(Yuan '000>

Llnt t Cost

Bose Cos ts ... ...... -...... -

·1989 1990 1991 1992 1993 Totol ======= :====== ======= ==== ==== ========

40. 1 600.2 640.3 510.0 510.0 70.0 70 .0

200.0 200.0 ..... ................................... . ............ .. ... ..... 240.1 1,180.2 1,420.3

120.0 120.0 267.9 1,049 .2 1,317.1 922.0 156.0 1,078.0

321, . 0 324.0 200.0 200.0

2,400.0 2,400.0 , ... ....... .. ..... ...... ....... .. ········

1, 50?.? ,.~?.?.2 7,t.00.0 5, /,39. 1

t.0(),0 400.0 1.20.e 82t..2 1,21,S .0

, '77.~. 0 ,,oa .o 2,133.0 150 .0 150.0

65.0 65.0 500.0 500.0 . . .. . .. . . . .. . .. .. . .. .... --.

2,695.8 1,297.2 500.0 4,493.0 -...... . . . . .. . . . . .. . . . .. . . . . . . . . .. ........ 4,445.8 4,006.6 2,900.0 11,352.4 ======= ======= ======= ==== ==== ======== 4,445.8 4,006.6 2,900.0 11,352.4 ======= ======= ======= ==== ==== ========

........................................................... ............................... ~ ....... ...... ... ................. . rl l 26, 1988 14:27

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Parometers . -......... ..

Phy. Cont. For. Gross Tax SU1TT118ry Rate Exch. Rate Account

::::!::

0.05 0.3 0 0.6 0 0.6 0 0.6

0 0 0.05 0.3·

0 0.6 0.05 0.3 :o 0.6

0 0

0 o. 0.05 0.3

0 0.6 0 0.6 0 0.6 0 0

========= =======

0 0 0 0

0 0 0 0 0 0

0 0 0 0 0 0

BLD AGEQ AGEQ

VEH

LA BLD

AGEQ BLO VEH

\IC

LA BLD

AGEO VEH

AGEO I.JC

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=r- :, vJ 3 IC ,,,

:, -u ~ QI

"O '° ,,, ., ~

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I . INVESTMENT COSTS ...... - .. ----............ .. A. Breeding Meat Rabbit Farm .......................................

Land Acquisition Civil \.lorks (3590 m2> Equipment Vehicles Stock Purchase \Jorking Capital

Unit

Sub·Total Breeding Meat Rabbit Farm B. Technical Service Centre

--- --------Civil \.lorks Equipment Other Costs

Sub·Total Jechnical Service Centre C. Management Support

------------------Civil \.lorks Vehicles

Sub·Total Management Support


Total


Table 613. Yi Heng Hts. · Livestock Production· · Teng County Detailed Cost Table

ouantity --------

1989 19?0 1991 1992 1993 Total ==== ==== ==== ==== ==-- -----

;

(Yuan '000)

Unit Cost

Base Costs ··---- --·-···--········--·· ··· -· ···-~--1989 1990 1991 1992 1993 Total

-==== = ======= ===== ==== ==== =======

320.0 320.0 303. 1 600.0 903. 1

237.0 237.0 100.0 100.0

100.0 100.0 100.0 100.0 ...... ...... ........... ...........

723. 1 937.0 100.0 • 1,760.1

50.0 100.0 150.0 400.0 400.0

50.0 50.0 ---- ----- ---- ---- -------

450.0 150.0 600.0

150.0 ' 300.0 450.0 200.0 200.0 ----- ------- ----- ---- ---- -------350.0 300.0 650.0

1,523.1 1,387.0 100.0 · 3,010.1 ======= ==== ======= 1,523.1 1,387.0 100.0 3,010.1 ======= ======= ===== :c:;: :::acaa

-------------------------------·----------------------------------- ------ -------···························--· -····-··· · June 9, 1988 10:07

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Page r

Yi Nan County Animal Husbandry Development Project Plan

Introduction

Yi Nan County is in the Yi Meng Mountain Region. The Animal Husbandry Development Project is the only project component being proposed by this county. The county resources and development proposals are described in a feasibility study. A translated summary together with mission comments follows:

I. Project Content

One county breeding farm will be established on 0.66 ha of land .

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3.

Rabbit Breeding Farm

This farm wil.1 have 1,000 stock rabbi°ts (750 females, 100 males and 150 reserve rabbits). The farm will supply the expanded township breeding farms and demonstration households with / 16,000 improved breed rabbits per year. In addition, 15 township rabbit breeding farms will be expanded under the project . Each of these farms will have 350 stock rabbits (300 females, 20 males, 30 reserve rabbits). Each township farm will supply rabbit raising specialized households and demonstration households with with 8,000 breeding and market rabbits. Altogether, the 15 farms will supply 120,000 rabbits annually .

County Goose Breeding Farm

The farm will raise 1,000 stock geese (850 females, 150 males) • 250,000 geese will be supplied annually to geese ra1s1ng specialized households and demonstration households. The farm area will be 0.53 ha.

Meat Rabb.it and Goose Processing Plant

The project proposal is to expand an existing facility. The planned annual processing capacity is 2 million meat rabbits and 1.~ million geese. Planned annual production output is 1,672 t ons boneless, frozen rabbit meat, 2 million rabbit hides and 3,520 tons of frozen goose meat. Designed cold storage capacity is 500 tons, and 50 tons blast freezing capacity per 24 hour period.

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4. County Pe llet Feed Mill


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• The project calls for the expansion of the existing County Feed Mi l l. Present capacity is 2,000 tons of compound feed per year. With expansion the annual production will be raised to 4,000 tons ~

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of rabbit pellet feed. The feed mill will supply the county and township rabbit breeding farms as well as some demonstration households.

Down Feather Factory

Under the project the County Down Feather Factory will be expanded. The existing facility was originally a hide and yarn processing factory and was converted to feather processing in 1983.

Planned annual production output is 450 tons of feathers, 45 tons of fine feathers and 180 tons of down. 160,000 feather product items will be produced annual ly.

6. Meat Rabbit and Goose Production Base .

The production base will consist of 3,000 meat 'rabbit arid goose demonstration hosueholds and 19,000 meat rabbit and goose raising hous.eholds. Each demonstration household will raise 20 breeding rabbits and 112 breeding geese. They will supply the rabbits to market per year and 100 geese. The rabbit and goose raising houeholds will have 40 stock rabbits and 80 stock geese. Each household will produce 39 market rabbits and 78 geese·each year. 2.2 million meat rabbits will be produced each year. 2 million of these will be marketed. 2 miltion gees~ will be produced annually, of which 180,000 will be marketed. 300 vi l lages in 28 townships will be involved.

(Note: These are the figures provided in the report. Probably there was a mistake in the number of meat rabbits each household would produce).

7. Animal Husbandry Veterinary Technical Service Centre

8.

The Centre will provi de t echnical guidance, feed analys i s, and disease treatment and prevention services. Most importantly, the Technical Service Centre will provide training in rabbi t and goose production to demonstration and specialize1 househo lds.

Breeding Rabbit Management Techniques

The county and township breeding farms will use the following management techniques:

1. Rabb it Cage Structure:

Most rabbi t cages for breeding, reserve and young rabbits wi 11 be made of · cement, with 3 levels. In order to facilitate registered breeding and management, each rabbit (males, females and reserves) is given its own cage.

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Raising Management:


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In order to protect the rabbits against disease, artificial (processed} feed, automatic water supply and manual cleaning techniques are used. Artificial insemination is used for breeding with the same breeds being mated in order to establish breeding lines and propagation records. After weaning, the young rabbits are put into cages. The growing period is usually around one month . Reserve rabbits are selected from the young rabbits and put into reserve rabbit pens. They are kept there until the year of breeding , at which time they are switched to the breeding rabbit group pens to supplement the breeding stock .

Labour Requirements for Rabbit and Goose Production . (See attached table)

II . Project Management and Staffing

All project activities will be under the management of the Yi Nan County Animal Husbandry Development Corporation.

III. Environmental Protection Measures

1.

2.

3.

4.

Pellet Feed Mill:

Feedstuffs will be transported and stored in air tight containers in the feed mill. Also an adeq~ate ventilation system will be installed. Rain run-off and sewage water will be emptied into the city's sewage system.

Rabbit and Goose Breeding Farms:

Waste products will be biologically treated (with heat) then used on agricultural fields. Sewage and rain run-off will be emptied into underground waste water drainage channels.

Meat Processing Plant:

Waste water from processing, sewage water and rain run-off wi ll be treated together using a 2nd grade chemical treatment. After water is cleaned to government industrial standards it will be used on agricultural fields. Waste products fr.om slaughtering will be bio logically heat treated then used on agricultural fields. Some of the offal can be used for human consumption or as rabbit feed. Rabbit heads and bones will be used by the pellet feed mill . The instal lation of the plant's boiler will follow government emission standards.

Feather Factory

Waste water from processing, sewage water and rain run-off will be treated with a 2nd grade chemical treatment until the government standard for industrial waste water is wet (COD 2 100 mg/1}, BOO 2 60 mg/1 SS 2 50 mg, Ph 6-8) . After treatment, the water will be drained into underground water channels •

IV. Mission Findings and Comments


Page 4

1. Yi Nan County was not visited by the mission. A briefing was provided but little discussion was possible.

2. Livestock popu lati on trend figures provided to the mission in Yi Nan (Table 2) indicate that in aggregate livestock numbers have increased around 60% over the last seven years; geese and meat rabbits the most. Cattle and chickens moderately, pigs have been somewhat static, while goat and hair rabbits have declined.

3. Grain production trends were not provided, but grain trade trend figures that were suggest the county is in surplus and that production has increased very significantly. Coarse feed supply seems adequate as cattle numbers are still rising and the figures indicate a capacity for increased livestock numbers during the project period. The county's proposals emphasise geese which are transferred to the area and, as noted, have been increasing in population.

4. As the mission was not able to inspect any of the sub-projects, the comments below are realted only to extrapolation from nearby counties for the specific enterprises proposed. The detail provided in the county's feasibility report are relatively comprehensive.

5. Rabbit Breeding Farms

Estimated investment Y2,590,000 ·

There are two levels of breeding farm described µnder the cost category . The general breeding strategy is appropriate and the investment is likely to be justified.

- Goose Breeding Farm


Apparently justified.

- Meat Rabbit and Goose Processing Plant


This is a relatively large investment. There has evidently been considerable thought on plant design; some on raw material will r~quire more justification in marketing before appraisal.

Pellet Feed Mill

Estimated investment Y388,l00

This investment may be required to supply feed for the breeding farms. Pellet feed for meat rabbit producers is technically desirable due to the benefits of the pelletting operation but care has to be taken to ensure the feed is priced competitively otherwise farmers will avoid it and the mill will have idle capacity.

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- Down Feather Factory

Estimated investment YS,693,500

Working Paper~ Attachment 10

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This proposal is a relatively large investment. It appears to be thought out in design, it processes a significant by-product of goose production and markets probably exist although these do not appear to be detailed. The study will need further work prior to appraisal.

- Meat Rabbit and Goose Production Base


·-The feasibility study refers to support to the production base of geese and rabbit farmers but this is not detailed. Perhaps it refers to the provision of credit for the construction of pens and ponds and the purchase of foundation stock. It is a large investment and will require further study.


Estimated expenditure Y589,300

This investment is not described and will require study as to the specific services to be supported.

Total estimated investment Yl7,80l,OOO

(Note: These costs will require revision as to timing actual items unit costs and contingencies) •

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SHANDONC AGRJCUTIJRAL_DEVELOPHEHT_PROJECT

Yi Nan_Coun1~_-_Labour_Require"ents_for_Rabbit_and_Goose_Production

~£1!!iti H2!.!n~.1~2~_2f h1useholds_eng!qed

in_!~!!~~!!

Heat rabbit raisinQ 3,000 de"onstration househol~r.

Goose raising 31000 deMonstratian households

Breeding rabbit ra i~jng 19 1000 rabbit and · goose produrtitn

Breeding goose raisjng househol~~

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No._2LStock

20

12

4

6

1/ Assu"ing each labourer works 300 ~ays per year. g/ Total nuKber of J~b ourers required for de"onstration houstholds, ~/ Total nu"ber of labturers requirPd for productjon households.

tlo. _Produced for _imket

42~

100

41

BO

No , annu~l --------..,-~~t!~1~?l housrhold

80

40

10

20

Annual_No._of to~a1 _!!2t!~!~S

240,000

120,000

190 ,000

300,000

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Total_No._of_ ~!~2~r!ti re~~ir.~~ 1/

t,200 g;

t, 900 ~/

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CHINA



Yi Nan County Animal Husbandry Development Corporation

Proposed Project Staffing

Management Workers Technicians Total Personnel

County Rabbit Breeding Fan11 3 9 3 15 County Goose Breeding Fama 3 5 2 10 Township Rabbit Breeding Fanns 45 45 30 120 Meat Processing Plant Pellet Feed Mill Feather Factory Technical Service Centre

1988

1989

1990

Total

Year

Other

Total

No. of Training Session

6

34

34

74

17 267 22 303 7 13 6 26

9 253 57 319 6 1 31 39

90 593 151 834

Proposed Project Training Plan

No . of Trainees

600

3.000

3,000

No. of days per session

5

2

2

Cost (Yuan'OOO)

12.0

12.0

12.0

4.0

40.0

Remarks

Village training

Demonstration households

Demonstration households

Invite teacher to teach finance and office matters

The Animal Husbandry Veterinary Techn ical Service Centre will organize all the training sessions. In addition techn ical and managerial personnel will be sent out of the country for training and some experts in the field invited in to give SOiie training.

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Goat

·t,1eat · Rabbit

Wool Rabbit

Geese

Chicken

Pig

CHINA

Working Paper 4. Attachment 10 Table 3


Yi Nan County Livestock Population Trends

( '000 head)

1982 1983 1984 1985 1986 1987

26.9 29.1 30.5 33.0 39.8 45.5

43.0 41.5 32.6 25.4 27.8 22.8

65.3 45.5 24.5 75.0 300.0 343.2

717. 3 383.3 575.7 606.2 582.8 351.3

201.0 201.2 261.6 261.6 350.0 443.1

955,0 961.0 1,257.8 1,257.8 1,284.9 1,263.3

278.4 273.9 300.7 306.0 258.4 257.6

Source: County Animal. Husbandry Bureau •

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Table 607. YI Meng Hts. • Livestock Production· Ylnan County Detailed Cost Table

(Yuan '000)

Quantity Base Costs

Uni t 1989 1990 1991 1992 1993 Total Unit Cost 1989 1990 1991 1992 1993 \otal :::2 ==== -::: ==== ==== ==== ===== ========= ===== ==== · == «: c::: ==== :::.:2~

I. INVESTMENT COSTS ·------------·--A. Heat Rabbit Breeding farm /a

-----------------------------Land Acquisition Ha 0.4 0.4 150 60 .0 60.0 Civil IJorlcs 27.5 50.0 77.5 fqulr":nt . 9.3 3.7 13.0 Stoc Purchase . 30.0 30.0 Other Costs 10.0 10.0 IJorlcing Capital . 10.0 10.0

....... ---·· ·-··· · · ·- .... ···---· Sub-Tota l Meat Rabbit Breeding farm /a B. Meat Rabbit Breeding farm /b

96 .8 63.7 40.0 200.5

········-···-· ·············--Land Purchase Ha 0.7 0.7 227 149.9 149.9 Civil IJorlcs 100.0 135 .9 235.9 Equipment 8.0 3.0 11.0 Veh lcles 30.0 30.0 Stock Purchase · 100.0 100.0 Other Costs 24.0 24.0 IJorlcing Capital . 34.4 34.4 ----- ............ ---· .................

Sub-Total Heat Rabbit Breeding farm /b 287.9 162.9 134.4 585.2 c. Goose Breeding farm

·-····-------------Land Acquisition Ha 0.6 0.6 226.5 120. 1 120.1 Civil Yorks (1295 m2> 48.6 113. 1 , . 161. 7 Equipment 15.3 9.5 24.8 Vehicles . 50.0 50.0 Stock Purchase . 63.0 63.0 IJorking Capital . 25.0 25.0 Other Costs /c . 50.9 50.9

....... ----- ......................... .. Sub-Total Goose Breeding farm 234.0 173.5 88.0 495.5 O. Technical Service Centre

---------------------··· Land Acquisition Ha 0.6 0.6 224 118.8 118.8 Civil Yorks (1960 m2) 65.3 268.5 333.8 Equipment 36.0 10.8 46.8 Vehicles 80.0 80.0 Training · 190. 0 190.0 IJorking Capital 10.0 10.0 ---·· .................... ---- .... .... ....

Sub-Total Technical Service Centre 300.0 469.3 10.0 779.3 .. - .. .. .. .. . .. .. . . .. .. .. . -. . . .. -.. . ......... -Total INVESTMENT COSTS 918.6 869.4 272.4 · 2,060.4

I ----- ----- ----- -- -- - -- - -:--x-a

Total 918.6 869.4 272.4 2,060.4 ----- ----- ----- ---- ---- -------

...... ~ ..... ·.· .......... / b At Township level /b At County level /c Including Incubator

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I. INVESTMENT COSTS -·---------A. Abattoir

···· ·-·· Land Acquisition Civil Works Equipment Vehicles Working Capita l

Sub·Tota l Abattoir e. Pellet Feeanf ll

· ···-----------Lend Acquisition Clvl l Works Equlpnent llorklng Capital

sub· Total Pellet Feeani ll

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Sub·Total Feather Processing Factory D. Goose and Rabbit Producer Assistance

Civil Works Li vestock Purchase Other

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SHANDONG AGRICULTURAL DEVELOPMENT PROJECT Table 608. YI Heng Hts. · Livestock Processing· Yinon County

Detailed Cost Toble (Yuon 1000)

Quantity

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Bose Costs

Unit 1989 1990 1991 1992 1993 Totol Unit Cost 1989 1990 1991 1992 1993 Total asas •••• •••• c••• •~•• •••• ' •=~•• • ••••••••• ••••c••• ••••••• ••••••• •••• •••• ••••••••

Ha 4 4 150.01

Ha 0.6 0.6 225

Ha 2 2 150.01

600.0 520.0 1,089.0

1,860.0 400.0

290 .0

· 1,500.0 ............. ...... ............ 3,380.0 1,379.0 1,500.0

135.0 39.6 57.5 70.0 26.0

60 .0 . .. . .. . . . .. .. . - .. . .. . . ......... 244.6 83.5 60.0

300.0 711. 5 1 , 239. 0

2,260.0 200.0

183.0

800 .0 .......... ~ .. .................. 3,471.5 1,422.0 800.0

528.0 1,439.0 1,433.0 ...........

600.0 1,609.0 2,150 ,0

400.0 1,500.0

· 6,259.0

135.0 97 .1 96.0 60.0

388.1

300.0 1,950.5 2,443 .0

200.0 800.0

5,693.5

528.0 1,439.0 1,433.0

Sub· Total Goose and Rabbit Producer Assistance

Total INVESTMENT COSTS 3,400.0 .. . . . .. .. . .

10,496.1 2,884.5 2,360.0

3,400.0 .......... 15,740.6

Total ======== ======= ==~==== ======== J0,496.1 2,004 .5 2,J60.0 15,740 .6 ======== ======= ==-==== ----------------

--·---·----- -·- ----------------------------------------------··---------·--·----------------~-- ------------······----·················· May 9, 1988 14:19

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Page 1

Yi Yuan County Animal Husbandry Development Project Plan

Introduction

Yi Yuan county is located in the Yi Meng Mountain Area. Animal Husbandry Development is the only project sub-component being proposed under the project. The county's resources and development proposals are described in a feasibility study. A translated summary of the proposals together with mission comments follows:

I. Project Content


This farm will be established at the existing County Animal Husbandry Breeding . Farm. · The farrtrwill have 3,590 female rabbits and produce 75,000 breeding rabbits per y~ar. The breeding farm

' will use artificial insemination with fresh sperm for the breeding. A breeding system and records will be established.· Other rabbit breeding management techniques are similar to those described in Yi Nan county (regarding cage construction, the raising of young rabbits and selection of reserve rabbits).

2. · Pellet Feed Mi ll

• Under the project, the existing county feed mill will be exp~nded . A new pellet feed production workshop will be built. The pelletizer which has been tentatively selected for the mill will produce 1 ton of pellets per hour. Planned annual production is 3,000 tons .

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3. Rabbit Meat Processing P~ant

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The county meat processing plant will be expanded under the project. A rabbit meat processing workshop will be added to the existing facility. The planned annual processing capacity is 3 million rabbits. The plant has 900 tons of cold storage capacity.

Rabbit Hide Processing Factory

The planned annual production output is 106,000 items of rabbit wool clothing •

5. Technical Servi ce Centre

The Centre will be located in the premises of the County Animal Husbandry Economic Development Company. It will provide technica l

~ guidance, feed analysis, disease prevention and treatment services


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for the various project sub-component. Most importantly, the Centre will provide breeding management technical assistance and ~ training to the production base households.

6. Commercial Rabbit Production Base • 251 villages in 17 townships will be involved in rabbit production

activities under the project. 10,000 rabbit production specialized ~ households will raise 3 million market rabbits per year. Each household will have 130 cages with 17 breeding rabbits. On average, each household will need 40 labour days per year for rabbit raising activities. Assuming that each labourer works 300 days per year, a total of 2,000 labourers will be required for the rabbi t production base. •

II. Economizing Measures which will be adopted by the Project Management ·-

1. Equipment with small-scale operating capability will be selected.

2. Equipment capacity will be determined by production capabilities, in order to avoid 11 big horses drawing small carts".

3. The liquid chemical water solution which the rabbit hides are soaked in will be recirculated in rabbit hide processing in order to economize on water and supplementary materials.

III. Environmental Protection Measures

1. Pellet Feed Mill:

2.

Feedstuffs will be transported and stored in airtight containers. In addition, ventilation equipment will be used in the mill . Sewage water and rain run-off will be emptied into the city's sewage system.

Rabbit Breeding Farm:

Rabbit excrement will be transported to an area outside the factory where it will undergo biological heat treatment. After treatment it will be used in agricultural fields. Sewage and rainwater will be emptied into underground water channels to a small river on the farm 1 s western side.

3. Meat Processing Factory:

The project plan calls for the construction of one water treatment facility where industrial and domestically used waste

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water wil l be processed . Since the water's organic matter content • is high with no poisonous matter, it was decided to use the 2nd grade chemical treatment process . The water will be treated to government industrial waste water standards. The factory's boiler will be installed with the necessary equipment to reach government emission control standards .. Waste products (excrement) from the slqughterhouse will be biologically heat treated, then ~ used on agricultural fields. Some of the animal offal can be used for human consumption; the rest will be used for animal feed. Rabbit heads and bones will be used by the pellet feed mill.

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4. Rabbit Hide Processing Plant:


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One waste water disposal facility will be built for the plant. After treatment. when the water has reached government industrial waste water standards, it will be drained into a small river to the east of the plant •

Project Management and Staffing .

All project activities will be under the general management of the Yi Yuan County Animal Husbandry Economic Development Company. In add ition, each sub-component will have its own management organization.


Party and Management Production Total Administrative Personnel Personnel

Personnel

Rabbit Hide Processing Plant 41 34 1.125 1.200 Pellet Feed Mill 3 10 27 40 Meat Processing Plant 14 21 360 395 Rabbit Breeding Far111 7 10 23 40 Technical Service Centre 7 27 34

Total 72 102 1.535 1.709

IV. Project Proposed Training

Since the meat processing plant and pellet feed mill have already been in operation for some years, several of their technicians are exper ienced in production technology. These technicians will train new workers recruited with the expansion of the facilities. For the other project sub-components, newly recruited workers and technicians will receive basic training through the technical service centre. Per.iodic training sessions will be held by the Technical Service Centre for the members of the production specialized households as well.


1. The county was not visited by the mission. County proposals were not ·discussed with county officials.

2. County animal husbandry population trend numbers that were provided to the mission (Table 1) indicate livestock numbers have

· increased in aggregate over the last seven years, particularly with regard to ruminant cattle and sheep; rabbits have also increased while chickens and pigs have remained static or declined •


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3. County grain production trends were not provided, but grain trade trends that were (Table 2) suggest that surpluses of grain are declining . This may account for the static population of monogastric animals that normally utilize grain surpluses.

4. The increasing ruminant numbers suggest that coarse feed supplies are not yet a constraint and that the county can probably support additional rabbits. However , expected increase i n production is relatively high compared withmost other counties and the feed avai labili ty needs checking . ·

5. The county proposals are in general supported by the mission.

Rabbit Breeding Farm


The breeding proposals are necessary for increased production from meat rabbits and to increase meat rabbit numbers with acceptable breeds. Yi Yuan is one of the few counties to propose artificial insemnination and if effectively managed it may save the county some operational costs.

Pellet Feed Mill


Some production of compound rabbit feed will be required for the breeding farm. Meat rabbit producers will benefit from

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access to correct milling and pellet capacity. The production • of concentrate pellets for .meat -rabbits may also be possible.

Rabbit Meat Processing Plant


This proposal to add a rabbit processing line to an existing works involves a significant investment and will require more study than is evident from the county feasibility study.

Rabbit Fur Proces·s i ng Factory


This investment will also require further study. Post-slaughter skin treatment is very important to recovering adequate returns from meat rabbits and rabbit processing but

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the manufacture and selling of fashion fur apparel is quite ~ specialized and the mission suggests the county investigate the possibilities of joint venture involvement with a company having access to these skills.

Mechanical Service Centre


This proposed investment will be important for rabbit meat producers.

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Work1ng Paper 4 Attachment 11

Page 5

Total estimated investment Yl5,682,700 (Tables 3 and 4) .

(Note: These costs will need revision in unit costs timing and contingencies) •

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Goat Sheep (28.4)

Meat Rabbit

Wool Rabbi~

Geese

Chicken

Pig

OlINA

Working Paper 4 Attactnent 11 Table 1


Yi Yuan County Animal Husbandry Population Trends

1982 1983 1984 1985 1986

3.4 3.6 3.9 4.7 4.9

80(14) 32.4(14.8) 15(15.5) 20(16.1) 31.4(16.8)

171 184 193 209 220

95 103 190 .310 150

39 41 46 43 49

1.410 1.430 1.780 1.560 1.410

170 169 163 157 162

Source: County Animal Husbandry Bureau •

1987

6.7

40.9(28.4)

216

143

65

1.350

171

CHINA


Yi Yuan County Grain Trade Trends

1982 1983 1984 1985 1986 1987

In -- Out In -- Out In -- Out In -- Out In -- Out In -- Out - - -- -

< '000 tons)

Corn - 69.0 - 61.0 - 52.0 - 1 t. 0 - 10.0 - 09.0

Wheat 28.0 03.6 32.0 - 26.8 - 32.0 - 36.0 - 27.0

Sweet Potato 06.0 - - - - - -- - - 5 4.0 - 45.0

Soybean Cake 19.0 - - - 11. 0 - 09.5 13.0 07. 5 - 08.0

Sorghum

1982 1983 1984 1985 1986 1987 -- Out In -- Out In -- -- Out In -- Out In Out In Out In - -- - -- -(Yuan/kg)

Corn - 0.36 - 0.40 - 0.40 ~ 0 . 1 - 0.46 - 0.42 . Wheat 0.60 - 0. 66 - 0.68 - 0.68 - 0.70 - 0.61

Sweet Potato - - - - - 0.40 - 0. •10 - 0 . 40 - 0.32

Soybe an Cake 0.64 - 0.71 - 0.72 - 0. 72 - 0.8 2 - 0.82

Sorghum

~r £ CJ r-+ 0 CT r-+ ,

Sou rce : County Ani mal Husbandry Bu r e au. r- 0, ~ Cl) n ..., ,

';j" :::,

N 3 CC ID :::, -0 r-+ Qj

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Shondong Agricultural Development Project Table 616. YI Meng Mts. · Livestock Processing· ~!yuan County

Octnlled Cost Table (Yuan 1000)

Bose Costs ounnt I ty .....• • ....................... Unit ····· · ············ · ···········'····· · ····

•

. Unit 1989 1990 1991 1992 1993 Totol Cost 1989 1990 1991 1992 1993 Total •••• •••• • • •• aa• • n• •• •=== •:se~ 2 ::c ::::::: ======~ ·~====== :::: ==== :::::=,

I. INVESTMENT COSTS .... .. ...... A. Fecanll l

········ Civil llorks Equipment Other Costs llorkfng Copltal Henogement Expense

Sub·Totel Feedmlll e. Ab11t tofr ... ......

Civi l llork11 rriuf pnent Other C08U Work ing Cepl te l Hen11gement Expense

Sub·Totol Abattoir C. Fur Proccs9lng Fnctory . .... ... .......... .. ...

Lend Acquisition Civil Uork11 Equipment * , V~hlcl ~ W•"'-\c"""'f £Af 1-\>At Hnn119e111r.nt ExpeMC

Sub·Totel Fur Processing Factory

totft l INVESTME NT COSTS

Tot11 l

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661.5 661.5 302.3 45.5 347.8

59.0 59.0 200.0 200.0

10.0 10.0 9.5 29.5 .. . ................. t ....... ·· ··-··

312.3 776.0 209.5 · 1,297.8

756.0 756.0 1,090.0 115.0 · 1,205 .0

1,119.0 • 1,119.0 . · 1,100.0 · 1,100.0

30.0 . 40.0 29 . 7 99.7 . . . . . . . . . . . . . . . . . . . . . . . . .. .. . ......

1,120.0 2,030.0 1,129.7 · · '4,279.7

300.0 300.0 460.0 460.0

730.0 60.0 790.0 120.0 .,.,..,,. .. ~ ), 120.0 20.0 40.0 23.9 · ., M.9

. .. .. . . .. . . .. . . .. . . .. . . . . . . . . . . . . . ....... 1,170.0 560.0 ).023. 9 · ;J, 753.9 . . . . . . .. . . . .. . .. . . .. . . . .. .. .. . . . . . . .. . ......... 2,602.3 3,366.0 3 ,363 . 1 · 7,331.4 22:~=== ::::: es s:~:::s :::: :::: ======= 2,602.3 3,366.0 J ,363.1 . '7,331.4 =~:==== ::::::: ~. ::::: ==== ~=== ======~

....... ...... .. .... . . . .. . ..... .. .... .. ....... . .. . ........................ .. ........................................... .. .............. .. . . ...... Apr i l 26, 1908 14:27

• •

Parameters ............ . .... .. .......... -....... . ... -Phy. Cont . For. Gross Tax SU1TrT1ory Rete Exch. Rate Account ~==== ~===A============-===

0.05 0.3 0 0.6 0 0.6 0 0

0. 05 0. 1

0.05 0.3 0 I 0,6 0 0.6 0 0

0.05 0.1

0 0 0.05 0.3

0 0.6 0 0.6

0.05 0.1

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

BLD AGEQ AGEQ

\IC SUPV

BLO AGEO' AGEQ

\IC SUPV

LA BLO

AGEO VEH

SUPV

...... -............................... ..

•

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;:r :, ,t.,., 3 tC • • It)

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,:, ... ~ ... .., . .:,,.

•

Ch ino Shandong Agricultural Ocvelopm~nt Project

Table 615. YI Meng Mts. • Llv~stock Production· Yiyuan County Oetoflcd Cost Table

(Yuon '000)

ouant1ty Base Costs ...... .................................. ... ·· ······················· ··· ··

Unit 1989 1990 1991 1992 1993 Totol Unf t cost 1989 1990 1991 1992 1993 Total

= ===== ====== . ::::: ==== ==== =======

1, INVESTNE~T COSTS ·· ·············· A. Breeding fa rm

············· clv1 l llorka Equ1pn~nt Other co11tt vorldno cepft11 l Hanegement Coe u

Sub·rotel Breeding Ferm B. Household Prodn.

··········· ····· Clvtl Vorh llork1ng Cepftel Manogement Expense

••••

Sub·Totel Household Prodn. c. ~ervlce Centre

····· ··· ····· · Cf vll \lorh Equl~nt Train ing M11n~gement Exp~n~e

Sub•lotft l Service Cr.ntre

Tot~l INVESlMENT COS TS

lotol

•••• •••• ••aa aa%~ ~::: ====~ ====

• 1,176.8 · 1,176.8 413.2 . 413.2

280.0 . 280.0 • 100.0 100.0

4.0 34.0 15.0 15.0 .... ······· ····· .... --~- ·······

428.2 1,471.8 104.0 • 2,004.0

1,000.0 1,200.0 200.0 · 2,400.0 1,200.0 •. · 1,200.0

20.0 40.0 216.0 276.0 .... ······- ····· .... ··-· ·-·····

2,~20.0 1,240.b 416.0 · 3,876.0

193.0 193.0 116.0 11. 0 ; 127.0

11.0.0 11.0.0 l..O 5.0 2.3 11. 3

- . -- .... - . . .. . . . . . . .. .. - ....... 120.0 3f.9.0 2.3 I. 71.3

2,768.2 3,060.8 S22.3 6,351.3 :::::::: =======

2,768 .2 3,060.8 S22.3 6,351.3 ======= =====-=-- - ---- :::::::.:

Paratneters

Phy. Cont. For. Gross Tax Surrrnary Rate Exch. Rate Account

:::3:

0.05 0.3 0 0.7

0.05 0 0 0

0.05 0. 1

0.05 0.3 0 0

0.05 0.1

o.os 0.3 0 0.7

o.os 0.2 o.os 0.1

======== .

cl 0 0 0 0

0 . o

0

0 0 0 0

=======

BLO EQ

BRO \JC

SUPV

BLO WC

SUPV

BLD EO

TRG SUPV

..... .... .......... . ........... ......... .... ... ...... . ........................... . ................... ~...................... . ............... ... ....... . \prl l 26, 1988 14:27

• • • • • • • • • •

-i r·j. £ a, .rt 0 CT rt -, ,- a, -:,,:(1) 0 -'• . ·,r :, ~ 3 ID

~ - "U M' a, : u ... (1) ... . -, ~

• • "j

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CHINA




Page 1

Ping Yi County Meat Chicken Development Project Plan

Introduction

Pi ng Yi County is located in the Yi Meng Mountain Region. The meat ch i cken development project is t he only component being proposed by this county . The county 1 s resources and proposals are described in a feasibility study. A translated summary together with mission comments follows :

I. Project Content

1.

2.

Chicken Stock Breeding Farm

The project plan calls for ra1s1ng 24,000 stock chickens, of wh ich 21,000 will be females. This farm will supply 2.8 million chickens per year to the project demonstration farm, the meat chicken ~reduction base households and directly to the market.

Meat Chicken Demonstration Farm

This farm wil l supply 100,000 chickens to market each year. The chickens will be supplied five times per year , with 20,000 chickens per period.

3. Pel let Feed Mill -

4 •

5.

Planned annual production capacity is 16,000 tons of pellet feed.

Meat Chicken Processing Plant

The planned annual process i ng capacity is 2.4 million chickens , producing 2,030 tons of mix cut chicken meat.

Meat Chicken Production Base

1,150 households will be selected to participate in chicken r aising activities. Each household will supply 2,000 chickens to market per year. The supply will be divided into 4 periods ; 500 chickens during each period. 2. 3 million chickens will be supplied annually from this base.

6. Consulting Centre

This centre will be located in the County Animal Husbandry Veterinary Station. Under the project some increase in staff and equipment is planned •

II. Environmental Protection


Page 2

•

• The project calls for the construction of water treatment facilities in order to treat the waste water from various project facilities . Water will be treated according to national standards. In addition, the feed mill will practice dust and dirt control measures through using air tight equipment and ventilation fac i lities. ~

III. Project Management and Staffing

The Ping Yi County Animal Husbandry United Commercial Company wi l l manage and coordinate project activities. Staff i ng details are shown • below:

Project Staffing

Sub-Project Party and Administrative

Personnel


Production Personne l

Chicken Style Br eeding Farm 16 11 Meat Chicken Demonstration Farm 10 8 Pel l et Feed Mill 12 20 Meat Processing Pl ant 36 31 Consulti ng Centre 15 Feed Monitoring 10 Project Management 10 25

Total 84 120

IV. Project Training

A detailed project training plan was not given in the county feasib i l i ty study. However, training costs of Y200,000 were included in the budget for their consulting centre and feed monitoring operation.

V. Missions Findings and Comments

123 14 38

253

428

1. Pi Ying county was vi sited by the mission l i vestock specialist and the proposals discussed with county offic i als. Some good farmer interviews were held with specialised chi cken egg

To~

63

•

•

producers interested in undertaking broiler production. ~

2. Livestock population trend figures provided to the mission in the field (Table 1) indicate that in aggregate livestock populations have increased signifi cant ly over the last seven years i n almost al l descriptions except hair rabbits. Pig numbers have remained somewhat static. ~

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3. Grain production trend figures were not provided but grain trade figures that were (Table 2) suggest that supplies are increasing in most areas, although evidently another use for corn in the county was found in 1986. (Perhaps it was used in egg production through the county feedmill). •

4. This data supports the county's proposal to invest in chicken productionl. The success or failure of the enterprise will thus revolve around management and markets.

5. The county's proposals are fairly detailed and in general supported by the mission •

Chick Stock Breeding Farm

Estimated investment YS,899,700

A chicken breeding farm will be important in providing appropriate breeds of chicken for the new broiler chicken producers. The breeding strategies, however, may not be the most advantageous. A discussion on hybrid broiler breeding strategies is set out in- Annex C. The mission recommends the county reconsider the operational plans for the farm .

- Meat Chicken Demonstration Farm


This investment may provide the county livestock commercial enterprise company with good income if the marketing aspects are planned and managed appropriately (see below) . Its use as a demonstration unit for speicalised households is also beneficial.

- Pellet Feed Mill ·

Estimated investment YS , 016 , 300

The broiler chicken producers will require a re li able supply of accurately and approrpaitely formulated pellet feed. The county apparently has adequate raw material for a mill so this investment i s probably appropriate.

- Meat Chicken Processing Plant

Estimated investment Y4 ,6ll,500

This investment may be appropriate to ensure broiler production can be marketed adequately but the method of final packaging a,d the marketing chains in not described sufficiently. A discussion on poultry processing and marketing is set out in Annex C. The mission recommends the county investigate the local urban market for fresh or chilled chicken and the prospects for providing special stal ls to pressent and sell the processing · plant production to its best advantage. If this is insufficient then the marketing chain from processing plant to producer needs to be described . The investment in processing would be at risk if the local market for chicken was such as to encourage


Page 4

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producers (or free market operators) to by-pass the works . This needs study. •

- Meat Chicken Production Base

Estimated investment (not shown)

It is not clear from the county ' s proposal i f any part icular assistance to the specialised broiler producers is intended apart from the technical service centre or the improved market provided by the processing works. If there is an intention to provide credit then this will require description.



This investment wil l be investment. Of particu l ar accurate feed analysis service

important importance

service and

to the county's other is an impartial and ration recommendation

Estimated total i nvestment Yl7, 120,900 (Tables 3 and 4).

(Note: These costs will require revis ion).

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• Working PaEer 4 Attachment 12 Table 1

• CHI NA


• Ping Yi County Animal Livestock PoQulation T.rends

. (' 000 head)

• 1982 1983 1984 1985 1986 1987

• Cattle 26.0 26.2 26.0 28.6 29.9 33.4

Goat 143.6 124.8 107 .4 92.9 95.0 1,150.0

Meat Rabbit ·. 120.0 256.0 260.0

• Wool Rabbit 269.1 200.0 180.0

Geese 185.0 219.1 100.0 150.0 200.0

Chicken 986.3 .1,168.4 2,200.0 2,000.0 2,620.0

1• Pig 270.2 275.5 281.0 372.1 260.0 290.0

• Source: County Animal Husbandry Bµreau .

•

CHINA


Ping Yi County Grain Trade Trends

1982 1983 1984 1985 1986 1987 In -- Out In -- Out In -- Out In -- Ou t In -- Out In -- Out - - -- -

( '000 tons)

Corn - 3,300 - 26,400 - 8, 100 3,700 2.000 6,500 t50 150 250

Wheat 550 650 7,000 4,400 2,950 50 2,350 3. 150 !'>00 2.750 2.750 650

Sweet Potato - 29,000 - 72,000 - 76,000 - - 79.000 - 79.000 74.000

Soybean 2,870 - 2.900 - 2.600 - 3,000 3.200 - 3.050 3.050

Sorghum - 3.400 - 3,350 - 3,400 - - 5.100 - - 4.300

Other

1982 1983 1984 1985 198G 1987 In -- Out In -- Out In -- Out -- -- --In Out In Out 111 Out - -- ~ - - -

< • 000 tons>

Corn - 0.40 - O.G4 - 0.43 0.50 O. ·I ;., 0 . ·18 0.38 0 .3 6 0.42

Wheat 0.51 0.51 0.50 O.SG 0.48 o.55 0.59 o.:;7 0. ,;1 0. 64 O. G·1 0.70

' Sweet Potato - 0. 19 - 0.24 - 0.30 0.35 - 0.18 - 0. 10

Soybean 0.50 - 0.51 - 0.60 - - n. ;;, - 0.90 0.90 _. ):> ~

Sorghum - 0.12 - l• .16 - 0.45 0.51 - O. '.iO - - 0.44 Ill rt 0 CT rt -, ,- Ill 7"

Other - - - - - - - - - - - - (1) 0 -'• :::T ::,

N 3 c.o (1) ::, -0 rt QJ

-0 _. (1) N -,

.t'-Sour ce: Cou 11t y Animal Husba ndry Bureau.

_. --~ • • • • • I • • • • • •

• ; • • • • • • ·•


Table 611. Yi Meng Hts. · Livestock Production --Pingyi County Detailed Cost Table

(Yuan 1 000)

Base Costs

•

Quantity ----------------- --------- ---- ---------------------------------------

Unit 1989 1990 1991 1992 1993 Total Unit Cost 1989 1990 1991 1992 1993 Total ======= =====-- ---== ==-- ---- -------

I. INVESTMENT COSTS -----·----------A. Chicken Demo. Farm

--··-- --·--- -- ----Land Acquisition Civil \.lorks (2850 m2) Equipment Vehicles \.lorking Capital

Sub-Total Chicken Demo. Farm B. Breeding Chicken Farm

- ------ -- -- - -- .. --- ·--Land Acquisition Civil \.lorks (16,950 m2) Equipment Other Costs Vehicles Stock Purchase \.lorking Capital

Ha

Ha

Sub-Total Breeding Chicken Farm C. Technical Support

Equ pment Veh cles Tra ning

Sub-Total Technical Support


Total

---- ---- ---- ==== ==== ===r= rr~------

2.7 2.7 120

10 10 120.01

320.4 320.4 168.8 241.2 410.0 40.0 23.0 63.0

100.0 100.0 · 100.0 100.0 - ----- ---- ---- -------

629.2 264.2 100.0 993.4

1,200.0 · 1,200.0 726.3 2,832.7 · 3 ,559.0 496.2 109.5 605.7

43.0 43.0 100.0 100.0

132.0 132.0 · 260.0 260 .0

----- ---- ---- -------2,522.5 3,117.2 260.0 · 5,899.7

100.0 100.0 300.0 300.0 100.0 100.0 200.0 ----- ------- ----- ---- --- - -------500.0 100.0 600 .0

------- ------- ------ ---- ---- ======= 3,651.7 3,481.4 360.0 · 7,493.1

3,651.7 3,481.4 360.0 · 7,493.1 ======= ======= ====- ---- ====

---------- ---·--- --- --· ·-- --------- ----- --- ---------------------·····----------------··---- --- --- --June 9, 1988 10:07

• •

...... )>, ~ QI <T 0 O' <T ., ,- QI :,:: II) n .....

;:r ::, L,,I 3 (0

II) ::, "'O <T QJ

u ..... ri, N .,

"""'

China Shandong Agricul tural Development Project

Table 612. Yi Meng Mts. · Livestock Processing· Pingyi County Detailed Cost Table

' <Yuan '000)

Quantity ..... ... ... . Base Costs -- . -..... -- .... --....... ---- ... -.. -... - ... ---........... --

Unit 1989 1990 1991 1992 1993 Total Unit Cos t 1989 1990 1991 1992 1993 Total ::::

I, INVESTMENT COSTS · ·· ·· ·· ····· ···· A. Chicken Abattoi r

····· ····· ··· ··· Land Acquis it ion Ha Civi l Works (6270 m2) Equipment Vehicles Working Capfta l

Sub-Total Chicken Abattoir e. Pel let Feednlll

Land Acquisit ion Civi l Works (1 4570 m2 )

· Equipment Vehicles Worki ng Capital

Ha

s ::: ::: : ==== :::: ==== =====

2. 7 2.7 120 . 1

3 3 120. 1

======= ======= ======= =--- ---- -------

320.4 512 . 4 1,132. 7

1,129.0 217.0 300.0 \C\Ot> .

-100-:-0 -. .. .. . -... ---2,261.8 1,349.7 100.0

360.0 496.6 1,279.7

1,524.0 256.0 10.P .o

1,000.0 -·----- -------

320.4 1,645.1 1,346.0

300.0 •.sc ,~100. o· - ... - ........ • 3;711.5 · t.) ·!'.·5

360.0 1,776.3 1,780.0

100.0 1,000.0

~ ,nn L 'c35,7 1,000.0 ........ -----Sub·Totol Pel let Feedmill .::,~ou.o ,,;;,:- c: nH. l.

L 7L? L ? nos.~ 1,100 .0 Total INVESTMENT COSTS •,'"'·· ,, v,· A 1 ,1 R ------- ------- ------- ----Total 4,742.4 2,885.4 1,100. 0

------- ------- ------- ----· 8, 727.8

..... ... --· .... .. .................................... ----·· ---·- ....... --- .... . - ..... -- - .. - - .. -..... - .. - ......... - .. -- ... - ---· - -- - .......... - . .. . ---- ---- - - - .. ---- -- -

April 26, 1988 14:26

•• • • • • • • •

Parameters

Phy. Cont. For. Gross Tax Surmary Rate Exch. Rate Account

===== ========= =====-=

0 0 0.05 0 .3

0 0.6 0 0.6 0 0

0 0 .0.05 0.3

0 0.6 0 0.6 0 ' 0

•

0 0 0 0 0

0 0 0 0 0

•

LA BLD

AGEQ YEH WC

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AGEQ YEH

WC

... )> C (II l"-t 0 er l"-t , ,- QJ .,..;' It) n ..., , ~ :J

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CHINA




Page 1

Yi Shui County Animal Husbandry Development Project

Introduction

Yi Shui County is located in the Yi Meng Mountai n Region~ Animal Husbandry Development is the only project component proposed for this county. The resources and county investment proposals are decribed i n a feasibility study. A translated summary of the proposals together with mission comments follow:

I. Project Content

1. Rabbit Hair Spinni ng Factory I

The project calls for expanding and comp leting a spinning plant already under construction. Construction of the origi nal plant began in 1985 and already 3,600 m2 of t he factory building has been built and another 3,500 m2 of supplementary buildings. A new facility of 2,000 m2 will be built under the pro~ect. Annual planned . -product i on of rabbit hair yarn is 400 tons after expansion •


The plan calls for expanding the existing county meat process ing plant. The expanded facility will have an annual process ing capacity of 3 mil lion rabbits. Annual pl anned production of the

• new process i ng line is 3,000 tons of frozen rabbit meat. A new facility of 2,500 m2 will be built to house the processing l ine . Supplementary buildings of 3,000 m2 total will also be built . The plant has (or wi l l have) a 500 ton cold storage capacity .

•

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3. Feed Mi ll

4.

The plan invo lves expanding the existing county feed mill facility . The old facility was built in 1982. A new workshop will be 500 m2. Other supplementary faciliti es will be 800 m2 . The planned production breakdown i s as follows: 300 tons compound feed, 1,000 tons pre-mix and 1,000 tons pel let feed .

Rabbit Stock Breeding Farms

One county and one townsh ip farm wil l be established under the project . The county farm will have 300 imported rabbits and supply 4,860 breed stock rabbits per year to the township farm, or directly to breeding specialized households. The township farm will have 1,500 imported rabbits and supply 51,700 improved breed rabbits to rabbit breeding specialized households and meat or hair rabbit raising specialized households. There are 3,000 rabbit breeding specialized households in the county . Each of these households will have 45 female and 5 male breeding rabb i ts . They

5.

------ - ---- - -------------........ -~---


Page 2

will produce 300 rabbits for market per year, 39,000 households

•

will become meat or hair rabbit raising specialized households • under the project. Some of these households are low income households which have been targetted for economic development. The combined supply of market rabbits from the 3,000 breeding and 39,000 ra1s1ng. specialized households is planned to reach 2.34 million rabbits per year. Altogether 5.34 market rabbits are produced in the county each year. ~

(Note: The descr i pt ion of this project component was slightly unclear in the report. Therefore some misunderstanding of the planned system may have occurred here).

Technical Service Centre • The Centre will provide technical guidance, consulti~g feed analysi~, and disease treatment and protection services . The Centre will be located in the existing County Animal Husbandry Veterinary Technical Extension Centre. Under the project some new staff and equipment will be added to the existing Centre. •

II. Planned Environmental Protection Measures

1. Feed Mill:

2.

Air tight packaging and transport containers will be used for feedstuffs. In addition, ventilation systems will be installed. Sewage and was~e water will be drained into the county sewage 1 i ne.

Rabbit Stock Breeding Farms:

Waste water will be biologically treated, then used on agricultural fields. Sewage and rain run-off will be drained into underground sewage channels.

•

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3. Meat Processing Plant: •

4.

The 500 ton cold storage facility produces 800 tons of waste water per day. This water wil l be biologically treated at the plant's waste water facility • A 11 <;:ombustion efflix 11 method wil l be used for treatment. After water is treated it is drained into a cl ean water disposa l facility. Water is treated t o reach government • industrial standards.

Boiler instal l ation wi l l include dust control equipment. Government GBJ 4-73 standards wil l be met.

Waste products from slaughtering wil l be biologically treated, • then used on agricultural fields.

Sewage: rain water run-off will be drained into sewage channel s.

Rabbit Hair Spinning Factory:

Waste water from washing and wool dying will be treated in two separate ways in order to reach government water treatment standards. The treatment i s different because the quality of each type of water differs. These differences are listed below.

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(i) Quality of water used for washing:

8005 COOcr Floati ng matter Surface bacteria

. (ii) Quality of water used in dyeing:

8005 CODcr Floating matter pH

Treatment Process:

mg/litre

2,000-3,000 4,000-6,000 1,000-3,000

7-10

mg/litre

150-200 200-400 100-200

5-7

(i) Water used for cleaning - 3 methods of disposal and treatment will be used: 2 using oxygenation and one biological .

(ii) Water used for dyeing - biological and chemical treatment methods will be used.

III. Project Management and Staffing

Management of each of the project components will be under the Yi Shui Cou·~ty Animal Husbandry Integrated Development Company.

Rabbit Breeding Farms Technical Service Centre Feed Mi 11 Meat Processing Plant Rabbit Hair Plant

Total

IV. Project Training



22 68

4 30 30

650

No. of Workers

44 54 8

170 220

154

Total

66 122

12 200 250

496

The workers from the existing meat processing plant and feed mill have had extensive production experience. They will train new workers hired. In addition, some of the technicians at the proposed spinning factory will be trained at the county wool and yarn factory. Some key technicians will be sent to other factories within China to observe their methods and be trained. The Technical Service Centre will conduct periodical training


Page 4

classes in rabbit breeding methods for the members of the specialized

•

households engaged in this activity. This will be combined with • demonstration work.


1. The county was not visited by the mission. A briefing was received but county proposals were not discussed with county officials. •

2. Livestock population trend figures that were provided in the field (Table 1) indicate that livestock numbers · have on aggregate increased slightly over the last seven years. Ruminant goats particularly have increased; meat rabbits somewhat, whi le monogastrics geese, chickens and pigs, have remained static or • declined; pig numbers have declined significantly.

3. Grain production trends were not provided but grain trade figures that were (Table 2) suggest that grain supplies are not increasing. Although supplies and production of sweet potato, soybean and sorghum are increasing. This is in line with the movement of livestock numbers and suggests that feed for rabbits, sweet potato leaf, soybean hay and cake will be available for the planned increase in rabbit numbers.

4. As the proposals have not been discussed~ the following comments are based on extrapolation from nearby counties and general comments on the type of production.

5. Comments on specific proposals

- Rabbit Hair Spinning Factory


•

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• Rabbit hair spinning is fairly technically demanding and good training is required for success. A discussion on rabbit hair processing and marketing appears in Annex A and the mission • suggests a measurement of thls proposal after an examination of potential markets.

- Meat Processing Plant

Estimated investment YS,462,000 e This investment depends on increased production from the farmers participation in the project. They are not being provided with specific incentives to participate (apart from this improved market and some technical services) and the mission recommends some more analysis of raw material input and • market prospect prior to appraisal.

Feed Mill


This is ·a relatively small investment and is likely to be justified upon the supply of feed to the breeding farm and the contract milling services to farmers. Discussion wi l l be needed during pre-appraisal.

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- Rabbit Stock Breeding Farms


Working Paper 4 · -Attachment 13

Page 5

The general breeding strategy discussed in this proposal are generally in line with accepted practice and so long as there are sufficient farmers to take up the production, the facilities wi ll be justified.

- Technical Services Centre

Estimated investment Y453,SOO

This proposal is likely to be justified to supply services for meat and hair rabbit producers.

Estimated total investment Yl7,491 (Tab les 3 and 4)

(Note: These costs will require revision and discussion during pre-appraisal). ·

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• Working PaE!er 4 Attachment 13 Table 1

• CHINA


• Yi Shui County Animal Husbandry Production Trends

('000 head)

• 1982 1983 1984 1985 1986 1987

• Cattle 17 16.5 16.5 17 19.2 20.2

Goat 25 25 26.9 27.6 37.4 61.6

Meat Rabbit 186 177 168 186.7 202 256:5

• Wool Rabbit 400 450 500 514 417 400

Geese 300 300 320 336 470 353

Chickens 1,380 1,390 1,400 1,412 1,313 1,528

• Pigs 460 470 450 435 385 296

• Source: County Animal Husbandry Bureau •

•

CHINA


Yi Shui County Grain Trade Trends

1982 1983 1984 1985 1986 1987 In Out In,-- Out In -- Out In -- Out -- --In Out In Out -- - -- -

('000 tons)

Corn - 20.0 - 19.5 - 21. 0 - 29.0 - 26.0 - 24 .o

Wheat 35.0 - 28.0 - 27.5 - 26.8 - 21.0 - 26.0

Sweet Potato - 56.5 - 78.0 - 3.3 - 110.0 - 115.0 - 98.0

Soybean Cake 0.62 - 0.55 - 7.2 - 0.85 - 0.57 - I . 0

Sorghum 3.2 - 0.41 - 5. 1 - 0. 49' - O.J8 - 0.6

OLher s

1982 1983 1984 1985 1986 1987

In -- Out In -- Out In -- Out In -- Out In -- Out In -- Out - -- - - - - --

<Yuan /kg)

Corn - 0.32 - o. J2 - 0.36 - J. 8 - 0. ,io - 0. J9

lihPa t 0.48 - 0. 48 - 0.50 - (l. 5 1 - 0.52 - .0.52 -I ~ ~

Sweet Potato - 0.30 - 0. 31 - 0.33 - J.6 - 0.)i - 0.36 QI rt 0 CT rt ., ,- QI '7(:"

Soybean Cake 0. 64 - 0.62 - 0.63 - 0.65 - 0.66 O. l> - (1) n -'• ::T ::,

N 3 (.Q

Sorghum 0.28 - 0.29 -. 0.2 7 - 0.31 - o. J2 - Cl. :n - (1) ::, -0 rt QI

Others - - - - - - - - - , ...... u (1)

vi ., ~

- . So11rc<': Count~· Ant/"'" I llus ba ncl r ~· Flu r <',HI.

• • • • • • . •· • • • • •

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CHINA SHANDONG AGRICULTURAL DEVE~OPMENT PROJECT

Table 603 . YI Heng Hts. · Livestock Production · Ylshul County Detailed Cost Tabl~

(Yuan 1 000)

Quantity Base Costs •...•......... . ............•....... Unit .......... . ......................•.

Unit 1989 1990 1991 1992 1993 Total Cost 1989 1990 1991 1992 1993 Total ::::z 2:::• c:::: =~=z •=== 2:sa:za

I. INVESTMENT COSTS ··-············· A. Hair Rabbit Breeding

---·······--·-··· ·-· Lend Acquisition County Buildings (995 m2) Township Bui ldings (386 m2) Equipment Vehicles

====

Breeding Rabbits Head

Sub-Total Hair Rabbit Breeding B. Tech/Vet. Service Centre

------------------------Lend Acquisition Buildings (1920' m2) Equipment Vehicles

Sub-Total Tech/Vet. Service Centre


Total

==== ==== ====~=: ==== ==== . ======

3,300 . .. . 3,300

.

100.0 100.0 63.8 75.5 139.3 17.4 33.4 50.8 65 .0 65.0

146.0 146.0 o. 17 · 539 .9 539.9

.... , ···-- -· ··· .... -··- ······ · 392.2 108.9 539.9 · 1,041.0

79 .9 79.9 76 .4 179.6 256.0 70.6 2.0 72.6 45.0 45.0

···-· --·-- ..... ··-- ... . -- ·· ··· 271. 9 181.6 453 .5 ..... ---·-664.1 290.5 539.9 1,494.5 :::a: :::s2 a:::z :::c =•== z:caaaa

664.1 290.5 539.9 · 1,494.5 ----- -c:-- =---- --~- ---c ==•===•

--- --------------------- ----------------------- ------·-····------ ---------·························· ····· ······· ··· ··· :•ny 9, 1988 14:18

• •

..... )> ~ QI t'T 0 0- t'T ., r- QJ 7("

lb n -'• :::r :::,

vi 3 lO (ti :::, "O t'T QI

"C _.. (ti

vi .,

.c,-

•

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l. INVESTMENT COSTS ·········-·--··· A. Rabbit Hair Factory

Land Acquisition Factory Buildings Other Bui ldlngs Equipment Vehicles

Unit ••••

H2 H2 H2

Sub-Total Rabbit Hair Factory 8. Rabbit Abattoir

Land Acquisition Buildings (11,500 m2) Equipment

Sub-Total Rabbit Abattoir C. Feecinfl l .........

Buildings (2306 m2) Equipment Vehicles

Sub-Total Feecinll l


Total


Table 604. YI Meng Hts, - Livestock Processing · Yishui County Detailed Cost Table

(Yuan 1 000)

Quantity Bose Costs -------------------···-·---------------- Unit

Cost 1989 1990 1991 1992 1993 Total 1989 1990 1991 1992 1993 Total ••:11111••• ••a•••• •••• •••.• •••• •••••••• a:usa •••••••••••a•••••••••••••••••••••••

13,320 3,000 2,500

13,320 0.02 159.9 159.9 3,000 0.24 690.0 690.0 2,500 0.14 340.0 340.0

8,501.7 • 8,501.7 6~.o 63.o

·······- ------- ---- ---- ---- ----···· 8,724.5 1,030.0 • 9,754.5

500.0 500.0 866.0 2,292.0 · 3, 158.0

-. 1,604.0 200.0 - 1,804.0 -------- ·····-- ---- ---- ---- -------· 2,970.0 2,492.0 - 5,462.0

84.0 256.0 375.0 65.0

524.0 ' 256.0

12,218.5 3,778.0

340.0 375.0 65.0

780 .0

- 15,996.5 :::::~:= a:c:a:: ==== ::2: a::c •~•~a~z•

12,218.5 3,778.0 · 15,996.5 ======== ======= ==== ==== . ::; =-------

--------------------------------------------·-······-----------------------···········································--·· May 9, 1988 14:18

• •• • • • • •

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::r ::, ,I:'- 3 <O

Cl) ::, " r+ QI

u __. Cl)

vJ -,

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