Document of

The World Bank

FOR OFFICIAL USE ONLY

CX 0. O97- C: 4A

Repert No. 7664-CIA

STAFF APPRAISAL REPORT

CHINA

JJANGXI AGRICULTURAL DEVELOPMENT PROJECT

MAY 19, 1989

Agriculture Operations DivisionCountry Department IIIAsia Regional Office

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CR2 RENY RUIVALEI

Currency Unit - Yuan (Y)US$1.00 - Y 3.71

Y 1.00 - US$0.27(As of Nay, 1989)

FISCAL YEAR

January 1 to December 31

WEIGHTS AND NEASURES

1 meter (i) - 3.28 feet (ft)1 kilometer (km) - 0.62 miles1 hectare (ha) - 2.47 acres1mu - 0.067 ha1 ton (t) - 1,000 kg

- 2,205 pounds1 kg - 2.2 pounds

ABBREVIATIONS AND ACRONYMS

ABC - Agricultural Bank of ChinaADC - Agricultural Development CorporationAI - Artificial InseminationBFO - Bureau of ForestryBOF - Bureau of FinanceCEROILS - China National Cereals, Oils and Foodstuffs Import and

Export CorporationCMIEC - China National Machinery Import and Export CorporationEPB - Environmental Protection BureauERR - Economic Rate of ReturnFRR - Financial Rate of ReturnFTB - Foreign Trade BureauFTC - Foreign Trade CorporationGVAO - Gross Value of Agricultural. OutputICB - International Competitive BiddingILS - International and Local ShoppingJADC - Jiangxi Agricultural Development CorporationLCB - Local Competitive BiddingMFO - Ministry of ForestryMOA - Ministry of AgricultureMOC - Ministry of CommerceMOF - Ministry of FinanceMOFERT - Ministry of Foreign Economic Relations and'. TradePCC - Provincial Coordinating CommitteePCR - Project Completion ReportPO - Project OfficeSAIC - State Administration of Industry and CommerceSFF - State Forest FarmSH - Specialized HouseholdSMC - Supply and Marketing CooperativeSOE - Statement of ExpenditureSPC - State Planning Commission

FOR OFFICIAL US ONLY

CHINA

JIANGXI AGRICULTURAL DEVELOPMENT PROJECT

Credit and Proiect Suarv

Borrover: People's Republic of China

Beneficiary: Jiangxi Provincial Government

Amount: SDR 46.2 million (US$60 million equivalent)

Terms: Standard, with 35 years maturity.

RelendingTerms: From Central Government to Jiangxi Province: 15 years, including 5

years grace, with interest at 5.3% p.a. The Province would bearthe full foreign exchange risk. End users would pay interest atthe Agricultural Bank of China's prevailing rates for similarloans for similar purposes.

ProjectObjectives andDescription: The proposed project would assist the Jiangxi Provincial

Government to accelerate and diversify agricultural development.It would improve the productivity and incomes of participatingfarmers and strengthen supporting services at the provincial,prefectural, municipal and county lev3ls, thereby moving farmoperations from a subsistence level to commercial orientation. Itwould ,.lso utilize lands which are unproductive or unsuitable forgrains and other crops. It would support a livestock developmentprogram featuring pigs and poultry on hilly lands unsuitable forgrain cultivation, develop and intensify freshwater fish culturein low-lying areas and in lakes and ponds, rehabilicatelow-yielding tea plantations and establish new commercial forestplantations. The project would also establish agroprocessingfacilities to increase the value-added of project output, toprovide feed for project livestock, and to demonstrate theorganization, management and financing of such facilities.

Benefits andRisks: At full development, annual incremental production would amount to

about 12 million ducks and geese, 26,000 t of eggs, 300,000 pigs,19,000 t of fish, 2 t of pearls and 5,300 t of tea. Over the20-year project life, the forestry component would produce some59,000 m3 of pulpwood, 579,000 m3 of logs and poles, and 88,000 tof resin. The value of annual incremental output would be aboutUS$128 million annually. The project would increase incomes forsome 18,650 farm families, create about 8,285 permanent jobs andprovide annual employment of casual labor equivalent to about 540man years. Ecological benefits, in the form of soil and waterconservation, would be gained from the afforestation schemes andtea rehabilitation. No unusual technical, financial ororganizational risks are anticipated; to minimize any riskassociated with availability of livestock feed, an agreement wouldbe reached that the provincial government would make availablefunds to procure raw materials domestically or abroad.

This document has a restricted distribution and may be used by recipients only in the performance |of their official duties. Its contents may not otherwise be di-closed without World Bank authorization.

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Estimated Costs: Local Foreign Total------------------($ mln)----------------

LivestockFig production 6.2 1.7 7.9Poultry production 6.7 0.8 7.5

Aquaculture 13.4 1.0 14.4Forestry 3.8 1.2 5.0Tea Improvement 9.2 2 6 11.8ProcessingFeedhills 4.0 7.8 11.8Pork processing 0.5 0.1 0.6Poultry processing 4.8 3.8 8.6Tea processing 6.3 1.8 8.1Rosin production 0.8 0.2 1.0

Research, Training and TA 4.0 1.0 5.0Incremental Working Capital 16.6 6.1 22.7

Base Cost 76.3 28.1 104.4Physical Contingency 5.5 1.8 7.3Price Contingency 7.3 2.7 10.0

Total Project Cost 89.1 32.6 121.7

Financing Plan:

IDA 27.4 32.6 60.0Provincial government 9.0 9.0Municipal andprefectural governments 10.4 10.4

End-user contributions 17.6 17.6Domestic loans 24.7 24.7

Total 89.1 32.6 121.7

Estimated Disbursements:

Bank/IDA FY 1990 1991 1992 1993 1994 1995

Annual 5.0 16.0 22.0 9.0 7.0 1.0Cumulative 5.0 21.0 43.0 52.0 59.0 60.0

Economic Rate nf Return: 39%--.. ... ...............

CHIN

JIANGXI AGRICULTURAL DEVELOPMENT PROJECT

Table of ContentsPage

I. BACKGROUND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

A. Introduction .1B. The Agricultural Sector ..C. Sectoral Objectives and Bank Lending . . . . . . . . . . . . . 4D. Agriculture in Jiangxi .. 6E. Project Formulation and Rationale . . . . . . . . . . . . . . . 7

II. THE PROJECT AREAS .8

A. Location .8B. Climate .8C. Topography and Soils .8D. Population and Land Use . . .

E. Power and Transport. . . . . . . . . . . . . . . . . . . . . . .10F. Research and Extension . . . . . . . . . . . . . . . . . . . . .11G. Livestock Support Services . . . . . . . . . . . . . . . . . . .12H. Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

III. THE PROJECT . . . . . . . . . . . . . . . . . . . . . . . . . . .14

A. Project Objectives and Relation to Sector . . . . . . . . . . .14B. Project Description . . . . . . . . . . . . . . . . . . . . . .14C. Detailed Features. . . . . . . . . . . . . . . . . . . . . . . .15D. Status of Project Preparation . . . . . . . . . . . . . . . . .22E. ImplementaLion Schedule . . . . . . . . . . . . . . . . . . . .22F. Cost Estimates . . . . . . . . . . . . . . . . . . . . . . . . .22G. Financing . . . . . . . . . . . . . . . . . . . . . . . . . . .23H. Procurement . . . . . . . . . . . . . . . . . . . . . . . . . .23I. Disbursements . . . . . . . . . . . . . . . . . . . . . . . . .26J. Accounts and Audits . . . . . . . . . . . . . . . . . . . . . .26K. Environmental Impact . . . . . . . . . . . . . . . . . . . . . .27

IV. ORGANIZATION AND MANAGEMENT . . . . . . . . . . . . . . . . . . . .28

A. Project Organization . . . . . . . . . . . . . . . . . . . . . .28B. Project Coordinating Committees and Project Offices . . . . . .28C. Agricultural Development Corporations . . . . . . . . . . 29D. Financial Management . . . . . . . . . . . . . . . . . . . .30E. Execution of Project Works . . . . . . . . . . . . . . . . . . .31F. Management of Production . . . . . . . . . . . . . . . . . . . .31G. Monitoring, Evaluation and Reporting . . . . . . . . . . . . . .32

This report is based on the findings of a preappraisal mission to China inOctober 1988 and an appraisal mission in January 1989. Members of thepreappraisal mission were N. Hill, P. Harrell, W. Price, C. Rees(Bank/IDA), M. Pedini, T. Lohavisavapanich (FAO/CP), C. Benigough, C.L.Cheong, J. Hald, W. Roeland, and T.C. Tso (Consultants). The appraisalmission comprised N. Hill, P. Harrell (Bank/IDA), M. Pedini, T.Lohavisavapanich (FAO/CP), J. Hald, and W. Roeland (Consultants).

V. PRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . .33

A. Livestock . . . . . . . . . . . . . . . . . . . . . . . . . . .33B. Aquaculture . . . . . . . . . . . . . . . . . . . . . . . . . .36C. Forestry . . . . . . . . . . . . . . . . . . . . . . . . . . . .37D. Tea . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38

VI. MARKETS AND PRICES . . . . . . . . . . . . . . . . . . . . . . . . .38

A. Market Prospects . . . . . . . . . . . . . . . . . . . . . . . .38B. Prices . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41C. Marketing Channels . . . . . . . . . . . . . . . . . . . . . . .43

VII.BENEFITS, JUSTIFICATION, AND RISKS . . . . . . . . . . . . . . . .45

A. Production and Benefits . . . . . . . . . . . . . . . . . . . .45B. Employment . . . . . . . . . . . . . . . . . . . . . . . . . . .45C. Financial Analysis . . . . . . . . . . . . . . . . . . . . . . .45D. Incomes . . . . . . . . . . . . . . . . . . . . . . . . . . . .47E. Economic Analyses . . . . . . . . . . . . . . . . . . . . . . .47F. Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48

VIII. AGREEMENTS REACHED AND RECOMMENDATION . . . . . . . . . . . . . .49

TABLES IN THE TEXT

3.1 Project Cost Summary . . . . . . . . . . . . .3.2 Procurement Profile . . . . . . . . . . . . . .5.1 Incremental Production . . . . . . . . . . . .7.1 Financial Rates of Return . . . . . . . . . . .7.2 Economic Rates of Return and Sensitivity . . .

ANNEXES

1. BackgroundProject Area Statistics (Tables 1 - 3)Project Feed Requirements (Tables 4-8)Distribution of Project Works (Table 9)

2. Cost DataCost Summaries and Expenditure Schedule (Tables 1 - 5)Working Capital Requirements (Teble 6)Disbursement Schedule (Table 7)

3. Training and Technical Assistance4. Financial and Economic Analyses

Financial Analysis - 4 sows and 60 fattening pigs (Table 1)Financial Prices of Inputs (Table 2)Financial Prices of Outputs (Table 3)Financial Results (Table 4)Fish Production Households - Annual Net Income (Table 5)Selected Conversion Factors (Table 6)Economic Prices of Inputs (Table 7)Economic Prices of Outputs (Table 8)Feed Financial and Economic Price Structure (Table 9)Economic Price Derivation (Table 10)Economic Analysis - 4 sows and 60 fattening pigs (Table 11)Economic Analysis - Whole Project (Table 12)

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5. Operating Guidelines for JADC6. Trade and Prices

National Annual Net Trade in Principal Project Outputs (Table 1)Jiangxi Annual Net Trade in Selected Project Outputs (Table 2)Procurement and Retail Prices for Selected Project Outputs (Table 3)

7. Key Monitoring IndicatorsLivestock (Table 1)Aquaculture (Table 2)Tea end Forestry (Table 3)

8. ProcurementList of Equipment (Table 1)List of Materials (Table 2)List of Vehicles (Table 3)

9. Selected Documents and Data Available in the Project File

LIST OF FIGURES

A. Implementation Schedule2. Organization Chart3. Flow of IDA Funds4 &5. Procurement Schedule

LIST OF M&A

IBRD No. 21453 Project Locations in Jiangxi

CHIN

JIANGXl AGRICU;,TLJUL DEVELCPMENT PROJECT

I. BACKGROUND

A. Introduction

1.1 The Government of China has requested Bank Group assistance .nfinancing an agricultural development project in Jiangxi Province. Themain objectives of the project are to accelerate and diversifyagricultural development and increase incomss and employment in the ruralsector. The proposed project has components for pig and poultry raising,fisheries, tea rehabilitation, afforestation and agroprocessing and wouldbe concentrated in three regions of the province--the Jitai Basin, Poyang,and Jingdezhen. The project was first identifiel in December 1987. Itwas prepared by the Jiangxi Provincial Government with assistance of anFAO/CP preparation mission in April 1988. A preappraisal mission visitedthe project areas in October 1988 and appraisal took place in mid-January1989.

B. The Agricultural Sector

1.2 Agriculture in China, including crops, livestock, forestry andf'isheries, provides sustenance to over one billion people; it is animportant source of income for some 190 million farm families and accountsfor about 30% of the country's GDP. Only about 137 million ha of China'sland area of 960 million ha are arable. Farming systems are intensivewith heavy inputs of labor, chemical and organic ierrilizers, smallmachinery and water. Nearly half of the cropped area is irrigated.Foodgrains occupy about 70% of the cropland and account for aboutone-third of total agricultural output. This intensive system ofproduction has allowed China to meet the basic food requirements of itspopulation, about 22% of the world's total, and to produce an increasinglysophisticated mix of cash and commercial crops, from less than 11% of theworld's arable land.

1.3 China's decade-long rural reform program has revitalized theagricultural sector through improved work incentives, decentralizeddecision-making, better exploitation of comparative advantages,decontrolled agricultural markets and prices, and technologicalmodernization. The program has resulted in impressive growth of incomeand production and a remarkable diversification in family diets. Thegross value of agricultural output (GVAO) increased by 77% in real termsduring 1978-87, at an average annual rate (6.5%) more than twice that ofthe previous 25 years (3.2%). Grain production, one of the key indicatorsof China's agriculture, increased by about one-third (100 million tons)over the same period. However, several major problems have emerged inrecent years. First, state investment in agriculture has declined,dropping from Y5.3 to 3.7 billion during 1978-86, or from 10.6% to only3.1% of total state capital construction. The downturn in ruralinvestment has contributed to increasing bottlenecks in infrastructure(roads, power, and market facilities) and a minor decrease in irrigatedarea. Second, of great concern to the Government, a 5% decline in giainproduction has occurred since the record harvest (407 million tons) of

1984. Most observers ascribe this development to continuing rigidities inthe pricing of grain while liberalization of markets for high-valuedproducts (fruit, meat, fish, eggs, milk, silk, shrimp, etc.) provides muchstronger income incentives for farmers.

1.4 The Government has responded to these problems by reversing thedecline in state investment in agriculture which was increased to Y4.4billion in 1987, with priority given to the rehabilitation and. expansionof irrigation. Objecctves for agriculture during the Plan period are tomaintain per capita grain :onsumption at current levels while continuingto diversify the overall output structure to accommodate chaneing consumerpreferences. This means increasing food grain output to 450 million t by1995 to match population growth, boosting production of fruits,vegetables, meat, poultry, fish and cash crops, and exoanding output ofprocessed products. To achieve sector growth, Chinese planners, on theone hand, are cailing for technology improvement and maintaining sown areaat current levels, ard on the other, are supporting a series of systemicreforms which include: (a) allowing diverse forms of enterprise ownershipand management to encourage growth of rural agroprocessing, transport, andcommerce; (b) establishing legal guarantees to farmers regarding land userights and ownership of assets; and (c) expanding marketing channels andintroducing some measure of price decontrol. The Bank Group is supportingthese reforms through a Rural Sector Adjustment Loan (Ln. 2967/Credit1932-CHA).

Livestock

1.5 Livestock comprised 15% of the GVAO in 1987. Of total meatproduction, pigs contributed about 88%, poultry 8%, and other livestockonly 4%. As part of the government's efforts to improve cotiiumptionpatterns, targets have been set ror liveqtosk production. By the year2000, the contribution of the livestock subsector to GVAO is projected torise to 25%. The major means to achieve production targets would be moreefficient production and management, a higher level of grain feeding,pasture improvement for ruminants, and the use of animals with superiorgenetic characteristics. Technical feasibility would depend on theavailability of grain, grass and protein supplements; sustainable farmerincentives would also need to be introduced and maintained.

1.6 China is the world's largest pig producer. The year-endinventory for 1988 was 342 million head, the number of slaughtered pigs275 million, and total pork production about 19 million tons. Thesefigures indicate a recovery from the temporary downturn which occurred inthe pig industry in late 1987 due to low state procurement prices and highfeed costs which caused farmers to rush pigs and breeding sows toslaughter. The central provincial governments undertook a number ofpolicies to increase pi duction, such as raising procurement pricesfor pork 30-40% to levels mparable to free-market prices and allowingfarmers selling pigs to the state to buy grain, fertilizer, diesel fueland compound feed at low state-fixed prices. From 90-95% of production isaccounted for by farmers raising one to four pigs, with thosa raising

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one or two generally able to rely solely on non-purchased feed resources(plant and food waste) and thus not affected by feed prices. Given therelatively low level of technology, poor feed quality and inferior breedsbeing raised by most producers, an average of 5 kg of feed is required for1 kg weight gain versus a 3:1 ratio on modern Western swine operations.Government officials generally believe that a pig (live weight) to grain(paddy) price ratio of 5:1 is the minimum necessary for profitability: theprevailing ratio is 7:1. The Government -ontinues to en.co-rage breeding oflean meat pigs (for both domestic and export markets) throughestablishment of lean pig production bases, and in 1987, 21% of slaughterwas lean meat pigs. Lean pig production is dependent on production offormulated feed with adequate amounts of both protein and energycomponents and availability of imported breeds for crossing with localbreeds.

1.7 Poultry production, about 75% chicken, 20% ducks and the restgeese and other minor birds, is increasing very rapidly. Output ofpoultry meat rose to a record 2.3 million t in 1988, a 13% increase over1987. The government has given special emphasis to poultry developmentbecause of poultry's superior feed conversion ratio relative to otherlivestock. Egg production is also expanding steadily. China producednearly 6.5 million t of eggs in 1988, up 8% over 1987 levels.

Fisheries

1.8 China is the world's largest producer of freshwater fish and thethird largest fishing nation afte; the U.S.S.R. and Japan. The subsector,including culture and capture production from marine and freshwatersources, accounts for about 4% of the GVAO. Total aquatic production(including fish, shrimp, shellfish and seaweed ptoduced in Chinese watersand harvested by Chinese vessels in other waters through joint ventureswith other countries) increased from 5.3 million t in 1983 to 10.5 milliont in 1988, an increase of 98%. The structure of production was freshwaterculture (36%), freshwater capture (6%), marine capture (46%) and marineculture (12%). While marine capture fisheries contribute the greatestvolume, the high value fish, particularly off the China coast, are facingdepletion and increasing amounts of the catch are made up of small fishwith low economic value. Government policy since the early 1980s hasaimed toward shifting the production structure from capture to culturefisheries by increasing unit output in the Yangtze and Pearl River deltas,areas where there is a long tradition of aquaculture, and by developirngwasteland to expand the area for fish farming. The existence of extensiveunutilized land suitable for culture fisheries and the fact thatsignificant increases in yields may be realized through application of newtechnology and management methods led the Government to adopt in the early1980s a program to expand annual fisheries production to 11 million t bythe year 2000; with prospects of achieving this level by 1990, the targethas been revised upwards to 18 million t. A major unknown in the futuredevelopment of aquaculture is the extent to which it will be economic tofeed concentrates as opposed to more traditional feeds such as grass andpig and poultry manure. It is likely that a substantial amount of theincremental feed requirements of aquaculture must come from concentrates,which may be justified by rising real prices for aquatic products.

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Forest=

1.9 The forest subsector accounts for 5% of GVAO and providesemployment for some 2.2 million workers. Present forest cover is about12t, which translates to a standing wood volume of 9.1 m3 percapita--compared to the world average of l0 m3 per capita. With annualwood consumption of some 400 million o3 and annual incremental forestgrowth of 300 million m3, China has had to increase imports, overcutnatural forests, and open roeote forest stands. Since the gap betweonsupply and demand is constraining develop-ent and jeopardizing China'sremaining forests, the Government has drafted a plan to increase timberproduction and reduce imports; this plan calls for afforestation of 8million ha by the year 2000.

1.10 Tea production grew at an an annual rate of 6.1% over the1983-88 period to reach 540,000 t in 1988. About 80% of production isgreen tea, and 20% black tea; however, only 20% of the green tea isexported and about 90% of the black tea, mainly to Eastern Europe.Domestic consumption of about 0.3 kg per capita is expected to rise to atleast 0.5 kg by the year 2000; this would require production of about670,000 t to fill domestic demand. With about 1.1 million ha planted and80% of this area picked, yields of refined tea are less than 0.6 t/ha--alow rate compared to other temperate climate tea producing areas whereyields are in the range of 1.5 - 2.0 t/ha.

C. Sectoral Objectives and Bank Lendine

1.11 For fisheries and livestock development, the Government'sobjectives are to increase production for domestic consumption and exportsand provide an additional source of income for the rural population.High-valued aquatic products (shrimp, eel, pearls) and livestock products(meat, wool) are being targeted for export markets. The aquaticdevelopment strategy emphasizes establishment of fish culture systems onland unsuitable for crop cultivation--freshwater culture on swamps,floodplains, marshes and poorly drained interior land and marine cultureon coastal lowlands, shoals and mudflats. The livestock developmentstrategy emphasizes the provisior of superior breeding stock and goodquality feed, industrial (stall-red) management systems, pastureimprovement and development of new pasture species, the establishment ofprocessing plants, and the provision of supporting services such asscientific breeding (with greater use of artificial insemination) andimproved veterinary services.

1.12 The main objectives of the forestry subsector are to produce andsupply timber in the most cost effective way and to substitute for rapidlygrowing imports. Since the rapid increase in forest production envisionedunder the Seventh Five-Year Plan is critically important for the Chineseeconomy and since its earlier programs for plantation establishment havemet with limited success, the Government has requested Bank Groupassistance in providing access to state-of-the-art technology, expertiseand funds to launch a massive commercially-oriented afforestation programand set up an institutional and managerial framework for efficient

planting and silviculture. For this purpose, a Forestry Sector Loan isunder preparation by the Bank Group for FY90. The Bank Group is alsofinancing the Forestry Development Project (Cr. 1605-CHA), which isimproving State Forest Farms in three provinces, and the Da Xing An LingForest Fire Rehabilitation Project (Cr. 1918-CHA).

1.13 The Bank's strategy for lending to Cnina's agricultural sectorhas supported government efforts to expand and diversify agriculturalproduction through more efficient use of human and physical resources.Lending to date has covered a broad spectrum of geographic areas andsubsectors, with an overall focus on land development, upgradingagricultural support services (such as research and credit), strengtheningspecialized product subsectors (such as tubber and fisheries), and, morerecently, area development. The area development approach, whichgenerally targets difficult development problems, combines in a singleproject assistance to land development and support services previously thesubject of separate projects. Although focussed on specific geographicareas, many of the past projects represented initiatives of the centralgovernment. Over the past year the Bank Group has appraised a series ofprovincial projects in which the area development approach is beingapplied, but in which responsibility for proposing and preparingcomponents and for repaying project funds rests with provincialgovernments and their lower level jurisdictions (prefectures,municipalities, counties and townships). This is a new direction intendedto increase the efficiency of project management and execution and toexpand the Bank's involvement in provincial agricultural investmentprograms, which now constitute the great bulk cf all investment in thesector. It takes advantage of increasing delegation of developmentplanning and implementation to local government authorities in China,which has generated strong local commitment to the development ofprofitable and effective subprojects. The Shandong and ShaanxiAgricu-ltural Development projects have recently been approved by IDA. Thepresent project would be the third of this series.

1.14 Implementation of most ongoing Bank Group financed projects inthe agriculture sector is on schedule. Physical works have been completedon time or ahead of schedule. Disbursements for agricultural projectsusually outpace those in other sectors. Notable features of all theprojects are the high standard of project management, the enthusiasticparticipation of farmers and the effective collaboration of governmentauthorities at All levels. The recently completed North China PlainAgriculture Project (Cr. 1261-CHA) demonstrates these features and alsoachieved economic benefits (an ERR of 56%) that far exceed thoseanticipated at appraisal. The second agricultural project in China, theHeilongjiang Land Reclamation Project (Cr. 1347-CHA) is now beingcompleted. In only five years, it has succeeded in reclaiming 200,000 haof bogs in an extremely difficult agricultural regiorn (near the Siber_anborder) for the efficient production of wheat, corn and soybeans, whileintroducing modern large-scale mechanized land preparation and harvestingto China's northeast region.

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D. Agriculture in Jiangxi

1.15 Jiangxi Province is located about 300 km inland from thesoutheast China coast, bounded by Zhejiang and Fujian provinces to theeast, Guangdong to the south, Hunan to the west, and Hubei and Anhuiprovinces to the north. The southern and western regions of the provinceare mountainous and runoff is carried north by five main rivers emptyinginto Poyang Lake and from there into the Yangtze River which forms thenorthern boundary of the province. The total area of the province is166,700 sq km (16.67 million ha), of which 36% is mountainous, 42% hilly,and 22% flat land and water surfaces. The total cultivated area (1987) isestimated at 2.36 million ha of which 1.84 million ha are irrigated.

1.16 Reflecting a high degree of multiple cropping, the area presentlysown is about 5.5 million ha, of which 67% is devoted to grain--mainlydouble-cropped rice, 12% to industrial crops and the balance to othercrops. In 1987, agriculture accounted for about 29% of the gross value ofoutput, 65% of the total labor force, and about 60% of provincialexports. Agroprocessing enterprises, depending on raw mat_,rials fromagriculture, dominate the light industry sub-sector and account for 65% ofits output. Jiangxi's population numbers 35.6 million, of which 82% arerural. In 1987 prices, per capita income of the farming population wasestimated at Y429, about 7% lower than the national rural average ofY463.

1.17 The provincial livestock sector is dominated by householdproduction units raising pigs and poultry as a sideline to take advantageof family labor, excess grain and crop by-products, mainly rice straw andbran. It is estimated that individual households are responsible for morethan 85% of pig production, specialized households about 9-10%, and statefarms about 5%. Most rural families generally have 1-2 pigs and about 10chickens or ducks. In 1987, the year-end inventory of pigs was a recordhigh of 13.9 million. Growth to slaughter weight (90 105 kg) is slow,due to reliance on forage arnd low energy rice by-products. Poultry number72 million and annual egg production under household production units islittle more than 100 eggs per layer. Cattle and buffalo are used mainlyas draft animals. Sheep numbers are very small.

1.18 Total fisheries production in 1987 was 225,800 t, representing a17% increase over 1986. The province is endowed with a large number ofstreams, lakes and reservoirs and has a total breeding area of 254,000ha. Poyang Lake covers some 5,000 sq km and is the largest freshwaterlake in China with more than one hundred different fish species. Jiangxiis not considered to be at an advanced level of aquaculture development;modern pond culture practices have been introduced only recently (in partthrough the Freshwater Fisheries Project, Cr. 1689-CHA). Naturalconditions in Jiangxi are favorable for freshwater pearl cultivation, andskilled workers have mastered the selection of the appropriate varietiesof freshwater mussel and the delicate technique of tissue implantation forculturing pearls.

1.19 Forest cover in Jiangxi, according to the latest (1983) forestinventory, is about 33% or 5.5 million ha, comprising nearly 4.4 millionha of natural forest and 1.2 million ha of forest plantations. Another

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2.85 million ha are classified as "barren hills suitable for forestry."Between 1975 and 1983, however, total forested area diminished by 0.6million ha due to overharvesting. Since then, the Bureau of Forestry(BFO) has instituted strict controls on felling and extraction, and woodoutput has declined from 3.0 million m3 in 1980 to 2.5 million m3 in1987. Jiangxi's year 2000 targets are to increase forested area from 5.5to 9.1 million ha (cover rate to increase from 33% to 54%), expand thestanding volume of timber from 253 to 360 million m3, and increase theannual growth rate of trees from 5.8 to 7 percent. Chinese fir(Cunninghamia lancelota), Masson Pine (Pinus massoniana), slash or wetlandpine (Pinus elliottii) and mixed broadleafs are the main tree speciesspread throughout the province ResinLI is now tapped only from Massonpine and some 15,000 t of its total output of 35,000 t is exported toJapan, Hong Kong and Western Europe. Slash pine, which is consideredsuitable for soil conservation in red soils, can also be tapped for resin,producing higher yields and better quality than that of Masson pine.

1.20 Tea plantations cover about 59,800 ha, of which 2,800 ha areclassified as immature and 13,000 ha as well beyond economic productivity,thus leaving 44,000 ha of productive tea which accounted for theproduction of 17,000 t in 1987. About 75% of production is green tea,while 20% is black tea and 5% Oolong. Yields are low at 400 kg/ha, whilethe national average is 630 kg and the world average is 1,125 kg. Only6,700 ha or 15% of the total area could be considered as economicallvviable, producing above the bench-mark yield of 750 kg/ha set by theMinistry of Agriculture (MOA). Though natural conditions in these areasare suitable for tea cultivation, yields are low because of poor culturalpractices, inadequate plant renewal and inefficient processing. Teaproduction is mainly concentrated in three prefectures (Shangrao: 7,500 t,Jinjiang City: 3,000 t, and Jingdezhen City: 2,000 t).

E. Project Formulation and Rationale

1.21 In formulating the project, the Jiangxi Provincial Governmentsought to select activities which would provide significant incomeincreases for farmers, communities, and local governments; generateforeign exchange earnings; raise levels of technology and management(particularly in livestock, fisheries, and feed milling sectors) whichwould be dispersed throughout the project regions via the demonstrationeffect of higher incomes; and increase forest cover in the province. Theproject builds on the experience gained under the Nanchang component ofthe Freshwater Fisheries Project (Cr. 1689-CHA) and the Red Soils Project(Cr. 1733-CHA), particularly in the areas of smallholder livestock,aquaculture and project management. Lessons and experience gained fromthe proposed project could serve as a model for further agriculturaldevelopment in the province. The Bank Group contribution, in addition toproject design and finance, is in investment analysis to eliminateeconomically unviable components, a credit program design Lased onrecycling funds to benefit increasing numbers of households, regional feedrequirement planning for both project production and increases inproduction of livestock and fish, and technical innovation. particularlyin relation to livestock breed improvement and feedmill and agroprocessingplant design and specification.

LI Resin, tapped from living pine trees, is processed into gum rosin andgum turpentine for industrial use.

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II. PROJECT AREAS

A. Location

2.1 The proposed project areas are in the north, northeastern, andcentral parts of Jiangxi Province. Sites in the north are located in thelow flood plain surrounding Poyang Lake. Activities in the Poyang areawould focus on development of livestock, aquaculture, and agro-processingin 13 counties covering a gross area of 23,000 sq km and a population of 7million. To the northeast. .n the hill country surrounding Jingdezhencity, the project would carry out tea and forestry components on about7,000 ha in five districts which are under city administration.Additional project activities in livestock, aquaculture, forestry, andagro-processing would take place in central Jiangxi in the Jitai Basin tothe west of the Gan River. The Jitai sites are located in eight countiesand the city of Jian which altogether account for a gross area of 19,500 sqkm and 3 million people. Project locations and area statistics are given inIBRD Map No. 21453 and Annex 1.

B. Climate

2.2 The three project areas share a subtropical monsoon climate withdry, mild winters and hot, wet summers. Average daily temperatures rangefrom a January low of 5 degrees C to 29 degrees in July. Annualprecipitation averages from 1,900 mm in the north to 1,300 mm in centralJiangxi. Rainfall is distributed unevenly throughout the year with about70% concentrated in the months of March through July. The frost-freeperiod is about 300 days. Climatic conditions in the Jingdezhen area aregood for tea production: the warm temperatures and frequent overcast skiesand heavy fog during the growing season (April to October) are conducive togrowth of high quality leaves. With respect to the slash pine plantationsproposed for the Jingdezhen and Jitai areas, the prevailing climate issimilar to that of the southern US where the tree originated.

C. ToRography and4 Soils

2.3 The Jingdezhen and Jitai Basin areas are similar in topography:predominantly hilly terrain interspersed with broad valleys where rice isthe main crop. Elevations in the Jingdezhen area range from 100 to 500 mabove sea level; the Jitai Basin is slightly higher, ranging from 200 to700 m. The Poyang area consists of a flat alluvial plain formed by theprovince's five major rivers. The Gan River, which intersects Jiangxi fromsouth to north, flows into the Yangtze through Poyang Lake. The lakefluctuates in size during the year, growing to a maximum of about 5,000 sqkm and a depth of 20 m at the height of the March-July flood season, andshrinking in winter by as much as ten m into several large, shallow lakes.These lakes are havens for waterfowl which concentrate on the shores withincreasing density as water levels reduce during the winter. In 1983, theMinistry of Forestry (MFO) established a 22,400 ha wildlife preserve to thenorth of the project area near the confluence of the Gan and Xiu Rivers,primarily for the purpose of proLecting the wintering Siberian and othercrane populations.

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2.4 Soils in the three project areas are mainly the visibly strikingred soils. These soils are characterized chemically by their acid (low pH)condition and a relatively low nutrient status resulting from continuousleaching under the heavy rainfall typical of the regions where they occur.The soils are usually deep and well structured, except where erosion,either natural or man-induced, has truncated or otherwise impoverished thesoil profile. With application of fertilizer, red soils are suitable for awide range of tropical and subtropical crops, especially deep rootingperennials, or for forestry.

D. Popuation And Land. Use

2.5 Poyang Lake Region. Some 1.4 million families live in the 13counties in the Poyang project area, about 80% of them agricultural. Farmincomes are variable. 1987 rural incomes on a per capita basis for thethree most populous counties, Poyang, Fengcheng, and Nanchang, were Y341,Y510, and Y517, respectively. The average farm household operates 0.4 ha,80% of it irrigated. Of the total sown area of 1.4 million ha, two-thirdsare planted with grain. Total grain production in 1987 was 4.1 million tor 585 kg/capita. Agriculture occupied 62% of 1987 GVAO (Y2.6 billion),livestock 19%, sideline activities 10%, fisheries 4% and forestry 2%.Livestock raising and fish farming have grown markedly in the Poyang areain recent years, by 10% and 20%, respectively, between 1981-87. The bulk oflivestock income comes from meat production which has expanded rapidly inresponse to consumer demands. The greatest emphasis is on pork production:the 13 counties in the Poyang project _rea produced 177,000 t or over 20%of total provincial pork output in 1987. However, consumer demand forpoultry and eggs is on the rise along with a marked preference for leanover fat pork. Consumption of poultry in Jiangxi as a whole increased 19%between 1986 and 1987. Major constraints to continued expansion of meat,poultry and associated products, are shortages of formula feed and the needfor genetically improved breeds which are more efficient meat producers.

2.6 Fish farming at present in the Poyang area is primarily carppolyculture in lakes and artificial ponds. Area and production haveincreased rapidly since 1985; 1987 output stvod at 82,000 t, 36% of thetotal for the province. Yields from fish ponds average a low 1.7 t/ha.Yields from lake culture are much lower. Major constraints to better yieldsare lack of technical knowledge of modern pond culture practices and cageand enclosure culture, poor drainage facilities in an area vulnerable toflooding, and limited use of formulated fish feeds.

2.7 Jinedezhen. A total of 284,000 families, half of them engaged inagriculture, live in the five districts which comprise the Jingdezhenproject area. The per capita income figure for Jingdezhen municipality as awhole was Y420 in 1987, close to the Jiangxi average of Y429. However,incomes in the tea-producing counties are considerably lower. An incomesurvey of 187 tea households in the project area showed an average percapita income of only Y370. The average farm size in the Jingdezhen area is0.2 ha with most of the sown area (68%) devoted to production of grain,primarily rice. Total grain output in 1987 was 435,000 t or 349 kg/capita,considerably lower than the rest of the province. Though tea plantationsat present occupy only about 10% (6,600 ha) of all land under cultivationin Jingdezhen, the area's high altitude and humid climate provide idealconditions for producing a high quality tea (variously known as Qihong,

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Gongfu, or Congou) noted for centuries as a Jingdezhen specialty product(see para 6.8). Yields in the best areas reach as high as 1.5 t/ha(refined); however, in most of the tea gardens, yields average only .36t/ha due to inadequate plant renewal and poor management, particularlyinsufficient weeding and pruning, poor harvesting methods, and limitedinvestment in nutrients. Wood prodtcts, mainly timber and rosin, are animportant part of Jingdezhen's economy, accounting for 8% of GVAO in 1987.Some 29,400 ha have been afforested since 1983.

2.8 Jitai Basin. The average family landholding in the Jitai projectcounties is 0.5 ha, 90% of it irrigated. The area produces largequantities of grain, mainly rice; total 1987 output amounted to 1.5 milliontons or 490 kg/capita. As in the Poyang area, in Jitai the availability oflocally produced rice and rice products has given a boost to pigproduction. The 1987 year-end pig inventory was 890,000 head and porkoutput 60,400 t. At the same time--again like Poyang--the area must dependfor its formula feed needs on feed grains and protein meals imported fromother provinces. The climate and soils in the Jitai area offerconsiderable potential for expansion of tree plantings, particularly of thehigh-yield, fast-growing slash pine. Output of timber and rosin presentlyaccounts for 8% of GVAO. Farm incomes in the Jitai counties are generallybelow average for the province. Per capita income figures for the threemost populous counties, Jian, Suichuan, and Taihe, were Y430, Y358, andY387 respectively in 1987.

E. Power and TransRort

2.9 The provincial power grid serves the project areas and virtuallyall towns and most villages have access to electric power. As in the restof China, the demand for power in Jiangxi exceeds supply. In 1987, totalJiangxi consumption was 10 billion kWh, up about 10% over the previous year.

2.10 The transportation network in Jiangxi consists of some 1,500 km ofrailways, 4,900 km of navigable inland waterways and 31,800 km of roads.There is also limited commercial air service out of the cities of Nanchangand Jian. Road network density in Jiangxi is slightly higher than thenational average with major highways radiating out from Nanchang andlinking the province with the neighboring provinces of Hunan, Zhejiang,Guangdong, Hubei and Anhui. However, the overall condition of the roadnetwork is poor. Less than 12% of Jiangxi's roads have asphalt or concretesurfacing and about 50% are dirt roads with limited utility during therainy season. China's main north-south rail line cuts through theJingdezhen project area; a north-south trunk line running between Nanchangand the Yangtze port city of Jiujiang is close to the Poyang area sites.Transport of coal, construction material, grain and fertilizer demandapproximately 70% of Jiangxi's total rail freight capacity.

2.11 Project products will be transported by road, rail, and waterways,but the bulk of tonnage will be moved by truck along roads of varyingquality which extend throughout the project areas. Road freight traffic inJiangxi has grown at an annual rate of 15 to 2" percent which results indoubling every four to five years. Ninety percent of the truck fleet inthe province consists of medium to large vehicles with capacities ofgreater than four tons; in 1988, this amounted to approximately 68,000trucks. Over the last few years Jiangxi has lagged behind most other

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provinces in per capita investments in upgrading the road network. TheJiangxi Provincial Highway Project (Credit 1984-CHA), recently approved forBank financing, would provide urgently needed capacity in the heavilytravelled corridor between the provincial capital, Nanchang, and theimportant Yangtze River port of Jiujiang. The ton-km of road freightrequired by the project after full development is estimated to be less thanone percent of the present provincial road transport volume.

F. Research mnd Exte.ngion

2.12 Jiangxi has in place a well-established research and extersionnetwork which has functioned effectively in the past, but which isincreasingly constrained by lack of modern equipment and staff trainedin new technologieE. The leading agricultural research organization is theProvincial Academy of Agricultural Sciences, a locally-funded affiliate ofthe MOA's Chinese Academy of Agricultural Sciences. The Provincial Academyoperates a network of prefectural institutes specializing in variousaspects of crop and livestock research--e.g., at the provincial level, aHorticultural Research Insitute, Forage Experimental Station, andVeterinary Research Institute. A Red Soils Research Institute which has astaff or 50 researchers and 120 laboratory technicians has been responsiblefor basic research on red soils improvement and its facilities are beingstrengthened under the Bank-financed Red Soils Project.

2.13 In forestry, Jiangxi has in place the standard research hierarchy:a provincial institute which has ties to MFO's China Forestry ResearchInstitute, prefectural or municipal research units and, in each county, aforestry station which organizes demonstration activities but is moreconcerned with extension than research. The larger state forest farms(SFFs)--notably Fengshushan--support demonstration/extension stations aswell. The main research focus in forestry is on (a) developing improvednursery and planting techniques, (b) conducting trials on new species, and(c) disease prevention. Fisheries research is directed by the NanchangFisheries Research Institute which is financed by the Bureau of AquaticProducts. A new operation with a staff of only 15-20 people, the Instituteis currently carrying out some experiments in fish nutrition, but itsprimary work involves demonstration and extension rather than actualresearch. Jingdezhen City has a Tea Research Institute under itsagriculture bureau staffed with 11 technicians. A limited number ofdemonstration activities are being carried out on 10 ha of experimentalarea, but the research program is generally weak due to lack of financingfor equipment and staff training.

2.14 Formal education in agriculture is the responsibility of suchinstitutions as the Jiangxi Agricultural University, the YichunAgricultural Polytechnic, and the Animal Husbandry and Fisheries TechnicalSchool. In the area of non-formal training, the county agriculture bureausoperate a number of technical training and advisory units, including anagro-technical extension station which advises on farm management andcoordinates short-term training courses with units specializing in plantprotection, soil analysis, animal husbandry, and aquatic products.Typically, the county agro-technical station has a staff of 15-20 people,most of them graduates of specialized secondary schools and above. Thereare on average 17 agricultural technicians per 10,000 farmers in theproject areas. Stations routinely conduct week or two-week long training

12

sessions which are available to all farmers during the off-season. InTaihe County (agricultural population-396,000), for example, about 12,000farmers are trained annually in courses held at county stations oraffiliated units in townships and villages. While in some provinces theagro-technical extension stations have been set up as financially self-supporting units, in Jiangxi, these stations provide free services tofarmers. Extension services in forestry are provided by a similar networkof units under the forestry bureau. Forestry technicians total about 3,000or one per 400 ha of plantation area. Tea extension work in Jingdezhen isprovided by 160 technicians operating city, county, and township stations.

G. Livestock SUpRort Services

2.15 Jiangxi Province was one of four sites selected for special studyin the Bank's 1986 survey of China's livestock sector. Since the finalreport, China: Th& Livestock Sector (Report No. 6589-CHA), was issued inearly 1987, a number of the problems raised have been addressed, both inJiangxi and nationally; namely, farmers are now paid a price premium forlean meat pigs, minimum standards for energy and protein content have beenapplied to formula feeds, and disease reporting has become mandatory.Other changes--e.g., in scale of production, farm management, and hygienicstandards in agro-processing--are under way and would be furthered throughthe proposed project.

2.16 Veterinary stations e-ist in most counties, townships, andvillages. Staff are for the most part technical middle school graduateswhose numbers are adequate but whose knowledge of animal nutrition andbreeding is often weak. The county Agriculture and Animal HusbandryBureaus offer a regular disease prevention program for poultry (Newcastle'sdisease, Marek's disease, cholera, bronchitis, parasites) and pigs(cholera, Alljesky's disease, foot and mouth disease, and parasites).Vaccination of both adult and young animals is a regular part of diseaseprevention. Farmers are encouraged to have annual blood tests for theirpigs through the county laboratories. Tissue samples are also submittedfrom abattoirs. Disease reporting from the local veterinary stations up tothe province level is now routine. Data for Jiangxi for 1983-87 showmortality rates for pigs of 2-2.5% and for poultry of 8-12%, which arewithin the normal range for pig and poultry populations.

2.17 An estimated 85% of Jiangxi's pigs are produced under backyardsystems in which farmers raise only 1-2 pigs; pig raising specializedhouseholds (SHs) account for another 10%, and state farms for about 5%.The backyard producers rely primarily on food waste, green feeds, and cropbyproducts in fattening their pigs. In Jiangxi, China's largest per capitarice producer, these scavenger pigs may also count on being fed locallyproduced rice and rice products. An estimated 34% of livestock feed inJiangxi comes from rice bran which has about 90% of the energy value and130% of the protein value of corn. In the last few yearL, particularly inresponse to increased demand for lean meat pigs, there has been aperceptible shift from backyard production to the more efficient, larger-scale SH and state farm systems which must rely un purchased feeds. Feedmill output has correspondingly increased, from 870,000 to 1 million tons,for example, between 1986-87. Increased milling has put pressure onavailable supplies of corn, wheat, protein meals, and other ingredients ofthe formula or concentrate feed product. Analysis of raw material sources

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for J'angxi shows that in 1987 about half of the required corn, soybeans,and wheat were procured from outside, mostly from surplus-producingprovinces in the north and northeast. As long as Jiangxi is willing to paymarket or near-market prices for these imported feedstuffs, it is expectedthat supplies will be assured even in the face of transport shortages andother constraints to interprovincial trade that exist in China at present.Projections for raw material supplies are shown in Annex 1, Tables 4-6.

2.18 Feed industry managemnt is one of the key responsibilitiesof the Jiangxi Provincial Grain Bureau (others are grain and oilseedprocurement, processing, and distribution). The Grain Bureau works withthe Provincial Planning Comission on projections for feed requirements andarrangements for purchase of essential feedstuffs from outside theprovince. Under the Grain Bureau, the Jiangxi Feed Company has beenorganized as an independent accounting unit to supply feed grains tofarmers and mills, and to manufacture and distribute compound feedstuffs.The Feed Company manages most feed mills at levels above the county andprovides technical guidance to the county-owned mills. A Feed InspectionStation under the Grain Bureau is responsible for monitoring feed quality.A Feed Association, under the Provincial Planning Commission, isresponsible for approving applications to establish township mills andadvises the provincial government on feed quality and supplies. Qualitystandards for concentrate, formula and protein supplement feeds as set bythe Grain Bureau are somewhat lower than those used in developed countries,but appropriately accord with current local conditions (Annex 1, Table 7).

H. Credit

2.19 The Jiangxi branch of the Agricultural Bank of China (ABC) beganoperations in 1979 and has at present an extensive network of prefecturalcentral offices (11), county sub-branches (100), township offices (1,520),and savings offices (460). Associated with ABC are some 1,870 Rural CreditCooperatives. About 80% of ABC's total staff of 15,000 are employed incounty sub-branches and savings offices, the main operational units of theABC. Its financial resources come from deposits, borrowings from theCentral Bank and equity, which at the end of 1987, amounted to Y3.6billion, Y2.2 billion and Y700 million, respectively. Although loandisbursements have expanded rapidly in recent years, ABC's dependence onthe Central Bank for most of its longer term resources has limited itsability to lend for slow-maturing investments such as tea planting orafforestation. ABC has been able to operate profitably making consistentlygood profits, which amounted to Y96 million in 1987, more than double thelevel in 1984. However, expansion of operations is constrained by ashortage of qualified staff experienced in loan management, particularlyfinancial evaluation and market analysis.

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III. THE PROJECT

A. Proiect Obiectives and Relation to Sector

3.1 The main objective of the proposed project would be to assist theJiangxi Provincial Government to accelerate and diversify agriculturaldevelopment. The proposed project is intended to improve the productivityand incomes of participating farmers, communities and local govenmentsand move farm operations from a subsistence level to commercialorientation. It also seeks to utilize lands which are unproductive orunsuitable for grains and other crops and to take advantage of sunk costsby making additional modest investments to improve productivity. It wouldfocus on three regions--the Jitai Basin, the Poyang area, andJingdezhen--with the aim of developing replicable technical and managerialmodels and generating additional fiscal revenue which could be utilizedfor subsequent development of other regions.

3.2 Various levels of government are addressing the issue ofunderemployment which has arisen in rural areas since the communal systemof agriculture management was replaced by the production responsibilitysystem. Programs have been devised not only to develop rural industry butalso to promote specialized households (SHs, currently defined ashouseholds which devote at least 60% of their time to a single farmingactivity, market 80% of their farm output, and derive 50% of their incomefrom those activities). Though most of the project's productionactivities would be carried out by SHs, the livestock and aquatic poultrycomponents, in particular, would provide greater opportunity forindividual households to receive financial rewards commensurate with thesuccess of their operations and to plan for expansion of their operations;the main constraint to expansion of livestock production in the past hasbeen insufficient investment capital for larger herds/flocks and workingcapital for feed and labor. The SHs in the project have generally beenselected for their demonstrated initiative and management capability andwould provide models for other farmers to emulate.

B. Proiect DescriDtion

3.3 The proposed project would support a livestock development programfeaturing pigs and poultry on hilly land unsuitable for grain cultivation,develop and intensify freshwater fish culture (in some cases, integratedwith livestock activities) in low-lying areas and in lakes and ponds,rehabilitate low-yielding tea plantations, and establish new commercialforest plantations. Agroprocessing facilities would be established orimproved to facilitate and process the additional livestock andagriculture production, to provide formula feed for the project animals,and to demonstrate the proper methods to organize, manage and financeupgraded processing and handling facilities. The project has a short-termcredit element which would cover those initial investment costs whichcould be recovered within one production cycle, e.g. day-old ducks andgeese, fish fingerlings, sows, feed, labor and other production costs.These funds would then be available for recycling to other projectparticipants and altimately to expand the scope of production activities.The geographical distribution of project activities is shown in Annex 1,Table 9. The main features of the project are:

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(a) Livestock - provision of breeding farms, on-farm facilities,and initial working capital for some 12,900 SHs to producepigs, ducks, geese, and specialty chicken ;

(b) Aquaculture - construction and improvement of about 2,058 haof ponds, 1,279 ha of cages, enclosures and barriers,establishment of 200 ha of pearl farming, and provision ofinitial working capital for some 3,300 SHs;

(c) Forestry - establishment and maintenance of 6,705 ha of slashpine for both pulpwood and resin production;

(d) Tea - rehabilitation of 4,bOO ha of old tea gardens; and

(e) Agroprocessing - establishment or improvement of feedmillsand facilities for processing pork, aquatic poultry, tea,resin and raw materials for feedmills, and provision ofinitial working capital; and

(f) Training and technical assistance - facilities and programsfor staff development and training to upgrade research,extension and project management.

C. Detailed Features

Livestock

3.4 Pigs - Investments in the pig industry would promote increasedproduction of crossbred pigs which have a higher lean-to-fat ratio thannative breeds. The project would provide for the import of foreign breedsfor parent stock, expansion of three existing breeding farms (theProvincial Pig Breeding Farm, the Shangrao Prefectural Pig Breeding farm,and the Jian Prefecture Breeding Stock Farm), establishment of aprovincial production farm under the guidance of the Agricultural Bureau,and setting up about 3,800 SHs with breeding sows, pig pens and initialworking capital. The production farm would serve to popularize advancedpig raising technology, meanwhile producing annually about 9,000 marketpigs for Nanchang and export and about 1,000 breeding pigs for sale toSHs. SHs for this component would be selected from locales which havehilly or mountainous waste lands (precluding large scale development ofgrain crops) and are accessible to water, electricity and transport.

3.5 Two models have been proposed for the project: a 4 sow/60 pigmodel and a 12 sow/180 pig model. It is planned that about 3,500 Sllswould have the smaller model and about 300 SHs, already experienced in pigproduction, the larger model. On-farm facilities would include sheds andpens for sows and fattening pigs. In addition, the project would provideinitial working capital for one production cycle (six months) in orderthat farmers would be assured of funds for purchase of sows, feed,veterinary services and other expenses. Housing for the SHs would not beprovided under the project; the ability to borrow for housing would be oneof the criteria for selection. Farmers would be required to useArtificial Insemination (AI) for breeding their sows, and veterinary andAI stations would be established for each group of 30-50 farmers. In mostcases, the SHs would be provided with 0.3-1.0 ha of undeveloped hilly

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land, the purpose of which would be two-fold: development of unutilizedland and provision of silage material, both as a supplement to and asinsurance against inadequacy of feed supplies.

3.6 Poultry - The project would provide for establishment or expansionof 23 breeding farm/hatcheries (2 for egg ducks, 10 for local Ma ducks, 9for large meat ducks and 2 for geese) and setting up 9,150 specializedhouseholds (3,950 for duck raising and 5,200 for gee:e) with poultry shedsand initial working capital for one production cycle. Technical services,including veterinary facilities, would be strengthened in allparticipating counties and state farms. Breeding farms would be equippedwith incubators, hatchers and emergency generating plants and would beisolated as far as possible from other poultry flocks to minimize thedanger of infection. Four production models have been proposed for theSHs: egg ducks - 1000 birds/500 day cycle; local Ma ducks - 1000birds/120 day cycle; large meat ducks - 1000 birds/70 day cycle; geese -200 birds/120 day cycle. The project takes advantage of the adaptabilityof the local Ma duck to feed on paddy rice as well as formula feed and ofgeese to feed on grass areas along channels and ponds, while introducingand encouraging development of large meat ducks which have a higher meatcontent and faster growth rate, but which are dependent on formula feed.In addition, the blackbone chicken breeding farm at Taihe would beexpanded to supply parent stock for local farmers and finished chickensfor commercial use.

Aouaculture

3.7 This component has been designed to expand fisheries production byconstructing new ponds on waterlogged areas uiith no economic potential forcrops and increasing the unit output in existing ponds through simpleimprovements in structure. The project would include construction of1,167 ha of new ponds and improvement of 891 ha of existing low-yieldingponds, development of 1,100 ha of barriers, 276 ha of pens and 30,700 m2of cages, establishment of 200 ha of pearl farming -rea and provision ofinitial working capital for some 3,300 households.

3.8 New ponds would be built in low-lying, waterlogged areas andprovided with dikes for river flood protection and pumping stations forconnection to drainage systems. The ponds are designted as modules of 1.2ha, comprising 1.0 ha grow-out ponds and 0.2 ha nursery ponds. Separateinlets and outlets would be built, and the feeder canal would be common totwo ponds. Ponds would be developed in aggregations ranging from 8 to 110ha. Some 973 SHs would be involved, of which 638 would integrate fishfarming with pig rearing and 266 with duck raising; the remaining 69 wouldproduce only fish.

3.9 Pond improvement would take advantage of sunk costs and would becarried out by deepening existing ponds--requiring about 3,000 m2/ha ofearthworks. Water supply, drainage and power would be provided wherenecessary and livestock sheds would be included. Some 891 SHs would beinvolved, of which 282 would integrate pond operations with pig rearingand 268 with duck raising; the remaining 341 would produce only fish.

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3.10 Fish barriers for extensive fish farming would be erected byfencing off protected bays in lakes and stocking fingerlings to utilizethe natural productivity of the lake. The barriers would consist of 4 mwide net (3 cm mesh size) held in place by bamboo poles. Intensivefarming would be carried out in 1 ha circular enclosures, likewiseconstructed with net and bamboo poles. Cages would measure 4m x 7m x 2 mand would be used for intensive monoculture of grass carp. Sincoexperience with fish barriers, pens and cages is still relatively limited,the design of the technical packages (feed, cultivation, etc.) forenclosures and cages will be modified as the project progresses.

3.11 Pearl farming would be expanded on 200 ha, adjacent to anothersmaller freshwater pearl farm. The project would provide buildings andrearing infrastructure on land, equipment, production tools, initialrearing stock of implanted mussels and working capital. This activitywould take place on a state farm and salaried workers would be hired forcarrying out the operation.

Forestry

3.12 The project would establish 6,705 ha of new plantations of slashpine with seedlings grown from imported superior quality seed; constructfacilities for state furest farm staff, and strengthen BFO researchcapability. The project would provide seed, fertilizer, and labor toestablish and maintain 2,246 ha of slash pine plantations on the SanfangSFF in Jian County, another 2,246 ha on Taihe County's Tianmashan SFF, and2,213 ha on the Fengshushan SFF in Jingdezhen Municipality. Selectioncriteria for planting sites include a soil depth of over 50 cm, soilgravel content of less than 20%, slopes under 30 degrees, and a minimumcontiguoun area of 50 ha. Seedlings would be grown in SFF nurseries.Land preparation and planting would be caried out by hired labor, eitherfrom the SFF or nearby villages, on a contract basis. Holes would be dugsix to eight months before planting to allow for weathering of the soil.Seedlings, encased in plastic containers, would be planted from January toMarch at a density of 1,650/ha (spacing of 2x3 m). The project wouldsupply some 7,200 t of chemical fertilizer (35% F and 65% Urea) for use atthe time of planting and for subsequent applications as required atweeding and thinning. To protect against fire, the project would provide279 km of firebreaks (consisting of a 15-20 m strip of fire resistanttrees) at a density of 1 km per 24 ha of plantation, and would construct13 watchtowers and 5 forest service stations. The MFO plans to includeJiangxi Province in the Forestry Sector project now under preparation(para 1.12). To insure consistency of objectives and approach between thetwo projects, an assurance was obtained at negotiations that the standardsand methods of afforestation of this project would be subject toconsultation with the Bank Group from time to time; it was confirmed thatthe standards and methods applicable to the project's forestry componentwould be the Standards for Fast-Growing, High-Yielding Forest Plantations,developed by the Ministry of Forestry and modified for conditions inJiangxi.

3.13 Tne project would provide for rehabilitation of 4,807 ha ofseriously degraded and neglected tea gardens within the Jingdezhen area.

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Tea production in the area has a number of comparative advantages,including favorable climate and soils and a long tradition of cultivationand processing of a specialty black tea. Under collective managementsystems in the pre-reform period, tea gardens were poorly maintainedresulting in declining yields and low incomes for tea producers (para2.7). The introduction of the production responsibility system hasstimulated interest in tea productio- again, and, at the same time, thereis a suitable technology for tea rehabilitation--mainly, severe pruningand regular fertilizer application. The project would provide credit forlabor to cut back the tea bushes by pruning to ± 40 cm and for purchaseand application of organic manure and chemical fertilizers.

AgrODroroce ing

3.14 The objective of this component would be to build, equip andprovide working capital to processing enterprises to provide inputs offormula feed for project livestock and fish, handle the increasedproduction of raw materials from the project, demonstrate improvedprocessing techniques, and act as a pilot for future processinginvestments in the province. The existing factories, many of which wereestablished in the 1950s and 1960s, are inadequate to cope with theexpanded production, technically outdated, and inefficient in design andoperation. The proposed facilities are described below:

(a) Feedmills - The feed supply system provided by the project wouldbe based on a three-tier system for manufacture and distribution, asrecommended by the Bank's Livestock Sector Study. Two existinglarge-scale modern mills in the province would deliver pre-mix feed/l tothe two project concentrate/2 mills, which would in turn supply the 50formula feed/3 mills located in the counties and townships. At fulldevelopment, the annual formula feed requirement for project animals wouldbe about 310,'30 t (Annex 1, Table 8). To meet these requirements, theproject would include two large (20,000 t) concentrate feed mills and 50formula feed mills--eight medium-sized (5,000 - 15,000 t) and 42 small(500 - 2,000 t). Total project demand would be met by eventuallyoperating the mills for two shifts, by utilizing some spare capacity inthe concentrate mills for production of formula feed, and by using some ofthe spare capacity in existing mills in the project area. With 270,000 tcapacity available from project mills through double shifts, the 40,000 tbalance could be met by existing mills. Since availability of rawmaterials has occasionally been a constraint to full utilization ofcapacity in the past (para 2.17), an assurance was obtained at

/1 premix feed - a mixture of micro-elements such as vitamins and traceelements. Very small quantities of this material are mixed with otherground raw material and delivered to the concentrate mills./2 concentrate - a mixture of premix feed (10% by weight) with proteinmaterials (90% by weight) such as fish meal, soybean cake, rape seed cake./3 formula feed - mixture of concentrate (in the proportions of 10% offinal product weight for pigs, 15% for poultry, and 39% for fish) with"#energy" materials such as grains, corn, and soybean.

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negotiations that the Jiangxi Provincial Government would ensure thatsufficient funds would be available for procurement of raw materials toproduce good quality feed for project livestock.

(b) Fertilizer - establishment of an experimental facility to producefertilizer at the Jiangxi Provincial Chicken Breeding Farm. The farm,which has 200,000 layers, 20,000 breeding hens, and an annual productionof 120,000 commercial chickens, has the problem of disposing of 10,000 tof chicken manure each year. The new facility would provide for quickdrying, sterilization, and processing into 7,000 t of raw materialsuitable for incorporation into coimercial feed for pigs and fish or useas fertilizer. Experimental evidence has shown that chicken manure ishigh in trace elements and can be used to fertilize some crops or, ifproperly treated, incorporated into livestock feed; a similar factory hasbeen succissfully operated in Shanghai for three years. The project wouldprovide civil works and equipment for drying only; the existing on-sitefeed mill would produce the livestock feed.

(c) Bone meal - expansion of the Nanchang Canjiang Biochemistry Plantwhich produces bone meal, bone fat, peptone, and glue. Bone meal(tankage) is an important source of protein and can be subst4tuted in partfor imported fish meal in livestock feed. It would utilize bone wastefrom slaughterhouses, estimated to be some 8,000 t annually.

(d) Pork - expansion and improvement of an existing (30-year old)slaughterhouse (United Mea. Processing Factory located on the outskirts ofJian City) to increase capacity and improve hygienic conditions. Theproject would include rebuilding the slaughterhouse, constructing a newcutting/processing line, and installing a 20 t freezing room and 1,000 tcold storage unit. The facility would conform to standards and guidelinesissued by the Ministries of Commerce and Public Health and the InspectionBureau for Import and Export Commodities (under the State Council). Thesestandards relate to site selection, design and layout of buildings,handling procedures for live animals and carcasses, and training andhygiene of workers.

(e) Duck processing Dlants - establishment of five new processingplants and expansion of an existing plant to produce frozen duck, pressedsalted duck, preserved eggs, and eiderdown. The project would provide forconstruction and equipping of the plants. Two large plants would beconstructed, one in Shangrao and the other in Nanchang, each with annualproduction capacity of 3 million frozen ducks, 300,000 dried ducks, and 10million preserved eggs. Two medium-sized plants would be constructed onHenghu and Hengfeng State Farms for producing 2 million frozen duckseach. A small factory would be established on Kangshang State Farm toproduce 550,000 frozen ducks, 50,000 pressed salted ducks and 3 millionpreserved eggs. An existing facility, the Yilan Pressed Duck Plant inSuichuan County, would be expanded for producticn of 150,000 pressedsalted ducks. Annual production of the six plants would be 580 t ofpressed salted duck, 9,406 t of frozen duck, 30 million preserved eggs,and 120 t of processed feathers.

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(f) Down Rroduc - expansion of the existing Suichuan EiderdownProcessing Factory (Jitai project area) to take advantage of the abundanceof water fowl in the project area. The project would provide forconstruction of additional buildings and equipment (industrial sewingmachines). With each duck providing 0.1 kg of feathers (8% down and 92%feathers) and each goose providing 0.2 kg (20% down and 80% feathers), theproject water poultry component alone would provide 1,600 t of feathers.The eiderdown factory would clean the raw materials and manufacture quiltsand garment&;. The feather handling capacity would increase from 250 t to350 t resulting in the expansion of output from 45,000 garments to 100,000quilts and 200,000 down garments, with much of the production forlucrative export markets. In addition to the Suichuan plant, there arefour other down processing plants in the project area which could handleadditional quantities of project-produced feathers.

(g) I" - establishment of 47 new primary processing factories andexpansion of seven refining plants to produce Gongfu black tea. Theprimary processing factories would each have an average capacity of 120t/yr, which together with the existing capacity of 3,780 t/yr would besufficient to handle project production. Each plant would be equippedwith receiving, grading and storage areas, wilting troughs, rollingequipment, fermenting area, drying equipment and final storagefacilities. The plants would be located within or close to the tearehabilitation areas so as to minimize transport costs of fresh tea.Seven existing refining plants would be expanded and improved under theproject to handle the increase from the primary processing factories.Equipment to be provided and installed would include drying, storing,rolling and screening machinery, tea cutters, sieves, shakers, grading,selecting and bagging/packing equipment. Since there are at present nobox making facilities in the project area, the project would also providefor construction and equipping of a carton making plant with an annualproduction of 1.2 million tea cartons.

(h) Resin - for processing resin into gum rosin and turpentine, afactory would be established in Jian County. The technology used issimple, involving two basic operations: cleaning to filter out impuritiesand steam distillation in which steam is used both to heat the resin andto facilitate fractionation by co-distilling with the turpentine vapors.The approximate composition of crude resin is 70-75% rosin, 15-20%turpentine and 5-10% debris and water. Thus the project plant'sthroughput of 4,080 t/yr crude resin is estimated to yield about 3,000 tof rosin and 740 tons of turpentine derivatives each year. The projectwould construct about 3,800 sq m of buildings including a boiler room,testing laboratory, storage area, and packing room. The plant would beequipped with dissolving and cleaning vessels, a filter, still, andrectifying tower. Raw materials would be provided initially by alreadymature slash pine stands in the Jian area, ultimately from the projectslash pine planted at Sanfang SFF. Designs for the plant have beenprepared and tested by the China Forestry Institute's Research Divisionfor Chemical Industrial Uses of Forest Products.

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Training and Technical Assistance

3.15 The project includes an extensive program of local and overseastraining to strengtnen research, extension and project managementcapability in the project area and to provide specific skills training toparticipating households (Annex 3). About 20,000 months of local trainingwould be provided. At the basic level, 12,400 months of training at thecounty training centers would consist of 15 day courses in animalhusbandry, fisheries, farm management and other subjects applicable tospecialized households and village and township technical staff. At amore advanced level, about 5,000 months of training at the prefecturalstations would consist of one month courses for mid-level technical staffof the counties and State farms. In addition, 2,600 months of advancedtraining at the provincial and prefectural stations would be given byexperts and scientists for mid- and primary-level technical personnel andextension staff. An understanding was reached at negotiations that theProject Office would encourage participation of farm women in projectactivities and that at least 25 percent of the trainees in the trainingprograms for specialized households would be female. The project wouldprovide for teaching equipment and construction or expansion of trainingcenters in the participating prefectures, municipAlities, counties, andstate farms and at the Jingdezhen Tea Research Institute. Newconstruction would range from 500 m2 to 2000 m2 at each site and wouldinclude class rooms, laboratories, offices, dormitories, and dininghalls. The county level facilities would be used for training farmers andspecialized households; prefectural level facilities would serve primaryand mid-level technicians attached to county and township extensionstations.

3.16 A small number of technical staff would be given foreign languagetraining and then sent abroad for three- to six-month non-degree training(about 57 months in total) in key subject areas. The project alsoincludes 32 months of study tours to examine modern techniques ofproduction, processing and distribution in advanced producing countriesand 15 months, spread over the five-year implementation period, of theservices of overseas consultants, who would be invited to hold workshops,seminars, and training courses in new technologies and managementmethods. Special emphasis would be given to training for staff of theAgricultural Development Corporations (ADCs) in financial management andmarket analysis in order to strengthen overall ADC performance in projectexecution. Where possible, e.g. for fisheries, an effort would be made tocoordinate overseas training and study tours with technical assistance bycontracting with an international training center to receive students andprovide consultants to assist in setting up and carrying out research atprovincial facilities. An assurance was obtained at negotiations that thetraining component would be carried out in accordance with a scheduleacceptable to IDA. An understanding was reached that annually the ProjectOffice would furnish to IDA for its review and comment a list of theoverseas training and study tours proposed for the coming year, with thepurpose, destination, criteria for participant selection, and names andtitles of participants. Consultants would be selected under terms ofreference agreed at negotiations.

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3.17 A contract research program would be initiated under the projectto investigate specific topics aimed at improving efficiency, quality andmarketability of project production. Contracts would be made with localscientific research institutes to carry out studies on such subjects asfeed formulation for lean pigs and fish, vacuum packing methods forpressed salted duck, crossbreeding of egg and meat ducks, seriesformulation of feeds for different growth stages, color improvement ofduck egg yolk, increasing egg production of meat geese, tea seedlingselection and pest prevention, seedling selection for slash pine, andquality improvement of pearl cultivation.

D. Status of Proiect Preparation

3.18 The project is at an advanced stage of preparation. Basic datahave been collected for the livestock, fisheries, tea and forestrycomponents; site surveys and soil tests have been carried out at all sitesfor tea and forestry. Sites for the aquaculture component have beenapproved by the provincial Bureau of Aquatic Products on the basis ofsurveys carried out by the county and prefecture engineers Site surveysand sol0. and water-quality tests have been carried out. Preliminarydesigns have been completed and final design and constri.ction drawings arebeing undertaken with assistance from Water Conserv,ancy Bureau engineers.Detailed construction drawings for civil works and buildings andengineering drawings for agroprocessing facilities have been prepared byprovincial design institutes; cechnical and financial revieus were carriedout by Bank staff during preparation and appraisal.

E. Implementation Schedule

3.19 The project would be implemented over a period of five yearsbeginning in late 1989 with completion in late 1994. The forestry, teaand agroprocessing components would take the full five years, while thelivestock and aquaculture components are scheduled for completion in threeyears. A detailed implementation schedule is given in Figure 1.

F. Cost Estimates

3.20 The total project cost in mid-1989 prices is estimated atUS$121.7 million, with a foreign exchange component of US$32.6 million or27% of the total. Taxes and duties are not included in the project cost;imported materials and equipment are exempt from duties. Cost estimatesare based on quantities derived from the designs described in para. 3.18and unit prices currently prevailing in the project area. Prices formaterials and equipment are based on suppliers' quotations. Physicalcontingencies of 10% have been included for civil works and processingequipment and equal 7% of base costs. Price escalatiorn for both foreignand local costs when expressed in US dollars is based on annualinternational price escalation rates for all goods and services of 5.3% in1989-90 and 4.1% in 1991-94; and when expressed in yuan, is based on priceescalation rates of 15% in 1989, 10% in 1990-91, and 8% in 1992-94. Pricecontingencies would amount to 8% of total costs expressed in US dollars.Estimated costs are summarized in Table 3.1 and details are given in Annex2.

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Table 3.1 - PROJECT COST SUMMARY

Local For. Total Local For. Total FE Base(Y million) (US$ million) Cost

LivestockPig production 22.95 6.49 29.44 6.19 1.75 7.94 22 8Poultry production 24.82 2.95 27.77 6.69 0.80 7.49 11 7

Aauaculture 49.71 3.60 53.31 13.40 0.97 14.37 7 14

Forestry 13.94 4.28 18.22 3.76 1.15 4.91 23 5

Tea Improvement 34.31 9.68 43.99 9.25 2.61 11.86 22 11

ProcessingFeedmrilis 14.85 29.12 43.97 4.01 7.85 11.86 66 1lPark processing 1.75 0.47 2.22 0.47 0.13 0.60 21 1Poultry processing 17.69 14.18 31.87 4.77 3.82 8.59 44 8Tea processing 23.31 6.57 29.88 6.28 1.77 8.05 22 8Rosin production 3.06 0.86 3.92 0.82 0.23 1.05 22 1

Research. Training,and TA 14.86 3.83 18.69 4.01 1.03 5.04 20 5

Inc. Workin2 Cap. 61.57 22.77 84.34 16.60 6.14 22.74 27 22

Base Cost 282.82 104.P0 387.62 76.25 28.25 104.50 27 100Phys. Contingency 20.54 6.61 27.15 5.54 1.78 7.32 24 7Price Contingency 72.66 25.34 98.00 7.36 2.56 9.92 26 9

TOTAL PROJECT COST 376.02 136.75 512.77 89.15 32.59 121.74 27 116

G. Financing

3.21 Bank Group assistance would be an IDA Credit of SDR 46.2 million(US$60 million equivalent) and would cover 49% of total project costs,equivalent to 100% of foreign exchange costs and 30% of local costs. TheGovernment would onlend the proceeds of the loan to the Jiangxi provincialgovernment. The balance of US$61.7 million equivalent would be met from theprovincial government (US$9.0 million), municipal and prefecturalgovernments (US$10.4 million), enterprises and farmer contributions (US$17.6million) and domestic loans (US$24.7 million).

H. Procurement

3.22 Procurement arrangements are summarized in Table 3.2. Works vorthabout US$51.4 million would be required for the project, consisting e' ponddevelopment for fisheries (US$10.5 million), afforestation (US$4.0 Tiillion),tea rehabilitation (US$7.1 million), site preparation for agroprocessing

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facilities (US$1.2 million), and construction of buildings for on-farmlivestock shelters and work sheds (US$15.6 million), processing plants andfeedmills (US$11.4 million), and training centers (US$1.6 million).Except for the site preparation work for processing facilities andinfrastructure, which would be contracted to local construction teamsthrough contracts awarded following LCB, much of the civil works would becarried out by farmers (for the livestock and tea rehabilitationcomponents) and village labor (forestry component). About US$17.1 millionof civil works and buildings (33% of total works) would be contractedthrough LCB, using procedures accceptable to the Bank, and about US$34.3million (67% of total works) would be carried out by farmers and villagelabor. The civil works and buildings proposed for LCB are scattered overa wide geographic area, phased over a five-year period, and would be toosmall to attract foreign contractors.

3.23 Goods worth about US$50.4 million would be required for theproject. Whenever possible, machinery and equipvment will be grouped intocontracts valued at US$200,000 or more and procured through ICB accordingto Bank Guidelines. This will include the main agroprocessing machinery(US$12.3 million), construction materials (US$9.2 million), vehicles(US$2.3 million), tea packaging materials (US$1.0 million), and fertilizer(US$7.2 million) worth a total of US$32.0 million (64% of the total valueof goods). Oualified domestic manufacturers would receive a preference of15% of c.i.f. bid price or the applicable custom duties, whichever isless, in the bid evaluation. Contracts for goods valued at less thanUS$200,000 will be purchased through LCB using procedures acceptable toIDA; this will include accessory equipment for feed mills, hatcheries,breeding farms and processing plants, farm tools, small boats, and locallyavailable breeding stock, totalling US$11.2 million (22% of goods), forwhich local manufacturing and supply capacity exists. Fish meal (US$7.0million) and imported breeding stock (US$0.2 million), for which there area small number of suppliers, constitute the remaining 14% of goods andwould be procured through Limited International Bidding. Bids would bed4rectly solicited from all known suppliers, both local and foreign. Adetailed list of goods is given in Annex 8 and a procurement schedule,showing packaging and timing, is shown in Figures 4 and 5. Training andtechnical assistance requiring foreign exchange (US$0.7 million) would beprocured in accordance with the World Bank's Guidelines for the Use ofConsultants and financed by the Bank. The remaining training requirementswould be contracted for locally and financed by the Government. Theproject includes US$16.1 million of incremental working capital forspecialized households to purchase formula feed, hire labor, and acquireother inputs for one production cycle. This element of the project wouldbe handled as short-term credit.

3.24 Preparation of bid documents would be carried out by ChinaNational Machinery Import and Export Corporation (CMIEC), which hascarried out this function for previous Bank group projects. Bidinvitation and evaluation and award recommendations would be theresponsibility of the procurement agency in consultation with theprovincial authorities. An understanding was reached at negotiations thatthe agency will use a standard document acceptable to IDA for all ICBprocurement.

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Table 3.2 - PROCUREHENT PROFILE

Procurement Method TotalProject Element ICB LCB Other N.A. Cost

- - - - - - - (US$ million) - - - - - - -Works:

Civil Works 0.0 4.1 '8.7 0.0 22.8(0.0) (1.1) (6.0) (0.0) (7.1)

Buildings 0.0 13.0 15.6 0.0 28.6(0.0) (4.1) (5.0) (0.0) (9.1)

Subtotal Works 0.0 17.1 34.3 0.0 51.4(0.0) (5.2) (11.0) (0.0) (16.2)

Goods:

Equipment 12.3 8.5 0.0 0.0 20.8(11.0) (6.4) (0.0) (0.0) (17.4)

liaterials 17X4 2.7 7.2 O.C 27.3(15.3) (2.0) (6.3) (0.0) (23.6)

Vehicles 2.3 0.0 0.0 0.0 2.3(2.1) (0.0) (0.0) (0.0) (2.1)

Subtotal Goods 32.0 11.2 7.2 0.0 50.4(28.4) (8.4) (6.3) (0.0) (43.1)

Training and TechnicalAssistance: 0.0 0.0 3.8 0.0 3.8

(0.0) (0.0) (0.7) (0.0) (0.7)

Incremental Working Capital 0.0 0.0 0.0 16.1 16.1(0.0) (0.0) (0.0) (0.0) (0.0)

TOTAL 32.0 28.3 45.3 16.1 121.7(28.4) (13.6) (18.0) (0.0) (60.0)

Notes:1. Figures in parentheses are the amounts to be financed by the IDA

Credit. All amounts include contingencies.2. A prior Bank review would be required for all ICB packages (estimated

to be about 70% of total value of goods).3. Other includes farmer and village labor (Civil Works and Buildings),

LIB (Materials), and overseas training and study tours andconsultants (Training and Technical Assistance).

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3.25 In order to facilitate startup of the project, the Government hasproposed to use up to SDR 2.3 million (US$3.0 million, 5% of the credit) forretroactive financing of expenditures made after February 1, 1989, for settingup about 100 specialized households in livestock activities and for carryingout 100 ha of pond development, 50 ha of afforestation, and 50 ha of teaestablishment. These advance procurements are being done according toprocedures described above and are considered necessary in order not to losethe momentum generated by the project planning and preparation.

I. Disbursements

3.26 Disbursements for vehicles, equipment and machinery for agroprocessingand feedmill facilities, breeding stock, construction materials, laboratoryequipment, fishmeal, and fertilizer would be at 100% of the foreign exchangecosts of imported items or 100% of the ex-factory price of locally manufactureditems and 75% of local expenditures for othei items procured 1ocally.Disbursements for overseas training and study tours and consultant serviceswould be 100% of total costs. Disbursements for pond development, tearenovation, forest establishment, on-farm works, buildings and roads would beat 32% of total expenditures.

3.27 Disbursements would be made against statements of expenditure (SOFs)in the case of LCB civil works contracts, overseas training, study tours,contracts for goods and services costing less than $200,000 equivalent each,and work carried out by farmers. SOEs would be supported by progress reportsshowing physical quantities and unit prices (the latter would be updatedannually by the Project Offices and reviewed by IDA). Supporting documentationwould be retained by the Project Offices and be made available to Bank Groupsupervision missions.

3.28 In order to provide for efficient disbursement, a special accountwould be opened in US dollars in a bank acceptable to IDA with an initialdeposit of US$5.0 million which represents the average estimated four-monthexpenditures. Applications for replenishment of the special account would besubmitted monthly, or whenever the special account is drawn down to 50% of itsinitial deposit, whichever comes first.

3.29 The project is expected to be completed by June 30, 1994 and theclosing date would be December 31, 1994. The disbursement experience in Chinahas been very favorable and better than Bank-wide and regional averages. Theproject disbursement profile is in line with that for specific investment loansin China.

J. Accounts and Audits

3.30 Records of expenditures on civil works, equipment and materials, andland development would be maintained by the Project Offices (PO) in theparticipating counties and prefectures. These records would be forwarded tothe provincial PO which would prepare consolidated accounts including their ownrecords of expenditures on civil works and agroprocessing equipment. The

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provincial PO would, in turn, compile a complete report on project expendituresfor submission to IDA. Assurances were obtained at negotiations that theprovincial PO would maintain the consolidated accounts for auditing annually bythe State Audit Agency and that the audited accounts would be submitted to IDAwithin six months of the close of each financial year. The audited accountswould include details of withdrawals from the Credit account made on the basisof SOEs and the auditors' opinion as to whether such withdrawals were againstexpenditures eligible for reimbursement by IDA.

K. Environmental Impact

3.31 Since Poyang Lake is the largest freshwater lake in China, receivingthe discharge of all five major rivers in Jiangxi, the environmental aspects ofall project components have been reviewed with particular concern for theirimpact, not only on the immediate surroundings, but also on the lake. ThePoyang Lake Management Bureau, with assistance from the World Wildlife Fund andthe Asian Wetlands Bureau, is preparing a Poyang Lake Management Plan involvinga review of potential environmental impacts from lake-area developmentactivities and recommendations on measures to inaure compliance with nationalenvironmental standards. Officials from the Poyang Lake Management Bureau andPoyang Lake Migratory Bird Reserve do not believe the livestock and aquacultureactivities would unduly threaten migrant bird populations. The provincialEnvironmental Protection Bureau (EPB) would review the Poyang Lake ManagementPlan relative to possible adverse effects of project activities on waterquality and the increased risk of disease transmission to migrating birds,particularly those considered rare and endangered. On the basis of its review,EPB would develop environmental design specifications and monitoringarrangements for project activities (particularly the agroprocessing plants) toensure compliance with national and provincial environmental standards; anunderstanding to this effect was reached at negotations. The provincialgovernment's preliminary plans for measuring environmental effects of projectactivities w.<re reviewed at negotiations and found satisfactory. Anunderstanding was reached that the provincial government would submit to IDA acopy of the Poyang Lake Management Plan, when completed. An assurance wasobtained that project activities woul_ be carried out in conformance withenvironmental control standards acceptable to IDA.

3.32 The following pesticides have been proposed for financing under theproject: Decis 2.5% (France) and Meothrin (Japan), both of which areconsidered acceptable for Bank Group funding. An understanding was reached atnegotiations that the local training component for project participants in thetea and forestry components would include a program specifically designed toeducate farmers in pesticide use and proper methods of application, i.e.techniques, appropriate clothing, and equhiment.

3.33 The afforestation schemes are expected to bring environmental benefitsin the form of soil and water conservation. The tea component wculd also helpto stem erosion on hills and sloping lands. In addition, the packaging factorywould manufacture corrugated boxes to be used instead of the traditionalplywood tea chests and thus save felling of timber for that purpose.

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IV. PROJECT ORGANIZATION AND MANAGEMENT

A. Project Organiztion

4.1 The Government of Jiangxi Province would be responsible for theoverall implementation of the project. The management structure wouldreplicate that developed for the Red Soils Project (para 1.21): ProjectCoordinating Coimittees (PCCs) at the provincial, prefectural/ municipal,county, and state faro levels would be responsible for policy, planning,and int,-r-agency coordination; Project Offices (POs), reporting directly tothe PCCs, would handle the day-to-day aspects of programuing and budgeting;and provincial, prefectural, county, and state farm AgriculturalDevelopment Corporations (ADCs) would directly manage the project'sinvestments in commercial production. The organization for projectimplementation is shown in Figure 2.

B. Eaoiect Coordinating Committees and Prolect Offices

4.2 Th1e province has set up a PCC chaired by a vice governor andstaffed with senior officials from the Jiangxi Planling Commission,the Bureau of Agriculture, ABC, the Price Bureau, the Jiujiang CustomsBureau, EPB. the Women's FederaLion, and other provincial level technicaland financial agencies whose responsibilities bear on specific aspects ofthe project. The PCC would monitor overall project progress, coordinatethe roles of the various agencies represented in the project, and resolveany procedural or legal issues that might arise related to contracts,materials procurement, funding arrangements, and land use. Attached to thePCC at each level is a Provincial Technical Committee made up ofspecialists from government, the universities and research institutionshired on a consultancy basis to advise on project design and implc.mentationas requested by the POs or ADCs.

4.3 Acting as secretariat to the PCC, a Provincial PO has beenestablished staffed by a Project Director and about fifteen full-timeprofessionals, ir,cluding agronomists, fisheries and livestock specialists,a forester, accountants, and economists drawn from provincial governmentagencies. The PO would obtain PCC approvals for the annual work programand budget, coordinate materials allocation, approve disbursement of IDAand government funds by the provincial Bureau of Finance (BOF) to ADC andlocal govenrment accounts, and monitor project execution and repayment offunds by executing agencies. The PO would also compile data for progressreports submitted to the PCC and to the Bank Group, and be the liaisonpoint with the Bank. An assurance was obtained at negotiations that theprovince would maintain its PO with staffing, functions, andresponsibilities acceptable to IDA.

4.4 A PCC-PO structure similar in function to that set up at theprovincial level would be established in each prefecture/ municipality,county, and state farm participating in the project. Prefectural/municipal-level POs would establish a management information system to monitorphysical and financial progress of the project, organize counterpart funds,set up a system of inspection and approval of completed project activities,and approve disbursement of funds by the prefectural/municipal BOFs both to

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the ADCs within their jurisdiction and to the county BOFs. The county andstate farm POs would be responsible for site selection, developmentplanning, financial analysis, and coordination of the participatingtownships and villages. They would prepare preliminary site surveys anddesigns, approve construction contracts, and annual budgets. They wouldalso, with the assistance of the prefectural/municipal PO, superviseconstruction progress and approve disbursements to and coordinate loancollection from county and township farms and enterprises. Each of thelocal level POs would be staffed with about ten qualified livestock andfisheries specialists, agronomists, engineers, accountants, and economists.

C. Agricultural Develop2mnt CorRorations

4.5 The ADC concept as developed by the Red Soils Project was to createa financially autonomous business entity, with technical expertise drawnfrom government line agencies, to manage project investments in commercialproduction. This represented a departure from past practice which was todesignate existing technical bureaus as implementing agencies; it was inline with current efforts on the part of the government to shift frombudgetary to loan financing of enterprise development thereby divestingitself of the role of sole financial guarantor for the commercial sector.In 1985, the Jiangxi Provincial Government established the JiangxiAgricultural Development Corporation (JADC) as a state-owned enterprisewith a capital of Y30 million responsible for implementing the Red SoilsProject. The JADC, staffed for the most part by former personnel of theBureau of Agriculture, has a mandate for a range of development activitiesincluding implementation of the Red Soils and similar projects,introduction of foreign capital and technology through joint ventures andother forms of collaboration, marketing of inputs and products, andprovision of technical assistance to farmers. Consistent with regulationsapproved by the State Council, JADC has a charter confirming its status asa Legal entity and outlining the scope of authorized activities, sourcesand amount of capital, and borrowing powers. The charter describes themanagement structure, including provision for a board of directors andprofessional managers, and defines the relationship among the board,management, and employees. This charter was reviewed and endorsed by IDAduring project appraisal.

4.6 The JADC has a staff of 50 and is divided into fourdepartments: Administration, Technical Service, Trade, and Credit. As inthe case of the Red Soils Project, JADC would implement activities underthe proposed project through muni-ipal, county, and state farm ADCsestablished as independent financial entities with equity provided by localgovernments. JADC's role vis a vie the ADC network would be to supplyprogress reports to the provincial PO and TDA. arrange for ICB and localprocurement, furnish market information on domestic trade and exports, andorganize research, training, and consulting services. JADC's performancein carrying out these functions under the Red Soils Project has beensatisfactory; the most recent supervision report states that the project isexpected to be completed a year ahead of schedule and that progress in landdevelopment has been excellent. To improve JADC's financial management andmarketing capabilities, the proposed project includes training andconsulting services (para 3.16).

4.7 All project ADCs--8 prefectural/municipal and 32 county-level

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(including state farms)--would be registered and licensed to operate by thelocal office of the State Administration of Industry and Commerce (SAIC).In the case of the prefectural ADCs, this registration and licensing processhas already been completed. An understanding was reached at negotiationsthat county-level ADCs would not receive project funds uzLcil duly licensedby the SAIC. The ADCs at all levels would rely or. revenue earningactivities and service fees for recovery of development costs includingservicing of foreign exchange borrowings; since the ADCs would bear thefinancial risk of subloans extended for project activities at theirrespective levels, they would maintain a reserve for bad debts. Operatingguidelines, established for the Red Soils Project to supplement the moregeneral provisions in the business charters, were reviewed duringnegotiations and appropriately amended relative to their application to theproposed pro4ect (Annex 5). An understanding was reached that ADCs wouldretain sufficient spreads to cover their transaction costs, including areasonable provision for bad debts.

D. Financial Management

Terms and Cgodito2ns

4.8 In line with current budgetary practice, proceeds of the Creditapplied to the foreign exchange part.s of the project would be onlent by theMinistry of F'inance (MOF) to the Jiangxi Provincial Government at aninterest rate of 5.3% with repayment over 15 years including a five yeargrace period. The foreign exchange risk would be borne by the JiangxiGovernment. A portion of the IDA funds would be used directly by Jiangxito cover the costs of technical assistance and training. The remainingfunds would be issued by the Jiangxi BOF in the form of subloans to JADCand lower level BOFs which, in turn, would onlend to local ADCs (Fig. 3).Contracts between the ADCs and the BOFs acting in the name of the localgovernments would outline terms of lending and repayment obligations.

4.9 The ultimate borrowers, mostly specialized households and agro-processing plants, would pay interest at no less than prevailing ABC rates.These rates were positive in real terms through mid-1988, at which pointthe inflation rate began to rise to unprecedented levels, nearing 20%.This caused the entire structure of interest rates to become negative inreal terms, and resulted in a substantial drawdown in savings depositsthroughout the banking system. The Government responded with a program ofbudget cuts and credit rationing to begin the process of reducing theinflation rate. On September 1, 1988, the entire structure of interestrates on loans for industrial investments was raised from 7.91%-10.8% to9%-16.2%. The structure for agricultural loans (i.e., ABC rates) wasalmost immediately thereafter raised to similar levels; e.g., 9% for lessthan one-year terms, 9.9% for one to three years, 10.8% for three to fiveyears, and 13.32% tor over five years. On February 1, 1989, ABC rates wereagain raised, this time to a range of 11.34%-19.26%. Given the Government'sstrong commitment to reducing inflation and the substantial increases ininterest rate structures observed to date, it is expected that ABC ratesfor longer term loans will generally remain positive, and, hence, willcontinue to serve as a good guide to lending rate policy for localfinancial arrangements over the life of this and other agriculturaldevelopment projects. Thus an assurance was obtained during

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negotiations that funds for the proposed project would be onlent toborrowers and sub-borrowers at interest rates no less than ABC charges onsubloans for similar purposes with similar maturities, such rates to bereviewed with IDA from time to time in light of the cost of funds to theADCs and their financial viability, as wkll as changes in ABC's interestrates.

Cs RecoverX

4.10 Specialized households and enterprises would repay loans from ADCson schedules determined by analysis of projected cash flows for eachventure. At the discretion of the local BOFs and ADCs, local branches ofABC may handle both disbursement and collection of loan funds on behalf ofADCs for a service charge to be agreed between the parties; the currentcharge under the Red Soils Project is 0.3%. ADCs would repay themunicipalities and province, which would in turn repay MOF for use of theIDA funds according to the prescribed schedules. During negotiations, anassurance was obtained that the "float",i,e. any net cash accruals by theADCs due to differences in timing between subloan receipts and repaymentsto the Government, would be used by the ADCs only for financing developmentactivities similar to those undertaken under the project. Under presentregulations for state enterprises, the ADCs would pay taxes at normalenterprise rates, but would otherwise be allowed to retain net profits.

E. Execution o £jic!: Works

4.11 Within the framework of review and approvals by the PCCs and POsat the various levels, the county and state farm ADCs would be responsiblefor executing the project's livestock breeding, pond development, tearehabilitation, and afforestation components, including support facilities.Infrastructure improvements, including power supply and roads, would be theresponsibility of line agencies of the local governments. Construction oflarger civil works including processing facilities, AI stations, extensionstations, and breeding farms would, in large part, be contracted to localconstruction units using local competitive bidding procedures. Countygovernments would organize local farm labor to carry out earthworks forponds, canals and drains, and erection of small, common structures. Thefarmers themselves would build on-farm facilities such as sheds and pens,using designs and materials provided by the local bureaus of animalhusbandry and aquatic products. Most land development and rehabilitationactivities associated with tea production would be carried out by farmersusing their own family labor or hired labor paid the prevailing wage. Thestate forest farms would hire village labor to supplement their own laborforce in tree planting and maintenance activities. JADC would directlyimplement the overseas training and technical assistance program,coordinate design studies for the agro-processing component, and contractwith provincial engineering firms for the construction of agroprocessingfacilities. An assurance was obtained at negotiations that JADC wouldsubmit to IDA an annual budget and work program for new construction forreview by November 1 each year for the following year.

F. Management of Production

4.12 While the POs would play a central role during the projectimplementation period, particularly on the planning and budgeting side,

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after completion of construction most PO staff would return to theiroriginal agencies and only small units would be maintained to monitorrepayment from the ADCs to the various financial bureaus. The ADCs,established as permanent cor zial organizations, would be responsible foroverseeing production activities throughout the life of the project, bothfrom a financial and a technical standpoint. The project would provideworking capital for each participating farm household or enterprise tocover the first production cycle. An understanding was obtained atnegotiations that the Jiangxi Provincial Government would make availablefunds to meet reasonable working capital needs of project participants insubsequent years. Farm inputs such as fertilizers and pesticides, would beallocated by the local Supply and Marketing Cooperatives (SMCs). Seedlingswould be provided by nurseries run by the forestry bureaus, fry andfingerlings by commercial hatcheries, and breeding stock by state farms.

4.13 Production activities in livestock, aquaculture, and tea would becarried out by individual farmers or specialized households on landcontracted through long-term leases from (a) township or village economiccommittees which manage the land in the name of the collective or (b) statefarms, in which case the original landowner is the province itself. Projectforestry activities would be carried out by salaried workers who are eitherpart of the state forest farm or hired from nearby villages. Thelivestock, aquaculture, and cea farmers participating in the project wouldbe selected by local ADCs from among applicants who possess requisiteexperience and managerial skills, long-term local farm residence, andresources to contribute about 30% of on-farm development costs in the formof cash, physical assets or labor. Loan contracts between ADCs andhouseholds would specify the terms and conditions of farm development andmanagement, repayment of development costs, and charges for use of servicefacilities. In forestry, loan contracts would be made between the countyADC and the participating SFF.

4.14 Project agroprocessing facilities, most of which are county ormunicipally-owned, would be operated as commercial activities with theiroutput priced at competitive market levels. Legally, they would have thestatus of state-owned enterprises with charters registered with the StateAdministration for Industry and Commerce (SAIC) defining the scope of theiractivities, sources anL -mount of capital, borrowing powers and managementstructure. Raw materials for livestock and tea processing would be boughtdirectly by the plants from the specialized households and individualfarmers. Project output of logs and crude resin would be sold by the SFFseither through the county forestry company acting as agent or directly towood-procuring agencies such as mines and construction companies. Feedmills would import some raw materials from other provinces and procureothers locally (para 2.17).

G. Monitoring. Evaluation and Reporting

4.15 The POs in conjunction with the ADCs would monitor projectprogress and evaluate the project's economic benefits and overall impact.Each local ADC (prefectural/municipal and county) would compile and submitto its counterpart PO information on the following: progress inestablishment of production activities, yields and production levels,marketing channels and prices, training, contract -erms and conditions, andincomes of project beneficiaries. An assurance was obtained at

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negotiations that ADCs would maintain a sample survey of farm householdsfor purposes of monitorLng farm budgets and family incomes. The local POswould subuit this information to the provincial PO which would use lt inpreparing a semi-annual progress report for submission to the PCC and tothe Bank Group. Reporting on financial progress would include informationon actual and cumulative expenditures using a format similar to thedetailed cost estimates (Arnex 2). Monitoring and evaluation methodologywould be one of the main topics of discussion at a project launch workshopto be held for the benefit of PO und ADC staff at the outset of projectimplementation. Additional topics to be covered at the workshop would beprocurement and disbursement procedures and project financial management.

4.16 Not later than six months following completion of Creditdisbursements, the provincial PO would prepare for submission to the BankGroup a Project Completion Report (PCR) in which project results would becompared with appraisal estimates. The PCR would describe changes inproduction technology, changes in prices in real terms, changes in earningsand incomes of project farmers, changes in permanent employment resultingfrom the project, and related cost recovery issues. The economic andfinancial rates of return would be recalculated on the basis of actualcosts and re-estimated benefits.

V. PRODUCTION

5.1 Annual incremental production of pigs under the project wouldamount to some 272,000 lean meat pigs from SHs and farms and another 28,000raised in association with aquaculture activities. Specialized householdsraising aquatic poultry would produce annually some 8.9 million ducks, 3.1million geese and 16,600 t of duck eggs; another 9,100 t of duck eggs woluld beproduced by farmers whose main activity would be fish farming. About19,000 t of fish would be produced each year in new and improved ponds,barriers, enclosures and cages. In addition, about 2 t of pearls would beproduced. Annual incremental production of refined tea would amount toabout 5,300 t. Over the 20 year life of the project, the forestrycomponent would produce some 59,000 m3 of pulpwood, 579,000 m3 of logs andpoles, and 88,000 t of resin. Production is shown in Table 5.1.

A. Livestock

5.2 Two breeding programs are planned for the project. The firstfeatures a three-way cross between the Guanchao, a local breed that ishardy and fertile, but with a 40% lean meat content, and the imported

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Duroc and Landrace breeds to produce a pig with the hardiness andfertility of the local breed and the meat quality and low feed consumptionof the imported breeds. The program starts with a cross between the localGuanchao sow and a Landrace boar, then the first generation sow (Fl) isbred with a Duroc boar; their progeny (F2), with 25% genetic material ofthe local breed, would be commercial pigs with a 55% lean meat content.The second program features pure strains of Landrace and Duroc, with theresulting Fl progeny as the comercial pig. The second program has theadvantage of producing a pig which has a lower feed conversion ratio(2.75-3.0:1 instead of 3.0-3.25:1) and a higher percentage of lean meat(60% instead of 55%); however, the animal tends to be less hardy an4 verysensitive to the quality of raw materials used in the feed. The three-waycross would be used on the project's three breeding farms anti the two-waycross on the provincial production farm.

5.3 SHs would purchase sows of 70 kg just before the first estrus.It is expected that each sow would farrow twice a year, with an averagelitter size of 8.5. With a 10% mortality iate, it is conservativelyestimated that each sow would produce an average of 15 piglets per year toweaning stage. With improvement management and breeding, it should bepossible to further increase this to 18-19 piglets/sow/year. The pigletswould be raised for about six months to market weight of 95-100 kg andsold for slaughter. The following feed consumption has been estimated:sows - 1,100 kg/yr, boars - 1,460 kg/yr, piglets before weaning - 10 kg,and fattening pigs - 300 kg. About 25% of the sows would be replaced eachyear. At full development in year 4, about 272,000 commercial pigs, withlean meat proportions of 55-60%, wc'tid be produced.

Poultry

5.4 About 23 breeding farms would be established to provide day-oldducklings and goslings to the SHs to raise for egg or meat production.Each breeding farm would start with 4,400 layers. Assuming a 10%mortality and rejection rate, the 4,000 survivors would each produce 160eggs/yr. These eggs would be used as follows: 125 for hatching and 35for sale (generally small eggs <55 gm produced during the early layingperiod). For the 125 eggs, it is assumed that 100 would hatch. Estimatedformula feed requirements for the breeders is based on 75 gm/day duringthe 120-day rearing period (9 kg) and 150 gm/day during the 360-day layingperiod (54 kg).

5.5 At the household level, egg duck raising is based on a 120-dayrearing period and a 365-day laying period. Feed requirements are basedon the same assumptions as for the breeders (para 5.4). The local eggduck is a very productive breed, producing about 250 eggs (average weight68 gm) or a total of 17 kg. In order to provide a steady income fromsaleof eggs, the second (and subsequewt) batches of ducks would be startedbefore disposal of the first batch. Ma ducks are raised for 105 days,reaching a weight of 1.75 kg. Ducklings are fed formula feed for threeweeks, then a mixture of 50% formula feed and 50% paddy for a total feedconsumption of 5.25 kg/duck. The local Ma ducks are used in manytraditional dishes in Jiangxi or can be processed into pressed, saltedduck. For the latter use, the processing plants further feed them forthree to four weeks. Even though the Ma duck is the most common, farmers

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TABU 5.1 - IwcNETAL PROSUCTION

Scal ef activity -- l---dYield---- ----------- __- -- relf-Present Fuure (he of Plesmnt Fture Unit Unit Preset Fuere tnrnerml

s)

logs - Model 1 (12 oe) S00 160 pis/ pi 54,000 ,8 curltI cull so"o

Pigs -Model 2 (4 seg ) 8478 ON *0 P8 1S4 I 20e0" 20601 cli/ eulI - 8,47` a*

Pigs - Production Farm 1 FARM 0000 o I,S/o o rIg 000 0,1,000 ebr/t- brr 1,000 1,

Prefecturcl reoedig Farm 2 FArm 1,040 breeder/fm breeders 2,000 2,720 piglets/fm piglot 1,440 1,

Jian Breeding Form 1 FARM 1000 pigs/9t pls 1,000 1,2800 brer/tm breedre 2,800 2,180 pigle41/im pigloe 1,60O 1,.

Plg w/Aqueaultur -Nie ponds O68 SH 80 pIgo/IH pigs 19,140 19,1__(2 sows) 0.5 culle/Ill eVul see 810 810

Pigs w/Aqusculture-Imp ponds 22 SH 80 pige/3H pigs 6,460 6,400(2 sews) 0.5 eVlls/Il cull coll 141 i41

Aquctic PoultryMa ducks 1,970 SH 8,000 ducks/SN ducks 6,010,000 *,910,---Fine-eost ducks 9906 SH ,000 ducks/SH ducks 2,906,000 2,866,Egg ducks 079 SH 1,000 ducks/SH 9egs (kg) 16,648,000 16,648,

cull ducks 979,000 979,Egg ducks/Aquaculturo-New ponds 266 SH 1,000 ducks/SH eg (kg) 4,522,000 4,522,

cull ducks 266,000 206,Egg ducks/Aquaculture-_mp ponds 268 SH 1,000 ducks/SH egg (kg) 4,556,000 4,556,

cull ducks 268,000 268,Geese 6196 SH 600 goese/SN gmess 8,116,600 8,116,..

down (kg) 216,810 210,816-lackbone ChickenComercial chickeno I FARM 40,000 chickens/fm chickens 40,000 40,000Day-old chicks 848,000 chicks/fm day-old chicks 846,000 846,000

AquacultureN e poed 1,167 ha 7.5 tons/ha ton 8,758 8,758Improved ponds 066 7 1,069 ha 1.725 6.75 tons/ha ton 1,160 7,216 6,0o6Fish barriers 1000 ha 0.75 tons/ha ton 750 760Fish enclosures 276 ha 7.6 tons/ha ton 2,070 2,070Fish coae 8.07 ha 150 tons/ha ton 461 461

Pearls 200 ha 0.011 tons/ha ton 2 2

TeaFresh leaf 4,607 4,607 ha 1.5 6 t/he t 7,211 26,642 21,682Refined leaf t 1,759 7,086 5,276

Forestry

Pulpwood- yr 10 thinning 6,706 ha 6.9 Ms/he .8 69,490 69,490Poles A logo - yr 20 -felling 6,705 ha 56.8 mI/ha .3 578,900 676,900Resin - yrc Sand 9 6,706 ha 1.1 t/he kg 7,189 7,180Resin - yro 14-20 6,705 ha 12.0 t/hr kg 60,406 80,406

----------------------------------------------------------- _---__------------__--------------------------------------------

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are beginning to start production of a larae meat duck based oncross-breeds using imported Cherry Valley stock. The fine meat duck ismore sensitive to feed quality and would suffer from a grass and paddydiet, should formula feed not be available. The ducks are raised for 70days to a slaughter weight of 3 kg. Feed consumption is assumed to beformula feed at the rate of 9 kg/duck during this period. Geese would beraised using the present extensive system--exploiting grassy areas alongchannels, ponds and marshes. Goslings are kept in runs and fed formulafeed for the first month. After this they are driven to grass and fed onformula feed and paddy. Feed consumption is calculated to be 9 kg. At120 days the geese reas.;n 3.5 kg and are sold for slaughter.

5.6 Some 9,150 SHs would be involved in aquatic poultry production.The proposed models are based on households annually raising 1000 eggducks each year, three batches of 1000 Ma ducks or meat ducks, and threebatches of 200 geese. Annual project production at full development inyear 4 is expected to be 5.9 million Ma ducks, 3.0 million fine meatducks, 3.1 million geese and 26,500 t of duck eggs. In addition, some 1.0million egg ducks would be sold for meat after the one-year egg productionperiod.

5.7 A hatchery and production farm would be established for blackbone chicken, a specialty item in the province used for medicine and winemaking. The breeding farm would have 6,000 females and 600 males forproduction of 348,000 day-old chicks for local farmers and 40,000commercial chickens for slaughter. Feed consumption is estimated to be 10kg/bird during the rearing period and 30 kg/bird during egg production.

B. Aauaculture

5.8 Fish farming would be practiced using a polyculture of Chinesecarps, involving generally six species. These species, having differentfeeding habits and occupying different or only partially overlappingecological niches, can utilize very efficiently the natural productivityof the ponds. The species include: silver carp (Hyoo0hthalmichthysmolotrix, a phytoplankton feeder; bighead carp (Aristichthus nobilis), azooplankton feeder; the grass carp (Ctenonharvngodon idella) and theWuchang bream (Megalobrama amblyoce2hala), which consume higher plants andartificial feeds, and the group of common and crucian carps (Cyprinuscargio and Carasius sp.) which are bottom feeders and can also takecompounded feeds. Of these species, to which occasionally others can beadded, the silver and bighead carp are the ones benefitting more from pondfertilization programs which enhance plankton biomass. However, they donot take compounded feeds and as the production levels are raised, theirproportion in the stocked biomass decreases.

5.9 Fish culture management in new ponds would aim at producing 7.5t/ha at full development in year 4 but would start at 3 t/ha in order toset easier targets for specialized households. The initial stockingproportion would be done with 50-gm wintered fingerlings (450 kg/ha)stocked in both nursery and production ponds as soon as they are ready inFebruary/March. Fry would be bought in June and distributed again to thetwo ponds (10 kg for the 1 ha pond and 0.8 kg for the 0.2 ha nurserypond). The expected survival from 0.5 g fry to fingerling is 70%. At theend of the first year, the ponds would be harvested, the market sized fish

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sold, and fingerling and undersized fish transferred to the small pond.The larger pond would be disinfected and treated, after which all fishwould be transferred to the larger pond for disinfection and treatment ofthe nursery pond. For the second year, only fry would be purchased asstocking material, again in both ponds; it has been shown that amulti-size stocking structure allows a better use of the naturalproductivity of the pond. To support fish growth, livestock manut'e(mainly for the silver and bighead carp), fodder (for the grass carp andWuchang bream) and compound feeds would be used. For disease prevention,in addition to pond disinfection, grass carp fingerlings are individuallyvaccinated against reoviruses. On some farms, fish production would beintegrated with livestock raising to enhance plankton productivity andreduce feed requirements. The management plan for improved ponds issimilar, except that yield at full development would be 6.75 t/ha insteadof 7.5 t/ha.

5.10 The fish barrier component would rely on fencing off protectedbays in lakes and stocking the enclosed area with fingerlings whichbasically utilize the natural productivity of the lake. It is, therefore,an extensive culture system. Fish production would start with 525 kg/hain the second year and reach full development yields of 750 kg/ha in yearfive. Stocking composition would be 75% silver, bighead and grass carp,to have a maximum utilization of the lake's natural. productivity, and 25%common and crucian carp, which could also be fed compound feeds. Fishenclosures would be intensively farmed with no livestock integration.Production would be based predominantly on feed consuming species, with astocking structure of 10% silver and bighead carp, 40% grass carp andWuchang bream, and 50% common and crucian carp. Expected yields would be9 t/ha at full development in year 4. Fish cage production would be basedon grass carp fed with compound feeds at a conversion rate of 2.5:1.Yields are expected to increase from 11.2 kg/m2 in year 1 to 15 kg/m2 inyear 4. The input/output ratio of fingerlings/market size fish isestimated at 1:10.

5.11 Freshwater pearl production would use three species of freshwatermussels currently available in the project area: Hyriopsis cumini,Cristaria plicata and Anodonta woodiana. Farming would involve artificialseed production, nursing to 10 cm size, and implantation of about 30pieces of mantel of a donor mussel, after which the mussels are kept insuspended nets in lake waters for three years. Stocking density would be10,800 mussels/ha, of which two-thirds are implanted and one-third wouldbe used to provide mantle tissue. It takes about 240 mussels (plus 80donors) to produce 1 kg of freshwater pearls. The householdresponsibility system would not be applied to this production activity;workers would be hired to take care of about 1 ha of water surface.

C. Forestry

5.12 Slash pine (P. elliottii) has been selected for afforestation ofthe project areas on account of its suitability to climate and soils,availability of good seed, its multipurpose production, proven technology,and its quick growth. Seedlings, germinated in existing Forest Bureaunurseries and raised to 30 cm, would be planted at a spacing of 2 x 3 m(1,650 trees/ha with a 90% survival rate, final density would be 1500trees/ha) during the first quarter of the year. Urea would be applied as

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a top dressing in year 3. A circle around each tree would be weeded andscarified once in years 1 and 4 and twice in years 2 and 3. Thinning outof about 40% of the trees in year 10 would produce about 25 m3/ha ofpulpwood and final clearing in year 20 would produce about 225m3/ha of logs and poles. Trees selected for thinning (about 450 trees/ha)would be tapped in years 8 and 9 with average annual resin yields of 2kg/tree or 900 kg/ha. Remaining trees would be tapped from year 14 - 20with average annual yields of 3.5 kg/tree or 3,675 kg/ha.

D. I"

5.13 The present low yield of tea in the project area is the result ofpoor plant development, as evidenced by small spindly bushes, which hasbeen brought on by insufficient organic matter in the soil, la-k offertilizer, and inadequate management. A two-year renovation programunder the project would involve, in the first year, pollarding (severepruning) of the main branch to + 40 cm, application of 3 t/ha organicfertilizer in a 50 cm ditch at the plant base, and a top dressing of 1.5t/ha of Urea and 0.75 t/ha of compound fertilizer. In the second year,selective trimming and weeding would be carried out and compoundfertilizer at the rate of 0.75 t/ha applied. The renovation process hasbeen shown to stimulate crown development and expand the plant to agroundcovering situation. Generally, tea is planted at a spacing of 30 cmbetween hills and 1.5 m between rows (about 200,000 plants/ha).Harvesting of fresh leaf would take place from March through September--about 16 times throughout the season, after which the residual leavesare considered undesirable because they are tough and have a high tannincontent. Spring harvesting would begin with the picking of the first budand two adjacent leaves, which are the most tender leaves in the plant.Because of the removal of the top leaf, the so-called "terminal dominance"is removed and the auxillary bud growth is stimulated which induces thesecondary, tertiary, etc. bud growth from the top to the bottom of theplant. Each harvest, therefore, includes only one bud and two adjacentleaves. Yields of fresh leaf are expected to increase from the presentlevel of 1.5 t/ha to 6 t/ha in the sixth year after renovation.

VI. MARKETS AND PRICES

A. Market Prospects

Overview

6.1 Market prospects are excellent for the project's incrementaloutput of pigs, poultry, eggs, fish, tea, and timber. Domestic demand forthese commodities has risen markedly over the past decade in response togrowth in rural and urban incomes. Expected income gains of 6% annually(in real terms) from 1988 to 1992 will result in continued rapid growth indemand for livestock products and fish as consumers seek a more varieddiet, less dependent on direct consumption of cereals and tubers. MOAprojections for 1992 show China's annual consumption of meat (red meat andpoultry) increasing from the 1988 figure of 21.2 kg per capita to 22.9 kg,eggs from 5.9 to 7.4 kg, and fish from 9.5 to 10.3 kg. Pork will continueto dominate Chinese meat intake, accounting for over 80% of totalconsumption. However, poultry meat is expected to increase its share fromthe present 8% to 12% by 1992 or, in per capita terms, from 1.7 to 2.7 kg.

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Annual tea consumption in China currently averages about 0.3 kg per capita,far behind Hong Kong (1.7 kg), Japan (0.9) and Taiwan (0.6). China'sconsumption is projected to increase to r 5 kg per capita by the year 2000.Although most project production, including tea, would be consumed indomestic markets, about 25% in Jiangxi itself, the export potential isstrong. China currently exports all products produced by the project,except logs and pulpwood which are imported in large quantities. Nationaland Jiangxi trade figures for project output are given in Annex 6, Tables 1and 2.

Trends in Productio and Trade

6.2 Xi= and Fork- While small relative to total production (para.1.6), China's exports of live pigs and pork are an important element inChina's overall trade picture, accounting for US$375 million in 1987 orabout 1% of total exports. Figures for January-June 1988 show volumes upbv more than 10% over the first half of 1987. The bulk of pig and porkexports go to markets in Hong Kong- in 1987 Hong Kong traders bought morethan 3 million .ive, lear meat pigs from China.

6.3 In Jiangxi, pig slaughter and inventories grew at a steady 5% p.a.over the period 1981-87 to reach 1987 record highs of 10.7 million and 13.9million head respectively. Lean meat pigs accounted for a higher-than-national 33% of total inventories. Nearly 90% of total slaughtered pigs orabout 9.5 million were consumed in Jiangxi itself. Another million, 70%live, 30% frozen carcasses, were sold to Shanghai, Guangdong, and Fujian.Exports of live pigs to Hong Kong, running at about 200,000 head 1984-86,dropped by nearly 8% in 1987 to 187,000, primarily because of competingdemands from domestic consumers for the scarcer lean meat varieties.Domestic sales opportunities for the 300,000 lean meat pigs producedannually by the project are expected to be excellent in view of rapidlyrising consumer demand for lean over fat pork. Export prospects shouldcontinue strong with steady demand from Hong Kong and increasing sales tothe Soviet Union. About half of project output would be expected to be usedto fulfill export quotas, the other half consumed domestically, either inJiangxi (about 25%) or in nearby provinces. A relatively small portion oftotal output--less than 10%--would be frozen. There is still a clearpreference for fresh over frozen meat, though the market potential forfrozen pork is expected to expand.

6.4 Poultry. ES and Down Products. While poultry exports have not keptpace with rapidly rising production trends (para. 1.7), China continues tobe a net exporter of live, fresh, and frozen birds. About 41 million livebirds and 17,000 t of fresh and frozen meat (mostly chicken) were exportedin 1987, mainly to Hong Kong and Japan. Hong Kong and other Asian countriesalso bought over one billion fresh eggs from China. China's production andexports of down and down products continues to rise. About 19,500 t offeathers were exported in 1987 with an export value of US$93 million.

6.5 Jiangxi's year-end poultry inventory reached 72 million birds in1987, up 2% over the previous year, poultry meat output stood at 57,600 tor a 19% rise, and egg production held steady at 129,000 t. Almost all ofthe poultry meat and eggs are consumed in Jiangxi itself. Exports of livepoultry stood at 130,000 birds in 1987 with another 110,000 sold to otherprovinces. Judging from market trends for poultry nationwide, prospects

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appear strong for profitable sale of project output of 9 million meatducks, 25,000 t of duck eggs, and 3 million geese. Projections call forhalf of total output to be consimed in Jiangxi, 30% sold to otherprovinces, and 20% exported, primarily to Hong Kong. About half ofproject duck output would be sold in frozen form; though new to Jiangxi,frozen ducks, whole and in parts, have found ready acceptance in otherparts of China. Specialty products produced by the project--Taihe blackbone chicken and pressed salted duck--have already found a firm marketniche in Macao, Hong Kong, and Thailand and demand is expected to continuestrong. Some 897 t of pressed salted duck were sold in Asian markets in1987, a 20% increase over the previous year. Exports of down and downproducts are also expected to continue the present rising trend.

6.6 Aguatic Products. This has been a fast-growing sector, in terms ofboth production and export trade. As shown in Annex 6, Table 1, China'sexports of all aquatic products reached 218,000 t in 1987, up 31% overthe previous year. Export value was US$702 million, a 47% increase over1986 and nearly double the earnings from live pig and pork exports.Figures for the first half of 1988 show export volumes for aquatic productsup 8.5% over the same period in 1987.

6.7 Jiangxi's aquatic products output--mostly fish and mostly fromponds--expanded on average 17% p.a. between 1981 and 1987. Total 1987output was 225,900 t, almost all of it consumed within the province. Withcurrent consumption levels in Jiangxi of only 6.4 kg per capita, projectincremental output of about 18,000 t should find ready markets. The bulk ofproject output would be consumed fresh in the five producing counties andthree state farms. A small portion--about 5%--would be sent by refrigeratedtruck for sale in northern Jiangxi. Jiangxi currently produces nearly 2 tof freshwater pearls, half of which are absorbed in Jiangxi for use inmedicines and cosmetics, the other half sold outside the province. Projectoutput of an additional 2 t of pearls would be exported; this representsonly 2% of China's total exports of freshwater pearls.

6.8 Tea. China's total tea output increased by about 27% over the lastdecade reaching 508,000 t in 1987, with about 35% exported. Domesticdemand for tea is expected to increase from the present 0.3 kg per capitato 0.5 by the year 2000 matching consumption patterns in other Asiancountries. Jiangxi's tea output which grew at nearly 8% p.a. between 1981-87 is still a small 17,000 t or only 4% of national output. Black teaaccounted for 20% or 3,400 t, two-thirds of which were consumed within theprovince. The tea produced in the project is a specialty tea which has itsown processing technique and unique flavor and does not compete in theinternational market for black tea. The project's incremental output of5,200 t would sell primarily in Jiangxi and other provinces (90%) with theremainder exported to Eastern Europe.

6.9 Logfs, Pulp, and Rosin. China imports large quantities of logs andpulpwood. The 1987 import value of these goods was US$899 million,accounting for 2% of all imports. Customs data show 1988 log importsrunning at twice 1987 levels. Imports of both logs and pulpwood areexpected to continue at high levels as demands from the fast-growingconstruction and paper industries deplete China's scarce supplies. TheGovernment projects a shortfall of 4-8 billion m3 of timber reserves by theend of the century.

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6.10 Jiangxi's total log output, which peaked at 3.0 million m3 in1980, declined to 2.9 million m3 in 1986 as a result of stricter controlson felling and extraction, and again to 2.5 million m3 in 1987. Jiangxicurrently sells logs to other provinces; about 1.7 million m3 or 70% oftotal production entered interprovincial trade in 1987. Pulpwoodproduction in 1987 amounted to 261,000 t, all of which was used to supplyJiangxi's paper industry. Project output of 579,000 m3 of logs and 59,000m3 of pulpwood represents a substantial expansion (about 20%) over currentlevels. Given China's severe wood shortage and rising import burden,domestic sales opportunities for project logs and pulpwood will beexcellent.

6.11 Jiangxi's 1986 output of gum rosin was 30,300 t or 10% of China'stotal. Jiangxi ranked fourth after m.jor producers Guangdong (35%),Guangxi (28%), and Fujian (19%). While both Guangdong and Guangxi scoredbig gains between 1986 and 1987, Fujian and Jiangxi showed slower rates ofgrowth. Preliminary figures for 1987 show Jiangxi's rosin output at 35,000t with about 5,000 t used in the province, 17,000 sold outside Jiangxi, and13,000 exported abroad. Of the small output from the project's resirprocessing plant--3,000 t of rosin and 750 t of turpentine--, about 40%would be exported and 60% used domestically, 10% in Jiangxi itself.Domestic demand is rising rapidly accompanying expansion of the soap,paper, and paint manufacturing industries. World demand is expected torise slightly over the long term in view of declining production on thepart of major producers, including the U.S., who can no longer bear risinglabor costs in this labor-intensive industry.

B. PricesOverview

6.12 China's agricultural price policy over the past decade hisfocussed on: 1) adjusting--mostly upward--procurement prices of goodsmarketed through the state-run system, and 2) reducing the volume andnumber of goods subject to state monopoly purchase. At the same time aslifting price controls, the Government has encouraged a more open marketingsystem by easing restrictions on private interprovincial trade andsanctioning establishment of free markets, both retail and wholesale. Thesum cotal of these measures has been creation of a more diverse andcompetitive commercial environment: free market trade (the bulk of whichis in agricultural products) during the ten years 1978-87 increased from12.5 billion to 115.8 billion yuan, or from 8% of total retail sales to20%. The prices producers received for grain, vegetables, fruit, meat andaquatic products more than doubled over this period. Consumers, both ruraland urban, also benefitted from the wider availability and higher qualityof farm products.

6.13 This success notwithstanding, price liberalization is associatedwith the emergence of several disturbing economic trends: risinginflation, sharp supply and price fluctuations, mounting state expenditureson consumer food subsidies, and growing inefficiency in the allocation andsale of farm inputs. The Government's response has been to reaffirm itscommitment to achieving a more market-oriented economy over the long termwhile reverting to administrative controls and various price bonus programsas interim measures. In late 1988 it was announced that further pricereforms would be deferred until 1990, sale of chemical fertilizers and

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other farm inputs must be handled exclusively through state agencies, andprivate interprovincial trade in grain and vegetable oil would beprohibited.

Output Price

6.14 At the farm gate level, most products produced by the projectwould be sold at market prices eitheL through private trade or to stateagencies. Fish and poultry would be sold exclusively at market prices. Inthe case of pigs, pork, and timber, a portion of project output- -15-20%--from state enterprises (state farms, SFFs) would be subject to stateprocurement at contract (in fulfillment of previously-agreed quotas) ornegotiated (above-contract sales) prices. Negotiated prices generallyfollow supply and demand trends and are close to, but do not exceed, localmarket prices. Free market and state procurement prices for most projectcommodities have risen steadily over the past five years. The stateprocurement price for live pigs was increased by about 50% in May 1988 tostimulate lagging production. Official retail price levels in 1988 were up37% for meat, poultry and eggs, and 31% for aquatic products over theprevious year. Annex 6 compares state and free market prices with averageunit export and import values for selected project outputs.

6.15 On both the procurement and retail side, pigs, pork, timber, andtea are subject to some degree of state control through the system ofguidance pricing. Guidance prices for these products are determined at theprovincial or local level by price bureaus acting in conjunction with thevarious line agencies concerned. In Jiangxi, for example, state guidanceprices for pigs, pork, and tea are set by the Price and Commercial Bureaus,and timber prices are set by the Price Bureau in consultation with theBureau of Forestry. Prices on inputs are decided by the Price Bureau andlocal Supply and Marketing Cooperatives (SMCs). The guidance priceconsists of a base or floor price and a fixed range within which buyers andsellers may negotiate. The base price is periodically adjusted inaccordance with three variables: 1) current costs of production, 2)current supply and demand conditions, and 3) local policy on nutritionalrequirements. Guidance pricing, while not always adhered to, allows thestate some leverage in determining the level and direction of marketprices. Pork pricing has an additional dimension of state intervention onthe marketing side: as a municipal subsidy item, pork continues to be soldat state stores at low prices to registered urban consumers.

Input Prices

6.16 Farm inputs, which are mostly distributed through the state-rundistribution system, continue to be underpriced in the project area andthroughout China. For example, prices of urea understate the cost ofimported fertilizer by an estimated 30%. The state uses its near completemonopoly of high quality fertilizer and other inputs to influence marketingrates--farmers agreeing to sell pigs to the state are eligible to buy grain,fertilizer, diesel fuel, and compound feed at low state-fixed prices.Although moves have been made in the past few years to reduce inputssubsidies, further progress is expected to be deferred until decisions aremade regarding the direction and sequencing of future market and pricereform.

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C. Marketing ChannelsDomestic

6.17 State Agencies. State marketing of agricultural commodities isdominated by government bureaus and associated parastatals which operateunder the administrative umbrella of the Ministry of Commerce (MOC). ThisHOC network consists of three subsystems: 1) coomercial bureaus whichmanage a complex of state food companies responsible for bulk procurementand state food markets handling retail sales at administered prices; 2)grain bureaus which control purchase and processing of food and feed grain;and 3) the National Inputs Corporation and SMCs responsible for inpLtsupply (except for feed grain) and purchase of farm products at thegrassroots level. These MOC-administered agencies handle procurement,processing, transport, storage and domestic sales of almost all majorproducts, Including pigs, poultry, and tea. At the same time, enterprisesestablished by other central ministries are increasingly playing a role inmarketing. In the livestock sector, MOA's General Corporation for AnimalHusbandry, Industry and Trade and its subordinate companies have moved frompure production functions into marketing as have the fisheries corporationsunder MOA's Bureau of Aquatic Products. Marketing of forestry prcducts ishandled by forest ir.dustry companies under the MFO and its subordinatebureaus. To make the picture even more complex, a number of new marketingentities have sprung up in recent years--state-collective joint ventures,rural marketing/service cooperatives, rural procurement and sales agents--all of which are classified under state commerce for statistical purposes.

6.18 Private. Private marketing or "free" market trading has becomeincreasingly important over the last decade in response to pricederegulation and the lifting of restrictions on long-distance trade.Nationally, the number of free markets doubled during the period 1978-88 andthe value of farm products sold in these markets increased more than sixfold. Jiangxi had a total of 2,350 urban and rural markets in 1987, doublethe number in 1978. Altogether they accounted for 27% of total sales toconsumers.

6.19 Most of Jiangxi's 300 urban agricultural markets are medium-sized,permanent retail markets selling a range of products, principally meat,poultry, fish, vegetables and fruit. Typically, goods are brought in dailyfrom nearby counties by the producer/vendors themselves in mini-trucks orthree-wheel pedal carts. The 100 or so stalls per market are leased on adaily or long-term basis at rates which cover the costs of utilitiesprovided by the city. Typical markets sell between Y7-10 million of goodsannually. Most of these urban markets have been established within the lastfour years with funding (Y75 million thus far) from the Provincial Industryand Commerce Bureau (under the SAIC) which also supervises daily marketoperations using a corps of uniformed inspectors. In addition to theseneighborhood markets, Nanchang and a few other major cities in the provincehave established city-wide retail markets where the daily trade volume isaround Y50,000 and goods are sold by both private producers and statecommercial outlets. City wholesale markets, some private, some state-run,have also appeared in recent years, primarily to aggregate goods for saleoutside the province and distribute imports.

6.20 Rural Jiangxi has a growing number of retail and wholesale markets--about 2,000 in 1987--, some of them multi-purpose, others specializing in

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particular product lines. With the increasing scale of householdproduction, farmers themselves are becoming less involved in marketing butare relying on a growing number of intermediaries specializing in suchfunctions as transport, processing, wholesaling or retailing. These isevidence in Jiangxi as elsewhere in China of markets developing long-rangeand widespread geographical links which go beyond administrative boundaries.Recent measures taken by Jiangxi, Fujian and Guangdong to removeinterprovincial barriers to agricultural trade is a step in this direction.

6.21 Domestic Sales g Proiect Output. Project producers would have anarray of options in marketing their output. They might sell through thestate system--to the buying stations operated by the state food companies,for example--, directly to the state or private catering trade, or to urbanand rural markets. It would be expected that, as at present, about 60% ofdomestic sales of pigs and pork would be handled through the buying station-state slaughterhouse-food company-state food market route which is part ofthe HOC (Jiangxi Bureau of Commerce) system. About 80% of project frozenduck would be sold through these channels. The remaining project pigs, porkand duck would be sold to private slaughterhouses, restaurants, and smuallmarkets. Almost all eggs and fish would enter free market trade directly.Tea for domestic use would be sold by producers to the Jiangxi TeaCorporation, an MOC-affiliate. Project output of logs and pulp would bemarketed by thAe SFFs either through the county BFO's forestry companyacting as agent or directly to wood-procuring enterprises such as mines orconstruction companies.

Export Channels

6.22 China's external trade is monopolized by a limited number of state-owned foreign trade corporations (FTCs) which function under the authorityof the Ministry of Foreign Economic Relations and Trade (MOFERT) and itsprovincial-level foreign trade bureaus. Until recently, national-level FTCssuch as the Cereals, Oils and Foodstuffs Import and Export Corporation(CEROILS) supported by its own hierarchy of city offices and provincialbranches, conducted all trading activities directly, from the identificationof markets and negotiation of contracts to the procurement of goods fromproducers and shipment to buyers. In 1988, authority was given to eightprovinces, including Jiangxi, to manage export marketing directly, and toestablish more flexible trade regimes, foreign exchange allocation systemsand export/import marketing organizations. This has meant a proliferationof local agencies involved in foreign trade. In Jiangxi, some 25 provincialFTCs, organized along specialized commodity lines, are registered underJiangxi's Foreign Trade Bureau. Each, in turn, controls a number ofprefectural ard county companies, some with associated processing plants andfactories. County companies are now permitted to sign contracts withforeign firms. The major point of contact with foreign buyers is the semi-annual Canton (Guangzhou) Trade Fair. Virtually all of China's agriculturalexports are marketed through bulk contracts entered into at the CantonFairs. While foreign trade is still controlled by the state sector, therecent decentralization allows more immediate contact between producers andforeign buyers, thus facilitating quicker responses to market demand for newor better quality products.

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VII. BENEFITS, JUSTIFICATION AND RISKS

A. Production and Benefits

7.1 The major benefits of the prcject are incremental production andincreased rural incomes resulting from the improved quality, expandedscale and increased efficiency of production. At full development, annualincremental gross value of production of livestock would be Y363 million(US$97.9 million), aquatic products at Y73.2 million (US$19.7 million),and tea at Y40 million (US$10.8 million). The net present value offorestry net benefits from the forestry component (over the 20-year life)would be Y68.4 million (US$18.2 million).

B. Employment

7.2 Employment opportunities generated by the project would helpreduce underemployment among the rural labor force in and around theproject areas. The project would improve living standards and incomelevels for some 3,800 SHs raising pigs, 9,_50 SHs raising aquatic poultry,2,800 SHs raising fish, and 2,900 SHs growing tea; in addition, some 500permanent jobs would be created on the new and expanded livestock breedingfarms and 200 on the pearl farm. Another 3,100 permanent Jobs would becreated in the new and expanded pig and poultry processing facilities andfeedmills, 85 in the rosin factory and 4,400 in the tea processingplants. In addition to the 200,000 mandays of labor required each yearfor the four year planting program, forest maintenance would require about151,000 mandays of labor each year thereafter. In total, the projectwould increase incomes for some 18,650 farm families and provide about8,285 permanent jobs and 151,000 mandays, or the equivalent of 540manyears, of casual labor.

C. Financial Analysis

7.3 A financial analysis was undertaken for each of the 36 types offarms and processing plants expected to participate in the project. Mostof these activities would be newly established; exceptions are the pigbreeding farms, blackbone chicken farm, pork processing, eiderdown garmentfactory, and tea refineries which would be expansions of existingfacilities. Estimates ot cash flows for individual models were derivedfrom estimates of government staff and the mission during prcjectpreparation and appraisal. A cash flow model for a typical livestock farmis shown i Annex 4, Table 1.

7.4 The financial analysis has been conducted using March 1989 freemarket and negotiated prices of inputs and outputs, except for rawmaterials for feed mills (paddy, rice bran, soybean cake, rapeseed cake,wheat bran, etc.), for which an average of procurement and negotiatedprices have been used (Annex 4, Tables 2 and 3). In the financialanalysis of livestock and aquaculture activities carried out by Sk. thecost of family labor has been excluded; in the analysis of state-ownedfarms and processing plants and the tea rehabilitation households, hiredlabor is costed at Y6/man day, the prevailing wage in the project area.The analysis takes into account the production taxes, levied at the rateof 5% of gross value of production, a, the first five years in the caseof SHs and from the start of operatioz.. _her activities. The

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prevailing interest rates for industrial loans for working capital and fixedassets have been adopted; these annual rates are 11.34% for loans maturing inone year or less, 12.78% between one and three years, 14.4% between three andfive years, 19.24% between five and ten years, and 24% for over ten years.FRRs are shown in Table 7.1.

Table 7.1 Financial Rates of Return (FRR)

FRR FRR

Pig Production Tea4 sows, 60 pigs >50 1 ha rehabilitation 1512 sows, 180 pigs >50 Primary tea factory 17Provincial pig farm 32 Refining factory >50Pig breeding farm (120 sows) 15 Packaging factory >50Pig breeding farm (292 sows) 33

Feed processingAquatic poultry 20,000 t concentrate mill 333,000 local-type meat ducks >50 15,000 t formula mill 293,000 large meat ducks >50 5,000 t formula mill 311,000 laying ducks >50 2,000 t formula mill >50600 meat geese >50 500 t formula mill >50Black bone chicken farm 15 Animal protein plant 40

Chicken dung fertilizer 20AquacultureNew pond, 1.2 ha 38 Aquatic poultry & meat processingImproved pond, 1 ha >50 3.3 million duck plant 27Nets, cages, barriers 14->50 2 million duck plant 22Pearl culture 44 0.6 million duck plant 34

0.14 million salted duck 25Forestry Meat processing >50Plantations 24 Eiderdown >50Rosin factory 50

7.5 The financial rates of return (FRR) for livestock production carriedout by SHs is >50% in all cases. The FRR for aquaculture activities rangesfrom 44% to >50% (with the highest FRRs reflecting sunk costs of existingponds), except for fish barriers which have an FRR of 14%, indicative of theexperimental nature of this component. The tea rehabilitation and forestrycomponents have FRRs of 15% and 24%, respectively. FRRs for theagroprocessing, feed mills and breeding farms range from 15% to >50%. TheseFRRs indicate a strong incentive for project participation. Loan recoveryperiods range from one year for duck and geese SHs and five years (includingone year of grace) for pig SHs up to 10 years (including five years of grace)for aquaculture. Most other investments would be recovered in 10 years, withgrace periods of one to two years, except for forestry which would have a 20year recovery period, with ten years of grace. Analysis of the cash flow offish farms and households has been carried out to estimate the minimum

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annual contract fee which could be levied on contract households in order torecover the investment loan and operating expenses; this fee ranges fromYl,100 for fish barrier households to Y7,200 for pond operators integratingfish production with livestock raising. The financial results aresummarized in Annex 4, Tables 4 and 5.

D. Inomes

7.6 At present, the provincial average per capita income in rural areasis Y429 (US$116), compared to the national rural income of Y463 (US$125).At full development in year 2000, the per capita income of specializedhouseholds would average Yl,100 (US$300) and range between Y480 (US$130) andY4,600 (US$ 1,260). The national per capita income is expected to rise toabout Y2,000 (US$540) by the vear 2000. Thus, Lbout 85% of the projectbeneficiaries would still have lower than nationul average incomes, buthigher than the critical consumption level (CCL) of US$135. Householdincomes and enterprise profits are shown in Annex 4, Table 4.

E. Economic Analyses

7.7 An economic analysis has been carried out for the project as awhole and for each type of production activity. A total investment cost ccUS$83.2 miliion, which includes physical but excludes price contingencies,was used in the economic analysis. Investment costs associated with projectmanagement, research, training and extension (US$ 4.8 million), wereincluded even though the benefits would extend to a large number of farmersoutside the project. All economic values were converted to local currencyat the official exchange rate expected at negotiations of Y3.71 - US$1.00.The economic analysis uses an economic wage rate of Y4.0/man day. Otherprices, conversion factors, and a typical example of the ecornomic analysisare given in Annex 4, Tables 6-11.

7.8 Using these assumptions and discounting costs and benefits over 23years, the project's overall economic rate of return (ERR) is 39%, rangingfrom 21% for pig production to 72% for iivestock processing. At a discountrate of 12%, which is considered to approximate the opportunity cost ofcapital in China, the net present value of the project is Y 717 million(US$193 million). The ERRs were tested for sensitivity to cost overrunsshortfalls from project yields or prices, increases in the economic cost oflabor, and increases in operating costs. The livestock components aresensitive to production costs, namely relating to feed--either cost orquantity increases; however, it is likely that feed conversion rates will bereduced as feed quality improves under the project. Switching values (valueof the variable tested at which the NPV of the project, with benefits andcosts discounted at 12%, is reduced to zero) and NPV elasticity (thepercentage change in NPVs due to a one percent change in the key variable)were calculated. No single variable proved crucial to the economicviability of the project as a whole or any major production activity. ERRsare shown in Table 7.2.

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Table 7.2 Economic Rates of Return (ERR) and Sensitivity

Base Case -------- Sensitivi$y -------------Component ERR NPV Benefits Investment Operating Cost /a

(%) (Y m) -10% +10% +20% +10%

Pig production 22 27 9 20 19 12Poultry production 31 56 12 29 27 13Fishery production 50 135 34 45 42 39Feed processing 40 93 17 37 34 22Livestock processing 72 261 53 68 64 59Forestry 23 93 21 22 21 22Tea 23 48 17 21 19 20

Whole project 39 713 35 36 34 26

/a For pigs, poultry, fish and feed processing, the greater part ofoperating cost is for feed.

F. Risks

7.9 The project faces no unusual technical, organizational, or financialrisks. For the livestock components, the Jiangxi Animal Husbandry Bureau hasdemonstrated its capability to recruit and train specialized householdscapable of succeeding in pig and poultry production and in serving aseffective models for other farmers to emulate. There is some risk, however,that adequate supplies of formula feed would be not be available whenrequired by project farmers. To minimize this risk, agreement was reachedwith the provincial government that adequate funds would be made available toobtain raw materials domestically or abroad. Organizationally, the projectis using the Jiangxi Agricultural Development Corporation which wasestablished under the Red Soils Project; its performance in handling theearlier project has been satisfactory and it is being further strengthenedunder the proposed project.

VIII. AGREEMENTS REACHED AND RECOMMENDATION

8.1 At negotiations, assurances were obtained from the Goverrnment that:

(a) the standards and methods of afforestation of the project would besubject to consultation with the Bank Group from time to time inorder to insure consistency of objectives and approach between thisproject and the Forestry Sector Loan under preparation (para 3.12);

(b) the provincial government would ensure that sufficient funds for theprocurement of raw materials to produce feed of suitable qualitywould be available for project livestock (para 3.14 (a);

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(c) the training component would be carried out in accordance with aschedule acceptable to IDA (para 3.16);

(d) the provincial PO would maintain the consolidated accounts forauditing annually by independent auditors acceptable to IDA and thatthe audited accounts would be submitted to IDA within six months ofthe close of each financial year (para 3.30);

(e) the provincial government would ensure that project activities wouldbe carried out in conformity with national and provincialenvironmental control standards acceptable to IDA (para 3.31);

(f) the project office would be maintained with staffing, functions andresponsibilities acceptable to IDA (para 4.3)

(g) project funds would be onlent to borrowers and sub-borrowers atinterest rates no less than ABC charges on subloans for similarpurposes with similar maturities, such rates to be reviewed with IDAfrom time to time in light of the cost of the funds to the ADCs andtheir financial viability, as well as changes in ABC's interestrates (para 4.9);

(h) the "float", i.e. any net cash accruals by the ADCs due todifferences in timing between subloan receipts and repayments to theGovernment would be used by the ADCs only for financing developmentactivities similar to those undertaken under the project (para4.10);

(i) the JADC would submit to IDA an annual budget and work program fornew construction for review by November 1 each year for thefollowing year (para 4.11); and

(j) the ADCs would maintain a sample survey of farm households formonitoring of farm budgets and family incomes (para 4.15).

8.2 Understandings were reached with the provincial government atnegotiations on the followirg:

(a) the Project Office would encourage participation of farm women inproject activities and at least 25% of the trainees in the trainingprograms for specialized households would be female (para 3.15);

(b) the Project Office would furnish annually to IDA for its review andcomment a list of proposed overseas training and study tours for thecoming year with the purposes, destinations, names and titles ofparticipants and the criteria for their selection (para 3.16);

(c) CMIEC would use a standard document acceptable to IDA for all ICBprocurement (para 3.24);

(d) the provincial Environmental Protection Bureau would, on the basisof their review of the Poyang Lake Management Plan, developenvironmental design specifications and monitoring arrangements forproject activities (para 3.31);

e so 0

(e) the provincial government would submit a copy of the Poyang LakeManagement Plan, when completed, to IDA for its review (para3.31);

(f) the local training component for project participants in the teaand forestry components would include a program specificallydesigned to educate farmers in pesticide use and proper methodsof application, i.e. techniques, appropriate clothing andequipment (para 3.32);

(g) county level ADCs would not receive project funds until dulylicensed by the SAIC (para 4.7);

(h) ADCs would retain sufficient spreads to cover their transactioncosts, including a reasonable provision for bad debts (para 4.7);and

(i) the provincial government would make available funds to meetreasonable working capital needs of project participants insubsequent years (para 4.12).

8 3 State Council approval of the Development Credit Agreement wouldbe a condition of effectiveness of the Credit.

8.4 Subject to the above conditions, the proposed project wouldconstitute a suitable basis for an iDA credit of SDR 46.2 million (US$60million equivalent) on standard IDA terms with 35 years maturity. Theborrower would be the People's Republic of China.

JIMW XI AGRICaATURAL DEVEL0PPrT PNJ.CT

P.oj.ct Ar.. Stati.tic (1967)

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------- - ------…----…--------… ------- … --- … - -------- --------- … … … ……------ --(I-------.- - … … -1. Jitai alsin 3124.00 I 2662.00 j 557 00 j 521.00 j 1169.00 1 961260.00 I 566210.00 I 77560.00 153100.00 141060.00 211100.00 l76.00 42.60 6.30 0.60______ I I I I I i t I IJimon County I 46500 431.00 I 102.00 1 65.00 ; 1o2.00 1 157350 00 1 96110.00 D 9600.00 1 2630.00 2140.00 3610.00 106.00 7.40 1.60 1.10Jiohui County I 424.00 1 3 3.00 8 64.00 1 74.00 1 162.00 1 150230 00 13040.00 1 9170.00 2130.00 2270 .00 32000 62.00 60 1.00 1.JOYtnqfon Cmunty 335. 00 30.00 1 40.00 1 59.00 ; 131 00 1.31120D.00 6.00 6. 2 0 0.40 I.0Xisjis.g County 1 142.00 1 121. 00 30 1 24.00 I1 5200 1 66310 00 44360.00 1 620.00 | 104J0.00 400.00 130.00 46.00 2.20 0.J0 1.10Shuichumo County j 451.00 1 417.00 j 37.00 8 62.00 1 165.00 1 107470.00 j 55620.00 1 14140.00 1j6 6 00 IO66.00 21D0.00 ".OD I 3.0 0.15 0.66Anfu County 348.00 2 204.00 1 72 00 I 54-00 124.00 1113b O.00 j 65460. O 1110.00 16170.00 16060.00 l.40.00 67.00 6.20 0.70 0.70Tsilb County 444 00 1 39600 0 5.0 76.00 j 165.00 137690. 00 60840.00 1 6170.00 j 26690.00 1060.00 40.00 1 04.00 6.70 1." 1. aLianhua County | 211 00 1 163.00 44.00 1 40.00 8 67.00 1 5260.00 30310.00 1 4090.00 6190.00 ff63.O 740.00 1 30.00 2.20 0.10 0.70Jian Olunicipality 274.00 1 14.00 1 63.00 I 27.00 1 61.00 I 4820 00 2720.00 | 690.00 1 6470.00 I6620.00 0.00 I 2900 2.10 0.40 0.40

2. Jingd.zhn City j 1245 00 1 629.00 1 294.00 1 150.00 3 375.00 1 290370.00 175690 00 135.00 I 47090.00 6640.00 1210.00 462.00 10.30 1.60 3.40 l_-- - --- -- - - - I I I I II 3. Poyana Lak* I 6997 00 M 6002.00 | 1436.00 1 1137.00 1669.00 I 5575860.00 1609760.00 54360.00 149156000 269.00 1inU.00 1489.00 *2.00 14.66 #6.16

*nehang County j 873.00 77m.O 132.00 1 162.00 | 253.00 33716O.00D 256100.00 1770.00 1743)0.00 166l60.0 20600.00 212.00 13U40 0.00 6.90Xinjia. County l 543.00 1 478.00 1 110.00 1 93.00 1 146.00 1 187230.00 127870. CO 2760.00 1 38M.00 11630.00 61J0.00 82900 I .40 1.40 J.00Nnchan Suburb 200.00 l 176 00 43.00 34.00 1 94.00 1 7S060.00 4970000 1 2190.00 j 6470.00 I12410.00 1030.00 as 00 1.70 0.212 1.20Anyi County S 590. 0D 520.00 I 16o00 9 69.00 1 154.00 1 251000 00 142020.00 1690.00 1 320.00 7040.00 10 .00 13600 I .40 1.3 2. 70Ji.ngimn County 66 00 l 46.00 1 16.00 I 10.00 I 18.00 1 20860 00 7490.00 3100.00 1 290.00 6#0.00 100.00 6.00 | 0.40 0 04 0.#3Wini district | 291.00 1 197.00 j 61.00 36. 00 1 6.00 I 6560. 00 35240.00 I 300.00 I 33710.00 660.00 60.00 24.00 1 1 60 0.10 0W60Wgnn,an County I 302.00 1 265.00 I 66.00 1 52.00 1 61.00 113740 00 1 62160.00 l 2110.00 | 1663.00 27660.00 2640.00 55|00 S. O0 0.0 1.40Yugon County | 6W. 00 I 6500 j 134.00 109 .00 1 160.00 i 190 00 1 111170.00 ; 2300.00 1 31440.00 61140.00 12170.00 16.00 j 7.60 0.10 3.00Boy-n County 1 1064.00 1 959.00 1 206.00 1 171.00 1 2S5600 1 299490.00 1 207670.00 1 13S90.00 140J40.00 292-.00 14360.00 190.00 1 12.30 J.0 3.20Dean County I 159.00 1 122.00 j 34.00 1 21.00 1 38.00 1 5600 001 3453000 1 1770-00 720.00 3620.00 1360.00 2I.00 1|.S0 0 40 O.30Fngchn9g County I 1040.00 1 657 00 1 216.00 1 166.00 1 265 00 I 43010. 00 92900C.00 I 13600.00 1 65700.00 6770.00 lO.00 20.00 14.40 2.00 6 6'C-oon County I 661.00 I 575.00 1 145.00 ; 112.00 I 189.00 1 305550 00 19660.00 5720 00 240.00 1 60110.00 SO20.O DO 171.00 10.40 2 60 i 3 70Qinqjiung County ; 477.00 1 367.00 | 103.00 | 72 | lSO 1990600 124060.00 2660.00 60270.00 162.00 U40.00 19.00 | .W 0 S | 1Total I 11366.00 | 9267.00 I 2277.00 1606 00 3 3415.00 6160 2353660. 00 1 145600.00 1691760.00 14460.00 1260.00 2467.00 144.60 22.#6 46006_____I …… II I ……… II…---- - - - - - I I---- - -__ _ _ __ _ _ _ __ _ __ _ _ __ _ __ _ _ _ _ _ __ _ _ __I _ _ __ __II_ _ _ __ I_ __ _ _ __ _ __ _ _ _ _ _ __ _ _ _ _ _ _ __I_ __ _ _ I_ _ _ _ _ ___I_ __ _ _ _ _

oxI

CHINA

JIANOXI AUPICJLTtItAL DEVELIENT PRO.IECT

Project Ares Statistics (1967)

____ __ I-__I _ I _ I-____I__ I _ I--II Total I Total I Of Which I LandI Land ICultivated lIrrigated I Dry Land I per I I

Project I Ares I Lend I Land I I Capit I Tonship I illop IAroe I (Km2) I (OOOho) I(OOOba)I (OOOb) I (be)I I I

1. Jital Basin 19674.10 1 803.2 I 266.40 3 32.70 1 0.09 I 179 I g525 I_____ _I I I I I I I I

Jiln County I 3096.901 60.61 46.00 I 4.60 1 0.091 201 420Jishui County 1 2747.20 I 44.0 I 40.00 I 4.00) 0.10 I 24 J27Yongfrns County l 2696.10 I 36.3 32.60 l 2.70 1 0.11 2 20 I 269Xlnjlong County I 1237.40 1 21.2 1 20.60 I 0.70 1 0.15 12 1 100Shuichunn County l 3101.90 I 27.1 i 24.00 1 6.10 I 0.06 s JO I 371Anfu County I 2793.20 I 38.1 I 34.50 3.80 I 0.111 241 351 mTslhs County I 2665.40 1 68.1 l 43.20 l 6.90 I 0.11 1 25 1 '° ILianhus County I 1062.10 1 14.9 1 13.70 1 1.20 1 0.07 I 17 I 207 |Jian Municipality I 132.90 I 13.6 I 11.90 I 1.00 I 0.06 I 7 I 112

2. Jingdezhon City 5 5247.90 I 70.00 53.60 1 10.60 I 0.06 3 39 1 626…___ ____ ___ I I I I I I II

3. Poyang Lake 1 23067.60 1 571.40 1 484.80 I 259.00 1 0.06 1 266 1 amI I I I I I I I

Nsnchsng County I 1363.40 1 72.60 1 67.90 1 4.60 I 0.06 1 24 1 J23JXinjisn County 1 2337.90 l 65.60 1 47.60 1 6.00 I 0.10 I 19 I 2 INanchang Suburb I 566.10 1 9.40 1 6.60 1 2.60 1 0.03 1 12 1 134Anyi County 1 066.60 1 19.10 I 17.10 I 2.10 1 0.09 I 1i s 126Jingxin County l 1971.00 6 57.40 l 35.60 l 21.00 l 0.10 I 27 n 276Wenli distrlct 1 278.00o 3.101 2.301 0.801 0.06 71 s0Wennian County I 1135.60 1 21.40 I 19.60 1 1.90 1 0.07 1C I 199IYuosn County I 2330.60 0 47.50 I 40.90 I 6.70 I 0.07 I 29 I 429Boyang County I 4214.70 I 75.70 I 55.60 I 20.10 I 0.07 I I 547Dean County I 926.90 I 10.70 I 9.10 I 1.60 I 0.07 13 I 114Fengcheng County I 2644.70 I 87.90 I 73.70 1 14.20 I 0.0 32 514Gaoon County I 2439.80 1 .60 I 53.70 1 148.00 1 0.10 I 19 I JOIQinqjinng County 1 1266.30 1 42.70 1 34.70 1 0.00 I 0.09 1 15 I 2C4

Total l 47909.60 l 944.80 l 764.00 l 282.60 l 0.06 I U64 l 6746 1_____ -- - - - - - - - - I I I I I I I I

…I,-.----I--- … , …,I----_-------

04DA

JIANCXI ACaRICILTUT AL DVELM FDJCCT

POjeet Are Stti,ti,a (197)

… I-- - - -- - - - - - - ---- I-- - -- - -- --- -- ---… - - …I … I … I -- -- - -- -- - -- -- - -…-… - - -------- A- I ----.- I- Ofsid.

To%& I I A.of DiI i '. - I Iea-e I iI ,ue vs ic iw. -- …7 "I oI Sr_n Tte i dr o. I I_n Toa I___________ Pgt~" )SloItebr I Aejt.. I r -___ Pm.19y i -ut .1Prj ect I Area , Yild I re, I Are. I Yield Citt1. )1.-no.y I Pe P_oltry I PedrFreb | "Mt PDr' Mt iastle. sho EwA- I (O.) OOT) '0OOT) I (heO) I (Y1000) ('00O) I (' 000)0)O ) CT) (T) I mod r4.t Ti-- - -- --- - …---…-- -- -i …---- -- -- -- I…-…------1 Jta I_in-- I 4260 00 1 1lSD4 00 I S 00 1 2110 00 1 5160 00 1 4S 00 1 21 00 tl72.00 6240 ao031 22.00 1 U654.00 6618 .80 9I.6D 106.60 476.90

J.e C.o.ty 74 00 i 24 .00 | 9 00 i 260 50 i 756 00 | 64 00 i 213.00 1S 00 i D 00 i 4.00 I 1i.00 10647 0O .40 2.60D 66.s6J i.. C=ty I 6.600 I 254 .00 400 122 90 1 201.00 I 51 00 1 190 00 14S 00 700.00 1.00 I16O4I.60 10173.80 a. DM9. 0 404.60Y..qfeo Co-rty 1 52 00 17600 2 00 39.0 55.00 1 4600 16 9lCO 00 570 00 2.00 10.00 SD ai 4Q.0m0 101.2i mAOXi aj C...ty I S2 00 1270 Q 2 00 44.70 1 100 00 1 27. 00 1 00S 54500 390 00 I 4.00 80600 390:6 0 N.OD It Ohuoid,ocn Coooty 1 39 00 I 18 00 1 1 00 1 660 20 1 16 100 33 00 I 185 OD 10 00 780 00 2.00 I M.70 767. so 66.70 I '.M0 .40An.U Co.t, I 53 001 192.00 I S 00 I 149 40 1 542.00 1 62 00 13 500 64Q00 740 00 2.00 67.00 610.00 21.0 44.30 D .Q0Tai Co..tvy t 67.00 1 210600 1 9.00 1 414.2n 1 1301.O0 1 79 00 192.00 146 00 1240.00 *.00 i107.70 9411.40 6a.70 806 161O.lUL ah- C<t.Y 1 22 001 OQ90O I 1 00 1 07 70 1 467 00 1 21.00 1 79.00 4S.00 a-00 1.00 19.0 QiD 00 2T0.00) 60. 211.00Jim lXni bi-plty 1 21 00 1 72.Q0 1 2.Q01 21 40 1 75.00 1 25 00 1 0 JSOO 550 2W.00Q 2.00 S_G.OO J.0O M. 40. D .90 404.QO

2 J- n n City I 103 00 4S5.00i 7 00 6600 00 21M3000 | 54 00 1 229 00 i 211.00 - 2027.00| 400 17. W 1.00 .QO W.OD sm.o I)

3 J"Ug Lo.1

5 I 21 00 4 72 00 200 1I2101 2211001 O0 66 00 2236001 290.00 Q2.Q00 18600 6. D0 1476.60 69.640 464.00

.I ragehn Co ty j ;34 00 744 QO 5 00 217.5 1 2M.00 1 372.00 1 27.00 29.0 .0 M 176 l.90t 21 . 0 9146.00 U 9.0 D .00S. P.1..6 Lake I 90U 00 I 4437 00 I 12 00 18443.20 1 134 00 S 58 00 12S9000 1 IS6.00 7 1 .0 0 00 S 1OO 074.0D 1U20.Q0 1.10 104.40 46.60

lbnche..g S.Ao.b . I 17 00 I 108 00 1 1 00 | 47 00 I 50.00 I 17 00 I 77 00 o 4 .00 JQ00.00 | 100 . Q 14 .00 86.00 Q I 10.00 | i.Q00 .Q0Anyi C~oty I 94 00 293 00 1 4 00 1 380 00 I 301 00 I 55 00 1 296.00 1 196 00 1700 00 I 7.00 1369.00 123JO 00 i 1 .00 I 0.0 40D.00Jixnis. Co_nty I 4.00 1900) 1001 04 00 1 92000 40) 1 20.00 1 1800) 74.00 0.001 1201.00 1187.00 6.O I .so 16.00we.,) deItiet I 16 00 63.00 I 1-00 160.20 1 104.00 1 5 00 I 106.00 04.00 U4.OO 1 5.00 1 10406.00 m6. D 2431.00 92.20 471.0we .n ConSy I 35.00 1 15600 1 2 00 1009 10 1 149.00 1 20.00 1 141.00 1 102.00 5556.Q0| 2.00 I 74.00 66.O I 26.00 .Q.00 960.00Y."a. Co..ty I 75 00 292 00 I 600 I 103 90 1 712900 1 43 00 2 366.O 136 OO I600 0 0.00 I f10970.00 10069.00 I 73.00 M7.00 864.0064yuo Cmnty I= 1 00 j 540.00 1 24.00 I 628.20 1 13.000 I 76 00 1 400.00 22'900D 1098.00 I 12.00 19.00 176I 1.00 |WIOI 61.00 2U90.00D." C-..ty I 16 00 1 5 00 I 3 00 1 9 *0 1 9.00 1 12.00 I 51.00 I 52.00 M 3 2.00 1 1.00 I 3. 00 .00 I 241.00 1 21.00 7m.00F.grh.ns C-to y 144 00 I 631 00 I 6 00 I 1706 40 1 4915.00 1 112 00 1 402.00 I 4 O.00 j 2.00 1 11.00 1 8 .00 296.0 8 74.00 81.00 962.00Occ. C-octy 106l00 I 503.00 1 17 00 I 744 40 1 1007001 120 00 I 91. 00 324.00 I 1261.00 I 6.00 .2427.00 00 6.00 .12.00 U90.00Qt qji jn County 69 00 310 00 13100 82.20 1 1624.00 55 001 235.00 276 00 904.00) 5.00)I 21144.00 I4.0 177.00 177.00 I1.00

Toal 1434.00 60" 00 1 139.00 14j62 00 ll4 00 |1124 001 456 00 3371 00 2329 00 IIQ .00 1121a1.60 8_1.60 196.70 I 2 .00 9.70

------ -- --- --- -- - - --- -- --- --- -- --- --- -- --- --- -- -…- -…--- --- --- -- --- --- -- --- -- -- --- - - -- --- ----- -----

'I.i

- 54 ANN-

Table 4

JIANSI A6RICULTAAUL DEVELOPMPT PR OJECTPlan for Production of Livestoek Feed Materils Unit: 10,OOOt

ITEM 1060 1os 1904 1#06 1966 1907 1960 1996 2000

Total Grain Output 1240.00 1400.60 1549.20 1588.50 1458.60 1662.80 1600.00 1960.00 2160.00Feed 36.0 102.20 106.40 107.30 101.60 109.40 261.00 268.00 319.50Rep ids 7.20 14.10 14.60 15.67 15.60 17.20 21.00 27.60 36.00

(converted to)Rapesee coke 4.10 8.00 6.80 6.90 8.90 9.30 12.00 16.70 16.60Soyben 11.26 12.90 18.80 14.51 12.60 14.83 22.60 26.60 61.00

(converted to)

Soybean Coke 1.90 2.20 2.26 2.60 2.10 2.40 6.10 4.30 19.18Cotton 4.80 4.60 6.90 6.22 6.60 6.90 6.50 6.80 7.20

(converted to)

Cotton Seod Coke 8.10 8.60 6.00 4.60 8.96 4.20 4.70 4.90 5.10P-enut 6.06 6.24 7.42 10.80 18.60 15.60 14.00 16.00 18.80

(convertod to)Peanut Cak. 0.76 0.94 1.10 1.66 2.00 2.40 2.80 8.20 6.60Sesame 1.61 2.60 2.62 2.91 2.40 2.76 6.00 7.00 9.00

(converted to)Sesame Cake 0.22 0.86 0.39 0.46 0.80 0.41 1.00 1.40 2.70

Cake Output 10.06 16.02 17.06 17.90 17.32 19.21 26.00 29.60 61.33

CHINA

JIANGXI A6ItCULTIEAL DEVElPltENT POJECT

Raw Material Supplies of Jiangxi Feed Industry

1 --- - ---- - -- ------ -- - -------- 10-- ---- 2000Soure Source Source Seer-

Amount ------------- --------

It" Required Prov. State Other Demand Prow. State/ Demand Prov. State/ Demnd Prow. State/Fred. Al loc. Proy. Prod. Other Prod. Ofhtr Prod. OUher

Formuloa fed 1,816 5,560 160O 7SOO

Energy feed 98 "1 206 149 2,645 2,645 U870 8670 5720 gm62 40SCorn 172 11 76 soUh t U6 S 26 26Paddy rice 227 122 106 -S t potato, etc. 91 91Rice/wheat brona 867 849 86

LA'

Protein feed 142 07 0 66 776 414 81 1,119.0 486.0 630.0 1680 104 561Plant protein 106 77 0 o 1 655 306 849 964 a68 5I 1410 08 574

Soyborn/peosut eako 84 5 29Cottonseed, rapeseed cxak 64 62 2Othe cakes 10 10

Aniemi protein 84 10 0 24 120 106 12 165.0 123.0 86.0 220 215 7Fish *s c 26 1 24Blood meul, bone meal a aOther 6 6

Mineral. 20 20 65 65 86.0 66.0 11s 115

Addlteves 5 6 15 15 25.0 25.0 as 35

Rougha& 214 214 856 a" 510.0 516.0 IS0 0

Total 1,316 902 205 209 8,3U 5,432 376 5,61O.0 4,906.0 665.0 7,70 6,67 1,061

-I-

m E

-56 - AN ITable 6

CHDM

JIAUI AICULTURAL DSVELOPST PUCT

ProvImlel Ot, fed Convelrson Etat ee Feed ReuIremwet

----- P--projeted --------tem Welts 1Unc IUo 1664 1"6 106 3.9? 1000 10 3000

Park Ott 000 t 1.a 6.0 478.1 .0 722.6 778.1 U8.1 1'M.* 1,715.5rcr /a 4.0 4.0 4.0 4.0 8.6 8.6 8.5 8.0 2.0Feed letuIremet '000 t 1,440.2 1,567.3 1,901.4 2,86.4 2,746.5 2,967.6 8,060.7 4,166.7 4,400.8

C_se Output '000 t 8.2 2.7 8.6 4.8 5.1 6.6 2.4 41.6 1n.7Fre a 2.6 2.6 2.6 2.S 2.6 2.6 2.5 2.4 2.2Fee No" ire_mt 'ooo S 6.0 7.0 10.6 18.4 14.2 19.8 00.0 100.8 428.9

utt" Opt Oo t 0.5 0.8 0.6 0.7 0.7 0.6 6.1 12.6 80.6FCR /a 2.0 2.0 1.0 1.9 1.6 1.0 1.8 1.2 1.1Feed Re";,remeat '000 t 1.0 0.7 1.4 1.8 1.8 1.6 10.0 15.4 88.6

Poultry outpt '000 t 26.4 25.1 80.0 40.2 48.8 57.6 64.4 149.4 867.6FCR /a 8.5 8.5 8.5 8.5 J.0 2.6 2.5 2.2 2.0FPe Ro"uIrement '000 t 62.8 67.6 104.9 140.7 145.0 161.8 286.0 J20.J 775.5

Rabbit Output '000 t 0.1 0.1 0.2 0.2 0.2 0.2 8.0 4.6 23.5FPC /a 2.0 2.0 2.0 1.6 1.6 1.6 1.8 1.8 1.2Fee Requirement '000 t 0.2 0.8 0.8 0.8 0.4 0.4 4.0 6.8 2J.2

Milk Output '000 t 6.8 14.5 16.0 10.2 16.6 22.2 126.0 250.0 450.0FCi /a 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.8 0.3Fee Requireet '000 t 8.7 5.6 6.4 7.1 6.6 6.0 48.6 60.0 1U5.0

Ego Output '000 t 55.0 62.0 s6.0 118.6 129.2 129.0 129.0 400.0 650.0FCR /a 8.5 8.5 8.6 8.5 8.2 8.2 8.0 2.8 2.5FPe Requirement '000 t 16..5 207.0 882.5 896.8 418.8 412.9 U87.0 1,120.0 1,625.0

Flsherele Output '000 t 75.5 115.5 180.1 160.2 192.6 225.9 880.0 450.0 000.0FCR /a 8.0 8.0 8.0 8.0 2.6 2.6 2.2 2.0 1.5Feed Requireet '000 t 226.5 844.6 890.8 460.6 569.6 564.7 726.0 900.0 600.0

TOTAL FEED REQUIhEMET '000 t 1,974.4 2,828.1 2,786.6 8,426.4 8,0U7.8 4,106.0 4,568.9 6,744.5 6,861.5

*/ FP Convorelson Ratio

A~1Table 7

- 57 -

oaJIAIOI AIcULtLlAL rVELPMT ROECT

wIboll Sh_drd tor P_rere Fed

CeeeeuAre~e Femule Proe.inFed Feed Fed

Dlgnetable Energy (kcel/kg) 2e00 2900Crude Protein S5 12 - 14 20-8sCrude Fiber 7 7.5 - 9Calcium () 2.5 0.45 12 - 20Phosphorous 0. 5 6 - 10Moisture 12.5 12.5 10SIze (m) 2.5 2.5Coefficient of even variance (X) 10 10

04DM

JIMOCI 10LUj1U%L OEVE0UPIr 0J.RT

Peed NW Fbe obt.ril Requirements at Nill De..lepnt

~~~.inI. ~~~~~~~~~~~Faesm la - - --- befo materials (Formi a feed) -- ---- b tras(Cgsemtretef)Ani_l Animl- Fe" Requirement y 1ft (t) Paddy Corn Rice Ric. r. W_ect Concentrate Fic1. o d P_ in Ci

Bran Cab. 111e.. NM~I e a Co=ect

PMbecialiiad Hueholds

aftecing vigs /a s ". J00 g/pi (forll 76.04 2S,641 11,611 15.761 11,221 7.30 7,60 1.,U2 2.34 D.U 7i6 a4Pislt /a 262.60 10 kg/i forua 2.2 7 766 894 6N4 S6 7 162 1Soee /b 17,512 1,100 kg/ee/yeer (foeule) 19.26 5,779 2.6 3,6 2.01194 1.261 1.6 26 67 771 16" If

Jian 11redieg PareSm /b 292 1.100 kg/eec/yeer (forml) 621 e6 46 64 46 6 S2 a 10 is 2_ar /b 81 1.400 Itbr/yper (formla) 45 14 7 * 7 a 5 I 1 2 0 0Piglet /a 4672 10kg/p fermc 47 14 7 9 7 5I 5 1 1 0 0

Ileeding Pipe /a 2400 12 k/pig u) 365 109 5 7 55 76 66 5 11 1s 4 2Patteing pigs /a 1,000 S00 kg/pig (formi.s 300 g0 45 60 4S JO J0 5 9 is 8 2Teo breeing form (to1te)Sm /b 240 1.100 kg/ /your (formic) 294 79 40 5S 40 26 2 4 6 11 a 1kre /b 20 1.460 lg/ar//r (fOrHmi) 29 a 4 6 4 a a 0 1 1 0 0Piieft /e 3,940 10 kg/pi ( fOmsi) 36 12 6 6 6 4 4 1 1 2 0 06reeding pion /a 2.160 162 kg/pig formic 32 96 4 66t 49 as 5 10 18 S 2

Production faresm O6 1.100 kg/r/yer (formlm) 7U3 22 110 147 110 7 73 11 U 20 7 4

Scar. /b 80 1.440 kg/beor/y_er ~frla) 44 1S 7 9 7 4 4 1 1 2 0 0Piglet. /a 10.65 10kg/pig (fokig/ 107 J2 16 21 16 11 11 2 S 4 1 1grosnd L 1,00 15 kg/pi (formI) 152 4 23 30 23 15 16 2 a a 2 1Fattening plig /a 9,000 00 kg/pig (formw.) 2.700 410 406 540 406 270 270 41 1 1Me n 14

Pigs_./%quocwlt.roPatsteing pigs /a 27r SW 300 kg/pig (ferml) 6.200 2.464 1.242 1.,56 1,242 124 246 1l a 41Piglets / 27600 10 kg/pi (formaI) 276 e3 41 5S 41 26 2 4 a 11 3 1Sra /b 1.640 1.100 kg/r/wyear (formic) 2,024 607 504 406 304 202 262 S0 61 61 20 10

TOiTAL PM 116,747 85.024 17.512 253.49 17.512 11.675 11,675 1.75 3. 4,S70 1.167 SASTIC 7W.LTRYPin-sc PUL. 2. 000 9 kg/dck (formi) 26 .92 10.757 S.375 0 4.0S4 2.369 4,0S4 07 1.614 1.009 401 20Slh ducbeIt 5.910.000 2.626 kg/duck (formia) 16,614 6.206 S ,10 0 2.627 1,651 2.627 4u6 981 116

2.14 kg/duck grin) 15.514r ducke /d 979 000 U. 9 kg/duck (form) ) 62 ,66 25 02 .21.12 0 52 S4 I.26 9.U4 1.S77 a7" o 26 469wbg suck. ./eswuItt 6S4,000 639 kg/du (arforIca) 84.123 1 64 6,02S 0 5.119 * 412 5.119 1.024 2.047 1260 U12

Oceec 1s 3.118.00 9 kg/gcoc (forem I) 23.069 11,25 5,614 0 4.210 2,.07 4.210 642 1.69 1.06 411 211Parent pIoltry If 92,000 54 kg/duck (formlI) 4,96o 1.987 994 0 745 497 746 149 26 " 7 87

TOTAL AnTIC PlULYY 172, 14 S6.49 34.426 0 26,619 17.212 26.U19 5.164 10.#1 6.4 2.U2 1291IIAOU CaCs FA40 'FPrent stock6.60 80 elg/ch Sn 196 79 40 0 80 20 80 4 12 7 2 1li_rin4ock 6,6000 10kg/ci. .n 66 24 1S 0 10 7 10 2 4 2 1 0Ce_rcicl cbicken 40,000 3 kg/ch i ken 120 46 24 0 16 12 1s 4 7 6 2 1

TOTAL N.AOE 0C)llOO 304 1I4 77 0 as 8 so 12 26 14 a S

PF1S /6 2.000 6.000 50C0 0 1,200 0 7,.00 593 2.025 4.9 167 0

TOTAL M IJE ITS 16.514 X09.255 110.027 67,014 23.849 44.6W 2C.926 45.361 7.519 15.661 16.18I .942 1.67

/a Pigs 3s on coitin n- folla 80 15 20 16 10 10 18 S0 40 10 5/b Som lsed on camipostion me foll_ "S) 80 15 20 1S 10 10 18 80 40 10 6/c Ducks bsd on co96ositien s ol Io Im ) 40 20 0 15 10 18 20 40 U 10 6/d Ega duck. Bed on compesition as follmr 40 20 0 15 10 16 20 40 U 10 /c0n_ age a n compoition as follnos 40 20 0 15 10 18 20 40 U 10 a/f Pro'et pouitry ramcdn co_osition me follos 40 20 15 10 16 20 40 U 10 a/9 Fi name rncomp itirn nn toollram So 215 0 4 O S9 7.6 is U 2.4 0

041146

JIANCxI AIRICLUTLUAL OEYELOff PROJECT

D;etrib.t-O- of Project Wor,k *nd Scal, of Prd..cton

Mn,is_ I ab ----------- ------------------- Aqu I u ---------------"at Hb Eeq GC Pie Breeding Mas I_- Not Met Nat P.... T.& For.ty -----Food sill -------Aoeaocp- n

0InnDuck. , Ouckl OFl. Pare. Pond Pond. EL.cI m-r,e- Caige Caeacity Ty". Fcil te o Fac.l9 F -

----(no o 84e.l zei Houee(no /typ.) ------------- (h.) _- - (h.) (h.) (t/yr) /a (no e I )

JiTai Seei 100 297 100 4.000 1O346 1 Aq P. I Pi; 200 0 0 0 0 0 0 0 4.492 0io.n P-fictur- 2O.OD0 C I 10 SO Prefect. ADCJian Counity IO0 SDO 367 2.246 15.000 F A SOO County MOCArf. Count.y 13 10.000 F 1 500 Ceunty MDCYeji ing County 123 S0 County MaCYonf n County 500 306 10 000 F I 1.000 Ceuaty ADCJimn City 100 sao lS3 I AqP 200 5.000 F 1 Pi *liu-ht-. house 1.000 City aCJiehui County 47 50 184 1 P;i 10000 F I s1 County ACShaaicnuen Count, 150 100 1.0DD PM0 ... De. adu 1.000 County MDCTSih- County 2.246 S0o County MACL-h.F Cou-ty 1.000 1.000 County haC

Poysna Labs Region 200 1.07b 779 1.100 1,440 15 Aq P. 2 P;6o 50 1.069 276 1.000 3 200ftschsngg City 28 Duck. 1 n' (3 *) 1. S0 proc M CNenchang Crunty 100 300 30 2 Aq P.IPiP 61 21 39 2Kinjian County so 100 I1S 2 A 5 S 43 204 O 5.000 F 3 SCO County DCAnyi County 40 30 5 I Aq P 1.000 County ADCW.-[; Dipt'ict so 58 0 5t.tMh nchanr ebur-b 100 200 SO 2 Aq P 76 SO0 Distrie tC AjDlin. n County 55 145 39 0 67 sea COty MCShuangjain Fere

haa.ngr-o pr-ef uct-* 20 00C C I Duck p,roce:o g (3 a) 7e0 Prefect. MCwan,nii County 100 4 AO P 67 200 5.000 F I 1.000 County A-CPoyang County 50 495 120 100 4 AO P 484 6.500 F 1a SO Cooty MDCYugen C-anty 50 495 120 100 485 6.500 F 13 S00 County MCYchu.n Prefecture 750 Prefect ADCOlopn County 150 350 SW Cownty MCFre.cheng City 25' 200 329 15.000 F 1 500 County MICZhengeha City lb 150 350 100 1.000 cento MDC

J.ilndethoe. city 2.213 2.500 City aC e2000).Lap i . , Cou. ty Y~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ou See- Inot. (N00)Legna County 667 500 CO.aa.yMOCJisot,n Di.tr,ct 2667

M.h D 0tr,ct I166ch-s. i*ng D ietrict 167Zhuehl.n District 140

Stete Fare System 696 60 100 9 12 7 AqP. IPi 417 0 0 0 0 00 0 1.000 Plro. LendH nahu, (X,njipn Count.y) 1S0 110 40 164 2 Aq P 202 *.000 F 4 Duck Procemieg (2w) 500 lea ADCH .gfe. (Nongnu County) 150 110 40 162 2 Ag P 142 *.000 F 4 Duck roceessig (2 *) 500 Feam MCKenosha. (Yu.pn County) 12 101 20 1 Aq P 73 6000 F S Ouch preceesia (0.6 SCO FP r MCCaa.gng (Dean Coua.ty) 266 262 9W 162 2 Aq PHla.i.n (Denghn County) 162 1 Pi; 2,000 F 1 500 Pe- MCYunehe.. (Yonga.,; County) 162 4*000 F 2 500 FPe MDCTp-h.e ftecl.mtionP FPe 4.0 O F 2 500 FP e DCTOTAL 996 1.970 979 5. 19e 3J S 0 1.167 1.069 276 1.000 3 200 0 0 6S705 156.000 s0 25. 500

/a C . Conceatrte. F - For ula/b FPepr ly c I l d Qin ja n County

CHINAJIMNXI AIRCtTIC E DEELOPENT POJECT

RJECT COST SU"WY

(Y '0060 IU M '434

I TOtal I TOWI Foruiv ln 2nt fmi kw

Local Foreim Total Exde Costs Loal Foreign Totl E,-h Cuts

A. ATAI 35SI NO

1. P6I PRUICTION 13,vS3,4 3,877,8 17,761.2 22 5 3,742.2 1,045.2 4P77.4 22 52. AUTIC POuLTRM 6i730.4 255.0 7,O35.4 4 2 1,627.6 167 1,94.3 4 23. FEED PROCESSIN 1,327.0 20a125.5 289452.4 71 7 29244.5 5,4244. 7t*l 71 74 AATIC PlRY PROCESSIK 3,339.2 1.012.9 4,852.2 21 1 1,034.9 m2 13tW.9 21 15. FORESMtY 12422.4 3,610.0 16,032.4 23 4 3,349.3 973.1 43.4 23 46. AMKULTRE 5,590.3 346,5 5,26.9 6 2 1,504.1 93.4 1457.5 * 2

Slotal AJITAI 1N611 a 50,3.6 299227.6 a60060.4 37 21 13,701.5 7,37.1 21579.6 37 213. JIIIIEN A

1, FWlESY 4,572.7 1,534.9 6P107.6 25 2 1P232.5 413.7 1646.3 25 22. TEA IIUUT 579914 15,919.8 73,811.5 22 19 15,604.2 4,291.1 19.95.3 22 1t

Sub--Yotal JINKLIWENMDU 62464.3 17,454.8 799119.1 22 21 16W336.7 4,74.9 214541.5 22 21C. MN111 LAE NO

1i PIB FROITION 9063.5 2,607.5 114671.0 22 3 2443.0 M2.6 3,14.l 22 32. ATIC PWOLTRY 189037.7 2,69.4 200737.1 13 5 4,961.9 77.6 5W*95 13 53. FEED PROCESSIN 6h53.7 8999.5 159543.2 58 4 1,716.5 2,423.1 4,199.5 3 4

4. AUTIC POLTIRY PROCESSIIS 15,605.3 139630.1 299235.3 47 1 4;206.3 3,673.9 7,601 47 US. MKULTUE 44,131.2 39251.9 473933.1 7 12 11695.2 676.5 12M1.7 7 12

SlTotal 3011 LAIE NEo 93,391.3 31,173.4 1249569.7 25 32 25,172.9 3,403.9 33.576.7 25 328. 'eserd'hrextUmimntraining rnd technical asistane 14M,65.4 3p933,1 186691.5 21 5 4,065.0 1,033.2 503M.1 21 5E. increvtntal orkinh capital 61,S69.7 227M.3 34342.0 27 22 16,595.6 6,139.1 22M733.7 2? 22

Total DKELINE COSTS 293,116.4 1049466.3 367W582.7 27 100 76,311.7 26,159.0 104,469.7 27 10Pirsical Continiencies 209540.1 64606,6 27,149.8 24 7 553h.4 1,791.3 7,317.7 24 7Price Contin uacies 72664.7 25,343.8 96,006.5 26 25 7,359.0 2W55U.9 9,94.3 a 9

Total PROJECT COSTS 376,321s2 136.418.7 512,;40.0 27 132 6R9266.1 32,496.2 1217,0Q.3 27 116

. . _________ _______ ____ _

March 20w 196 15:S9

CHINAJIW1XI AIRICtLIIM DEWorPlNT PROECT

SINR NCOuIrs COST M T

(Y I000) ( aD,.)

z Total I ToaZ Foreign km2kw h

Local foreig Toul Exdhi Costs Local Fo niM Toal Emiu Cats

I. INJESTNEIT COSTS

Al CIVIL lS 40342.2 - 4,342.2 - 10 10.873.9 - 10473.t - 1t*. 3IUILIN6S 93,454.6 21,337.3 114,4U!.t 19 30 25,18. t 5764.8 36,5.7 19 31C. EOUIPWNT 28,206.3 36,637.5 65,045.8 57 17 7,603*3 99,9.3 17,532.*6 1?I. IENIE 1,135.6 6,693.1 7,83*7 I 5 2 306*1 164.1 2,11l.t a 2l LAU_ 31,646.1 - 31,6461 - 8 61.529. - ,52R.9 - I

F. NATERIMLS 16,243.9 14339.3 30,S63.7 47 8 4,378,4 3,365*2 6,243.6 47 56. ESEMCM An TISION EASES 1,467.0 - 1,467*0 - 0 39S.4 - 3954 - 0H. LOCAL TRININS 1,778.4 - 9,778.4 - 2 2,366.1 - 2,366.1 - 21. 1054EP TUAIUIB I8 FELLNSHIP 193.5 1,741.7 1,935.2 0 0 52.2 469.5 521.6 I0 0J. TECUEICAL ASSISTIMf 77.2 694.5 771.7 0 0 20.3 137.2 266.4 90 0

Total INVESTNEIT COSTS 221,546.7 01.694N0 303,240.7 27 78 59716.1 22,01?*. 11,736*0 D 76 FPimaical Continimcin 20,540.1 6,6N.6 27,146.3 24 7 59536.4 1,71M.3 7,31W. 24 7Price Contineias 62U,758.1 21679.6 84,437.7 26 22 6,339.3 2,196.2 I.W.5 20 3

Total IICUIUINS CUTINEICIES 304,345.0 109,932.2 414,927.2 27 107 71,0.8 25,9"4 97,40.3 27 nzzz~ mmz zZzzzaa= Zuz mzx' umamazz a

II, EtiET COSTS

A. MIIKINS CVITIL 61,569.7 22,M.3 94,342.0 27 22 169595.6 6,136.1 22,733.7 2 22

Total RECORM COSTS 61,569.7 22,772.3 4,342.0 27 22 16595.6 6,130.1 22.733,7 V 22Price Con.ninmoiff 9,906.6 3,664.2 13,570.8 27 4 969.7 357 1,320.4 2 I

Total INCLUINS COITINCEUCIES 71,476.3 26,436.5 97,912.8 27 25 17,565.3 6h496. 24,0&2.1 D 23-C-3zUzg 9t213 zzzuu gizs zz2zu mai sommam au

Total DASELINE COSTS 263,116.4 104,466.3 367,582.7 27 100 76,311.7 23,1530 104.4697 7 10Phfsical Contin u -pigs 20,S40.1 6,60B.6 27,146.6 24 7 5,536.4 1,731.3 7.317#7 24 7Price Contingencis 72664.7 25,343*8 96,006. 26 15 7,356.0 2WSJ 99114.60 2Z 9

_ _ __ ___0_1__ . _ t :U

Total PROJECT COSTS 376,321.2 136,418.7 512,740.0 27 132 89,206.1 32,496.2 121,732.3 D 116c-1 9--S -_ - - - - -

Norch 20, IM 15:5.1

04046J1^16X1 ARICITlDE oEWIMttE MJECI

%Sran Amnt bo P,oa.t Cgwwnt(Y '000)

Jllu klo 1u511 II OYA11 LAKIE IIII

AOUJIt ----- --------------I 1 0 40t-t Gost

P16 OGMTIIt FEDl PMIT" YEA P16 AEIATIC rEE6 ,tiRew .g lg,ow,trafi _lin*__

PRODUCTIO POtTRY PitSSINI PRDtESSTIU FMEST9! WSjCtTtI t E WSTRT 119E4E PUtTIDO Pat RTY POtESSIE POtESSIN6 Aam IIE -A teeOmal usistt@ cWitil TOta I _

1. IzESTIF, Ct851

A. CIVIL WKS - - 173.4 - 1,634.5 4.757.3 332.9 1.400.6 - It 5.0 1'69.0 3.01.6 - - 40-. .2 10.0 4.034.2

t. WILOIIUS 17.573.2 6,659.0 4,223.0 3.022.2 1,978.7 904.7 402.3 10-048.2 10,36.6 17.I23.3 3,-96.5 13,34.0 10.137.3 5,200.0 - 114,041.9 0.0 11.644.2

C. E13300 100.0 376.4 22,614.0 1,750.0 1,470.0 73.3 - 11,015.5 620.0 2,811.8 1O.031.7 11,62Z.2 1,212.1 519.2 - 5 .0.l 0.4 S6AM

0. WIIIClE - - 3,440.0 00.0 469.0 111.5 75.0 660.0 - - 630.0 2,201.5 2,141,7 - 713. 0.0 0.0

E. LAM - 7,325.4 - 3.606.9 20.333.6 - - 290.1 - - 1.4. 10.0 3.164.

F. mIDIOLS t.O - - - 3,154.8 - 1,640.4 21,433.6 694.4 - - - 364.4 .7 2.M.1

6. llE0N AM EXIEIS [MEIS - - - - - - - - - - -~ - 147.0 0R. LtU 1T10119 - - - ,7.4 , - 07104 0. 0.

I. t0S03 t1001PA 6 IU rMOMUIIP - - - - - -.. 2 - 0,910.2 0.0 M0

J. talmca. SSISIPIItE - - - M-77- m. 0.0 .0

Total 06MS100 Whlo 11,/o.1 I,93.4 20,452.4 4,652.2 16,032.4 5,926.0 6,107.6 73.0I1.5 11,671.0 20,737.1 15,5t4.2 29,235.3 47.01.1 15A1.5 - 3240.7 *.0 276.8

1I. NLINUMI 15IS

let.l I-II- i--- - -- -- --- - - - --- - - .0 342.0 0.0 0.0

toa 0 1C"S - - - - A -- 043. 04.30.0 0.0 0.0

Total 3SEt100 CtS75 17,761.2 7,035.4 26,452.4 4.052.2 16,032.4 5.26.0 6.107.6 73.811.5 11,671.0 20,737.1 135,43.2 29,233.3 47,33.1 131.5 01,342.0 W78.7 7.020 146

Pinwcal ContinUweWI 1,757.3 66.9 2,701.2 477.2 1.556.3 574.2 403.1 7,313.1 1,035.7 I.n.3 1.491.3 2.2n.0 4,42.9 W.0 - n1,41. 0A 0.0Prsv. CmtAdne wqs 4,203.2 1.5 5.2 6,M22.4 750.6 4.952.1 1.524.! 2.23.3 30,141.4 2,442.0 5,000.3 2,747.7 5.546.5 11,134.4 5.14.7 1.3.70.0 9140.5 2-1 0.61.5 O'

--_ _ _ _ __ ------ - - - ------ -

Total PlOJEtT COSTS 23,721.6 9,26.5 ,434.1 60110.0 22,540.0 0,025.9 8,44.2 111.96.0 15,149.6 27,32.7 39,732.3 37,0.9 620.4 24anI 9924 . 127.740. 4.7 3110.3

For C 3,109.9 302.0 26722.0 1.277.5 3.003.6 433.3 2.19.! 24264 32361.0 3,359.9 11.505.5 17,514. 4,111.6 4.02.9 2036.5 14.? 6.1 o.?

…-- - - --- --- - -- - - - - - - -- - - - - - - - - - -- - - - - - - - - - ------ - ----…----…---- - -… - …---- -- - -

6a,c41 20. 109 15:56

Dztn

-~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~.1.

CHINAJIA16XI A6RICULTURE EYENOP'ENT OJECT

Project Commnts by Year

Totals Includird Contingencies Toals lnludire Cetiwigtis(Y '000) (Uft'NO)

99/90 90/91 91/92 92/93 93/94 Total 89/0 9/1 9/2 92/9 4 Totals======__ -- _==3__*======== ==fl3= =_ - = s=as. am s

A. JITAI IASIN AREA

1. PIG PROINCTION 9P622.6 9,090.9 5,006.4 - - 23,721.9 2,419.9 2P1423 1,123.2 - - 5P64.42. AtIATIC POULTRY 4,199.7 3,293.2 1,813.6 - - 9,296.5 1t053.2 776.1 406.7 - - 2236.03. FED PROCESSING 12,921.9 24,514.2 - - - 37,436.1 3P246.3 5776.9 - - - f9,2.14. AP4TIC PILTRY PROCESSING 4,775.1 1,312,9 - - - 6,068.0 1,200.3 3W.4 - - - 1,509.75. FOSTRY 7,110.7 5,216.7 4,995.4 4,426,5 901.6 22,540.8 1797.5 1,229.3 1,95.6 948.3 166.2 5246.96. AKCULTIE 29910.2 2,472.6 2,643.2 - - 9,025.9 731.5 312.7 592. - - 19"7.0

Sub-Tot;l JITAI DASIN AREA 41,530.1 45,900.3 14,350.6 4426.5 901.6 1079109.1 10,439.7 10,616.6 3,216.3 946.3 16.2 25,609.1B. JIDENZIEN AEA

1, FIOESTRY 1,381.0 2,273.2 2,649.7 2,172.4 467.7 8,944.2 347.2 535.7 594.2 465.4 96.6 2,039.12. TEA IIPROWYENT 129564.6 23,765.3 26,849.6 26,755.5 22,031.0 111,966.0 3,158.4 S5600.4 6,021.4 5S731.7 451.4 25"62.3 0

Sb--Totul JINDENIWN AREA 13,945.6 26,038.6 29,499.3 29,927.9 22,498.7 120,910.1 3505.6 6W136.1 6615.7 69197.1 4647.0 27f101.4C. DOYAIG LAKE AREA

1. P16 PRODUCTION 8.031.3 4,690.5 2427.9 - - 15,149.6 2,013.9 1,105.3 544.5 - - 3,666.72. AQUTIC POULTRY IO,109.4 1I1355.4 6064.9 - - 27,529.7 2,541.3 2,676.0 1,366.1 - - 657.43. FEED PROCESSING 12,42.9 7,139.4 - - - 19P7M2.3 3,176.1 19632.4 - - - 46W.54. AOIATIC POULTRY PROCESSING 19,345.2 17,724.6 - - - 37,069.9 4,662.9 4,176.9 - - - 9,039.6S. AICKULTTIRE 26,575.1 21,932.0 14,513.3 - - 62920.4 6,680.4 5,144.8 3,254.6 - - 15,66.6

Sub-Total POYANG LAKE AREA 76,703.9 62.741.9 23,006.v - - 162451.7 19,291.5 14,765.4 5,159.4 - 39,226.4D. researchdextension,training nd technical assistance 6,486.4 8,343.6 6,556.6 2,969.6 - 24,356.2 1,630*5 1,966.2 1,470.4 636.2 s570.3E. increental working capital 62,972.5 35,040.3 - - - 97,912.8 159M04.7 8,257.4 - - - 249062.1

Total rPIJECT COSTS 201,538.5 178,064.7 73,412.5 36t324.0 23,400.3 5120740.0 50,662.0 41I961.8 16,463.? 7,731.5 4,633.2 121M702.3=_======== =_======= ======== ======== ======== =_=e =ss==zr= mazss== _nazu _som 9*8w 58

March 20, 198 15:58 D .

tD )

JIAN6XI A6RICULTUE 3ElOPNEAT PROJECTProject Cowents by Year

(V '000)

as Costs Ttul

s9/0 s/9 91nm 92/93 /4 T tSo 'O)=_S===_=-Z==S =SOm= W=S5R W _ g _

A. JITAI SASIN AEA

1. PIS PROIIUCTIOII 7,060.4 69596.8 39304.0 - - 179761.2 4.77,42. AITIC PIULTRY 39449.3 2,389,7 1196.4 - 7,035.4 169.33. FEED PROCESSINK 10,594.4 174O58.0 - - - 2,452#4 7669.14. AEMTIC POILR PROCESSING 3,992.2 960.0 - - - 44U52.2 1,57.9S. FORESTRY 5,936.6 3,785.5 3,222,9 2,680.0 505.5 16h32.4 4,321*46. AhIIITURE 2379.8 1,801.3 1,745.7 - - 5,926.6 1,597.5

Sub-Total JITAI DASIN ARA 34,014.6 339391.3 9,468.9 2,600.0 5055 0,0404 211579.63. J lDlEN ARA

i. FORESTRY 1,132.5 1.649.6 19748.0 1,315.3 262.2 6h107.6 1646.32. TEA IIOV1EIENT 10,241.4 17,263.7 17,719.6 16,220.9 129365.9 73,411.5 MMiSf '

Sub-Total JIJIWI AREA 11,373.9 18,913.3 19467.6 179536.2 12,623.1 79,919.1 21,541.5C. DOYAIS LAKE ARA

1. P16 PROWCTION 6,646.3 3,423.2 1W601.6 - - 11671.0 3,145.92. AOMTIC POILTRY 9,344.8 9,344.8 4,047.5 - - 20,73.1 5,39.53. FEED PROCESSIN1 10,345.2 S,198.0 - - - IS543.2 4P16.54. ASTIC POILTRY PROCESSIN6 15,P04.6 13,430.7 - - - 29,235.3 7W1.15. AIIMTtIT E 21,803.4 15979.7 9.600.0 - - 47933.1 12M7.7

Sub-Total OYMAI6 LAKE AREA 62,944.4 469376.4 15,249.0 - - 124569.7 33W76.7D. research,extmnsionttrajnins and tecimical assistance 56589.8 69460.1 4,663.9 19m.8 - 18461.5 S,030.1E. increental morkinr capital 56,372.0 27P970.0 - - 64,342.0 22M733.7

Total DASELINE COSTS 170,294.6 133,111.1 489|49.4 22,194.0 13,133.6 337,5M2.7 164469.7Physsical Continencies 10,406.5 9,024.4 4,422.9 1,"7.6 1,297.4 27,140.6 7317.?Price Continiencies 20,937.4 35,929.2 20,140.2 12,132,3 8,9694 96,085 9,914.6

Total PROJECT COSTS 2019539.5 178.064.7 739412.5 36,324.0 23,400.3 512,740.0 121,7M2.3=:==szz =zz222zs=*_ wamU3= zUUU wUUUi U3U3 inIn.

Fortion Exchno ~~~~~~49,220.2 63t694.4 11,302.3 7,630.2 4,571.6 136,416.7 32,496.2- For- --- -- - ------- -------a ---- ------- - -j

March 20, 1I99 15:58

jmil inmui w in' 4*1,

to. a. I"ax~i su 33194325

IT ml puhaff

0110*0 ha auto.

totsis bebe C9*Uu-45 lb

. - W -

in.in~~~~~~~~~~~~~~~~~ot V.a I m

3. 945 a CE a I5993KM 5915.1ft 44 1.43 11.294 55,.l9 115d713 1,05, -3.*.4 DAI 7.39t. 19.71.3, WMA4. 411 1.5 9 25

2. la* 44K44 oEM OWL25 3 IN 3 In9 a 25 54.021 4.45. 4.44.9 1445.1 19.2"9, *4564. 11.120.? 24912.9 - 2.4ft 91. 9

2. Soso"94 FM4 via I

I 323.6 - 35.4 1 - 52.6 - A .474. 36A. I1. 9

4. 36 ~ I - 44 FMO FM 2 - 2 91.2 - 12.4 - - 152.4 - 3.1 - - MA. 4 I&A 0 or

5.f4wsaK FE5 993 70 744- FM o:: -so -A MA 1439 - -- 51164.9 (A 9.6 I 2

I. 1m 159525 Wm 45 34 25 - 1,44 S.4'A 4,M. 4,316.1 2,10.4 - -19.71209 4.31.6 S31.379 b.40.1 - -3310 9 1.1 a 2

2. k443 INR 24 22 3 45 -V 914 31.14 4103.3 so.05. 2,1942. 1 - 1.0.4 6,1314 1.10.1 4,127.6 - - 444 9 1.4 6 or

41. Dm a4 to 9 4 n 71 336.04 1.25.5 1,113.9 27.6 - 1.01.4 3.W.2 1.42, 139L2 - - .44. 9 4.3 9 2

M. Omi a4 2.43 2.2 3.40 I M 5.3 .3 4,9464 4.31.4 2,90.4 1 2,42.24 5.524,1 6,715. 2.431.9 - 15.101.9 91#.3 0 25

Sm.ilift 9m 94 4 . . .62. - - - 624 959

llo-Il" a m 9441

M134L4.49.20.530.0143.41.3 - 3.232.9 7.996.3 1,72.152.994.? 42.33

3.39M4 PM- 9 2n42 -M- 922 o) 2649.1 3,44.5 I'M's5 - - 6.6.3 2,Og.4 ba49.2 2.741.1 - 4OA*4 9 to

7. MOPED9P in Ss1 226 1 91 2.9 321.14. 7.30.4 - ,216.9 3.51.5 2.43.3 - - - 4.134 I OA 0 W5

z. nou 56 4 Sof 19 - - .01 1.44 MA. ??.* 1- 5411. *.t MA4.4 - - 11.134 9 9A4 4 W

4. toI (460 IN it 6.1 61 M 19 S.69 5147. 341.1 36.2.1 - -f1.44. 212. WA. 436.5 - - 5.343 9 U. I W5

CT BUMI IN US III - - . 216 22.9 1.901.0 5.319.9IM.

h 1.25. ,5153416t9 - - 3.25. 9 1. 9 W

6. 444449 fro -

2261 63.1 ?"4.3 1.974.? W54 04.? 3,499. - 5.64 9 9 9 M5

7. I on 144 44 2 M44 "493 I a4 M3 M3 374 - 5.622 13,13.9 3,N.71. 911.9 - .639.? t1A64 3.6442 5,1164 - 4.44.2 9 1.5 4 W I

0.,1 "Ia 44193 PM 369 Its - - - 32 5672 93. 65.9 - I-P3.9. 3 -10. 46a"- (411.5 9 1.5 4 W5

91919 iMNWM 5In4 FM M6 14 3 - - 2 Is1.v. S.43.2 3.21.6 5.53.9 - - .154 I5.31.9 .5.4 1,.31.4 %W-1.6. 9 9.4 0 25

14. Low Wm to 4435194 3 5631 39 - - - 240 '1.,& 2.47290 3,643.5 - - .314.) 2?.fl1.3 ..11. -. 44y1. 9 1.4 9 W5

9-69. F MU33

ts-25 11.05.3 5,345.4 - - 71.411, 1515. 494.5l 1.0.t I - 419.

3. F334F449I SW TM. FORTS I 144 - 624.4 - - - 4299NA1.

MA. 994A 9 25

4.93347139324M4TO43 946194 - 6 - 5 226. 363. - - 314,4 444.4 . . . 614 994 9 25

1.43)w 441 To3 MEN1! - 6 - - 14 3. - 2312.2 - W.2 t4o.? .- .- 443.7 I OA 9 25

4. wm 769!3 - . - 3 - 79421.# M5. MA31 - - - MA.4 C4S 9 W5

9*1. 9"MNlL-5496110.

- 3.MA Mg - 2.53 -.u. - - MA 4.

s.w 44m 94199 - 2 - - 1.9 1.13.9 .9 9 - -2 .11) - -31. 4 25I

2.9433salvo 9414 M

33l - 5.# - 36 6.9 - - 4.9 0 9 9 W5

2.6.133 form4 94615 - - - 3 2 - 3.9 - - A. 44.4 - - - 449. 4 4 9 W5

3. 9144 is Dm336u a459 2 a9 i7t1 - 13. S34. 943..4 104 h.46.4 1139.1 MA4. 995.4 I 3.3.5 .4 I I * W5

3. ID4 ID7436 far1m97 - 13 2 ? "9.2 - 7.5 1.55. 1A24.6 53.I WS4. 349 2.2 2542 44A 9 I 9 W

1. P1041M 9414 - - S - - l2. . 22.9 - 226.9 - u.1 - 12 W9 2

%b1.66 To m

514.3 014.24410.93,321.4 2,314.9 431. 1.52645.44.1.6.la" 1.36.

and (4

5P.363E."4.?733,956.344.93,-2.v34,1-4631.2 30. 4444415lM .45366

Mi

56.~~~~~~~~~~~~~~~~~~~~~~~~f--12 .6M.F 53,14M.9 994. 3,11.4 (49,33.3 42W203431.4 4.64473 1.31143IMA.90.164

brlatOh ,-.1989 17:04

- -

ANNEX 2

-66- Table 7

CHINA

JIANGXI AGRICULTURAL DEVELOPMENT PROJECT

Disbursement Schedule

IBRD/IDA Disbursements Disbursement Profile /aFiscal Year/ Semestral Cumulative Cumulative Year/ (%)Semester - - (USS million) - (%) Semester

1990 Year 11st 1.0 1.0 2 1st 02nd 4.0 5.0 8 2nd 5.4

1991 Year 21st 7.0 12.0 20 1st2nd 9.0 21.0 36 2nd 29.2

1992 Year 31st 11.0 32.0 54 1st2nd 11.0 43.0 73 2nd 61.2

1993 Year 41st 5.0 48.0 81 1st2nd 4.0 52.0 88 2nd 91.0

1994 Year 51st 4.0 56.0 95 1st2nd 3.0 59.0 100 2nd 100.0

19951st 1.0 60.0 102

/a Disbursement profile for China - specific investment loans

Completior. date: June 30, 1994Closing date: December 31, 1994

CKDM

JIM1I AIOJLTLAL DEVaJ T PWOJWT

Training a.d Technical Asaistance

Phasing of 1-snnthsby Col ndJr Y.Sr

Total Total --- -- -- - - - - - - - - - -- - - -Description an-soth. Cost (UU 000) 1969 1990 1991 1992 Proosed Cantont and Locatioss

O.oroa Training

A. Study toursA. anie_l Mab 8urnau/StatoFP. A hDC %tchnical staff 4.5 29 4.5 Pit and poultry soloction. breaing. a agnogmat

U. 5"oherlanJc

2. 14; I l/p 1 nt mnadrshch'l and et staff 4.5 29 4.5 Fre and poultry pr.ec ingt.S. Da_al. Mlh.

S I. SFF A For. RsearcrhIna%. staff 4.5 29 4.5 Comearcial forestry planning VW _mnssnt

U.S.. Cinads4 Jisngai Too Co staff 4 5 29 4.5 Toa--plantation mnegaant A pra ing

Sri Lana.

5 Aquatic Prod ur.ar. AFish fo- staff 4 26 4 Fish brooding, far mn _g.mnt4t ry

6. ADC A Iloal ADC staffStato for. S faoJ sill owre 10 65 5 5 Pooject and finencisl _nsgnt - Indio

D. Advnced (4-5 _D) training courses1. Tch'l otaff-Stt F. rs.4 6A u 6 32 6 Solection and broading of lan asl pigs

U.S.

2 Rsearch Inst /Fih farm staf 16 97 6 12 Fish fea nutrition, fish diyseass. wstar oal-ity a yst,ar

S. Forset eseasrch Inst AIP chnical staff 12 65 6 6 Salactin/planting trials for slash pina

Commrc.al forestry msg_Usnen .S.

4 Jingdo*an AhC staff 12 65 6 6 Tan Plantation rnetion. t_ Prs_ ing-S.i Lamks

S. Count, food will staff 3 16 3 FPod will nn a St-US.. Canda. DwAn_i

6 Processina plant/ADC staff 32 6 Quali ty control standards - LU a

Subtotal 19 514 36 30 17 6 I

Consulting Ser.icas

A. Tecnical eaprta in linst ockfidari_e. for-atry 5 65 2 2 1 U.S_ Canada. Mangary. Math

B. Pod n.utr,itionist 2 26 2 U.S.. Daneark. Franca

C. Project _nsseant. mrketinresearch and forcati no"_i-tance to JDC taff 4 62 1 2 1 U.S . Thaliond

D PraZeina: Li-atocll,c ta.forestry 4 82 2 2 U.S., Math.. Sri Lan. Portugl

Subtotal 15 1i5 7 6 2

Loel Training

A. Start courses for heads of SHn 12400 1004 1437 3553 4729 2J111 Training in brasing. cultieatien and p sietactniqms--at Cownty Tacknie_l Sreise ;tetma

I. Month-long courseas for township/count,y t.chnicians 5041 817 50 1553 1941 917 lIkitritian and diseasepran,n-rfcul ek

Sar.ice Station*

C. 10-12 o co rse for higher lea i

technical staff 2580 524 607 1065 384 3?4 Selection and hroading. dises pr.oent.on. faremnagoa_t-Jiangai Agricultural Wilsierwit

Subtotal 20021 2545 2034 6271 7054

Total 20125 3064- -- - - - - - - - - - - - - - - - -- - - - - - - - - - - - - --_- -- - - -- - - - -- - - -- - - - - - - - - - - - -

- 68 -

ANNEX 4am able 1

t 2- 4 5 6-7 0 916-11 12 IU 14-1 16 17V -19 2

3m .41 ,vgWU.( khi,u 350 wo0.0 smA. iMO SMA. 570.0 570. V70.0 $M0.0 57o. 570.0 57 O. 57A. iwO1 570.0oad0 M D".mufA kie. - . - dohw . 6.4 . 6" ¢.4 - . 0.0ad) _ pugUom1 A,0d to- . - - .o - - mo - - - - - in.._ t okm I_ 4w 4V) 114N. 2M-.0 0.0 2ON 3000.0 2360n.0 231.0 30.0 2 . 30.0 300, 33.0 2-# .MA =60

o itm l o( .1A1) - 70.0 - 7M. - - MA - - 730.0 - M.am., 230.0 1610.0 3 60.0 16.0 .0S 360 10.0 160.0 3 60.0 36.0 .0I 360.0 160.6 360.0 360.0 360.0 360.0

tutu 1130,0M2316 0.0 MU9UM W.023160.0 23160.02394.02360Z2160.0234n03200210.294. 231 Z60.016Z10.0 23940.

WTS

1u11611e6160.0 - .- - - . . . . . .(t4 10) 1040.0 - - 1240.0 - 2040.0 - - 2640.0 - - 1640.0

tu,nu t.l .71g 06500110022.061.064.0 262w tl.lsosllo|1l. . l 16160. 260. 16100.0 16160. 160. 16100 t.0 1610. 166. 16100.0 llo ustalim, VW LiUM 1700 340.0 340. 340.0 340.0 340.0 340.0 30.0 340.0 30.0 340.0 340.0 340.0 340.0 340.0l to 16.0 32.0 32.0 32.0 32.0 32.0 32.0 32.0 32.0 32.0 32.0 32.0 32.0 32.0 32.0

iiawl11g 175.0 350,0 350.0 350.1 350.0 350.0 350,0 30.0 350.0 350.0 350.0 350.0 350.0 350.0 350.0itamt for u,iUrd eaital it 11.342 0.0 150950 15.0 16.1509.0 150. 1 . 156.01509. 165.0 29,0 1509.0 165.0 1509.0 1509.0m.,gu u W12 115.0 231.6 239.4 231.6 231.6 23.4 231.6 231.6 239.4 231.6 231.6 239.4 231.6 231.6 239,4pIgtigi g53) - - - - 113.0 1197.0 1150.0 1138.0 1197.0 1150.0 112500 1197.0 1158.0 1150.0 1197.0

Malt 17514.0 126. 1570.4 20540.6 2t720.6 19767.4 21706.6 190.6 19767.4 21706.6 19no6 197674 21706.6 2o6 19767.4

at i Wmb tlineid -5934.0 4597.4 569 2611.4 3439.4 4272.6 1453.4 3439.4 4272. 1453.4 3439.4 4172.6 1453.4 3439.4 4172.6

ivt itW Ito mivwd(703) 4310.0 - - - - - - - - -,pmmt(14.G4) - 144.2 1440.2 1440.2 . - - - - - - - - -

Mt ftinin 4310.0 -1440.2 -1440.2 -1440.2 - - - - - - - - - -

nit In sftt tinwirs -1624.0 3149.2 3M.4 1263.2 3439,4 472.6 1453.4 3439.4 4172.6 1453.4 3439.4 4172.6 1453.4 3439.4 4172.6

Ihat uw i.ift(ut) 368,0 365.0 365.0 36.0 365.0 365.0 365.0 35.0 365.0 365.0 35.0 365.0 365,0 365.0 365.0to tuu to k( I w/Iud) -4.5 1.6 207 3.2 9.4 1124 4.0 9.4 11.4 4.0 9.4 11.4 4.0 9.4 11.4

Nog. 20 2. 10259

Intenil bitn of bits. It Ebt Stiu

IWm? 74.37

smI="U 0,3 AT 121

PZ. _ 0703 _ 5270

1 160.124.74 141H00U -1II.04 1.212903 -17P.26S. -16562.24MA 2.029 -16.515.91 -753.25S

cmT 144,027.07 U63072.04 13.12

Wa W15 163l07.06 144P027,07 -11 .6

NA Pmg Vil it CC 12 a 29.44.2lteA ba of btam a 74.42two lW 1u t Vt et Mu11 * 14.1I

ANNEX 4-69 - TableZ

CHINA

JIUM6XI AUZICOLItAL DEVEIJPUNT PRO.ECT

Finscit Prices of Impu

Impte Unlt Price (Y)

Duck I lIgBrceding Duck * 8.00Local Typo Meet Duck se 0.60Big Typo Meat Duck * 1. 0Laying Duck * 1.00

Gosling * 1.00Poultry Fed

Duckling Food kg 0.70Production Food kg 0.66

Pig Feed kg 0.70Fish Food kg 0.76Sow *00 - 460Fingerling kg 6.0 - S.CFish Fry kg 26.00Fodder kg 4.00Manure kg 0.08Urco kg 0.625 - .675KCI kg 0.22Compound (N-P-K) kg 0.044Paddy Oraln kg .4 -.64Rico Bran kg 0.24Whout bran kg 0.40Flnseh kg 2.26Soyben Cake kg 0.90Rap_sod Cake kg 0.46Limetono kg 0.06Vitelin kg 4.00Maize kg 0.62Labor uday 6.00

ANNEX 4Table 3

-70 -

CFNM

JIAXI MAtCJLTURAL DK LPUN POJICT

Plmaslel Prie_ of O0tpu

Outpus Unit Y/kg

i.t Duck kg 4.00Meat Goose kg 4.00Cull Duck kg 8.60Egg kg 3.80Black bone chicken

Day Old Chicken * 1.15Commrcial Chicken * 6.76

Lean Pig kg 8.0 - 4.0Cull sow kg 1.30Piglet *a 90.00Fish kg 38. - 4.3Pearl kg 2000.00Corcentrate Feed kg 1.60Formula Foed kg 0.74Chicken Dung Manure kg 2.00Boneaa I kg 0.70Frozen Duck kg 65.0Frozon Pork kg 4.60Pr-seud Salted Duck e 14.60Preorved Egg * 0.30Down kg 260.00Feather kg 16.00Quilt plece 140.00GOrmnt piece 90.00Fresh Too Leaf kg 1.30Crude Tea kg 6.90Refined Teo kg 11.31Tom Carton Box * 10.00Pulpwood 8 200.00Sawlog oa 480.00Rel n kg 0.66Rosin kg 2.70Rosin oil kg 3.63

ANNEX 4-71- Table 4

C4RPA

JIA:4QXI AGRICULTURAL DEVEPLBIT PROJECT

Amn. Not ItInvwestment FMR to Al I Afttr Oebt Leon Repeymant

Sel- it_ore_s Servicing /a Ported (Inc. Grm)(Y'WOO) (5) (Y'000) (yr.)

Pig ProductionProvincial Pig Fare 2,21.0 02 984.0 10 (1)120 Sow Breeding Form 1,040.0 1S 200.0 10 (1)232 See Breading Farm 1,460.0 82 523.0 10 (1)4 Sow 00 Pig Houahold 6.2 74 4.2 5 (1)12 Sow 160 Pig Fiutnhold 16. $ 7.4 6 (1)

Poultry Production1000 Laying Duch Fiouo hold 7.J >100 11. 1J000 Local Met Duck Household 8.6 >100 4.7 18000 EBig Mat Duck Houaehold 8.6 >100 5.7 16O0 Meot Goose Houshold 1.1 >100 8.8 1Blockbone Chicken Form no0.0 16 160.1 10 (1)4000 Breeding Duck Form 112.2 >100 116.6 5 (1)

Fish Production Form /b1.2 ha New Pond J7.4 67 10 (6)1.2 ha New Pond A 80 Pigs 40.4 71 10 (6)1.2 ha New Pond A 44.6 06 10 (6)

1000 Laying DucksI he Modified Pond 11.6 189 10 (5)1 ha Modified Pond A 80 Pig 18.6 110 10 (6)1 ha Modified Pond A 17.4 116 10 (6)

1000 Laying Ducks166.2 Cage Culture 7.6 67 10 (6)3.88 ha Fish Borrier 4.7 14 10 (5)1 ha Net Enclosure 16.1 44 10 (C)200 ha Pearl Culture 4,260.0 52 2,907.0 10 (6)

Feed Mille and Processing20000 t Concentrate Feed 8,034.0 88 4,186.0 10 (2)16500 t Formula Feed 6,097.0 29 1,764.0 10 (2)5000 t Formula Feed 1,641.0 81 562.0 10 (1)2000 t Formula Feed 62.0 >100 240.0 10 (1)600 t Formula Foed 67.0 76 00.0 10 (1)Chicken Dung Fertilizer 1,248.0 20 816.0 10 (1)Animal Protein Fee 964.0 40 462.0 10 (1)

Poultry Processing3.88 million Frozen Duck 9,962.0 27 8,706.0 10 (2)1.66 million Froxzn Duck 6,642.0 22 1,722.0 10 (2)0.06 million Frozen Duck 2,216.0 J5 1,126.0 10 (2)0.14 million Pressed 1,69J.0 26 616.0 10 (1)

Salted DuckJin Moet (Frozen Pork) 2,670.0 15 614.0 10 (2)Eiderdown Gorment 1,757.0 >100 0,046.0 10 (1)

Foreetry6706 ha Plantations 24,180.0 24 88,200.0 20 (10)Rosin Factory (J000t) 4,409.0 51 4,146.0 10 (2)

Teo1 ha Toa Iprovemwnt 10.7 16 8.0 10 (2)Primtry Too Factory (120t) 565.0 17 106.0 10 (1)Refined T-o Factory (SOOt) 666.5 67 56U.0 10 (1)Packaging Plant 2,681.0 460 2,68o.0 10 (1)

/a Interest rates are assumd to be 11.84X for loans maturing In one yeor or less,12.761 In one to thre- years, 14.43 in three to five years, 19.24% In five to ten years,and 24X In >10 years.

lb Net Income of fish production households shown In Annex 4, Toble 6.

ANNEX 4Table5

-72 -

JIMINI APRItJLTURAL EVLOT PIJCT

Fish Prodwto sld - L Ises

Income Bore Cntract Fee Iace AfterContract F.e (Y) (X) Contract Fee

(Y)

1.2 he NM Fish Pond 19,900 5,190 25 14,7101.2 he NMw Fish Pond A 80 Pigs 25,180 5,680 20 19,5001.2 he Neo Fish Pond A 1000 82,590 7,200 20 25,890

La ying Ducks1 he Modif ed Pond 16,0S0 1,500 10 18,5601 ha Modified Pond & 80 Pigs 19,520 1,600 10 17,6401 ha Modified Pond & 1000 22,000 8,870 15 19,280

LayIng Duckslo2 Cage Culture 4,060 1,040 46 2,2108.38 ha Fish Barrier 8,910 1,100 so 2,8101 ha Net Enclosure 6,010 8,606 so 2,406

ANNEX 4-73 Table 6

CHINA

JIANOXI AGtICULTUlAL DEVELOPMENT PROJECT

Selected Conversion Factoro (CF) /a

RtIl Transport 1 SO

Road Transport 0.90

Other Civil Works (Bldg..) 1.80 /b

Consumption Conversion Factor 1.18

Elctricity 2.00

Coal 0.75

/a Baond on the IBRO's Economic Pricos for Project Evaluation in China/b Based on conversion ?actors for steel, timber, cOmnt, "mchinery, unskilled osbor,

technical and supervisory labor, and other traded goods and services of1.0, 0.9, 1.4, 1.6, 0.57, 2.0 and 0.7, respectively.

OIINA

JIANOXI AORICULTtDAL DEVELOPWENT PROJECT

Economic Prices of Inputs (Y/t)

1969 90 91 92 9U 94 95 96 97 9 9 3000

Mill Gate PriceFishsal 2,2W 2,20 2,2WSoybean Cake 1_ 759 751 748 786 727 719 711 on 624 "1 557 494Rep_d CoUke 5£ 8U4 W0 76 871 867 86$ 841 819 296 276 252Vitmins 4,000 4,000 4,000Limeston. 59 *9 atPaddy 604 691 578 56S 661 6U6 526 519 51t gOt 502 496Ricebran J_ 230 227 223 220 217 218 210 206 201 17 192 1sMaize 233 2" 290 276 272 2U 264 269 274 27J 2U 23Wheat bran 4_ SW0 578 366 360 a56 84 59 642 84 an S5 85Fresh Too Leaf 960 1,009 1,086 1,067 1,096 1,125 1,154 1,176 1,196 1,219 1,201 1,26Resin 1,#6 1,66 1,68Egg (10,000) No. 1,610 1,687 1,666 1,695 1,720 1,746 1,776 1,79C 1,17 1,3m 1,t 1,t79Feather 11,200 11,200 11,200Live Duck 2,792 2,640 2,688 2,936 2,965 3,081 5,079 8,115 5,151 5,137 8,225 *,259Live Pi 2,726 2,772 2,813 2,6 2,910 2,966 5,002 8,040 8,077 5,115 8,162 8,190

Farm-Gate PriceUrea an 906 923 949 969 969 1,009 99U on 976 667 OC7Phosphato 1,069 1,122 1,166 1,166 1,220 1,258 1,236 1,295 1,804 1,314 1,825 1,882Compound 6_ 901 926 948 972 995 1,019 1,042 1,049 1,0" 1,0" 1,070 1,077Paddy 601 537 675 S59 544 550 516 611 607 502 496 493Pig Feed 696 569 561 572 568 66C 546 U42 U5 584 50 52Poultry Fed 780 720 711 701 691 62 672 6" 660 65 667 641Finh Feed 69 62 678 669 62 865 69 640 81 621 612 Sol

1J Approximately 905 of soybean economic price2_ Approximtely 461 of soybean economic priceJ_ Approximtely 40X of paddy economic price

4_ Approximtely 40X of wheat economic price6_1 681 phosphate and 37X MOP

CHINA

JIANCXI ACRICULTURE DEVELOPIENT PROJECT

Economic Prices of Output (Y/t)

1999 90 91 92 93 94 96 96 97 OC 190 2000

Ex-aFctory PriceConcentrate Fd 1_ 1,425 1,420 1,415 1,410 1,404 1,393 1,394 1,866 1,842 1,817 1,301 1,266Formula F d 1lJ 677 6e 659 e6o 641 6e2 623 617 612 6O0 001 GMFrozen Pork 4,966 5,089 5,121 5,206 5,297 5,369 5,452 5,516 5,560 ,645 5,70? 5,77SFrozen Duck A Coose 4,695 4,778 4,362 4,980 5,006 6,067 5,166 5,225 5,26 5,846 5,406 6,406Salted Duck 6,069 6,196 3,880 6,466 6,601 S,737 6,672 S,976 9,076 9,176 *,200 0,'2CPresrved Egg (10,000 no.) 8,898 8,396 8,89Down 2_ 175 175 176Chicken Dung 2_J 140 140 140Boel 1,566 1,66 1,6Refined Tee ' 6,640 6,323 6,906 7,089 7,172 7,806 7,441 7,541 7,641 7,741 7,641 7,942quilt (piece) 2J 9 9' "Garmnt (piece) 2_ 68 68 Rosin 2,232 2,232 t,22 Rosin oil 2,470 2,470 2,470

FUrm-G_te PriceFish 2,680 2,660 2,0tiPig 2,714 2,760 2,306 2,853 2,399 2,945 2,991 8,027 3,068 8,064 3,184 3,170EN 2,860 2,660 2,660Cured Duck 2,460 2,460 2,460Meet Duck & Cooe 2,760 2,327 2,375 2,922 2,969 8,017 8,064 8,101 8,1" 3,174 8,211 3,243Pearl (kg) 1,726 1,726 1,7*6Sawlog (m) 529 584 53U 548 548 552 557 5U 66O Sol 662 3a8Fresh Too Loaf 971 1,000 1,020 1,056 1,067 1,116 11,475 1,167 1,1 6 1,210 1,28 1.254Resin 1,627 1,627 1,627PuIpwood (ml) 140

1_ IBaed on 55.53 of poultry feed, 8l pig feod and 6.5S fish feed.2_ Non-traded goods (financial pria- X SCF)8J Awuming a price premium of aboout 15X over ordinary Chinese black teo.

I!

- 76 -

ANNE( 40DMa Table 9

JIAMII AGRICUL1MAL DEW MMWT POOJgCTre_ Flinnial _i legemic Piesc Structure

Fi.eacls! Price - -P------ e-f Ptris" Lo 2M8

beatity Price Coot Price Ceet Price Coat P11g. Coet(3) (/hg9) (') ('f/Ik) C(Y) ('/kg) () ('/hg) (Y)

CFlaM FeedP_l le ~~~180 2.n 8ue 1.1? 84 I 1.7 841 I1 .17 841

s c o am o., o no o.n m 71 |i1 onI 0.4 147C~. ~:40 400 0.4 104 O." in 144 0.21 100

Vitami 10 10o 4.00 400 4.00 400 .00 400 .00 400Limeete_ S sO 0.00 I 0.04 2 0.04 2 0.04 2Contingenies is /a n/ 20 /eProe_elag Co" 174 100 100 100

r2007 m b in /b 11 /bn-Mill Price 1,800 I 1,874' 1,848 1,11

Fermel Fe w Concentrate Fed /d 10 100 1.62 102 1 so in I 24 124

atdb s0 go o.u 0 154 0.g1 in O.U S' 'I 0.10 1g0P1ad 1 ISO0 O. to 0.20 44lice Pollards 15 500 0.24 86 024 1t 4 tO solWle ~3 10ar U I0 0:14 ':1 0.87 10 iL 0.2 n I2.2 2

t re" 10 100 0.40 40 0 8r U 18O. l 8 O Cointinne110 /a I 4 / c 4

oceelng Cost 901 2 9 2 1 2margin 11 I 4 so 50Ex-will Priee 740 587 54 U6U

FISH FMED tConentrate Fed 1

Fl kneel 7.6 76 1.1 171 21.27 178 12.27 IT 2.27 178Sey - Cake 26 10 0.00 2U4 0.76 196 0.71 1so0"_ CUke U4 0440 0 2o4 0.80 250 10:80 280 0:.: 16OVIailn 1.42 4.00 4.00 4.00 4.00Contigloencie 1.1 14 I 14 .00Proceeeing Coet ' 100 100 100Marlgin as I 0 67Eu-lMIl Prige 1,000 8 18 I 77 784

Ferais Fee 1 Concentrate Feed 80 80 1.02 U0 0.08 Sd O." U7 | 0.70 2

aize 25 250 0.52 180 0.28 78 0.26 65 0.2 78Contlngenclea 86 no0 0.40 144 0.87 1l8 0.88 11, 0:85 11

Preceesing Ceot 90 C2 C2 *2Margin 81 St 581nEu-ill Prige Om on 047 *02

POULITY FMI Concentrate Fee 1...

Flll 20 20O 2.2 460 2.27 4U 4 2.27 4U 4 2.27 4U4Seybe"n Cake 40 400 0.00 80 0.7 804 I 0.71 2184 .4 190R.peeee Cake 1 150 0.46 118 I 0.88 0 0.8 90 0.18 O8Vitamin 10 100 4.00 400 4.00 400 I 4.00 400 4.00 400LIneatens 5 s0 0.05 8 0.04 2 0.04 1 1Ceontigele e 17 2 1 I Precowing Ceat 174 1 * nargln 721 n 1124

Ex-Mill Prlce 1,600 1,520 1,47J 1,JS

Feremla Feed CecetreteFood 15 150 1 2 48 1.54 l 1 1127 207M dele I40 400 O. 2U I I4 I 0.2 L

11e1" ~~~~~~20 200 0.62 104 0.29 Ug 1 0.26 92 0.2 U slICe Pellards 1S to0 0.24 86 0.24 6 T 0.n1 22 0.10 80Umeat srae 10 100 0.40 40 10.87 n 1 .u u .ff cCentinnclie 6 I | IPreceeeing Ceet so I2It5,12s co I of 44 e I s

Eu-Mill Prlec 740 780 0 78 41

/apprexlatly 21S of totl marul east./b Apex tely 1001 ever estrlol aed proeeeing coet./a Aprexuiutely IS .1 total mterIel c at./d Icluding traneport cest of f10/t, edj mted by CF oef 0.0.

JIMA I AatOtLTIPAL EVEPf PROJET

cnoic Price Derivation

Duck Porkl Lean Pig Duck/Goose fAcin/ Preeer,ed Preerved Selro Fiehasl 8one_1l Perl Block(Frozen) (Frozen) (Live) (Lv..) Reain Duck ES ft (S) (kg) Te

Not Trd Status X X X X X X X t4 K X X

Average Unit Value ofExport and ISports (190S.US6/t) /n 1,422 1,S00 791 /q 806 /q 2,280 /q 125 /q 1.600

YER 196 _ CEc.i.f/f.o.b. Shanghai: (US/t) /o 1,410 1.467 8S1 8!0 69! 2,406 1.024 138 S4S 48 S6 1,729

(Y/t) 5.20 5S.517 S.061 S,154 2.678 8.927 3.79 510 2.022 1.792 1.9?? S.416Port Va,rge A Distributors Margin /c (46) (426) 298 (301) (250) (B21) (859) 5 2C0 (179 (96) (STransport-Port to Wholesaler /d /p (2e) I2 8 (8) (2e (2e) (29) 20 29 (29 (29) (2

-Nill to Whole" ler /a 1s) ( 2 (24) (18 (1 (18) 13 (18) 1.:. (16)Ex-Factory Price 4,65s 5,044 2.292 8,089 3,393 601 16 5.17,Processing Adjustmnt (2) 74 26Proceming Coat. lIe_ by-Product Volo 684 /r 1.864Hill-ote Prico 2.726 2.792 1.211 576 2,268 173 0Transport (Farm - Hill) /d /p 12 12 9 48 /a e 9 Oa)_, ic Far_-Ote Price 2,714 2.790 i,202 0 mg 2.252 0 1,726 e

Financial Price S.300 4.600 3000.0-4000. 4.000 60 14.500 3,000 460 2,260 786 2.000 1.600

VEM 2000 IMCE

c.i.f/f.o.b. Shanghai: (S/t /t 16m 1729 on6 9.6 695 2,796 1,024 144 S4 48 SW 2.068CY/t5lb 0 0 6 .415 3,M l S. *67 2,578 1030 3eo799 re 542 2,0U2 I' I,2 on eTim

Port Charge & Distribubore Hergin /c ((200 (1798 (1 6Transport-Port to d,oleealer /d te 29 tJ t3 t te9 61 2Q t2 n5 (3s

E41i11 to Wolesaler /e Si4668 (24) 2,C1 N (18 S (13) (18) 1) (15 (0_Es-Factory Price 5.11 .2 9,82 3 o6, OProcasino Adjustment C5) 74 26Processing C_ot. I_ by-Product Vlue 6U4/r 1.654Hill-one Pr;ico 8,190 3.269 1.211 61l 2.2611 1,786 1.2WTranaport (Farm - Hill) /f (1 (12) (9) (16)/Ciconomic Farm-Cot. Price 3,170 3, 1 1,220 0 62m 2,2 1674 1524Financial Price 5,300 4.00 I 000 0-4000. 4,000 660 14,500 .000 460 2,250 786 2.000 1.800

/a World Bank Price Foreat-s. October imU. adjusted to Horch 1969 onetant prices./b Exchange rate of Y3.71 - US1.O0/c Port charge of Y26/t. adjusted by CF af 0.70. plus 95 distributora -argine.14 Approui_etly 960 km by rai l at O.02/kt, adjust by CF of 1. /a Approxi_tely 100 km by road at Y 0.2/t. adjusted by CF of 0 .9/f Atroxitely o0 km by road at Y 0.2/t./ Thai 6 brokenei, fob Bangkok.

U.S. cif lotterdm/i U. S. D. 2 yel o. fob e Culf Pe t.i Canadian MD. 1 Wstern Red Spring (OM) 13.31 basis in store Thunder Day.fao N.W. Eirope.

/l Sulk, fob U.S. Culf./a fob Vanower./n Jiengsi Foreign Trade Corporation./a Heat pricm increaee beed on U.S. bef import Price index; eaelog price increase baed

on Week African SAELLI ltog price index; presrved eq, rosin, bnasel and pearlprices gre based on current fob Shanghi; fi_Il price in based on current cif Shanghai;tee price increse baae on Leudon Auction price index.

/p Approuietely 801 highr for live pig sad duck, but 806 lwer for eawlog on a cubic eter basis.Ic 1967 fob nd cif reectiv-ely./r Auming SOS roein, and 206 roein oi l at Y2470/t./I Asesing 10 mn-day for fel ing and houl ing sad Y 1/eS for transo rtation adjusted by ct of 0.90./t Price per 10000 units.

X - Eport" - Imort

ANNEX 4- 78 - TpXIe 10

Page 2

JIAYI AMlCULTPt#L 0. O#W Mt JB.T

Fa IeC PriCI Deriv tAi n

Rice/Paddy laybean tlz e wheat Urge DAP

Net Trade Status X X X H M t H

YEAR 141119 PRICEWorld MPe rt Price (U.S.1/t) /S 29 179 172 217OceanfFreight s0 46 10 84 34C i.f/f ob. Shangh i; MeAO/b) 2J/ 26 9/h 104 /i 226 /J 202 /b 261 /I 126 /m

(Y/t)/b 1,I060 97 au67 748 932 416Port Charges A Distributors Margin /C (112) (107) (12) a6 6s 101 s9Transport - Port to Wholeslesr /4 (29) (29 I2 29 29 29 29

- Mill to WhVolealers /e :.e) (le (16 is (16) (16) (16)En-Factory Price 1Proes& ing Adjusteent (1) 70ProCessing coat. Ioee by-product value 20H;ill-bat Price 610 648 211 937 679 1.0oc 572Transport (Fore - Mill) /f (9))Ecoroic Fare-Gat. Price 01 92( (9,) Ie)Financial Price 340-640 1,600 520 828 640-676 220 soo

YEAR 2000 PRICE

Vorld Market Price (U.S.J/t);a 212 162 1i9 277 107Ocean Freight 30 4e 30 34 34c.i.f/f.o.b Shanghai: (USl/t) 237 162 104 20e 219 311 141

(Y/t) /b 6S0 673 367 770 6ll 1,156 524Port Charges Diatributors Margin /c 97 78e (52 87 91 121 65Transport - Port to Whol*ealers /4 29 291 {29 29 29 29 29

- Mill to Wholee lers /e 16i (16) 16i (16) (16) (18) (18)E.-Factory Price J7Processing Adjustniet (%) 70Proceosing cost, leos by-product value 20Mill-Gato Prie* 502 649 266 667 946 1,823 633Transport (Farm - Miltl) /f (9) (9) ea4)(9)Eeono-ic Fars-Cute Price 498 540 9V 9a9 e 9 1.114 626Financial Price 340-640 1,600 320 525 640-675 220 500

/5 World W ank Price Forecasts, October 1968, aijusted to March 1969 constant prices./b Exchange rate of Y3.71 a U531.0 ./c Port charge* of Y25/t. adjusted by CF of 0.70, plus 9s distributor'. aergins./d Appro, imutety 960 km by rail at YO.02/t, adjust by CF of 1.5 /9 Approniestely 100 ik by road at Y 0.2/t, adjusted by CF of 0.9/f Appronitatoly 50 ka by road at Y 0.2/t./g Thei 5% brokene, fob Bangkok./h U.S cif Rotterdam./i U.S. No 2 yello-, fob Gulf Poet.

Canadian 1o I Wesetern Red Spring (CMRS) 13.8S basis in store Thunder ay.fob NW. Europe.

/I bulk, fob U.S. Oulf./s fob Vancouver./n Jiangli Foreign Trade Corporation./o Meat prices increase based on U.S. beef Import price index; ewloz price increso. based

on West African SAPELLI log price indeni presrved ef roelsn, oneal end pearlprices are baaed on currant fob Shanghai; fishmeal price ie beeed on current cif Shanghal;tea price increase based on Loudon Auction price Index

/p Approliastaly 30J higher for live pig end iuck, but S0 ioer for sealog on a cubic meter bmals./q 1967 fob and cif respectively./r Aasuming M0M rosin, end 20S roein ol lat Y2470/t./a Assuming 10 men-day for felline and haul Ina and Y 15/dB for transportation adjusted by ef of 0.90./t Price per 1000 units.

X - ExportM - Import

79 -ANNEX 4Table I I

UMM MK"N-4 01111111 40 0 PO SINMOR

M v

S 4 s fd 7 8 9 Le 11 12 13 14 Is 16 IT II 19 14

mur

KO-0 I" MA ULO W-0 01111,4111, MAI W:: 1" MM MIA 0: 0 Id:: ML :::: Ul:: 111::WA IMM WA W." now 1010 M W.0 own us-Of us: M:: M 1W.: he fts �to

Rs of la . 40.0 4010 0.0 4111170 W.* 41110A WA 40.0 66.0 41141.111 W.* 40.0 414.41 416.0 410.0 411.0 414.0 410.0

lm "Moon a(UM) 2.15 3.10 3.70 2.11 5.71 1.70 1.71 1.10 1171 1.10 I.If 1.10 S." SIP$ 1.74 SJO Lft 5.76 5.76 3.141ISO oil ofeft%WAL4W - 2.6 5.14 sm S.70 1.11 11A 1.14 11.1111 3.76 5.10 SA SA 11.10 3.74 LM S. R 3.70 11,79 3.74low *&AM � 2.6 &M $A 3A SJ# 3.11 3A SA 9.10 3A IA SJO 3.7# 3.71 3.70 I-N 1. if 1.71

0.0 - .11 046 4.0 0.66cmi 0.0 I 0 - 0.0, - .. W,

ell. =Lftw) - it�wow, NW , 1. 0. 0. , 4. , #. , 0. , ::N 0., 0. ,

a a n n a a a a n n 35 25 a na"2"IM Vft) O-U LA 11-111 1.2 O-N I-V 1.3111 11.111 6.8 6,1111 4.3 0.0 CO I-S Ln 9.2% 0.23 0.25 6,25lawwm sft) - 41.13 4.8 4.8 Ca 0.8 1.2 11.11 1.3 IM 4.25 0.8 I'm 4.8 1.2 Cn CIS C25 CM

oft ism(t) 2=.N 4940 41,62.411 41411.0 W2.0 460.411, 419.411 0611.0 460.0 09.0 4,12.0 UU.0 469.0 4116240 41,111,101 46414111 461246 411162.0 4"2.dl 41142.69:11: MIA 4W 0 46= 4W:: 41621 4ig-0 W2.0 4ig-0 469.0 4W.41, 4idAt 09.0 *62-411 4662-id 4462.0 46,12.6111 4662,66 41162.1,111 4662.611

Ila:a nv o av M, a 33v-w np.n nv.w nv.w nv.n nv.w nv.o =.* 2um, m,,w zw.u nv.,, nrls zm.wtool ms m�� to 233 O" 1"" M 11,162.8 1149.31 111,62.111 1169-N 11,60.811 114611.31 114U.X IIW.31 1169.28 INA2.311 MUM 11662.20 ILW.2011662.21 116,62.16

.,ICVON VI 2 2:0 2.6 2.90 2.95 I.99 Ld 3.01 3.11 1.13 3.11 3.17 1.11 3.11 3.11 3.17 3.17 1.11 3.17Im .11 bmwit W7.13 19M.16 P04I 33M.36 IM .n 343115.11 3,41111.64 311111.49 11M.32 WM.N 11040M JOW.11 3614111.17 30W.17 300.17 W .17 300.17 1,19,19.11300.17 3690.11"'ll *M .. " . 400.06 4111.401, OWN 4011.0 -494110C., 1 :: I � mt t) 410.49, 4"Acull to - I" lo(IP 246,01, I46.1111 246,0 244.0tGUI M IM -MMAIM11) 4":a* 400 2% 4ft.. 14a:: : 00.0 MA 246.0 499.11 4".111 246.0 410.4101,1.11 to NW 2n: 223 4411.411 446.61 U3,86 446.63 446,63 223.ft 44.63

103.47 2,111.141 M.1; M.14 206.141 mi, 14 "11.14 3,16.14 W.94 06.14 M.14 246.14 20644 M. 14 M.14 246.14 Mt. 14 206.14 206.14 206,14103.47 M.14 M.14 206.14 2k. 14 MM 106,14 M.14 W. 14 2416.14 20144 M.14 21101.14 206.14 M. 14 266.14 261.14 216,14 246.14

51m 103.32 143.32 IN-32 101.32 141.311 143.32 Isix 103.32 143.n 163.32 1.3.32 103.32 IfIX 103.32 IOI,!2 103.32 103.32twatt,o kwit 103.07 3P.N 463." 110-W $13-30 313-P III1.311' 1113.99 515,99 513.99 M." 515.110 515.9 HIM 515." 515.1p 1115.59 SIS." 511.". Us SO

total mwtt 6430.22 M IX MW.n 34EI4.41347N." IM -63 W".23 3ag.71 311,14111,54 UM-39 DW." IM1,31 IMI,P VM.63 31464-77 rm3l.P IMI-19 3770.63 r7414.77 Mli.Pivaroory CUT

&TA.50 d1111,9114.40 IN.&II 131.911, ".11116.24 29-311

110COPIN ASIMMINa 27 0

an.1111, OWN =.Is 66.m

POWTIO cmt

2.79 1 73 Lm 1.75 3.04 I'm I,n LIPS 3.44 1.75 1.75 1.75 3.64 1.15 I.m 1, 71 3.04 I 1 II's2.79 IM 1.13 1.15 1.64 lln I.?$ 1.71 3.14 1.11 I'n 1.75 3.04 1. 15 :,15 I ?s 3.04 I. 15 I.'S

IKIi mi M : 21" 1 JS 1.73 1.75 3.14 1.75 1.15 1.15 1.64 I.TS 1.75 1.73 3.64 1.111 1 75 : 19 LOA 1.712mi-O 14A 1431.31 1431-11 M .n 1431.0 1431.11 1431.111 Nk, n 1431.9 1431.36 1411.38 M M 1431.* 143116 1411.59 24%. 17 i431.50 i4m.W

t': ""I nu:: 14111.111 1433.0 1431.9 M .n 1431.911 1431.3. 1431.0 M ,n 1431.111 14311-is mi-se 24k.n 1431.30 1411.39 1431,54 2486.12 1431.54 1411,56-t ,00 W) i14J." W." 717.911 711.36 124.0 717.0 717.111, 717.31 1246.0 717,39 117.18 717,111 1246,61 711,50 117.50 71�,% 1246.40 11 7. St

toui IKII Mi 221- vu-N 4m.0 m-P 4im-n ma- 410.0 m-N un-n awits-72 #w.o m-s on.77 4w-n 4to-o m." wis -72 ". 72 4104,48 210-04'All, tft� II-10 23 23.0 23-0 23-0 23.4 73-0 23.0 n.0 23.0 23.44 23.0 23-46 23,01, 23.0 23.40 23.0 23.04 23,01, 23.00

t/m n.w n-o n-o ma n.w n.w n.w n.w nm n-o ii-o 23." 23.ft 23.0111 23,40 23.04 23.00 MO11.39 n." n.W n-0 n-0 ZIA III.* n.0 23.0 BA 23.0 23.04 23.4 21.0 73.00 21.64 23 0 211"

907.0 IM4:: 110 :: 1014:: .10�::: 104:: '100::.* .111141.0 1111114,411 111114.0 1111114.0 IM4,0 111114.0 1814.09 1014.06 111114.14 1814.0 1014 01014.00 IN14,001111114 M 4 1014 0 11111114,4111 11111114.0 111114.4111 1111114.0 ION4.0 1014.0 IN14.0 111114.011 1014.0 iNI4.0

floW I - 4111.0 114110.1111 94311.111, 94110.49 11431.0 = '4111:41411 141110.0 "11.0 941311,011 94311.1011 1411,41111 NS1.401 '.34.1011 9414.0 0434.0 9410.00"07:: 111101:1,0 41M 0 IIM:* II:: 00:0 4M 4711111.111 4ME.0 41111111.0 4NO-68 411111,411 4" .11111 4?M.N OW N 471119.0

to" .,: M,, VI, 4 a #:, 4V 0" 4.2 4.54 .34 0.2 6.9 Ca 4.53 1.13 O-U olss 0,53 0.53 1. S3 0153fm Mt %".V 160-17 N011.3111 30017.111 36M.46 30417.11 1102.67 11111111.44 M Y-31 311311.97 W411,74 24M-51 24VMSI 24M.31 24M-51 24M.51 24PI2.51 24M 11 24M.51 24M.5,611KII111111411) 64-34 Ill-12 XPA W-54 347-n M-0 M.V? 30-66 3ii-If 30.32 V1.4111 3R.31 3".11 377.09 J74.15 JN.II 37q.31 317.09 374.0 I".11

I WA m Mt ?"I." no.10 3pos.v mm.of 114117.4111 311G.76 mg.$11 pw,V = 9,76 301111.91 20411111M 3F?12.V WW.54 WW U PM.76 9712.12 29767.54 ?9744 -31 M36.76 272100.112

toui mi 141"AR PM-P OW-6 111411116.12 314"A 31143.76 31,19.41,11 194111.11 NW.?6 ihu." 11411111,79 W12.2 2076734 717611.31 "M176 willn 2970,54 "765 11 2M .74 2731-02

,W% wwtt -130.0 -711114.4111 -330.11 3W.74 3M.S 11111111.07 5341.19 03.13 ad.X 66P.X 7tW.I4 M1.47 1163.0 7941.31 U411.01 1211.47 2113.15 -43 11 12411,61 ft%.57

Im"MI 'an of Amit." or on it,ao

1ITOY 21 an

9NIrmto win AT In

4,,1111111, SVM IN mmm iKVKK WLUE cwm

ell 224,061.31 4 -?.M

El 1,60. 1, -1,114:64124 1.314.74 - at? " _411a EM

C, 14,163,31 wm.lo IWAR,.C 9113111.P 224,#l7.17 1 in

Mk 111111IFtIS Im9m.. 212."4.0 .?.MM% Cam 21204.41 2N,M.4� 7.6n

4a p $W veie 44 412 1 Id.2111.41 !A I Raw of WAM , 21. ncrow tm"lwt bu of bwm - mn

E1 miim m 34Rct

I aillim

1 2 I 4 A 7 I 9 t0 11 12 IJ 14 I5 1 17 Fe 9t a 21 a 3

nl 11.2 32.3 47.2 51.5 54.5 54.1 33 51.4 57.4 57.5 57.9 59.2 59.2 9.0 .11 59.2 59.2 3.9 3.6 3.3 ILI 11.-1NO 47.9 30.9 145.9 151.3 154.0 151.3 157.7 13.9 136.3 161.2 162.3 142.3 162.3 I.3 12.3 32.3 .3 16. 2.3 au I. 3.9 -P1111 19.5 4.1 62.l 76.2 .7 Q.3 M2.1 R.31Q.4 Q1.4 340 1.5 Q.5 Q9.5 U.5 22.5 U.5 U1J U.1 . 34.6 3.3RD 3 - 5.3 *.2 13S.0 151.2 11.5 13.3 14.5 14.9 145.2 143.4 141.7 34.7 141.7 141.7 141.7 34.7 141.7 t4.? 36.7 - - -Raw - 7.2 116.1 36. 34.3 393.3 m.a 1"9.7 3.2 1a7.5 ".6 9.7 9.7 399. 399. 399.7 9".7 1.7 W.7 .7 -

- - 4.3 6.1 S.? 8.1 8.7 10.3 12.4 15.9 19.4 21.4 22.6 2P.2 37.9 W1 9.4 32.4 2.4 216.7 .1 3OL2 46IE -4.4 -3.4 5.0 133.3 31 5.7 62.3 15. 67.7 71.3 71.4 72.5 72.5 72.5 12.5 72.1 n2.5 72.1 72.1 7 n. 6.4 U.5

Ma IBM 71.2 11.4 4. 616.9 67.0 M.$ 7 731.9 73.] 73.0 737.0 73. 7. ?4. 7.2 74.2 770.3 7M0 7MY 919.7 WA U 7

M 13.5 10.1 5.1 0.1 - . - - - 0.3 0.4 - 0.3 - 0.2 -- F121 104 9. 4. - 6.7 6.7 3.4 - - 6.7 6.7 3.4 - - 6.7 6.7 34 - - - - -

fPml 2.1 30.2 30.1 0.7 0.3 4.1 3. 1.3 0.2 2.9 6.4 2.1 5.9 0.2 1.0 3I 2.0 0.4 - -. ; .1 - . 00FM Q1111110 3.6 2n.6 0.2 - - - - - - - 1.7 1.3 .2 1.5 - - - - - - 9.4 - 0 NO.3 SIII 27.6 14.1 0.4 0.1 - -. 9 6.2 0.- - - - - - - -13 - -

F11111111 ~ ~0.7 L.7 9.3 5.3 0.0 0.0 0.0 3.0 0.3 0.0 0.6 0.0 0..0 0.0 0.0 0.0 0.0 0.0 0.0 03 0.0 -0L2I3A 12.3 30.2 21.2 24.4 - - - - - - - - 1.0 - .9 I.1 2.3 2.9 - -

IIUI O T 3F2.6 104.4 51.1 31.1 0.3 11.6 10.3 4.1 0.2 3.2 23.7 1.0 3.6 2.0 1.9 2.0 11.0 6.9 00 -1.2 4-.2 0. -. 2

M 13.4 31.2 6 .3 6.0 4.3 6.4 47.0 46.0 41.2 47.0 6.9 ".9 46.1 41.5 6.7 44.9 4.4 6.9 6.7 NJ.2 316 -NOR? 51.7 310.3 142.9 35.9 M4.3 1426 141. .2 I3J.3 139.4 13.5 3IJ36.6 I.4 134.0 334.0 133 4.0 3a . 336.0 IN. 7.2 3.1 -F31 9.l 13.5 43.9 6.5 49.3 3S. 4.3 46.9 6.4 6.1 47.9 47. 476 7.2 47.0 7.4 47 47J. OA 0.0 176 4 -ffO 1 - 2.3 U.9 13.I 3277 32.4 325.2 I1.4 M1. 3I 136.2 336.7 116.7 I33.7 116.7 IU.7 116? U67 IU37 1307 - - -NO ?T - 3.0 36.9 113.4 135.3 136.9 M. 10.1 131.4 142.7 133.1 144.4 16.1 24.3 16.1 14.1 36.4 14. 3. 16. - - -f93G 0.' 0.5 4.5 6.6 3.4 0.2 7.9 3.2 1.9 9.7 9.6 9.1 3.6 113.5 31 34. 14.9 104 3.L M. 3. 3.IE -1.1 -2.3 1.4 1.5 34.6 42.4 4.2 6.1 41.2 4.1 47.3 4.0 47.0 6. 47.0 04. 6. G.0 3164 3.1 3L. Ia

T3 M 03AIUM U.3 31. W.6 49.7 126.t 34.9 33.4 32.6 33.1 54.1 541.7 147.7 54U7 513.9 S. 544.6 U.7 311.6 5O1 369 140.7 n.9 3

L2 tNT 24.9 37.1 44.3 59.6 52.2 66.5 533.7 357.3 5D.3 37.3 5J.4 5u4.7 512. 51.9 14.7 1.6 '2.2 .S NO.3 37 13. 7. 3.

IS own -121.7 -91.I 23.1 0.1 14.6 134.0 145.0 156 164.0 372.7 166.6 374.6 13.4 M3. 20.l. W7.6 1 MA 2Y6.4 3S . 2S.3 U4.7

t 3bb=d~~~~~ bi fbmo tir

_|_ _l"IM

- 81 -ANNEX 5Page 1

CHINA

JIANGXI AGRICULTURAL DEVELOPMENT PROJECT

Ooerating Guidelines for Jiangxi Agricultural DeveloRment Corooratio

1. Operational Principles. The Jiangxi Agricultural DevelopmentCorporation (JADC) shall:

(a) conform in its organization, financial structure and operationswith the pertinent regulations of the State Council, including theregulations dated August 14, 1985;

(b) maintain consistency in its lending operations with the policiesand regulations of the Government of China concerning terms for provisionof loans by financial institutions to farms and rural enterprises;

(c) follow, in its operations, principles of financial managementdesigned to maintain a surplus of operating revenues over operatingexpenses sufficient to safeguard the financial viability of the DC; and

(d) observe the principles of investment decision making consistentwith the most efficient use of social resources.

2. SDecific Guidelines. The following guidelines are accepted aspractical expressions of the above operational principles, and should beapplied to all JADC operations:

(a) Capitalization. JADC should maintain a minimum registered capitalas required by the State Council regulations dated August 14, 1985. As theJADC increases the size of its debt, the amount of its capital shall beincreased so that the ra.io of capital to debt is generally not less thar.1:5. The capital increase may be derived from (1) retained earnings; (2)equity investments, including investments in income-generating fixed assets(measured at book value ex-depreciation), provided by government, othereconomic entities, or individuals; or, for the purpose of these guidelines,(3) loans received from government which do not carry fixed interestobligations or fixed repayment periods, but are repayable on termsdetermined by the actual future financial performance of the JADC andsubject to approval by the JADC Board of Directors. "Debt" refers to anyloan or credit bearing either fixed interest or fixed maturity other thanshort-term credit for working capital purposes. Adequacy of capital inrelation to debt shall be reviewed by the Board of Directors annually, onthe basis of financial performance of JADC during the preceding year. Inasseasing the financial performance of JADC, the profitability of projectsfinanced by the JADC will be taken into account.

- 82 -ANNEX 6Page 2

(b) DisDgsition of Net Earnings. Distribution of JADC net cashaccruals shall be determined by the Board of Directors only after adequateprovision is made for depreciation of assets, lending or foreign exchangerisks, and working capital. Net cash accruals under the JiangxiAgricultural Development Project, due to differences in timing of repaymentof loans by farmers, households and enterprises to JADC, and JADCrepayments to government, may be used by JADC, after the above provisionsare made, primarily to finance development similar to that undertaken underthe project.

(c) Investment Decisions. The decision to finance or participate inthe financing of any economic activity other than those described in theStaff Appraisal Report of the Jiangxi Agricultural Development Projectshall depend on a prior assessment of its technical and financialfeasibility, which will be conducted using techniques and criteriadescribed in the Project Appraisal Manuals of either the Agricultural Bankof China or China Investment Bank. In the case of agroprocessinginvestments other than those already appraised by the Bank Group and forwhich financing is to be provided under the Jiangxi AgriculturalDevelopment Project, the feasibility study must be reviewed and approved bythe Bank Group; approval criteria include a satisfactory study of productmarket prospects and a minimum financial and economic rate of return of12%.

3. The above guidelines will apply to prefecture and county levelADCs and any proposed changes in these guidelines will be made inconsultation with IDA.

-83 - ANN 6Table 1

CHINAJIANGXI AGRICULTURAL DEVELOPMENT PROJECT

National Annual Net Tradein Principal Project Outputs1987 compared with 1986 (%)

Net AnnualTrade NetStatus Trade

Commodity Unit Volume Value (US$m)

Live pigs '000 head X 3020 (-3%) 202.0 (+4%)

Live poultry '000 birds X 41150 (-3%) 71.8 (+2%)

Fresh/frozenpork tons X 99964 (-4%) 172.1 (-2%)

Frozen chick tons X 16768 (-40%) 25.2 (-32%)

Fresh eggs m eggs X 1109 (+4%) 42.9 (+17%)

Aquatic prod. tons X 218210 (+31%) 702.6 (+47%)

Tea tons X 174279 (+1) 362.5 (+11%)

Feathers tons X 19527(+102%) 93.1 (+97%)

Rosin tons X 205102 (+25%) 85.9 (+35%)

Pearls NA NA 25.1 (-38%)

Logs m m3 M 6.46 (-10%) 529.1 (-13%)

Pulp tons M 683,343 (+31%) 370.2 (+83%)

Source: 1988 China Itatistical Yearbook (Beijing: SSB, 1988)

- 84 -Atzzax 6Table 2

CHINA

JIANGXI AGRICULTURAL DEVELOPMENT PROJECT

Jiangxi Annual Not Trade in SelectedProject Outputs

1987 compared vith 1986 (%)

Not AnnualTrade NetStatus Trade

Comodity Unit Volume Value (US$m)

Live pigs head X 186,775 (-8%) 14.04

Live poultry birds X 130,000 (NA) .23

Frozen pork tons X 977 (-10%) 1.25

Froz. poultry tons X 92 (NA) .11

Fresh eggs tons X 956 (-25%) NA

Preserved eggs m eggs X 1.89 .16

Aquatic prod. tons X 153 .37

Black tea tons X 580 .31

Down products X NA 16.94(+76%)

Rosin tons X 13,069 (+5%) 5.29

Pearls kg X 4,500 2.50

Pressed duck tons X 897 (+20%) 2.00

Sources: J iang2ii Tongjii Nianiian 198 and Jiangxi Project Office

CHINA

JIANGXI AGRICULTURAL DEVMLOPMENT PROJECT

Procurement and Retail Prices for Selected Project Outputs (1987)

Mixed Average Ia Mixed Average /a Market Price Trade Import/Export Values (Nat'l)Unit Procurement Price Retail Price (JX City Hkts) Status (US$1-Y3.?) (US$1-Y7.0) lb

Live pigs Y/kg 2.33 NA 4.33 x 2.70 5.18

Pork Y/kg NA 3.61 3.80 X 6.40 12.04

Poultry YIkg 3.87 4.92 5.35 x 5.55 10.50

Eggs Ylkg 3.26 3.98 4.20 X 2.96 5.60

Aqua.Prod Y/kg 2.54 3.33 4.25 x 11.84 22.40 a

Tea (Ref) YIkg 4.78 10.00 NA x 7.69 14.56

Logs Y/13 175.00 365.00 480.00 K 303.00 573.30

Pulpwood YIu3 NA NA 546.00 K NA NA

Rosin Y/ton 1404.00 1404.00 2500.00 1550.00 2722.00

/a Hixed average prices include state list prices and negotiated prices and areobtained by dividing the value of procurement/retail sales of each cmoodityby the quantity sold.

/b Foreign exchange transactions may be routed through the Jiangxi regional foreign exchange centerat a rate of US$l-Y7.0

Source: Jiangxi Tongji Nianjian, 1988 and Project Office data

- 86 -

JhzMisI AGMILTIMIAL CMRaUini PM T Table 1Liveeqeehk ls Oitseimg £.dWseter

dietle Ihiik ------ ---111--s ------ - -- ------- - ------ lw----- ------ 4 ------

PIeAed AW%MI Pased e1001 Peased A661001 Plese As_ i Please Lehgh PiurAed Aehig

pormi. feed esel led C

Plg1 *II_et.hmd (demo) a..

Form et

ereedlaip Pegaor wbook psegued Cdinskie) asor ete* premsed (ierted) m

.em. fee ', I led

reedis stoee mid la

Pbowhh.oft steblldiwd ms.sheds esetasegge ea FermI a feed eugg IlIed

Meelk Duck Oh see*beI eohd as.Shded censerecked eq Fermin foe euggied

moe , eesh k iekhd n..shed .ce .elied eqaForm. feed sueIIed a

iggduck U" b IIshod n,o.

Formal. feed a,e,h .ed C

PeuIltry Dr Fe r asts b I ishoed no.Me duck no.Meek duck no.

Egg duck no.Mfe I a f supp I i ed t

Performnce InadcsasrsAni_lo omld by IN

Loa I gs no.

O d-ucks no.Pleet duck no.Osess no.

CMl Oeip ducks no.

PriceLeon pigo Y/kgCull pigs /kgMe duckse Y/kgmeet ductk Y/LkC-@oo Y/he

e d ucks YVh/k

- 87 -

o AMX 7JzaMI zOtLJW, i _AUf M_= Table 2

Ageqeajlhre NWV ~lhmerlag ludl"eatr

lodIcater Uit -- -- lo ---- -- lw o---------- low ----- ------ IUA------

Plaued Aualwat Plaed Actual Plagued Actual PIw.ed Acal Plawued Astual Pla.ued Act.all

Auweculture

brhheeb e

bildi a a

Mb wIth Olssoe*b aIth ducka,-

Duck S" -4 n.

Not oftedgeude ha

Cratenagbuecal.

Peeerne _1-e.r

Fil"l ti_ _ tOuheed e-.Mbi wit -la Sbwit duih rne.

Fih bfrroir b he

Nt we.leere ha

erfereauca indsh<ora

Fish fre nec eownd s t/haFis free i_rov.d tonda h/hFish free i r, /haFich frea net ancleaurwa h/haFish fr,e ce8ee h/eq

PriceF ih Y/hePearl*. Y/k

Cost of productio.FiA from new Vnd, Y/ttFich froe giwrocdi pond Y/ktFish froe barriers Y/keFih , fre et enciloeej*& Y/iFish fre cage. Y/kgPearls Y/he

JIANIOI AGIOlLlAtAL VELOPENT PROJECT

Tea and Forestry Key Monitoring Indicators

Indicator Unit --- z-1 991- - - - - -- - -1911- -- 1991--19--199S-----

Plenned Actual Plannod Actual Planned Actual Plonned Actual Planned Actual Planned Actual Ploane

Ta rehabi itationb plm_ntetlonIpprevm_t heMeinteanc haForb111zer applied tLabor day

Production IndicatoreYields t/haSal_e tFaor_ate price Y/t

Primry preeeaingFactorle under centruction noFaeterlee in operation no

R'i neriesFactories under conetruction no.FactOriee in operation no.

AfforertatianBuildlig construction

Off;a 0 Dormltorie eq aFire towers PoFire stations no

Telephon line be

Tracks kmArea plonted heFertilizer applied tLablor aday.Se dlIngo Do.

t ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~ -

- 89 -ANNEX 8

04D. Table 1Jiangui Agricultural Develeoepnt tte Page 1

List of £9uisswet

tUnit -- ----- ruremt t ---------unit Price uantity ICI LII LC Other Total Cs;egm..r 1.Aele

(V) Aaunt A n Aunt Amaut Amiat (Y) (UN)

LITvTOOt 1D "ILLSA. 20,000 0 Ceneen4..te 0ill. (2)

Eiquipmt - iaerted 2794.400 t.640,00Cmii- crct.*r J 1.56a5 68,070 U,070Ibtory conveyor eo 29 ,60 1 474,UO 474ti00V 00We 388.10 14 467.460 467'40tPe lot mItw (ece) e 4010 1 1 ,60 Um e0Poa._ a*..v ee 44,:01110 I 0.040 I",040Permenet mu'.t deviceso * 1.110 4 44 Sao 44.80

InCcl i of 46, 4 126116100 15.600oOrinr ne. *l _bw of 4t,"0 2 ti,4tiO tt,41iOScr e onv.,. 4* *,16 2 44.,tO 44,JOSerea ftar *e 12",2 42 548.8o 8ti,870OlDtributing mole (.larr *g IOitO 2 207,7ti0 207,7t0cletrilbutine mea (l 1 4I 2tO 2 26,440 "26410Nation acrlt *n 4,01 2 0,142 6,.in

Iosfr C lI Ino buffer) *e 116,720 2 2t7,440 237,4401i..- C_11) em SlU51g 2 106,660 lot0,W

TurAhdi latrLbutor e o 50,00 2 100,170 100.170Di0aribut,r as 2".0 2 9,3860 8,8i00Shaking sieve em 4 ,520 2 "9040 02,040P1et ng mctuhinr (inc fe as 2ti.700 2 51.400 519.400Cooler em 58,680 2 111.300 111,300Cool la atnd wind *be syst 0a 31.J38 2 68 070 68,070Pe.It or;inder 4a 4,061 2 S,162 6,1612grading seen m 44520 2 6a040 At09.040Pack i no ace Im 5t 8600 2 1I ,720 11S.720Serving line e 40.610 2 8 120 1 ,T20

Detector as 742 I1O 96,460 9f,4t0Throttle alue and tee Jo o 926 120 111.300 111,300Ventiletion A dutt guard LI 61.020 2 163.240 163.240Pipe and auterialsa,fo in LI 88,890 2 64.760 84.700Hotae ee fat rec. A uddin LS 70*490 2 140, 2w 140, fOAir cooaroa or ayate LS ttiow 2 137.270 137.270Controlling yete- (inc c LS 742,000 2 1.444.000 1,484.000Sear. part. LS 74.200 2 t46.400 148,400Steelru"a uhophu ut or LS 7040 0o 2 1,409.000 t,409,00Mlsee Itrnee LS 192 17S 2 364,SS4 364,6 8Physical Contingenle;u io.O6 0"O 400 6S, 400

Equipmnt - local 2 1,1,00 879 944Tranafor_rr, panels, atc LI 191.500 2 808, 0O 6,000Lighting LI 60.100 2 120,200 120,200D eign cost. LI 90,000 2 150,000 60,000Soilers *u 85,000 2 70,000 70,000Water troatont ea 38.000 2 70,000 70,000Weigh bridge go t0.000 2 60,000 60,000Control equipment on 94 400 2 192600 192, 60InstalIation LI 440.000 2 6iO 6 it0 .OOOPhysical Contingencies 10.09 239,20 15.320 9lWt60

S. 10,000 - 18,000 t Forula foed will* (8 0 10,000 t, 2 lS 1,COO t)

Eq:uiu_nt - imported 21,002000 8,66.00111Inta C nd ,rinding LI 30.O000 5 1,l00,000 1,00.000Deoing auction LS 684,000 5 3.270.000 3,270.000HMiing section LS 315.000 5 1.87S,000 1,875,000Pe1leting section LI 648,000 5 4,215.000 4.21S000lagging installation LI 271.000 5 13C.000 1.3U5,000Spouting LI 54,00 83 270.:000 270,000KEloctr II ta t tio L t2 000 S 1,750 000 1.750,000Spare port. LI I58 ,00 5 775.000 778,000Adding of tiquid LI St8.000 5 168,000 1,000Dust sapirution filter LI SSM 5O 17S 000 178,000Noise Insulation LI 61.000 S 806,000 306,000Duat aoeirstion for intuk LI 30.000 8 180,000 150,000Tlai for uola"ae -ddit;io LS 20,000 5 100000 1OO,OMolDaa" ee;no unit LI 36000 5 160.000 160,000Sieveo and hears fo- ha LI 5,000 5 25,000 25,000Die for pullet mll - 6 LS I1.OOO 5 20,000 90.000Dies for pullet al1 - 4 LI 22.000 5 110.000 110.000Packaging. tran_porL LS 250,000 8 1.250.000 1.250.000TA d*ring startup LI 3JlJ000 5 I,580000 ISSO0000Physiccl contingenciea 10.09 1.912,000 1.912.000

Equipuent - local 1,028,000 291,214

blctr,cal LS 96,000 S e9u u..i *'u11Alo;ler es 88.000 5 17S.000 175,000Water treeatnt as 35,000 t 175,000 175.000Weigh bridg 30 * 8O.0 5 150.000 150.000Nepar equipuent LS 6.000 5 40,000 40,000Phys;cul Contingencies 10.09 5S000 53,000

C. 5,000 t Foraula fed a;Is (3)

Equipment - local 52ilt.462 142,44tElevator on 4500 12 U4,000 S4,000Cran cleaning acroen es 2,420 S 7,260 7,260Pordor cleoa;ni screen es 2.420 3 7,260 7,260Coke breaker to 8,000 3 9,000 9.000Grind- ma 4,000 3 12,000 12. 0C0Weighing mchine e 2500 3 7.50 S 7, 5OHl Nar e* 4. 3 13.50 S0 12,500Wineb em 16 00 3 5,400 5 400Winch m 1.00 9 13 lS0 18,500Winch ea 700 3 2,100 2.100E.trartor as 10,300 3 S 80,9 80,900Microcomputer so 2,500 80 75,000 75,0CO

ANNEX 8- 90 - Table I/Page 2

.- P......... Pu,_g l "11 - ---------UtR; PrIerl bs.t; CtUy , L LC Ot 0" C.o tl c . t

Eloctrea.ic contrlle as 3.J00 30 0,o000 90.000so 14,.am 3 42.000 42 000

N.agaUsnl.eus LS 20 000 3 .o,ooo O,000Isotelletion UL 17.000 a 51.0 o1 000M ;sicsl Con -tin.Ci* 10o.0 4a,042 48,042

D 2300 t f*ei 11 a (16)362.600 103,161

mac 1Rory La 1io0o 16 176,000 17,OO0'eel. .t.. UL 7,500 6t 120.000 110.000ln.tolo it LS 1,O0 is 14.000 16,000098.. LS 2.2110 06 36000 36.000Ph,.Igo$ CqR%.q"ni. L;1.0 34.80034,8000

. 0 9 uoca Ia Pee a IIe[ (26)e SOO t Fteul Fei *11 1 (2lj ~~~~~~~~~~~~~~508,420 151.648

NXek....,1 LS 10o0 26 20.000 200.000esel n et. UL 9000 2 234.000 234.000

Ie.teil.te., LS G00 26 13,000 13.000Oke r Ls 0oo 26 1.100 5.30Physisal Ce.tinganci.e LS 10. 1o 51.120 51.20

F Animal pertein foed l 3 4

Oryer to 9."a I 9.oeS 9. S 30,027 U195

memo, * ll so 5,986 1 S.9on 5, onOn.dr *a 4.941 1 4 941 4,943Ni. * 5,940 21.66 11.e0eSe. feoder LS e.588 ! 6,558 655S6otary vfeedsr L 6.013 I 6,013 6,013

PeIeft oee_reoe.r a 19,8190 1 19,590 19,590Breaker cc 4.382 1 4 ,52 4 352SeC e cc 11,377 2 22.754 22,754F. go SW 2 1, 790 1,7SOSrc-. con--yer LS 1,580 I 1.580 1,580SIcre ca.eyo L 13,61 113.613 13.653Elec.tor LS 10,131 1 10.132 10. 32Bucket cane-yo, LB 47,400 1 47,400 47.400Electric block LS 2,9U4 1 2,9 S 2,948Elctric.l t'nefarer LI 78,522 1 76,622 76,622Inetelletion LB 50,000 I 50,0O 0 30,000Physical Cantienocis LS 1o 0o 30,002 30,002

C CFic'-n Dun. FPetory

Processing equiment LS 654,000 1 *5 o,000 55e 030 770,5!iO 207,*9Control instruwanta LS 30,000 1 30J000 30.000In-telltion LS 14. 00 1 14,SCJ 14, 500PymiCl Conti,eenei* LS 100.6 70,080 70,080

S9TOTAL rE ILLS 31,758,460 0 4,677,779 0 36,636,259 36,636,289 9,675,003

FISHBIES

A Pearl Culture (CE144)

Production tools LS 120,000 3 340,000 360,000 412,000 111051mest e N 00 20 12 000 12,000?-1Os 10,000 2 20,000 20 000eotor boat, on 10,000 2 20,000 20.000

-1 Net Enclour.. (CE 946)

Bot. as 600 276 165,600 165,600

C Cuas Culture ((F 147)

Production tool. LS 250 163 48,730 45.750 ISS,S50 41,927Boot *a 600 163 109,C00 109,600

o Berriers (CE 632)

Production tools Ls 400 150 60.000 50,000 40,431Boot m 600 ISO 90,000 90.000

E Nedified pond (CE #41'

Net. es 170 "91 151,470 151,470 35e,400 ",O SCart. so 200 91 176 200 176 200Ottera L SO 691 26.730 26.730

F Ncw ponda - Poyang (CE 943)

Production tools LB 370 969 358,530 386,S30 358 S" 106,639

C Naw ponds - Ji;n (CE 9307)

Production tool. LS 370 194 7320 7,20 7,20 1,747

TOTAL EllIPtWT 0 0 1,093,740 0 1,093,740 1,093,740 294.009

FORESTh

A.Plantation EataL kh_ent (CE#601,602,603)

Portebls ,diaeonna as 1,000 16 16,000 16,000 19,000 5.121Station rsdiophon. so 1.500 2 3,000 3,000

e Rtesearch

MierocoaYutar /FI *c 6.000 3 24.000 24.000 2S7,000 71,968Photoccpia*r /FI es 10,000 2 20,000 20,000Sal I snlysia ecqui pnt /oot 223 000 1 223S000 223.000

-91 - ANNDX 8Table l/Page 3

WIC Pr, e -w-----leg LI I LCO Gthe, 1`Ta I C.allw Total*(V) *meh Au., Aont A_*M% A~% (6) (UN)

CAmel f..t.,

.me'. Wv , some .~~~~~~~~~~~~~~~~~~~~~~~~a 1.6000 .=SRf4Ifl Peal so6,:'16000 oD ollme m l 0 5,60 1 0,060 0o,0ocF Cllh.t 1 40,66E0 4!m eooe0oC *leslf *.a..' . @ e°ee f fi 00.0" 50,000

I S-11_ *iipimg h.ee sewU e oem uo:o

l.llrl * n oe,mee I ne,06o0Xo.0ooCool s ._ 10.000 A 70,660 7e.0oesell I £50660 I £50660 £10.111TOr^Lab beet eeelgem.,t . 50.6 I 30.0O0 s0,000o 00 *lSIem.lBma,eoae :t 11~~~M0,00 I too.060 £110,0601

at o. £1 ms.m mom"37

lMaehl, eeelp( O) 6 O,OD.0O0 1 600.000 4.00,I.e ebecl*XZAg met £80..... .... sD000 1 0060 e O.*OQ

Tv'.; tttt*wt Ls lo 00 02G0 2a

PhEubeip_ CLatl.e. 24oo 124J00 160s0000OMAL 50hzRw moAMoejm M. mecc i. 'os. am 0 1.4414.000 1.694.000 466.604

LIVUTO

A. SWeeding dumb *Islas (co e,37)

3u'mwbmtet (6 pee/ses) set 60,000 23 1,0640, 000 1,640,0cc .?.0 MC. (2on l f pes/set) not 0.060 23 644000ge t.a~,e LS 4,060 we ooo 2 o000Pee.,, Ipetallatie. ~~LS 5.60 23 133.00 133.400

E . We Uaelo oo5 10 100 23 ,2,300 232.300itUsi' *eet.netime y 0.0l6 264,170 36.570 330,740

S flock be. elen farm (Cff. 39)

sea pma..t LS3 246.600 1 26,500O 246,0.00 2330 319Pilyeieal coltiteenc.y 10.06 24.6S0 240680

C~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~s7 JODO Droit fol (CE 2e,wi,. ^* La; 5^o 000 l 520 eoo 52* ooo~~~110000 9,68

IEa...eat LS 1icom0 100,000 300,000 100 29 oPh,eei contingency 10.06 10,000

0. Too 6l,esid in Parme (CEO 40)

Equi.pmmt LS3 100,000 I 100,000 100.000 1000 2.5Pliysical mme~tingmnc' 10.06 0.0 10,000 tlo

E. Pliod,lit,a. fue' (C65107)

Eouipme t. LS 570.000 I 520,000 52C 000 2OO 1410Pty*,eal e@pt,,,geee7 10.016 52,000 52,000

szb',.tal Equipment 2.670,170 0 1.467,620 0 4,337,790 4,337,790 1,169,216

TEA

A P.m_ .y pIots (47)

WIithemiog t.rmu (O/plm..t of 3.000 376 1.12500 1,1mm 6,79,000 2.369,003C,wUl,H.g Amet,. (2/pmme a 3.0 94 202,000 2 e2.ooc.am M.liv 'mth.,:. G/p. * 6 47 212,000 202.030C1.4 I i . log Ame . 4/lplen c e 15.000 1n 2.620.000 2. 20 000Oryio mchM mm 2/plt) *m 1.o 000 4 940.000 e400 WCo,."o mehim I/Plero) mm 19 000 47 93 ,000 9 e000FiI tma 1.000 47 47o000 47o000T'enfrce-. m 17,000 47 799 oo0 799 000Diet,ibuti,o booJ4 es 5.o00 47 235,000 235 000See'. 08rtat LS 8.000 47 370,000 376,000Toe?. Ls 4.000 47 150.000 6 6.000Ph,.;e.l Contingencies 10.06 799,000 7%9,000

8 Refimnig sI*.t. (7)

Stem. _..hi.* (2/plm.t) so 19.000 14 216,000 296,000 1.279740 3449L,l*lm mmi c hoim I3/oIsm ma 4,000 21 64,000 64,000Shoki'o .m.h i n (3/plm.t) ms 4 500 2 1 @4.500 14. s0CUttir. mac_him (2/vl., t) es 1.500 14 210 COO1,0Picking mchi-.. (S/P2s..*.) 1 1,700 35 59,500 S.500S*lect.mm medl,nm (2/i., sa 3.000 34 42,000 42,000PeciE.,, 06ch;mm (3/pl.t' soa 3,400 21 71 400 71,400Ste.. ahab. nm - I. ea 5,000 7 35.000 35,000Piling iic.shiii (I/, mtl) of 50,000 7 350,000 350.000I ma*ruemot. tLS 20 000 7 10o 000 140 000Fl,o C,i 'Cie$ 10 06 116.340 1 41340

C Packami Plant

s1.024,100 276.036Fo ding anchine ma 6.000 1 6,000 6,0001.5,i for-m as 40 0o0 1 40000 40,000Electrical e*ui9pe, ma 40,000 I 40.000 40.000fi.ndsr so i5.00 1 l,OCO 15,000Tool. LS 20,000 1 20,`000 20,000Phy;icaI C,ti;n.ne;*-6 0o 0s 93.100 93,100

TOTAL EWJutIT - TEA 2.303,840 0 6,739,000 0 11,M09 0 11,092,640 2,969, eu

A O,keh. Nbnthe.9 mo She.n,,, (CE1646S 166)

Ill,tche.ing qq.im.t *-t 1,2600000 2 2,560,000 2,550.000 0 25,000 194Y uchlmtrg*rmt,on oqw;p.it set 940.000 2 1,6.0,000 l,eOwoOOSoIled d.ue *9u,.iqmt *SOL 105,000 2 210,000 210,0001eg pmocesmi-o lrkhahop a *me 83.00o 2 166,000 166,000Fots...r .mhioy mod do.. met 510,000 2 1,020.000 1I020.000Electrical e9u.mm"t get 123,000 2 246.000 246,000Sal10 I..et. 40,000 4 160.000 160,000CJmeic8l 6 *sbyimoe * pmaV met 30,000 2 60,000 60,000Office end et.;r 04%,PM set. 124,000 2 246.000 246,000Phym;.cl coriti.6"ei.e .0 o0 644000 211.000 658,000

-92- AN4NEX 8Table 1/Page 4

Unit Prime QW660ily IC$ LIS LC: OToe tale Co "Pry T7(Y) Amount A A A (Y) ()

S. 80- _ Pd 1 4Fr (C3i91U.163) a.291chek.ring a m i; st , 1.260,000 2 2. a0,00 oo

lWr hraio eqJ,ilimmt ml 450,000 2 900.000 900 00OPe.sher .ehlnjdas *es Om 2s670o0 2 no,000 SMO00S.her uli_t l 2500 2 59 000 59e000Physical eel*g , io. 0 366,OOO 59400 406 400

C. amposele Sulehan Po plant (ColiS)

sel1d dic procssing set 2"4.500 1 294,S W*4,*aPnIet, set S.SW 5. I 5,300 5300Physical con1eno"cio£ 10.03 1 30.000 30.000

0. Kangshn Form Prmea|ing Pluct (CE 167)

Outch eriing .quipmn : % 32 0400 1 36IO m o 649,220 174.992n0f }riveetn O"Iuw * % 20^4e 1 206,400 2"04o00Duch *ii" MWIMm t* * j m n A 1 20.000 20.c00Inl%;Ilation and d!i on Ls I 32,000 3520ooPhyolcol contiftlperinc;e 10.01 1 59,020 59.020

E. Eld1rdoan Product. Proc.ing PlInt (CE1164)

Electronic stitching mach set 1.700 2 3.400 3,400 20r,Dutton scoing mckhing ml 1.100 n 6 .60 6,600Sewing machine mel ~~5,500 2 1000 1 0S4ini _cehing got 2 SOO 2700Se cing mach. s - *500 4 26.000 26.000S-s.no machine -t 8,500 2 17000 17,000High asmad saing machina *"t I1SO 342 632,700 632.700Physical Contingencies 10.06 69.890 69,690

F Pie Slaughter plant - Jim. (C5139)

Slaughtering eaqii tn L5 206,000 1 206,000 206,000 2J 979Cool ng & frexig equipuLS 203,000 1 300.000 300,000Inamtl alu. 244,000 1 300,000 300,000Physical contingencies 10.01 60,600 60,6o

TOTAL AI N CPROCC51N EWUIPET 6,690,000 0 5,609,010 0 14,299,010 14.299.010 3,654.161

(1AQ TOTAL EWUIP94T '5,422,490 2b6.000 23,24.149 0 0 o 5s3,639 69,153,639 1,Si;,i;

- 93 - ANNEX 8Table 2

04DMAg rlultural %)e,elpast Project

Liet of V.hicl.e

IMI k ---- r( -------- -P rseeNt-Unit fries 616i; t% IS LIS LCS Otker Total Cakes,y Total

(V) A-m*nt Asount Aeet DAmunt Amount (Y) (W)

A. Peer: Cultmee (C4d)soqooc lS,OU

Truk 00 n,00 2 WOOD0 U.00 &q00 3.0

*. Met belure" (CE 9")Live fish treneort trucks 4 in 00D 15M coo 20D 6,607Trucks so NZU I 166.960 1491Spero parts 2li t 10 1,2=2C

C. Modified Peea (CE 941)

Asfrl.W ts trucks se 38.600 2 111,000 us,EO0 1.049Live fs treaport trucks er SS000 * 22e0OD 226 000Truck* es 27.625 12 38.900 363.90 Spare parts *r 125 20 2.500 2S00

0. NsD ponds - Petye (CE 046) 442.175 1 19,165

Live fiUb tranwport trucks es 31,000 5 190,O0 190,000Trucks sa 27.?25 9 230,425 250,425Spsre ports so 125 14 1,750 1,750

e. Now Ponda - Jim" (CE D07)

Live fish transport truckd as 5850 I 58,500 55.500 III'M 30,0I1

Truck& *s 27,621 2 55.650 65,650Spre parts as 125 5 37: 07S

TOTAL VE4ICLES 1, ON, 30D 0 0 0 1605,300 1. 06, 300 432. 6U

AC0R0PRCESSIM

A. Ducks NMnc+eng end Stegreo (CE9165,16) I.400,COD J77,SS8Eel tronsport truel 5 40,000 20 600.000 00,Coo

Itr ierated trucks s o0,000 4 200,000 200.000Field vehicIs o es 20,000 15 300.000 300,000Crosa-country shicles *a 50.000 2 100,000 100,000

e. Ducks - Hengie en4 Henqfeng ar_ (CE#162,163) 400,000 107,617

"ofr,girst4d trucis . eo 50.000 a 400,000 400,000

C. E.pension Suicker P50 Plant (CLUll) 60,000 21,56

Truck* on 40.000 2 60.000 60,000

0. kangahen Per. Proeisng Plant (CE 167) 101,S0 27, J

Trucks sa 26,500 1 28.500 26,SORefrioersted trucks *s 57,500 2 75.0o0 75,000

E. Eiderdown Product. Proce;ing Plant (CE#164)

F. Pig Slaughter plant - Jian (CEUIS9)

TOTAL VFICLESi I,901,500 0 0 0 1,981,800 1,961,800 1J4,097

TEA

A. Refining plant.

Trucks. St es 40,000 14 310,000 580,000

8. PeckaSing plnt 12C,.000 82,2S45Trucke, St *a 40,000 S 120,000 120,000

TOTAL VEHICLES 6O,00O 0 0 0 680,000 O6,000 163.288

FEDMILLS

A. 15.000 T Formula fe*e mills 1,050,000 283,019Trruck 50,000 IS 750.000 750,000Field vehicles 20,000 15 300,010 3000000

C. 5,000 t FarJujl fod milals (3) 880000 257,197

Trucks, 5 - 10 t 44,000 20 680 000 e660000TOTAL VS41CLES 1,930,000 0 0 0 1,030,000 1,930,000 520.216

FORESTRY

A-Plantation Establ ;*1ent (CE#601,502,603) 0

Trucks, 5 t as 40.000 6 240,000 240,000 316,000 65, 1t

Trucks, I t es 19,000 4 76,000 76,000

B. Rosin factory

Trucks ea 40.000 4 160,000 160,000 SOO,OOO 80,8 S

Trucks so 140.000 1 140.030 140,000

TOTAL VUICLES 232 616,000 0 0 0 616,000 616,000 166.020

OtADI TOTAL VIO4CLES 6,812,600 0 0 0 6,612,800 6,612,600 1,66,S334

-94- ANNEX 8Table 3

Jlgoi AgWlmltural O*voiep t P tPaRe 1List of ObterlaisLl%S --- PWO||.

W&it pele baent IU LIS LC t a.,c 1 1 61en~~~~~~~Aon _~ Amon Amoun Amo _ (V (U)

Urgea t an 80110 2.011111.600 3.0115.6*0�*10 ': Neo 2 ,"Ie e".o li.= 1,7. 100 oF "of _ 7 Mo 1.600 2.7060.000 2.70D am0Polyethylene lb 6. 1in 7M0AWOD

; . 1t lm- r.a (Co 946)

see _Vole * *61.175 6D.460 64O.400"Du so~~~k 8 49.0 1.476.4610 1.478.460

Talmo k s 7 14.60 14 Go.kg 1i U .7#11 4D.,W 400110

Ie Ir. 5 3.1I" 6.41111148si'r . U 10 1.60 iD.3 J9

Phelea eeaiteencles 10.06 0 o 706941 147.641 M.4

C. Case culftur (CB 647)

* 42e 1 095 41.095o 4991"O 924,101 246.064Bamboo 0 4:300 W'040 35~~~~~~~~~~~~~~~2.040is aJ 94,i 4 14it W9. I"

rytc l e ntin"el Io eTie 7S,llt IT17 100 1t7,100physical cotinrgencies 10.011 75.119 0 87.00W1 60.778 172.916

0. Serrlere (CE S2)

Bmoo lse no * 2.300 100,000 160.000 U2161 147,612Hats k 20 11,900 357,000 387 000Twine s0 217 9.510 9.510Stamn. 10 314 1,140 3,140I'ge 000 * 590 23 13.570 18,570Iren .lre 14 3 69t 2 ot 2 3. 0Physical w..iig...cles 10.0 0 0 20, 66 311.700 5 6.UI

TOTAL AT1IALS 4,009,219 2,700.00w 1,425,673 2,529,361 10,674,672 10,674,672 2.677,824

AWatiDe

A Eiid.rd,w Products Pr.cessing Plant (CE0164)

Nylon eloU. * 6 2,o000 492,66 492 , I6 , 16,21 S01.00iSt" l t 1.200 912 1,.095,600 1,095,600TC (? CIloth ,' so,oo 5 0C 22 1720 22 o70Fel iller (7) g 18 400 7.122 7,123Deterg.t 6 14,640 2 2"l660 29,6lo

t. Pg Slouglter plant - Jiar. (C14)

Steel t 1,200 920 1104.000 1,104.000 1.104,000 297,574

TOTAL tATWIALS 2,942,621 0 0 0 2,962M.21 2,9 62,121 795,604

TEA

A. Pfa.tlo. Eatlie.lant 10,9WI,26 2,948,431

Ur,. 6 1.4 t/h. * 675 6.729 4.542.075 4 S42.075Compound fart (N-P-l) (3S * 6u 7,211 6 021. 16 6.021.182Pesticides 6 16,400 20 sS6,o000 366.000

t. F cle.ing Plant 7,173,100 1,913,480

Polyethylene t 6.000 1s 90.000 90,000Craft paper * S200 6*0 2,400,000 2,400,000Aluui mm folI t 16,700 12 248,100 248.100Stel e 1,200 3,700 4,440.000 4.440,000

TOTAL NATWIALS 16,104,260 0 0 0 16.104,260 16,104,200 4,e79611

LIVESTOO(

A. Ducks

Ure G 6s 1,400 we0.0 *4S 000 21.664,256 5.64"4,14St"el t 1.200 6OO 720,000 720,000F;a mo_l 6 2.2S0 6,000 1,200,OO0 1,00.000Additi.ve 6 24,4157 188 3,740,2 3,740.2 156Polyeth.ylee t. 6,000 400 2,400,000 2,400,O0Ureding ducks LS 370.000 370,000

to. :lmeftome n, c*wn

Steel t 1,200 1oo 120,000 120,000 42049Fish _*1l 6 2.250 1s 26.000 36.000

C. Pig,

Ur** t s67 5.320 3.591.000 1,181,650 313.504Stool t 1,200 442 S30, 400 52 0400zinc p1.6. pipe t 1,875 ISO 261,250 261.250.readiv.g pigs L3 270,000 270,000

TOTAL MATERIALS 12.216,906 12,906,000 0 0 22, 681,906 23.021,906 6.205,264

95 ANNEX 8Table 3Page 2

Unit Pri_. _blati _l* LIs L ta.(Y) ~ ~~ANE Amsma Dm0m V.mI*w"t PA"

A.ptsmt.0I bllgbm,t ON1, .fhst"l m Mcm 270.000 7~~~~~~~~~~~~~.0C.307 1.11110.21161s.o.S 0 £,US.* US 170.001 170.0 ,,S7 1,02

y. a 0.696 SIM (.* fir 676. 8 , 8419.39 eo,419.9_m..yo.o.eo 61g m 2.,14 2,0W,Ua 2.09,606=_ .76_ * t0 87yU 10 Weon eo,o

Iwwu.d see SODA pins h I 1*. 1,6 721 ,2uO 22sinoh Coi..,. 10.051 6111 206 smoo201

TOTAL IIIM ,5 7,00,257 0 0 0 7.030.257 7,030,257 1,6"2,51

oM MAL5 HATWIAL,6 44,4118.,1 16.06.000 1,41.173 2,611,411 61,414.210 61,734,21 146.68,451

- 96 -ANNEX 8Page 1

CHINA

JTIANGXI AGRICULTURAL DEVELOPMENT PROJECT

Related Documents and Data Available in the Project File

A. General Reports and Studies on the Agriculture Sector

A.1 Jianaxi Statical Yearbook (Jiangxi Tongji Nianiian), 1988.

A.2 China - Livestock Sector Survey, Report No. 6589-CHA, IBRD, 1987

B. Reports and Studies Related to the Project

B.1 Feasibility Study Report on the Comprehensive AgriculturalDevelopment Project in Jitai Basin and Poyang Lake Area ofJiangxi Province (January 1989)

B.2 Tentative Program of Purchasing Materials for the Jiangxi JianPoyang Lake Area Project (October 1988)

TeaB.3 Feasibility Study on Tea Development (October 1988).3a Map of Project Sites

B.4 Feasibility Study on Tea Processing (October 1988)

Fores tryB.5 Feasibility Research Report on Slash Pine Tapping and Timber

Forest Base (October 1988).5a Soil Survey Map of Jingdezhen Area

B.6 Feasibility Research Report on Rosin Factory (October 1988)

LivestockB.7 Report on the Feasibility Study of Production of Aquatic

Poultries (October 1988)B.8 Feasibility Study Report on Lean Pig Commercial Base Construction

(October 1988)B.9 Feasibility Report on the Building of the Breeding System of

Lean-Meat Type Breeding Pi.gs in Shangrao Area (April 1988)B.10 Plan for Establishment of Original Lean-Type Pigs Base for Jian

Area Agricultural Development (April 1988)B.ll Feasibility Study Report on the Expansion of the Breedir.g Farm of

Taihe Pure Black Bone Chicken (October 1988)B.12 The United Meats Processing Production Chain Extension (October

1988)B.13 Feasibility Report on Aquatic Bird Processing (April 1988)B.14 Feasibility Study Report on Comprehensive Using Chicken Dung

(April 1988)B.15 Feasibility Study Report on Extending Eiderdown Production

Processing Factory (October 1988)B.16 Study on Feasibility of Establishing a Feed-Producing System of

Agricultural Synthetical Exploiting Items in Ji-lake area ofJiangxi (October 1988)

B.17 Feasibility Study Report for Extension of Animal Protein FeedWorkshop of Narnchang Ganjian Living Things Chemical Plant

B.18 General Feasility Study on Processing (October 1988)

- 97ANNEX 8Page 2

AguacultuaB.19 Feasibility Research Report of Aquatic Products

Project Managemnt. SuMIlX & Narketing and Trainig

B.20 Administrative Organization of the Project to Exploit and DevelopAgricultural Resources in the Area of Jian and Poyang Lake ofJiangxi Province (October 1988)

B.21 The Scheme of Capital Management of Jiangxi Province Ji-HuDeveloping Agriculture Projects (October 1988)

B.22 Provincial Measures of Ji Hu Agriculture ComprehensiveDevelopment Project of Jiangxi Province (October 1988)

B.23 Temporary Methods of Planning and Management of the Projects toExploit and Develop Comprehensively Agricultural Resources in theAreas of Jian-Poyang Lake, Jiangxi Province (October 1988)

B.24 Temporary Executure MHans of Materials Management forAgricultural Comprehensive Developing Projects of Ji Hu ofJiangxi Province (October 1988)

B.25 Program of Scientific Research, Training, Investigation andConsultation (October 1988)

C. Preparation Reports

C.1 Jiangxi Agricultural Development Project, Project Brief andAnnexes (FAO, Rome), June 30, 1988

C.2 Bengough, C. Forestry Report (November 1988)C.3 Hald, R. Livestock Reports (November 1988 and February 1989)C.4 Roeland, W. Agroprocessing Reports (November 1988 and February

1989)C.5 Tso, T.C. Tea Report (October 1988)C.6 Harrell, P. Memorandum, Supplemental Report on Forestry

Development (March 1989)C.7 Hill, K. Supplemental Report on Tea (February 1989)C.8 Pedini, M. Fisheries Reports (November 1988 and March 1989)C.9 Rees, C. Memorandum (Environmental Review) dated November 22,

1988.

D. Working Papers

D.1 Detailed Cost Estimates, Financial and Economic Analyses (COSTABprintout)

E. Materials Brought to Negotiations

E.1 Specialized Planning of Fencheng Municipality ADC for Five YearsE.2 Poyang Lake Mangement PlanE.3 Environmental Impact of Jiangxi Agricultural Comprehensive

Development ProjectE.4 Sales Volume and Forecasted Requirements of Main Commodities

- 98 -

Iuplmmteti..~~~rst 1omdlJXXM M1CLXA KMOWTPtCT

Year 1 19 so i 1s 1 St1i a is a 1 34it r. 8 4 1 2 & 41 1 3a 4 1 2 S 4 1 1 a 4 1 1 & 4

Pig IN eedtbSieox.t 1333 33x *UN *RUN xxx|33xxx1 xxx|xx3 *x x NUN R ExxlBroiwi tom oxeio xxx xxx :xx *xxl xxx PvI%try Ofe11 li 11_ x^x x x"x xxxma xxx xxx nun xxx maxa X xxx xx inn

tlp Ut empaseie n six Run sun 33 3K 3 3 3

improved Ix I I:::IMat oncloeve * xorIIIIIIIIPeals I IxxxlIxxXI I liXXllXXXI I Ixxx x I I II I I I I

Establishmnt I3I3I33333333I3I3I3I3~333333K3I3I3 I I MT neec I !^ xxl^ [!x^X llxxx !XXIxx:A::!: ! l W ! !s ! ! Poreetry I I II I I I II I~~~~~~~~~~~~~~~~~~~~E,

Eotablishuent 1333133 xxxlxxx31133313331333133 xxx1xxx33x33xxxi3xxIx3xx3xixx1x1xxI 1 11 1 1 1 1Maint nonce I I 11 1 xxxlxxxl IxxxlXxxtxlxxxinxjlxxxlxxxlxxxlxxxllxxxlxxxlxxxlxxllxxx IxxxI I IMaintenance 1 11 1 1 13313331331331 1331331331331 1331331331331 133 1331 I

FEotil n Ix I 11 1 1 1IIBuilding construction I I llxxlxxxlxxxlxxxilxxx xxxlxxxlxxxlxxxlxxxlxxxlxxal I I I I I I I IEquipment Inotallotlon 1 1 11 1 1 1xxxI3xxx 3xxx 3x1xlx33I 333 I xxxxI I I 1 11 1 1 1 1Bein operation I 1II 3 1 131 I I I I | I I I

Airoprocee-ingbuilding construction I I l I 333Ilxxxlxxxlxxxlx II IxI3Ixx I I I I I I I I I IEquipment installation I I 11 I I lxxxIl3:I13lxxKxxxlxxxIllxxxlxI I3 xI I I I I IBein .peration I I 11 I I I llxxxlxxxlxxxlxxxllxxxlxxxlxxxlxxxlI I I I 11 I I I I

Est. Effective Dt …--------/ Completion Dt… -------------------/ClosIng date--------------

- 99 -

CHINA FIJ3B 2

JIANGXI AGRICULTURAL DEVELOPMENT PROJECT

Organization For Project Implementation

Jiangxi Provincial| Government

- -- -- - - - ProJect Coordinatingl j Committel Technical II Committee

Provincial ProjectOffice

Prefectural/Municipal rProject CoordinatingCommittees (8) __

ProjectTechnical Offices JiangxiCommittees S ADC

ref.arun. ADCs

County/state FarmI_

Committees__ ~~Project

Technical OfficesCommittees

County/StateFarm ADCs

|Township /Village|I Project Units

FSHs, Farmers. SFF8

- 100 - FIGURE 3

CHINAJANOGXI AGRICULTURAL DEVELOPMENT PROJZCT

Flow of IDA Funds

IDA

JIANGXI PROVINCIAL GOVERNMCNT l

JIANGXI BOF

PROVINCA |ENTERPIE"

PREFECTURAL BOFs

Z ENTERPROSES l

C lUNTY disuenclco( pAB

STATE FARM ADCS _CUTY ADCs

rSF ENTERPRISES | COUNTY ENTERPRISES -

t ~SPECIALIZED HOUSEHOLDS - - - - - -

----- - - - - loan disbursement/collection (see SAR, para 4.10)

MOCUREMIET ICMEDULE FOR E5UUESNT AND MATENIALA-_tC llp

4A4..1e.am'p m roject

_- _ a -89 _0 _9 _9 .92 94_

________ NPK I lC 1 00 _5

1 e

1ce FF tcxc sCec*Skctt

:iWait4iXtItJtI1tIit 18Pack. 01 First Year'sUREA. liPK and ".0wmVitamin Additiv-s ice 1.80 e

Pack. 82 First Year'soij 1 Aei1 Lgr. 5..

Ptak. 13 First Year's . -= :Fislasel 4

L~~~~~~~~~~~~~7 re Equl p on nd IC 815 mVI e 1 i Pack. #4 First Year's ':i

Smaller Equipment f L CD 2 7 _ _ _ -i -fMinor Materials LCE 4.80 .eo - - - 0

-ack- ES *- D: -5 -! ; - - - - - - -_

ComT,utere LIE 0.05 . _4 - .. ... ..

Pack. 86 Second Year's .m.4 Larger Equipment and Sia 6-=-

Major Materials ics 8.5Iv,. 1- -

Pack. 87 Second Year's -CB-T4 iI - .-

Smaller Equipment & .m 4 t~ -- t,-t

Minor Materials LE 2.70 C,. A-

Pack. 88 Secloud L's

Pialmeal i LII ~2.33Pack. 89 Third Year's ...

Larger E.quipmsnt & i,e- -

Mjor Materials icE 2.25 -4u.Pack. 810 Third Year's m.,

Smaller Equipment & .ae - -4

Minor Materials .1L .. Z p~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~no.nnia

_s~"~~~~~~~~~~~~~~~~~~~.OUl5,,S .0

C-mSfls bAM.,S.fl. `.4eeMUM.meS.*.* 5.v.l ft~. 054)~ OiIa'..esse. v Mee

sva.u,ssm aa 710,,e,.AOSA .oSusvv.. s.e50.,5.t0 iv . Ie.

s..sS,esflmsan*eAe'OaI vOeiiAS*eMc* ii. rc,.ov 0.*hO*iOOOCiASlIl i~ p. SILvytIvA? iVE SW ,OC*tCfh',**f

Porno. ir

CHINA P ,CCURIMENT NIOULI POWV%MIN AD MAMMALi a' iamazi Augi"lt-lte *"Gtopmt Project

_e5_ e - .e 1 '@ 89 1 '90 |91 92

St_ -n _ D-ks _ PLg LIS 0.20__ _Pack. 011 Thirdh Year'. CS4

Pack. 114 Fosrth Year'. 4I 0 * I 211A- , Small Equipnent .. 4 . 4 4 I 4, 4 - t + 4 I -

LdB 0.96 ,= 44 4+-~~- :~ -

-A-L 4~~~~~~~~-4TOTAL _ 50.4 _.=- + t4 - , -

.~~~~~- _ ;444-41; .4tlt 04

+*-4 -4 tf -4+ 4

^c - 4 4 4 4 4. -

_______ _z 'an - P U ThBhK't MID I.A.".~ ~ ~ ~~~~~~~4WS .'...' .05 CS1 "II-1

C A . A Y* e_s< *c.cea. sa. .9,.SoYaC Oat ,,*.., .Me .. ,0.' 40 aSo C0..Oa!fl 50~ - ~ ste

U USe vauat at WASC' ,ca * .04 Ccft*a* 0* MC4 'ass ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~t

WUHAN~ T.A *V.l~ ~ ~ ~~~~ ~ ~~ ~ ~ ~~~~~~~~ -O Anqa- -: -1 18-17

jHoio N ANHUI .

-30 f /, ^uaneuCih t . >~~~~~~~~~~~~~~~~T W

3 OU,W -3 Bf -

308~~~~~~~~~~

ANGZHEJIANG

H~~~~~~~~~XJ U NN -80 ' ; FUJIANANCHANG

HUNAN (.b- ,

TOCO.nq.0/ /X / PROJECT" mw~~~~~~~~~~~~~~~~~~~~~~~~~~~~.~~~~~~~~p

2 f s j~~~- - /t C -) ~~~Jiangxi Province

27~~~~n,{_Oslzn- y ucu

20~~~~

AGRICULTURAL~Fee DEVELaOPp.M' ENT

JU00 /t H .O.'n.ng

-PROJECT@d

-~~~~~~~~~~~~ -28 by _ '0Xln-. < h

rO Cfwn xi n / f -\JH f + Z H 1ZNJiangxiProvinc

AI.. ;

21- -~ XI& T" '206000 mdo.'I..

T. chx.. --

-- -' 0 2~~~~~~~~ ~~~~~~~~~~~~~~0,m 20 7 1

| Lnizn I -zS > i Tvlv n O Suichang {) IJ75~~~~A Lo Thsn 10pt3

j | 'bAen ,i ,_ T * l.p,I"O sA N- D O K | Aki L

~~~~~~T i .. V.- 4, lt Ftkng | ¢)X

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