35126 v 2 Social Assessment Report for World Bank Financed China Agricultural Technology Project

Public Disclosure Authorized Anhui Sub-report CONTENTS

Chapter 1 Summary of Project Design and Execution in Anhui...... 1 Section 1 Background of Projects in Anhui ...... 1 Section 2 Project Design and Execution in Anhui ...... 2 Chapter 2 Project and Interest Groups ...... 2 I. Guangde Quality Nuisance-free Chicken Breeding Demonstration ProjectError! Bookmark not defined. II. Mengcheng Quality Yellow Cattle Resource Utilization Technological Demonstration Project ...Error!

Public Disclosure Authorized Bookmark not defined. III. Dangtu Quality Nuisance-free Lean Pork Pig Technological Demonstration ProjectError! Bookmark not defined.

IV. Huaibei Meat Duck SM3 Fine Breed Popularization Project ...... 9 V. Shou County Meat Goose Fine Breed Cultivation Popularization ProjectError! Bookmark not defined. VI. Yeji Test Area Goat Industry Technological Demonstration Project.....Error! Bookmark not defined. VII. Feixi Distinctive Nursery Stock Flower Technological Demonstration Base Construction Project ...... Error! Bookmark not defined. VIII. Bengbu Suburb Quality Paddy & Wheat New Variety Development and Popularization Project ...... Error! Bookmark not defined.

Public Disclosure Authorized IX. Chizhou Nuisance-free Sweet Potato & Beans Industrialization ProjectError! Bookmark not defined. X. Dangshan Pear Green Food Standard Production & Air-conditioning Preservation Technique Demonstration Project ...... Error! Bookmark not defined. XI. Feixi Nuisance-free Peanut Production Technique Demonstration & Popularization Project...... Error! Bookmark not defined. XII. Farmer-centered Sustainable Agro-tech System Construction, Demonstration & Popularization Project ...... Error! Bookmark not defined. XIII. Nanling Farmer-centered IPM Technique Demonstration & Popularization Project...... 34 XIV. She County Organic Tea Production Technique Demonstration & Popularization Project...... 36 Chapter 3 Opinions and Suggestions of the SA Team...... 39 I. Guangde Quality Nuisance-free Chicken Breeding Demonstration ProjectError! Bookmark not

Public Disclosure Authorized defined. II. Mengcheng Quality Yellow Cattle Resource Utilization Technological Demonstration Project ...Error! Bookmark not defined. III. Dangtu Quality Nuisance-free Lean Pork Pig Technological Demonstration ProjectError! Bookmark World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

not defined.

IV. Huaibei Meat Duck SM3 Fine Breed Popularization Project ...... 41 V. Shou County Meat Goose Fine Breed Cultivation Popularization ProjectError! Bookmark not defined. VI. Yeji Test Area Goat Industry Technological Demonstration Project.....Error! Bookmark not defined. VII. Feixi Distinctive Nursery Stock Flower Technological Demonstration Base Construction Project ...... Error! Bookmark not defined. VIII. Bengbu Suburb Quality Paddy & Wheat New Variety Development and Popularization Project ...... Error! Bookmark not defined. IX. Chizhou Nuisance-free Sweet Potato & Beans Industrialization ProjectError! Bookmark not defined. X. Dangshan Pear Green Food Standard Production & Air-conditioning Preservation Technique Demonstration Project...... Error! Bookmark not defined. XI. Feixi Nuisance-free Peanut Production Technique Demonstration & Popularization Project...... Error! Bookmark not defined. XII. Maoji Farmer-centered Sustainable Agro-tech System Construction, Demonstration & Popularization Project ...... Error! Bookmark not defined. XIII. Nanling Farmer-centered IPM Technique Demonstration & Popularization Project...... 46 XIV. She County Organic Tea Production Technique Demonstration & Popularization Project...... 47 Annexes...... Error! Bookmark not defined. Annex I: Attached Table ...... 48 Annex II: Map Indication of Projects in Anhui...... 56

2 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

Chapter 1 Summary of Project Design and Execution in Anhui

Section 1 Background of Projects in Anhui

There are 14 established projects in Anhui under the World Bank Financed China Agro-tech Demonstration & Popularization Project, involving 13 districts/cities in Anhui, including 7 planting projects, 5 breeding projects, 2 projects undertaken by associations and 2 technical popularization projects undertaken by the government.

Anhui now has a total area of 139,000km2, governs 17 cities (district level cities), 5 county level cities, 56 counties and 44 municipal districts. Anhui is a major agricultural province, where agriculture accounts for a great portion in its economy. As planned in the “Strategic Objectives, Steps of Anhui for Full Construction of Well-off Society and Key Constructions Tasks at the Initial Stage”, the province will further adjust its agricultural structure, highlight stockbreeding and efficient cash crops, and construct 10 major production and supply bases of quality farm products, including special wheat, paddy rice, cotton, “double-low” rape, tealeaf, peanut, vegetable, animal meat, bee products and aquatic products.

11 companies and 2 professional associations in Anhui have participated in the construction of the project. To increase the technological level and ensure the successful execution of the project, each subproject is in cooperation with a province-level or above scientific research institute or university. As technical support units of the project, over 10 research institutes of the 3 province-level scientific research institutes—Anhui Academy of Agricultural Sciences, Anhui Agricultural University and Anhui Institute of Forest Sciences—have experts across nearly 40 disciplines (seed cultivation, cultivation, plant protection, gardening, clay fertilizer, biotechnology, stockbreeding, veterinary, agricultural economy) involved in the project, of which above 75% have a senior title and most are middle-aged or young.

The projects are mainly distributed in poor areas in Anhui, involving 13 districts/cities out of 17 ones province-wide. Nearly 100,000 farmers participate in the project. Industries of the subprojects are mainly planting, stockbreeding or farm product processing, such as planting flower/sapling, peanut, tealeaf, chicken raising, cattle raising, sheep raising, etc. These are activities suitable for women. Accordingly, all the subprojects can absorb a great number of women for employment, which will help improve the income and social status of women.

See Attached Tables 1 & 2 for a summary of the subprojects.

1 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

Section 2 Project Design and Execution in Anhui

See Attached Table 3 for the project execution plan of each executive unit, total investment, company benefit, risks, expectation of influence, conclusions and suggestions; see Attached Table 4 for each project’s execution.

Chapter 2 Project and Interest Groups

I. Guangde Quality Nuisance-free Chicken Breeding Demonstration Project

1. Affected Farmers and Project

The affected area of Liudong Town in Guangde County is situated north of the county town and is a major planting and stockbreeding town in Gangfan District; Baidian Town is located south of the county town and is a poorer town in Guangde. The total area of the project demonstration zone is 290km2, governing 60 administrative villages.

The project demonstration zone investigated—Zhaocun Village in Qiucun Town, Guangde County—has a total population of 2715 people, 703 families, 1.1mu per capita paddy field, 17500mu tilled land (including barren hill), mainly planting rape, sweet potato, paddy rice, villagers’ per capita annual income is about 1700yuan, this is a poorer village in the town. Farmers are far away from each other, which is convenient for chicken raising (prevention of dissemination of fowl pest), but the traffic is inconvenient. Many farmers have the intent of chicken raising but can hardly get a loan. Now 15 families at the village are raising chicken on a large scale, all having entered into Hewei Company—the project’s executive unit. 90% people of this village are poor due to many barren hills and poor natural conditions.

Farmers think the main risk of project participation is the stockbreeding risk. The method of avoidance is to improve their stockbreeding skills through technical training and offering of timely, effectively disease treatment and prevention services by the company.

Attached: Case of Investigation

Zhang Yunmei, female, above 40 years, graduate from senior high school.

My family has 4 members, including my husband, daughter (19 years, attending the college entrance examination this year) and son (15 years, senior high school), has above 5mu land, growing paddy rice, rapeseed previously. Now my husband and I raise chicken specially and rent the land to others. We’ve raised chicken for 3 years. At the beginning, we only raised several hundred chickens; in 2002, we began to contract with Hewei Company and raised over 2000 chickens afterwards. Our family has one henhouse only, raising 4-5 bathes a year.

2 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

After contracting with the company, we can get feed and chickling on credit, the company also provides us with free technical services by training us 4-5 times a year. Most of our time is spent on chicken raising and we can earn above 10,000yuan a year ideally. At present, our cooperation with the company is fairly good, better than working outside. I think the pattern of company plus farmer is good, we don’t have to borrow money and can get chickling from the company on credit. The contract can also protect our interests. Earlier this year, the meat chicken price fell greatly due to SARS, but the company purchased at the protective price and greatly reduced our losses. Our greatest difficulty is to build henhouse, the government and the company are expected to offer support. There is an oral association among 15 major chicken raisers at our village, which has a representative to notify of training and contact with the company. Our participation in the project was agreed by the couple. My husband would usually attend the training and I have attended the training once, feeling the contents are very practical. Raising chicken now, my status as perceived by others has been greatly improved. If more women can participate in the project, their social status will be improved. The labor intensity of chicken raising is lower than farming, our couple can raise at most 10,000 chickens at a time. If the scale is enlarged, I can also retain local women to work for us.

It can be seen from the case that: 1) the labor intensity of chicken raising is moderate and the income is considerable, which will help increase the status of local rural women; 2) the key problems for local farmers is inconvenient traffic, shortage of fund and technique, and slow economic development; 3) the project company was able to act on the contract in its prior cooperation with farmers, guaranteeing chicken raisers’ interests; 4) the “company + farmer” pattern is deeply supported by the public; and 5) by reason of traditional concept, women are unable to fully attend the technical training, the government should strengthen the publicity and the enterprise should enhance its training for women.

2. Problems in Project Design/Execution and Suggestions

A.Problems and suggestions proposed by World Bank Mission

Proposal is potentially suitable to be included under the project. However, the Review of the proposal elicited the following mission comments and recommendations:

• Review cost table and make changes as agreed with mission to clearly mark the assets that will benefit farmers from those that will benefit the company.

• Propose a methodology and criteria to select participating household with a view to exclude the households that do not need project assistance.

• Provide basic data (population and per capita income figures) on townships (xiang) and villages selected for the project, as discussed with the Bank mission

• Complete proposed contract with farmers to further clarify farmers and company obligations (how market price is determined, joint arbitration by Co. and farmer association).

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• Update text of feasibility study by indicating which of the proposed activities the company would be willing to finance on its own.

• Since some of the project funds of the SOCAD and provincial/county counterpart funds may be provided in the form of a grant, companies should explore the possibility of giving participating farmers/villagers equity share in the company in an amount commensurate with the grant they receive

B. Problems and suggestions proposed by POCAD

Provincial project officials think this company has a large scale and a good system (private business), adequate management and a good mode of operation (advance payment for means of production). The disease prevention and treatment problem should be noted.

C. Problems and suggestions proposed by project company

The project company points out that, the key problem impeding the full project participation of rural poor people and women is still fund. Farmers can become rich only by dealing with large-scale cultivation. It’s suggested that the government enact some preferential policies to encourage farmers to settle in cities and drive agriculture onto a large-scale and modern path. The company prepares to build a large-scale chicken farm, where farmers may raise chicken on a duty-system, or the company shall rent land to farmers for chicken raising, to enlarge the scale. Only in which way can chicken raising be standardized to manufacture acceptable products. The company also hopes to reduce intermediate circulation links of funds.

D. Problems and suggestions proposed by farmers

Based on the fund shortage and inconvenient traffic problems, affected farmers expect the company to fund them to build henhouse and invest in the road and power construction in the village.

II. Mengcheng Quality Yellow Cattle Resource Utilization Technological Demonstration Project

1. Affected Farmers and Project

There’re 8 towns in the demonstration zone such as Sanyi, Letu, Liulin, Baiyang, QiYuan, Banqiao, Chucun and Yuefang. This area covers 218 administrative villages with 92208 farming families, agricultural population of 384,000, 203,000 labor force and 703,000 mu (1mu = 0.0667 hectares) farmland. The 8 towns are the project areas of national agricultural integrative development or the project areas of World Bank strengthening irrigation. The irrigation rate is more than 75%. The forests network of fields is 80%. The percentage of high quality corps is about 80%. At the end of 2001, about 118,000 of native cattle were sold while 140,000 cattle were raised. The total output value of agriculture and forest was 1276 million yuan, of which 774 million yuan was from crops, 438 million yuan from livestock,

4 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

27.22 million yuan from fishery, and 37 million yuan from forest. The net per capita is 2,140 yuan.

The company prepares to follow the following procedure for selection of affected farmers: first affected farmers sign up voluntarily or the local government and the two village-level committees make an introduction, then the company will make a selection after field survey with focus on the poor with annual income of below 1200yuan and women. Farmer families determined by the company should have the guarantee of the local government and the two village-level committees, then the company shall organize families in groups for technical training by the scientific research unit.

The affected village investigated is Shaoqiao Village under Letu Town in Mengcheng County. This village has above 900 people, 224 families, 1730mu tilled land, mainly planting corn, peanut, wheat, paddy rice, with per capita income of 2200yuan. This village has a cattle raising history of above 10 years. Now there are 106 cattle raisers at the village, with 1-9 heads of cattle each. Since 2000, cattle raisers here have entered into cooperation with Wuzhou Company and have benefited therefrom.

Villagers think this project is a good thing for them, because a thing unable to do by a single family can be done by the company with integrated services, such as cattle raising technique, feed formula, fattening, epidemic prevention. The key to the project’s success is the breed improvement of cattle. Farmers think the difficulty in participating the project is shortage of fund. The project risks proposed by farmers include serious natural disasters and major epidemic conditions, as well as the risk of default by the company. The following case reflects the benefit of farmers: Interview at Saoqiao Village, Shao Guangyun, male, over 40 years, graduate from junior high school.

My family has 4 members, including 2 children, 9mu land, growing corn, soybean, peanut, sesame, paddy rice, yam bean, barley, wheat. I began to raise cattle since 2000, when I didn’t enter into contract with Wuzhou Company and could sell cattle either to the market or the company, if the company’s purchase price is higher than the market, I would sell cattle to the company. My family now has 3 heads of cattle, including a cow. We raise cattle at spare time, 80% of our time is spend on farming, because cattle lives on crops. It takes a year to fatten a head of cattle from its birth, which can be sold for about 4000yuan. My family’s sources of income include: above 5000yuan from farming, above 5000yuan from cattle raising, above 2000yuan from doing small business, amounting to above 10,000yuan a year. Our expenditures include 4000yuan living expenses, several hundred dollars children’s tuition, 1000yuan entertainment expenses, the annual aggregate expenditures are 6000yuan.

There is clear division of labor in my family, I do business and farm-work mainly, my wife does housework and raise cattle. I didn’t join in the village cattle raising association because I raised cattle very late. I now want to join in it, because there is some social and economic information at the association, we can learn market conditions from the association and sell cattle at a good price. A certain financial capability is needed for joining in the association. The association also supports poor families at the village, raises money to advance the cow

5 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment payment for them.

I think the company’s contract can guarantee farmers’ interests, we can get benefits from the cooperation. I think our risk is very small, because the company has a risk fund, even if the company does not purchase our cattle, we can also sell cattle on the market. The technical popularization here is performed by the government and the company, the veterinary station would assign persons here for breeding and epidemic prevention, the company also assigns technician for door-to-door guidance. I’ve attended the training twice and have learnt how to feed cattle, how to master the estrus of cattle. The government supports our cattle raising a lot and has make a lot of publicity to us. In the past 2 years, there was voluntary labor here, if a family raises a head of cattle, the voluntary labor of one person may be reduced. I hope the company to set up a large feeding ground, the company may fund farmers to raise cow at home and sell calves to the feeding ground. Now the factors restricting the development of rural family economy include: shortage of fund and technique, poor foundation, farmers’ little knowledge about the market, slow conversion of concept.

It can be seen from the case that, the income from cattle raising accounts for a high percent in the local household income; the cattle raising industry in the affected area has formed a certain scale, because there is already a cattle raising association and this association plays a certain role in poverty relief. Cattle raising is less labor intensive ad is very suitable for women.

2. Problems in Project Design/Execution and Suggestions A. Problems and suggestions proposed by World Bank Mission

• Innovative production technology that will substantially increase farmer outputs and incomes;

• Supporting technology services that would assist farmers improve and safeguard production and encourage a continual increase in farmer participation.

• Development of a HACCP system and a ‘green’ product designation.

To assist the company restructure its proposal to meet the primary objectives of the project it is suggested alternative sources of finance be sought to finance the proposed abattoir facility and part of the animal breeding center.

Also the establishment of a feed production center should be reviewed and its costs of production compared with contract prices from existing feed mills. The recent development of more specialized livestock enterprises throughout the country has led to a growth in feed mills that are capable of producing sophisticated concentrate rations. It is suggested that the company’s research advisors investigate the feasibility and cost of out-sourcing this activity. B. Problems and suggestions proposed by POCAD Provincial project officials think this affected area’s climatic conditions are very suitable for cattle raising. Mengcheng County’s cattle raising foundation is good, Wuzhou Company has solid strength, diversified products and certain brand awareness. In this project, the utilization of straw is good to environmental protection. The problem of combination of grass and cattle should be noted in the flood basin.

6 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

C. Problems and suggestions proposed by project company The project company thinks the key problem in its undertaking of the project is fund shortage, which affects the project’s preliminary work. The company suggests that the project fund get in place as soon as possible to ensure the project’s successful progression. D. Problems and suggestions proposed by farmers Based on the consideration to enlarge the breeding scale, affected farmers hope the project company can build a feeding ground and deal with more processing to promote the growth of the local cattle raising industry. They also hope the government to strengthen the publicity and give field guidance.

III. Dangtu Quality Nuisance-free Lean Pork Pig

Technological Demonstration Project

1. Affected Farmers and Project The demonstration zone mainly locate in Huangchi, Tingtou, Wuxi, and Maqiao etc. eight townships, which lie in the plain of Yangzi River midstream and downstream. Here, the ecological environment is good, and the climate is mild, and the average temperature of the whole year is 15.9. A national agricultural comprehensive development project was carried out at this area where cover land of 28.4 square kilometer, possess 96 villages, and 164,000 populations (including 156,000 of agricultural population among them). Livestock and crop industry of the district have better foundation, so that it was called a laudatory title of “a land of plenty fish and rice”. Each peasant household is used to raise the pig, but the scale is small. All villages and towns have set up agrotechnical stations and veterinary stations, which have many professional technicians. There are 21 full-time animal husbandry technicians in eight townships. The main income of peasants comes from the livestock and crop cultivation. From geographical location and condition range, this area has optimum condition on utilizing World Bank loan to demonstrate agricultural science and technology. The affected area is located south of the Yangtze River, neighboring on Shanghai, Nanjing, Wuhu, Suzhou and Wuxi, enjoying convenient water, land and air traffic and developed communication. Dangtu County is among the mass of cities and has a large port consumer market with an annual consumption of above 40 million heads. Nuisance-free quality pork is relatively scanty and has a large market space.

The affected village investigated is Qiqiao Village under Huangchi Town in Dangtu County. This village has 350 families, above 1100 people, per capita income of 2000yuan, above 300 people working outside and per capita tilled land area of 1mu. This village began to produce vegetables in cooperation with the company since 1995, both have experienced a successful cooperation. Accordingly, villagers are confident of this project.

About the fund use, villagers suggests using the fund for pigsty, technical training, insurance against natural disasters and pestilences, subsidy for feed, methane tank construction. As to the selection of affected farmers, villagers hope the villager committee to make evaluation of farmers and perform public selection on a villager meeting.

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About the risk of participation in the project, some villagers think that if the company offers pigsty and technical services, they will have no risk.

Attached: Case of Investigation

Fu Jihai, male, Party Branch Secretary at Qiqiao Village in Huangchi Town, above 50 years, living in a 5-member family, his son and his son’s wife are working outside. His family has 6mu land, over 2mu for vegetables and the remaining for paddy rice. Vegetables are sold to the company, paddy rice is for self-consumption. I planted over 1mu vegetables in 2002 and earned 3000yuan, earned 1600yuan from paddy rice, my annual wage is 4000yuan. I usually do farm work in the morning and evening, get on duty at the village in the daytime. In the past, almost every family here planted paddy rice, I’m acquainted with the company’s head, so I took the lead in planting 0.7mu vegetables. Later, villagers gradually grew vegetables having seen my high income from vegetable planting. I know well about the company, it was very small in the past. With the development of the order agriculture, the company became larger and larger. I think the company + farmer pattern is very good to ensuring the market outlet for our products. Our previous vegetable contract with the company could guarantee farmers’ interests and offer reasonable prices. I once used a new variety introduced by the company but gained poor profits, as a result, the company compensated 15,000yuan to me. The company would assign technicians to guide us in the field and give centralized training, involving many women. The status of women is high at our village, women have proposed pig raising because they have nothing to do at home in slack seasons. This can increase their income and status.

This case shows: villagers of this village have many years’ experience with the “company + farmer” pattern, and have gained great profits on vegetable planting; the company is highly creditable among villagers; women’s participation in the project is fully embodied.

2. Problems in Project Design/Execution and Suggestions

A.Mission Recommendations: Proposal is potentially suitable to be included under the project. However, the Review of the proposal elicited the following mission comments and recommendations:

• The company should review and update the cost tables as discussed with the mission, particularly in the cost of sheds and biogas pits to be constructed by farmers.

• Formulate a methodology to select project farmers with a view to exclude rich farmers.

• Prepare models for pig breeding models (one or more saws) for small farmers.

• Develop accurate and detailed cost models for activities for which Bank loan will be disbursed on the basis of unit costs (one for each pig raising model).

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• Since some of the project funds of the SOCAD and provincial/county counterpart funds may be provided in the form of a grant, companies should explore the possibility of giving participating farmers/villagers equity share in the company in an amount commensurate with the grant they receive

• Revise management structure as agreed with the Bank mission to include farmers in the project decision-making process

B. Problems and suggestions proposed by POCAD

Provincial project officials think: this project company has a sound marketing system and has done much in driving farmers to become rich, enjoying a certain creditability among farmers. The enterprise’s internal processing can take up a part of pork, reducing the project risks. This project company’s existing infrastructure is good and combined with state-level tasks.

C. Problems and suggestions proposed by project company

The project company thinks although the company + farmer pattern is good, there is certain problem, mainly in that the leading enterprise’s driving coverage is limited and farmers are passive, unable to search for market spontaneously on the basis of the company’s planting base. The company thinks, to improve this pattern, the leading enterprise should play a key role, 1) the leading enterprise shall enlarge its scale and enhance its driving force; 2) boost the strength of support and guidance to farmers by practicing order-type cooperation at the beginning, when farmers have mastered certain skills, by guiding them to enlarge the scale and find market by themselves; and 3) the local government should provide farmers with information services and support some profit-making intermediaries.

The company proposes, to further improve the project’s executive effect, 1) strengthen the service and guidance capability of the government, 2) improve the technical service level, 3) enhance all levels of project management, and 4) secure funds in a timely way. The project risks perceived by the company are mainly market risk and farmers’ breeding risk.

D. Problems and suggestions proposed by affected farmers

Affected farmers suggest the government found a supervisory team to supervise the fund use, which shall involve farmers. Farmers also expect the to help them build pigsty and methane tank, and provide them with feed at the fair price. In addition, they also hope the company to found a technical service team for regular technical guidance to farmers.

IV. Huaibei Meat Duck SM3 Fine Breed Popularization Project

1. Affected Farmers and Project

The demonstration district is located in the Duji District, Huaibei city, including 28 administrative villages in 2 towns (see Appendix 2). The project district is situated in a coal

9 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment mine collapsed zone where there are small amount of arable land and a large agricultural population of 48,000 in number, 13 thousand peasant households, 27,000 peasant labors. In the project district there is 2,400 hectares arable land, 6,000 hectares total sown area, and grain annual output of 14,246 tons. The net income was 2,406 yuan Yuan per capita in 2002. Farmers have benefited by raising meat ducks in recent years, which shows that the district is favorable for raising meat ducks.

The geographic position of the district is excellent for its: The Longhai railway line, known as the Grand Euro-Asian Continental Bridge, is to the north, the Beijing-Shanghai railway line is to its east, the Beijing-Kowloon railway line is to its west of the district, and the Xuzhou-Fuyang railway line and No. 311 State highway go across the area. Six under- construction highways of Lianyuangang-Heerguosi, Hefei- Xuzhou etc. and 32 branch-lines will constitute a convenient transportation way leading to every direction. The district possesses abundant electric power supply and well-developed post and telecommunications. The specific geographic position make the Duji District to become a bridge and ligament between the eastern and western parts of the province and to play an even outstanding role in the Huaihai Economic Cooperation Area. The excellent geography has brought about exceptional advantages for the implementation of the project.

The affected village investigated is Mazhuang Village in Kuangshanji Town, Duji District, Huaibei City. This village contains 3 natural villages, 367 families, 1438 people, over 800mu land. The land collapse is serious due to coal mining on an area of 1900mu. In the past, the government extended the subsidy of 300yuan/mu to collapsed land and increased this sum to 900yuan in the past 3 years, which is far below demand.

This village’s per capita income is 2100yuan, 10% farmers are poor families, the reasons for poverty are lack of technique and labor, land collapse, lack of resources. Villagers began to raise duck since 1980s and began to raise SM3 meat duck with Lvyuan Company since 2001 with a high survival rate, high feed conversion rate and high growth rate. Villagers are very satisfied with this. At present, there are 200 duck raisers at the village, of which above 160 ones have entered into agreement with the company.

At present, quite a few villagers want to enlarge the scale of cultivation but are short of fund. Since the low-interest loan guaranteed by the government is 3000yuan/family only, which must be paid off in 1 year, this cannot satisfy farmers’ need. Accordingly, villagers hope the project can provide low-interest or discount-interest loan to those in need. In addition, they also expect the company to use the project fund to help them build or modify duck houses, improve product equipment, introduce more new breeds, improve the epidemic prevention and add service points, and expect the company to set up a feed factory to provide fair price feed to duck raisers to reduce their product costs.

Half attendees of the villager forum are women, who are dominant in duck raising, so the project will also help employ local women and increase their family status.

Villagers think key risks of participation in the project include: feed price fluctuation, failure of epidemic prevention in cultivation; change in market demand for finished duck and price fall.

10 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

Attached: Case of Investigation

Huang XX, male, 36 years, graduate of primary school. His wife is 36 years, graduate of primary school. His son is 15 years and his daughter 13 years, both studying at junior high school, the tuition per person per semester is 300yuan.

Before marriage, there was 2mu land at home, which became collapsed in 1986. The family lived on planting lotus root only and had to work outside. The family began to raise duck on a large scale since 1995 independently. After Lvyuan Company was founded, they have been selling ducks to the company but it was not until the last year was a contract entered into.

They raise above 500 ducks this year. If successful, they can earn about 8000yuan a year for 8 batches. The present duck shed is simple, Huang wants to improve it but is short of money. So he hopes the project can provide material aids in this regard. It would be too difficult to borrow money from the credit cooperative.

For the “company + farmer” pattern, Huang thinks it is indeed good. He says, he has no skill and has to stay at home. Duck raising is a good way out for becoming rich at home. Many people working outside have returned home for duck raising because they feel it profitable.

Huang thinks the key risk of the project is epidemic prevention. About fund use, he hopes a loan can be granted to help enlarge the scale of duck raising and technical training be given.

This case shows, duck raising has actually opened up a new path to richness for farmers in the collapse area. However, it’s very difficult for them to conduct standard cultivation upon their own forces. Accordingly, the company’s cooperation with farmers is very necessary for farmers.

2. Problems in Project Design/Execution and Suggestions

A. Problems and suggestions proposed by World Bank Mission

The proposal is recommended for further consideration under the proposed project. It offers Innovative production technology that will substantially increase farmer outputs and incomes;

Extensive farmer involvement and the opportunity to increase household incomes through a specialist production enterprise that only uses a small area of land and it suited to management at the homestead by women

Supporting technology services that would assist farmers improve and safeguard production and encourage a continual increase in farmer participation.

Development of a HACCP system and a ‘green’ product designation

B. Problems and suggestions proposed by POCAD

Provincial project officials think this project can make full use of local soil characteristics (much collapsed ground in the coal mining area) and popularizes a fine breed of meat duck,

11 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment the project company’s mechanism and market are also good.

Things to be noted in this project include: epidemic prevention; the company’s scale and its scale of farmer driving are to be enlarged; its connection with farmers is to be enhanced.

C. Problems and suggestions proposed by project company

Difficulties and problems proposed by the project company: 1) duck raisers driven by this project are mostly poor people without tilled land who are short of startup fund in executing household duck raising; 2) most members of breeding families have received low education, the speed of standard technical popularization is slow; 3) the company has spent much effort and money on farmers at the initial stage for executing the project. If no current fund is now injected in the company, its development will be restricted.

The company proposes, the following measures should be taken to solve these problems: 1) the government shall coordinate the small-grant loan to farmers; 2) the company shall enact preferential conditions, including collection of 50% of the duckling payment from farmers temporarily to relieve their fund stress; 3) the company shall assign technician for tracking service, to solve technical problems in cultivation; 4) hold technical training courses to raise farmers’ breeding techniques and duck disease prevention/treatment techniques; and 5) the World Bank’s fund is expected to get in place timely to inject certain current funds into the company.

D. Problems and suggestions proposed by affected farmers

1) Farmers have take up the idea to set up a duck raising association with the government, this association is now under preparation.

2) Farmers are mostly dealing with cultivation in simple duck sheds where the equipment is very backward, increasing the labor intensity. Farmers expect the company to provide them with modern production facilities, such as automatic drinking bowl, feed basket.

3) The natural villages in the affected area are far away from each other and it takes a long walk for technical consultation or medical aid. The company is thereby expected to add more service points.

4) The company is expected to introduce more new breeds.

5) The current feed price is high, the company is expected to set up feed factory, improve the feed quality, reduce the feed price to reduce feeding costs.

V. Shou County Meat Goose Fine Breed Cultivation Popularization Project

1. Affected Farmers and Project

The project’s demonstration zone is located at 311 administrative villages in 14 towns under Shou County. Shou County is a state-level poor county, the affected area has many people for

12 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment little land, lacks resources, has an agricultural population of 520521 people, involving 310371 rural labors. The affected area has a cultivated area of 56430.7ha, a total sown area of 105470.3ha, a gross grain output of 372761t. The affected area’s per capita annual net income in 2002 was 1800yuan, below the provincial average. Within the affected area, there is 56430.7ha fertile tilled land, suitable for wheat, paddy rice, soybean, corn, pasture, etc., it can provide abundant raw materials for the meat goose industry. The project can be executed successfully in the area. The Project area is in the vicinity of the Huaihe River and the coal city Huainan, and 100 kilometers away from the provincial capital Hefei. The highway No.310 of provincial level passes through the whole Project area longitudinally. Fortunately, the Project area is rich in water and power resources. All these provide unique conditions for the implementation of the Project.

The affected village investigated is Jianshe Village under Jianshe Township in Shou County. This village has many natural pastures and water surfaces good for cultivation. Almost every family here is raising goose.

The profitability of goose raising was not good in the past, because the variety was outdated, which took 6-8 months to grow up. Since last year, this village began to cooperate with the company, where the company provides new breeding goslings and feed, conducts the unified epidemic prevention and offers technical services. Thus, the net come from a goose can be 7- 8yuan. Villagers think this mode of cooperation is good and are willing to participate on. Wang XX, a villager, said, “My family raised 120 geese of the new breed at the beginning of this year, one goose can earn 8yuan, now I raise 20 ones, because this is the busy season in farming. My family’s income this year will be higher than that in the last year, because my family raises a new breed this year, which is fast growing. My children are working outside, if we can earn much from goose raising, I’ll call my children back.”

The project risks proposed by farmers are production risk and market risk.

2. Problems in Project Design/Execution and Suggestions

A. Problems and suggestions proposed by World Bank Mission

Mission Recommendations: Proposal is not suitable to be included under the project. Because the lack of a definite company marketing network and the high risk that would be incurred by the participating farmers.

B. Problems and suggestions proposed by POCAD

Provincial project officials think the project’s advantages include:

(1) This company has a sound marketing system.

(2) The company has good cooperation with the Anhui Agricultural University.

(3) The subsidiary has realized sharing of interests and risks with the parent company by equity participation.

(4) The affected area has the habit of breeding.

13 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

(5) This county is a state-level poor county, if this project can be determined, it will provide opportunities of development for Shou County’s economy.

Provincial project officials propose to understand the function of industrialized operation of agriculture completely other than completely separating the support to the company from that to farmers, because only when the leading company has developed can it have enough strength to drive farmers. Accordingly, the project’s support to the leading company cannot be narrowly understood as making the company itself robust but to neglect the company’s leading role. Provincial project officials suggest the World Bank give appropriate concern and support to the company while being focused on the support to farmers.

C. Problems and suggestions proposed by project company (association)

There may be the following difficulties and problems in project execution: 1) goose raisers driven by this project are mostly poor families that are short of startup fund for household goose raising; 2) the education level of breeders is low, they are short of meat goose raising techniques; and 3) the company’s investment in the product quality test system is heavy, the current fund for project execution is great, which will restrict the enterprise’s development.

D. Problems and suggestions proposed by affected farmers

Affected farmers think that their existing goose pens are simple. The company is expected to help them build or expand standard goose pens to enlarge the scale of cultivation.

Attached: Analysis of Development Prospect and Construction of Sales Service System for Goose Raising of the Company

(I) Preliminary investigation for the company’s development

1. Market research of goose raising: China is a major producing country of aquatic fowls, where the output of aquatic fowls accounts for over 60% of the global output, in which the goose output accounts for 86% of the global output, with a total nationwide output of above 600 million individuals. The main goose producing areas are Jiangsu, Sichuan, Shandong, Guangdong, Jilin, Anhui, Heilongjiang and Fujian provinces, mostly raised by farmers on a relatively small scale. Large scale operators include: Jilin Zhengfang Agricultural & Stockbreeding Inc., Quality Aquatic Fowls Breeding Base of Laiyang Agricultural College, Huifeng Business Group Company in Anqiu, Weifang, Guanghan Wanming Limited in Sichuan. There is not yet a large-scale goose raising enterprise in Anhui.

2. Market consumption research: As the permanent topic of human consumption demand, the food development and innovation has provided an extensive space of development for the goose industry. At present, the global goose market demand is unsatisfied. The demand of China for goose is conservatively above 100 million individuals, but the quantity raised is just 60 million individuals. Since goose is fed mainly with green feed and drugs are seldom used, goose meat is gradually listed as a green safe food in the mind of consumers, rising in consumption at the highest speed. In Guangdong Province,

14 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

the goose consumption is focused on Shantou in the form of meat eating, the dominant way of consumption is entertainment upon festivals. Goose heads and goosefeet are sold at high prices at restaurants as high-grade consumer foods. Deep-processed goose products are being developed. The consumption in Fujian, Zhejiang, Jiangxi is focused on soy stewing with spicy flavor, the consumer demand has been increasing in recent years. The traditional preserved goose is the durably dominating form of consumption in vast rural areas. For many years, preserved goose has been an entrée on the dining table of farmers. In recent years, the traditional goose processing industry developed by some enterprises in Zhejiang and Jiangsu has grown quickly, with products sold to over 20 provinces nationwide and welcome by consumers. The northern goose breeds bear more, heavier and bigger eggs. The northern goose meat and egg processing is growing continuously, some enterprise have begun to deal with deep processing and launched batches of products onto the market. Goose fat livers produced with the forced fattening technique for export to the West are also the main direction of the northern provinces in goose development. Nearly 600 million people in South China like to eat goose meat. In the meantime, the consumption of goose meat is rising, showing an extensive market. In the market consumption share of meats, goose meat has risen from 1% 10 years ago to 4% now, pork has reduce from 85% to 67%, the future market share of goose meat will remain increasing. In the international market, the market demand for goose meat is significantly increasing, the overseas goose meat price is 2-3 times higher than that of chicken. Goose down has been a shopping-rush product in the global market, goose fat liver is also undersupplied. As learnt, the global gross output of goose fat liver is about 9000t and there remains a gap of 4500t. The Chinese is still an undeveloped virgin land. As shown by market signs, with the deepening of the Reform and Opening, the goose fat liver consumption will rise rapidly. China’s entry into the WTO has brought new opportunities of development for the goose industry. As analyzed by experts, after the entry into WTO, goose will become the leading product in the global livestock product market and the development trend of the global poultry industry. Goose lives mainly on grass and is a grain-saving poultry with strong adaptability to nature and less diseases, seldom using any animal remedy and feed additive. Goose products are nuisance-free green products and also ideal foods for consumption. In recent years, Anhui has placed the goose industry as an important position in stockbreeding development, providing new opportunities of development for the industry.

3. The company enjoys unique conditions in goose raising: the company is located in west Anhui, where there are rich natural resources for the goose industry, including barren hills, barren land, barren waste and water surface resources. The aquatic weed resources have provided an advantaged natural pasture for the industry. The priding west Anhui goose is deemed by experts as a fast-growing breed. Its white down quality is unique in the world and has been undersupplied for years. There is the habit of goose raising and eating here, where salted goose processing has a history of 400 years with experiences in unique processing skills. Preserved goose, air-dried goose, etc goose meat foods have provided infinite business opportunities for many producers and operators. The meat goose industry is the most potential and vigorous rising stockbreeding industry in this district. The government has laid down many preferential policies for large-scale goose

15 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

raising and industrialized operation to help, support and guide farmers to become rich, finding a channel to emplace rural women for employment. Additionally, the technical forces dealing with the goose industry are strong, e.g., the Stockbreeding & Veterinary College in Anhui Agricultural University and the Academy of Agricultural Sciences.

(II) Strengthen the goose product development, perfect the marketing system of goose products

1. Develop food processing industry backed by Zhengda Company

(1) Background of Zhengda Company

Since the introduce of the first meat chicken production line in 1986, Zhengda Meat Chicken Limited has grown into an enterprise integrating breeding chicken feeding, incubation, meat chicken feeding, feed processing, meat chicken slaughtering and processing, cooked food processing and export with the power to engage in import and export. It feeds 100,000 Class AA breeding chickens and 3 million commodity meat chickens, processes 30000t feed and 5 million commodity meat chickens and 6000t poultry meat annually. It has a total investment of 54 million yuan, a registered capital 10 million yuan and above 700 employees, including 280 specialized technicians.

(2) Zhengda Company’s product marketing system

Product positioning: mainly products divided from frozen chicken, cooked foods, feed products for different poultry and domestic animals.

Market positioning: let meat, breast meat, sausages and other deep processed products, mainly for export, other divided products, cooked foods, white-feather meat chicken and feeds for chicken, pig, duck, goose and fish are sold to the domestic market.

Marketing network construction

The company ahs a frozen poultry export division, a frozen poultry domestic sales division, a fowl egg sales division and a feed sales division. Frozen poultry products are mainly sold to Japan, the Middle East and South East. Frozen poultry products for domestic sales are mainly sold through offices in major cities in East China. The annual frozen poultry export is 2000t, domestic sales volume 4000t, high-grade products are sold through supermarkets, low-grade products through wholesale markets. Poultry eggs are mainly sold to Shandong, Henan, Hubei, Jiangsu, Anhui. The annual sales volume of chicken is 6 million individuals and that of breeding egg is 2 million pieces, feeds are mainly sold throughout Anhui at an annual sales volume of 30000t.

2. Development and perfection of the company’s marketing system:

(1) Promote the development of the goose raising industry with technological advance:

The company has gradually developed the gosling, feed, technical service and goose product processing with the advanced breeding technique, product development and quality control system of the Anhui Agricultural University. Its main products include goose meat divided products, further processed products, cooked foods, goose down products, goose fat liver. It

16 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment plans to develop 40000 fine-breed breeding geese by 2006, produce 1.47 million commodity goslings annually, develop 3500 goose raisers, release 1.4 million meat geese annually, set up a meat goose slaughter and processing plant to slaughter 1.4 million meat geese annually. Although goose feeding has a history of thousands of years, there has been limited study into the goose production technique worldwide. There is also limited application of goose breed, strain establishment, breeding and breed selection techniques, there is not year a normative feeding standard, epidemic control procedure, feed nutritional standard or processing quality standard. Accordingly, we have formulate the corresponding procedures and specifications for the goose industry as a guide to production ad technical popularization. For example, the artificial fertilization technique of goose is a key to the winter breeding of goose, especially the hybridization among varieties with greatly varying bodily forms. Compared to natural mating, the reproductive force of artificial fertilization is one time higher.

A standard slaughter and processing plant will be set up in strict accordance with the int’l quality control system ISO9000 and HACCP food safety control requirements. Modern food processing techniques and advanced production equipment will be introduced, such as high pressure sterilization, microwave sterilization, vacuum preservation, etc. We’ve developed air-dried goose products in collaboration with the Wenzhou Foods Institute and Wuxi Light Industry College, developed a series of seasonings in cooperaton with Japan Ramtathe Co., Ltd. for export to Japan. We plan to set up a modern cooked food processing plant using the advanced nitrogenous gas conditioning and processing equipment of Xiaoye Corporation to process goose products into safe, sanitary foods suitable for consumers in different regions. With the meat goose processing industry’s development, the company shall guarantee the recovery of adult geese of breeders. This will promote the sustained growth of the goose raising industry under the “company +association + farmers ” pattern.

(2) Scientific marketing positioning for different consumer markets:

Soon after the company’s foundation, it sold live geese utilizing its existing marketing network. The marketing radius of live goose is small, covering major cities in Anhui and Jiangsu. In the meanwhile, in adaptation to the gradually pursued livestock and poultry product admission system, we must make full preparation for the slaughter of live goose, lay a good foundation for the primary and deep processing of goose meat, which is also an important channel to guarantee breeders’ interests.

Idea of medium/long-term development

Domestic market

China is extensive geographically, with varying consumer tastes and habits. The meat goose processing industry should be developed to provide traditional goose meat products to meet different goose meet demands. For instance, people in East China like to eat preserved goose in winter, people in Anhui, Jiangsu, Shanghai and Zhejiang like to eat air-dried goose, goose internal organs, wings and claws are suitable for hotels and restaurants. Accordingly, we’ve processed different products to suit different consumer levels and markets on a differential market positioning. High-grade products are oriented to chain stores in central cities, while ordinary products are sold through urban wholesale markets.

17 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

Foreign trade market

Marketable products are developed to suit international market demands. Goose fat liver is the goose product with the highest added value and has been regarded as a delicacy and high grade nutriment by developed countries. Its medicinal effects have also been affirmed by the world. Despite of its high price, it is still undersupplied. Goose fur is praised by the world due to its lightness, thinness, warmness, beauty and novelty. Goose down and its series of products have been shopping-rush products in the world. Accordingly, aiming at the global market demands, goose fat liver, goose fur and goose down products will become the focus of development. Meanwhile, the cooperation with Japan, Korea and countries in Southeast Asia will be strengthened for goose meet product development.

(3) The company’s marketing network system:

Establish our own domestic and export sales market systems. Key persons in our company’s management have been derived from Zhengda Company with years of experience in market operations and management both theoretically and practically. At present, we’ve established live goose markets in Hefei, Maanshan, Anqing, Chaohu and Tongling in Anhui; Yangzhou, Changzhou and Nanjing in Jiangsu, Shanghai. Zhengda Company’s cooked food processing plant processes air-dried goose, preserved goose, bittern goose products for sales to every part of Anhui. A sales force of over 20 persons conducts publicity and marketing nationwide, our products are undersupplied and the company’s marketing network has taken form.

VI. Yeji Test Area Goat Industry Technological Demonstration Project

1.Affected Farmers and Project

The Yeji test area was founded in 1998, governing the Zhanqu, Pinggang, Sungang, Sanyuan towns, with a total area of 320km2, of which the hilly area is 286km2, accounting for 89.4% of the total area, with a total population of 151,00 people. It is located at the junction of 3 provinces—Hubei, Hunan and Anhui, north of the Dabie Mountain, run through by National Highway 312 and the Ning-Xi Railway, enjoying convenient traffic, being a time-honored trading center in West Anhui.

The traditional industry of the affected area is cultivation. In 2001, the per capita net income of farmers was 2170yuan. Affected farmers have the tradition of goat breeding, generally a family raise 6~10 heads, this is treated as a sideline and the annual released amount is about 30,000 heads. There are many Huis in Yeji District, mutton is the main meat food in Yeji all the year round. In the long practice of life, the Yeji people have mastered a set of unique cooking skills, which are combined with the local quality goat and special water quality to cook spicy and delicious mutton. There must be mutton on every table in local restaurants, where 20 mutton dishes are available. Local farmers have begun to launch distinctive mutton in supermarkets.

18 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

The affected village investigated is Silin Village in Yeji, which has a total area of 5600mu, 642 families, per capita income of 1920yuan, including 300 goat raisers, accounting for 80%. This village began to raise goat since 1980s, when all goats were indigenous. Now a typical sheep raiser raises 7-8 heads of sheep, mostly the old breed with poor profitability because this kind of sheep is small and has a long growth period. Nevertheless, the income on sheep raising accounts for 1/4-1/3 of a sheep raiser’s household income. Since last year, the sheep raising association began to popularize Boza Generation I sheep at the village by means of “repayment of sheep loan with sheep”. This kind of sheep grows better than the indigenous sheep and is more profitable. It can be seen that affected farmers have a long history of sheep raising and a good mutton market. Sheep raising is accounting for a high proportion in the household income and is a point of local economic growth. Accordingly, they welcome this project and believe it will effectively improve their household income.

The project risks proposed by farmers are mainly cultivation and market risks.

Attached: Case Analysis

Since there are Huis living in Yeji District, the tradition of sheep raising has been influenced by the Islamic culture.

Zhao Youxia, Hui nationality, over 30 years, with 3 children.

I married to this village from Yeji District. There is a Hui street in Yeji. My family began to feed sheep long ago, many people have been here to buy sheep, because the mutton here is tasty and free from odor. The Huis here are mostly Han-ized, my parents do not eat pork. I didn’t eat pork until I came here. I’ve raised sheep for 3 years, 2-3 heads at the beginning by repayment of sheep loan with sheep with relatives and friends. I didn’t sell any sheep until I had 10 heads on hand. Now my family has 5 local heads of sheep only and 4 heads of Boza Generation I sheep. I have sold out the old local breed and prepare to raise the new breed. The remaining 5 local eves are used to breed with Boza Generation I, an eve can live 20-30 years. My husband is working outside, I exchanged my farmland or 40mu barren hill at the village for sheep herding. I also plant trees on the barren hill, there are many weeds on the hill. Raising sheep of the old breed, I can earn 5000yuan a year, if the scale of cultivation of the new breed is enlarged, I want my husband to help me at home, it’s hard to work outside. The key to sheep raising is to be careful, which is suitable for women.

I didn’t joint in the association in the past, but now I’ve submitted an application form. The association is very good to us, it offers technical guidance and preventive injection, just the same for those not joining in the association. I seldom attended its training in the past, since it was inconvenient to notify a non-member. I’ll attend lectures more often.

We have no risk. If the scale is enlarged, I can ask someone to help at home. Now many men here are working outside, women are the pillar of the family. I’m very eager to enlarge the scale and want to build a standard scientific breeding sheepfold, expect the government and the association can support me. It will need about 10,000yuan to build a sheepfold for about 20 heads of sheep.

19 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

2. Problems in Project Design/Execution and Suggestions

A. Problems and suggestions proposed by World Bank Mission

The mission supports this proposal and recommends including it under the project. The mission recommended to reconsider some of the proposed investments and to take them out from the proposal. In particular the reasoning for the association to invest in feed and fodder production and in a feed processing factory is not clear. The mission recommends considering alternatives such as negotiating of the associations with existing feed companies to get good deals and conditions for its members. The mission also recommends excluding the proposed goat market. Alternatively the farm out-reach component could be expanded.

B. Problems and suggestions proposed by POCAD

(1) What are developed by this project is local specialties that suit the local geographic conditions. The practice of returning land for farming to forestry encouraged by the project complies with the state policy.

(2) The mode of “repayment of sheep loan with sheep” is excellent.

(3) The association is an entity in nature, guaranteed in fund use.

(4) This teat area is situated at the junction of 5 counties in 3 provinces, where the sheep sales market is prosperous.

(5) It should be noted to realize large-scale cultivation as soon as possible, the sheep raising association’s mechanism should also be further perfected.

C. Problems and suggestions proposed by association

(1) The association thinks there are the following problems: despite of a foundation of sheep raising, the scale of goat raising is small; shortage of fund and the scale of repayment of sheep loan with sheep is small, unable to satisfy farmers’ demands; the goat breed in Yeji District is mainly Huanghuai white goat, which has a low breeding benefit and needs improvement; the level of goat industrialization needs increase, the leading enterprise’s driving force is not strong and its market system unsound.

(2) The World Bank Mission proposes that the World Bank’s fund cannot be used for the construction of the feed factory and sheep market, which is understood and supported by the association. The association plans to draw on the folk funds and nongovernmental capital for such investment.

D. Problems and suggestions proposed by farmers

The project fund is expected to be used to: support farmers to construct standard sheepfolds, epidemic prevention, technical training, breed improvement and pursue “repayment of sheep loan with sheep”, etc.

20 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

VII. Feixi Distinctive Nursery Stock Flower Technological Demonstration Base Construction Project

1. Affected Farmers and Project

The project area is located in humid and monsoon climatic of the subtropical zone. It has longer non-frost season, warm climatic, moderate rainfall(1007mm), average temperature of 14.8-15.9 and lowest temperature of –16 and highest temperature of 40.6, rich sunlight. Total of 8 million ton water could be used for farming production. The type of soil is divided into two types: paddy soil and yellow-brown soil with good fertility suitable for base construction of nursery stock and flower.

There are 16 villages consisting of 7500 farmer households with 532 thousand farming population and 17 thousand labor forces in the project demonstration zone. In the demonstration zone the cultivated land is 21 thousand mu, the coverage area of elite crop variety is 85%; the productive value from plantation is 138.8 million yuan and the net annual income/farmer is 2500 yuan. In the demonstration zone, the area of nursery stock and flower planting has reached to 16 thousand mu. 13 thousand farmers in 16 villages are engaging in the nursery stock and flower production, which has grow for new point of economic progress. The productive value from the industry accounts for 70% of total productive value in the township. The demonstration zone has become the important place of nursery stock and flower production, trade and transportation, and the Large Market of Nursery Stock and Flower with the area of 200mu is being enlarged, which will greatly promote the development of nursery stock and flower industry in the project area.

The affected village investigated is Tangxie Village under Shangpai Town in Feixi County. This village has 320 families, 1297 people, 1807mu land and per capita income of 2300yuan. The village has about 800mu land for saplings and flowers, and the remaining land is used to grow paddy rice, peanut. In 1999, 3 families of this village joined in the flower and sapling association only, now there are above 170 members. At present, 280 families of this village are growing flowers and saplings, the income on which accounts for 70% of the household income of major families and 40% of that of ordinary families.

Farmers think the “association + farmers” pattern can help them introduce new varieties and the effect of technical training is good. As to risk, they think there are market and cultivation risks, but the risk for farmers is small, because as long as they plant the variety suggested by the association, there will be almost no risk, because farmers have signed an agreement on purchase at the protective price with the association.

Attached: Case of Investigation

Lan Dingkui, male, Han nationality, 45 years, graduate from junior high school. His wife is 45 years, graduate of primary school. His father (65 years) and mother (63 years) suffer from diseases, costing much money for treatment. His eldest son is 24 years, deals with farm work,

21 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment graduate of junior high school, his little son is 21 years, graduate from junior high school, is also doing farm work at home. Both sons are unmarried due to the poor financial situation. There is about 10mu land at home.

The family is still living in an earth-walled thatched cottage. Although the 2 sons are clever, but the family cannot afford their educational expenses, they had to return home for farm work after graduation from junior high school. He sighs that, if the family condition is better, they could have attended university.

The income in last year was merely 3,000yuan, including 1100yuan from cotton, 700yuan from rape and 800yuan from peanut, some from pig and chicken raising. However, it took above 3,000yuan to treat diseases for the parents. Accordingly, the family has to incur debts every year and is faced with high economic pressures.

With the help of village cadres, Lan jointed the flower and sapling association of Shangpai Town in 2002 and borrowed 2500yuan from a relative to plant some flowers and saplings. The association warrants the sales of all flowers and saplings, he then planted 4mu camphor tree with ease. But he will not get any income until the next year. Nevertheless, he has told us confidently that, as long as he persists, his family’s poverty will be thoroughly changed in a few years. However, Lan is not satisfied with the present situation and is eager to borrow some money to enlarge the planting area by virtue of this project. According to his idea, he wants to grow flowers and saplings on the entire 10mu field at home, which will make him rich soon.

The association would hold 4 training meetings at the town every year, involving thousands of people. The clamorous environment compromised the effect of training. He then hopes the training meeting can be held at the village, so that they can hear more clearly without the trouble of going to the town. There is also difficulty with village-by-village training, he then suggests gather 2-3 villagers for training, or a village assigns one person to learn skills, who will train villagers at each village. It is very good for the association to assign technicians for technical guidance in the field, he hopes this can be kept on.

About the project fund’s use on farmers, Lan thinks the primary problem is traffic. It’s also necessary to do well in water conservancy construction. It’s suggested to provide financial support to families in difficulty, pay more attention to technical training and help the village with Internet access and agricultural network construction for information communication.

2. Problems in Project Design/Execution and Suggestions

A. Problems and suggestions proposed by World Bank Mission

Mission Recommendations: Proposal is potentially suitable to be included under the project. However, the Review of the proposal elicited the following mission comments and recommendations:

The Feixi County proposal needs to address the following issues, by formulating plans to:

22 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

• Review its current membership with a view to provide each of its components (traders and farmers) a balanced and harmonized set of services.

• Remain a pure service organization for its members and not undertake commercial activities, which eventually would compete with the interests of one group of its member groups, in particular with farmers producing the same products.

• Look for alternative ways ensuring the association’s financial viability, e.g. by charging fees preferably based on services provided.

• Explore and propose ways to empower all the members of the association, especially the small farmers and women who are now marginalized, to participate in defining its activities and setting its priorities.

• Effectively target project assistance to the association as an institution, not to a few segments of its current membership.

• Revise the association’s charter to preclude it from competing with its members on major products.

• Negotiating prices for mature plants and seedlings presents conflicts of interest between two types of members. There is a need for a mechanism to separate out bargaining function for grower households. Perhaps separate organizational format is necessary either within or without current Association.

• Women’s labor critical input for production, yet women not proportionately represented in training, technical work, management, or Association leadership. There is a need for an affirmative action plan for women; perhaps with aid of Women’s Federation.

Propose ways to increase transparency in the operation of the association and improve its financial management and the auditing of the association’s accounts and assets.

B. Problems and suggestions proposed by POCAD

Provincial project officials think this project has the following advantages:

(1) The organizational form of the association is to be run, managed by the public and to benefit the public.

(2) This association has set up its own marketing network, which will help reduce the project’s market risk.

(3) This project is adapted to the need of urban construction and the policy to return land for farming to forestry, enjoys a good market prospect.

Deficiencies include:

(4) The association is still at the exploratory stage, whose external environment is still to be improved.

23 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

(5) Experiences and practices of overseas farmer associations should be introduced to increase its degree of systematization, it’s also necessary to make the association an entity with reference to the conditions of China.

C. Problems and suggestions proposed by association

The “technology + association + farmer” pattern is new to China, so it should be guided by the World Bank and experts.

D. Problems and suggestions proposed by farmers

(1) The project fund is expected to improve the local traffic and water conservancy conditions and give support in respect to startup fund.

(2) Since the existing channel of information is unsmooth, it’s expected to build the local Internet and train the personnel for Internet access, so as to help the village collect and release market supply-demand information on Web.

VIII. Bengbu Suburb Quality Paddy & Wheat New Variety Development and Popularization Project

1. Affected Farmers and Project

Analysis of affected farmers: since the seed cultivation base requires centralized planting, it is not allowed to plant any wheat or paddy of any other variety in the base and isolation belt. Accordingly, all farmers in the selected area can participate in the project.

Expected benefits of farmers: the per capita annual income of farmers in the affected area and radiation area will rise by 400-160yuan. Farmers’ technical level and women’s status can be improved, the agricultural production conditions will be improved.

The project risks proposed by affected farmers include: natural disaster risk and market risk. Farmers are mainly faced with the natural disaster risk, the market risk will be assumed by the company.

The SA Team conducted a field investigation on Hukou Village under Meiqiao Township.

According to the information provided by village cadres and villagers, this village has 175 families, 766 people, 1100mu tilled land, 1.4mu per capita and per capita annual income of 1400yuan. The household income comes mainly from working outside, garlic planting and paddy, wheat seed cultivation.

The 2 village-level committees discussed with the company for the establishment of a seed cultivation base at this village in 2002, after a forum of the company with villagers, both parties reached the will of cooperation and entered into a contract. From the trial plantation in this year, villagers are satisfied with the company’s service and confident of obtaining the

24 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment expected economic benefits. Accordingly, for the future execution of this project, villagers have shown great enthusiasm.

Attached: Case of Investigation

Villager of Hukou Village under Meiqao Township in Bengbu City, Zhou X, male, 38 years, junior high school, Christian. His wife is 38 years, graduate from junior high school, also Christian. His daughter is 17 years, studying at Grade 3 of junior high school, his son is 14 years, at Grade 1 of junior high school. Now his family is relatively poor. There were 53 poor families at the village in the past, including 24 extremely poor families, Zhou’s family is one of them.

His family has 7mu land, of which 6mu is for paddy field, seed has been cultivated this year. In the year before last, 4.8mu land was for seed cultivation, since the price was low, less land was grown, yet he earned above 3000yuan. This year, since the company has offered very attractive conditions, all the field at home is used for seed cultivation.

Zhou thinks this project is very promising, so that he is very enthusiastic for the project and hopes to make the family rich by taking this opportunity.

About fund use, Zhou proposes the following purposes: to reinforce dykes of the Fei River, build roads, conduct water conservancy modification.

As for project risks, Zhou optimistically thinks that there is nothing to worry about.

2. Problems in Project Design/Execution and Suggestions

A. The existing proposal from the company is not recommended for project financing but the company may wish to rethink its approach.

For the company to survive and prosper and increase farmer incomes it will need to develop significant points of difference between itself and its competitors. Presently it is structured and operated as a semi-privatized county seed company that uses farmers as out-growers. Some additional benefits accrue to participating farmers but these are small given the competitive nature of the seed and vegetable business.

As discussed between the company and the mission it is suggested that the company consider restructuring its shareholding to include participating farmers. Such an arrangement would encourage farmer loyalty to company products and activities and increase farm incomes through profit sharing.

The company already has a skilled workforce and strong linkages with researchers as well as large and up to date greenhouses and propagation facilities. It is suggested that the company review its current operations and look at activities that would provide for more innovation in its business strategy.

B. Provincial project officials have raised the same opinions as the World Bank Mission.

25 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

C. The company thinks it is possible to absorb farmers for shareholding by land on a voluntary basis.

D. The interviewed villagers hope to use a part of the project fund on the following: dyke reinforcement of the Fei River; road construction; modification of water conservancy.

IX. Chizhou Nuisance-free Sweet Potato & Beans Industrialization Project

1. Affected Farmers and Project

Local farmers have organized a cooperative spontaneously, which is very similar in nature to an association and a federation of planters playing the role of communication, coordination between planters and the company. The cooperative has been run for nearly 1 year, wining good comments from farmers, now more farmers are ready to get affiliated.

Since the contract between the cooperative and farmers is very advantageous to farmers, many farmers say that the participation in the project will have no risk.

Attached: Case of Investigation

This case shows, farmers have a pleasant cooperation with the company and have got many material benefits.

Villager at Hua Village, Shecun Town, Chizhou City, Luo XX, female, 30 years, graduated university in 2002, majoring in economics. His husband is 30 years, a graduate from senior high school, now planting vegetables along with her, with a 5-year-old boy.

The family has 2mu paddy field, 1mu dry land; and rents 10mu land at a rent of 40-50yuan a year. This year, the family plants 10mu sweet potato and 1mu Tonka bean.

In the past, the income came mainly from tealeaf, silkworm and hemp. After its entering into contract Jiuhua Company, the income came mainly from vegetable plantation. Generally, a laborer can plant 0.5mu Tonka bean, there is daily income of 40-50yuan at peak periods. Her family now grows sweet potato and is cooperating pleasantly with Jiuhua Company, often obtaining the company’s free training.

The technical training is generally conducted in a combination of graded training and direct training, associated with field technical guidance. The cooperative also has a telephone for free offering of technical consultation.

She suggests the project fund can be used for infrastructure improvement, loan to farmers to enlarge the scale of production; further improvement of training.

26 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

2. Problems in Project Design/Execution and Suggestions

A. Problems and suggestions proposed by World Bank Mission

Comments/suggestions:

- Improved technologies for virus free and green sweet potato growing and processing provide the basis for the company to expand its production to capture the growing export market in Japan, and with beans and peas to some extent in US and EU.

- The proposal is in line with the Ecosystem economy demonstration region granted to Chizhou nationally. This has also been recognized by Japan, which gives an advantage for vegetables exports to Japan.

- The Company has a retainer contract with Anhui Academy of Agricultural Sciences for technical support and rights to new sweet potato varieties.

- Financing of the project is recommended, with the following changes:

o Review of the Bank finance allocations (farmers vs. company assets, the company is also funded by other public sector sources, ours should emphasis the outreach component);

o Development plans for the farmer associations (women farmers inclusion, what services provided, who pays for the executives; executive elections, etc.);

o Option for sharing ownership of the company against the Bank financing of capital assets.

o Clarification to the access of plant breeders’ rights for the company of the improved germplasm.

B. Problems and suggestions proposed by provincial project officials

The cooperative is sponsored by the government and founded by farmers, so it is welcome by farmers. Nevertheless, the “company + cooperative + farmer” pattern employed by the company is just started and still to be perfected. The government may guide the cooperative properly, the villager committee may also attend the cooperative and assist is in purchasing products.

C. Problems and suggestions proposed by project company

The company thinks the current difficulty is fund and hopes the World Bank’s fund can get in place timely.

D. Problems and suggestions proposed by farmers

The project is expected to be executed as soon as possible.

X. Dangshan Pear Green Food Standard Production & Air-conditioning

27 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

Preservation Technique Demonstration Project 1. Affected Farmers and Project

Dangshan is located south of the Huang-Huai-Hai Plain, with an annual rainfall of 767mm, plenty of light, heat resources and deep soil layer, very suitable for growing pear. There has been the tradition of pear planting among local farmers and the degree of industrialization is very high.

The affected village investigated by the SA Team is Dongzhuang Village under Xuanmiao Town, where there are 3523 people, 827 families, 3761mu land, all dry land, 1mu per capita. Farm products are fruits, especially Dangshan pear. The fruit income accounts for 60%-70% of the household income. The pear price during 1994-1998 was 1yuan/catty, villagers’ per capita annual income was about 2000yuan; after 1998, due to the increase in pear output, the pear price fell to 0.3-0.35yuan/catty, the per capita annual income fell to around 1650yuan.

Villagers have got a certain understanding of this World Bank project, because the company and the villager committee have made publicity. Nevertheless, many villagers have regarded it as a poverty-relief project. The difficulties reflected by villagers include: the refrigerated warehouse of the company is not large enough to store sufficient pears, so that some pears are rotten on the tree; the support to poor families is inadequate, farmers cannot afford to set up a preservation cellar; since pears are stored in the cellar, women painful to move a pear box. The project is hoped to modify the cellar, or deliver picked pears by truck directly to the company’s refrigerated warehouse.

Villagers suggest using the fund to build air-conditioned warehouses, bridges, roads, drill wells for irrigation, fund farmers to build semi-cellar preservation warehouses and improve varieties, conduct technical training, etc.

Farmers think project risks include: market risk; natural disasters.

Attached: Case of Investigation

This case shows, the project company’s marketing capability is strong farmers are confident of the company. The wife of the respondent has the power of decision-making in the family, on the same status as her husband.

Li Quansheng, male, living in a 4-menber family, 4mu land, 1mu for apple, the remaining for pear, to be inter-planted with vegetables and peanut, apple planting is more technically demanding than pear. 70% of my time is spent on agriculture and the other time is for doing business, selling vegetables. All my fruit products are sold to the project company. I began to cooperate with a fruit marketing agency since 1991, which was renamed as Lidu Fruits Co., Ltd. in 2002. I thinks this company is excellent. Without it, my income couldn’t have been so high. The per capita income of my family is 3500yuan, the key sources of income include fruit, about 10,000yuan; working for others, above 1,000yuan; and selling vegetables, above 1,000yuan, amounting to 16,000yuan a year; my expenditures include the children’s tuition, living expenses, entertainment expenses, amounting to 10,000yuan annually.

28 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

There is no clear division of labor between my wife and I. The participation in this project is a joint decision of us. I’ve cooperated with this company for many years and have trust in this company. If the World Bank project is executed at our village, our income will be highly increased. If edible fungi are developed, the income will be considerable. The company + farmer pattern is very good and can benefit farmers, not only the price is higher than the market level, but also the product quality will be improved. The company needs to increase its investment in equipment and infrastructure construction to facilitate farmers’ production. The company provides us with fertilization, pesticide application and green food techniques. This pattern can achieve the effect of agro-tech popularization. The company gives effective spot guidance to us. Whenever I meet with a technical problem, I will consult the company, which will assign a technician. My family’s income in this year will be higher than in the last year, because I’ve planted 1.5mu new variety this year, which will increase income by 1yuan/catty. I expect the company to create a famous brand to enlarge its market.

2. Problems in Project Design/Execution and Suggestions

A. The World Bank Mission suggests:

The proposal is recommended for further consideration under the proposed project. It offers

• Innovative technology that will substantially enhance an existing natural resource;

• Extensive farmer involvement and the opportunity to increase incomes by improving output per unit area of land and diversified production

• Supporting technology services that would assist farmers improves their existing resources and allow for a substantial increase in farmer participation.

• Promotion of ‘green’ products

It is suggested that the company consider establishing a separate corporate entity to own and manage the proposed CA storage facility. Participating farmers could be offered a shareholding in the new company that would increase farm incomes and assets. Such an arrangement would also develop a stronger business understanding of the industry amongst the farming community and encourage the shift towards better orchard practices.

B. Problems and suggestions proposed by provincial project officials

When the pear price was high, the government once encouraged and drove farmers to plant Dangshan pear, now the pear output is increased and the market launch is intensive, then a considerable part of products become unsalable or have been sold at low prices. Farmers’ interests have been greatly prejudiced. This project will effectively abate the supply-demand contradiction and help farmers resolve the problems of sale resistance and low price.

C. Problems and suggestions proposed by project company

(1) The company worries a lot about the degree of technical fulfillment, namely whether farmers can perform the technical regulations precisely. Meanwhile, it worries about the good faith of farmers and hopes the government to supervise the contract performance.

29 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

(2) The funds, including counterpart fund, are expected to get in place timely.

D. Problems and suggestions proposed by affected farmers

(1) The project is expected to help them select new varieties welcome by the market for variety improvement.

(2) The project is expected to help improve household semi-cellar storage rooms to relieve the labor intensity of farmers in carrying and cellaring pears, especially women.

(3) The project is expected to be executed as soon as possible to benefit farmers.

XI. Feixi Nuisance-free Peanut Production Technique Demonstration & Popularization Project

1. Affected Farmers and Project

Donggang Township in the affected area is a poor town under Feixi County, where affected farmers are mainly found in Donggang, Chengang, Hutang, Cishan, Hongxing, Caichong, Qunguang, Tonggang, Dazhong and Guantang Villages, covering 2000 poor families.

The SA Team conducted a field investigation on Dazhong Village under the township, where there are 1753 people, 423 families, 34 extremely poor families, 414 peanut planters, with per capita annual income of about 1980yuan.

The following case shows the cooperation between affected farmers and the company: the company offers guaranteed price and purchase, the company is trial-planting a new product; farmers are satisfied with the contract; women attend the training but less active than men.

Attached: Case of Investigation

Chen, female, 41 years, living in a 5-member family, including her husband, 2 daughters and one son. Her family has 7mu land, planting peanut and paddy rice. The couple deals with farming, 1mu peanut can be sold to Wanzhong Peanut Company at above 1000yuan. In 2001, they began to contract with the company on an annual basis. The contract stipulates that, if the company’s price is higher, farmers may sell peanut to the company, if the market price is higher than the company’s purchase price, farmers may sell peanut to others. 1mu paddy rice can earn above 400yuan, costing higher costs and time than growing peanut. Farmers are willing to grow peanut. Importantly, now we can sell peanut to the company at any time. In the past, we could only sell peanut on the market. The consideration for contracting with the company is that we don’t have to worry about the market outlet and the company provides free film to farmers and assigns technicians for field guidance. I feel the company + farmer pattern is very good, otherwise our peanut will be rejected.

30 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

Presently, I’ve not grown the new variety of the company yet, because there is no experience. Some villagers have planted but gained poor benefits.

I feel that the current contract can basically guarantee our interests. Farmers are the greatest beneficiaries. Except natural disasters, we’re exposed to no risk. The company has assumed most risks.

I have attended the company’s technical training 2-3 times and feel it very effective. Before that, we had learnt no agro-tech. Now we’re seriously short of agro-tech and would contact with the company by telephone in case of any difficulty in production.

This year, our income is almost the same as the last year. The company deals directly with farmers without passing through the villager committee. In our family, it’s up to my husband to decide whether to participate in the project and the degree of participation. The technical training is mostly attended by my husband. I think there is insufficient labor at home, so my labor intensity is heavier and heavier. Mostly women are growing and peeling peanut.

2. Problems in Project Design/Execution and Suggestions

A. The World Bank suggests:

Mission Recommendations: Proposal is potentially suitable to be included under the project. However, the Review of the proposal elicited the following mission comments and recommendations:

• Review and correct cost tables (Appendix Table 3) as discussed with WB mission.

• Formulate a methodology to select project farmers with a view to exclude rich farmers.

• Since some of the project funds of the SOCAD and provincial/county counterpart funds may be provided in the form of a grant, companies should explore the possibility of giving participating farmers/villagers equity share in the company in an amount commensurate with the grant they receive.

B. Problems and suggestions proposed by provincial project officials

This project has advantages in variety, traffic and geography. The income on peanut planting is 3 times that on paddy rice and is worth popularization with the project. The deficiencies include: 1) processing cannot keep up, it’s necessary to develop a series of products through the project; 2) peanut has many underground damages by disease and insect, farmers have applied large amounts of pesticide and fertilizer in the past, leading to high pesticide residue in peanut. It is expected to apply nuisance-free techniques to reduce such damages, reduce the use of pesticides and thereby reduce the pesticide residue through the project.

C. Problems and suggestions proposed by the company

(1) It worries the lack of technical supervision can hardly guarantee the product quality and is ready to introduce this link.

31 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

(2) It worries that farmers cannot practically perform the contract, so it hopes to establish a mechanism of shared interests and risks.

D. Problems and suggestions proposed by farmers

(1) Peanut has many underground damages by disease and insect, the project is expected to bring nuisance-free techniques to reduce the pesticide residue in peanut.

(2) Women expect to improve their own statue by attending the project.

XII. Farmer-centered Sustainable Agro-tech System Construction, Demonstration & Popularization Project

1. Affected Farmers and Project

The test area is situated at the south tip of the Huang-Huai-Hai Plain—the greatest plain in China—and is the greatest agricultural area along the Huaihe River in Anhui, an important agricultural commodity base of China. It covers 3 towns, 43 administrative villages, nearly 30,000 farmers and above 100,000 people. By the end of 2002, per capita farmer net income in the test area was 2327yuan, coming from planting, stockbreeding, labor export, secondary and tertiary industries. Most farmers live mainly on grain planting. Owing to the unbalanced economic development, there are certain parities in per capita income among different towns and farmers. The per capita net income of rich people can be above3000yuan, the lowest per capita income of poor people is 605yuan only.

The project beneficiary groups are farmers dealing with crops production under the project, farmers dealing with mushroom planting, farmers dealing with cash crops production, some poor people and women. By participating in the project, farmers can obtain advanced skills and necessary funds for technical application, have their basic production facilities improved and financial status gradually bettered. Since many young adults in the test area are working outside, the labor is heavy on local women, so women and poor people will be the concern of this project.

The SA Team has made a field investigation on Yaoli Village in Maoji District, where there are 582 families, 2372 people, per capita annual income of 2024yuan, which is just medium in the district. Compared to 1998 (1980yuan), the present annual income has just increased by tens of dollars, villagers are dissatisfied with their income growth rate.

As for technical training, agro-technicians would come to the village for training 2-3 times at the village in the past, covering melon planting, feeding, double spore mushroom planting, etc. Usually a training course was taught by several experts for each technique, half an hour on average. Maoji District has also held intensive training oriented to the villages, involving hundreds of villagers at a time, with about 20 attendees from each village. There is a science and educational program at 9:00am for agro-tech guidance courses. Since this TV education

32 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment was vivid, it was favored by farmers. In addition, the radio station of Maoji District has also launched agricultural science and educational programs. Many women attend training.

As for the project’s risks, villagers reflect that, since this project is a public benefit one that excludes the marketing section, farmers shall solve the marketing problem by themselves. Accordingly, farmers, especially women and the poor, will face some market risks. Natural disasters would happen if this project is not launched, so these are not the project’s inherent risks.

The interview with farmers indicate that, farmers with a better sense of market hope to raise their income via distinctive planting and cultivation, many farmers have adequately realized the importance of technique in the rural economic development and have a strong desire to study techniques. For now, it is the shortage of technique, fund and information that restricts their development.

2. Problems in Project Design/Execution and Suggestions

A. Problems and suggestions proposed by World Bank Mission

Mission Recommendations: Proposal is potentially suitable to be included under the project. However, the Review of the proposal elicited the following mission comments and recommendations:

• This is basically a public goods project, where a novel approach to government, through an executive committee (of Maoji Special District of Comprehensive Social Development) with county-level administration power, will focus on empowering farmers for the purpose of improving technology adoption and improving the use and management of natural resources.

• Update text of feasibility study by including a brief activity implementation plan. This implementation plan should provide information on when, how and by whom the proposed activities will be implemented.

B. Problems and suggestions proposed by provincial project officials

The Maoji test area project has unique institutional advantages—high degree of involvement of the Academy of Agricultural Sciences. However, since the project involves a variety of techniques, the project design should be further itemized to ensure the project’s successful execution.

C. Problems and suggestions proposed by farmers

Owing to the shortage of fund, technique and market information, it’s difficult for farmers to increase their income. The project is expected not only to hold technical popularization and training courses for farmers, but also provide the benefit of increased output and income to farmers.

D. Problems and suggestions proposed by agricultural experts

33 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

Qiankun—an expert of the Provincial Academy of Agricultural Sciences—suggests to add funds to the Maoji project, because this project involves a wide range of fields and above 50 technological achievements, new varieties and new techniques to be converted. If the project funds are added, the project will be better executed to generate greater social and economic benefits. He also hopes that the project funds independently controlled by the Academy of Agricultural Sciences can account for above 20% of the World Bank’s funds (central funds), making sure there are sufficient funds for scientific research and technical transfer.

XIII. Nanling Farmer-centered IPM Technique

Demonstration & Popularization Project

1. Affected Farmers and Project

Nanling is located southeast of Anhui, affiliated to Wuhu and has been always renowned as “a land flowing with milk and honey”, being the main grain producing area of Wuhu—one of the 4 major grain distributing centers of China. The county has a tilled area of 510,000mu, including paddy rice area of nearly 470,000mu; crops are double-harvest rice and rapeseed mainly, cereal crops include paddy, wheat, bean and potato. By the end of 2002, the county’s total population was 545,300 people, including a rural population of 478,900 people, rural labors of 29.350,000 people, about 120,000 people working outside. In the affected area, the per capita farmer income is 2400yuan, of which there are: 941 poor families with per capita income of below 800yuan, accounting for 3%; 10970 farmer families with per capita income of 800~2000yuan, accounting for 35%; 19450 families with per capita income of 2000yuan or above, accounting for 62%.

The project involves Donghe, Xitan, Gelin and Yejiang towns in this county, cultivated area of 100,000mu, 30 villager committees, 31378 farmer families, 97,700 people. Farmers are the main force of this project’ construction. Through the IPM technical demonstration, field schools will be set up to train farmers and improve their scientific, cultural qualification of farmers, especially women and the poor, promote their income increase.

Hu Jinyu—Head of Gelin Village under Gelin Township—tells the situation of women and the poor: young adult laborers are working outside, women are assuming heavy farm work, families without working laborer are generally poor.

The key problem reflected by villagers is, farmers do not have agro-planting techniques and would use excessive pesticide, seriously polluting farmlands and resulting in a high pesticide residue on paddy rice. Accordingly, farmers hope to master planting techniques by attending practical agricultural training courses or via billboard, library, so as to increase the output and quality of paddy rice.

Attached: Case of Investigation

34 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

Guan XX, male, 26 years, graduate from junior high school; His wife 25 years, junior high school education, his daughter is just 4 months.

Our village is composed mainly of women, children, the elderly and some unskilled people. If there is any way to earn money here, those working outside would have stayed. These young women (those attending the forum) stay with their husbands for several days of a year only, the whole family relies completely on them.

Guan thinks that the project will benefit farmers in the following ways:

1) The mechanization level in agricultural production in the affected area can be improved, reducing farmers’ labor intensity.

2) The technological training can improve women’s technological and cultural quality.

3) The IPM technique can reduce pesticide pollution, promote the sustainable agricultural growth in the affected area.

4) The “company + farmer” pattern can provide a stable market outlet and a suitable price to farmers, farmers’ income can hence be increased.

5) Variety improvement can increase the per mu yield, increasing farmers’ income.

Guan proposes that, to guarantee farmers’ interests, the company must contract with farmers. Presently, they know little about the project. To guarantee farmers’ interests, the government is suggested to publicize the project widely.

2. Problems in Project Design/Execution and Suggestions

A. Problems and suggestions proposed by World Bank Mission

Comments/suggestions:

- The IPM proposal fits well to the county’s green grain industrialization zone context

- This policy context should be explained in the proposal

- Presently the proposal is a traditional technology extension approach without linkage to the market or farmer incentives to use the technology

- The proposal should describe a commodity chain from the researcher- producer and to the market including major rice markets today and their differentiation, price premium obtained with IPM rice, linkages to certification schemes; the extension service could facilitate the commodity chain approach and link different stakeholders

- Other technologies in addition to FFS should be considered (web-site, help phone line, CDs, etc.), the team was provided the contact of Prof. Liu in Yangling who has a similar project

- Farmers are diversifying into higher value crops (oil seed rape; vegetables, cotton), IPM for these crops should be considered also.

B. Problems and suggestions proposed by provincial project officials

35 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

(1) The project prospect is good.

(2) Farmers are the main body of the project, the training mechanism should be perfected to enable most farmers to master the IPM technique.

(3) If this public benefit project can be combined with industrialization, it will bring along the economic development of the affected area.

C. Problems and suggestions proposed by project company

The company is the main body of processing and needs to improve its processing equipment for standard production. The company is a participant of the project, whose interest should be protected by the government.

D. Problems and suggestions proposed by farmers

(1) It is expected to conduct technical training and guidance in a variety of forms, such as training course, billboard and library.

(2) It is expected to purchase mechanized farming equipment with the World Bank’s loan, such as plowing and harvesting machinery.

(3) The project is expected to further perfect the local infrastructure construction, such as mechanized farming road, irrigation facilities.

XIV. She County Organic Tea Production Technique

Demonstration & Popularization Project

1. Affected Farmers and Project

The project’s demonstration zone is scattered in Sanyan, Zhupu, Jinchuan, Daguyun, Shendu and Hengwei towns under She County, governing 68 administrative villages, 21709 farmer families, 67,400 people. The project’s main radiation area includes: all 35 tea-yielding towns in the county except the Tangli and Hengtian demonstration zones, with a tea garden area of 224,000mu, governing 366 administrative villages, 1132279 farmer families, 433,000 people. This project’s benefited group is mainly tea growers, including poor people with annual per capita income of less than 1000yuan and women. The project will first provide employment opportunities to women and the poor.

At Sanyan Township, a point of investigation, the SA Team learns that, most young adult laborers are working outside, women undertake most housework, tea production and child education. In recent years, although the market condition of tea is not ideal, tea growers have been frustrated in plantation, yet tea planting is suitable for women and the disabled, with a low investment. Accordingly, tealeaf planting still plays a vital role in the family economy. Generally, 40% of the household income relies on tea planting. Since it began to produce nuisance-free tealeaf, the project company has enacted a strict fresh tealeaf purchase quality standard and tea growers then began to pay attention to the production technique of nuisance

36 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment free tealeaf. However, many tea growers reflect the exiting techniques are insufficient and are very eager for long-term technical training and guidance.

Farmers think the project risk is mainly natural disaster, but this risk can be minimized by insurance and setting project risk fund.

Attached: Case of Investigation

Ye Xianghua, female, 33 years, graduate from junior high school, at Chongshan Village. Her husband is working outside, earning 4000yuan last year. Her children’s educational expenses are 4000yuan annually. Her family has 7mu discontinuous hilly land, including 3mu tea tree and 2mu chrysanthemum, the remaining land is growing hickory and gingko. By now, only tealeaf and chrysanthemum have made a profit (2000yuan and 1500yuan respectively in last year).

“Living on the hill, I would spend 4 hours on the road to and from the market. I have not signed a contract with the company, so I can only waiting for buyers on the street. If no deal is made, I must carry the tealeaf back. Accordingly, peddlers often bully me by forcing price down. Seeing others contracting with Lian Company, I’m very eager to contract with the company next year. After that, I hope to get technical training, because the company imposes high requirements and my planting method is not acceptable.”

Ye is very strong-minded. Since she lives on the hill, the inconvenient traffic has restricted the growth of family economy directly. She wrote to provincial leaders last year, appealing the government to build roads for hill dwellers. She now wants to open up wasteland to plant tea, on the hill there are above 100mu lands laid idle by other villagers. For this project, she hopes to 1) open up wasteland to plant tea, 2) build roads, 3) technical training, 4) introduce fine varieties, and 5) the company is also expected to purchase chrysanthemum.

The interview of technician Qian XX at the agro-tech station of this township made by the SA Team shows that grassroots technicians in the affected area lack the chance of knowledge updating and activity funds.

Qian XX, female, 31 years, graduate of technical secondary school on diversified operation in 1992. She has been acting as a technician at the Sanyan agro-tech station. Her husband is 36 years, working at the Jinchuan Township Government. Her daughter, 8 years, is studying at primary school.

Farmers have given favorable comments to the farm machinery station in these years. Once farmers hear that someone is coming from the farm machinery station, they’re very happy. There are 5 technicians in the township that give training on diseases and insect pests for paddy rice, management skills of oil crops, tealeaf production, etc.

The station has also thought of variety improve but have no fund for it. When tealeaf gets improved, it will stagger the marketing season.

37 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

Qian welcomes the “company + farmer” pattern but has 2 worries, 1) worry that fresh tealeaf produced by tea growers cannot reach the company’s standard, if the company rejects, there will be a dispute; 2) worry that scatted planting and primary processing can hardly ensure the quality of tealeaf.

Qian also proposes that, the price of organic tea recovered by the company should be fixed reasonably, so that tea growers will be enthusiastic for the project and technical training. She also expects the project can use some funds on the training of township-level technicians, because their knowledge is also aging, otherwise they can hardly play the bridging role.

2. Problems in Project Design/Execution and Suggestions

A. Problems and suggestions proposed by the World Bank Mission

It is suggested to join this project and provide preliminary materials for examination.

B. Problems and suggestions proposed by provincial project officials

(1) The growth of organic tea is inevitable, so this project has a good market prospect;

(2) The project execution has superior geographical conditions and cultural environment;

(3) The company has certain strength, has established an initial marketing network and the company’s management has a strong sense of market and its foundation of cooperation with farmers is good, however, the company still needs to enlarge its scale.

C. Problems and suggestions proposed by project company

(1) The greatest difficulty is fund shortage. Now organic tea is undersupplied, the company has an urgent need to enlarge its scale and raise more funds. The project is expected to be executed as soon as possible to give financial aids to the company timely.

(2) It will take time to disseminate the techniques from the top down and transit from the traditional tealeaf planting to organic tealeaf planting. It is expected that the technical popularization be supported, coordinated by the governmental agricultural development department, such as arranging grassroots agro-technicians to receive training and take part in training, this will save manpower and precious time for the company, shorten the technical conversion process and quicken the project progress.

D. Problems and suggestions proposed by farmers

Farmers think the “company + farmer” pattern in the project design is very good, because they don’t have to worry about the marketing of tealeaf. They also propose that:

(1) The tea tree planting is still staying at the artificial stage and takes long labor time. They hope to use a part of the World Bank’s fund to purchase machinery for farmers, such as tea tree pruning equipment, etc.

38 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

(2) The company is expected to set up purchasing points at remote mountainous areas to facilitate farmers’ delivery and sales of tealeaf, but the price must be the same as the purchase price elsewhere.

(3) The company is expected to give priority to women when recruiting seasonal workers or contractual workers after expanding the deep processing.

(4) Presently, the technical training provided by the company to farmers is conducted at the company, it is expected to hold technical training at the village and field after the start of the project.

(5) The government shall publicize the project and supervise the company’s execution, preferably farmer representatives can take part in the supervision.

Chapter 3 Opinions and Suggestions of the SA Team

I. Guangde Quality Nuisance-free Chicken Breeding Demonstration Project

1. This project has got a certain foundation locally, the company’s goodwill is high in its past cooperation with farmers; the company is financially strong and has very good corporate culture and training mechanism. For example, the company dedicates about 70-80 million yuan funds to the management training every year. These have reduced the project’s risks to some extent.

2. A noticeable thing of this project is, the company plans to try best to arrange extremely poor farmers without the condition to raise meat chicken individually to its factory for work other than excluding them from the project. This method has avoided the risks of both parties and solved the income increase problem for some poor families.

Through careful investigation, the SA Team thinks the following points of this project need attention:

1. The project should account clearly for the funds required by the World Bank to be used directly on farmers.

On the forum, the company’s chief proposed gathering farmers for a breeding plan. The SA Team thinks it advisable to consider decentralized breeding, which is good to the prevention and cure of fowl pest and accords with the local characteristic of scattered distribution of villagers.

2. The company’s plan to help farmers set up chicken farms should be further defined, e.g., full or partial funding, or provision of a discount interest loan. The company may also consider helping affected farmers improve traffic, power infrastructure to promote the successful execution of the project and farmers’ active participation.

39 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

3. The company may consider extending a loan or providing a loan guarantee to farmers already with a certain scale of breeding to help them enlarge the scale and bring along other farmers.

II. Mengcheng Quality Yellow Cattle Resource Utilization Technological Demonstration Project

1. Mengcheng County has a long tradition of cattle raising and has got a certain industrial scale. This project will further drive the development of local farmers. The company also plans to set up a feeding ground for intensive production, which is beneficial to the development of local breeders and local stockbreeding. 2. The project company is very strong and has done much effectively in brand and product deep processing. The company may also avoid certain market risks through the product deep processing. In addition, the insurance fund to be set up under the project can also effectively reduce the breeding risk of the company and farmers. The SA Team thinks the following points need to be specially mentioned: 1 Since project experts thinks it very necessary to set up a feed factory, the company may consider investing in the feed center with the counterpart fund; 2 In the budget, the amount of fund to set up the feed center is great (405 million yuan). If it is hardly affordable for the enterprise, a part thereof to be invested in farmers can be used to construct the feed center, which may be converted into shares of farmers. The specific measures are to be negotiated with farmers, the company shall set out a specific operating mode in advance for the consideration of the World Bank; 3 Since the fund for construction of the fattening center has been included in the fund to be invested in farmers, the property right and operating mode of the center should be further clarified. The SA Team suggests considering such a mode: the administrative village where the fattening center is located holds shares by land, farmers use the center free of charge during the project period and pay a certain sum of management fee after the period. The specific operating mode may be negotiated by the company, farmers and the government to ensure farmers’ interests. When farmers are using the center, their equal benefit should also be considered.

III. Dangtu Quality Nuisance-free Lean Pork Pig Technological Demonstration Project

The SA Team thinks this project is highly feasible, its advantages include: 1. The affected area has a long history and foundation of stockbreeding, and the public are highly active for stockbreeding; the project undertaker has solid financial strength and technical forces, and has set up a modern 10,000-piglet breeding ground and a modern 10,000-commodity-pig breeding ground; 2. The area neighbors on center cities such as Nanjing, Shanghai, for convenient sales;

40 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

3. The company exercises purchase at the protective price, guaranteeing peasants’ income radically; 4. The project company has several years’ experience in the “company + farmer” pattern and has maintained good trust with farmers. Since the company has shown that its profit comes mainly from deep processing, this will guarantee peasants’ breeding profit to some extent. 5. The project company itself can absorb a large amount of pork and has established a lot of points of sales. When the project is formally commissioned, the company will run the breeding ground as an independent joint-stock company, which will be held by the head office, keep separate accounts, sell shares to breeders and farmers, let breeders take part in the company’s management and supervise its operations. This will further guarantee farmers’ long-run interests and really realize the effect of farmer driving and interest sharing.

In sum, the SA Team thinks the following points need attention:

1. The SA Team has noticed the traffic of some affected villages is very inconvenient, the company may consider purchasing farmers’ products door-to-door in a centralized way to reduce the high costs in farmers’ individual transport.

2. The plan to help farmers build pigsty and methane tank shall be further defined, which includes the use of fund and selection of farmers. In operation, formulate a written plan as how to fully care poor families and women and inform this plan to affected farmers.

IV. Huaibei Meat Duck SM3 Fine Breed Popularization Project

The SA Team thinks the points to be affirmed in this project are:

1. The project has a certain technical advantage, the meat duck variety popularized is fine and welcome by duck breeders.

2. The company has a good cooperative history with farmers and established a good faith therewith. The company’ technicians have cooperated with farmers for many years and their skills have been recognized by farmers. The company is technically backed by the Anhui Agricultural University to enhance its technical forces.

3. At the affected area, owing to long-standing coal mining, the ground surface collapses seriously and farmers’ tilled land reduces sharply, there is the urgent need to develop new means of livelihood and execute industrial restructuring. It is an effectively way of livelihood to deal with waterborne planting and breeding using such collapsed ground surfaces. Duck raising is a good idea explored by local people over years. This project’s execution will address the local need.

4. Since surplus and semi-surplus laborers without working outside or doing business are mostly women, this project’s execution will effectively settle the employment problem of some idle women laborers and help improve their economic and social status.

41 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

The SA Team suggests:

1. Since the natural villages in the affected area are far away each other, the company shall consider setting up medical service stations or technical guidance centers in the unit of natural village for the convenience of farmers.

2. Many duck raisers want to enlarge the scale but are short of fund, the company should consider supporting such farmers, including subsidy, discount interest or low interest loan, loan guarantee, etc.

3. The company should be focused on market development during the project execution.

V. Shou County Meat Goose Fine Breed Cultivation Popularization Project

Remarks: In the last project investigation, the World Bank Mission thought there was the problem of unclear marketing prospect with this project, so this project is not included in this social assessment. However, in discussion with officials of the Anhui Provincial Project Office, the SA Team found that they thought this project is a project worth recommendation unanimously and required earnestly to bring it into this social assessment. On this basis, the SA Team has implemented an unscheduled investigation on this project with allowance of time. The information and suggestions given hereunder are for reference only.

1. Shou County is a state-level poor county situated in the Huaihe River flood prone area, it is worth support to local farmers with the project.

2. Local farmers have the tradition of goose raising and have gained certain experiences, formed a certain marketing network. Accordingly, this project has a certain foundation. Objectively, it is feasible to execute a goose project in the “company + farmer” pattern. From the information collected by the Team, goose raising is the most effectively way of poverty relief and enrichment currently available to the local public. Accordingly, the designed project will have good economic and social benefits.

3. On the company’s forum, the local government’s representative expressed his earnest expectation for the project and promised that if the project was approved, they would take practical measures to facilitate its successful execution. Such assistance of the local government will be an important supporting factor to the project.

4. The company is just started and doesn’t have a stable marketing network, but a detailed market analysis and development draft submitted by the company is noticeable (see Attachment 3.5: “Analysis of Development Prospect and Construction of Marketing and Service System for Goose Raising” for details)

VI. Yeji Test Area Goat Industry Technological

42 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

Demonstration Project

1. The Yeji test area has a total area of 320km2, including hilly area of 286km2, accounting for 89.4% of the total area. Such natural conditions are suitable for grass planting and sheep raising.

2. Grass planting and sheep raising can both increase farmers’ income and protect the eco- environment to achieve favorable economic and ecological benefits.

3. The project leading team involves farmers, which is an institutional innovation. This practice can protect farmers’ interests.

4. The unique pattern of “repayment of sheep loan with sheep, rolling development” used in this project is noticeable, which can effectively solve the problem of poor people’s absence of means of production and enlarge the range of farmers financed.

5. It is suggested to fund farmers to build sheep pens with the project fund in cash, in kind, by discount interest loan or loan guarantee, etc.

6. It is a trial in China to drive farmers to raise sheep under the association’s leadership. The specific operation shall be guided by the World Bank or relevant experts.

VII. Feixi Distinctive Nursery Stock Flower Technological Demonstration Base Construction Project

1. The cooperative mode of “association + farmer” is novel, for which there is deficient experience available at home and the guidance of experts, the supervision of the World Bank and government will be necessary.

2. There are many business corporation members in the association. The likely situation of operation by enterprises in place of the association shall be avoided. It is suggested that an independent intermediary monitor the fund operations of the project.

3. It is suggested to provide the compensated fund of the project to corporation members for operation, which can reduce individual members’ risks.

4. The article on purchase at the protective price should be embodied in the contract between the association and farmers.

5. To encourage women’s participation and protect their interests, there should be certain managerial positions in the association assumed by women.

VIII. Bengbu Suburb Quality Paddy & Wheat New Variety

43 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

Development and Popularization Project

1. The project’s initial publicity, mobilization and organization work has been completed sufficiently, farmers are active for participation in the project, the relationship between the company and farmers is close and the channel of communication is smooth, which is good to the project’s successful execution.

2. The project’s training design should be further itemized, such as determining the mode of technical training, attendees and number of attendees, location, expenses, etc.

3. To improve the local production conditions and reduce farmers’ risk of exposure to inland inundation and other natural disasters, the product should allocate funds for the construction of water conservancy and flood drainage facilities in the affected area.

IX. Chizhou Nuisance-free Sweet Potato & Beans Industrialization Project

1. The planting of sweet potato and vegetables meet the local industrial traditional, natural and ecological conditions, also the agricultural industrialization policy enacted by the local government. Accordingly, the project has good social and natural environments.

2. The distribution of sweet potato and bean products processed by the company mostly rely on overseas orders. The SA Team worries that, once such orders are lost due to the green barrier or any other cause, both the company and farmers will suffer from losses. The SA Team thereupon suggests that the company actively develop the local market while improving its product quality to diversify its market outlets and reduce its risks.

3. The company needs improvement in production equipment and production management. The SA Team has seen that the company is dealing with this aspect, the result of which is yet to be observed.

4. The project plans to employ the operating pattern of “company + cooperative + farmer”, in which the credit cooperative is equivalent to an intermediary entity distinguished from the association. From the initial operation, this pattern has gained certain effects, its future effect shall be followed up and monitored.

X. Dangshan Pear Green Food Standard Production & Air- conditioning Preservation Technique Demonstration Project

1. Dangshan pear is a distinctive local industry and the project well fits the practical local conditions. The variety improvement plan is good to the quality improvement of pear.

44 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

The staggering of the market launch seasons of pear is good to increasing pear planters’ income.

2. The company has been renowned for its marketing advantage. The powerful capability of market development will help reduce the project’s market risks.

3. The fruit industry (mostly pear) is a main source of revenue of the local government. Accordingly, the government’s high support to the project will facilitate the project’s execution.

4. The key to the project’s success is the building of air-conditioned preservation houses, it is suggested to divert sufficient funds for such construction.

XI. Feixi Nuisance-free Peanut Production Technique Demonstration & Popularization Project

1. The company has implemented the “company + farmer” pattern, obtaining good echo from local farmers. By this means, the company has built up an image of good faith among farmers, which will facilitate the project’s execution.

2. Considering the importance of pest control in peanut planting, the SA Team suggests the company first conduct a trial planting before popularizing the new variety.

3. The projects plans to build a factory producing environment-friendly fast food boxes with peanut shell. The SA Team supports this plan with ecological benefits and suggests that after this factory is completed, the project shall mainly absorb farmers, especially poor people and women, in the affected area into the factory for work.

XII. Maoji Farmer-centered Sustainable Agro-tech System Construction, Demonstration & Popularization Project

1. The project deals with the integrated application of agro-tech in an area. The technique popularized by the project meets the rural actuality and is very practical, will produce good economic and social benefits.

2. The SA Team has noticed that the project’s publicity and mobilization work is deficient and suggests the government fully respect farmers’ right to learn about the project by conducting extensive publicity via notice, broadcast, TV, meeting, communicating with farmers, fully involving farmers in project design, execution, control and supervision.

3. A peculiarity of this project is that the government presides the project’s operation, such government act needs powerful supervision to ensure the project’s actual execution and fulfillment. The SA Team thereby suggests that the World Bank arrange an independent

45 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

body apart from the provincial project managerial department for regular and irregular project monitoring and reporting to the World Bank.

4. The technical training under the project should minimize intermediate links to avoid the technique from missing in the level-by-level transfer from the top down. For example, it may be considered to have experts train town-level technicians, who shall in turn train villagers directly. When necessary, experts may face farmers directly for guidance and training.

5. In a concern for each interest group’s requirement for its own interests, the SA Team suggests the project executive unit shall ensure the legitimate interests of the technical support unit, technical experts and farmers.

XIII. Nanling Farmer-centered IPM Technique Demonstration & Popularization Project

1. The popularization of the IPM technique in the affected area meets the local conditions and has extensive market prospect.

2. At present, the affected area is still in inadequate in agro-technical training, such as on paddy rice planting technique, this project’s execution will just make up for this defect.

3. In sum, the SA Team thinks the company plays a limited role in this project only, the execution of which is mainly executed by the government. This is quite similar to Maoji District’s farmer centered sustainable agro-tech system construction, popularization & demonstration project. In the same consideration, the SA Team thinks such government act should be strongly supervised to ensure the project’s real execution and fulfillment. The SA Team thereby suggests the World Bank arrange an independent body apart from the provincial project managerial department for regular and irregular monitoring and reporting to the World Bank.

4. The project’s training program is generic, it’s suggested to itemize the program, such as defining the mode, location, trainer, organizer, number of trainees, fund of each training. To fully involve farmers, the detailed training program and budget should be released at each administrative village and farmers’ feedback listened to.

5. According to the available fund arrangement, the budget for technical training is less, it is suggested to supplement the budget in this regard.

6. It is suggested to set up an evaluation, reward and punishment mechanism on technician training performance to mobilize their activity. Such mechanism should fully involve farmers. The training performance rating of technicians shall be based on the evaluation made by trained farmers.

46 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

XIV. She County Organic Tea Production Technique Demonstration & Popularization Project

1. The affected area has the tradition and advantage of tealeaf planting and the project also complies with the local government’s industrial planning and has been greatly supported by the government. All these will facilitate the project’s execution.

2. At present, the company takes on the mode of centralized training of tea growers. It is suggested that after the commencement of the project, the diversification of training be realized. Except centralized training, such forms as village guidance, broadcast guidance, billboard, movie study, etc may be considered. In addition, the training program should be itemized to define specific contests in each aspect.

3. This project plans to utilize technicians at different town agro-tech stations for technical training, who are mostly faced with the problem of knowledge aging. If they cannot get effective training, they can hardly play the bridging role in the project. The SA Team thereby suggests that the project budget appropriate proper funds to support their study of relevant courses to improve their integrated qualifications and skill level.

4. It is to make provisions for the specific use of the project risk fund. For example, when tea growers meet with a force majeure or the company meets with any profit loss due to sale resistance, etc, how to calculate the interest loss and settle the claim.

47 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

Annexes

Annex I: Attached Table

Attached Table 1: Introduction to Projects in Anhui I Project Executive Information of Executive Project Construction goal Organization Organization demonstration district The Project of Huaibei Registered in October 1998 28 administrative 1, duck breeding poultry Meat-duck LuYuan and located in an area of 20 villages in Duji farms, one hatchery, 1000 Excellent Poultry Co., hectares, possesses assets of District peasant households Variety—SM3 Ltd. 12,000,000 yuan, 28 involved, 20 poultry Popularization, technician staff. Two duck Hospitals, the Quality and Huaibei City breeding poultry farms, a Safety Supervision Center feed factory, one hatchery, one ducking processing factory, Science and The Established in 1999, 62 16 villages in High-efficiency agriculture Technique Association professional teams as Shangpai Town, and income-increasing Demonstration of of Shangpai member and 2678 Feixi County Nursery Stock and Township individual members. Flower with Nursery Stock Special Character, and Flower of Feixi County Feixi County Scientific and The Goat Founded in 2000, 489 3 towns in Yeji 1.300 thousand goats will be Technological Raising members among which 428 produced yearly. Demonstration Association engage in goat raising, 55 2.Increase the farmers’ and of Yeji Town in goat selling and 6 in goat earnings, provide 5000 jobs Industrialization product processing. for countryside women. Development of 3.Help 700 poor households Meat-goat in Yeji increase income. 4. The goat Town production value would amount to 5.4 million yuan. High-quality Anhui Hewei Funded in 1992, engaged Qiu village and Develop high quality Broiler Chicken Agricultural mainly in chicken raising, Liudong town, chicken industry, Raising Development fodder production and good Baidian Town 2000peasent households Demonstration in Ltd. chickens breeding, total involved, Guangde assets 102 million Yuan, Dangtu County Maanshan Found in 1984, total 8towns including Create job opportunities for Science and Huangchi asset45.48 millions, Huangchi, Tingtou, farmers, develop their Technology Food Limited 600stuff Wuxi, Maqiao etc. raising skills, develop Demonstrating Company district farming production Project value For Green High Quality Lean-type Pigs Production Sic–tech. Wuzhou Food Funded in 1996 with 218 administrative Demonstration of Co. Ltd. registration fund of 1.14 villages in 8 towns Native High-bred million yuan. Covers the Cattle Utilization area of 50,000 m2, with the in Mengcheng fixed assets of 28 million yuan and 860 staff (women 575). Breeding and Shouxian Registered capital 3 Jianshe, Guangyan Setting up a highly effective Popularization Shouzhou million, mainly engaged in and Wafang operational mechanism for Project of Table Breeding protection, selected townships, Banqiao, agricultural scientific and

48 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

Goose of Poultry Co. breeding, development, Yinghe, Baoyi, technological popularization. Improved Variety, Ltd utilization and Yangxian, Yinxian, Attract 5500farmer families Shouxian County popularization of the local Zhongxing, Anfeng, to participate, to accelerate high-quality poultry species Chaan, Sanjue, the development of table resources. Yanliu and Liugang goose raising and fodder Covers 600 mu. A farming towns. grass planting. of 500 mu, has raised10000 suits of productive geese of the Wanxi white goose multiplication strains. Science and Wanzhong Founded in 1999, with net Dongxiang Town, 1.Peanut base 5000mu, Technique Peanut Trade value of its capital 9.6 including sample non-polluted peanut Oriented Ltd Company million Yuan. Dongxiang, cultivation 15000 mu, Demonstration (HCWPTLC), Chengang, hutang, 2.enlarge the organization of and Extension of Hewei City Cishan, Hongxing, industrialization business, Non-polluted caichong, 3.more than 95% farmers in Peanut Industry in Qunguang, the involved district will Feixi County of Tonggang, carry out non-polluted Anhui Province Dazhong, Guantang peanut production. villages. Development and Anhui Luyu Founded in 2000, stock- 11administrative Increment and quality Extension of Elite Agricultural sharing and agricultural Hi- villages in development of crop yield. Rice and Wheat Co. Ltd tech type of enterprise with Wuxiaojie Town 400 Yuan income increment Variety in Bengbu (ALAC) the registered capital of 10 and Meiqiao per farmer household in the Suburb million Yuan and total asset Township project area and 160 of 25 million Yuan. Has farmer/farmer in the built up trust relationships dissemination area. Develop with both the tech- farmers’ scientific farming. supporting unit and farmers. Peasant Nanling Government of Nanling 30 administrative Construct IPM Technology Centered Rice Government, County, Anhui Academy of villages in Gelin, demonstration zone and IPM joint proposal Agricultural Sciences, Xitan, Gejiang, training system, help farmers Technological of Anhui Dongyuan co. Ltd. Donghe Towns. develop their IPM skills, demonstration/ext Academy of develop the quality of rice, ension Agricultural increase farmers’ income Sciences, Dongyuan Co. Ltd. Non-polluted Chizhou Funded in 1970 the private Dengshang, Wuxi, develop a standardization Sweet Potato and Jiuhua Frozen share occupies 70%. Maya and Niutousan demonstration base Beans Food Ltd adjusted product etc 20 townships 20,000mu. Increase output Industrialization Company of construction to frozen value. Farmers get technical in Chizhou Anhui vegetable and beverage training 50,000 person*time, Province from meat and egg and ‘green certificate’ rate of processing in 1980s. sweat farmer reach to 70%. potato export for 12 years. Increase farmers’ income. The Project of Anhui Composed of Wang 22 administrative Fresh-keeping pear will Dangshan Pear Dangshan Zengguang and Dong villages increase by 9.5 million kg. Green-food Pear Capital Xuecheng with stock *Green food pear will Standardizing Ltd Company 52%and 48% respectively. increase by 75 million kg. Production and of Fruit Total registered capital *Gross income will increase Air Adjusted Production 25,000,000 Yuan. by 45 million Yuan. Fresh-keeping Mainly deal in fruit *Net income and tax will Technique marketing, variety increase by 3 million Yuan. Extension improvement of Dangshan *Farmer’ s income will go pear, and good quality pear up from 1,960 person/person orchard (500 mu). Has built to 3,000 person/person. up trust relationship with *At least 1,000 low income both experts and farmers. families will get rich.

49 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

*The rate of farmer’s “green certificate” rises 20%. *Farmer’s labor intensity will lower down and their S & T level will go up. *Woman’s social class will be promoted in evidence. *Basic facilities of pear orchard and production conditions will be improved obviously. Establishment and Maoji Special MSD was established in Maoji Town, Establish technical system of Extension of District of Nov. 1999. It is the state Jiaogang Town, and sustainable agriculture, Farmer-centered Comprehensi “Management Center for 21 Xiaji Town set up the farmers centered Technical System ve Social Century Agenda of China” extension system of of Sustainable Development “Agency for Sustainable sustainable agriculture Agriculture in (hereinafter Development Trial District technique, create the model Maoji District refers to of China”. “National of sustainable agriculture MSD) Experimental Township of that is suitable to the agro- Construction” “National area along the Huai River. Small Township Reform Trial Town”, etc. Project the Shexian Lian Funded in 1994, mainly Sanyang Township, Organic tea base development of Tea Co. Ltd. marketing at northern cities. zhupu Township, construction, service system, organic Tea Jinchuan Township, processing machine Dagu Township, development Huangwei Tounship, Shendu Township

Attached Table 2: Introduction to Projects in Anhui II Project Executive Rate of Mode Associati Company Organization process on (associatio n)+ farmer experience The Project of Meat- Huaibei LuYuan Handed in Company No Since 1998 duck Excellent Variety- Poultry Co., Ltd. Feasibility +farmer ---SM3 Popularization Report undertaken by Huaibei LuYuan Poultry Co., Ltd. Science and Technique the Association of Handed in Company + Founded Since 1999 Demonstration of Shangpai Township Feasibility association in 1999 Nursery Stock and Nursery Stock and Report +peasant Flower with Special Flower of Feixi Character in Feixi County County Scientific and The Goat Raising Handed in Company + Founded Since 2000 Technological Association of Yeji Feasibility association in 2000 Demonstration and Town Report +peasant Industrialization Development of Meat- goat in Yeji Town High-quality Broiler Anhui Hewei Handed in Company No Since1980 Chicken Raising Agricultural Feasibility +farmer s Demonstration in Development Ltd. Report Guangde

50 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

Dangtu County Science Maanshan Huangchi Handed in Company No Since 1995 and Technology Food Limited Feasibility +farmer Demonstrating Project Company Report for Green High Quality Lean-type Pigs Production Sci–tech. Wuzhou Food Co. Handed in Company Cow Since 2000 Demonstration of Ltd. Feasibility +farmer Raising Native High-bred Report associatio Cattle Utilization in n Mengcheng Breeding and Shouxian Shouzhou Handed in Company + 2003, Since 2003 Popularization Project Breeding Poultry Co. Feasibility association Poultry of Table Goose of Ltd Report +peasant Raising Improved Variety, Associati Shouxian County on Science and Technique the Association of Handed in Company No Since 2001 Demonstration of Shangpai Township Feasibility +farmer Nursery Stock and Nursery Stock and Report Flower with Special Flower of Feixi Character in Feixi County County Development and Anhui Luyu Handed in Company No Since 2000 Extension of Elite Rice Agricultural Co. Feasibility +farmer and Wheat Variety in Ltd(ALAC) Report Bengbu Suburb Peasant-centered Rice Nanling Handed in Nanling No No IPM Technological Government, joint Feasibility Government+ demonstration/extensio proposal of Anhui Report Anhui n Academy of Academy of Agricultural Agricultural Sciences, Dongyuan Sciences+ Co. Ltd peasant Non-polluted Sweet Chizhou Jiuhua Handed in Company + 2002 Sell-buy Potato and Beans Frozen Food Ltd Feasibility association relationshi Industrialization in Company of Anhui Report +farmer p Chizhou Province The Project of Anhui Dangshan Handed in Company No Dangshan Pear Green- Pear Capital Ltd Feasibility +farmer Sell-buy food Standardizing Company of fruit Report relationshi Production and Air Production p Adjusted Fresh- keeping Technique Extension Establishment and Maoji Special Handed in Maoji Special No No Extension of Farmer- District of Feasibility District + centered Technical Comprehensive Report Anhui System of Sustainable Social Development Academy of Agriculture in Maoji (hereinafter refers to Agricultural District MSD), joint proposal Sciences of Anhui Academy +peasant of Agricultural Sciences Project of the Shexian Lian Tea Handed in Company No Since 2003 Development of Co. Ltd. Feasibility +farmer Organic Tea Report

Attached Table 3: Project Design in Anhui

51 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

Project Implementation plan total investment Expectation for the (million) company The Project of Meat- 1, the company will carry out unified 17.76 (including Will achieve duck Excellent management, unify to supply 8.00 World economic benefit of Variety--SM3 ducklings, feedstuffs, medicine, Bank loan) 2.835 million yuan, Popularization technical serve, buying back company will be undertaken by productions, and will strictly execute strengthened Huaibei LuYuan referring to quality operation manual Poultry Co., Ltd. and contract. 2, venture foundation 3, company will sign contract with farmers Science and 1.agricultural experts’ participation 26.30 (including 1association will be Technique 2. association work on strengthen 11.86 World more criterion. Demonstration of planting and selling, communicating Bank loan) 2. professional Nursery Stock and company and farmers teams as member, Flower with Special 3. help farmers in planting like Sanyang Character in Feixi company will be County benefited.

Scientific and 1. The association will supervise the 26.64 (including 1. The association Technological goat-raising way of the farmers 12.00 World will be strengthened Demonstration and 2, “goat lending & returning” Bank loan) 2. Sheep raising Industrialization 3. Absorbing the goat-raising farmers industry will Development of to engage in project management develop. Meat-goat in Yeji 4. Profit-sharing and risk-sharing 3. the association Town mechanism will gain farmers’ trust Breeding and The company will carry out unified 22.20 1, strengthen Popularization management, unify to supply geese, (including10.00 company and its Project of Table feedstuffs, medicine, technical serve, World Bank marketing ability Goose of Improved buying back productions, and will loan) Variety, Shouxian strictly execute referring to quality County operation manual and contract. High-quality Broiler the company will carry out unified 37.74 (including 1 enlarge company Chicken Raising management; unify to supply 17.00 World scale. Demonstration in chicken,feedstuffs, medicine, technical Bank loan) 2.indraught new Guangde serve, buying back productions, and technology will strictly execute referring to quality 3.help increase operation manual and contract. farmers’ income Dangtu County 1. the company will carry out 17.76 1.inlarge company Science and unified management; (including8.00 scale Technology 2. unify to supply piggy, feedstuffs, World Bank 2, develop pig Demonstrating medicine, technical serve, buying loan) industry Project back productions. 3.increasefarmers’in for Green High 3. Implement “benefit and risk come Quality Lean-type sharing mechanism”. Pigs Production 4. Help poor farmer households Sci–tech. 1. the company will carry out 24.42 (including After the project is Demonstration of unified management; unify to 11.00 World accomplished, Native High-bred supply feedstuffs, medicine, and Bank loan ) farmers can gain Cattle Utilization in technical serve, buying back income of 64 Mengcheng productions. Implement “benefit million yuan and and risk sharing mechanism”. profit of 10 million 2. sign contracts with farmers yuan every year. A large-scale farm can make a profit of 9400 yuan, and a small raiser can make a profit of 530

52 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

yuan. Science and (1) 5000 mu demonstration bases of 15.88(including 2.enlarge the Technique Oriented good-quality peanut 7.16 World organization of Demonstration and multiplication; Bank loan) industrialization Extension of Non- (2) 15000 mu demonstration bases of business, polluted Peanut non-polluted peanut production; 3.more than 95% Industry in Feixi (3) 100 mu production base under the farmers in the County of Anhui protected land; involved district Province (4) The annual production of will carry out non- convenient food box, made from polluted peanut peanut shell(1500m2) production. (5) Establishment of service system and (6) The center of agro-technical extension, training and quality examination. Development and 1. agricultural experts participate in 26.64(including 1.the loan will Extension of Elite project design, training, and product 12.00 World strengthen the Rice and Wheat exploitation Bank loan) company, accelerate Variety in Bengbu 2. The company signs contracts of its growth. Suburb ordering agricultural production with 2 strengthen its farmers, ensure their profit and offer scientific research help to poorest households. ability and training 3.farmers cultivate under the system. company’s direction 3 strengthen the company in resisting market risks Rice IPM 1. extent IPM technologies by holding 17.76 (including 1. Dongyuan Co. Technological various training. 8.00 World Ltd. Will benefit demonstration/exten 2.Anui Academy of Agricultural Bank loan) from rice processing sion Sciences is responsible for the training and marketing. design, direction. 3.The County Agricultural Technology Extension Center is responsible for carrying out farmer training. 4. Dongyuan Co. Ltd. is responsible for rice product marketing 5. the county government build up supervision and evaluation system Non-polluted Sweet 1. the company sign contracts with 26.64 (including 1.the loan will Potato and Beans Farmer production cooperation 12.00World strengthen the Industrialization in association (FPCA), established Bank loan) company, accelerate Chizhou an industrialization operating its growth. model 2 strengthen its 2. The company is responsible for scientific research technology training and direction. ability and training system. 3 strengthen the company in resisting market risks. 4. improve product quality. The Project of 1. Build up air adjusted storehouse 37.74 (including 1 Green Food Pear Dangshan Pear (CA) 17.00 World Production Base Green-food 2. 1,000 electronic air adjusted fresh- Bank loan) will assure the Standardizing keeping cellars product quality Production and Air 3. Construction Content and Scale of 2 air adjusted Adjusted Fresh- Green Food Pear Production Base storehouse (CA) and

53 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment keeping Technique 4. Fresh bailing mushroom produced fresh-keeping Extension by using waste pruned branches of cellars will assure Dangshan pear the product price Establishment and 1. To extension of 8 technologies. 17.76 (including Without a Extension of 2. To establish technical system of 8.00 World company’s Farmer-centered sustainable agriculture, and draw out Bank loan) participation Technical System of technical regulations of sustainable Sustainable agriculture and local regional Agriculture in Maoji standards with the support of hi-tech, District advanced and practical techniques. 3. To set up the farmers centered technique extension system. 4. To create the model of sustainable agriculture that is suitable to the agro- area along the Huai River. Project of the 1. To build up Organic Tea 26.64 1. The company will Development of demonstration. (including12.00 enter Organic Tea Organic Tea in 2. To annex small tea factory in World Bank field. Shexian order to strengthen the company loan) 2 The loan will 3. To carry out training courses, enable the company improve farmers planting skill, and to growth quickly. order their tea leaves.

Attached Table 4: Project Execution in Anhui Project Main organization Tech-unit and its Association Present function implementation High-quality Broiler Anhui Hewei Anhui Academy of No preparation; Chicken Raising Agricultural Agricultural sign contract Demonstration in Development Ltd. Sciences: Project with farmers Guangde Technique since 2000 supporting institution Dangtu County Science Maanshan Huangchi Anhui Academy of Local Plan to and Technology Food Limited Agricultural vegetable sign contract Demonstrating Project Company Sciences: Project association with farmers for Green High Quality Technique Lean-type Pigs supporting Production institution Sci–tech. Demonstration Wuzhou Food Co. Ltd. Anhui Academy of Local Work close of Native High-bred Agricultural vegetable with farmers Cattle Utilization in Sciences: Project association since 2000 Mengcheng Technique supporting institution The Project of Meat- Huaibei LuYuan Anhui Agriculture No Work with duck Excellent Poultry Co., Ltd. University: farmers since Variety—SM3 Technique 1998 Popularization supporting undertaken by Huaibei institution LuYuan Poultry Co., Ltd. Breeding and Shouxian Shouzhou Anhui Agriculture Poultry Work with Popularization Project Breeding Poultry Co. University: Raising farmers since of Table Goose of Ltd Technique association 2003 Improved Variety, supporting Shouxian County institution Scientific and The Goat Raising Anhui Academy of The Goat Work with

54 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

Technological Association of Yeji Agricultural Raising farmers since Demonstration and Town Sciences: Project Association 2000 Industrialization Technique of Yeji Development of Meat- supporting Town goat in Yeji Town institution Science and Technique the Association of Anhui Institute of Association Work with Demonstration of Shangpai Township Forestry Sciences of farmers since Nursery Stock and Nursery Stock and (AIFS), Project Shangpai 1999 Flower with Special Flower of Feixi Technique Nursery Character in Feixi County supporting Stock and County institution Flower of Feixi Science and Technique Hewei City Wanzhong Anhui Academy of No preparation; Oriented Demonstration Peanut Trade Ltd Agricultural has operate and Extension of Non- Company(HCWPTLC) Sciences: Project “company plus polluted Peanut Industry Technique household” in Feixi County of supporting Anhui Province institution Non-polluted Sweet Chizhou Jiuhua Frozen Anhui Academy of Farmer Project Potato and Beans Food Ltd Company of Agricultural production publicizing; Industrialization in Anhui Province Sciences: Project cooperation preparation; Chizhou Technique association supporting (FPCA) institution The Project of Anhui Dangshan Pear Anhui Academy of No Project Dangshan Pear Green- Capital Ltd Company Agricultural publicizing; food Standardizing of fruit Production Sciences: Project preparation; Production and Air Technique has operate Adjusted Fresh-keeping supporting “company plus Technique Extension institution household” Project of the Lian Tea Co. Ltd., Anhui Academy of No Preparation; Development of Shexian Agricultural Has operate Organic Tea in Shexian Sciences: Project “company plus Technique household” supporting institution Development and Anhui Luyu Rice Research No Project Extension of Elite Rice Agricultural Co. Ltd Institute of Anhui publicizing; and Wheat Variety in (ALAC) Academy of preparation; Bengbu Suburb Agriculture has operate Sciences, “company plus Agriculture household” Department of Anhui Agriculture University: Technique supporting institution Establishment and Maoji Special District Anhui Academy of No Project Extension of Farmer- of Comprehensive Agricultural preparation centered Technical Social Development Sciences: Project System of Sustainable (hereinafter refers to cooper ant unit Agriculture in Maoji MSD), joint proposal District of Anhui Academy of Agricultural Sciences Rice IPM Technological Nanling Government, Anhui Academy of No Project demonstration/extension joint proposal of Anhui Agricultural preparation in Nanling Academy of Sciences: Project Agricultural Sciences, cooper ant unit Dongyuan Co. Ltd

55 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

Annex II: Map Indication of Projects in Anhui See the Attachment

56 World Bank Financed China Agro-tech Project (Phase II), Anhui Social Assessment

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