PLANNING AND IMPLEMENTATION OF POULTRY PROJECTS IN DEVELOPING COUNTRIES
	B.S. Sathe
	World's Poultry Science Association (India Branch), Pune 411004, India

In the developing world, a rural poultry farmer is often engaged in mixed farming practices and poultry is an important source of income, employment and organic manure. The farming takes several diversified forms and productivity depends upon land, human resources and skills, infrastructure and capital. Social, economic and political situation also plays a significant role. All these factors need to be considered while planning sustainable rural poultry projects. Rural poultry projects in Africa (e.g. Nigeria) and Asia (e.g. Bangladesh, India) indicate that proper policy formulation and execution requires detailed sectoral reviews (including poultry) to identify priorities, options, size and locations of projects. Local and international market surveys to analyse potentials, trends and market forces and training of local persons to improve local national database and project management and monitoring skills are necessary. Analysis of rural poultry projects worldwide indicates the need for greater cooperation between local institutions, adequate input-output supplies and professional support services which could be initially provided by the Government and later by cooperatives, Non-Govt. Organizations (NGOs) or private sector on workable cost-recovery basis. Suitable training of beneficiaries to develop skills and entrepreneurships, involvement of economically backward people especially rural women, training of local trainers (subject matter specialists) and appropriate research to identify test and adopt practical, economically viable and environmental friendly technologies are other important needs. There is a need for greater financial support from International Development and Funding Organizations in developing local skills, institutional capabilities and infrastructure facilities. Small holder rural poultry farmers primarily need help in better breeding stocks, supplementary concentrate feed and health cover while large projects need both-output linkages and capital.

INTRODUCTION

In the developing economy, a rural farmer is often a small holder engaged in mixed and diversified farming practices. For him, poultry can be an important source of income and employment besides the fact that poultry provides a nourishing food and is an important source of organic manure. These farmers are often economically poor and lack resources, infrastructure, new skills and capital. Social, religious, economic and political situations of the country also play a significant role. All these factors need to be considered while planning and implementation of sustainable rural poultry projects.

POLICY FORMULATION

A pre-requisite to proper policy formulation and funding is a detailed sectorial review including trends and prices of inputs-outputs and market forces in national and international markets including those in neighbouring countries. This information is often lacking in developing countries. Experience shows that they often have a poor data base, lack local skills to collect, collate and review the data, frame the policy and implement it and monitor the project. International Development or Funding Agencies have to provide support to developing countries in above areas.

The FAO Expert Consultation on Strategies for Sustainable Animal Agriculture in Developing Countries (1990) has laid emphasis on sustainability and conservation of natural resources and environment while formulating and planning rural projects.

PREPARATION OF THE PROJECT

Experience gathered from rural poultry projects in developing countries has shown that following points need to be considered for preparation of the project.

1. Is the project technically feasible, financially viable, socially acceptable and ecologically sound?

2. What are the required inputs-outputs. Can the linkages with producers be established?

3. Is adequate data base including market forces available?

4. Can the proposed activity be continued and be economically self supporting on a long-term basis, without much dependence on outside inputs or intervention (e.g. raw material, manpower, capital etc.)?

5. Is it necessary to protect the local industry by levying duties, levies, taxes etc. on imported raw materials or finished products or providing incentives on exports?

6. Are local institutions capable to provide the required support in training, research and extension. If not, what support is required?

7. Does the project have possibilities of meeting more food supply with increasing human population?

8. Does the project generate human employment. If so, to what extent?

9. Is it desirable to have the project at a given location or is it more appropriate to bring the finished products from nearby area?

10. Is there any risk of over production and market glut?

11. Can the long term risks (e.g. economic, political, environmental etc.) associated with the project be identified and measures taken to prevent them?

12. Is crop-animal integration possible in the given project (e.g. poultry-paddy, duck-fish paddy etc.)?

IMPLEMENTATION OF PROJECTS

Many support services are required for rural poultry projects in developing countries.

1. FARMING SUPPORT

   These include inputs like supply of chicks, feed, health cover, management, training and outputs (e.g. marketing of poultry eggs, meat).

   Experience shows that initially many of these services have to be provided by Government Agencies. Eventually, they need to be replaced by self-supportive and paid services from cooperatives or private agencies in time bound manner. Amongst developing countries, mode of supply of inputs has been different (e.g. day old chicks or grown up pullets, local breed or improved breeds; supplementary concentrate or fully balanced feed; health cover through qualified veterinarians, para vets or farmers trained for the purpose). Experiences are varied. No generalization can be made.

2. FINANCIAL SUPPORT

   Adequate financial support is necessary to provide initial capital inputs (housing, equipment, birds, feed, health cover, insurance) to individual beneficiary. Many rural poultry projects in developing countries have been funded by the International organizations through the financial institutions. Experience shows that major problems are (a) non-identification of suitable beneficiaries (b) absence of training (c) delay in providing inputs including capital, (d) high cost of servicing the credit, (e) absence of close monitoring during implementation and (f) lack of evaluation of the projects. Scattered location of farmers in rural areas and absence of adequate network of rural branches of the bank results in high credit delivery cost. Recent experience in Bangladesh and India suggests that involvement of Non-Government Organizations (NGOs) or Self Help Groups (SHGs) could be a solution to this problem.

EVALUATION OF PROJECTS

Post evaluation studies conducted by Investment Centre of FAO (1989) (which includes Livestock projects) funded by various international agencies between 1970–1980 in developing countries (27 in Asia Project, 13 in European and Middle East, 19 in Africa and 16 in Latin America - Caribbean) have revealed seven problems. They were identified in 7 different categories. (Table 1). Results showed that major problems were related to (a) cost overruns (b) time overrun and Lower Economic Rate of Return (ERR) than what was projected during the appraisal (Tables 2 and 3). These results indicate the need to ensure better designing and proper implementation of the projects.

Table 1. Problems in project implementation

Source: FAO Investment Centre - Tech. Paper 6. (1989).

Table 2. Project performance indicators

Source : Fao Investment Centre Tech. Report 6 (1989).

Notes: (a) Expressed as percent of those projects for which data exist on each indicator.
(b) Includes 5 projects which were not IC prepared but which have been covered by study because of their close association with other IC projects (e.g. as repeaters of IC Projects).

A 1 = between preparation and appraisal
B1 = during implementation

Table 3. Problem incidence / severity ratings* by major problem category and sub-sector

Source : Fao Investment Centre.

* Average problem incidence / severity score per project.

In India, many banks have conducted expost evaluation studies of rural poultry projects. Studies of National Bank for Agriculture & Rural Development (NABARD) in Kerala, Madhya Pradesh and Maharashtra have indicated that the projects had a positive impact on generating rural income and employment. The deficiencies observed were lack of timely availability of inputs, frequent fluctuations in prices of feed, eggs birds and inadequate disease diagnostic and marketing facilities. A need for greater coordination amongst implementing agencies was also indicated (Table 4).

Table 4. Ex-post evaluation of poultry schemes in India by NABARD

COUNTRY EXPERIENCE

AFRICA

In most of Africa, poultry is a small scale rural sector facing the earlier mentioned problems of planning and execution of projects. Intensive production has suffered mostly due to technical, institutional and economic problems. Poor technology, training and management have hampered growth of intensive poultry sector.

In Nigeria, in 1963–64, almost 100% poultry was in small backyard units having poor productivity. The Government policies like over- valuation of local currency, subsidized importation of parent stocks and feed, prohibition on importation of eggs and poultry meat, availability of credit at lower interest etc. helped a few larger poultry units, but seriously hampered overall growth at national level. It discouraged local producers of maize and other feed ingredients. Due to overall inflation, large size poultry projects needed more foreign exchange which was scarce. The present situation suggests that for small rural poultry sector, the priorities are supply of improved birds, disease prevention (specially Newcastle disease) and supplementing scavenging feeding with home grown feeds. Larger units need to consider vertical integration with better supply of inputs and market support for outputs.

BANGLADESH

In Bangladesh, poultry production is mostly with small rural poultry households. Due to scarce foreign exchange resource and poor availability of locally produced feed ingredients, large scale poultry growth is difficult. The policy thrust is mainly to develop rural poultry sector through supply of birds with improved productivity, vaccination through village vaccinators, supplementing scavenging through some concentrate feed, training of village extension workers, cheaper credit through local rural bank and involvement of NGOs and SHGs particularly for women beneficiaries. Although this has helped rural poultry growth, whether the policy will meet national needs of egg / poultry meat for the growing human population remains to be critically examined.

INDIA

Policy adopted for poultry development by India has comparatively helped to achieve sustained high poultry growth in last 2–3 decades, mainly under the semi-intensive and intensive systems. However, problems like high feed costs, disease mortality, lack of development of rural markets and seasonal fluctuations in egg and meat prices continue to hamper the growth.

Since the small farmer lacks the knowledge and skill in brooding of young chicks, a new scheme comprising a “Central Mother Unit” to provide grown-up pullets, poultry feed, health cover and market support, and “Satellite Small Farmer Units” to produce eggs has been implemented with some success.

The IFAD assisted Tamil Nadu Women Development Project in South India has indicated that SHG and NGO linked programmes are particularly helpful for small holder rural women. More indepth studies are required to assess the impact.

REFERENCES

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FAO (1989) The design of Agricultural Investment Projects Publ. FAO Investment Center, Technical Paper No. 6, FAO Rome.

FAO (1993) Strategies for sustainable agriculture in developing countries. Publ. FAO Animal Production and Health Paper No. 107, FAO Rome.

NABARD (1990) Broiler Poultry Development in Ernakulam District of Kerala, Expost evaluation study. NABARD Tiruvananthpuram R.O.

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