Document of The World Bank FOR OFFICIAI. USE ONLY Report No. 82'5 PROJECT COMPLETION REPORT KOREA FOURTH AGRICULTURAL CREDIT PROJECT (LOAN 2549-KO) DECEMBER 22, 1989 Agriculture Operations Division Country Department II Asia Regional Office This document has a restricted distibution and may be used by recipients only in the performance of their offlcial duties. Its contents may not otherwise be disclosed without World Bank authorization. EXCHANGE RATE US$1.00 - Won 800 (Appraisal Report) US$1.00 Won 792 (Average Exchange Rate) FISCAL YEAR January 1 - December 31 ABBREVIATIONS BOK - Bank of Korea CO - Country Office of NACF FLO - Foreign Loan Office of NACF LAO - Loan Appraisal Officer of CO MAFF - Ministry of Agriculture, Forestry and Fisheries MOF - Ministry of Finance NACF - National Agricultural Cooperative Federation NLCF - National Livestock Cooperative Federation OED - Operations Evaluation Department OCE - Office of Construction and Engineering PC - Primary Cooperative PCO - Participating country offices of NACF PCR - Project Completion Report PIP - Project Implementation Plan SC - Special Cooperative TU - Technical Unit of NACF THE WORLD BANK FOR OmCAL USE ONLY Washington. D.C. 20433 U.S.A. oft* ci 0mwGswraJ December 22, 1989 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECTt Project Completion Report on Korea Fourth Agricultural Credit Proiect (Loan 2549-K0) Attached, for information, is a copy of a report entitled 'Prcject Completion Report on Korea - Fourth Agricultural Credit Project (Loan 2549- KO)3 prepared by the Technical Unit of Korea's National Agricultural Cooperative Federation (NACF). No audit of this project has been made by the Operations Evaluation Department at this time. Attacbment This document ha a nstrcted distdbution and may be wud by rcipients only in the peffonance of their oMcial duties. Its contonts may not otherwise be dislosed without World Bank authorization. KOREA FOR OFFICIAL USE ONLY FOURTH AGRICULTURAL CREDIT PROJECT (LOAN 2549-KO) PROJECT COMPLETION REPORT TABLE OF CONTENTS Paze No. I. PREFACE .......... ...................... i II. BASIC DATA SHEET ................................... ii III. EVALUATION SUMMARY ................................. iv IV. PROJECT COMPLETION REPORT PREPARED BY NACF I. Introduction ............... ...................... 6 II. The Project ... .................... ............. 6 A. Contents of the Loan ........................ 6 B. Project Objectives . ............... .......... 7 C. Project Description ......................... 8 III. Project Implementation ... ....................... 12 A. Implementation Organization ................ . 12 B. Implementation Procedure ................... . 15 C. Implementation Guideline ........... ......... 20 D. Training and Education Activities ........... 22 E. Project Monitoring .............. ............ 23 F. Project Performance ........... .............. 26 IV. Projects Results and Evaluation ......... ........ 26 A. Information collecting system ............... 36 B. Project Investment ....... ................... 39 C. Actual Project effect ....................... 42 D. Financial and Economic Analysis ....... ...... 46 V. The performance of the parties concerned ........ 48 A. NACF . ........... 48 B. The government of Korea ..................... 49 C. The World Bank ................ . . 51 VI. Loan Recovery ... . .............. 53 VII. Overall Assessment .......... .................... 55 VIII. Lessons learnt ................. . .............. 57 IX. Annex ...................... #................... ... 59 Attachment 1: National Agricultural Cooperative Federation Comments .. .................... 159 Map: IBRD 12351R4 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. PROJECT COMPLETION REPORT KOREA FOURTH AGRICULTURAL CREDIT PROJECT (LOAN 2549-K0) PREFACE This is the Project Completion Report (PCR) of the Fourth Agricultural Credit Project ln Korea, for which Loan 2549-KO in the amount of US$25 mlllion equivalent was approved On June 25, 1985. The loan was fully disbursed on February 19, 1988 and closed on February 19, 1988, one year ahead of schedule. The PCR was prepared by the Technical Unit of Korea's National Agricultural Cooperative Federation (NACF), while the Asia Regional staff prepared the Evaluation Summary. This 'PM was read by the Operations Evaluation Department (OED). The draft PCR was sent to the Borrower for coments and they are attached to the Report (Attachbent 1). - ii - PROJECT COMPLETION REPORT KOREA: FOURTH AGRICULTURAL CREDIT PROJECT (LN. 2549-RO) BASIC DATA SHEET KEY PROJECT DATA Actual as 2 Appraisal Actual or of Appraised Estimates Est. Actual Estimate Total Project Cost US $ Million 55.5 73.1 132 Total Project Cost Won Million 44,400 57,734 130 Loan Amount $ Million 25.0 25.0 100 Date Physical Components are Completed Dec. 31,1988 Dec. 31,1987 100 Proportion Completed by that Date (S) 100 100 100 Economic Rate of Return Z 17-46 13-50 Financial Rate of Return Z 18-50 15-50 Number of Loans 8,500 18,440 206 STAFF INPUT (Staffweeks) FY82 FY83 FY84 FY85 FY86 FY87 FY88 TOTAL Preappraisal .6 2.5 36.6 - - - - 39.7 Appraisal - - 10.1 36.2 - - - 46.3 Negotiation - - - 15.2 - - - 15.2 Supervision - - - .5 2.2 .7 4.7 8.1 Total .6 2.5 46.8 51.9 2.2 .7 4.7 109.3 CUMULATIVE DISBURSEMENTS FY86 FY87 FY88 FY89 Appraisal Estimate (US$ M) 8.5 16.0 22.5 25.0 Actual (US$ M) 12.0 19.6 25.0 Actual as 102 of Estimate 141 123 111 Date of Final Loan Disbursements: February 19, 1988 - iii - PROJECT DATES Original Plan Actual Identification March 1983 Preparation February 1983 Appraisal June 1984 Negotia%ions April 1985 Board Approval May 21, 1985 Loan Agreement June 25, 1985 Loan Effectiveness September 23, 1985 Loan Closing Date March 31, 1989 February 19, 1988 MISSION DATA Specialist Staffdays Dates Represented in Field Rating Project Preparation: Feb. 1984 Project Appraisal: June 1984 1/ Supervision 1: Oct. 1985 F 3 1 Supervision 2: Jun/Jul 1986 F 12 1 Supervision 3: Dec. 1986 G 8 1 Supervision 4: Nov. 1987 C 11 1 Total Staffdavs Supervision 34 OTHER PROJECT DATA Borrower: Government of Korea Executing Agency: NACF Fiscal Year of Borrowers January - December Name of Currency: Korean Won Currency Exchange Rate: Appraisal Report US$ 1.00 - Won 800 Average Exchange Rate USS 1.00 - Won 792 Follow-up Project: None 1/ F - Loan Officer; G - Generalist; C - Credit Specialist -iv - PROJECT COMPLETION REPORT KOREA FOURTH AGRICULTURAL CREDIT PROJECT (LOAN 2549-RO) EVALUATION SUMHARY Introduction The project both overlapped and contributed to the success of government's Sixth Five Year Socioeconomic Development Plan. Particularly, it assisted increasing the production of fruits and vegetables meeting rising consumer demand and improving the income of small farmers through intensification and diversification. The project was highly successful and followed three successful similar Bank-assisted projects. Oblectives and Rationale The project focused on agricultural credit as a means to promote agricultural development through financing small farm, private sector investments covering a wide range of agricultural production and rural income diversification activities. The project was also designed to Improve the National Agricultural Cooperative Federation's (NACF) profitability, and resource mobilization. Government was to assist in reviewing NACF's financial conditions (NACF had incurred losses during 1982 and 1983) and to propose measures to improve its efficiency and financial condition. Implementation. Results and Sustainability The project was very successful. It contributed to increasing agricultural production, particularly of fruits, vegetables and special crops, and fostered diversification, intensification, income and employment. However, foreseen investments for non-farm investments by farmers and cooperatives, including marketing facilities, were not financed to the expected. It seems that NACF hesitated to promote such lending for lack of experience and a certain conservatism. NACF, however, was more progressive in supporting diversification activities such as special crops and a multitude of fruits and vegetables, mostly through simple, unsophisticated greenhouse culture. A total of 18,440 subloans were made. This was more than twice as many (8,500) foreseen since more expensive non-farm and marketing loans were neglected and not financed as planned. The average loan size was about US $2,500 equivalent. About 70% of project beneficiaries had less than 1 hectare of land. There was a cost overrun of some 30% which was financed by higher contributions from investors (36% versus 30X) and Government/NACF (272 versus 25%); the Bank Loan eventually financed 372 of cost as compared to 45% foreseen. - v But more importantly, greenhouse and special crops investments again (as in the Third Project) were much higher than planned, due to very high demand both from investors and from consumers. This negated fears of market and price risks. A total of 62% of loans went for greenhouse investments and 18S for special crops, with orchard development (82) and on-farm storage (41) being much less important. A total of only 81 went for irrigation, beekeeping and non-farm investments. The project was completed in less than three years, instead of four years foreseen of 1988, when the loan was fully disbursed, one year ahead of the original Loan F Closing Date. Financial and economic rates of return of investments were high, varying between 13% and over 502, very similar to apprai3al estimates. Project investments created about 8,000 additional man-year employment permanently. NACF's financial conditions and efficiency improved. There were small net earnings (after 1982 and 1983 losses) for the year 1984 through 1987. Government provided PACF with 21.9 billion won to protect NACF and the foreign exchange risk of the loan. This loan bears interest at 102, versus an onlending rate of 8%. It has thus provided temporary liquidity, rather than a long term remedy to the problem of foreign exchange risk.11 Government also provided the sub-borrowers from NACF with loans covering the difference between farmers' contributions/World Bank loan and total project cost. These loans were for a 12-year period, including two years grace, at 72 p.a. NACF was thought to need a 32 interest rate spread to cover its costs and a 122 interest rate was charged to farmers during the early part of the project during 1985 and 1986. However, this rate was reduced to 11.52 as of January 1, 1987, and to 82 as of March 16, 1987, with government compensating NACF for incurred losses. After project completion, government announced that all outstanding loans could be put in grace for five years with ensuing 7-year repayment regardless of its original terms. Again, government coumitted itself to compensate NACF for incurred losses due to that. However, farmers would need to apply for this loan extension and, eventually, 611 of subloans made under the project was applied for. This new development may erode the high repayment discipline of MACF borrowers and threaten NACF's financial viability in the future. NACF had 10.61 of its Fourth Project loans in arrears, but this was of no corcern at this point of time; NACF's financial position is very sound. Only 41 of all loans outstanding made under the four projects were in arrears by December 31, 1987. At the same time, NACF's total outstanding loan portfolio was about US$7.5 billion equivalent; US$60 million loans were delinquent, less than one percentage point. However, the independent auditor reported that government was delinquent to NACF for payments, some of which for 15 years, totalling about US$1.7 billion equivalent. This is of some concern. 1/ In 1989 NACF has had to reduce lending by 252 due to scarcity of long term funds. - vi Sustainab.litv Sustainability of farm investments look robust, provided Korea's economy continues generating high consumer demand for fruits and vegetables. NACF has developed into a technically highly competent institution, hence its institutional health depends on government's agricultural policy, including its interest rate policy. Findinfts and Lessons a) NACF strengthened under the project and benefited from its association with the Bank which it holds in high regard. b) SiAce NACF had to carry the FE risk for this Bank Loan, it has so far refrained from seeking a follow-on Loan. This is because government dictetes an interest rate to farmers below market rates, without compensating NACF fully for its losses due to such policy. c) Small farm greenhouse investments proved to be highly profitable investments for small farmers. d) NACF managed its affairs conservatively and lacked enthusiasm for non-farm investment fianmcing. Therefoire, investments foreseen (302 of project exp'cted) like handicrafts, weaving, machinery repair shops, inland fisheries, tourism facilities, and wood and metal workshops were not financed. This is regrettable. PR0F1T CC4PF!'EION REKI ROREA FOURTH AGRICULTURAL CREDIT PROJECT (IBRD LOAN NO. 2549-KO) October 31. 1988 PREPARED BY TECHNICAL UNIT FOREIGN LOAN OFFICE INTERNATIONAL BANKING DEPARTMENT NATIONAL AGRICULTURAL COOPERATIVE FEDERATION SEOUL KOREA -1- Preface This report presents the result of execution of the Project, its cost and benefit derived from it, in accordance with section 2.10 of the Project Agreement. The report has been prepared by the Technical Unit (TU) of the National Agricultural Cooperative Federation (NACF) for the achievement and evaluation results of the Project for which the World Bank provided US$ 25 million equivalent W 21,467 million to the Government of Korea under the Loan Number of 2549-KO, signed on June 25, 1985. The Project was carried out successfully by the Technical Unit of NACF, under the Project Agreement between IBRD and NACF dated June 25, 1985. The information and data have been collected and obtained from two categories by TU : one from a survey of farm fields for which TU had made many field visits and one from periodic reports by the loan appraisal officers of the Froject Participating County Offices of NACF. This report is the Project Completion Report as well as the Project Evaluation Report. On this opportunity, we wish to express our deep gratitude to the Bank for the cooperation and kind advice by specialists concerned for the successful completion of the Project. Sincerely yours Eun Kee Song Director and General Manager International Banking Department National Agricultural Cooperative Federation -3- Editorial staff of the Project Evaluation Report Foreign Loan office of International Department, sCF Hyun-ka Chung, General Manager. overall supervision and advice. Run-soo Lee, Project Manager. Chief of the editorial staff Young-chul Kim, Farm machine specialist. Planning and administration. Summarized and wrote the Project results and evaluation, surveyed and analysed farm machinery and beekeeping subproject. Doo-sup Lee, Greenhouse specialist. Summarized and wrote the Bank's assistance, surveyed and analysed greehouse subproject. Byoung-yeon Kim, Orchard developnent specialist. surveyed and analysed fruits and up-land irrigation subprojects. Min-sup Shin, Administrator and special crop specialist. Summarized and analysed special crop subprojects and wrote Project inplementation. Chang-bai Son, Assistant administrator. collected and processed the information and data. -4- Currency Equivalents December 1987 Won (W)1 = US$ 0.00126 Won 792 =.US$ 1.00 Wl million = USS 1,260.00 Wl billion = US$ 1.26 millions Weights and Measures 1 meter (m) = 3.28 feet (ft) 1 kilometer (km) = 0.62 miles 1 hectare (ha) = 2.47 acres (ac) = 3,000pyongs 1 kilogram (kg) = 2,205 pounds (lb) 1 ton (t) = 1,000kg = ^- 6M° Ibs 1 pyong = 3.3sq. m Abbreviations NACF : National Agricultural Cooperative Federation NLCF : National Livestock Cooperative Federation FM : Foreign Loan Office of NACF TU : Technical Unit of NACF CO : County O'.fice of NACF PC : Primary Cooperative SC : Special Cooperative LAO : Loan Appraisal Officer, of CO BOK : Bank of Kbrea MAFF : Ministry of Agriculture,Forestry and Fisheries PIP : Project Implamentation Plan PCO : Participating county offices of kCpF. The Project : The Fourth Agricultural Credit Project IBRD Loan No. 2549-KO ) -5- The three Previous Bank-assisted agricultural credit Projects The 1st Project : 335 - KO The 2nd Project : 1328 -. KO The 3rd Project : 1974 - KO KOREA The Fourth Agricultural Credit Proiect (Loan No. 2549 - KO) I Introduction 1.01 This is the final report on ccmpletion and evaluation of the Fourth Agricultural Credit Project. Therefore the report records what NACF as the Project manager-achieved and found out what problems were, what lessons learned were during the Project period, which may be useful for future reference on agricultural credit projects in Korea. This report is prepared and furnished to the Bank pursuant to the Project Agreement of the Fourth Agricultural Credit Project between the Bank and NACF. II The Project A. Contents of the Loan 2.01 Loan number : 2549 - Ko Loan amount : US$ 25 milliom Borrower : Government of Korea Executing Agency : NACF Beneficiary : Farmers (including member farmers of coops) Date of Loan Agreement : Jun. 25, 1985 Date of Loan Effectiveness : Sep. 23, 1985 Date of final Disbursement : Feb. 19, 1988 Date of Project caopletion : Dec. 31, 1987 --6- B. Project objectives 2.02 The objectives were to finance NACF subloans to farmers and its member cooperatives so that it would contribute to increasing the fanm productivity, creating off-season employment, and thus help to expand rural income. Th. implementing period, overlapped in part with Korea's Sixth Five-Year Socioeconomic Development Plan (1987 - 1991) The important strategic points of the Government's Agricultural Development Plan in the Five-Year Plan are : 1. To adjust the agricultural production system for steady supply of food grains for nation. 2. To improve the agricultural structure for expansion of agrlcultural productivity. 3. To maintain prices and balance supply for demand of agricultural products. 4. To develop agro-industrial districts in the country so as to improve rural income. 5. To assist young farmers 6. To activate the rural economy and develop rural potential through improved supporting systems such as financing and bether tax system. 2.03 The target of agro-economic growth during the new Five-Year Plan is 2.4% growth on the average annually, and increase farm income by 7.5% on the average annually. To support the Socioeconomic Development Plan, NACF provides medium and long term investment credit for farmers to increase farm production . In a word, the objectives of the Project matched very well with government's Five-Year Plan of Korea in every sector. -7- C. Project Description 2.04 Under the Project NACF assisted in : 1. Promoting agricultural development through private investments, covering wide range of agricultural production and marketing activities : and 2. Strengthening farmers' financial capabilities. 2.05 The Project consisted of the following parts 1. NACF subloans to farmers for their private investments in : A. Agricultural production facilities. B. Farm machinery and equipments. C. Marketing and storage facilities. D. Input manufacturing and supply. E. Agroprocessing facilities and other rural business opportunities to expand off-farm income sources. 2. Measures to improve NACF's profitability and resource mobilization. During the Project, NACF financed farmers for their farm business investments such as above mentioned category A,B,C, and E, except D. As to the part D, no farmers wished to invest their money in this part during Project period. TU devided investment items of each subproject into two parts, that is, fundamental items and additional items. The difference between fundamental items and additional items is : A. Fundamental item items that are important and necessary for the subprojects basically. B. Additional item : items that are not neccessary absolutely but conveniont if farmer have one. -8- 2.06 The actual percentage of each subproject was as follows : Subprojects. Amount Percentage (million Won) ( % ) Greenhouses 36,128 62 Special crops 10,666 18 Orchard development 4,527 8 On-farm stoage 1,934 4 Upland irrigation 1,835 3 Oil service center 1,613 3 Beekeeping 621 1 Farm machinery 610 1 Total 57,934 100 Investments were financed as follows : Resource provider Amount Percentage (million Won) ( % ) The Bank 21,467 37 Government fund 15,437 27 Farmers own fund 21,030 36 Total 57,934 100 Description and detailed investmWnt items by subprojects were as follows: Subprojects Description of investment items Greenhouse New construction or frame replacement of existing for Vegetable old greenhouses and provision of farm inputs required for the production of the initial crops. Fundamental items : metal frame, covering materials for heat insulation and cperating capital for the initial crop of vegetables. Additional items : sprinkler system, ventilating fans, heating stoves and double curtain. Upland irrigation Construction of sprinkler irrigation facilities (Sprinkler) for orchards and vegetable farms. Fundamental items water pump, piping sprinkler sets Additional items : well digging, electric wiring and installation costs. On-farm storage Construction of on-farm fruit storehouse. Fundamental items storehouse for fruits. Additional items : wooden or plastic boxes for stor- ed fruits. Orchard development Establishing new fruit orchards. Fundamental items : saplings planting and management - grapes costs of initial year. - sweet persinumn. Additional items : land reclamation,farm chemical apple mixing tanks, fences, wells etc. -pear - jujube - plum - citron - Orchard facilities Branch supporting structures. Cgrapes) Fundamental items : branch supporting structure, wiring, labor costs. Additional items : none. -10- Farm machinery Provision of : A. Speed sprayer for spraying farm chemicals. B. Fruit sorter for fruit grading. C. Power mower for orchard weed. Special crops Fundamental items : mushrocm house, heating system, - Oyster mushroom tools, fungi beds, working capitAl for .'itial crop. Additional items : water spraying facilities. - Oak mushroom Fundamental i-ems : oak logs for fungi bed, furgi, wiring, working capital for initial crops, Additional items : water spraying facilities. - Omeeja fruit Fundamental ites : roots, hired labor. Additional it( land reclamation (if any), farm chemi- cal mixing tank, fence, well. - Deodug root Fundamental : seeds, supporting structure, working capital for initial crop. Additional items : none. - Ginseng Fundamental items : roots, shade frame, management costs. Additional items : none. Beekeeping Less than 20 bee hives per farm. Fundamental items : bee hives including honey bees, camb foundation, working capital for initial crop.. Additional items ; honey extracter, small tools. I,,f -11- III Project Implementation 3.01 The Loan beccme effective on Sep. 23, 1985, and was fully disbursed by Feb. 19, 1988, about one year ahead of expected time in the Loan Agreement. The Project was expected to be capleted by Sep. 30, 1988. The Project implementation result by year is as follows Project fi:lementation result 1985 1986 1987 Total Number of 96 124 98 125 Participating COs Number of 6,072 6,814 5,554 18,440 beneficiaries ans made 12,030 11,290 13,584 36,904 (million Won) The Bank loan (USs million) 5 11 9 25 *1 USS 1.9 millions out of 9millions were disbursed in the first quarter of the year 1988. A. Inplementation organization 3.02 7he Technical Unit (TU) of NACF - established the implemcntation procedures and guidlines annually for the Project implementaticn. The COs followed these guidelines when making loans for farmers. -12- Technical Unit of 1-IACF 1. Prepared Project implementation plan annually. 2. Provided theoretical and technical information and advice for participating Cos so that their loan appraisal officers (LAOs) could appraise the investment plan submitted by farmers. 3. Trained LAOs to carry out Project Implementation Plan properly. 4. Allocated Project funds to the participating COs for loans to farmers. 5. Monitored the progress of the Project. 6. Analysed Project progress and reported the results of analysis to the world Bank and Government of Korea. 7. Formulated the Loan regulations and Project Implementation Guidelines, including nationwide applicable farm models, etc. 3.03 The Technical unit (TU) consisted of a project manager, four specialists and an assistant administrator. The following diagram shows organization and staffing for the Project implementation, including TU and LAOs. -13- Organization and Staff for the Project Implementation Cleussification Organization ttaff Planning and rh Adjustment Provincial OffiDcep [Savings&Credit Div. County Office [Loan Section Subloans to farmers | -14- I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ B Implementation Procedure 3.04 TU carried out tCie overall implementation of the Project and county offices of NACF loans to farmers. The procedures were : 1. TU surveys and examines the loan demand reported through provincial offices of NACF from county offices. 2. Farmers apply to the county offices of NACF for loans directly or by way of primary coop's reccmmendation. 3. TU prepared the guiding principles of Project cperation. 4. TU trains the LAOs of provincial branch offices and county offices. 5. TU allocates fund for subloans to provincial and county offices. 6. LAOs make loans to farmers according to the loan regulations and guiding principles. -15- ,The details of implementation procedure were as follows : Project Implementing Proce.ure Ninistry of i I B R D N A C F Finance./ Govn't, Fund Loan withdrawal 'Banking Pund Foreign Loan Office / Foreign FLoan offie ,Collected back later of Project Plan T U Report on Guiding principles of the Project loan demand and subloan pLan. Fund allocation. Provi cialce Guiding principles of the Project Report on and subloan plan. loan demand Fund allocation. COnSultation Count ice Technical Offices of GovernmentCony f ie office on of MUS. Primary ass _stance Rural -Develop- office o Project Area Cooperatives 1. Loan Akplication \ Consult 2. Luan Appraisal 1 3. Loan Making 4. Tchnical Assistance Reccumending 5. Request for Guicie ReSubbo rodation> Preapplication -1b w 3.05 County offices consulted with some institutions in their region and/or receibed recommendation from them before making any loan to subborrowers. LAOs of COs selected eligible borrowers by field survey and appraised farmers' individual investment plan according to regulations of NACP. The details of these mutual cooperatton are shown in the Project inplementation flow chart bellow: -17- Project Implementation Flow Chart 1, ri a d TKOf - survey on the project plan. lannual lend-j /ing plan 2 lection of - Consultation with related govern- Project area ment agencisa or in3titute. County i of ofufnice reccundation - Offices of ORD, primary or horticul- \ office ture cOOperPtives. I Request for recommendation - To reccmmending office by letter. of subborrowers 5 Receipt of preapplication Directly from farmers. .ec m- _ o Isheet from rending subborrowers office Reonuending To co by letter. [subborrowers l 7 Receipt of - From selected farmers. investment plan 8 Appraisal of - Eligibilities formulated under sub- eligibilities loan guidlilnes and other regulations eligibilities concerned. County office I {Appraisal According to format used generally \ |cr edit worthiness in NaCF. Field survey fEProect appis- Appraisal of financial feasibility, 10 technical vitality, terms and condi- tions of loan,repayment capability and loan amount. * ORD: Office of Rural Development of Korea. -18- 111 Selection of Select eligible subborrowers eligible | within allocated loan ceiling / | stbborrowersJ and notify each subborrower of the selection result. County 3.J2 fReceipt o office application Frm each eligible subborrow- letters er. \ [Subloans After examining "Investment Plan appraisal sheet" and attainment of legal securit- ies,NACF makes loans to eligible subborrowers. 1 Supervision -1 Payment from loan management after account by the Project progress subloan and technical assistance along with monitoring and supervision. -19- C. Implementation Guideline 3.06 Guidelines for lending and ijplementation.of the Project were formulated annually by TV for the purpose of effective implementation and fund management. In 1985, the beginning year of the Project, Tu recammended basic directions on sane important policy and institutional matters and got the approval of NACF management and MAFF. The major directions were as follows : (a) The interest rate charged to subborrowers was 12% p.a. at the start- ing point. But the interest rate was changed as follows Starting : 12% From JAN. 1, 1987 : 11.5% Fran MAR. 16, 1987 : 8.0% NACF reduced the interest rate under projects from the previous 11.5% to 8% p.a. as of March 16, 1987, in accordance with Government policy. Government ccmpensated NACF for 3.5% interest gap. (b) TU was responsible for the selection of new subprojects, (c) Under the First and the second Project, participating cooperatives selected the subborrowers within the allocatdd-,mount..fo1 each subproject in the Project Implementation Plan (PIP). But underthe Third and the Foaith Project, TU gave COs a package ceiling as much as possible without sub- allocation by subptojects. (d) The minimum financial rate of return to the subproject should be over 10% -20- Actual repayment periods of subprojects approved : Grace Repayment Total loan period period period Subprojects Years Greenhouse 1 5 6 Upland irrigation -Vegetable 3 4 7 - Orchard 5 5 10 On-farm storage 1 6 7 Orchard develorment - Grapes,jujube,plum 5 4 9 - Pear,sweet persimmon 6 4 10 - Citron 4 4 8 - Orchard facilities 4-6 4 8-10 Farm machinery - Speed sprayer Large size - 5 5 Small size - 7 7 - Fruit sorter - 5 5 - Power mower - 3 3 Special crops - Oyster mushroom 1 5 6 - Oak mushroom 2 3 5 - Qmeeja fruit 2 3 5 - Deodug root 2 2 4 - Ginseng - 3 3 Beekeeping 2 3 5 Primary coop's Oil service center 3 4 7 -21- (e) Uhder the Project,the methc9s and procedures of appraisal on farmer's loan applications and supervision of subloans were adjusted to the increased volume of subloans and diversities of subprojects. The main adjumstments were as follows : 1) For the patternized subprojects, individual financial analysis was not required, LAD assumed the same rate of return to all similar subprojects and applied the same period of repayment to all subloans as the patternized standard farm models developed by TU or regionally developed by LAO. But LAD took responsibility to appraise all the investment plans and subloan amounts o an individual basis even under the patternized-analysis .system. 2) The individita-l analysis was required for the applications for the non-patternized subprojects 3) LAO assessed the applicant's credit worthines. according to the methods and prcedures generally applied in NACF credit operations. (f) The amount of a subloan was limited to not exceeding 70% of investment cost. D. Training and education activities. 3.07 Ton6ar the Fburth Project, TU provided a series of training program for LAOs every year. During the period of 1985-1987, total participanting LAOs of participating county branch offices were 319 persons - 95 in 1985, 113 in 1986, 111 in 1987. The contents of the training included i) each years project implementation plan and loan regulations ii) project implementation guidelines by subprojects ; and iii) loan appraisal criteria and methods which enhanced LAO's ability and enabled them to implement the Project in good order. 3.08 During the same period, NACF provided farmers with up-to-date farming technology for cash crops such as greenhouse, mushroaus, floral farming, fruits, livestock, medicinal herbs etc. under the Farming Technique Assistance Program. Many of these cash crops are the same kinds of subprojects under the Fourth Project. -22- These training courses, called the New Farmers Technical College, have been contributing to the rapid diffusion of high farming. technology and the enhance- ment of farm income The participants by courses during the Project period were ,as follows: participants by courses s Participants 1985 1986 1987 Total Greenhouse 430 265 356 951 Mushroom 428 359 308 1,095 Floral farming 163 118 137 418 Apple 96 101 103 300 Pear - - 89 89 Grapes 98 188 164 450 Peach - 82 50 132 Ginseng - 205 99 304 Herbs - = 172 172 Total 1,215 1,318 1,378 3,911 E. Project Monitoring 3.09 Mboitoring is the 'provision of information and the use of infor- mation, to enable management group to assess 'progress of implementation and to take timely decisions to ensura that progress keeps according to schedule. For this purpose, during the Project implementation period, TU collected necessary reports on project implementation progress as follows : -23- TU collected : 1) Annual survey report on farmers' loan demand to know how may farmers want what kinds of investments (subproject) and to gather information for preparing Project Implementation Plan (PIP) and discuss the PIP with MAFF, and t1a Bank if necessary. 2) Semimonthly reports on the Project progress to know number and amount of loans made and to apply to the Bank for withdrawal of the Bank loan. This report was collected by NACF's on-line(EDPS) system. 3) Monthly reports on progress of the Projects under Foreign Loan Office of NACF from COs, which mentioned all kinds of Projects by foreign loan including Project by the Bank Loan. 3.10 To achieve the purpose of efficient Project implementation of Project participating COs and technical extension services for individual fanmers, TU members visited 1,212 farms and a total of 130 participating COs of NACF to check their progress, TU also held regional seminars on farming technique during Project implemntation period as follwos -24- Actual Result of TU's Field Trips Year Man-days - Total Number Visited _______ rcO Farm r 1985 20 12 117 1986 80 47 470 1987 101 58 580 1988 28 13 45 Total 229 130 1,212 Actual Result of Farmer Technical Education Year Man-days PCO No, of farmers Subproject 1987 2 2 744 -. Orchard development - Special crops 1988 (3) (3) (900) (Prearrangement) 3.11 The proper provision of extension services was an essential element in ensuring reasonable investments and operation on the farm, But county offices did not have, in general, an extension worker for technical services for farming. The technical and extension services to farmers in Korea are under the responsibility of the Office of Rural Development (CRD) Korea. However,special coops.and a limitted number of primary coops provide their nember farmers with more intensive extension support in horticulture and a certain kind of farming work, using their own specialist staff member. Even though county offices had not their own staff-member for technical servies, they were requested to help farmers through proper extension services with a budget that was earmarked annually for the extension services for participating farmers. -25- 3.12 Scope of extension services of participating COs. Participating COs 1) Made farm-visits and then gave advice to farmers by specialists fran agricultural colleges, ORD and/or advanced farmers who were invited by the participating Cos. 2) Organized study groups for observation of technically advanced fanms. 3) Organized seminars or lectures on special farming techniques. 4) Organized farming groups led by leading farmers. F. Project performance Fund disbursement 3.13 Actual disbursements in detail during the Project period were as follows In US $ million Period Number of Disbursements cumulative by year farmers Appraisal Actual Dec. 31, 1985 6,072 5.0 5.0 Jun. 30, 1986 2,920 5.0 12.0 Dec, 31 3,894 8.5 16.0 Jun. 30, 1987 -2,549 12.0 19.6 Dec. 31 3,005 16.0 23.1 Jun. 30, 1988 - 20.0 25.0 Dec. 31 22.5 Jun. 30, 1989 25.0 Total 18,440 25.0 25.0 -26- 3.14 By the end of 1987, Government had lent W 17,500 million to NACP for the Project at annual interest rate of 7.0% with the repayment period of 12 years including 2 years of grace period. Dates of disbursements mount (W million) Feb. 28. 1986 3,300 Jul. 22. 1986 3,000 Oct. 31. 1986 2)000 Aug. 7. 1987 2,300 Sep. 30. 1987 2,300 Dec. 17. 1987 4,600 Total 17,500 * Until the end of 1987, NACF had lent farmers government fund a total of W 15,437 million. The unused government fund (W 2,063 million) was carried forward to next year to make loans for farmers in 1988. -27- 3.15 Axinual fiRanced subloans by subprojects In million Won 1985 1986 1987 Total Sub~project No. of Loan NO, of toan No.of Lan No,of Loan farmers anowt facmers aemut fanners amount farmers amount Greenhouse 4,649 8,744 3,560 4,406 4,832 10,695 13,041 23,845 64.6 tpland irrigation - Vegetable 83 216 48 118 35 97 166 431 1.2 - Orchard 53 221 67 264 84 332 204 817 2.2 On-farm storage 52 242 109 515 87 539 248 1,296 3.5 Orchard develomnat - Grapes 253 401 67 141 6 30 326 572 1.5 - Peach 34 50 69 209 1 1 104 260 0.7 - Sweet persimmon 98 202 43 160 145 422 286 784 2.1 - Apple 11 31 40 112 130 512 181 655 1.8 - Pear - - 15 15 11 49 26 64 0.2 - Jujube 119 120 38 121 50 170 207 411 1.1 - Plum - - 3 9 34 57 37 66 0.2 --citron -- - - 16 37 16 37 0.1 - Orchard facilities 1 14 46 197 - - 57 211 0.6 Farm machinery - Speed sprayer 31 211 39 143 12 60 82 414 1.1 -"Fruit sorter 1 2 - - - - 1 2 0.0 - Poer mer - - 3 3 2 2 5 5 0.0 Special crops - Oyster mushroam 122 269 382 947 42 92 546 1,308 3.5 - Oak mushroom 248 849 255 964 9 74 512 1,887 5.1 - Oneeja fruit 40 87 2 10 - - 42 97 0.3 - Deodug root 48 63 122 166 1 3 171 232 0.6 - Ginseng - - 1,769 1,965 - - 1,769 1,965 5.3 Beekee- ing 219 308 72 84 16 24 307 416 1.2 Primary coops oil - - 65 741 41 388 106 1,129 3.1 service am*ter Total 6,072 12,030 6,814 11,290 5,554 13,584 18,440 36,904 100.0 -28- 3.16 The Project cost Detail.- of the total Project cost by subproject categories In million Won Subproject Estimaced cost (appraisal) Actual cost (result) categories btal % The Bank Gov't fund UTbbhrr(bAOrs ttal % The Bank Gov't fund Subborruwers' Production facilities 14,400 32 6,480 3,600 4,320 53,777 92 19,927 14,131 19,719 Farm machinery & equipment 13,600 31 6,120 3,400 4,080 610 1 226 195 189 Marketing facilities 6,400 15 2,880 1,600 1,920 1,934 4 716 580 638 Input supply faclities 2,400 5 1,080 600 720 - - - - - Agroprocessing facilities 2,400 5 1,080 600 720 - - - _ _ Other ncnfarm investments 5,200 12 2,360 1,300 1,540 1,613 3 598 531 484 Total 44,400 100 20,000 11,100 13,300 57,934 100 21,467 15,437 21,030 T Ratio by resource mobilization 100% 45% 25% 30% 100% 37% 27% 36% Note : Other nonfanm investments represent primary coops'oil service center for fanm machinery. -- The financing plan provides for a Bank loan of USS 25 million, amounting to 45% of Project costs equivalent to W 20,000 million estimated by average foreign exchange rate (USS1= w 799), but actual disbursed amount reached W 21,467 million by each actual foreign exchange rates (US$= W859 in average) and this extra amount made NACF can afford more financing for famers eventually. On the other hand, GoR lent NACF W15,437 million while Subborrowers contributed W21,030 million for the Project. All these made it possible that NAaF loan more mony for farmers. And so tlhw total cost was oerrun. Cost sumary In million Won Appraisal Actual ri,al (55% Foreign Total Local (63%) Foreign Total NACF Subborrower (The Bank) NACF Subborrower cThe Bank) Asount 11,100 13,300 20,000 44,400 15,437 21,030 21,467 57,934 25 30 45 100 27 36 37 100 mhe actual average subloans per fanmer by subproject Number of Subloans (million Won) Subprojects fanm Taal Average amount per fanmer households amount Greenhouse 13,041 23,845 1.8 Upland irrigation - Vegetable 166 431 2.6 - Orchard 204 817 4.0 On-fanm storage 248 1,296 5.2 Orchard development - Grapes 326 572 1.8 - Peach 104 260 2.5 - Sweet persimmn 286 784 2.7 - Apple 181 655 3.6 -Pear 26 64 2.5 - Jujube 207 411 2.0 - Plum 37 66 1.8 - Citron 16 37 2.3 - Orchard facilitiee 57 211 3.7 Farm machinery - Speed sprayer 82 414 5.0 - Fruit sorter 1 2 2.0 - power moer 5 5 1.0 Special crcps - oyster mushroom 546 1,308 2.4 - Oak mushroon 512 1,887 3.7 - Qmeeja fruit 42 97 2.3 - Deodug root 171 232 1.4 - Ginseng 1,769 1,965 1.1 Beekeeping 307 416 1.4 Primary coops oil 106 1,129 10.7 service center Tbtal 18,440 36,904 2.0 -30- The average investment size of the subprojects (f&am size) Subprojects Unit Actual Model fanm Greenhouse ha 0.1 0.1 Orchard development - Grapes ha 0.5 1 - Peach ha 0.9 ' - Sweet persimon ha 1.6 1 - Apple ha 2.0 1 - Jujube ha 0.7 1 On-farm storage pyong 28 20 Upland irrigation - Vegetable ha 2.0 1 - Orchard ha 1.8 1 Fam machinery E 1 1 Special crops - oyster mushroom pyong 86 50 - Oak mushrrom Thou. logs 7.8 10 - Ginseng pyong 590 300 Beekeeping swanm 17 20 -31- Distribution of loans nmde by loan size less than Wl millions W2 miUiMos Mre than Wl willion W2 millions W3 'gfmons W3 millions Total Subprojects **of Ratio No.of Ratio No.of Ratio No.of Ratio No.of Ratio *famers . % ra)2Xrs S farmers % farmers t farmers % Greenhouse 652 5 ;2217 17 4,825 37 5,347 41 13.041 100 Upland irrigation - - 111 30 259 70 370 100 On-fam storage - 7 3 32 13 209 84 248 100 Orchird development 293 24 446 36 173 14 328 26 1,240 100 - Grapes 82 25 130 40 33 10 81 25 326 100 - Peach - 52 50 10 10 42 40 104 100 - Sweet persiumon 40 14 163 57 43 15 40 14 286 100 - Apple - 15 8 25 14 141 78 181 100 - Jujube 130 63 52 25 25 12 - 207 100 - Others* 41 30 34 25 37 27 24 18 136 100 Farm machinery - - - - - - 88 100 88 100 Special crops 554 18 1,011 33 487 16 988 33 3,040 100 - Oyste mushroam 44 8 115 21 229 42 158 29 546 100 - Oak mushroon - 15 3 138 27 359 70 512 100 - Deodug root 56 33 56 33 38 22 21 12 171 100 - Ginseng 442 25 814 46 71 4 442 25 1,769 100 - Ceeja fruit 12 30 U 25 11 25 8 20 42 100 Beekeeping 83 27 224 73 - - 307 100 Oil service center - - - 106 100 jot 100 Total 1,582 9 3,905 21 5,628 30 7,325 40 18,440 100 * others represent plum, citron, pear and ordcard facilities. -32- 3. 17 Total investment cost of the Project is estimated to be W57,934 mdllion in which 64% of the total cost was financed by iCF; Famers contributed 36% of total cost an average. 'he details of investment portion of each subproject are as follows: Breakdown of Project financing by subproject In million Won investwt Loan Fazmr's contribution Subprojects cost PJUoUft % Piut xm Greenhc'use 36,128 23,845 66 12,283 34 Orchard development 4,527 3,060 68 1,467 32 - Grapes 841 572 68 269 32 - Peach 382 260 68 122 32 - Sweet persimmon . 1,170 784 67 386 33 - Apple 963 655 68 308 32 - Pear 94 64 68 30 32 - Ju3ube 613 411 67 202 33 - Plum .97 66 68 .31 32 - Citron 53 37 69 16 31 - Orchard facilities 314 211 67 103 33 Onfanm storage 1,934 1,296 67 638 33 upland irrigation 1,835 1,248 68 587 32 - Veagetable 634 431 68 203 32 - Orchard 1,201 817 68 384 32 Farm machinery 610 421 69 189 31 - Speed sprayer 600 414 69 186 31 - Fruit sorter & mower 10 7 69 3 31 Special crops 10,666 5,489 51 5,177 49 - Oyster mushroom 1,952 1,308 67 644 33 - Oak mushroom 3,043 1,887 62 1,156 38 - Ginseng 5,171 1,965 38 3,206 62 - Qxeeja fruit 149 97 65 52 35 - Deodug root 351 232 66 119 34 Beekeeping 621 416 67 205 33 Primary coop's oil 1,613 1,129 70 484 30 Service center Tbtal 57,934 36,904 64 21,030 36 -33- 3.18 xne tota± ot 1;.5 participationg county offices (PCO) of NmaF participated wi- der the 4th Project anag ACF' s 139 comty offices POOs under the 1st Project; 59 (42%) P0s under the 2nd Project: 105 (75%) PcOs under the 3rd Project . 127 (91%) PXDs under the 4th Project 125 (90%) Number of PCOs under the Project' Subprojects 1985 . - 1986 1987 TLtal Greenhouse 73 62 63 82 Upland irrigation - Vegetable 6 2 1 6 - Orchard 8 9 12 10 On-farm storage 22 16 19 28 Orchard development - Grapes 16 11 4 17 -Peach 8 9 1 10 - Sweet Persimmon 9 6 10 10 - Apple 3- 5 20 21 -Pear - 1 1 1 - Jujube 3 5 11 12 - Plum - 1 1 2 -Citron - - 2 2 -Orchard facilities 2 5 - 6 Farm machinery - Speed sprayer 15 15 6 17 - Fruit sorter 1 - 1 -Pwer mower - 2 2 2 Special crops - Oyster mushrocm 15 26 1 31 - Oak mushroon 20 26 1 28 - Oeeja fruit 7 1 - 7 - Deodug root 1 6 - 6 - Ginseng - 17 3 18 Beekeeping 26 3 4 27 Primary coops 1 31 1 31 oilservice center 96 124 98 125 -34- Status of loans made by each Province in million Won Province. Gang- Chug- Chung- Jeon- Jeon- Gyeong- Gyeong- Jeju Pusan Taegu Others Total Nuirber of Gyungg weon buk nam buk nam buk nam Subrprojects farmers 21 58 631 1,624 2273 3,358 7,125 2,406 601 28 7 8 18,440 Greenhouse 329 *66 79 1,756 2,155 4,800 '7,634 5,002 1,780 176 33 35 23,845 Upland irrigation - Vegetable - - - 4 1 415 11 - - - - - 431 - Orchard 17 - 4 20 12 12 742 10 - - - - 817 on-farm storage 46 3 37 316 54 17 507 15 301 - - - 1,296 Orchard development - Grapes 13 14 70 186 67 167 24 29 - - - 2 .572 - Peach 5 2 59 87 67 14 26 - - - - - 260 - Sweet persinmon - - - - - 574 3 207 - - - - 784 - Apple 20 1 32 250 37. - 315 - - - - - 655 - Pear - - - 11 - - - :53 - - - - 64 - Jujube 14 - 156 6 53 70 105 7 - - - - 411 - Plum - - - - - 66 - - - - - - 66 - Citron - - - - - 30 - 7 - - - - 37 - Orchard facilities - - 20 90 8 .93 - - - - - - 211 Farm machinery - Speed sprayer 99 3 46 154 3 51 55 3 - - - - 414 - Fruit sorter - - - 2 - - - - - - - - 2 - Power mower - - 1 3 - - 1 - - - - - 5 Secial crops - Oyster nushroom 264 42 5 111 154 694 9 20 - 4 5 - 1,308 - Oak nwshroam 68 - 24 536 456 182 196 366 59 - - - 1,887 - Queja fruit 2 - - 2 48 - 22 - 23 - - - 97 - Deodug root 8 - 18 - 63 71 72 - - - - - 232 - Ginseng - - 456 365 850 . - 273 21 - - - - 1,965 Beekeeping - 24 2 9 34 77 75 49 146 - - - 416 Primory coop's oil 145 60 22 94 240 282 157 129 - - - - 1,129 service center Total 1,030 215 1,031 4,002 4,302 7,615 10,227 5,918 2,309 180 38 37 36,904 IV Project result and evaluation A. Information collecting system 4.01 For collecting available information on the Project result to evaluate Project performanceju decided to use a sample survey method and reports submitted by LAOs of county offices of NACF. According to the data collected fran reports by county offices of NACF,TU cal- culated and analysed the volume of input and output of the Project result. And in order to get actual Project effect, TU calculated and analysed the data collected by sample survey method. Sample survey method 4.02 In consideration of the available manpower and cost, TU decided to use sample survey method like the post evaluation report of the Third Agricultural Credit Project previously submitted to the Bank by TU. For sampling, TI selected number of sampling farms first,to survey in orde: to evaluate the actual effect of the subprojects and then divided the whole fixed number of sampling farms into two parts, one is the part where TU visited every farm directly to collect information, the other is the part where TU collected information by questionnaire which were sent to farmers by mail and vice versa. The number of sampling farms were settled by the statistical sampling method that used as a fonrula for the sample survey in the pre- vious evaluation report of the Third Agricultural Credit Project 1974-KO. The formula is . N n = 1 + N ( gD 2 N Total farm households (total number of subborrowers) n : number of sampling farms K : 2 (constant when the credit worthiness rate represents 95%) D 0.05 (relative discrepancy) C : 0.26 (variable coefficient) -36- Table of sampling Subprojects 1985 Total participating farmers Number of Su t1985 1986 1987 Total samples Green house 4,649 3,560 4,832 13,041 99 Up-land irrigation - Vegetable 83 48 35 166 62 - Orchard 53 67 84 204 66 On-farm storage 52 109 87 248 71 Orchard development - Grapes 253 67 6 326 76 - Peach 34 69 1 104 50 - Sweet persimmon 98 43 145 286 74 - Apple 11 40 130 181 64 - Jujube 119 38 50 207 67 *Farm machinery - Speed sprayer 31 39 12 82 45 Special crops - Oyster mushroan 122 382 42 546 84 - Oak mushroom 248 255 9 512 83 - Deodug root 48 122 1 171 63 - Ginseng - 1,769 - 1,769 94 Beekeeping 219 72 16 307 75 Others * 52 134 104 290 - Total 6,072 6,814 5,554 18,440 1,073 * Other subprojects are:pear, plum, citron, orchard facilities, fruit sorter, power mower and omeeja. These subprojects were excluded because their loan amount was under 2% as a whole in total loan amount. -37- .Detail of smpling method 4.03 To collect information fran farmers, ¶U visited more than 10% of sapling farns and for the remainder TU sent questionnaire to each of saspling farns. tAmber of Infonnation collecting mewd Subprojects sampling Direct Irndirect farms rn±er of v%siJor er of send * Greenhouse 99 20 D.S. LEE 79 119 Upland irrigation - Vegetable 62 6 B.Y.KIM 56 84 - Orchard 66 7 '59 88 On-farm storage 71 7 64 96 Orchard development - Grapes 76 8 68 102 -peach .50 5 W 45 68 -Sweet persimmnn 74 8 66 99 -Apple 64 7 a 57 85 - Jujube 67 7 60 90 Farm machinery - Speed sprayer 45 9 Y.C.KIM 36 54 Special crops - oyster mushroom 84 12 M.S.SHDN 72 108 - Oak mushroom 83 12 71 106 - Deodug root 6. 9 " 54 81 - Ginseng 94 14 w 80 120 Beekeeping 75 15 Y.C.Im 60 90 Total 1,073 146 927 1,390 * Copies of questionnaires were sent to farmers 1.5 times as many as the number of farms for indirect collecting information in considering of no reply from farmn. -38- B; Investment in the Project 4.04 The details of Project investment are : Total invested cost : 57,934 million Won The Bank : 21,467 million Won Gov' t of Korea : 15 437 million Won Farmers : 21,030 million Won Financed status of the Project In million Won Total Financed Subborrower's invested loan investment _cost __._- Subprojects Amount % Anr nt % Amount % Greenhouse 36,128 100 Z3,845 66 12,283 34 Upland irrigation 1,835 100 1,248 68 587 32 On-farm storage 1,934 100 1,296 67 638 33 Orchard development 4,527 100 3,060 68 1,467 32 Fanm machinery 610 100 421 69 189 31 Special crops 10,666 100 5,489 51 5,177 49 Beekeeping 621 100 416 67 205 33 Oil service center 1,613 100 1,129 70 484 30 Total 57,934 100 36,904 64 21,030 36 * In 1985 NACF subloaned farmers W12,030 millions including NACF fund of w7,973 millions which had been collected W6,801 millions in 1986 and W1,172 millions in 1987. Please refer to annexed Table 1. -39- Disttibution of loan by subprojects In milliion Won Appraisal (A) Actual (B) B/A Subprojects Amount Amount - 1. Production facilities 14,400 32 34,058 92 236.5 (A) Greenhouse (23,845) (64.6) (B) Upland irrigation - vegetable (431) 11.2) - orchard (817) (2.2) (C) Orchard developnent - Grapes (572) (1.5) - Peach (260) (0.7) - Sweet Persimon (784) (2.1) - Apple (655) (1.7) - Pear (64) (0.2) -Jujube (411) (1.1) -Pelum (66) (0.2) -Citron (37) (0.1) - orchard facilities (211) (0.6) (D) Special crops - oyster mushroom (1,308) (3.5) COak mushroom (1,887) (5.1) - ameeja fruit (97) (0.2) - Deodug root (232) (0.6) - Ginseng (1,965) (5.3) (E) Beekeeping (416) (1.1) 2. Farm machinery & equipment 13,600 31 421 1 3.1 - Speed sprayer (414) (I.1J - Fruit sorter (2) (0.0) - Power mower (5) (0.0) 3. Maketing facilities 6,400 1S 1,296 4 0.1 On-farm storage (1,296) (3.5) 4. Input supply facilities 2,400 5 - 0.0 5. Agreprocessing facilities 2,400 5 - 0.0 6. Other nonfarm investment 5,200 12 1,129 3 0.1 - PC's oil service center (1,129) (3.1) Total 44,400 100 36,904 100 -40- 4.05 During the Project period there were scme fluctuation in the Project unit costs. 7he details of price fluctuation by year and subprojects are as follows initial investment* cost by subprojects In thousand Won Actual unit costs , Subprojects Unit 87/85 1985 1986 1987 Average Greenhouse 0.1ha 3,560 3,560 3,095 3,405 87 Upland irrigation - Vegetable lba 1,734 1,734 1,840 J,769 106 - Orchard lha 2,737 2,737 2,941 2,805 107 Cn-farm storage 20pyong 7,290 5,490 8,760 7,180 120 Orchard develocpent - Grapes lha 2,548 2,548 2,612 2,569 102 - Peach lha 1,717 1,247 1,247 1,403 72 - Sweet persimmn lha 1,569 1,367 1,483 1,473 94 - Apple lha 2,156 2,016 2,443 2,205 113 - Pear lha 1,332 1,282 1,750 1,454 131 - Jujube lha 2,14i 1,974 2,426 2,182 112 - Plum lha - 1,194 1,160 1,177 97 7 Citron lha - - 1,386 1,386 100 O Orchard facilities lDa 2,548 2,548 2,548 2,548 100 Farm machinery - Speed sprayer *tmall size ea 3,300 3,300 3,500 3,366 106 *Large size ea 12,000 12,000 15,000 13,000 122 - Fruit sorter ea 1,100 1,100 1,200 1,133 109 - Pcwir mower ea 1,000 1,200 1,700 1,300 170 Special crops - Oyster mushroom 50pyong 4,799 4,785 4,825 4,803 101 - Oak mushromn ,000 3,625 3,523 4,028 3,125 111 logs - Cweeja fruit lha 6,926 6,500 6,378 6,601 92 - Deodug root 0.1ha - 1,292 1,292 1,292 100 - Ginseng 0.1ha - 883 883 883 100 Beekeeping 10swarms 1,090 1,090 1,060 1,080 97 WMtE : 1. 'There are two kinds of items in the investment items of subprojects : Fundamental items and additional items, Actual unit cost means fundamental items only; 2. Orchard facilities mean branch supporting structures (prop), wiring and labor cost. 3. The Price of farm machinery is the price of middle priced one. 4. For qinsena. the nrice of nurserv roots is not included. -41- C7 mhe Project effect 4.06 The actual effect of the Project was calculated on the basis of TU'5 seeple survey and data frao MHF, Office of Rural Deweolcm t Korea and Korea Beekeeping Association. Tke actual Project effects of eL&n Subproject are as follows: The actual Project effect Size Full Yield*2 Dleisnted Anmual Subprojects of farm develqxd per farm acreage Total midel yearl model(A) (B) production (A x B) Greenhouse 0.Iha 1987 2.38M/T 1,630ha 38,794H/T Upland irrigation - Vegetable lha 1987 13.4MJT 343ha 4,596M/T - Apple orchard lha 1994 2. OM/T 368ha 736.T" bn-farm storage 2Opycng 1991 (30.OM/T)*3 6,937pyong (10,405H/T)*3 (apople) Orchard development - Grapes lha 1994 18M/r 172ha 3,096MZT - Peach lha 1995 17M/T 94ha l1598M/T - Sweet persimnon lha 1996 1O*'T 471ha 4,710M*T - Apple lha 1995 35K/I 369ha 12,915*'T - Jujube lha 1995 7.8M/T 157ha 1,224*'T Special crops - Oyster mushroom 5opycng 1987 M4T iSha 3,600*'T - Oak mshroom 5,0001ogs 1987 1,250kgs 4,005thou.1ogs 1,00WT - Deodug root 0 .lih 1987 417kgs 28ha 117M/T - Ginseng 0.Iha 1990 346kgs 348ha 1,204*T' B"eeeping lOboxes 1990 250kgs 5,194boxes 130*'T Total 73,721M/T NIME * 1. Initial year : 1986 2 Yields per fars model of subprojects were calculated ag follows: a. Greenhouse : Total Atea : 21,000ha ('88 MAlI's statistics) Yield : 500,000MVTI W ) Therefore 23.8 m/T per ha and 2.38 Y*'T per 0.1 ha. -42- b. Upland irrigation : e e difference of yield guantity between with-project and without-project. (Vegetable : double cropping) c. On-fanm storage : The storage capacity of apple per lpyong is 1,500kgs. Consequtly, 20ponxg flooring storehouse can store 30,000kgs t30MVT) dL Orchard development : The yields of grapes, peach and sweet persinmon are the yields of full developed year of orchards. e. Special crops : - Cyster mushroan : Yield per lpyong of l cropping is 40kgs. Oyster mushroom farming usually has double crpping in a year. Accordingly, 40kgs x 50pyong x 2 = 4,000kgs(4M/T) - Oak mushroon : Annual average yield per 5,000logs is 1i250kgs. - Deodug root : Annual average yield per 0.Iha is 417kgs. - Ginseng Gnsueng fields usually produce 346kgs of ginseng roots per 0.1ha in the 4th farming year (full developed year) (office of Rural Development,Korea) f. Beekeeping : one swamn box of honey bees usually produce 25kgs of hmney in a year (Korea Beekeeping Association) 3 The quantity of stored fruits is shown in the cn-farm storage column -43-- Ihe actual Project effect in value Full Implemnte-3 Net benefit (in thou. Won) Subprojects dese1cnecnt acreage or year volume per unit* Total Greenhouse 1987 1,630ha &.1har- 837 13,643,100 (cucumber) Upland irrigation - Vegetable 1987 343ha lha-1,082 371,126 - Apple orchard 1994 368ha lha-3,576 1,315,968 On-farm storage 1991 6,937pyong 20pyong-1,273 441,540 (apple) Orchard development - Grapes 1994 172ha lha-3,893 669,596 -Peach 1995 94ha lha-5,837 548,678 - Sweet persimicn 1996 471ha lha-6,449 3,037,479 - Apple 1995 369ha lha-21,801 8,044,569 - Jujube 1995 157ha lha-10,890 L1709J730 Special crops - Oyster mushromn 1987 15ha 50pyong-991 891,900 - Oak mushroom 1987 4,005thou. 5,00010gs-1587** 1,271,187 logs - Deodug root 1987 28ha lha-643*4 18,004 - Ginseng 1990 348ha 0.1ha-5,402 18,798,960 Beekeeping 1.990 5,194boxes 10bex-654 339,688 Total 51,101,525 * The figures of net benefit (total benefit - total cost) per unit of each subproject are the same figures of financial analysis in full developed year's net benefit of each subproject. The net benefits of oak mushromn and deodug root are annual average benefits of each subproject. -44- 'he enlargeffnt of anuval eqloynent coortunity by the Project. Full developed tit of Amnual sary labor per _ Sutprojects unit of fanm size (average) ieented EwLoymnt qportunity Year fam size Ma wcman acreage (imnday) Greenhouse 1987 i Oa 45 44 89 1,630ha 1,450,700 nn-fam storage 1991 2Oyong 30 50 80 6,937pyong .27,748 Orcdard &evelopaent - Grapes 1994 lOa 26 12 38 172ha 65,360 - Peach 1995 10a 23 18 41 94ha 38,546 - Sweet persimnon 1996 lOa 18 4 22 471ha 103,620 - Apple 1995 1aa 22 1J 35 869ha 304,150 - Jujube 1995 lOa 8 6 14 157ha 21,980 Special crqps - Oyster mushroce 1987 50pyuN 20 160 180 15ha 162,000 - Oak mshroam 1987 5,0001Ogs 20 20 40 . 4,005thou.1ogs 32,040 - Deodug root 1987 10a 14 15 29 28ha 8,120 - Ginseng 1990 lOa 26 25 51 348ha 177,480 Total 252 367 619 2,391,738 : 3 * 10 a = 0.1 hia D. Financial and economic analysis. 4.07 TU calculated financial rates of return(FRR) of each subproject to measure the financial viabilities of farm investments in 1987. And also economic rates of return (ERR) of subprojects were calculated by adjusting financial prices to economic values. In adjusting financial prices to economic values, TU used the standard conversion factors calculated according to the procedures of appropriate adjustments for shadow price of foreign exchange, opportunity cost, taxes and subtidies. The results of analysis on the subproject are as follows : Subprojects FRR ERR Subprojects FRR ERR Greenhouse Orchard development A. Single cropping. - Peach 30% 30% - Cucumber 39% 33% - Grapes 18% 18% - Green Pepper 50% 50% - Sweet persimmon 26% 26% - Tomato 48% 42% - Plum 38% 38% - Strawberry 29% 22% - Jujube 37 % 36% - Pumpkin 15% 13% On-farm storage 18% 17% - Oriental melon' 50% 50% * Ulpland irrigation = Chrysanthemum 39% 34 Uln rrgto - Movable sprinkler 50 % 50% B. Double croLping- - Fixed sprinkler 50% 50% - Cucumber 50% 50% Farm machinery green pepper - oriental melon - Speed sprayer 22 t 14% - Orintal elon 50% 50% water melon 5 - Power mower 29 % 17% - Pumpkin 25% 31% Special crops green pepper - Leucube 18% 21% - Ginseng 26 % 26% cucLmber - Oyster mushroom 24% 22% - Chrysanthemum 50% 50% - Oak mushroom. 30% 28% tlmato - Deodug root 23% 20% Orchard develolment - Cmeeja fruit 21% 22% - Apple 38% 39% - Kookija fruit ,41% 34% - Pear 19% 20% Beekeeping 34% 34% *The standard conversion factors are Capital goods 0.94 Consumption coods : 0.89 Farm labor 0.82 -46- 4.08 Nearly 70% of the subloans financed were for farmers who had farming acreage under lha : greenhouse 67%, upland irrigation 35%, grape 88% sweet persimmon 93%. oyster mushroom 63%, oak mushroom 72%, beekeeping 45%,and total Project 67%. No. of subloans and loan amount by farm size were as follows: Farm size No.of Loan amount Average % of % of before subloan (million Won) size of subloam loan Project subloan number amount (ha) (w'000) less than 0.5 4,380 9,338 2,131 24 25 0.5 - 1 7,630 15,606 2,045 41 42 1 - 2 5,197 9,264 1,782 28 25 2 - 3 1,051 2,144 2,039 6 6 over 3 182 552 3,032 1 2 Thtal 18,440 36,904 2,001 100 100 ukloans made by fana size of main subprojects-are explained on table 6.. 4.09 Average size of subloans was W2,000,000 for each farmer. Subloans were broken down into loan size, namely,less than 1 million Won, 1-2, 2-3, over 3 million Won.Almost 80%of the subloan had been under 3 mill- icn Won in loan size. No. of subloan and loan amount by loan size are as follows : Loan size No. of Loan amount %of %of (million Won) subloan (million Won) subloan loan nurber amount less than 1 1,725 733 9 2 1 - 2 6,930 8,929 38 24 2 - 3 5,904 13,157 32 36 over 3 3,881 14,085 21 38 Total 18,440 36,904 100 100 Sublcans made, by loan size of main subpr9jects are explained on table 7. -47- V. The performance of the parties concerned 5.01 NACF has been able to implement the Project successfully thanks to its long term experience, its member farmers' aggressive efforts forward the establishment of high income and welfare villages and especially the faithful performance of duties by all three parties - NACF, the government of Korea and the Bank - as follows A. NACF 5.02 Semiannual Progress Report: In accordance with the provision -of section 2.07(b) of the Project Agreement, NACF regularly furnished to the Bank the report at semiannual intervals covering the progress of Project implementation, activities of T.U., Project implementation plan, the operational news of NACF and all the other information in detail. 5.03 Maintenance of Technical Unit (TU) : Established under the First Agricultural Credit Project (Loan no. 335 KO), the Technical Unit has been maintained under the structure of NACF and will be maintained even after the IBRD Loan has been fully disbursed. 5.04 Audit Report : Pursuant to section 4.02 of the Project Agree- ment, NMACF has its accounts and financial statements and the Special Account audited by independent auditors three times for the fiscal year 1985 , 1986, 1987. Each time, the audit reports on the statements of Project account and financial statements and supplementary information have been furnished to. the Bank within the required time limit. -48- 5.05 The measures for inproving financial condition : NACF were to implemnt the measures for improving its financial condition in accordance with Section 4.03 of the Project Agreement. However,-the main reason for financial losses in 1982 and 1983 was that the government had reduced interest rates on loans and deposits but the reduced rates applied to all outstanding loans and only to new deposits. These negative spread on lendipg had been gradually solved according to the flow of time acdNACF's financial condition had been improved as follows without special measures * Net Earnings of NACF (In billion Won) Year 1982 1983 1984 1985 1986 1987 Net Earnings (55) (11) 15 7 5 18 Sources : Audit report by the independent auditors B. The government of Korea 5.06 The support for NACF's financial condition : Pursuant to section 3.04 of Loan Agreement and section 4.03 of Project Agreement, the borrower, in consultation with NACF, informed the Bank, on December 26, 1986, that the financial condition of NACF had been iniproved signifi- cantly in its recent history, so further government support for NACF was unnecessary at this time. The Bank accepted, on February 13, 1987, that proposal on the condition that should there be an adverse change in NACF's financial condition, the Government would carry out a comprehensive review and discuss appropriate measures with the Bank. As there has been no ad- verse change since that time, additional government support for NACF has not been necessary by now. 5.07 The measures against the foreign exchange risk of the Loan : The government provided NACF with 21.9 billion Won for the purpose of protectiong NACF and sub-borr owers against the foreign exchange risk of the Loan in accordance with Schedule 4 of the Loan Agreement. -49- 5.08 The cleartnce of the foreign exchange risk of the Loan : The foreign ex- change risk has been cleared semiannually(June 15, December 15) by the interest accrued from the above mentioned government fund - 21.9 billion Won. The amount of the foreign exchange risk of the Loan incurred and cleared by year is 156 million Won in 1986, 183 million Worn in 1987 and 186 million Won in 1988 Cas of june 15) respectively. 5.09 As reported through our first semi-annual Progress report in 1987, the government took comprehensive measures on the rural community's debt problem as of March 16, 1987 in which the interest rate of the subloans to farmers under the IBRD Loan of NACF has been reduced to 8% per annum. The losses to NACF incurred in 1987 due to this measures amounted to 2,315 million Won, all of which has already been campensated by the government in 1988. The losses to NACF incurred every year in the future will be coapensated every next year by the government. 5.10 The government also took the additional measures as of December 9, 1987, in which the sub-borrowers under the IBRD Loan of NACF have been allowed to repay their loans in installments over a period of seven years after a five-year grace period. According to this additional measures, NACF had received the sub-borrowers' application of a five-year grace period and a seven-year repayment by September 30, 1988 and thereby 22, 602 million Won, 61% of the total subloans, was asked to be post poned by 12, 013 subborrowers in the end. In Response to those measures, the government allowed NACF to repay the government fund in installment over a period of seven years after a five-year grace period in the same condition as subloans. -50- C. The World Bank 75.11 A wide range of assistance and cooperation between the Bank and NACF has been made during the Project implementation period. Further- more, the Bank sent mission to NACF four times during the implementatlon period of the Project and wide exchange of views and extensive discussions took place in amicable atmosphere. 5.12 The first mission, Mr. Deshpande and Mr. Earwaker, visisted NACF fran October 16 to October 18, 1985 to supervise the implementation of the Project. They reviewed the survey of subloan demand, a Project familiarization program for Loan Appraisal Officers and detailed guide- lines on subloan appraisal etc. and were satisfied with those preparation. The mission were much, interested in the proposed governm. - loan to caop- ensate NACF for the estimated foreign exchange risk on the Bank loan and enphasized Korean government should, in consultation with NACF,carry out a csoprehensive review of MACF's financial condition and propose measures to improve its financial performance according to Loan Agreement. .5.13 The second mission, Mr. Earwaker, visited Korea from June 23, to July 5, 1986. He discussed with TU staff the matte'rs arising fran the Project including estimated disbursements of loan and government loan. We had also talked about the possibility of the new loan for the new agricultural project. 5.14 The third mission, Ms. Hill, visited RUCF fran Decenber 4 to December 12, 1986, to supervise the implementation of the Project. The mission evaluated that Project implementation was going well and NACF's financial condition continued to improve. We also discussed the reduction of interest rate fran 12% to 11.5 % per annum -51- 5.15 The fourth mission, Mr. Berg, visited NTCF frcim Novenber 19. to November 29, 1987, to supervise the Project implementation. The mission discussed with T.U, staff on various matters arising from the Project and performed a widespread field trip to look into the progress of the Project in the field. After supervising the Project progress, the hi mission was fully satisfied with the performance in managing the Preject. He also discussed with EPB, MOF, ?AFF, KREI etc. to prepare new project on the agriculture and rural development. It was proposed that IBRD would provide assistance in preparing and formulating i) a comprehensive 4-5 year rural development project ii) appropriate investme,nt policies iii) feasibility studies and a financing plan and iv) a medium term policy and development plan for further investments. * EPB : Econamic Planning Board. * MOF : Ministry of Finance. (Korea) * KREI : Korea Pural Economy Institute. -52- VI. Recovery Of Loan From Beneficiaries 6.01 The objective of this chapter is to describe how much amortized loans from beneficial farmers could not repay is and compare the 1st, 2nd, 3rd, 4th loan and revolving fund each other. We,the NACF, have calculate the delinquent loan ratio by way of getting divided the total balance by the delinquent loan. But.the Bank wanted us to calculate it by being divided the due loan by the delinquent loan and we admit it as reasonable in order to compute the loan fallen due which sub-borrowers cou'd not repay during the year. 6.02 As shown in 6.03 chart, the delinquent ratio of the 4th loan, 3.6%,is lower than that of the lst,2nd,3rd loan and revolving:.fund,31.9%, 47.6%,10.6%,5.6%, respectively. The reason why the amortized loan is much is because the sub-loan from beneficiaries was amortized prematurely. The reason why the lst,2nd,3rd loan's delinquent ratio is higher than the 4th and due payrent of those is more than that of the 4th project. High delinquent ratio of the lst,2nd loan is attributed to the much delinquent loan before 1986. Even though apprehending the high delinquent ratio of the 4th loan with the lapse of;time as much as other loans, because financial ststus of farmers has been much improved, we anticipate the amortizing wishfully. 6.03 Delinquent Ratio Of Loan To Be Amortized (Next Page) -53- Delinquent Ratio Of Loan To Be Amortized (In million Wbn) Balance Loan to be repaid in 1987 Amortized loan Delinquent loan Ratio as of Total Delinquent loan Due payment during as of of Dec.31,1987 as of Dec.31,1986 in 1987 1987 Dec.31,1987 Delinquent loan CL% First loan 148 113 104 9 102 36 31.9 Second Loan 572 391 356 35 373 186 47.6 Tfhird Loan 27,676 7,819 2,836 4,983 8,288 828 10.6 Fourth Loan 33,853 2,028 - 2,028 2,077 72 3.6 Revolving Fund 9,794 556 12 544 493 31 5.6 Total 72,042 10,907 3,308 7,599 11,333 1,151 10.6 VII. overall assessment 7.01 In consideration of the experience under the previous agricultural credit Projects,it was expected that the Bank Loan would be disbursed by the end of June,1989. According to the estimated disbursement schedule of the Staff Appraisal Report of the World Bank , disbursement of the Bank Loan should be carried out by the 2nd semester of 1989, and The Loan Agreement pro- vided that the Loan disbursement closing date should be March 31,1989. However the Project have been performed favorably and completed earlier than expected completion date. NACF thinks this residtee fL.n the Bank's assistance,the help of Government and NACF's exp -iences of previous Bank-assisted Projects. 7.02 NACF subloaned to farmers and primary cooperatives for their investments in agricultural production facilities,farm machinery and-equipFent,storage facilities and other rural busi- ness opportunities to expand off-farm income sources. On the other hand there were various lacking for agro-business such as input manufacturing and supply,and agro-processing facilities because there was no farmer who wished to do such a venturous unknown agro-business.It seems that farmers' most favorite business is greenhouse development which was also very popular in the three previous Projects.And NACF also thinks that small farmers or un- experienced primary coops would not want to try input manufacturing and supply business or invest in agro-processing facilities. 7.03 The lending procedure and the way county coop select subprojects are the same as they were in the previous Third Agri- cultural Credit Projects. The subloan appraisal for investment projects have been carried out by LAOs in the same way as the previous Third Project. That is, WAOs surveyed and appraised every -55- investment project according to the representative models of 35 subprojects prepared by TU, In representative models, TIU divided project investment items into two parts, one is fundamental items that are necessary for the subproject essentially and the other is additional items that are convenient for the subproject but not essential. 7.04 For the type of investment models different fram the representative models,TU prepared LAO send that model to TU for approval. After appraising the technical feasibilities and financial validity of the model substantially,TU informed LAO the appraisal result. Finally LAO financed the subproject or not by the result from TU. 7.05 During the implementation period of the Project. 125 county offices (90%) among 139 offices participated the Project and many primary cooperatives were involved in the Project as would-be cooperative offices which recommended farmers for the subprojects and check the progress of each investment and pay- ment of the subloan to subborrowers according to the progress, collect the interest of subloans and provided technical gui- dance. For these cooperation county offices often payed one percent of interest received from subborrowers in the respective region to primary coops concerned to cover their cost. 7.06 Nowadays we Koreans have plenty of vegetables on our tables at mealtime notwithstanding the season due to the Bank's help which enabled farmers to build sufficient greenhouses that grow every necessary vegetable for Koreans. Financed by the Bank, greenhouse subprojects as well as other subprojects have diversified rural income sources up to the present and they will continue in the future. -56- VIII. Lessons learnt 8.01 Under the Project, the beneficiary farmers had two access way to the fanming technique guidance. One was through organized seminars for participated beneficiary farmers directly by PCOs,and the other was through the use of guidance" channels held by NACF whichl was extended to all farmers through "The New Farmers Technique College. Now and then, TU discovered some cases which participating farmers could not reach the full-fledged management level because of inade- quate farming techniques and information. Afterwards the guidance program should be enlarged,especially through field seminars organized by PCOs and their cooperation agencies such as primary cooperatives and local governments,which has been assessed as a very efficient guidance system for the maximization of the Project effect. 8.02 Actually,TU could not find a chance to finance farmers who work for marketing facilities or input manufacturing and supply fields. So,next time, TU should make efforts to find way to help farmers who work in these fields and make many member cooperatives to participate in the future projects too. 8.03 TU also made efforts to spread the Bank'4 advanced loan appraisal techniques " The Financial Analysis of Agricultural Project over 15 years. We have learned that staff of NACF is interested in this advanced technique developed by the Bank. And in the near future, we believe, this advanced loan appraisal terlnique would be a regular subject for farmers and staff of coops in the training .institutes of NACF. -57- IX. ANNEX -59- Tables Table 1. Actual raising status of Project fund - - - - - - 65 Table 2. Status of withdrawal by subproject and year - - - - 66 Table 3. Total investment cost of the Project - - - - - - - - - - - 67 Table 4. Project progress by subprojects and years - - - - - - - - - 69 Table 5. Status of loans made by subproject ans provinces - - - - - - 73 Table 6. Relations of farm size to sukl'oan size - - - - - - - - - - 74 Table 7. NuITber of subloan and loans made by loan size - - - - - - - 76 Table 8. Wholesale market prices of fruit - - - - - - - - - - - - - 78 Table 9. Wholesale prices of vegetables produced in greenhouses and field - - - - - - - - - - - - - - - - - - - - - 79 Table 10. Apple prices by month - - - - - - - - - - - - - - - - - - - 80 Table 11. Vegetables produced in greenhouses - - - - - - - - - - - - 81 Table 12. Fruit production by year - - -- - - - - - - - - - - 82 Financial and Economic Analyses of Subprojects. * Summary of analysis ( FR and ERR ' 85 Greenhouse Projects 1-1 Cucumber (Forcing culture) - - - - - - - - - - - - - - - - - - - 91 1-2 Cucumber (Semi-forcing culture) - - - - - - - - - - - - - - - - 92 2-1 Green pepper (Forcing culture) - - - - - - - - - - - - - - - - - 93 2-2 Green pepper (control culture) - - - - - - - - - - - - - - - - - 94 3-1 Tomato (Forcing culture) - - - - - - - - - - - - - - - - - - - - 95 3.-2 Tamato (Semi-forcing culture) - - - - - - - - - - - - - - - - - - 96 4-1 Strawberry (Forcing culture) - - - - - - - - - - - - - - - - - - 97 4-2 Strawberry (Semi-forcing culture) - - - - - - - - - - - - - - - - 98 5-1 Pumpkin (Forcing culture) - - - - - - - - - - - - - - - - - - - - 99 5-2 Pumpkin (Semi-forcing culture) - - - - - - - - - - - - - - - - - 100 6-2. Oriental melon (Semi-forcing culture) - - - - - - - - - - - - - 101 6-2 Oriental melon (Premature culture) - - - - - - - - - - - - - - - 102 7-1 Watermelon (Semi-forcing culture) - - - - - - - - - - - - - - - - 103 -61- 7-2 Watermelon (Premature culture) - - - - - - - - - - - - - - - - - - 104 8 Chrysanthemum (Light culture) - - - - - - - - - - - - - - - - - - 105 9 Cucumber - green pepper - - - - - - - - - - - - - - 106 10 Oriental melon - watermelon - - - - - - - - - - - - - - - - - - - 107 11 Cucumber - oriental melon - - - - - - - - - - - - - - - - - - - - 108 12 Pumpkin - green pepper - - - - - - - - - - - - - - - - - - - - - 109 13 Lettuce - cucumber - - - - - - - - - - - - - - - - - - - - - - - 110 14 Cucumber - cucumber - - - - - - - - - - - - - - - - - - - - 111 15 Chrysanthemum - tcmato - - - - - - - - - - - - - - - - - - - - - - 112 16 Additional facilities (cucumber-green pepper) - - - - - - - - - - 113 * Orchard developments 17 Apple - - - - - - - - - - - - - - - - - - - - - - - - - - - 117 18 Pear - - - - - - - - - - - - …---------------- 119 19 Peach - - -- ------------------------ 121 20 Grapes --- - - - - - - - - - - - - - - - - - - - - - - - - 123 21 Sweet persion - - - - - - - - - - - - - - - - - - - - - - - - 125 22 Maesil (plum) ------------------------- 127 23 Jujube - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 129 o Fruit production and sales amnunt by the Project years 131 * On-farm storage 24 Apple storage - - - - - - - - - - - - - - - - - - - - - - - _ _135 * Farm machinery 25 Speed sprayer - - - - - - - - - - - - - - - - - - - - - - - - - 139 26 Power mower - - - - - - - - - - - - - - - - - - - - - - - - - - 140 * Upland irrigation 27 Movable sprinkler (vegetable) ----------------- 143. 28 Fixed sprinkler (apple orchard) - - - - - - - - - - - - - - - - 144 -62- ' Special cros 29 Ginseng - - - - - - - - - - - - - - - - - - - - - - 149 30 oyster mushrom - - - - - - - - - - - - - - - - - - - - - - - - 150 31 Oak mushroan - - - - - - - - - - - - - - - - - - - - - 151 32 Deodug root ----------------------- -- 152 33 Qmeeja fruit - - - - - - - - - - - - - - - - - - - - - - - - - - 153 34 Kookija fruit - - - - - - - - --- - - - - - - - - - - - - --- 154 * Beekeping 35 Beekeeping - - - - - - - - - - - - - - - - - - - - - - - - - - - 157 -63- Table 1 The actual fund raising status for the Project (As of Feb. 29. 1988) Ir* million Won Fund (resources) 1985 1986 1987 1988 Tbtal The Bank loan 4,057 9,791 6,161 1,458 * 21,467 (US$ '000) (4,564) (11,081) (7,488) (1,8 q7) (25,000) (Disbursed ratio) (18%) (44%) (30%) (8%) (100%) Government fund - 8,300 7,137 - 15,437 NACF fund ** 7,973 -6,801 -1,172 - 0 Total 12,030 11,290 12,126 1,458 36,904 * The .Eank loan withdrawn in Feb. 1988 is for the reimbursement of payments by MACF to finance the subprojects of 1987. Consequently, W13,584 millions (12,126+1,458) had been financed for farmers in 1987. ** In 1985 NACF subloaned farmers W12,030 millions including NACF fund of W7,973 millions which had been collected W6,801 millions in 1986 and W1,172 millions in 1987. -65- Table 2 Status of withdrawal by subprojects and years In t$'000 Amount withdrawn Subprojects 1985 1986 1987 1988* Ttal Greenhouse 3,331 4,321 5,893 1,469 15,014 60 Upland irrigation 182 332 225 60 799 3 on-farm storage 92 498 300 75 965 4 Orchard development 319 943 704 176 2,142 9 Fann machinery 91 178 37 9 315 1 Special crops 456 3,989 97 22 4,564 18 Beekeeping 93 78 15 4 190 1 '0il service center - 742 217 52 1,011 4 * Total 4,564 11,081 7,488 1,867 25,000 100 The withdrawal in Feb. 1988 is for the reimbursement of payments to finance the subprojects of Dec. 1987 by NPCF. -66- Total invesmt oost of the Project Tale 3 (2-1) In million Wm_ Loan made (B) (CA+B) Lan Per far ambNuer Quantity Atmount(A) Fonertstion 'veWstbt fA C Greenhouse 13,041 1,630ha 23,845 12,283 36,128 66% 0.l2ha 1.83 Spdriaer irrigaticn - Megetable 166 343ha 431 203 634 68% 2.Oha 2.60 - Orchard 204 368ha 817 384 1,201 68% 1.8ha 4.00 i-fanm storage 248 6,937 1,296 638 1,534 67% 28.0'g 5.23 .p3yang Orchad dreIp* - Grap 326 i72ha 572 269 841 68% 0.5ha 1.75 - Peach 104 94ha 260 122 382 68% 0.9ha 2.50 - 9deet persim 286 471ha 784 386 1,170 67% 1.6ha 2,74 - AWle 181 869ha 655 308 963 68 4.8ha 3.62 - Pear 26 55ha 64 3q 94 68 2.1ha 2.46 - Jujube 207 157ba 411 202 613 67 0.Bha 1.99 - Pltam 37 74ha 66 31 97 68 2.0ha 1.78 - Citron 16 20ha 37 16 53 69 1.3ha 2.31 - Orchard facilities 57 95ha 211 103 314 67 1.7ha 3.70 Farm madcinery - Speed sprayer 82 -82ea 414 186 600 69 LOea 5.05 -Fruit sorter 31 lea 2 1 3 67 1.Oea 2.00 - erarmer 5 5ea 5 2 7 71 1.Oex 1.00 - Oyster mushroa 546 lSha 1,308 644 1,952 67 0.03ha 2.40 - tk mushroom 512 *4,00511 1,887 1,156 3,043 62 7.8221ogs 3.69 Table 3 (2-2) In millicn Won subprojects tLan mae (B) (C=A+B) tan Per farmer Farmers' TOta ?aiNuer Quantity Amount(A) contribution investnt r A/C Quantity Ammunt - Qneeja fruit 42 16ha 97 52 149 65% 0.4ha 2.31 - Deodig root '171 28ha 232 119 351 66 0.2ha 1.36 - Ginsmug 1,769 348ha 1,965 3,206 5,171 38 0.2ha 1.11 Beekeeping 307 5,194box 416 205 621 67 16.9box 1.36 Oil serice center 106 106 1,129 484 1,613 70 l.Ohouse 10.65 house . T*tal 18,440 - 36,904 21,030 57.934 64 2.00 vTL thousand logs Project progress by subprojects and years Table 4 In million Won subprojects 1985 1986 1987 Total Unit of No. Qt.' Amt. No. Ot, Amt. No. Qt. Ant No. Qt. Amt. quantity Greenhouse 4,649 49.4.9 8,744 3,560 583.9 4,406 4,832 551.8 10,695 13,041 1,630.6 23,845 ha Upland irrigation - Vegetable 83 121.3 216 48 86.5 118 35 134.8 97 166 342.6 431 ha - Orchard 53 95.7 221 67 115.2 264 84 154.1 332 204 ?65.0 817 ha On-farm storage 52 2,1C7 242 109 2,400 515 87 2,430 539 248 6,937 1,296 pyong Orchard develcpment - Grapes 253 115.2 401 67 49.8 141 6 7.3 30 326 172.3 572 ha - Peach 34 33.3 50 69 60.6 209 1 0.1 1 104 94.0 260 ha - Sweet persimmon 98 115.7 202 43 75.4 160 145 280 422 286 471.1 784 ha - Apple 11 12.3 '1 40 58.1 112 130 298.6 512 181 369.0 655 ha - Pear - - - 15 11 15 11 44 49 26 55 64 ha - Jujube 119 60.5 120 38 51.5 121 50 45.2 170 207 157.2 411 ha - Plum - - - 3 7 9 34 67 57 37 74 66 ha & - Citron - - - - - 16 19.9 37 16 19.9 37 ha ? - Orchard facilities 11 7 14 46 88 197 - - - 57 95 211 ha Farm machinery .-Speed sprayer 31 31 211 39 39 143 12 12 60 82 82 414 ea -Fruit sorter 1 1 2 - - - - - - 1 1 2 ea -Power mnwer - - 3 3 3 2 2 2 5 5 5 ea Special crops - Oyster wushroam 122 3.1 269 382 10.8 947 42 1.1 92 546 15.0 1,308 ha - Oak mushroon 248 1,699 849 255 2,136 964 9 170 74 512 4,005 1,887 thoulogs - Omeeja fruit 40 14.8 87 2 1.4 10 - - - 42 16.2 97 ha - Decdbg root 48 7.7 63 122 19.9 166 1 0.5 3 171 232 ha - Ginseng - - 1,769 348.4 1,965 - - 1,79 348.4 1,965 ha Beekeeping 219 3,804 308 72 1,070 84 16 320 24 307 5,194 416 box Primary onops' oil 65 65 741 41 41 388 106 106 1,129 hce Ittal 6,072 12,030 6,914 11,290 5,554 13,584 18,440 36,904 Status of loans made by subprojects and provinces Table 5 (4 - 1) in m(Uino won suprojects Greethtouse Upland irrigation Upland irrigation Qn-fa m storage Grapes Peach (veQetable) (orchard) __ _ _ _ province No. Qt. Amt. lb. Qt. M?t* NO. ot. WE. MD. Qt. Amt. M. Qt. lot No Qt. ha ba ha ha ha* ha Kyong-gi 115 13.2 329 5 1.7 17 7 215 46 5. 5.3 13 4 2.3 4 Kag-iezon 20 2.1 66 - - - 1 15 3 4 .5 14 2 2.4 2 Cbxxn-bLk 56 4.7 79 1 3 4 7 205 37 30 8.2 70 28 4.9 59 Cdlunt-n 8 825 117.1 1.756 2 2.8 4 1 11 20 49 2,614 316 157 59.3 186 9 9 87 T Jaemt4ba 871 130.9 2,155 1 0.5 1 3 6 13 10 360 53 26 23.0 67 26 45 68 Jebtm-n 2,320 282.4 4,800 157 331.6 415 2 7 12 8 151 17 75 o45_3 167 12 12 14 Kycw-btuk 6,299 663.2 7,633 6 7.5 U 191 335.8 742 103 2,317 508 16 17.2 24 23 18.4 26 Kyeig-nm 2,097 312.2 5,003 1 3.5 10 2 73 15 12 8.0 29 JeiU 400 95.5 1,780 61 1.440 301 RLIRM 25 5.4 176 cTyek 6 1.6 33 axon .1 0.3 2 am ngJU 7 2.3 35 City.- Total 13,041 16,306 23,845 166 342.6 431 204 365.0 817 248 6,937 1,296 326 172.3 572 104 94.0 26.0 Status of loaIs mif by subpzojeces and provcxes Table 5 (4-2) (In million Wmi) subprojects Sweet petsimn$ AIF1e Pear Jujubc PlIuI Cltron p*ovnc bb Qt. mt. lb. Qt. hM.t. ND. Qt. t. NO. t. Amt. NO. Qt. Amt ND t. Amt ha ha ha ha SYzXtSl ha 4 9 20 2 3.8 14 1 0.7 1 Ozslg-b211 7 9.3 32 139 74.4 156 aIlif nam 42 167.6 250 2 10 11 1 3 6 Jbobm4 a8 20.7 37 26 32.9 54 Jeam- 208 367.4 574 9 25.5 70 37 74 66 13 10.6 30 KyB4bu* 1 2.8 3 119 161.7 315 29 14.6 105 gyq.am u77 100.9 207 24 45 53 1 3 7 3 9.3 .7 city a- city ftaO 286 471.1 784 181 869.0 655 26 55 64 207 157.2 411 37 74 66 16 19.9 37 Status of loans made by subprojects and proviaxs Table 5 (4-3) (In millc taonl subprojeutt Orchard facilities 'Seed sorayer Fruit sorter Power moer oyster w *Uxhrom Obk mushrom province Nb. Qt. Amt. Nb. Qt. Amt. No. at. Amt. NO. Qt. Amt. No. Qt. Amt No Qt. Aht ha ea ea ea ha . thou Kyuiq.gi 27 27 99 123 1.5 264 15 136 s8 1 1 3 7 0.2 42 CMxq-buk 1 9 20 10 10 46 1 1 1 2 0.0 5 4 50 24 Ch s34D 45 90 27 27 154 1 1 2 2 2 3 41 1.2 111 133 1,182 538 -Jean-bk 5 5 8 1 1 3 512.2154 165 931 456 Jemo.im 21 36 94 7 7 5i 1 1 1 306 9.2 694 73 352 180 Kyaon-uk 8 8 55 1 1 1 2 0.1 9 35 520 196 1 1 3 10 0.4 20 81 711 366 6 123 59 UBM city 3 0.2 4 w '1 0.0 5 city city TOWl 57 95 211 82 82 414 1 1 2 5 5 5 546 15.0 1308 512 4005 1887 . _ . _ _ . . . _~~~~I- Statts of loams made by mbprojects and provice Table 5 (4-4) (In slcen bia) subprojects b6feja fruit Dexug root GiMn#T Beekeeping centerv ce_ _ __ provin . Qt. Amt. i. Qt. Mt. NO. Qt. AMt. NO. Qt. Amt. NO. Qt. Amt no t. Am na na ha house Ryoqi-gi 1 0.3 2 3 0.9 8 10 10 144 321 103D RWalyWu * 17 340 24 5 5 61 58 215 QUW-bic Chw19 1.9 18 322 71 456 2 40 2 2 2 22 631 1031 Cf Chmg-nam .1 0.1 2 288 83 365 6 120 9 7 7 94 1624 4002 Jee-buk 25 10.2 47 48 7.7 63 966 128.3 850 20 493 34 21 21 240 2k73 4302 Jecn-nes 33 9.9 71 48 772 76 22 28 282 3,358 7615 Kysegbk 10 2.6 22 68 7.7 72 153 47.6 273 S0 899 75 11 11 157 7,125 10227 Kyosg-am 40 18.5 21 35 636 49 22 22 129 2486 5918 Jeju 5 3.0 23 129 1903 147 601 2309 28 180 C ty dlu- 7 38 MADxM 1 2 city iwangIu 7 35 city Ital 42 16.2 97 171 28.1 232 1769 348.4 1965 307 5194 416 106 106 1129 18440 36,904 Table 6 Relations of fanm size to subloan size (2 - 1) Farm size No.of Loan amout Average E of % of Subprojects (Subloans in size sub- subloan loan (ha) subloan million Won) loan(W'OO0) number anount Less than0.5 2,738 5,723 2,090 21 24 0.5 - 1 5,999 11,922 1,987 46 50 1 - 2 3,782 5,723 1,513 29 24 Greenhouse 2 - 3 522 477 913 4 2 over 3 - - - - - total 13,041 23,845 1,828 100 100 Less thanO.5 - - - - - 0.5 - 1 129 312 2,419 35 25 Upland 1 - 2 178 537 3,017 48 43 irrigation 2 - 3 48 299 6,229 13 24 over 3 15 100 6,667 4 8 total 370 1,248 3,372 100 100 Less than2Cyong 67 220 3,283 27 17 On-farm 20 - 30 161 855 5,310 65 66 storage 30 - 40 20 221 11,050 8 17 over 40 - - - - - total 248 1,296 5,225 100 100 Less thanO.5 244 246 1,008 75 43 Grape 0.5 - 1 42 149 3,548 13 26 1 - 2 20 57 2,850 6 10 2 - 3 20 120 6.000 6 21 over 3 - - - - - total 326 572 1,755 100 100 tee than0.5 62 81 1,306 60 31 0.5 - 1 42 179 4,262 40 69 Peach 1-2 -2- - - - 2-3 - - - - _ over 3 - - - - - total 104 260 2,500 100 100 Less thanO.5 123 165 1,341 43 21 0.5 - 1 143 384 2,685 50 49 Sweet 1 - 2 20 235 11,750 7 30 persincon 2 -3 - - - - - over 3 - - - - - total 286 784 2,741 100 100 Less thanO.5 28 32 1,142 15 5 Apple 0.5 - 1 85 262 3,082 47 40 1 - 2 38 177 4,657 21 27 2 - 3 18 118 6,555 10 18 over 8 12 66 5,500 7 10 total 181 655 3,618 100 100 Less than0.5 128 107 836 62 26 0.5 - 1 27 58 2,148 13 14 1 - 2 52 246 4,731 25 60 Jujube 2 -3 - - - - - over 3 - - - - - total 207 411 1,986 100 100 -74- Relation of famn size to subloan size Table 6. 12 - 2) Farm size Wb.of Loan amotmt Average % of % of Sabprojects {bJs(o s it site sub- subloan loan (ha) subloan million Won) loan(WOO) number amount Less thanO.5 - - - - 0.5 - 1 - - - - _ Seed 1 - 2 20 91 4,550 24 22 sprayer 2 - 3 43 132 3,069 53 32 over 3 19 191 10,052 23 46 total 82 414 5,048 100 100 Less than0.5 251 654 2,606 46 50 0.5 - 1 93 209 2,247 17 16 Oyster 1 - 2 87 183 2,103 16 14 osuhroom 2 --3 115 262 2,278 21 20 over 3 - - - - - total 546 1,308 2,396 100 100 Less than0.5 123 378 3,073 24 20 Oak 0.5 - 1 246 811 3,297 48 43 mishroom 1 - 2 123 623 5,065 24 33 2 - 3 20 75 3,750 4 4 over 3 - - - - - total 512 1,887 3,686 100 100 Less than0.5 10 9 900 6 4 0.5 - 1 38 53 1,394 22 23 edug root 1 - 2 94 135 1,436 55 58 2 - 3 19 28 1,473 11 12 over 3 10 7 700 6 3 total 171 232 1,356 100 100 ee than0.5 318 197 619 18 10 0.5 - 1 566 432 763 32 22 Ginseng 1 - 2 567 688 1,213 32 35 2 - 3 195 491 2,517 11. 25 over 3 123 157 1,276 7 8 total 1,769 1,965 1,110 100 100 Less than0.5 37 47 1,270 12 11 0.5 - 1 101 158 1,564 33 38 Beekeeping 1 - 2 135 166 1,230 44 40 2 - 3 34 45 1,324 11 11 over 3 - - - - - totil 307 416 1,355 100 100 Less than0.5 70 403 5,757 24 25 0.5 - 1 119 677 5,689 41 42 Others* 1 - 2 81 403 4,975 28 25 2 - 3 17 97 5,705 6 6 over 3 3 31 10,333 1 2 total 290 1,611 5,555 100 100 Less thanO.5 4,380 9,338 2,131 24 25 Grand 0.5 - 1 7,630 15,606 2,045 41 42 1 - 2 5,197 9,264 1,782 28 25 total 2 - 3 1,051 2,144 2,039 6 6 over 3 182 552 3,032 ; 1 2 total 18,440 36,904 2,001 100 100 O Others are subprojects which have 0.5% of total farmers or below such as pear, plum, citron, ordiard facilities, fruit sorter, pader mower, oneeja fruit and PC's oil service centers. .The number of subloans and their atmunt by subloan size were calculated by the average percentage of total subloan ntmber and amunt respectively. 2he total of on-farm storage is included in less than 0.5 fanm Si e rAtmnnr- -75- NUmber of subloans and loans made by loan size Table 7 (2 - 1) in million Won Loan size tAmiber of Lo amt.% of subloan % of subloan Subprojects subloan (subloans) number amAout Less tban 1 652 245 5 I 1 - 2 5,217 6,325 40 26 Greenhouse 2 - 3 4,825 10,225 37 43 over 3 2,347 7,050 18 30 total 13,041 23,845 100 100 Less thanI - - - Upland 1 - 2 - - - irrigation 2 - 3 111 250 30 20 over 3 259 993 70 80 total 370 1,248 100 100 Less than 1 - - - 1 - 2 7 12 3 1 On-farm 2 - 3 33 93 13 7 storage over 3 208 1,191 84 92 total 248 1,296 100 100 Les than 1 82 52 25 9 1 - 2 130 155 40 27 Grapes 2 - 3 33 89 10 16 over 3 81 276 25 48 total 326 572 100 100 ess than - - -1 1 - 2 52 78 50 30 Peach 2 - 3 32 94 31 36 over 3 20 88 19 34 total 104 260 100 100 Less than 1 40 39 14 5 Sweet 1 - 2 163 287 57 37 Persimmon 2 - 3 43 121 15 15 over 3 40 337 14 43 total 286 784 100 100 Less than 1 - - - - 1 - 2 14 26 8 4 Apple 2 - 3 25 67 14 10 over 3 142 562 78 86 total 181 655 100 100 Less than 1 95 92 46 23 1 - 2 52 100 25 24 Jujube 2 - 3 44 124 21 30 over 3 16 95 8 23 total 207 411 100 100 -76- Number of subloan and loans made by loan size Table 7 (2 - 2) In million Won Loan size NUmber of Loan amt. % of subloan % of subloan Subprojects subloan (subloans) number amoumt les than1 - -- Speed 1-2 - - Sprayer 2 - 3 - - - - over 3 82 414 100 100 total 82 414 100 100 les than1 44 39 8 3 1 - 2 11S 184 21 14 oyster 2 - 3 229 523 42 40 mishroom over 3 158 562 29 43 total 546 1,308 100 100 Less than I - - - - 1 - 2 25 38 5 2 Oak 2 - 3 128 283 25 15 nushroom over 3 359 1,566 70 83 total 512 1,887 100 100 Less than 1 60 32 35 14 1 - 2 58 70 34 30 Deodug root 2 - 3 37 77 22 33 over 3 16 53 9 23 total 171 232 100 100 Leass than 1 642 177 36 9 1 - 2 764 876 43 45 Ginseng 2 - 3 271 631 16 32 over 3 92 281 5 14 total 1,769 1,965 100 100 Less than 1 83 25 2? 6 1 - 2 224 391 73 94 2 - 3 _ _ _ Beekeeping over 3 - - - - total 307 416 100 100 Less thai 1 27 32 9 2 1 - 2 109 387 38 24 Others 2 - 3 93 580 32 36 over 3 61 612 21 38 total 290 1,611 100 100 Les than 1 1,725 733 9 2 Grand 1 - 2 6,930 8,929 38 24 2 - 3 5,904 13,157 32 36 total over 3 3,881 14,085 21 38 total 18,440 36,904 100 100 .; * Others are subprojects which have 0.5% of total farmers or below such as pear, plum, citron, orchard facilities, fruit sorter, power noer, ameeja fruit and PC's oil service centers. The number of subloans and their amount by subloan size were calculated by the average percentage of total subloan number nnd ammt respectively. -77- Wholesale market price. of fruit Table 8 (Perl5kg) Apple (Fuji) Pear (Singo) Grape (Ca.rbel Early) Peach(Chang bang) Orange Sweet Persiimmon Year W Price W Price W Price w Price W Price w Price Index Index Index Index Index Index 83 10,372 100 5,201 100 8,678 100 9,195 100 5,074 100 13,566 100 84 12,327 119 7,065 136 10,103 116 10,833 118 8,850 174 14,308 105 85 *10,403 100 8,035 154 9,478 109 9,250 101 6,884 136 12,433 92 86 9,375 90 7,926 152 6,920 80 10,000 109 8,727 172 16,765 124 87 10,449 101 9,181 177 9,157 106 9,157 100 7,480 147 18,680 138 1 Medift grade prices of fruit on main wholesale markets in Seoul. 2. Averaged prices of prime harvest season by each fruit 0 Apple : Oct - NDv. 0 Orange Nov - Dec. O Pear : Oct - Nov. 0 Sweet 0 Grape : Aug - Sep. Persinmn Oct - Nov. *O Peach : Jul - Aug 3 Source NACP - _. . ._ B . _ .. _ .. 1 Table 9 Wholesale Prices of Vegetables Produced in Greenhouses and Field (unit Won/kg) Cucumber Lettuce Tcmato Oriental Melon Green Pepper Strawberry Year G.H8T F Q.H F G.H F G.H F G.H F G.H F 1979 355.25 112.83 260.40 190.67 493.00 108.50 820.33 132.00 1,573.60 320.67 1,124,00 439.50 1980 401.75 182.33 412.00 170.83 784.75 180.00 807.66 194.50 1,710.25 284.00 1,771.00 698.50 1981 454.50 263.33 406.80 296.16 595.25 157.00 907.66 298.50 2,013. 6 236.75 1,651.00 836.00 1982 439.00 197.17 260.80 261.17 609.20 88.00 858.75 208.50 2.036.40 245.33 1,825.dO 602.50 1983 611.00 205.33 335.80 334.66 644.40 163.00 920.67 176.50 1,811.20 206.33 1,761.00 822.50 1984 447.50 164.50 429.50 380.67 606.50 159.00 880.00 238.50 2,059.20 428.66 1,502.00 876.00 1985 565.75 193.83 297.75 445.33 651.20 144.67 720.00 210.50 1,631.40 393.67 1,522.25 642.00 1986 495.75 168.83 378.25 389.67 625.40 193.00 685.25 239h7. 1,168.80 291.67 1,153.00 417.00 LQ87 608.25 312.33 351.75 421.17 627.00 586.00 899.50 304.67 1,696.40 608.67 1,491,75 778.00 Note) 1/ The average monthly auction prices of Seoul vegetable markets on the basis of medium graded vegetables. 2/ Greenhouse _/ Field Source NkCF AWfle 1rice. by Month 2able 10 (uit: Wa )k Prie by t _nd LS wmth 1am 2o ~. 4 5 6 Vbriety Year Oct Ibv DeC Next Feb Har Apr May harvest Ih Mcnths Months )anths Months Months Jan later later later later later later 1983 9)550 9,232 10,036 11,931 12,306 31,267 9,387 10M. s8k 105 125 129 118 98 .1984 12,250 12,129 12,417 12,387 14,000 18,560 17,193 100 99 101 lb, 114 151 140 PUji 1985 19,077 13,000-12,98 10,318 10,000 9,460 9,300 100 129 128 102 99 94 92 1986 8,500 9,731 10,391 12,625 16,640 19,515 19,480 100 114 122 149 196 230 229 987 .8,660 9,120 31tJ104 15,043 16,200 13,896 15,750 100 105 128 174 187 160 182 100 109 317 130 145 151 148 : 1983 2,725 3,179 4,276 4,529 4,367 3,483 100 317 .57 166 160 128 ptiLiS 1984 5,467 5,563 5,864 6,500 8,720 8,625 100 102 107 119 160 1s8 Jaiut 1985 4,308 4,000 4,000 4,333 3,640 3,500 100 93 93 101 84 81 l986 4,000 4,000 4,125 6,712 9,731 8,000 100 100 103 168 243 200 1o 1967 100 103 115 139 162 142 1983 3,400 3,196 4,500 4,596 4,400 3,096 100 149 143 138 97 1984 5,833 6,182 6,780 9,480 9,625 100 106 316 163 165 indo 1985 5,000 5,521 6,314 5,563 4,260 3,778 100 110 100 77 68 W986 5,981 6,848 7,000 100 102 1987 5,700 5,500 6,680 6,462 100 96 117 13 100 111 119 123 310 3963 3,903 4,733 4,177 3,679 4,000 100 121 107 94 102 L984 :.5,F3 8,283 6,967 9,167 100 152 128 169 itunt- 1985 6,042 5,327 5,280 S,396 5,609 5,875 4,080 4,000 100 88 87 89 93 97 68 han 1986 5,750 5,580 5,962 6,000 6,182 100 97 104 104 108 1987 .5,952 5.500 4,000 4,729 5,826 5,500 100 92 67 79 98 92 100 310 99 107 100 95 * Soure :McF Vegetables Produced in Greenhouses Table 11 (Unit : ha, Thousand MVT) Year Cultivated Area Utilized Area Production 1970 762 1,289 48 1971 1,014 1,692 59 1972 976 1,607 44. 1973 1,743 2,544 65 1974 1,746 3,503 85 1975 1,746 3,341 76 1976 1,796 3,275 81 1977 2,555 3,981 89 1978 3,738 4,971 116 1979 4,736 6,348 174 1980 7,142 9,228 217 1981 9,315 10,936 252 1982 10,641 12,10S. 272 1983 11,718 13,960 326 1984 12,992 15,600 376 1985 16,569 18,835 460 1986 18,822 21,061 500 1987 20,471 22,339 549 -81- Fruit Production by Year lble 12 (unit: thousand ha/thousand Ton) Apple Pear Persirr.on Gmpe Peach Oange Planted Planted Planted r'du-i- Planted Planted ProdIjca( Planted Prodction Year Area Area Area Area ct Area Area 83 41 586 10 106 7 43 14 1L1 11 99 15 331 84 39 528 9 101 8 55 16 125 12 98 15 261 85 38 533 9 128 8 64 16 150 13 132 16 371 JD 86 36 538 9 135 9 65 17 165 14 139 17 340 87 39 589 8 126 9 65 17 158 14 138 18 441 * Source NkCF Financial and economic analyses of subprojects -83- Swmfnary of enalysil Financial rates of return of the su1jrpjects (3-1) (F 8nd Ent) In thou. Won Initial R before f1ntesd ER before Financing Subprojects Scale&typs of famn Year invetment finaing u t flnancing terms . aeils.Io . ra. I _l pe1 Greenhouse O Floor Spam : 1Qoc (990me) O style : Arch tyye, single span O Materials : -ron-frmsm Grc eri- O Construction style : Od - Movable-.systes in single (GP) lyr crqpping pattern. Ropa)¶lmet A. Single -Fixed system in double periodl (aP) cropping patt- cropping pattern. ern 5yrs cucumber Forcing cultivition 15 5,587 39% 3,200 33% Semi forcing cultivation 4,500 14% 2.500 12% Green pepper Forcing cultivation U 6,147 over50% 3.600 50% Rateral cultivation. 4,449 w 2,400 a Treeto Forcing cultivation 5,425 48% 3,000 42% Sei forcing cultivation 4,525 29% 2,500 26% Strawberry F?rcing cultivation 5,856 291 3,500 22% Seni forcing cultivation a 5,061 17% 3,000 13% Punpkin Forcing cultivation a 4,905 9B 2,800 6% Semi forcing cultivation U 4,140 15SI 2,300 13% Oriental Semi forcing cultivation a 4,141 50% 2,300 50% melon Prature cultivation * 4,141 12% 2,300 10% termelon Semi forcing cultivation 4,434 50% 2,500 over50% Premature cultivation " 4,434 50% 2,500 a Chrysanthaum Light cultu-e 12,819 39% 7,800 34% B. Double crop ping pattern cucumber- Rateral cultivation reen pePer Forcing cultivation 15 7,699 over50O 2,700 over50% )riental melon Sai forcing cultivation1 " 6,481 over5o% 2,500 atezmelon '-cing cultivation =curber - Rateral cultivation riental melon semi forcing cultivation1 6,046 ovetS08 2,700 .unpkin- Rateral cultivation reen pepper semi forcing cultivation'] 5,994 250 2,500 31 ,tluce- sami forcing cultivation ucumber b 5,793 16% 2,400 21% cwiber- forcing cultivation auuber Rateral cultivaticn 7,139 ov0% 3,300 over50 brysanthemum- Light ctltivation 1 rnto semi forcing cultivation 14,154 aver50% 7,600 oaerS)% -85- Simrwy of adlyuls (FM) ,(3-2) (UR) In thou. Wbm subproject scale&type'of farm Year Initial FMR bon financed ER before financing .__________________ inveskment financing atfm o t finwici n g terms Movable sprinkler Irrigation for GP :3yr. for vegetable Iha vegetable field 10 3,844 cverSO% 1,900 overSO% RP : 4yrs Fixed sprinkler Irrigation for Iha GP : 5yrs for apple orchard .apple ordaiad 15 4,765 over50% 2,900 over50% RP : 5yrs O Planting area:lOa 0 Cropping pattern: GP :2yrs Giuseng D-,nursery root se- 4 1,854 26% 870 26% RP :lyr, ttling in 2nd to be repayed period year once after 3yrs. O iron framed house: SOpyog oyster 0 Growing bed:70py 7 7,513 24% 4,400 22% GP : lyr. Mushroaa 0 Produce twice a RP : 5yrs year in a fermented straw. Oak 0 Number of logsused mushroon : 5,000logs O Time of spawn innoculation-.Mar 6 4,685 30% 3,200 28% GP : 2yrs O Producing period: RP : 3yrs 6yrs Deodug 0 planting area:lOa root O Root planting in 3 1,377 23% 900 20% GP : lyr the Spring RP : 2yrs O Planting area:l ha 0 Planting on existing upland Cmeeja O In yeat 6-7, new 7 8,249 21% 4,600 22% GP : 2yrs root sprouts are indu- RP : 3yrs ced by cutting old stems Kcokija OPlanting area:lha fruit 0 Plant on existing 7 8,857 41% 4,800 34%; GP : 2yrs upland RP : ayrs Beekeeping 0 Ntm6>er of honey- bee swarms:lOsrs 0 Utilize the tmuse labor in the farm 1C 1,465 34% 1,050 34%; GP., 2yr *hseuzhold RP : 3yrs -'16- suirary (FRR and ERR) of analysis (3-3) In t j. Won Initial FPR before financed E,R be_cre financing subproject Scale&typ of farm fear inveatment Financing amount financing terms Apple 0 Orchard area : Iha GP : 5yrs Orchard 0 Variety:Dwarf stock; RP : 4yrs Fuji 0 Reclainmd form: 0 6,931 381 4,100 39% riverside land Pear 0 Orchard area : lha Orchard 0 Variety : singc GP : 6yrs 0 Reclaimed form: , 4,541 19% 2,500 20% RP : 4yrs slope land reclamation Peach 0 0 :Iha Orchard 0 V : saikdo p : 5yrs O R :slope land 4.510 ,30% 2,400 30% Rp : 4yrs reclamation Grape 0 0 : lha Orchard 0 V : canipbell Early 7,060 18% 4,300 18% GP : 4yrs 0 R : slope land BP : 4yrs reclameation Sweet 0O :lha persiluon 0 V :euyou 4,530 26% 2,500 26% CP : 6yrs Orchard 0 R : slope land reclamation Pp : 4yrs plum 0 0 : lha Orchard 0 V :Baikgaha 0 R :slope 4.071 38% 2,200 38% GP : Syrs land reclamation RP * 4yrs Jujube 00 :Iha Orchard 0 V :Mudeung 0 R :slope 4,991 37% 2,900 36% GP : 5yrs land reclamation RP:4yrs 3n-farm 0 Floor area : 20pyong * 8,651 18% 5,200 17% GP : lyr. fruit 0 stored fruit Apple RP : 6yrs storehouse speed OFarm chemical spray- sprayer ing for 5ha apple (s.s) ,orchard 0 Capacity of speed sprayer 7 9,205 22% 8,400 14% GP : Oyr -Ezngine capacity;32HP RP : 7yrs -Discharg Volume 84 -el Power 0 MOwing out weeds on mower -3ha orchard . 0 Engine capacity : 3 1,048 29% 990 17% OP : Oyr 6.5HP RP : 3yrs -87- Financial and economic analyses of geenhouse projects -89- 1-1. Financid analysis of greenhouse Project crop : Cucumber (Foricng culture) In tilr. Iion Area : 10a Project year 1 2 3 4 5 6 7-10 11 12-14 15 Benefit O Sales 3,588 - - O Residual value 23 otal 3,588 - - - __ 3,611 Cost O Invesbnt4/Replacement costs - Iron frame 1,920 - P.S. film 277 - Heat insulation covers 306 - Heating facility 336 336 336 * - Electric heatbed 149 149 149 * - Sprayer 227 227 Sub-total 3,215 485 712 O Operating costs - -Manag~yent costs 2,080 2,459 - _____ - Smll tools 10 _ _ _ __ _ - - Repairs/Maintenance 132 _ _ _ - -4. Sub-total_ 2,222 2,601 0 oiportunity cost 150 - __ _ - . otal 5,587 2,751 - 3,236 I2751 3,463 2.751 > *Cash flow before financing (1,999 837 - 352 837 125 837 360 Financing 0 Loan receipt 3,200 0 Loan repayment - Principal 640 - Interest 256 256 205 154 102 51 *Cash flow after financing 945 (59 (8) 43 95 (339) 837 125 834 860 * F before financing: 39% 'ER : 33% -91- 1-2. Financid analysis of greenhusme Project Crop : Cucunber (Semi-forcing culture) Ilo tlou. 1on Area: lOa - - Project year Item___ _ 1 2 3 4 5 6 7-10 11 12-14 15 BenefLt- 0 Sales 2,378 -_ O Residual value 23 Total 2,378 _ .,401 Cost O Investnent/Replacemeut costs -Iron fraom 1,920 -P.8. fl!m 277 -Heat Insulation covers 306 -Electric heated 149 149 149 -Sprayer 227 227 Sub-total_ 2,879 … … …149 376 o operating costs -Management costs 1,346 1,725 _ -_ -small tools 10 _ -Repalro/Meintenance 115 _Sbb-total 1,471 1,850 _ _ _ _ _ _ O Opportunity cowt . 150 =__ Total 4.500 2.000 _ = 2.149 2.000 2.376 2Q000 ------ . Cash flow before financing 2,122) 378 __ 229 378 2 378 401 . FinancLng O iLan receipt 2,500 O Loan repayment. -Principal 500 - . -interest 200 200 160 120 80 40 . Casi flow after finncJing. 178 (322) (282) (242) (202) (311) 378 2 378 401 m FPR before financing: 14% eERR: 12% -92- 2-1. Flnancid analysis of greenhoe Project Crop: Green Pepper (Forcing culture) In thou. thn Area: 10a i. . Project year 1 2 3 4 5 6 7-10 11 12-14 15 Benefit O Sales 6,216 - O Residual value 23 lotal 6,216 _ __ _ =-i 6.239 Codt O Investme"t/Repla8ent ccsts 1,920 -Iron frau. A27 -P.E. film 306 -lleat Insulation covers 336 336 336 -Electric lteatbed 149 149 149 -Sprayer 227 227 Sub-total 3,215 485 712 O Operating costs -Management costs 2,640 3,019 _ . _ _ .-snall tools 10 _ -RepalruAirtenance 132 _ _ _- _ _Sub-total 2,782 3,161 O Cpportblity cost 150 _ _ | To.'.ai . ~ A42 ..,X~f - 6a147 3.311 3 .796 4L iD023 3.311 'Casi flow before financing 69 2,905 _ - 2,420 2,905 2,193 2,905 2,928 Financing o Loma recelpt 3,600 O Loan repey t -Principal 720 .-Interest 288 288 230 173 115 58 Cash flow after fiuancing 3,381 1,897 1,955 2,012 2,070 1,642 2,905 2,193 2,905 2,928 M3. before financing: over. 50% 'ERR: 50% -93- 2-2. FirairAd analysis of greenhouse Project Crop : Green Peper (cattrol culture) In thou. Ihn Area : 10a item- - -Piroject; year - -- . 2 3 4 5 6 7-10 11 12-14 15 enefit * 0 Sales 4,722 - _ - - o Residual valu. 23 Tbtal 4,722 . - -> 4,745 O Investmnwt/Replacement costs -Iroat fram 1,920 -P.E. film 277 -lleat Inuliation overs 306 -Electric heatbed 149 149 149 -Sprayer 227 227 8Su-total 2,87149 376 0 4perating costs -. anagaut costs 1,295 1,674 - | _ -Sna11 tools 10 ._- -RepairwMdilntenance 115 _. _ _ - -- |- - Sub-total 1,420 1,799 _ _ . o cVorttmity ost 150 - _ _ _ Total 4,449 1,949 - fi 2,098 1,949 2,325 1,949 s * cash f1w before financing 273 2,773 --4 2,624 2,773 2,397 2,773 2,796 . Flnanclng O loan receipt 2,400 O Leoa repayment. -Principal 480 . -interest 192 192 154 115 77 38 'Cah flow after finan¢cng 5,360 2,101 2,139 2,178 2,216 2,106 2,773 2,397 2,773 2,796 .R bsfDre £inafnwCg over* 50 'ERR : 50% -94- 3-1. Friancial anailys of greenhouse Project Crop : Ibato (Forcing culture) In tlKw. Ihn Area 10a Project year ltem- 2j 3 4 5'6 C -lo 12-14 15 _r --_I--- Benefit . . O Sales 3,536 - O Residual value . 23 ~tbta1 3,536 3. - - -,SS9 Cost O Investmenb/Replacement costs - Iron frame 1,920 - P.R. film 277 - Heat insulation'oers 306 - Heating facility 336 336 336 - Electric heatbed 149 149 149 j- Sprayer 227 227 Sub-total 3,215 485 712 0 Cperating costs *- Managenent costs 1,018 2,297 - - j Small tools 10 I - - Repairs/Maintenance 132 . - __= _ - Sub-total _ 2 O60 2,439 -… 0 Cpportunity cost 150 _-… T1otal 5,425 2,589 -4 3,074 2,589 3,301 2,589 *Cash flow before financing (1,889) 947 -i 462 947 235 947 970 Financing 0 Loan receipt 3,100 0 Loan repayment - Principal . 620 _ - Interest 248 248 198 149 99 50 'Cash flow after financing 963 79 129 .178 228 (208) 947 235 947 970 FRRbefore financing : 48% 'ERR : 42% -95- 3-2. F.dnclea analysis of greenhoute Project Crop : tmato (Seird-forcing culture) In thou. Ikn Area: 10a Project year 1 2 3 4 5 6 7-10 11 12-14 15 benefit 0 sales 2,602 O Residual value 23 Ibtal 2,602 _ - - - -_ 2,625 Cogt _. O InvestmentAteplacemmnt =csts -Iron frame 1,920 -P.6. film 277 -Ikat insulation covers 306 -Elwctclc lieatbed 149 149 149 -Sprayer 227 227 Sub-total 2,879 149 376 0 "perating costs -Nwagmment costs 1,371 1,750 _ . > -Shml tools 10 _ . _ .__ _ -___ -Repairs/Miiltenance 115 - 8ub-total 1,496 1,875 - _ _ _ 0 Opportunlty cost 150 - - _ . - Ibta 4,525 2,205 - - 2,174 2,025 2,401 2,025 Cash flow before financing 1,923) 577 - 428 577 201 577 600 Financlng 0 Loan receipt 2,500 0 Loan repaymeqt -Principal 500 . -Interest 200 200 160 120 80 40 'Cash flow after financing 3i7 (123 (83) (43 t3) (112) 577 201 577 600 * FRR before ftancing :9 a ERR: 26% -96- 4-1. FInancial. analysis of greenkouse Project Crop : Strawberry (Forcing culture) In thou. Hbn Area :10 Project year 1.em = 2 3 4 5 6 7-10 11 12-14 15 Benefit* 0 Sales 3,820 - - - _ - O Residual value 23 Tbtal 3,820 - -- _,843 Cost__ . 0 Investment/Replacemnt costs -Iron frame 1,920 -P.S. film 277 -Beat lnsulation covers 306 * -Electric heatbed 336 336 336 * -Sprayer * 227 227 Sub-total- 3,066 336 563 0 operating costs -Management costs 2,506 2,885 -Snall tools 10 __...… -Repairp/Mintenance 124 _ _ - - Sub-total 2,640 3,019_ … …_ ………_ _ 0 Opportunity cost 150 I - Total 5.856- 3.169 3,505 3,169 3,732 3,169 *Cash flow before finansLng (2,306 651 - - 315 651 88 651 674 Financinq 0 Loan recelpt 3,500 . 0 Loan repayment. -Principal 700 - - - -Interest 280 280 224 168 112 56 *Cash flow after financing 1,184 (329) (273) (217) 1161) 441 651 88 651 674 a Fm before financing 29% * ERR : 22% -97- 4-2. Financid alysis of greenhouse Project Crq): Strawberry (semi-forcing culture) In thou. ta,n '.'ea * 10a Project year Item - - - - - -1 - 1 2 3 4 5 6 7-10 11 12-14 15 Benefit O Sales 3,901 -_ 0 Residua value 23 Ital 3,091 - - _ - 3,114 cost 0 Investment/Asplacement costs - iron frame 1,920 - P.E. film 277 - neat insulation covers 306 - Sprayer 227 227 Sub-total _ 2,730 227 0 Cperating costs - Management costs 2,056 2,43 - 5_ - - Snll tools 1C - - - __ - -4. - Repairs/Aaintenafce 11 - Sub-total 2,18 2,560 . OCpportunity cost 15- _ __ _ ___ Ibtal 5,06] 2,71 - _0_ - 2,937 2,710 Cash flow before financing (1,970 38. - - - 154 381 404 Financing 0 Loan receipt 0 loan repayment 3,00 - Principal 6 - - - - interest 24 24 192 144. 96 48 Cash flow after financing " 1459 (411)1 (33) (315) (267) 381 154 381 404 • FRR before financing : 17% • ERR : 13% -98- S..J. Financia nalysls of greenhohse Project CrOp : Pumpkin (Foricng Culture) In t Ju. Iton Area : Oa Project year Item 1 2 3 4 5 6 7-10 11 12-14 15 8enefit O Sales 2,460 . . _ __ ___ 0 Residual value 23 lbtaJl 2,460 = __ 2,483 Cost O Investment/Replacement costs - Iron fraom 1,920 - P.E. film 227 - Heat insulation covers 306 - Heating facility 336 336 336 . - Electric heatbed 149 149 149 j - Sprayer 227 227 Sub-total O Operating costs - -4anagement costs 1,'398 1,777 _ _ - - * -Sall tools 10- __ - Repairs/Maintenance 132 - _____ - _____ = - - _ _ -Sub-total 1,540 1.919 ___ _ - __ 0 Opportunity cost _=_ . Total 4,905 2,069 -_ __ _ 2,554 2,069 2,0,781 9 *cash flow before financing (2,445 391 - -4 (94) 391 (321) 391 414 Financing 0 Loan receipt 2,800 O Loan repayment - Principal 560 . ) - Interest 224 224 175 134 90 45 *Cash flow after financing 13 (393) (348) (303) (259 (699. 391 (321) 391 414 * FRR before financing : 9% ' ERR : 6% -99- 5-2. Financile analysis of greenhotse Project Crqp : Pumpkin (Semi-forcing culture) In tlhou. IUon Area : lOa Project year item 1 2 3 4 5 6 7-10 11 12-14 15 Benefit o &dAes 2,031 O Residual value 23 lotal 2,031 - -_ 2,054 codt - 0 Investment/Replacement costs -Iron frame 1,920 -P.E. film 277 -lleat Insulation covers 306 . -Electric lteatbed 149 149 149 * -Sprayer 227 227 Sub-total 2,879 _149 _ .376 _ _ o Operating costs -Maiagement ,oats 986 1,365 __ -SMall tools 10 -itepairs/MaIintenance 115 . _ _ _ ____ __ _____ Sub-total 1,111 1,490 - _ O 0 OpCotunity cost 150 - - _____ __ _ _ _ _ Total 4,140 1,640 _ 1,789 1,640 2,016 1,640 __ Cansl, flow before financing (2,109 391 > 242 391 15 391 414 Fln,acinq O Loan receipt 2,300 0 Loan repayment -Principal* 460 - . -interest 184 184 147 110 74 37 *Cash flow after financing 7 (253) (216) (170J) (143) (225) 391 15 391 414 ° FRR before financing 15% ERR : 13% -100- 6-1. Financ1dl analysis of greenhouse Project Crop: Oriental Melon (Semi-forcing culture) In thou. Iton Area: 10a Project year 1 2 3 4 5 6 7-10 11 12-14 15 Benefit 0 Sales 2,7ft - . - - 0 Residual Vialue 23 Total 2,798 - - 2,82.1 Coat 0 InvestnentJ>plaaoment costs -iron frams 1,920 -P.6. film 277 -Hteat Insulation covers 306 -Electric lteatbed 149 149 149 -Sprayer 227 227 Sub-total 2,879 149 _ 376 _ _ _ - 0 Operating costs -Management costs 987 1,366 _ _ _ - -Small tools 10 _ _ _ _ -Repairsldifntenance 115 - -- -|- Bub-total 1,112 1,491 - - - - - - - - 0 tpportrllty cost 150 - Total 4,141 1,641 1,790 1,641 2,017 1,641 *Cash flow before financing t1,343 1,157 - 1,008 1,157 781 1,157 1,180 Financing 0 Loan receipt 2,300 O loan repaymuent -Principal 460 -interest 184 184 147 110 74 37 jCash flaw aeter financing 773 513 550 587 623 660 1,157 781 1,157 1,180 a 1M before financing ovek 50% 0 ERR: 50% -1OI- 6-2. Financil. analysis of greenhouse Project Ctp: oriental Melon (Pre-mature culture) In thlou. lAn Area: lOa Project year Iten - - |~~ .1 2 3 4 5 6 7-10 11 12-14 15 Benefit O Sales .1,985 - - -_- O Residual value 23 Tbtal 1,985… 2,008 -i .… codt< 0 lnvestment/Replacement costs -Iron fra.e 1,920 -P.E. flmi 277 -i1eat Insulation covers 306 -Electric kneatbed 149 149 149 -sprayer 227 227 Sub-total 2,879_ 149 376 0 operating costs -Management costs 987 1,366 . - s -Seall tools 10 - ___ -Repalr/MNlfntenance 116 _ _… … … … … …_ Sub-total 1,-112 1,491 - _____ - - 0 oppoertunity cost . 50 Total 4,141 1,641 _ * 1,790 1,641 2,017 1,641 *Cash flow before financing 2,156) 344 _ - 195 344 (32) 344 367 Flnanc.ng O Loan receipt 2,300 O Loan repayment. -Ptincipal 460 - - - -Interest 184 184 147 110 74 37 .Cash flw after fin_cing (40) (300) (263) (226) (190) (302) 344 (32) 344 367 -- - F MRR before finong : i2%- *ERR : 10% -102- / 7-1. Financid pnalysle of greenhouse Project Crop : watermelon (Seni-forin9 culture) In thou. Von Area: lOa Project year - - 1 2 3 4 5 6 7-10 11 12-14 15 Benefit 0 Sales 4,750 _ -… 0 Residual value 23 TUtal 4,750… 4,773 Codt* 0 Investment/Replacement costs -Iron frame 1,920 -P.E. fl1r 277 -Ieat Insulation covers 306 -Electric lhtatbed '149 149 149 -Sprayer 227 227 Sub-total 2,879 _ _ _ _ _ _ _ _ _ _149 _ 376 _ _ __ 0 c"eratlng costs -4anagenent costs 1,280 1,659 _- __ - - -Suall tools 10 _ _ - -Repalra/me lotednance 115 - - - ____ - _ - Subv-tota1 1,405 1,784 -_ _ _ _- __ __ __ _ __ _ _ 0 Opportunity cost 150 - - Total 4,434 1,934 2.083 1.934 2.310 1.934 eCasI flow before financing 316 2,816 - 2,667 2,816 2,440 2,816 2,839 FiaatcLng 0 Loan receipt 2,500 0 Lant repsyment. -Principal. 500 - _ - -Interest 200 200 160 120 80 40 Casbh flow after financing 2,616 2,116 2,156 2,196 2,236 2,127 2,816 2,440 2,816 2,839 a Enn before financing oer 50% * ERR : 50% -103- 7-2. FinancIl analysls of green _s Project Crop : Water melon (Pre-mature culture) in thiu. tion Area : lOa Project year 1 2 3 4 5 6 7-10 11 12-14 15 Benefit 0 Sales 3,420 - -_ _ 0 Residual value 23 1otal 3,420 - - = - ____ 3-443 . Codt O Investment/ieplacement costs -Iron fraom 1,920 -P.E. filM 277 -tleat Insulation covers 306 -Electric lieatbed 149 149 149 -sprayer 227 227 Sub-total_ 2,879 _149 __376 _ o operating costs -Management costs 1,280 1,659 * -Small tools 10 - ____ -Repairos/WIntenance 115 - . _ - _ Sub-total_ 1,405 1,784 -_____ _ ___ _Y _ --- 7- 0 cpportwidty cost 150 --- _ . = Total 4,434 1,934 - 2.083 1.934 2. 1 .934 - eCnsii flow before financintg (1,014 1,486 _ 1,337 1,486 ,110 ,486 ,509 flnanicinq 0 Lia% recelpt 2,500 0 Loan repayseit. -Principal 500 - - * -interest 200 200 160 120 80 60 oCast flow after financing 1,286 786 826 866 906 926 1,486 1,110 ,486 ,509 • FM before financing 'over .50% ° ERR : 50% -104- a. Pinancid apalysis of greenhouse Project Crop : ChrysanthemuLs (Light culture) ln thou. Ilon Area : lOa items r roject ya 1 2 3 4 5 6 j 7-) 11 12-14 15 _ _ _ _ _ - _ _ - - - -_ -_ Benefit O Sales 7,989 - _ -4 O Residual value 416 Total 7,989 - . 8,405 Cost 0 Investment/Replacement costs -Iron frame 1,833 -P.E. film 192 -: insulation coiars 1,027 -irrigation facility. 241 48 241 -Heating facility 3,150 3,150 -Ventilating facility 540 540 -Sprayer 227 227 Sub-total . 71 _ ……_ 4,158 0 Operating costs -Management costs 5,139 5,536 .-.. --_--_- -Smell tools 20…- -Repairs/Maintenance 300 - - Sui_-total _5,459 5,856 - __ __ - __ __ - 0 Opportunity cost 150 - - _ = Tbtal 12,819 6,006 _ - -4 6,054 6,006 10,164 6,006 ___ *Cash flow befor financing 4,830) 1,983 - - 1,935 1,983 (2,i75 1,983 2,399 Financing 0 Loan receipt 7,800 0 Loan repayment -Principal 1,560 -Interest 624 624 499 374 250 125 *Cash flow after financing 2,346 9201 (76) 49 173 25 1,983 (2,175 1,983 2,399 *MF before financing : over 39% EERR : 34% -105- 9. Financiel Enulysis of gteenhouse Project CrOp : cucumber- Green Pepper In tlhou. Ihn Asea : 10a~ Project year 1 2 3 4 5 6 7-10 11 12-14 15 Benefit O Sales .- st crop : Cucumber 1,860 ___ .-.-_- - - 2nd crop : Green pepper 6,216 - . -___- 0 Residual value 23 Tttal 8. 0 ---- ---48,0998,076 _ 8,0 Cost 0 InvestmentiRepla8ement costs - iron frame 1,920 - P.E. film 333 - Heat insulation covers 306 - Heating facility 336 336 336 - Electric heatbed 149 149 149 - Sprayer 227 227 Sub-tota1 _ 3,271 _485 _712 0 Operating costs - Management costs 3,966 4,744 . - _. - _ - • Cucumber 1,346 1,725 - . _ - • Green pepper 2,640 3,019 .- - sall tools 10 -. - Repairs/Maintenance 1,2 _ - - _____ . - _ -Sub-total 4,128 4,-86 _ _ ___ O opportunity cost 300 -| - - T0tal 7,699 5,186 - _ _ _ _ _ -5,t;71 5,186 5,898 5,186 *Cash flow before financing 377 2,890 -* 2,405 2,890 2,178 2,890 2,913 Financing 0 Loan receipt 2,700 O Loan repayment - principal 540 - - - - Interest 216 216 173 130 86 43 *Cash flow after financing 2,861 2,134 2,177 2,220 2,264 2,307 2,890 2,178 2,890 2,913 * FRR before financing * oer 501 * ERR : 50% -106- 10. Financit analysis of greenhouse Project Cr4 : Oriental Melon-Watermelon lu thou. 1km Area : .la item Project year Iten e 2 3 4 5 6 7-10 11 112-14 15 . Beefit o Waes - Ist crop :Oriental Melon 2,090 - .. _ - _ _ -_ - 2nd crop :watemelon 5,678 - - . - -____- O Residual value 23 Tbtal 7,768 - . - 7,791 Cost O Invesbuent/Replacement costs - Iron frame 1,920 - P.E. film 333 - Heat insulation covers 306 - Heating facility 336 336 336 - Electric heatbed 149 149 149 - Sprayer 227 227 Sub-total 3,27. - _ -71 _ * O.Cperating costs - _aagement costs 2,768 3,526 . _ _ _ _ - • Oriental Melon .987 1,366 _ _ . _ - __ * Watermelon 1,781 2,160 . -4 - small tools 10 - _- ----------_ ____ - Repairs/Maintenance 132 - - -. _Sub-_otal _ -2,71 V3,C68- - - - - - - O Qpportunity cost 300 _ - Ibtal 6,481 3,968 - - 4,453 3,968 4,680 3;968 *Cash tlow before financing 1,287 3,800 3,315 3,800 3,080 3,800 3,823 Financing 0 Loan receipt 2,500 0 Loan repayment - Principal 500 - Interest 200 200 160 120 80 40 'Cash flow after finarcing 3,587 3,100 3,140 3,180 3,220 3,260 3,800 3,080 3,800 3,823 M FR before financing : over 50% *ERR : 50% -107- 11. Financial.analysis of greenrioise Project Crop Cucuber-Oriental melon In tiou. two Area 10a item ~ -Project year - - 1 2 3 4 5 6 7-10 11 12-14 15 Benlefit 0 Sales - 1st crCp cucunber 3,515 - 2nd crop: Oriental melon 2,730 O Residual value 23 Total 6,245 - 6,268 cost 0 Investnent/Replace_unt costs - Iron frame 1,920 - P.E. film 333 - Heat insulation covers 306 - Electric heatbed 149 149 149 - Sprayer 227 227 Sub-total _ 1, 35 _ 149 376 0 Cperating costs - Management costs 2,333 3,091 * Cucumber 1,346 1,725 __> o Oriental melon .987 1,366 - Snall tools *10 _____ - - RepairsJMaintenance 132 Su_total 2 475 3,233 _ 0 Cpportunity cost 300 = ___ Total 5, 3,o _533 . - 3,682 3,533 3,909 3,533 - *Cash flow before financing 535 2,712 - 2,563 2,712 2,336 2,712 2,735 Financing 0 Loan receipt 2,7Q0 0 Loan repaymnt - Principal 540 - Interest 216 216 173 130 8 43 *Cash flow after financing 2,683 1,956 1,999 2,042 2,08 1,980 2,712 2,336 2,712 2,735 *FRR before financing : over 509 ERR: 50% -108- 12i Financle analysis of greendouse Project Crop : Pumpkin-Greenpepper In thou. SWon Area : lOa Project year 1 2 3 4 5 6 7-10 11 12-14 15 Benefit 0 Sales - 1st crop : Pumpkin 1,602 - _ - - 2nd crqp: Green pepper 2,428 - - - O Residual value 23 Ibtal 4,030 - _ 4,053 cost O Investment/Replacemement costs - Iron frame 1,920 - P.E. film 333 - Heat insulation covers 306 - Electric heatbed 149 149 149 - Sprayer 227 227 Sub tal_' i__. _ 149 __ _3f 0 operating costs - Management costs 2,281 3,039 - _ _ > oPumpkin 986 1,365 - _ ___ a Green Pepper 1-,295 1,674 - Swall tools -10 _ __ _ __ - Repairs/Maintenance 132 _ -----_ Sub-total 2,423 3,181 . . ____ 0 Cpportunity cost 300 - _ . . ___ Total 5,658 3,481 _ 3,630 3,481 3,857 3,481 - *cash flow before financing (1,6.8* .549 - . -* 400 549 173 54( 572 Financing 0 Loan receipt 2,500 0 Loan repayment - Principal so5 - Interest 200 200 160 120 80 40 *Cash flow after financing 336 (151 (111) (71) (31) (140 549 173 400 572 °ERR before financing: 37 I ERR : 31% -109- 13. Financild analysis of greenilouse Project Clop Lettuce-Cucurber Ino tIi. Itl Arca lOa it. -Project year 1 2 3 4 5 6 7-10 11 12-14 15 Benef it 0 Sales -1st crop : Lettuce 1,265 - ___ -2nd crop : Cucuber 2,455 - - _ - OfResidual value - - _ _ 23 Total ,720 . - - 3,743 cost o inivestmeent/Replacenft costs -iron frame 1,920 -P.E. film 333 -nleat insulation covers 306 -Bleating facility 149 149 149 -Electcic heatbed 227 227 Sub-total 2435 _ _ _ _ _ 149 376_ _ _ _ U OCerating costs -Management costs 2,080 2,838 - _ _ _ -_____ *Lettuce 734 1,113 - _____ _____ - *Cucunmbcr 1,346 1,725 _ - -Small tools 10 _ _ _ _____ -Repaics/Maintenance 132 - _ - - . -_-_- . _ Sub-total_ 2,222 -2,9860 _ --_ ___- 0 Opportunity cost 300 _ _ - - Tbtal tsfiSq 3.280 34 3,280 3,656 3280 *Cash flow before financing 1,'13) 440 291 440 64 440 463 Finmacing O Loan receipt 2,400 0 Loan repayment -Principal 480 - - -Interest 192 192 154 115 77 38 *Cash flow after financing 135 (232) (194) (155) (117) (78) 440 64 440 463 * FRR before financing :18% * ERR: 21% -110- 14. Financial analysis of greenhruse Project Crop: Cucumber-Cuciuber DI thou. lon Area : lOa It-m Project year 1 2 3 4 5 6 7-10 11 12-14 15 Benefit 0 Sales - 1st crop: ecucumber 3,588 - *-.2nd crop Cucumiber 2,018 _ 0 Residual value 23 Total 5,606 … 5,629 Cost O Investment/Replacement costs - Iron frame 1,920 - P.R. film 333 - Heat insulation covers 306 - Heating facility 336 336 336 - Electric heatbed 149 149 149 - Sprayer *227 227 sub-total 3,271 -48 712 0 Cperating costs - Muisnaement costs 3,426 4,184 * Cucuaber 2,080 2,459… * Cucumber 1,346 1,725… - small tools 10 - - - Repairs/Maintenance 132 _ _ Sub-tota -3,6 2 __ _ O Cpportunity cost 300 - - Total 7,139 4,.626 _ 5,111 4,626 5,338 4;626 -+ cash flow before financing (1,533 980 - 495 980 268 980 1,003 Financingr 0 Loan receipt 3,300 0 Loan repayment - Principal 660 - - - - Interest 264 264 211 158 106 53 cash flow after financing 1,503 56 109 162 214 (218) 980 268 980 1,003 * ERR before financing: over 50% * ERR: 50% -111- 15. Financial analysis of greenhlouse Project CrOp Chrysanthemum-5tanto lII thlou. tioii Area 10a -I-e- Project year I 2 3 4 5 6 7-10 11 12-14 15 Benefit 0 Sales -1st Crop : Chrysanthfrtum 7,989 - _ _ - - - -2nd Crop : Tcmato 2,258 - - - - 0 Residual value |416 Total 10.247 - - - - - 10,663 Cost 0 Investment/Replacement osts -Iron frame 1,920 -P.E. film 469 -$eat insulation covers 306 -Irrigation facility 3,150 3,150 -Heating facility 241 48 241 -Ventilating facility 149 149 149 -Electric heatbea 540 540 -Sprayer 227 227 _ _ Sub-total 7,002 _ _ _ 197 4,307 0 operating costs -Management costs 6,510 7,286 - _ - *Chrysanthemum 5,139- 5,536 - - .Tomato 1,371 1,750 _ - _ -____ -Small tools 30 - _ _ -Repairs/Maintenance .12 - - - - - SZb-t;t_l 6,852 7,628 _ _ _ - 0Copportunity cost 300 _ =---> Total 14.154 -,928 8.1257 7L9 Zflfl 23 4L * Cash flow before financing (3,907) 2,319 -i 2,122 2,319 1,988) 2,319 2,735 Financing 0 Loan receipt 7,600 0 Loan repayment -Principal 1,520 - - -Interest 608 608 486 365 243 122 *Cash flow after financing 3,085 191 313 434 566 677 2,139 (1,988) 2,319 2,735 4 FRR before financing : over 50% *ERR : 50% -112- 16. Financial aralysis of greenhouse Project Additional Facilities : Cucumber-Green Pepper Area : lOa In thou. Wbn Project year item 1 2 3 4 5 6 7-10 Benefit Sales A. With Project 10,018 10,930 - __ _ -Cucunber 2,305 2,515 -Green Pepper 7,713 8,415 B. Without Project 8,656 - -Cucunber 1,984 - -Green Pepper 6,672 (A-B) I4et incremental benefit 1,362 2,274 Costs O Investment/Replacement costs -Irrigation facility 1,134 284 -Ventilating facility 540 -Heating facility 450 450 ~Sub-total 2,124 734 O operating costs A. With Project 2,496 -Labor 1,340 -Fuel 1,156 B. Without Project 1,848 . -Labor 1,763 -Fuel 85 IA-B) Incremental Operating costs 648 0 Repairs/Maintenance costs A. With Project 327 B. Without Project 221 (A-BF Incremental R/M costs 06 Tbtal incremental costs 2,878 754 _ 1,488 754 * Total incremental benefit before (1,516) 1,520 - > 786 1,520 financing Financing 0O Lan receipt 1,400 0 Loan repayment -Principal 280 - -Interest 112 112 90 67 45 23 * Total incremental benefit after (228) 1,128 1,150 1,173 1,195 483 1,520 financing v ERR before financing 26% * ERR : 50% -113- Financial and economic analyses of orchard development I i 1 ~~~~~~~~~~~~-1 15 17. Financial analysis of apple orchard *evelopment Variety Dwarfstock:Fuji In thou. Wbn Area lha Project year lteml 1 2 3 4 5 6 7 8 9 10 Benefit 0 Sale of apple 1,530 4,590 11,030 16,550 21,45 24,520 27,580 0 Intercropping 800 690 570 Total 800 690 570 1,530 4,590 11,030 16,550 21,450 24,520 27,580 Cost 0 Investment/Replacement costs 5,143 106 186 37 472 - Saplings & Planting 1,318 106 - Reclamation 2,560 - Power sprayer 524 472 - Mixing tank 70 7 - Fence 371 186 - Well 300 3 0 Management costs 1,788 3,669 1,627 5,355 2,017 7,018 4,221 4,974 5,452 5,779 - Fertilizer 179 338 63 488 113 588 362 500 533 555 - Agro-chemicals 53 53 96 139 236 332 471 536 611 696 - Box 70 200 470 710 930 1,060 1,180 - Wages 1,040 2,870 1,090 4,320 1,320 5,470 2,510 2,840 3,080 3,180 - Fuel 40 50 60 70 80 90 100 _ - Maintenance 26 - - _ _ - - - Small tools 110 42 - - - _ - Intercroping 340 290 250 Total 6,931 3,775 1,627 5,155 2,017 7,204 4,258 4,974 5,924 5,799 *Cash flow before financing (6,131) 3,085) (1,057 (3,625) 2,573 3,826 12,292 16,476 18,596 21,801 Financing 0 Loan receipt 4,100 0 Loan repayment - Principal 1,030 1,030 1,020 1,020 - Interest 328 - 246 163 82 *Cash flow after financing (2,359) 3,413) (1,385 (3,953) 2,245 2,468 11,016 15,293 17,494 21,801 • ERR before financing : 38% • ERR : 39% -117- 17. Fbiancial analyn41j; of apple orchard develpiment Variety Dwarfstock:Fuji Area Ilia In thou. Who Project year Itom - - 11 12 13 14 15 16 17 18 19 20 Benefit O Sale of 4pple 27,580 - - -p 24,520 1.450 16,550 12,870 9,800 0 Intercropping Total 27,580 - - - -. 24,520 21,450 16,550 12,870 9,800 Cost O Investmcnt/Replacement costs 186 3 658 37 - Saplings & Planting -.Reclamation - Power sprayer 472 - Mixing tank 7 - Fence 186 186 - Well 3 30 0 Management costs 5,791 _ 5,176 4,832 4,546 4,136 3,910 - Fertilizer 556 _ 431 397 361 338 325 - Agro-chemicals 707 - . _ - - Box 1,180 - - 1,060 930 710 560 430 - Wages 3,180 - - -i 2,810 2,630 2,600 2,390 2,280 - Fuel 100 - Maintenance 26 _ - -Snall tools 42 -_ __6___ - lntercropping Total 5,977 5,791 5,82 5,791 5,791 5,834 4,832 4,546 4,200 3,900 Cash flow before financing 21,603 21,789. 21,75 21,789 21,789 18,686 16,618 12,004 8,670 5,890 Financing 0 Loan receipt 0 Loan repaynent - Princpalra- - Interest *Cash flow after financing 21,603 21,789 21,75: 21,789 21,789 18,686 16,618 12,004 8,670 5,890 * FRR before finuncing : 38% -118- 18. Financial analysis of pear orchard development Variety : Singo Area : lha In thou. Won Project year Item 1 2 3 4 5 6 7 8 9 10 Benef it 0 Sale of Pear 1,140 2,130 3,790 5,210 6,630 8,060 0 Intercropping 800 690 570 460 Total 800 690 570 460 1,140 2,130 3,790 5,210 6,630 8,060 Cost 0 Investment/Replacement costs 2,875 50 186 37 472 - Saplings & Planting 630 50 - Reclamation 980 - Power sprayer 524 472 - Mixing tank 70 7 - Fence 37 186 - Well 300 30 0 Management costs 1,666 1,310 1,556 1.826 2,156 2,565 3,371 3,963 4,718 5,328 - Fertilizer 119 121 126 186 194 213 237 255 327 354 - Agro-chemicals 21 21 32 42 54 64 96 150 193 246 - Box 60 120 200 270 350 420 - Wages 1,010 770 1,040 1,280 1,730 2,040 2,710 3,160 3,710 4,160 - Fuel 40 40 40 50 50 60 60 60 70 80 - Maintenance 26 _…_…_… … - Smal tools 110 42 - Intercropping 340 290 200 Total 4,541 1,360 1,556 12 25 2,751 3T,408 3,963 5,190 5,328 Cash flow before financing 3,741) (670) (986)(1,366)(1,016) (621) 382 1,247 1,440 2,732 Financing 0 Loan receipt 2,500 0 Loan repayment - Principal 630 630 620 620 - Interest 200 - . - ------- 150 99 50 Cash flow after financing (1,440 (870) (1,186) 1,566) 1,216) (821) (448) 467 721 2,062 a FRR before financing : 19% * ERR : 20% -119- 18. Financial analysis Of pear orchard development Variety : Singo! Area : lha In thou. Wbn Project yearl Item _~~~1 12 13 14 15 16 17 is 19 20l Benefit O Sale of pear 9,480 )0,900 12,320 13,270 14,220 15,160 16,110 17,060 17,060 17,060 O Intercrcpping Tbtal 9,480 10,900 12,320 13,270 14,220 15,160 16,110 17,060 17,060 17,060 C_ost -___ O Invesbment/Replacement costs 186 37 658 37 - Saplings & Planting - Reclamstion - Pcw^r sprayer 472 - Mixing tank 7 7 - Fence 186 186 - Well 30 30 O Management costs 6,021 6,629 7,207 7,555 7,911 8,144 8,451 8,708 8,708 8,708 - Fertilizer 373 308 423 467 483 496 513 550 550 550 - Agro-chemicals 300 343 396 430 - -I_ - BOX 500 570 640 690 770 790 870 890 890 89n - Wages 4,700 5,160 5,600 5,820 S,080 6,280 6,490 6,690 6,690 6,690 -Fuel 80 _____ -Maintenance 26 _|.___ -Small tools 42 _ _ ___ -Intercropping..__ Iotal 6,207 6,629 7,2441 7,555 7,911 8,802 8,451 8,708 8,745 8,708 *Cash flow before financing 3,459 4,271 5.076 5,715 6,309 6,358 7,659 0,352 8,315 8,352 Financing O Loan receipt O Loan repayment - Principal °Cash flow after financing 3,549 4,271 5,07615,715 16,3091 6,358 7,6591 8,352 8,315 8,352 § ERR before financing : 198 r -130-~~~~~~~~~~~~~~~~~~~~~~~~ 19. Financial analydis of peach orchard development Variety : Baikdo Aea In thou. Won Project year 1 2 3 4 5 6 7 8 9 10 Benefit O Sale of peach 1,550 4,150 5,700 7,780 8,820 9,860 10,900 O Intercropping 800 690 570 Total 800 690 570 1,550 4,150 5,700 7,780 8,820 9,860 10,900 Cost O investment/Peplacement costs 2,775 46 186 37 472 - Saplings & Planting 530 46 - Reclamation 980 - Power sprayer 524 472 - Mixing tank 70 7 - Fence 371 186 - Well 300 30 0 Hanagsmest costs 1,735 1,362 1,747 1,986 2,854 3,283 4,026 4,424 4,855 5,063 - Fertilizer 119 124 139 198 216 225 238 306 327 345 - Agro-dhemicals 20 30 50 100 150. 200 240 290 340 390 - Box 70 190 260 360 410 460 500 - Wages 1,080 810 1,200 1,500 2,180 2,480 3,060 3,290 3,600 3,690 - Fuel 40 40 40 50 50 50 60 60 60 70 - Maintenance 26 - ____- - Snell tools 110 42 - - __> - Intercrqpping 340 290 250 Total 4,510 1,408 1,747 1,986 4,854 3,469 4,063 4,424 5,327 5,063 OCash flow before financing 13,710) (718) (1,177) (463) 1,296 2,231 3,717 4,396 4,553 5,637 Financing O loan receipt 2,400 O Loan repayment - Principal 600 - - - Interest 192 - ____ 144 96 48 4Cash flcm after finaxncng 1.5Q2) (910) (1,369) (628) 1,104 1,439 2,973 3,700 3,885 5,837 * MR before financing : 304 • ERR 30% -121- 19. Financial analysis of peach orchard developwent Variety : Baikdo Area : lha In thou. Won Project year 11 12 13 14 15 16 17 18 19 20 Benefit 0 Sale of peach 10,900. 10,900 10,900 10,380 9,340 8,820 8,300 7,780 6,740 5.710 O Intercroping Total 10,900 10,900 10,900 1C,380 9,340 8,820 8,300 7,780 6,740 5,710 Cosl: 0 lnvestmnt/*A lpacsment costs 186 37 658 37 - Saplings & Planting -. ReclatTation - Power sprayer 472 - lixing tank 7 - Fence 186 186 - Well 3 30 0 Management costs 5,065 5,065 5,06 4,985 4,795 4,705 4,605 4,525 4,355 4,355 -Fertilizer 347 - _- - - Agro-chemicals 390 - . - - Box 500 500 500 480 430 410 380 360 310 310 - Wages 3,690 3,690 3,690 3,630 3,490 3,420 3,350 3,290 3,170 3,170 -Fuel 70 - - - - Maintenwnce 26 _ - . ____- - Snall tools 42 _ - - - - Intercropping Total 5,251 5,065 5,104 4,985 4,795 5,363 4,605 4,525 4,392 4,355 *Cash flow before fInancing 5,649 5,835 5,79 5,395 4,545 3,457 3,695 3,255 2,348 1,355 Financing O Loan receipt O Loan repayment - Principa - Interest *Cash flow after financing 5,649 5,835 5,795 5,39 4,545 3,457 3,695 3,255 2,348 1,355 * m before financing : 30% -122- 20. Financial analysis of grape orchard developirent Variety Campbell E~arly Area lha In thou. Won Project year Item Benefit I0 Sale of grape 2,330 3,720 5,590 7,450 8,380 9,780 10,710 I0 intercropping 0 69 57 Total 800 .690 570 2,330 3,720 5,590 7,450 8,380 9,780 10,710 Cos-t 0 Investment/Replacement costs 5,479 87 576 37 472 - Saplings & Planting 1,000 87 - Reclamation 980 - Power sprayer 524 472 - M4ixing tank 7~ 8 - Fence 300* 30 I ran supportors 2.4da4 404 0 Management costs 1,581 2,043 2,584 2,982 3,462 4, 130 4,855 5,085 5,415 5,618 -Fertilizer 105 195 256 304 324 402 417 417 417 420 -Agro-chemicals 50 50 90 130 190 280 340 -- -Box 180 290 440 590 660 770 850 -Wages 920 1,410 '1,890 2,260 2,540 2,900 3,390 3,550 3,770 3,880 -ZUel 30 30 30 40 40 40 50 50 50 60 - Z4ainltenafl-e 26 ---- -Small tools 110 42 - - - - - -- -Intercropping 340 290 250--- - Total 7,060 2,130 2,584 2,982 13,452 4,706 4,892 5,085 5,887 5,618 *~Cash flow before financing (6,260) (1,440 (2,014) (652) 268 884 2,558 3,295 3,893 5,092 Financing I0 Loan receipt 4,300 0 Loan repayment - Principal 1,080 1,080 1,070 1,070 - Interest 344 - - 0* 258 171 86 *Cah flow after financing 2,304) (1,784 (2,358) (966)(1,156) (454) 1,317 2,139 3,893 5,092 * FRR before fir.ancing : 18% * ERR :18% -123- 20. Financial analysis of grape orchard development Variety : Campbell Early Ar-ea : Iha In thou. Won Project year 11 12 13 14 15 16 17 18 19 20 Banefit 0 Sale of grape 10,710 - 9,780 9,320 8,850 7,920 5,590 0 Intercropping Total 10,710 9,780 9,320 8,850 7.920 5,590 | OIr.vestment/Replacement costs 576 37 1,062 37 - Saplings & Planting - Reclamation - Power sprayer 472 - Mixing tank 18 7 186 7 -Fence 1 -Well 40i30 404 |-Iron supportors4044 O -rnagement costs 5,620 - 5,470 5,400 5,330 5,220 5,030 -Fertilizer 422 - Agro-chericals 340 - - Box 850 - 770 740 700 630 440 - W,Iages 3,880 > 3,810 3,770 3,740 3,700 3,700 - ruel 60 _ - Mintenance 26 . _ _ _ - Smnall tools 42 - Intercropping Total 6,196 5,620 5,657 5,620 5,620 6,532 5,400 5,330 5,257 5,030 'Cash flow before financing 4,514 5,090 5,053 5,090 5,090 3,248 3,920 3,520 2.663 560 2inancing 0 Loan receipt IVO Loan repayment - Principal - Interest *Cash flow after financing j 4,514 5,090 5,053 5,090 5,090 3,248 3,920 3,520 2,663 560 * FRmR bfore financing : 18% -124- 21. Financial analysis of sw-eet perslmuon orchard development Variety : Buyou In t Won Area : lha In_thou._Won | - - - Proj-zt year Item i 2 3 4 5 6 7 8 9 10 Benefit O Sale oi sweet persiummn 990 2,480 4,140 6,620 8,280 O Intercrcpping 800 690 570 460 350 Total 800 690 570 460 350 990 2,480 4,140 6,620 8,280 Cost 0 Investnent/Replacement costs 2,905 54 186 37 472 - Saplings & Planting 660 54 - Reclamation 980 - Ptwer sprayer 524 472 - Mixing tank 70 7 - Fence 371 186 - Well 300 30 O Management costs 1,625 1,368 1,552 1,557 1,903 1,874 2,159 2,391 2,807 3,010 - Fertilizer 119 174 174 179 215 226 271 284 319 322 - Agro-chemicals 20 20 30 30 3C 40 50 79 90 110 - Box 30 70 120 190 240 - Wages 990 790 1,010 1,050 1,410 1,480 1,660 1,800 2,100 ,230 - Fuel 20 20 20 30 30 30 40 40 40 40 - Maintenance 26 _ _ - - Snall tools 100 42 _ - _ -4 - Intercropping 340 290 250 200 150 Total 4,530 1,422 1,552 1,557 1,903 2,060 2,196 2,391 3,279 3T O1lJ 'Cash flow before financing (3,730 (732) (982) (1,097, (1,553)(1,070) 284 1,749 3,341 ,270 Financing O Loan receipt 2,500 0 Loan repayment - Principal 630 630 620 620 - Interest 200 - 150 99 50 'Cash flow after financing (1,430) (932) 1,182) (1,297 (1,753)(1,270) (546) 969 2,622 4600 * Fm before financing : 26% v ERR : 26% -125- 21. Financial analysis of sweet persimmn orchard developrent Variety : Buyou Area :Iha In thou. Won Project year itemt *~ 11 12 13 14 15 16 17 18 19 20 Beneflt . O Sale of sweet pers(Uaon 9,930 11,590 13,240 14,900 17,380 20,70C - 0 Intercrceping Total 9.930 11,590 13,240 14,900 17,380 20,701 - - - Cost 0 Investment/eplaceanat costs 186 37 65 37 - Saplings & Planting -. Reclamatiao - Power sprayer 47 - Mixingtank 7 - Fence 186 18 - Well 30 30 0 Managnat costs 3,295 3,465 3,665 3,796 3,926 4,13! - Fertilizer 337 337 367 378 378 391 -4 - Agro-diemicals 130 140 160 160 160 181 -Box 280 340 380 430 500 590 _ - Wages 2,430 2,530 2,640 2,710 2,177 2,860 - - -Fuel 50s - -Maintenace 26…___ - s1 tools 42 -___ ___ - - Intercrowing _.__ Total 3,481 3,465 3,702 3,796 3,926 4,79 4,139 - Cash flow before financing 6,449 8,125 9,538 11,104 13,454 15,90 16,561 i6,561 6,524 16,561 FPitncing 0 Loan receipt 0 Loan rpaymemt - Principal - Interest *Cash flow after finwwing 6,449 8,125 9,538 1,104 13,454 15,901 16,561 16,561 16,524 16,561 * m before finn9cg : 26% -126- 22. Financial analysis of maesil orchard development Variety : Baikgaha Area :lha In thou. Won Project year Item _ 1 2 3 4 5 6 7 8 9 10 Benefit 0 Sale of maesil 1,110 1,850 5,540 7,640 11,080 1,080 1,080 0 Intercropping 800 690 570 800 690 570 1,110 1,850 5,540 7,640 11,080 11,080 1,080. Cost 0 Invesbnent/Replacement costs 2,775 41 186 37 472 - Saplings & Planting 530 41 - Reclamation 980 - Power sprayer 524 472 - Mixing tank 70 7 - Fence 371 186 - Well 300 30 0 Management costs 1,296 1,307 1,362 1,512 1,876 2,166 2,473 2,783 3,041 ,096 - Fertilizer 110 110 154 154 198 198 275 275 363 418 - Agro-demnicals 20 40 60 150 3qO - - - - BOx 80 130 400 550 790 790 790 - Wages 670 779 810 1,030 1,060 1,170 1,240 1,310 1,480 1,480 - Fuel 20 20 20 30 30 30 30 40 - - Maintenance 26 - - | - _ - . - - - Small tools 110 42 2_-- - - - - - Intercropping 340 290 250 - _____ Ibtal 4,071 1,348 1,362 1,512 1,786 2,352 2,510 2,783 3,513 3,096 Cash flow before financing (3,271 (658 (792) (402 64 3,188 5,130 8,297 7,567 7,984 Financing 0 Loan receipt 2,200 0 Loan repawyment - Principal 550 __-__ - Interest 176 - 132 88 44 *Cash flow after financing (1,247 (834 (968) (578) (112 2,462 4,448 7,659 6,973 7,984 * ERR before financing : 38% * ERR : 38% -127- 22. Pinancial analysis of maesil orchard develomnent Variety : Baikgaha Area : lha In thou. Wmn Project year item 11 I 12 13 14 15 16 17 18 19 20 BenefitI O sale of maesil 11,080 - ___ _ - O intercropping Total 11,080 - _ - -_ Cost O Investient/Replacuount costs 186 37 658 37 - Saplings S Planting -.Reclaraticon - Power sprayer 4/2 -Hixing tank 7 - Fence 186 186 - Well 30 30 O Management cots 3,166 3,166 3,166 3,166 3,166 3,166 3,166 3,166 3,166 3,166 - Fertilizer 418 _ _ _____ - Agro-ched icals 300 - _ ___ - -Box 790 _ _ > - Wages 1,550 __ -Fuel 40- - Maintenance 26 . - -Slal tools 42- __ - - - * - intercropping -1'ota 3,352 3,166 3,203 3,166 3,166 3,824 3,166 3,166 3,203 3,166 *Cash flow before financing 7,728 7,914 7,87 7,914 7,914 7,256 7,914 7,914 7,877 .7,914 Financing O Loan receipt O Loan repayumnt - Principal - Interest 'Cash flow after financing 7,728 7,914 7,87 7,91 7,914 7,256 7,914 7,914 7,877 7,914 * FR before financing : 38% -128- 23. Financial analysis of jujube orchard develqpment Variety : Mudeung in thou. Won Area : lha Project year 1 2 3 4 S 6 7 a 9 10 Benefit O Sale of Jujube 890 1,490 3,490 4,830 8,010 10,880 13,550 0 intercropping 800 690 570 TItal 800 690 570 890 1,490 3,490 4,830 8,010 10.880 3.550 Cost: 0 Investment/Replacement costs 3,785 140 186 37 472 - Saplings & Planting 1,540 140 - Reclamation 980 - Power sprayer 524 472 - Mixing tank 70 7 - Fence 371 186 - Well 300 30 0 Management costs 1,206 1,150 1,184 1,077 1,389 1,573 1,763 2,145 2,375 2,660 - Fertilizer 110 132 176 209 231 275 275 297 297 352 - Agro-chemicals 20 40 60 120 2%0 240 300 300 360 360 - Box 30 50 120 170 290 390 480 - Wages 580 600 610 620 770 840 910 1,150 1,220 1,360 -Fuel 20 20 20 30 30 30 40 _ -Maintenance 26 - -- - Small tools 110 42 - - Jntercropping 340 290 250 _Total 4,991 1,290 1,184 1,077 1,389 1,759 1,800 .,145 2,847 2,660 *Cash flow before financing (4,191) (600) (614) (187 101 1,731 3,030 5,865 8,033 0,890 Financing 0 Loan receipt 2,900 0 Loan repayment - Principal 730 730 720 720 - Interest 232 _ 174 115 58 4icash flow after financing (1,523) (832) (846) (419 (131) 769 2,126 .030 7,255 0,890 * FRR before financing : 37% *ERR ; 36% -129- 23. FinanCiPl analysis of jujube orchard develomaent Variety : £4uidntg Area : lha In thou. Wn Project year item - - - - - 11 12 13 14 15 16 17 18 19 20 . _ef it O Sale of mudeting 16,950 - - - -_- O Intercrcping . , ~~~~~16,950_= _- cost 186 37 65 37 0 Inestnmnt/Replacusmnt costs - Saplings & Planting -Reclansi . tS>ntion P- ower sprayer 47 - Mixing tank 7 7 -Fence 186 18 -well 30 0 manamgent costs 2,790 2,79C 2,790 2,790 2,790 2,79 2,790 2,790 2,790 2,790 | - Fertilizer 352 35 352 352 352 35 352 352 352 352 - Agro-dcehicals 360 36 360 360 360 36 360 360 360 360 - Box 610 - --- - Wages 1,360 … - Fuel 40 - Maintenance 26 … - nall tools 42 _ - - - Intercroping Total 2,976 2,79( 2,827 2,790 2,790 3,44( 2,790 2,790 2,827 2,790 *Cash flaw before fSnauning 13,974 14,16 14,123 14,160 14,160 13,50 14,160 14,160 14,123 14,160 Finamning 0 Loan receipt O Loan repayment - Principl - Interest *Cash flow after financing 13,974 14,16 14,12 14,160 14,160 13,50 14,160 14,160 14,123 14,160 m FR before financing : 37% -130- Fruit production and sales amount by the Project years Amount: thou.Won Area : lOa Frui , Project years Fruits -. __ 4 6. 8 10 12 14 16 18 20 Yieltgl 250 1,800 3,500 4,500 4,500 4,500 4,000 2,700 1,600 Apple Amount 153 1,103 2,145 2,758 2,758 2,758 2,452 1,655 980 (kg) Yield 450 1,100 1,700 2,300 2,800 3,200 3,600 3,600 Pear ---- - ---- -- - Amount 213 521 806 1,090 1,327 1,516 1,706 1,706 (kg) Yield 300 1,100 1,700 2,100 2,100 2,000 1,700 1,500 1,100 Peach ----___ Amount 155 570 882 1,090 1,090 1,038 882 778 571 (kg) Yie-ld 500 1,200 1,800 2,300 2,300 2,300 2,100 1,900 1,200 Grape -- - - - - - -- -- - - I Amount 223 559 838 1,071 1,071 1,071 978 885 559 (kg) Sweet Yield 120 500 1,000 1,400 1,800 2,500 2,500 2,500 Persim- - - . _ _ _ _ . _ _ _ mon Amount 99 414 828 1,159 1,490 2,070 2,070 2,070 (kg) Yield 216 1,080 2,160 2,160 2,160 2,160 2,160 2,160 2,160 Maesil _… Amount 111 554 1,108 1,108 1,108 1,108 1,108 1,108 1,108 (kg) Yield 87 340 780 1,320 1,650 1,650 1,650 1,650 1,650 Jujube Amount 89 349 801 1,355 1,695 1,695 1,695 1,695 1,695 -131- Financial and econoiic analyses of on-farm storage project -133- 24. Financial dnalysis of on-farm storage Project Variety : Apple Area : 20pyong (66rt In thou. won Project year 1 2 3 4 5 6 7 8 9 10 Storable quantitiy -Yield, M1f 24.3 31.5 36.0 40.5 - - - 36.0 -Storable 80% of yield, TVr 19.4 25.2 28.2 30.0 - 28.8 Benefit O Sale after stored period 3,660 17,591 20.279 21,123 - -_-__- 20,279 O Sale inmmediately after 11,92 15,448 17,654 18,390 - _ - 17,654 harvest Incresmntal benefit 1,768 2,143 2,625 2,733 - - 2,625 Cost O Investmint/Replacement costs -Storage construction cost 6,400 640 -Stored boxes 1,708 1,014 624 208 668 0 Mauagement costs -Wages 420 546 624 650 ----- - 624 -Sterilization 50 - - -Maintenance 43 53 59 62-- 0 opportunity cost 30 = = = - - - Total 8,651 1,693 1,387 1,000 792 1,460 1,432 792 792 766 *Cash flow before financing (6,883 450 1,238 1,733 1,941 1,273 1,301 1,941 1,941 1,859 Financing 0 Loan receipt 5,200 O Loan repayment -Principal 870 870 870 870 860 860 -Interest 416 416 346 277 207 138 69 *Cash fow after financing (2,099 (836 22 586 864 275 372 1,941 1,941 1,859 * m before financing :18% * ERR: 17% -135- 24. Financial adalysis of on-farm storage Project Variety : Apple Area : 20pycng (66n0) D. thou. Won Project Item 11 12 13 14 15 16 17 18 19 20 Storable quantity -Yield, M/T 31.5 24.3 18.9 14.4 16.2 24.3 31.5 36 40.5 40.5 -storable 80% of yield, MIT 25.2 19.4 15.1 11.5 13 19.4 25.2 28.8 30 30 Benefit o Sale after stored period 17,591 13,660 10,635 8,101 9,152 13,660 17,591 20.279 21,132 21,123 0 Sale immediately after 15,44 11,892 9,256 7,050 7,969 11,892 15,448 17,654 18,390 18,390 harvest Incremental benefit 2,413 1,768 1,379 1,051 1,183. 1.768 2,143 2,625 2,733 2,733 Cost 0 Investment/Replacement costs 640 640 -Storage construction cost -Stored boxes 66 668. 0 management costs -wages 546 420 327 249 282 420 546 624 650 650 -Sterilization 5 _ -Maintenance 62 - _ … 0 Cpportunity cost 30 - Total 1,356 562 1,109 391 424 1,230 688 766 1,432 792 *Cash flow before-financing 787 1,206 270 660 759 538 1,455 1,859 1,301 1,941 Financing 0 Loan receipt 0 Loan repayment -Principal -Interest *Cash il-, after financing 787 1,206 270 660 759 538 1,455 1,859 1,301 1,941 * ERR before financing 18% -136- Financial and econnmic analyses of farm machinery -137- 25. Finan_ial analysis of large speed Sprayer Apple Orchard : Sha In thou. Won Project year item 1 2 3 4 5 6 7 Spraying of agro-dheuicals A. Without Project -Labor : M.manday 159 179 193 207 215 219 223 F.manday 111 126 135 144 150 153 156 -Agro-chemical Vol.in thou.liters 76 108 128 148 174 182 190 B. With Project -Labor : One driver manday 15 15 15 1S 15 15 1S One assitant 15 15 15 15 15 1S 15 -Agro-chemical Vol.in thou.liters 65 92 109 126 148 155 162 Benefit:cost saved A. Operating costs without project -Labor cost 3,066 3,461 3,724 3,987 4,145 4,224 4,303 -Agro-chemicals 1,634 2,322 2,752 3,182 3,741 3,913 4,085 -Fuel 102 137 158 180 208 216 225 -4-4i1ftenance-,and repairs 53 53 53 53 53 53 53 - -bal 4,855 5,973 6,687 7,402 8,148 8,406 _8,666 B. Operating costs with Project -Labor cost 360 360 360 360 360 360 360 -Agro-chemical vol.,in thou.liters 1,398 1,978 2,344 2,709 3,182 3,333 3,483 -Fuel 150 192 218 244 278 289 299 -Maintenance and repairs 1,200 1,200 1,200 1,200 1,200 1,200 1,200 __tl_ 3,108 3,730 4,122 4,513 5,020 5,182 5,342 Cost saved : A - B 1,747 2,243 2,565 2,889 3,128 3,224 3,324 Investment A. Without Project -Price of 2 power sprayers 1,048 (105) B. With Project -Price of one speed sprayer 12,000 (1,200) Additional investment Cost B-A 10,952 (1,095) Cash flow before financing (9,205) 2,243 2,565 2,889 3,128 3,224 4,419 Financing 0 Loan receipt 8,400 0 Loan repayment -Principal 1,200 1,200 1,200 1,200 1,200 1,200 1,200 -Interest 672 576 480 384 288 192 96 Cash flow after financing (2,677) 467 885 1,305 1,640 1,832 3,123 * Fn before financing 22% . ERR : 14% -139- 26. Financial analysis of Power mower Apple Orchard: Ah In thou. Won Project year Item 1 2 3 4 5 6 7 Working plan O Wosk :tmkng apt - V - o Work capacity : 4 thues per year 12ha 12ha 12ha 12ha 12ha 12ha 12ha costs A. Without Project -Labor cost 840 840 840 840 840 840 840 3. With Project 1,888 463 463 463 463 463 321 -Price of power aoer 1,425 (142) -Labor cost for driver 153 153 153 153 153 153 153 ..Fuel 167 167 167 167 167 167 167 -Nlaintanance and repairs 143 143 143 143 143 143 Additional costs : B - A (1,048) (377) (377) (377) (377) (377) (519) Ca4h. f4qw before finaneing (1,048) 377 377 377 377 377 519 Financing 0 Loan receipt 990 0 Loan repaynmnt -Principal 330 330 330 -Interest 80 53 27 cash flow after financing (468) (6) 20 377 377 377 519 *FDR before financing : 29% *E1RR: 17% -140- Financial and econanic analyses of upland irrigation -141- 27. Pinancial analysis Of monvable sprinkler irrigticn on vegetable field Area : lha In thou. lion Project year Item 1 2 3 4 5 6 7 8-10 Benefit A. Without Project Vegetables Area Yield Prices 1st crop 2nd crop (a) kgqlOa Won/vg - _ __ Red Pepper 50 164 2,963 2,282 - - - _ - 2,282 Carrot 50 2,036 199 2,028 _ ______ _ __ ._ _ - - _ 2,028 potato 50 1,695 186 1,576 _ -- 1,576 chines Cnion 50 2,823 171 2,415 2,415 Ittal I ______ L_____ 8,031 -_ 8,031 B. With Project Vegetables Area Yield Prices 1st ceop 2nd cro (a) kq/lOa VaVn/kg _ Red Pepper 50 185 3,111 2,877 _ - - 2,877 ______ Carrot 50 2,443 209 2,553 - - 2,553 Potato 50 20,34 195 1,983 - _ _ - _ 1,983 Chinese onion 50 3,388 179 3,042 ----c 3,042 Total 10,455 10,455 Incremental benefit : B - A 2,'54 = 2,154 Production costs A. Without Project 5,886 - - -> 5,886 B. With Project 6,474 - - 6,474 Additional costs : B - A 588 - 588 Investment and Management costs 0 Investment & replocement costs 2,772 136 0 Management costs - Labor cost 200 - - 200 - Fuel 186 - - _ _ __ - 186 - Maintenance and repairs 98 _ _ - - 98 Total cost 3,256 484 484 484 484 620 484 484 * Cash flow before financing (1,6900 1,082 1,082 1,082 1,082 946 1,082 1,082 Financing 0 Loan receipt 1900 0 Loan repayment - Principal 480 480 470 470 - Interst 152 152 152 152 U4 75 38 * Cash flow after financing 58 930 930 450 488 401 574 1,082 * FRR before financing over50o *ERR : 50% -143- 28. Financwil analysis of fixed sprinkler irrigation on apple orchard Area : Iha In thou. Won Project year Item Itea _~~ 2 3 4 5 6 7 8 Production (K/F) -Without Project 18 27 35 40 45 45 45 45 -With Project 18 28 36 42 47 47 47 47 Benefit A. Without Project 11,030 16,550 21,450 24,520 27,580 27,580 27,580 27,580 B. With Project 12,132 18,872 24,264 28.308 31,67S 31,678 31,678 31,678 Incremental benefit (B-A) 1.102 2,292 2,814 3,788 4,098 4,098 4,098 4,098 Cost 0 Investment and replacement oosts -Well 598 -Pwmping station 1,005 280 -Piping 1,240 -Sprinkler equipments 637 212 -Taxes 763 S,ub-total 4243 . _ 492 _ _ O Management costs -Labor 167 -Fuel 198 - - -Maintenance and repairs 157 -_ Sub-total 522 . _ Total cost . 4,765 522 522 522 522 1,014 522 522 'Cash flow before financing 13,663) 1,770. 2,292 3,266 3,576 3,084 3,576 3,576 Financing 0 Loan receipt 2,900 0 Loan repayment -Principal 580 580 580 -Interest 232 232 232 232 232 232 186 139 Ciih'flow.after financing (995) 1,538 2,060 3,034 3,344 2,272 2,810 2,857 * FRR before financing over 50% ERR : 50% -14 4- 28. Financial analysis of fixed sprinkler irrigation on apple orchard Area : lha In thou. Won Project year 9 10 11 12 13 14 15 Production Itl) -Without Project 45 45 40 35 27 21 16 -With Project 47 47 42 37 28 22 17 Benefit A. Without Project 27,580 27,580 24,520 21,450 16,550 12,870 9,800 B. With Project 31,678 31,678 28,308 24,938 18,872 14,828 11,458 Incremental benefit (B-A) 4,098 4,098 3,788 3,488 2,322 1,958 1,658 Cost 0 Investment and replacement costs -Well -PUping station 280 -Piping 210 -Sprinkler eqipments| 637 -Taxes Sub-total _ _ _ . _ _ _ _ 1,127 _ _ _ _ _ _ _ _ _ _ _1_1_ 0 Hanagemnent osts -Labor 167 - -Fuel 198 w -Maintenance and repairs 157--| _____ta 552 __ ___ _ _ _ _ _ _ _ _- T_ta__oost 522 522 1,649 522 522 522 522 "Cash flow before financing .3,576 3,576 2,319 2,966 1,800 1,436 1,136 Financing 0 Loan rece4pt 0 Loan tepayment .'Priidcipal 580 580 -Interest 93 46. *cash f1o.after financ*in 2,903 2,950 2,139 2,966 1,800 1,436 1,136 * FRR before financing : over 50% -145- Financial and econanic analyses of special crops -147- 29. Financial analyhis of ginseng Production Project Area : lOa In thou. Won Project year Iteml 1 2 3 4 Benefit o sales -Fresh root 5,760 -seed 240 o Residual value 100 Total ___________ 6,100 Costs o Investment/Replacement costs -Nursery root 371 -Shade frame 540 109 129 -Sprayer 227 u-tota_ 227 911 _ _ 109 _ _129_ O Operating costs -Management costs 275 735 588 379 -Small tools 20 -Repairs/Maintenance 11 38 _ 18 _18 Sub-total _ 306 _ 793_ 626 _ _ 419_ 0 oLVortunity costs 150 . Tbtal 683 1,854 885 698 'Cash flow before financing (683) (1,854) (885) 5,402 Financing 0 Loan receipt 870 0 Loan repayment -Principal 870 -Interest 70 70 70 *Cash flow after financing (683) (1,054) (815) 4,462 * MR before financing 26% *ERR : 26% -149- 30. Financial analysis of oyster mushrocm Project Produced in fermented straw HouSe:50pyong,Growing bed:70pyong In thou. Won Project year Iten -*2 3 4 5 6 7 Benefit O Sale of mushroom 4,312 O Sale of straw manure 80 O Residual value 872 Total 4,392 5 5,264 Cost O investment cost 4,113 O Management cost -Spawn and other mateials 908 - -Puel 719 - -Packing box 218 -Labor cost 1,320 -Waintenance&repair 206 - Sub-total 3,371 _7 O Opportunity cost 30 - Total 7,514 3,401 . >- Cash flow befoiefinancing (3,202) 991 - 1,863 Financing O Loan receipt 4,400 O Loan repayment -Principal 880 -Interest 352 352 282 211 141 70 cash flow after financing 864 (241) (171) (100) (30) 41 1,863 FRR befor financing 24% ERR : 22% -150- 31. Financial analysis of oak mushrocm Project Quantity : 5.000kag I t Wm Project year Item 1 2 3 4 5 6 Banefit O Sale of mushroom 1,2U0 4,320 3,680 1,920 960 0 Sale of used logs 250 0 Residual value 117 Tbtal 1,120 4,320 3,680 1.920 1,327 cost 0 Investment costs 4,635 0 aunagnment costs -Labour cost .f6r mnagewent 509 529 501 424 332 -maintenance and repair 50 Sub-Total 4,635 559 579 _ 551 474 432 0 Rent for forest shade 50 Ibtal 4,685 609 629 601 524 482 *Cash flow before financing (4,685) 511 3,691 3,079 1,396 845 Financing 0 Loan receipt 3,200 0 Loan repayment -principal 1,080 1,060 1,060 -Interest 256 256 256 170 85 *Cash flow after financing (1,229) 255 2.355 1.849 I 251 . _ FMR before financing: 30% ERR : 28% -151>-* 32. Financial analysis ef deodug root Project Planting area: lOa Rootplanting in spring I_n thou. Wn Project year 1 ~~~2 3 Benefit O Deodug root prduction 1,100 1,650 0 Swd production 60 60 Total 1,160 1,710 Costs 0 bnestmnt cost -cost of nersery root 520 -SLfforting pole 35 -Labour cost ,etc. 422 - 8uo-btal_ 1,292 _ _ _ _ 0 Management costs 386 246 -Maintenance and repair 70 70 Sub tbtal_ _ _ _456 316 0 cAportumity cost 85 Total 1,377 541 401 Cash flow before financing (1,377) 619 1,309 0 Loan receipt 900 0 Loan repaymnt -Principal 450 450 -Interest 72 72 36 ACash flow after financing (549) 97 823 * FRR before finwxd 23% *ERR: 20% -152- 33. Financial analysis of aneeja fruit Project Area: lha In thou. VWn .______ .Project year Item - : - - 1 2 3 4 5 6 7 Benefit O Sale of fruit 3,200 6,400 7,200 7,200 3,200 3,200 0 Residual value 2,175 Total 3,200 6,400 7,200 7,200 3,200 5,375 Costs 0 Investment cost -Nursery trees 1,350 -Planting labor costs 240 -Concrete supporting poles 2,875 -others 3,184 _ S b 7,649 _ _ - . . - _ _ _ _- 0 MIangeent costs fram 2nd year -Fertilizer&agro,chemicals 484 - -Labor 1,650 -others 50 -__ Sub-Total _ _ _ 2,184 . - 0 %portunity O6t 600 - Total 8,249 2,784 - -Cash flow before financing (8,249) 416 3,616 4,416 4,416 416 2,591 Financing 0 Loan receipt 4,600 0 Loan repayment -Principal 1,540 1,530 1,530 -Interest 388 368' 368 245 122 'Cash flow after financing (4,017) 48 1,708 2,641 2,764 416 2,591 * ERR before financing 211 " ERR : 22% -153- 34. Financial analysis of Kookija fruit Project Area : lha In thou. Wbn Project year item 1 2 3 4 5 6 7 Benefit O Sale of kookija fruit 5,000 7,500 - 0 Residual value 5,208 Total 5,000 7,500 - 12,708 Costs 0 Investment cost --ursery tree 6,000 -Planting labor costs 510 -others 2,017 Sub-Tbtal 8,527 _ _ _ . _ _ . - _ _ _ _ _ 0 Maunaement costs fran 2nd year - Fertilizer agro-diemicals 970 - -Labor 1,700 -others 50 ------_ Sub-Tbtal _ _ _ 2,720 LO 0 cpportunity cost 600 Total- 9,127 3,320 -) *Cash flow before financing (9,127) 1,680 4,180 - 9,388 Financing 0 Loan receipt 4,800 0 Loan repayment -Principal 1,600 1,600 1,600 -Interest 384 384 384 256 128 Cash flow after financing (4,.Ll) 1,296 2,196 2,324 2,452 4,180 9,388 FRR b6fore fiiancing : 41% ERR : 34% -154- i Filuancial and economic analyses of beekeeping -155- 35. Financial analysis of beekeeping Project Quantity : lOSwarms In thou. Won Project year item - ____ 1 2 3 4 5 6 7 8 9 10 Beniefi t 0 Honey Production 270 351 486 576 - - 0 Sale of beehives 480 720 . - 0 Residual value 1,600 Total 270 351 966 1,296 - 2,896 Costs 0 Investment/Replacement cos 1,195 68 108 122 122 236 135 - - 0 Managment cost 270 345 470 520 - Total 1,465 413 578 642 642 756 655 *cash flow before financing (1,195 162) 388 654 654 540 641 2,241 Financing 0 Loan receipt 1,000 0 Lan repayment -Principal 340 330 330 -Interest 80 80 80 53 26 *Cash flow after financing (2753 (142) (32) 271 298 540 641 - 2,241| * FRR before financing; 34% " ERR : 34% -157- { ATTACHMENT 1 AU!- 21 1999 2013 TO: UtRt.[. BANK AU6. 26, 1989 MR. GRAHAM DONALDSON DIVISION CHIEF, AGRICULTURE, INFRASTRUCTURE AND HUMAN RESOURCES DIVISION OPERATIONS EVALUATION DEPARTMENT, THE WORLD BANK EEAR MR. DONALDSON: RE: FOURTH AGRJCULTURAL CREDIT PROJECT (LOAN 2549-KO) PROJECT COMPLETION REPORT THANK YOU FOR YOUR INFORMATION ABOUT ABOVE MENTIONED REPORT. REVIEWING THE DRAFT REPORT SENT TO US, I UOULD LIKE TO COMMENT ON IT AS FOLLOWS: AA) AS YOU MAY KNOW WELL, GOVERNMENT ORIGINALLY PROVIDED NACF UITH 21.9 BILLION WON FOR THE PURPOSE OF PROTECTING NACF AGAINST THE FOREIGN EXCHANGE RISK OF THE LOAN AND ALSO THIS FUND HAS CONTRIBUTED TO THE ENLARGEMENT OF THE PROJECT VOLUME EVENTUALLY. THE FOREIGN EXCHANGE RISK HAS BEEN FULLY CLEARED BY THE INTEREST GAP ACCRUED FROM THE GOVERNMENT FUND UHICH HAD BEEN FINANCED TO FARMERS. (REF. NACF PCRVB PAGE 49-50) ACCORDINGLY, LINE 11-13 ON PAGE VI IN YOUR EVALUATION SUMMARY UDIJLD BE REVISED IN DUE EXPPESSION. BB) THE FCREIGN EXCHANGE RISK IS NOT THE ONLY BLOCK TO A FOLLOW-ON EvalatonLOAN. 3na;uatlon IN ADDITION TO THE FE RISK FOR THE LOAN, THERE COULD BE SUCH Sary EASONS NOT TO PROCEED A FOLLOW-ON LOAN AS A SLIGHT GAP BETUEEN 8PCT INTEREST RATE OF SUBLOANS AND S3ME 7.7PCT INTEREST RATE OF THE LOAN, THE NECESSITY OF INFLATION CONTROL AND THE POSSIBILITIES OF MOBILIZATION OF DOMESTIC CAPITAL UNDER THE RECENT BLANCE OF INTERNATIONAL PAYMENTS IN BLACK ETC. IN THIS CONNECTION, FINDINGS AND LESSIONS B)ON PAGE VII IN YOUR EVALUATION SUMMARY UOUILD BE INCLUDED OTHER REASONS IN ADDITION TO THE FE RIS. YOUR DEEP UNDERSTANDING WILL BE HIGHLY APPRECIATED. SINCERELY YOURS EUN KEE SONG DIRECTOR AND GENERAL MANAGER INTERNATIONAL BANKING DEPARTMENT NATIONAL AGRIUCLTURAL COOPERATIVE FEDERATION NATIONAL A,iRICULTURAL COOPERATIVE FEDERATION INTERNATIONAL BANKING DEPT.. H. D. NACOF K32329, K32330 - 159 - IBRD 12351R4 Wo§USSR ~~~~ ~~~~~127' 12r t 12P' USSR - _ DEMOCRATIC DEOPLE'S C H IN A SREPUBLIC OF KOREA r~~~ ~. , PEtgt * -REP. OF KOREA REP. OF KOREA JAPANJK '.' ~~~~~~~~~~~~~ -w(~~~~~~~~~~~~~~~~x\J{E * u s~~~~~~~~~~~~~~~~~~~~' 25' ~ ~ Y ~D 5 12S* 129' w ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~'~ ~ ~ ~ ~ ~~~~~~~~6 ' O [ CHO N A NGCBUKfC,|5US 35'~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~3' *4.~~~~~~~~~~~~Kn ' _vR S Ye \'\ ' S ~~~~~REPUBLIC OF KOREA War& Expressvfys - Pricrny Roas ~~ ~~~'s . ~~~~- ,Railways '+ Airports 4: Parts flu. .>. c.ee Rivers 1" I-d " l>v -tlD Special Cities 0 d X - Province eBoundries Ch,,,~,,,,,,,,,,,,, oib ---- Internotional Boundaries - t w t p.. - -t _-__"'.n iHEi.\E DO . 2,0 , 40 60 so0 to 1201 c*o ccI , 0 20 to 60 so 100 125. 126' 2?7' 126' M L ?9' MARCH 19t