Report No. 127a-UNI FILE Appraisal of Livestock COpy Development Project Nigeria October 9, 1974 Western Africa Regional Office Not for Public Use Document of the International Bank for Reconstruction and Development International Development Association This report was prepared for official use only by the Bank Group. It may not be published, quoted or cited without Bank Group authorization. The Bank Group does not ac(ept responsibility for the accuracy or completeness of the report. CU1fENCY EQUIVALEThr 1/ 1 Naira (N) 100 Kobo (K) = US$1.52 1 US$ 100 Cents(/) = NO.658 WEIGHTS AND MEASURES 1 acre (ac) = 0.405 hectares (ha) 1 mile (mi) = 1.61 kilometers (km) 1 inch (in) = 25.64 millimeters (mm) 1 cubic foot (cu ft) = 0.03 cubic meters (m3) 1 pound (lb) - 453.6 grams 1 hundredweight (cwt) 112 pounds 1 long ton = 2,240 lb = 1.016 metric ton 1 gallon = 3.79 liters 1 pound = 0.4L54 kilogram ABBREVIATIONS FLD Federal Livestock Department FMANi= Federal Ministry of Agriculture and Natural Resources HEU = Heavy Equinment Unit LPU = Livestock Project Unit NAB - Nigerian Agricultural Bank NC State = North Central State NE State = North Eastern State NELC = North Eastern Livestock Company NLPC = National Livestock Production Company NW State = North Western State USAID = United States Agency for International Development WLC = Western Livestock Company W State = Western State FISCAL YEAR April 1 - March 31 1/ Since April 1, 1974 the Naira has floated independent of the U.S. dollar. Twice weekly, the Central Bank sets buying and selling rates for the U.S. dollar and L sterling. The Naira has appreciated steadily vis-a-vis the U.S. dollar, and by July 1, 1974 the average quotation was N 1 = US$1.622 or 6.7 percent above the previous central rate of X 1 = US$1.32. The latter has been used for currency conversions throughout this report. NIGERIA LIVESTOCK DEVELOPMENT PROJECT TABLE OF CONTENTS Page No. SUMMARY AND CONCLUSIONS .............................. i - iii I. INTRODUCTION ................................ 1 II. BACKGROUND .................................1 A. General ......................................... 1 B. The Livestock Subsector ......................... 2 C. Integration of Agriculture and Livestock .... .... 5 D. Credit for Livestock Production .... ............. 5 E. Livestock Development Strategy .... .............. 6 III. THE PROJECT ......... ................................. 7 A. General ......... ................................ 7 B. Detailed Features .8... .......... 8 IV. COSTS ESTIMATES AND FINANCIAL ARRANGEMENTS ........... 13 A. Project Costs .................... 13 B. Proposed Financing ......................... 15 C. Credit Arrangements ......................... 16 D. Procurement .. .......................... 17 E. Disbursement ..................... 17 F. Accounts and Audit ....................... 18 V. ORGANIZATION AND MANAGEMENT ........ .................. 18 A. General ......................................... 18 B. Livestock Project Unit ........ .................. 19 C. Ranching Companies .......... .................... 20 D. Smallholder Fattering Scheme ...... .............. 20 E. Grazing Reserves ............ .................... 20 F. Nigerian Agricultural Bank ...... ................ 21 This report is based on the findings of an appraisal mission, in July/ August 1972, composed of Messrs. N.A. Worker and T.C. Tsui (Bank); and F.L. Cockcroft, F. Blanc, E. de Smidt and C. Hopen (Consultants). Cost esti- mates were updated as of early 1974. TABLE OF CONTENTS (Cont'd) Page No. VI. PRODUCTION, MARKETS, PRICES AND PRODUCER BENEFITS .... 21 A. Production ......... ............................. 21 B. Markets ........... .............................. 21 C. Cattle Prices ........ ........................... 22 D. Producer Benefits ....... ........................ 22 VII. ECONOMIC BENEFITS AND JUSTIFICATION .24 VIII. AGREEMENTS REACHED AND RECOMMENDATIONS . ... 25 ANNEXES 1. The Agriculture and Livestock Subsectors 2. The Fulani and the Traditional Livestock Subsector 3. Cattle Health Situation 4. Livestock Supporting Services 5. Agricultural Credit 6. NELC Ranches Table 1 - Darazo Ranch - Herd Projection Table 2 - Bornu Ranch - Herd Projection Table 3 - Darazo Ranch - Investment Costs Table 4 - Bornu Ranch - Investment Costs Table 5 - Darazo Ranch - Sales, Operating Expenses and Livestock Purchases Table 6 - Bornu Ranch - Sales, Operating Expenses and Livestock Purchases Table 7 - General Administration - Investment and Operating Expenses Table 8 - NELC Cash Flow 7. WLC Ranches Table 1 - Ongoing Ranches - Herd Projection Table 2 - Start-Up Ranches - Herd Projection Table 3 - Ongoing Ranches - Investment Costs Table 4 - Start-Up Ranches - Investment Costs Table 5 - Ongoing Ranches - Sales, Operating Expenses and Livestock Purchases Table 6 - Start-Up Ranches - Sales, Operating Expenses and Livestock Purchases Table 7 - General Administration - Investment and Operating Expenses Table 8 - WLC Cash Flow 8. NLPC Fattening Ranches Table 1 - Herd Projection Table 2 - Investment Costs Table 3 - Sales, Operating Expenses and Livestock Purchases Table 4 - General Administration - Investment and Operating Expenses Table 5 - NLPC Cash Flow 9. Private Breeding/Fattening Ranches Table 1 - Herd Projection Table 2 - Investment Costs Table 3 - Sales, Operating Expenses and Livestock Purchases Table 4 - Cash Flow 10. Cattle Fattening by Smallholders 11. Grazing Reserves Table 1 - Fulani Graziers - Investment Costs Table 2 - Fulani Graziers - Operating Expenses and Grazing Fees Table 3 - Benefits of Fulani Grazing Reserves Table 4 - Kukar Jangarai - Investment Costs Table 5 - Kukar Jangarai - Operating Expenses, Grazing Fees and Incremental Production 12. LPU Investment, Operating and Technical Service Costs 13. Research and Training Center (Mokwa) - Investment and Operating Expenses 14. Heavy Equipment Unit Table 1 - Investment Costs Table 2 - Income and Operating Expenses 15. Outline Terms of Reference for Consultants 16. Project Cost Summary 17. Estimated Schedule of Disbursement of IBRD Loan 18. Terms of Reference of LPU Senior Staff 19. NAB Cash Flow from Project 20. Assumptions Relating to the Economic Rate of Return Table 1 - Summary Rate of Return Calculation MAP NIGERIA LIVESTOCK DEVELOPMENT PROJECT SUMHMARY AND CONCLUSIONS i. This report appraises a project that would introduce improved methods of beef cattle production in the Western, North Eastern and North Central States of Nigeria. The beef cattle industry remains largely in the hands of nomadic graziers and changes in the traditional methods are necessary if productivity is to be significantly expanded. Domestic pro- duction now supplies only about 70% of domestic consumption, the remainder being met by imports. Demand has risen fast in recent years and is ex- pected to double by 1980. ii. The proposed project would (a) establish or improve seven breed- ing and two fattening ranches owned by Federal and State Government companies; (b) provide credit and technical support for commercial farmers to establish about 50 medium-sized breeding and fattening ranches and for up to 1,500 smallholders to take up fattening; (c) establish for about 1,500 nomadic herdsmen and their families some 1,600 sq mi of grazing reserves, appropriately equipped and staffed; (d) establish and carry out pasture improvement research programs; and (e) provide training in beef cattle production for Government employees, private ranchers, smallholders and herdsmen. iii. The project would provide the funds needed to build up breeding herds totalling about 100,000 head, improve about 21,000 ac of pasture, build 100 dams for watering cattle, and construct 2,000 miles of roads and fire- breaks. iv. A Livestock Project Unit (LPU) would be set up in the Federal Minis- try of Agriculture and Natural Resources to coordinate project implementation and to (a) prepare development plans for the Federal, State and privately owned ranches; (b) operate, as agent for the Nigerian Agricultural Bank (NAB), the credit scheme for beef cattle fattening by smallholders; (c) provide technical supervision of borrowers for these ranches on behalf of NAB; (d) develop and manage the grazing reserves; and (e) be directly responsible for training and research and for pasture seed production. NAB would be the credit channel for ranch development loans; loans to smallholders for cattle fattening would be made by LPU on behalf of NAB. Consultants would be appointed to make regular evaluations of project progress, and to carry out project-related studies. v. Total project cost is estimated at US$42.0 million over an investment period of eight years. A Bank loan of US$21.0 million is proposed, which would cover the project's foreign exchange costs which amount to 50% of project costs. The remaining project costs would be financed as follows: Federal Government 14%, State Governments 19%, NAB 12% and private ranches and smallholders 5%. vi. The Borrower would be the Federal Government, and the loan would be made for a term of 20 years, including a grace period of six years on principal. The Bank loan, together with a Federal Government contribution - ii - of N 3.9 million (US$5.9 million), would be deployed as follows: the Borrower would on-lend N 8.6 million (US$13.1 million) to NAB, which in turn would lend to the ultimate borrowers at an appropriate interest rate varying between 5% and 9-1/2%. Of the balance: N 1.1 million (US$1.7 million) would be passed on to the North East and North Central States as grants in aid for its development of the grazing reserves; N 4.4 million (US$6.7 million) would meet the costs of the Livestock Project Unit; N 0.5 million (US$0.8 million) would be invested as equity in the federally owned ranching company; and, N 3.0 million (US$4.6 million) would remain to be allocated. vii. The procurement of vehicles, earthmoving and other equipment, housing and fencing wire (US$4.7 million) would be by international competi- tive bidding, for all contracts in excess of US$25,000. Domestically manu- factured goods would be allowed a preference of 15 percent or the prevailing customs duty whichever is lower; bids by eligible domestic contractors would be allowed a preference of 7-1/2 percent. All other procurement of equipment for the State-owned ranches (US$1.3 million) would be through locally adver- tised competitive bidding procedures, except for small items which would be purchased directly. Livestock purchases for the State-owned ranches (US$5.8 million) would not be subject to international competitive bidding because the project requires cattle suited to local conditions that can only be obtained through the traditional trading system in Nigeria or through Govern- ment negotiated contracts. Participating private farmers and ranches would be free to procure cattle, goods and services (US$10.7 million) through local trading and commercial channels. The construction of on-ranch earth dams, trucks and roads, firebreaks and land clearing (US$2.5 million) would be carried out by the project's own Heavy Equipment Unit. Internationally recruited staff and consultants (US$2.6 million) would be hired according to procedures acceptable to the Bank. viii. At full development, which would be reached in the tenth year of the project, incremental annual production would comprise about 4,200 t carcass weight of beef (equivalent to some 4% of current domestic production); about 11,000 breeding heifers and 700 breeding bulls, 75% of which would be of the scarce trypano-tolerant N'Dama breed. The value of this production would be of the order of US$10 million a year. ix. The economic rates of return from the direct investments in the production components of the project are as follows: ranching companies 13% - 18%; private ranches 13%; and smallholder fatteners 15%. These rates of return are before charging LPU costs; when these are taken into account, the overall rate of return for the project is about 11%. x. The other benefits of the project would be varied and important. The project would introduce modern techniques of livestock production and train Nigerian stockmen, extension staff, and project managers in the use of such techniques. Livestock credit facilities would be developed. The develop- ment of grazing reserves and use of improved pastures should increase carrying capacities, thereby helping to ease the confrontation between herdsmen and - iii - agriculturalists in the heavily populated areas of the north. The smallholder cattle fattening component would provide a source of additional income by integrating livestock into the traditional crop production system. Studies on livestock taxation and development of land cleared of tsetse-fly sponsored by the project may well set the stage for a better institutional framework for livestock development and profitable investment in livestock production. xi. The project is suitable for a Bank loan of US$21.0 million. NIGERIA LIVESTOCK DEVELOPMENT PROJECT I. INTRODUCTION 1.01 The Federal Government of Nigeria has asked for a Bank loan to assist finance a beef cattle development project. Project preparation was financed by the Bank and executed by a team of consultants in close cooperation with Government officers. The project would be the first for livestock development financed by the Bank in Nigeria, and only the third for agriculture. The first - Western State Cocoa (764-UNI) - is for plant- ing and replanting cocoa. The cocoa loan became effective in late 1971 and is proceeding satisfactorily. A second cocoa project was approved in June 1974; three rural development projects, and a rice project were recently negotiated. 1.02 This report is based on the findings of an appraisal mission, in July/August 1972, composed of Messrs. N. A. Worker and T. C. Tsui (Bank); and F. L. Cockcroft, F. Blanc, E. de Smidt and C. Hopen (Consultants). Cost estimates were updated as of early 1974. II. BACKGROUND A. General 2.01 Nigeria is a federation of 12 states, each with a government re- sponsible for the development of agriculture within its boundaries. The country is large, covering approximately 350,000 sq mi, and has good access to the sea. About one-half of the land can be classified as agricultural land; and of this, about 50% is cultivated while the remainder is good quality natural grassland. Climate is tropical; yearly rainfall varies from over 100 in/yr in parts of the Niger Delta in the south to less than 20 in/yr in the north, and there are well defined wet and dry seasons. 2.02 In 1972 official population estimate was about 68 million, with an estimated annual growth of about 2.5%. The final results of a recent census are not yet available, but the provisional tabulations of the census gave a figure of about 80 million people. GNP per capita is about US$130. With larger earnings from petroleum and other industries, the proportionate contri- bution to GNP of agriculture is declining, and agricultural production is hardly keeping pace with population increase. 2.03 Agriculture. Agriculture makes a very important contribution to the economy of Nigeria. More than 80% of the population live in rural areas and some 70% are employed in agriculture. Nearly one-half of GDP comes from the sector. Crop products account for some 80% of the total value of agricultural - 2 - output; livestock, fishing and forestrv account for 10%, 6% and 4%, respec- tively (Annex 1). In the past, the emphasis of the Government's agricultural development policy has been mainly directed toward increasing export crops such as cotton and groundnuts (in the north), cocoa (in the south-west), and oil palm and rubber (in the south-east). Well-organized marketing facilities have been provided for these crops. By contrast, little has been done to stimulate the production and marketing of other agricultural commodities. Food crop production is mostly based on a traditional pattern in which the farmer's first objective is to grow food for himself and his family, with surplus production, if any, being sold for cash in the village. Farms are small and often fragmented, and typically vary between one and seven acres. IThile a variety of food crops are grown throughout the country, cereal pro- duction predominates in the north while root crops such as yam and cassava are more commonly grown in the south. Because food crop production has his- torically been identified with subsistence type farming, and because efficient marketing channels have not been organized, there has been little incentive for the individual farmer to increase production beyond local needs. However, with increasing urbanization the market for food crops is growing rapidly and prices are increasing. Given these circumstances, the time appears ripe for projects aimed at improving the production and productivity of food crop farmers, and the Bank Group is actively engaged in preparing such projects in both the north and south. B. The Livestock Subsector 2.04 Nigeria has some 11 million beef cattle, 30 million sheep and goats, and 70 million poultry. Except for a highly commercialized and modern poultry industry serving the main urban centers, and apart from better disease con- trol, the subsector has remained unchanged for at least a century. Govern- ment has recently accorded high priority to livestock development, stimulated by the rapid rise of beef prices in recent years and the fact that domestic production meets only about 70% of consumption. Increased population and imiproved living standards will further intensify demand, and increase prices, and the need for imports (para. 6.02). 2.05 The Traditional Producer. The national herd of mainly Zebu-type animals is owned almost entirely by nomadic and semi-nomadic graziers, most of whom are Fulani and Kanuri living in the six northern states (Annex 2). The distribution of cattle is governed by the incidence of the tsetse-fly, which restricts most of the national herd to the Sudan Zone in the north; during the dry season, there is a southward movement in search of water and pasture. 2.06 Traditional livestock owners are not market-oriented, nor are they efficient cattle producers by modern standards. Calving rates are low (40- 50%), mortality is relatively high (10 to 20% for calves and 4-10% for adults), and growth to slaughter maturity slow (4-5 years). The use of modern production - 3-. inputs, such as improved veterinary hygiene and nutrition, fenaing, fertili- zers, and supplementary feeds, is minimal. Changes are essential if the tra- ditional herdsmen are to survive in an age in which grazing areas are being reduced by competition from crop farmers. As an initial step, Government has decided that the graziers and their herds must be encouraged to become more sedentary; in pursuit of this policy, a large-scale tsetse-fly eradication program is being financed with Federal funds. MTe land so freed is being settled, partly by nomadic herdsmen, under provisions of the 1965 Grazing Reserves Act, which permits Government to set aside land foir the exclusive use of nomadic graziers. 2.07 Animal Health is the responsibility of the Veterinary Divisions of the State Ministries of Agriculture. Rinderpest, contagious bovine pleuro- pneumonia, worm infestation, trypanosomiasis, and cutaneous streptothricosis are the principal diseases; the importance of these and other diseases and their control are described in Annex 3. All but the latter two diseases are more or less effectively controlled. Trypanosomiasis is probably the most serious disease and Government is making efforts to eradicate the vector. Cutaneous streptothricosis is widespread and especially severe in humid south- ern areas. Zebu stock is very susceptible, but the N'Dama and Muturu breeds have high resistance. There is no proven treatment and control is through regular inspection and isolation; however, promising results are being ob- tained in the development of a vaccine. 2.08 The overall nutritional situation is difficult, and energy, protein, mineral and vitamin deficiencies all occur in traditional herds, especially during the dry seasorf and the beginning of the rainy season. 2.09 Land Tenure. With insignificant exceptions, land is communally owned and administered by traditional leaders and family heads who, with the concurrence of local governments, grant rights of usufruct. Normally, such rights cannot be sold or transferred. Federal and State Government can ac- quire land for essential purposes on payment of compensation for improvements, including standing crops, and legal mechanisms exist under which commercial enterprises can lease land for agricultural development projects. 2.10 The nomadic grazier, however, has no established land rights under the traditional system; he usually receives permission to graze his cattle on common land not in agricultural use, and, in the dry season, on fapm land where his animals consume crop residues. Unfortunately, with population anO land pressures intensifying, the grazing areas are diminishing. 2.11 Taxation. Nomadic producers are subject to a standard cattle tax (Jangali) of N 0.75 for each adult animal. Local Government Authorities usually retain part of the revenue and pass the balance to other local and State institutions. Jangali is very unpopular with graziers, who employ various ruses to avoid paying; it is estimated that only 50-60% of the tax is collect- ed. The dislike of Jangali makes an accurate national cattle census impossible; and measures to enforce tax collection make it difficult for official agencies, such as extension services, to work with the graziers. However, it appears impossible to abandon Jangali in the short run in view of its importance as a -4- revenue source. The present per head tax collection system is nonetheless a constraint on improving the traditional livestock industry and, under the project, studies would be made of alternatives to Jangali (para. 3.21). 2.12 Livestock Supporting Services (Annex 4). The organization of live- stock services varies from State to State.'In the north, animal health and production are jointly the responsibility of the Veterinary Divisions of the State Ministries. In the south, Veterinary Divisions deal with animal health and the Agriculture Divisions with livestock production. In terms of staff, most divisions, whether veterinary or agriculture, appear numerically adequate; but animal production work generally lacks a practical approach. 2.13 In 1965, the Federal Ministry of Agriculture and Natural Resources (FMANR) was created to coordinate all natural resources development at the national level. The Federal Livestock Department (FLD) is one of the six departments comprising FMANR and has four divisions. The Tsetse and Trypano- somiasis Division, established for over 20 years, is well-staffed, well-equipped and effective. It is responsible for the National Tsetse Clearance Program, which is aimed at eradicating the fly from 100,000 sq mi in the Sudan, sub- Sudan and northern Guinea zones. To date, about 35,000 sq mi have been cleared, and the Program is expected to continue for another 15 years. The Planning Division exists only on paper, although.it is expected to be staffed shortly. The Veterinary Public and Animal Health Division is an advisory and regulatory body concerned with meat hygiene and animal health. The Federal Leather Insti- tute is concerned with research and advice on hides' and skins' processing. 2.14 Tle Federal Livestock and Meat Authority, set up in 1969 and incorporated as a federal body in 1971, has wide terms of reference that encompass livestock production, trade, slaughter, processing and marketing. Staffing and management difficulties, and its inheritance of several uneco- nomic commercial enterprises, have caused financial difficulties. 2.15 Extension Services. The effectiveness of extension work with cattle owners leaves much to be desired, particularly in the north. In comparison, animal health services are effective and major diseases are generally under control. Apart from strengthening animal production work, State ministries need to gain experience in pasture improvement and range management. 2.16 Research. The physical facilities for agricultural research gen- erally are verv adequate. Research in livestock is undertaken principally bv Federal agencies and the universities (Annex 4). A general criticism is that nmst research is insufficiently directed towards the solution of prac- tical problems, although a notable exception is the Institute of Agricultural Research at Ahmadu Bello University. 2.17 Education and Tralnin. Degree level training in veterinary science is offered at the Ibadan and Ahmadu Bello Universities. These two Universi- ties as well as Ife and Nsukka also provide degree courses in agriculture. At present, some 40 veterinarians and 100 agriculturalists qualify each year, a substantial output. A two-year diploma course in animal health is offered at the Federal Veterinary School, Vom, and there is a similar course for agricultural technicians at Akure, Ibadan, Samaru, Kabba and Umadike. About 50 veterinary and 300 agricultural technicians receive the diploma each year, - 5 - and their quality is acceptable. It is clear, however, that emphasis needs to be given to encouraging practical attitudes toward problem-solving if Nigeria is to make the best use of its agricultural potential. C. Integration of Agriculture and Livestock 2.18 With few exceptions, crop and livestock production are now separate industries. In the northern states, the only linkages between the two are the grazing of cattle and sheep on crop residues in the dry season, and the use of draught oxen by some farmers. In the south, because of tsetse, commer- cial livestock production is restricted to poultry, which is usually main- tained under intensive battery conditions. Integration of crops and grazing animals would bring major benefits to the agriculture sector, including the diversification of farm production, with forage and feed grown specifically for livestock, better utilization of crop residtues and by-products, and im- provement of soil fertility by animal wastes and crop/pasture rotation. Un- fortunately, the pace of such integration will be slow: in the heavily pop- ulated northern areas, the amount of land available for grazing animals is very limited, and the acquisition of such land is beyond the capacity of the majority of farmers. In these areas, the first objective should be ration- alization of the existing system of grazin,; stock 'm crop residues in the dry season, to bring greater benefits to the farmer; a smallholder fattening scheme is thus included in the proposed project (para. 3.11). Another con- straint to integrated livestock development in the north is that tsetse-free areas that are not heavily populated generally are too dry for crop produc- tion. The greatest potential exists in the very sparsely populated tsetse- infested areas further south, where until now human and livestock populations have been limited by the fly. In these relatively good rainfall areas, a close integration of livestock and cropping should be possible, provided the tsetse-fly is controlled. Little has been done so far to determine the most economical use of land cleared of tsetse-flies, and a study is urgently required. Such study, involving the determination of land use patterns, and infrastructure and organizational requirements, would require the connitment of considerable planning skills which are not yet available in Nigeria. For this reason the proposed project provides for consultants to undertake this work (para. 3.21). D. Credit for Livestock Production 9.19 Commercial bank lending for agriculture is less than 2% of total outstandings, and this lending is mostly to farmers of substantial means for short-term cropping requirements and to well-secured cattlemen for trading purposes. Attempts to organize institutional credit - through regional and state credit agencies and cooperatives - have been largely unsuccessful (Annex 5). Traditional sources of credit for farmers and - 6 - livestock producers are private moneylenders. These meet short-term needs; medium or long-term capital investments in agriculture have been minimal so far. 2.20 Nigerian Agricultural Bank (NAB). To provide a credit channel for agricultural development, Government has established the NAB and is providing necessary funds for its operations. UNDP/SF is financing the costs of the NAB management team for the first three years, and the Bank is executing agency. NAB, whose head office is in Kaduna, would be the credit channel for the project. E. Livestock Development Strategy 2.21 The main objective of Government's livestock development strategy is to reduce Nigeria's large meat imports (para 6.02) through increasing domestic production. This will require the introduction of more efficient production techniques and an intensification of Government's tsetse eradica- tion programs, as national production has almost reached its full potential under the extensive production systems practiced by most beef producers (para 2.05 and 2.06). Against this background Government plans to: (a) help farmers to take up beef production using modern and relatively intensive techniques; (b) open up new grazing areas through tsetse-fly eradication; and (c) provide incentives for nomadic graziers to settle and to enter the market economy. 2.22 The main obstacle to intensifying beef production in the private sector is the very limited experience of both producers and Government agencies in modern systems of pasture and cattle management. Thus before sponsoring private sector development on any major scale, Government needs to better acquaint itself with the technical problems involved, to test and establish technically and economically viable production techniques, and to train its livestock development planning and extension staff in the methods to be trans- ferred to the private sector. To achieve the above, Government plans to develop State-owned ranches in the country's principal cattle raising areas which would test, and subsequently demonstr2t:, improved animal production methods and in addition produce substantial numbers of high quality breeding stock, which im- portantly would include cattle of the trypano-tolerant N'Dama breed, which would be available for sale to the private sector. 2.23 In the field of tsetse eradication, Nigeria has carried out success- fully a major program over the last 20 years in the high grazing potential areas of the Sudan and northern Guinea zones. Government intends to continue the eradication program for another 15 years (paras. 2.13 and 2.18) and to clear -7 - another 65,000 sq mi. This program is fully justified as present grazing areas are already overgrazed, and their extent is being diminished through occupation by farmers. Consequently, the creation of additional grazing land is essential. The project appraised in this report would not be involved directly in tsetse eradication; the Tsetse and Trypanosomiasis Division of the Federal Livestock Department has this well in hand. However, as in the past little attention has been paid to the development of tsetse cleared areas, a study on the most efficient means of exploiting land cleared of tsetse would constitute part of the project. 2.24 The bulk of the country's cattle are owned by nomadic and semi- nomadic graziers. Changes in the outlook and way of life of these people are essential if better use is to be made of Nigeria's cattle and land resources, and if the standard of living of the nomads is to be raised. Experience in how to effect such changes has been obtained in East Africa where groups of pastoralists have been encouraged to settle and use modern grazing methods under the inducement of exclusive rights to the use of range and water resources. It is expected that the provision of clear grazing rights combined with technical assistance would give pastoralists the incentive to settle, to improve their production methods, and to increase their cattle sales. The development of grazing reserves to provide such facilities would be a com- ponent of the project. III. THE PROJECT A. General 3.01 The project would promote improved methods of beef cattle production by nomadic and semi-nomadic graziers, small near-subsistence farmers, larger commercial farmers, and the public sector. It would include the introduction and improvement of research, training, support services for farmers and graziers, and the production of breeding stock for future livestock develop- ment programs. Principal components of the project would be: (a) establishing a Livestock Project Unit (LPU) in the Federal Ministry of Agriculture and Natural Resources to carry out the project; (b) establishing or improving seven breeding ranches; (c) improving two fattening ranches; (d) providing credit and technical support to about 50 commercial farmers and settled Fulani to establish breeding/fattening ranches; (e) providing credit and technical assistance under a pilot scheme for up to 1,500 smallholders to take up beef cattle fattening; - 8 - (f) establishing 1,600 sq mi of grazing reserves, and improving the existing 300,000 ac Kukar Jangarai Reserve in North Central (NC) State; (S-) carrying out pasture improvement researclh; establishing a -ilot pasture seed production scheme; and providing train- ing facilities for government officials, farmers and herds- ;en in practical cattle and pasture management; (h) establishing a pool of heavy equipment for project land development, and road and dam construction activities; and (i) emploving consultants to evaluate the project on a regular basis, to conduct appropriate studies, and to prepare fur- ther stages of the national beef cattle program. .22 Thc project would be carried out over an eight-year period with tlie first year being devoted to staff recruitment and preparatory work. Organizational features are discussed in Clapter V. B. Detailed Features 3.03 Breeding_Ranches (Anne-es 6 and 7; Mlap). Of the seven breeding ranches, two, Bornu and Darazo (60,000 and 2,500 ac respectively), are located in and owTned by North Eastern (NE) State and operated by the State Ministry of igriculture. The remaining five, Upper Ogun, Akuna, Ogboro, Oke Ako and Ibalrapa, are in Western (1X) State, and each extends to about 24,000 ac. Upper Ogun is owned and operated by the Western State Development Corporation, a wholly owned State company; Akuna, Ogboro, Oke Ako, and Ibarapa are owned by tile 1%7 State M4inistry of Agriculture. Under the project, two new companies *would be created: a NE Livestock Company (NELC), owned by NE State, to take over Bornu and Darazo, and a Western Livestock Company (WLC), wholly owned by KIState, to take over the other five ranches (para. 5.04). The principal objective of the breediTng ranches would be the profitable production of breed- ing stock for sale to the private sector. The ranches would also undertake sore fattening through the purchase of feeder steers in order to make use of the heavy pasture growth of the wet season. 3.04 7The Bornu and Darazo ranches are easily accessible and have benefited fror extensive bush clearing, fencing, and water development. However, both ranches operate at a loss. Under tne project, stocking rates would be increas- ed through developing 1,500 and 300 ac of improved pasture at Bornu and Darazo respectively and through improved management of natural pastures. The herds would be developed over project years (PY) 2-6 by the purchase of in-calf heifers and cows of local Zebu breeds. Although soils and topography are good, botlh ranches are in low rainfall areas (about 24 in), and the seven months dry season is long and hot; consequently, provision would be made for supplementary dry season feeding. It is estinmated that with the above measures the ranches would be in full production by PY 7/8, whereafter annual sales would total some 4,500 head, compared with 230 head now. 3.05 The Upper Ogun and Akuna ranches have adequately sized herds, areas of cleared land, some fencing and improved pastures, water facilities and buildings. Ogboro, Oke Ako and Ibarapa, however, are essentially undeveloped and have no stock; and Ibarapa still has to be delineated. Major investments at Upper Ogun and Akuna would be in pasture improvement, 1,500 ac at each in PY 2-4, and some improvement to infrastructure. Investments at the other three ranches, in addition to stock purchases, would be for development of infrastructure, firebreaks and water, and for establishment of 1,500 ac of improved pasture at each ranch during the development period. 3.06 The five Western State ranches are located in areas of high tsetse- fly challenge. Thus, while conditions for pasture growth are superior to those in the north, development is constrained by the availability of trypano- tolerant cattle. Some 6,000 cows and heifers and 350 bulls would be required in PY 2-6 to stock each of the Ogboro, Oke Ako and Ibarapa ranches. Animals of the N'Dama breed would be the first choice because of their proven tolerance to trn.panosomiasis and streptothricosis (para 2.07), and their general ability to do well in the area. Since there is a limited number of N'Dama in Nigeria, it is envisaged that animals would be imported from other countries such as Guinea and Mali; it is recognized, however, these countries may find it dif- ficult to supply sufficient cattle to meet the need of the project during the first years. As an alternative, animals of the Keteku breed, which are available in sufficient number in Nigeria, could be used for grading up with N'Dama bulls; the experience with this crossbreeding is satisfactory in Nigeria. Assuming that stock availability is not a constraint, the five Western State ranches are estimated to turn off some 19,000 animals annually by PY 12/13, of which almost 7,000 would be heifers and 500 would be bulls suitable for sale to private farmers for breeding purposes. It would be a condition of disbursement that the annual investment program for the Western State ranches would be in line with the availability of breeding stock. 3.07 Fattening Ranches (Annex 8). Two existing fattening ranches would be further developed: Manchok (6,000 ac in NC State) and Molkwa (12,000 ac in mW State). Initial development of Manchok and Mokwa was carried out, respectivelv, under USAID and Federal German Covernment assistance programs which are now phased out. Both programs made considerable fixed investment in the ranches and initiated intensive cattle fattening operations on a small scale, essentially feed lots. However, the financial results of these opera- tions were disappointing; experience has shown that neither the feed market nor the cattle market is sufficiently developed in Nigeria to justify intensive fattening metlhods. Yet, these ranches are readily accessible, enjoy adequate rainfall (50-60 in/yr) and acceptable soil type and topography, and possess excellent potential for development as grassland fattening units. In fact, limited pasture trials on the ranches have shown conclusively that high- yielding improved pastures can be profitably established. Therefore, the natural follow-up is the organization of the Mokwa and Manchok ranches into commercial fattening operations based on improved pastures and modern methods - 10 - of cattle and pasture management. These ranches would be operated by the Federal Government-owned National Livestock Production Company (NLPC), which would be created under the project. 3.08 The two ranches would be developed as finishing operations to pro- vide fat cattle for the abattoir at Mokwa, and for the Kafanchan and Kaduna markets. Feeder steers would be purchased and fattened on about a 6-months cycle. Investments, which would be phased over PY 2-4, would be in pasture improvement, water development, stockhandling facilities, fencing, firebreaks, roads, vehicles and equipment. On each ranch 1,500 ac of improved pasture would be established. At full development (PY 4), total throughput of the two ranches would be about 10,000 head annually in contrast to about 3,000 animals fattened in 1972. 3.09 Private Ranches (Annex 9). To help sponsor privately owned breeding/ fattening operations, credit and technical services would be provided to about 30 individuals involved in farming and cattle trading. About 25 of these would be in W State, and 25 in the NE State of whom about five would be Fulani in the 1iubi area. About 30 ranches would be initiated in PY 2, and 10 each in PY 3 and 4. The size of individual operations would vary, but it is estimated that an average ranch would cover about 2,400 ac and be stocked withl about 100 AU 1/ before development. Project-financed development would involve the provision of fencing, water supplies, and firebreaks needed to allow better utilization of natural pastures. Furthermore, limited areas of improved pasture would be established. 3.10 To stock the ranches, in-calf cows or heifers would be purchased in PY 2-5, and steers for fattening in PY 2-7 to make the best use of avail- able forage. N'Dama cattle would be purchased to stock W State ranches, and 1i e Fulani or Gudali cattle for NE State ranches. 3.1t Smallholders (Annex 10). Credit would be offered to up to 1,500 :iv_uals -- ab,out 1,000 in NE State and about 500 in NC State -- mostly s'W-llo1Uers but including some butchers an(d cattle traders to enable them to e in fattening beef cattle. Crop residues, mill by-products, and surplus 'o.all- produced feeding stuffs would be used as feed. Such fattening present- lx is fairly widespread, although not very efficient, tlhroughout the north of Nigeria. The principal objective of the project would be to demonstrate more efficient methods. 3.12 Participants would be individuals of good standing in the coimnunity able to conform with NAB creditworthiness criteria, who would be prepared to construct the simple facilities needed for confining and feeding the animals, and wlho would have sufficient family labor to care for the stock. Plans for individual operations would be prepared by LPU technicians and would include a financial schedule showing the composition and phasing of investments and expenditures. Credit would be supplied in kind by LPU as feeder steers, 1i/ An Animal Unit (AU) is defined as a weaned bovine. veterinary supnlies and feed. LPU would also be responsible for providing subborrowers with technical and marketing assistance. At full development in PY 6, it is expected thaat some 7,500 animals annually would be fattened under the scheme. 3.13 Grazing Reserves (Annex 11). A total of 1,600 sq mi of new grazing reserves would be established -- about 1,500 sq mi in NE State and about 100 sq mi in NC State -- to allow the most efficient utilization of natural grass- land by traditional graziers. The reserves would be accessible areas of good quality grassland, freed of tsetse-flies under the National Program (para. 2.13). T1e land would be acquired and1 declared as Grazing Reserves by the State Governments, and this would be a condition of loan disbursement against expenditures incurred in the grazing reserve subproject. The reserves wvould be developed in units of 100 sq ml each, with four units being completed in PY 2, seven units in PY 3, and five in PY 4. Principal investments would be in firebreaks and roads, water development, stockhandling facilities, and accommodation and transport for Range Development Officers -- one of whom, with his staff, would be responsible for managing a unit. Stocking rates would be carefully supervised to ensure that overgrazing does not occur. In addition to grazing privileges, graziers using the reserves would be provided with dipping facilities and drugs and vaccines for their cattle; initially, they would pay a nominal annual fee of N 0.5/AU (para. 6.07). 3.14 A similar grazing reserve program in NE State financed by UISAID in the last decade has had only partial success. The basic problem has been poor cooperation by some herdsmen and consequent overgrazing. Hlow- ever, it is believed that adequately staffed reserve management teams, as would be introduced under the project, should enable better cooperation with the lierdsmeni. In order to achieve effective grazing control, NE and NC States would delegate to each Aange Development Officer the power to enforce matters stuch as graziiig rights, grazing rotation and destocking (para. 5.06); such powers would be exercised whenever possible through traditional authorities. 3.15 Thle Kukar Jangarai Reserve in MC State is an established 300,000 ac -razing reserve. Under the project, 1,500 ac of improved pasture and necessary :issociated fencing would be established in PY 2-4 to demonstrate tne feasibil- u,o- prading carrying capacity (Annex 11). Presently the reserve carries a-out 40J.000 animlals ir. the wet and 6 ,000 animals in the dry seasons; and it :ias reacliec! its nroduction potential under current pasture conditions. Graz- iers with access to improved pasture would be provided also with dipping facilities and other veterinary services and would be charged a monthly grazin-; fee of I: 0.2/AU. 3.16 Improved Pas tures, Applied Research, and Trainr in,. Competition is acute between crop farmers and cattle herders for land in the Northern States - 12 - (para. 2.10). This competition can be alleviated by increasing the stocking rates of grazing areas in these densely populated zones through introducing improved pastures, and better pasture management methods including the use of phosphate fertilizers to encourage legume growth. Pasture improvement also offers an opportunity for integrating cattle breeding and crop farming by small farmers. The basis of any program of improved pasture development must be the testing of pasture species and varieties potentially suited for Nigerian conditions. The importation of seeds of grass and legume cultivars proven under conditions similar to Nigeria would be undertaken both for planting on project ranches and farms and for testing at Mokwa. Principal importations would be varieties of Panicum maximum, Cenchrus ciliaries, Setaria sphacelata, Centrosema pubescens, Phaseolus acutifolius and Dolichos lablab. To ensure future seed supplies, LPU would operate a seed production section on the Bornu ranch. 3.17 A program of applied research is needed to solve the problems of developing an efficient pastoral industry. Apart from tsetse-fly control, constraints include the high costs of bush clearing and land preparation, and lack of experience in pasture management and in animal management itself. No studies have been made of suitable livestock farming systems, or of the pos- sibilities of integrating the pasture-animal complex into the traditional shifting cultivation of the bush-fallow system. There is an urgent need for work in these areas, and, under the project, an appropriate research program would be initiated at the Mokwa ranch (Annex 13). 3.18 Better training in practical land and cattle management is also needed, and under the project a training center would be established at Mokwa, with an outstation at the W State Livestock Station at Fashola. The center would provide two-year courses, beginning in PY 2, that would emphasize grass- land and animal production, animal health, farm management and production economics. The course would be practical in nature to enable trainees to manage commercial breeding and fattening operations in both the private and public sectors and to qualify as livestock extension agents. The center would also provide short courses for farmers and herdsmen. In addition, the project would provide 16 man-years of overseas training for selected agricultural and veterinary graduates to learn techniques of modern grassland and animal pro- duction in suitable countries. 3.19 Within six months of loan effectiveness the Federal Government would provide the Bank with satisfactory details of the land, buildings and equipment at Mokwa that would be transferred to LPU; the Bank has obtained appropriate assurances to this effect during negotiations. 3.20 Heavy Equipment Unit (Annex 14). The development of ranches and grazing reserves would require the construction of about 100 earth dams and - 13 - some 2,000 mi of firebreaks and internal tracks and roads. These are rudi- mentary civil works which do not require elaborate engineering design and which are generally carried out by ranch personnel and equipment in countries with a well-established ranching tradition. It is the Bank's judgment, how- ever, that providing the ranches and grazing reserves with capability to carry out these works would raise serious questions of training and maintenance. In addition, it is unlikely that the services of private contractors could be secured: first because custom work is not a well-established practice in the rural areas of Nigeria and second, owing to the fact that the works would be dispersed, individually small, located in remote areas and phased over several years, civil work contractors would not be attracted. Therefore, to ensure that the amount of work planned under the project would be achieved on time and with good standards, the project would provide for a 1leavy Equip- ment Unit (KEU) to be established within LPU to procure and operate the necessary equipment. The unit would consist of a full range of tractors, vehicles and equipment necessary to undertake all the major development work called for in the project. HIost of this work would be undertaken in PY 2-4; for this reason, there would be some machine time available in PY 5 and 6 for hire to private farmers and others outside the project. HEU would be led by an experienced engineer who would be responsible, inter alia, for the training of the operating and maintenance staff. 3.21 Consultants. About 10 man-months of consultant time would be employed to assist project management in organizing a system of data collection, re- trieval and analysis for the purposes of continuously monitoring project pro- gress and to undertake annual evaluations of the project. The consultants would report their findings to the Permanent Secretary, FMANR, and to NAB for those aspects of the project that NAB finances. Tue large number of separate project components fully justifies such a periodical "technical audit". Con- sultants would also be employed (about 40 man-months) to conduct studies on livestock taxation (para 2.11), and to prepare detailed specifications for a survey and study of the most efficient means of utilizing land cleared of the tsetse-flies (para. 2.18), and to propose further development activity in the livestock field including appropriate feasibility studies. Outline terms of reference for the studies are set out in Annex 15. During negotiations, assurances were obtained that suitable consultants would be recruited inter- nationally and that their qualifications and experience, terms of reference and conditions of employment would be acceptable to the Bank. IV. COST ESTIMATES AND FINANCIAL ARRANGEMENTS A. Project Costs 4.01 Project costs over the investment period of eight years are esti- mated to total N 27.6 million (US$42.0 million) with a foreign exchange ele- ment of N 13.7 million (US$20.8 million) or 50%. Project costs are detailed in Annex 16 and summarized in the following table: - 14 - Summoary Prolect Cost Estimates - --_-_-_- -N'00 ----------- - US$S000 --------- .% of Local For.ine Tocta Local Foreign Total Total Cost Foreign Eachange NELC Infrastructure and equipment 174 231 405 265 351 616 -57 Breeding cattle 293 - 293 445 - 445 Iscramental fattening cattle 252 190 442 383 269 672 - Working capital 496 233 729 754 354 1108 - 32 Subtotal 1.215 654 1,869 1 847 994 2.841 7 WLC Infrastructure and equipment 875 910 1,785 1,330 1,383 2,713 - Sl Breading cattle 84 1,588 1,672 128 2,414 2,542 -95 Incrementtl fatteniog cattle 607 458 1,065 923 696 1.619 43 Working capital 1,452 1,015 2,417 2,124 1,538 3,662 - 42 Sobtotal 2,968 3,971 8.939 4,505 6,021 10,536 20 57 ILPCLI Infrastructure and equipment 312 351 663 474 534 1,008 - 53 Working capital 351 151 502 534 229 763 30 Subtotal 663 502 1J165 1 008 763 1.771 4 13 Private Ranchers Infrastructure and equipment 932 675 1,607 1,417 1,026 2,443 - 42 Breeding cattle 993 916 1,909 1,509 1,392 2,901 _ 48 1ecremental fattening cattle 452 341 793 687 518 1,205 -43 Working capital 387 213 600 588 324 912 -35 Technical Services 27 - 27 41 - -4 Subtotal 2,791 2.145 4J936 4,242 3L260 7.502 18 43 Smallholder Fattenera Incremental fattening cattle 470 355 825 714 540 1,254 - 43 Sscremental feed 210 - 210 319 - 319 - Technical Services 71 - 71 108 - 108 - Subrotal 751 355 1,106 1i141 540 1.681 4 32 Grasin Rfese-ves Fulani - Infrastructure and equipment 450 368 818 684 559 1,243 - 45 - Other development empenses 1,072 285 1,357 1,630 433 2,063 - 21 Kutkr Iangarsi - Ontrastructure and equipment 130 104 242 210 158 3td - 43 - Other development eoponaes 126 40 166 191 61 252 - 24 Subtotal 1,786 797 2.583 2.715 1±211 3_926 9 31 Po-lect Adninistration and Centrel Services LPU - Vehicles and equipment 9 144 153 14 219 233 - 94 Salaries and wages 589 721 1,310 895 1,096 1,991 _ 55 Other empeoses 190 47 237 289 71 360 - 20 Consultants - 312 312 - 474 474 - 100 Seed multiplication 45 20 65 68 30 98 - 31 Overseas trainiog - 96 96 - 146 146 - 100 Heavy Equipment Unit Machinery and equip.eot 55 1,045 1.100 84 1,588 1,672 - 95 Working capitalM 92 108 200 140 164 304 - 54 Research and training infrastructure and equipmont 76 57 133 116 87 203 - 43 Salaries and wager 216 312 528 328 474 802 - 59 Other expenses 239 64 303 363 97 460 - 21 Subtotal 1,511 2926 4.437 2,297 4.446 6.743 16 66 Toto1 Project Cost Before Price ContinSency 11,685 11,350 23,035 17,755 17,245 35,000 - 50 Price C-otimgencyL3 2,265 2,340 4,605 3,445 3,555 7,000 17 50 TOTAL PROJECT COST 13_950 13.690 27 640 21i200 20.800 42.000 100 5° fL Purchase of steers for fattening would be financed by reasonal bhnk overdrafts und subprojects. Maximm overdraft requirements would build up to about w 800,000 in PY 5 and 6 snd would decline thereafter (Annex 8). f2 Estiated needs to cover about 6 months operating enpenses /3 Sic percent per year crepottrndsd years 1-8. The pWsical contingencies are included in each inrestment category and shown separate2y in the respetfl aDnexes. December 14, 1973 - 15 - 4.02 Project costs are based on recent experience in Nigeria and in- clude a physical contingency equivalent to 10% of estimated costs, a price contingency of 6% compounded annually on both local and foreign costs. B. Proposed Financing 4.03 The Federal Government; the Bank; the NAB; the Western, North Eastern and North Central State Governments; and private individuals are expected to participate in financing the project in line with the following table: State Federal Govern- Govern- Private ment ment NAB IBRD Total …_________- ---US$ millions ------------…--… NELC - 0.90 - 0.48 1.46 2.84 WLC - 3.11 - 1.86 5.56 10.53 NLPC - - 0.97 0.16 0.64 1.77 Private Ranches 1.80 0.10 - 1.40 4.20 7.50 Smallholder Fatteners 0.08 0.15 - 0.34 1.11 1.68 Grazing Reserves Fulani 0.15 1.95 0.61 - 0.61 3.32 Kukar Jangarai 0.04 0.18 0.20 - 0.20 0.62 Project Administration and Central Services - - 2.94 - 3.80 6.74 Subtotal 2.07 6.39 4.72 4.24 17.58 35.00 Unallocated 0.03 1.51 1.18 0.86 3.42 7.00 Total 2.10 7.90 5.90 5.10 21.00 42.00 % 5 19 14 12 50 100 4.04 It is proposed that a Bank loan of US$21.0 million be made to Gov- ernment for a term of 20 years including a grace period of six years for principal. Consequently, the Bank loan would be disbursed before the proj- ect was completed. However costs in PY 7 and PY 8 would be small -- about N 770,000 and N 350,000 respectively -- and the principal expenditure items in these two years would not lend themselves to Bank disbursement. During negotiations assurance was obtained from the Federal Government that it would cause all funds required for PY 7 and 8 to be made available. The Bank loan together with a Federal Government contribution of N 3.9 million (US$5.9 million) would be deployed as follows: a. N 8.6 million (US$13.1 million) would be on-lent to NAB at the same interest rate as the Bank loan for a term of 16 years including six years grace for principal; these - 16 - funds together with NAB's own contribution of N 3.4 million (US$5.1 million) would be used for further on-lending to ranching companies and private farmers and ranchers (paras. 4.07 and 4.08); b. N 1.1 million (US$1.7 million) would be passed on to NE and NC States as grants in aid to cover grazing reserve investment costs in line with Government's policy of grant- ing financial support to the states for high priority de- velopment; c. N 4.4 million (US$6.7 million) would be used to meet costs incurred by FMANR in administering the project, and pro- viding services; d. N 0.5 million (US$0.8 million) would be invested as equity in NLPC; and e. N 3.0 million (US$4.6 million) would be held as a contin- gency reserve. 4.05 The State Government contributions to project costs would be con- tributions to the equity of the state ranching companies, N 0.6 million (US$0.9 million) and N 2.0 million (US$3.1 million) in the cases of NE State and W State respectively; and the direct and indirect costs of state employees seconded to LPU for administration of the smallholder fattening scheme, private ranches and grazing reserve subprojects. The contributions of private individuals would be principally their share of private ranch and smallholder fattening investment costs, about 25% and 5% respectively. Beneficiaries of the grazing reserve subproject would make a small contribution to project costs through the payment of grazing fees. 4.06 A condition of loan effectiveness would be the execution and deliv- ery on the part of the Borrower of a satisfactory subsidiary loan agreement with NAB. C. Credit Arrangements 4.07 The terms of NAB subloans to the state ranching companies, NLPC and private ranchers would be between 13 and 15 years, including a grace of 3 to 5 years for principal, at an appropriate interest rate varying between 5% and 9-1/2%. The subloans would be granted only on the basis of LPU recommenda- tions (para 5.01). In the case of state ranches, NAB loans would be guaran- teed by the respective Governments. NLPC operations would have additional financial needs in the form of seasonal credit for feeder steer purchases, which would be provided through overdraft facilities with either NAB or pri- vate banks. Such overdrafts would reach a maximum of about N 800,000 (US$1.2 million) in PY 5 and 6 and would decline progressively thereafter. - 17 - 4.08 Credit to smallholders would be supplied in kind by LPU, on behalf of NAB for a term of up to 12 months at an appropriate interest rate varying between 5% and 9-1/2%. LPU would meet the cost of these inputs from a re- volving account which NAB would establish with a deposit of N 200,000 to cover estimated PY 1 requirements. LPU would collect 5% of the cost of in- puts from smallholders upon delivery of such inputs and the balance of the cost with interest would be recovered following sale of stock. The proceeds of these collections would be returned to the revolving account by LPU. Credit agreements between participants and LPU on behalf of NAB would specify, inter alia, that each farmer would carry out fattening operations in accordance with technical advice provided by LPU, and would sell his fat cattle at a time and through channels prescribed by LPU. During negotiations, IBRD re- ceived assurances that the procedures, terms and conditions of NAB sublending would be satisfactory to IBRD, and that NAB would submit for IBRD approval, no later than five months after loan effectiveness, proforma subloan agreements for the State ranching companies, private ranchers and smallholders. D. Procurement 4.09 The procurement of vehicles, earthmoving and other equipment, hous- ing and fencing wire (US$4.7 million) would be by international competitive bidding, for all contracts in excess of US$25,000. Domestically manufactured goods would be allowed a preference of 15 percent or the prevailing customs duty whichever is lower; bids by eligible domestic contractors would be al- lowed a preference of 7-1/2 percent. All other procurement of equipment for the State-owned ranches (US$1.3 million) would be through locally advertised competitive bidding procedures, except for small items which would be pur- chased directly. Livestock purchases for the State-owned ranches (US$5.8 million) would not be subject to international competitive bidding because the project requires cattle suited to local conditions that can only be obtained through the traditional trading system in Nigeria or through Government nego- tiated contracts. Participating private farmers and ranches would be free to procure cattle, goods and services (US$10.7 million) through local trading and commercial channels. The construction of on-ranch earth dams, trucks and roads, firebreaks and land clearing (US$2.5 million) would be carried out by HEU (para. 3.20). Internationally recruited staff and consultants (US$2.6 million) would be hired according to procedures acceptable to the Bank. E. Disbursement 4.10 The Bank loan would be disbursed to cover: (a) 75% of subloans dis- bursed by NAB to NELC, WLC, and private ranchers for fixed investments and cattle, (b) 85% of subloans disbursed by NAB to NLPC for fixed investment, (c) 75% of annual incremental disbursements made from NAB's smallholder fatteners revolving fund, (d) 50% of Federal Government grants to the NE and NC States for fixed investments in the Grazing Reserves, (e) 100% of the cost of expa- triate personnel and consultants, and (f) 100% of foreign expenditures or 85% - 18 - of total expenditures for vehicles, equipment and machinery for Project Admin- istration and Central Services. Disbursements against NAB subloans would be made against certificate of expenditures, the documentation of which is not to be submitted for review, but is to be retained by the Federal Government and is to be available for inspection by the Bank during the course of project supervision missions. Estimated disbursements on a quarterly basis are shown in Annex 17. F. Accounts and Audit 4.11 The accounts of NLPC, NELC, and WLC would be maintained by their respective managements. Accounts for other components of the project would be maintained by LPU, whose Project Accountant would also advise the ranching companies on their accounting systems. Individual credit accounts for private borrowers would be maintained by NAB. Assurances were obtained during nego- tiations that: (a) LPU, the ranching companies and NAB would maintain accounting systems, in accordance with sound, consistently applied principles; and that in particular, the ranching companies would maintain separate ac- counts for each ranch; and (b) all project accounts referred to above would be audited annually by independent auditors acceptable to the Bank and that certified copies of the audited accounts, together with the auditors' reports, would be submitted to the Bank within six months of the end of each finan- cial year. V. ORGANIZATION AND MANAGEMENT A. General 5.01 The project's organization would be complex due to Federal/State interrelationships. The basic concept would be, however, that in the eight- year project investment period, the FMANR would play the leading role through the medium of LPU, created within its Livestock Division. For the ranches owned by Federal and State companies, LPU would provide detailed ranch devel- opment plans, and on behalf of NAB would supervise their development and operational progress. Disbursement of NAB loan funds to the ranching com- panies would be conditional upon satisfactory reports by LPU, and such provi- sion would be made in the subsidiary loan agreements between NAB and the ranching companies (para. 4.07). In the case of private ranchers and smallholder fatteners, LPU would assume direct responsibility for the technical appraisal of potential participants, for the preparation of development plans, and for technical supervision of individuals receiving loans from NAB (para. 4.07). Disbursement of NAB loans to private farmers and ranchers would be conditional upon satisfactory reports by LPU; and, in the case of smallholder fatteners, LPU would have more direct control since it would disburse loans on NAB's behalf (para. 3.12). In each State participating in the private sector components of the project, the State Government would second to LPU the staff - 19 - needed for such work and would meet their direct and indirect costs. These staff would be responsible directly to LPU. The Federal and States Govern- ments would arrange for the secondment of staff to LPU to carry out the private ranch and smallholders project components. These arrangements would remain throughout the life of the project and would have the objective of training state employees in the management of such operations. With the same objective and during the project development period, LPU would develop and manage for NE and NC States the Grazing Reserves established under the project, employing staff who would be seconded from the State Governments. For research and training, LPU would be directly responsible for operations at Mokwa and Fashola and would make the final selection of trainees sent over- seas. LPU would be responsible also for the operation of the seed production unit at the Bornu Ranch. It is anticipated that at the end of the develop- ment period LPU would hand over its research and training functions to the regular services of the Federal Livestock Department (FLD). B. Livestock Project Unit 5.02 LPU would be headquartered at Kaduna and be headed by a Project Manager, who would be a specialist in tropical grassland and cattle manage- ment. The Project Manager would be administratively responsible to the Director of FLD, but LPU would enjoy a high degree of technical and financial autonomy. During negotiations assurances were obtained for the establishment of LPU under an administrative structure acceptable to IBRD. The establish- ment of LPU would be a condition of effectiveness of the loan. Two Deputy Project Managers would be employed by LPU, with responsibilities for Northern and Western States' activities respectively, with the latter stationed at Ibadan. Other key operational staff would include a Project Accountant, Ranch Planner, three Ranch Technical Officers, one of whom would supervise the smallholder fattening scheme, and a Chief for the Heavy Equipment Unit. Terms of reference for senior LPU staff are at Annex 18. All the foregoing staff would be recruited internationally; in view of the shortage of experienced personnel in Nigeria it is possible that Nigerians would fill only the posts of Deputy Project Managers and Accountant. Six Nigerian agri- cultural graduates would complete LPU's operational staff; these graduates would be regular employees of FLD and would have specific responsibilities. 5.03 For its research and training functions based at Mokwa, LPU would employ, through international recruitment, a Livestock Production Specialist as Officer in Charge, and two Research Officers, one specialized in tropical pastures and the other in land development. These specialists would be as- sisted by six Nigerian agricultural or veterinary graduates who would be reg- ular employees of FLD. During negotiations, assurances were obtained from the Federal Government that appointees to key positions in LPU would be filled by persons with experience and qualifications acceptable to the Bank. A condition of loan effectiveness would be appointment of the Project Manager' and two Deputy Project Managers of LPU. - 20 - C. Ranching Companies 5.04 The three ranching companies would be owned wholly, initially at least, by the Federal (para. 3.07), NE State and W State Governments (para. 3.03) respectively. A condition of effectiveness would be the establishment of the three companies. The policy of the three companies would be determined by boards whose chairmen would be the General Managers of the companies; these General Managers would be responsible for day-to-day operations. To keep over- heads to a minimum and to clearly define accountability, each ranch would be autonomous within the frame of annual budgets, work programs and operational procedures approved by the company boards. This autonomy would extend to day-to-day management, junior staff appointments, accounting, procurement, and sales. Persons appointed to the posts of ranch managers and ranch bookkeepers would be recommended by the General Managers and be approved by the company boards and by NAB. D. Smallholder Fattening Scheme 5.05 LPU would manage the pilot smallholder fattening scheme (para 3.12) until such time as operational techniques and procedures are proven, when, if agreed by the Bank and Federal Government, full responsibility would be trans- ferred to NE State. The scheme would be staffed by NE and NC State MANR em- ployees working under one of the LPU Ranch Technical Officers. E. Grazing Reserves 5.06 Similar management arrangements as for smallholders would be used for the grazing reserve component of the project except for the Kukar Jangarai reserve which would substantially continue under its management. Thus, NE and NC States would employ the 16 range development officers and support staff needed to manage the scheme and second these to LPU. Details of the opera- tional procedures of the Grazing Reserve Scheme are in Annex 2. In regard to the Kukar Jangarai Reserve, arrangements between LPU and NC State would specify that the latter would assign appropriate staff and would permit LPU to manage the scheme. - 21 - F. Nigerian Agricultural Bank 5.07 NAB would take the final decision on each request for financing made to it although its decisions would be influenced by the technical advice that would be given by LPU. NAB would assign an adequate number of loan officers and clerical staff who would be attached to the smallholder fattening scheme, and to LPU to be responsible for determining the creditworthiness of poten- tial participants in the private ranching scheme. During negotiations, as- surances were obtained from NAB that this additional staff would be appointed and that appropriate arrangements would be made for their accommodation and transportation. VI. PRODIJCTION, MARKETS, PRICES AND PRODUCER BENEFITS A. Production 6.01 Project output would consist of fat cattle, feeder steers and breeding cattle. Approximate full development would be in PY 10. At that time, the incremental annual beef output would be about 4,200 m ton carcass- weight, equivalent to about 4% of 1970 domestic production and worth about N 4.2 million (US$6.4 million). The project would also contribute about 11,000 breeding heifers and 700 breeding bulls annually valued at N 2.3 million (USS3.5 million) for further expansion of the national herd; about 75% of this cattle would be of the scarce trypano-tolerant N'Dama breed. Total annual incremental value of production due to the project at PY 10 would be about N 6.5 million (US$9.9 million). The aggregate herd of all breeding units participating under the project would have increased by about 65,000 AU valued at N 11.0 million (US$16.7 million). B. Markets 6.02 Market Outlook. Cattle produced under the project would be sold domestically. The market outlook is good. The rapid population increase, urbanization, increase in per capita incomes, destruction of livestock re- sources during the civil war, repeated droughts during the last 5 years, in- creasing encroachment of crop farming upon pasture land, and stiffer competi- tion with other meat and livestock importing countries have all helped to cause beef demand to outpace supply. Consequently, between 1967 and 1973 beef prices in Lagos increased 70 to 100%, and indications are that this trend will continue. Beef consumption in Nigeria is estimated to increase between 6 and 8% per annum over the next 10-15 years -- thus doubling in 12 years -- and to approximate 1.9 million head per annum by 1980 (about 270,000 tons of carcass meat) and 2.5 million head per annum by 1985 (about 357,000 tons of carcass meat). With increasing shortages in Cameroon, Dahomey, Togo, Ghana - 22 - and Ivory Coast, and increasing internal demand in Niger and Chad -- the traditional cattle suppliers of Nigeria -- Nigeria is likely to find it in- creasingly difficult to increase its imports above recent levels of 250- 3?0,000 head of cattle per annum (about 40,000 tons of carcass meat). Thus project output (para 6.01) would be absorbed comfortably by the domestic market. Breeding stock produced by the project (11,000 heifers and 700 bulls per annum) are expected to find a ready market in the private sector and future Government livestock development projects. 6.03 Market Facilities and Procedures. Cattle markets exist in all major towns and in many of the smaller ones, but most are little more than meeting places for sellers and buyers and lack even simple facilities such as scales. Auctions are not held and dealings are made individually on an estimated weight basis. Limited as they may be, these markets provide cattle producers with a dependable outlet within easy access. Major cities like Kaduna, Mokwa, Maiduguri, Nguru and Bauchi have modern slaughterhouses with processing and chilling capacities of 20 to 30 animals per hour, but they generally operate well below capacity. The small municipal abattoirs, which handle 90% of all slaughterings in Nigeria, consist of simple concrete slabs. It is estimated that existing capacity can handle at least a 50% increase in throughput. Thus the available cattle marketing and processing facilities are adequate for the project. C. Cattle Prices 6.04 The spread between producer prices and those received by traders at southern markets is broad, reflecting in part the considerable risks taken by traders in moving live cattle over many hundreds of miles. The current minimum ruling price in southern markets is N 0.28/lb (0.43 US$/lb) liveweight; thus, 700-800 lb steers delivered in Lagos or Ibadan sell at N 195-225 (US$295 to 340) each. Further North, however, where the project areas are located, producer prices for 700-800 lb steers range between N 160-180, about N 0.225 per lb liveweight. Size and weight, assessed by eye, determine price; age, sex, quality are of far lesser importance. Calculations in this report are based on the assumption that all cattle for slaughter or fattening would be sold at N 0.225 per lb liveweight. This can be considered a conservative approach in the light of the prevailing market outlook (para. 6.02). D. Producer Benefits 6.05 Financial benefits accruing to the three ranching companies and private ranchers are satisfactory and are estimated as follows: - 23 - Cash Balance After Debt Service Financial Full Develop- Before Full Develop- Rate of ment Development ment Increment Return (PY) (-----------------N----------------) NLPC 6 (44,000) 14,000 58,000 18% NELC 8 (59,000) 46,000 105,000 14% WLC 12 15,000 341,000 326,000 13% Private Ranchers 9 800 8,200 7,400 13% An average smallholder fattening five head of cattle annually under the project would achieve an incremental net income of about N 67 which is sub- stantial if judged against average family incomes in the rural sector of about N 125 per annum. More detailed information on financial returns can be found in Annexes 6-10. 6.06 Financial benefits to individual Fulani graziers utilizing the Grazing Reserves developed or improved under the project are more difficult to quantify because of variation in herd size and the complexity of owner- ship. However, assuming that each family shares the overall benefits of development in proportion to the size of its herd, the growth in family in- comes can be approximated. As Annex 11, Table 3 shows, the value of total offtake from herds using project developed reserves would improve from about N 23,000 before development to N 41,000 per unit (64,000 ac) in PY 10, equivalent to a compound rate of growth of 8%, which would also be the average annual income growth of a participating family. Income prospects would not, however, be the sole nor necessarily the most important inducement for Fulanis to participate in the project; it is probable that the security of tenure offered by the project would be as great an inducement as the cash rewards. 6.07 The ranching companies, private ranchers and smallholder fatteners would pay ultimately the full costs of developing their respective operations. Exceptions would be the costs of technical assistance provided by LPU and the State MANR. These costs would be borne by the Federal and State Governments as is the case for all routine extension activities in Nigeria. Graziers, on the other hand, would pay fees covering only a small part of the devel- opment and recurrent costs of the grazing reserves and would enjoy a sub- stantial subsidy from Federal and State Governments. This is considered justified for what would be the pioneering phase of a much larger grazing reserve program aimed at settling a significant proportion of the country's nomadic graziers. Consequently the fees to be charged under the project would be sufficient to establish the principle that the use of improved land must be paid for, but not too high to discourage participation. The twin problems of the graziers' ability and willingness to pay fees would be studied in detail in the course of preparing the second phase livestock project with the objective of establishing equitable and enforceable fee levels. - 24 - VII. ECONOMIC BENEFITS AND JUSTIFICATION 7.01 The project would be the first major step taken by the Federal and State Governments to develop Nigeria's large potential for grassland beef production and to reap the reward from past investments in animal disease control and livestock-related research and training. As such the project would have large and widespread but unquantifiable benefits which cannot be taken into account in calculating its economic rate of return. This is unfortunate, since these unquantifiable benefits are of far greater value to Nigeria than the direct production generated by the project. 7.02 The project's direct benefits would be the project induced beef and breeding stock production (para 6.01). On the basis of these benefits the economic rates of return from investment in the directly productive com- ponent subprojects are estimated as follows: NLPC, 18%; NELC, 14%; WLC, 13%; private ranches 13%; and smallholder fatteners 15%. The return from invest- ment in the pilot grazing areas to be developed under the project is difficult to quantify, howqever, and would depend on the rate at which nomads settle and begin to produce cattle for the purpose of sale rather than of increas- ing herd numbers. At this time it is not possible to speculate how quickly, or to what extent, this will happen; this component of the project is designed to provide information of this type for use in formulating future policy. The overall rate of return to the project, without taking into consideration the grazing reserves and training component, but including the costs of the Federal Government Livestock Development Unit, is estimated at about 11% (Annex 20). 7.03 The major unquantifiable benefits are: (a) the development of a source of improved breeding stock, especially of trypano-tolerant breeds; (b) the demonstration on a practical scale of the use of improved pastures; (c) the initiation of the private sector into modern systems of cattle pro- duction; (d) the rationalization of development of land freed from tsetse infes- tation; (e) the mobilization of trained Nigerian veterinarians and agricultur- alists to work on a major livestock development program; (f) the demonstration of the feasibility of integrating livestock and crop farming at the small farmer level; and (g) the development of techniques for settling nomadic graziers and inducing them to adopt controlled grazing methods. 7.04 Most aspects of the project, while not new, involve the employment on a significant scale of systems and methods that so far have been employed in Nigeria only on a very restricted scale. Consequently, the project can be classified as a large scale pilot project, with the objective of determining the most efficient means of combining proven technology with the particular demands of the Nigerian situation. 7.05 The direct social benefits of the project such as the creation of new employment opportunities are not large: it is estimated that the project would induce additional employment equivalent to about 900 man-years. On the other hand the project would help solve problems of pressing social concern. One of these is the increasing confrontation between herdsmen and - 25 - agriculturalists in the heavily populated areas of the north; this vould be relieved by the development of grazing reserves of the type to be established under the project, and by the increased use of improved pastures with their higher productive capacity. A related problem is to increase farm incomes in these same heavily populated areas. The integration of livestock and crop production would be attempted through the project's smallholder beef fatten- ing component. A third problem of pervasive importance is that of cattle taxation, and hopefully solutions to this would emerge from studies that would be financed under the project. 7.06 The project represents a logical development from the past work carried out with beef cattle in Nigeria. Without the impetus that would be created by the project, it is likely that few positive changes would emerge in the beef cattle sector over the next several years. VIII. AGREEMENTS REACHED AND RECOMMENDATIONS 8.01 During loan negotiations, assurances were received on the following principal points: (a) procedures, terms and conditions of NAB sublending would be satisfactory to IBRD, and NAB would submit for IBRD approval, no later than five months after loan effectiveness, proforma sub- loan agreements for the State ranching companies, private ranchers and smallholders (para. 4.08); and (b) key staff positions in LPU would be filled by persons witn experience and qualifications acceptable to IBRD (para. 5.03). 8.02 Conditions of loan effectiveness would include: (a) the execution and delivery on the part of the Borrower of a satis- factory subsidiary loan agreement with NAB (para. 4.06); (b) the establishment of LPU (para. 5.02) and the NLPC, NELC and WLC (para. 5.04); and (c) the appointment of the Project Manager and two Deputy Project Managers of LPU (para. 5.03). In addition, a condition of loan effectiveness would be that IBRD had received satisfactory assurances on the part of NC, NE, and W States with resDect to the carrying out of the project, including the secondment of staff, - Zb - 8.03 Conditions of disbursement of the funds earmarked for the U State breeding ranches and the NE and NC States grazing reserves would be that: (a) satisfactory arrangements had been made for the procurement of suitable cattle for the W State breeding ranches (para. 3.06); and (b) NE and NC States had acquired areas as grazing reserves satisfact- ory to IBRD (para. 3.13). 8.04 The project is suitable for an IBRD loan of US$21.0 million on standard terms. ANNEX 1 Page 1 NIGERIA LIVESTOCK DEVFLOPM¶ENT PROJECT The Agriculture and Livestock Subsectors A. General 1. Nigeria is situated in Western Africa between longitudes 2?507 anc 14040' East and latitudes 4020' and 13050' North. It borders on the Atlantic Ocean in the South and shares common land boundaries with Dahomey, Niger and Cameroon. Administratively, the country is divided into 12 states, each starte government being responsible for development of agriculture within its boundaries. The total area of the country is approximately 356,000 sq mi. The land for the most part is flat, rising from the low-lying coastal plains in the south to an altitude of 2,000 ft, in the north. Over 93% of the total area lies below 2,000 ft, and, apart from a limited 5,000-6,000 ft plateau area in the North-Central State and some rangelands along the Cameroon border, the topo- graphy has few distinguishing features. 2. Just over one-half of the land in Nigeria is classified as agri- cultural land. Of this about 45% is cultivated and 55% is in good quality natural grassland. Of the land not considered suitable for agriculture, the greater part is savanna grassland and forest. The majority of soils are ferruginous tropical soils. Ferrasols, lithosols and alluvial soils are also fairly common. For the most part, Nigerian soils are classified as free- draining and of medium to low fertility. 3. There is a wide range of climatic and vegetative zones. The cllr.¢ is tropical, with temperatures for the most part ranging between 650F ancd 9.7-I Rainfall varies from over 100 in/yr in parts of the south to less than 20 in!yr in the north. In most areas there are well defined wet and dry seasons. The wet season extends from about April to November in the south and May to October in the north. Humidity also varies greatly with latitude, being extreme at times in the south and moderate for the most part in the north. 4. The official population estimate of Nigeria is 68 million, with a growth of approximately 2.5% p.a. B. Agricultural Sector 5. Agriculture makes a very important contribution to the economy of Nigeria. More than 80% of the population live in rural areas and some 70,' are employed in agriculture. Less than 50% of GDP comes from the sector. Crop products account for some 80% of the total value of agricultural output ANNEX 1 Page 2 with livestock, fishing and forestry accounting for some 10%, 6% and 4% respectively. Present CNP per capita is estimated at about US$130. The low per capita reflects both the predominance and low productivity of Nigerian agriculture. Value added per worker is estimated at US$ 195 in agriculture, as compared with US$ 513 in industry. 6. Governnent emphasis on development of the agricultural sector in the past has been mainly directed toward increasing export crops such as cotton and groundnut (in the north), cocoa (in the southwest) and oil palm and rubber (in the southeast). The provision of well-organized marketing facilities for these crops by Government has been a noteworthy feature of development strategy. D,v contrast, little has been done to stimulate the production and marketing of other agricultural commodities. Food crop production is for the most part based on a traditional subsistence pattern in which the farmer's first objec- tive is to grow food for himself and his family, with surplus production, if any, being sold for cash in the village. Farms are small and often fragmented, and typically vary between one and seven acres. While there is considerable diversification in food crop production throughout the country, cereal prod- uction predominates in the north while root crops such as yam and cassava are more commonly grown in the south. Because food crop production has histori- cally been identified with subsistence type farming, and because efficient marketing channels have not been organized, there has been little incentive for the individual farmer to increase production beyond local needs. 7. In its Second National Development Plan (1970-74), Government places high priority on development of agriculture, although only some 13% of public sector capital investments are allocated to the sector (Table 1). The plan .lys down the following broad objectives: (a) ensuring adequate food supplies; (b) expanding export crops; (c) producing raw materials for local indus- tries; (d) increasing employment opportunities in rural areas; and (e) strengthening institutional and administrative infrastructure. During the first two years, investments made under the Plan have been considerably less than projected. The main problem appears to be the sector's limited capacity to plan and execute programs; and there appears to be little likelihood that Cie situation might improve in the iTmediate future. Agricultural growth through 1975 is likely to be very small. C. Livestock S. Introduction. In comparison with cropping the livestock subsector is relatively small. However, Government has recently accorded high priority to expanding livestock numbers and particularly to expanding and modernizing its cattle industry. Government action in this respect is prompted by the fact that present beef production meets only 70% of the country's needs. This deficit is met by importing both processed meat and live cattle at considerable foreign exchange cost. In addition, Government has now come to realize that its cattle herd is a valuable national asset, capable of considerable expan- sion, and a means for developing extensive areas of the country unsuitable Lor agricultural production. ANNEX 1 Page 3 9. Livestock products account for some 10% of total agricultural prod- uction. Some 650,000 to 700,000 domestic cattle and 250,000 to 300,000 imported cattle pass through organized market channels each year. Sales of local cattle represent a marketed offtake of 8-9% of the national herd, which is variously estimated at around 10 million head. 10. The Traditional Producer. The national herd of mainly Zebu-type animals is owned almost entirely by nomadic livestock owners, the largest proportion of whom are either Fulani, Kanuri or Shuwa located in the six northern states. The distribution of cattle is a function of tsetse-fly incidence. The largest concentration of cattle is in the Sudan Zone in the north, with seasonal movement south (into the sub-Sudan and Guinea Zones) during the dry season. 11. Cattle farming is undertaken on only a very limited scale in the southern states due to the high incidence of tsetse-fly infestation. Total cattle in the south number only about 200,000. The small and scattered herds are restricted to the N'Dama, Keteku and Muturu breeds which possess good tolerance to trypanosomiasis. Cattle of other breeds seen in the south are invariably trade cattle being trekked from the north to Lagos, Ibadan, Port Hiarcourt, and other southern market centers. 12. Traditional livestock owners of the north are not market-oriented, having little apparent desire to sell their livestock. They prefer to see the herd grow in number, regarding it as a source of pride and security for them- selves and for future generations. They are not large beef-eaters and seldom kill cattle for food; rather they relish milk and value their animals more for dairying ability than for beef production. Milk is sold wherever there is a market, and income from milk sales is the main source of cash for day-to-dav needs. The material requirements of the Fulani are extremely modest and, apart from culling animals for extreme old age, it is only under pressing circumstances such as the necessity to pay head tax or crop damage fines, that they dispose of their stock. 13. While the nomadic herdsmen regard the herd as all-important and devote their lives to ensuring its well-being, they are not by modern standards efficient cattle producers. Calving rates are low (40-50% is common), mortal- ity of stock is relatively high (up to 20% in calves and up to 10% in adults) and growth to maturity is slow (4-5 years). Nomadism works both for and against the herd. It works for it in the sense that, under the harsh conditions that exist, the best available grass is sought in areas of lowest tsetse chal- lenge. It works against it in that the nomadic habit precludes the application of modern production concepts (e.g. improved veterinary hygiene and nutrition, fencing, fertilizers and supplementary feeds), which have proved so success- ful elsewhere in raising livestock productivity. The traditional herdsmen has learned to cope in the face of high odds. However, if he is to survive, let alone expand, in an age in which settlement is continually reducing grazing areas, a change in traditional ways is necessary. Government has decided that, in order to modernize and expand the Nigerian cattle industry, the cattlemen and their herds, or at least a large part of them, must be encour- aged to become more sedentary. ANNEX 1 Page 4 14. Marketing. Cattle marketing in Nigeria is controlled by a well- organized chain of private traders in the north. These traders operate at several different levels, ranging from those who buy a few animals from producers in the bush to those who assemble and dispatch several hundred animals per year to southern markets. Once assembled, trade cattle are shipped either locally or interstate for immediate slaughter. There are no organized intermediate fattening operations, although there appears to be no obvious reason why this should be; the establishment of such enterprises should be encouraged in order to ensure better finish and higher weights of slaughter cattle. Cattle are moved on foot (about 55%), by rail (about 30%), and motor lorry (some 15%). Rates of mortality and shrinkage are significant in all transported cattle; highest losses are experienced by trek cattle. 15. Taking into account the time and trouble involved in assembling cattle for shipment and the losses and risks associated with movements over large distances, there can be a considerable spread between prices received by producers in the north and those received by traders at southern market outlets. The minimum ruling price in southern markets is currently N 0.28/lb liveweight. Thus 700-800 lb steers landed in Lagos or Ibadan are worth N195- 225 each. The price received in the north by the producer of such steers will depend on his location, proximity to alternative municipal markets and other factors, but would be expected to be of the order of N 160-180 each. Size and weight (invariably assessed by eye) are the key determinants of price; factors such as age, sex and quality are of lesser importance. 16. Slaughtering is undertaken throughout the country in facilities of various types. These range from crude slab systems, which are by far the most common, to modern plants with processing and chilling capabilities. There is considerable idle capacity in most plants, which can be called upon to meet any increases in throughput likely in the foreseeable future. 17. Land Tenure. Traditionally, land in Nigeria has been communally owned and administered in trust by family or civic heads with the concurrence of local Government Authorities. Customary Laws governing land allocation vary throughout the country, but in general they all confer rights of occu- pation and use allowing the individual or the group to settle and cultivate the land for a stipulated period. Such rights cannot normally be sold or exchanged between individuals. Federal and State Governments can acquire land for essential purposes on payment of compensation to the traditional owners. Lease of such land can be arranged by nationals for periods up to 99 years. Private companies, both national and expatriate, can acquire land on a leasehold basis from Government. 18. While the farmer prepared to settle and crop the land is reasonably well catered for under customary practice, the nomadic grazier has few land rights, either traditional or legal. Consequently, as population increases and cropping activities intensify, traditional grazing areas are reduced. Government is conscious of this problem and, under the Grazing Reserves Law of 1965, has set aside numerous areas for exclusive use by nomadic graziers. Areas so reserved, however, are proving insufficient and their administration ANNEX 1 Page 5 in some instances is causing difficulties. Government currently is redoubling its efforts in this direction and its attempts to make more land available for grazing under the National Tsetse Clearance Program are evidence of its concern for the problem. Government's intention is to encourage an orderly development of cleared areas and to ensure a balance between cropping, grazing and forestry. With respect to development of the livestock subsector in particular, Govern- ment hopes to reduce grazing pressure in the more overgrazed areas of the north by providing permanent grazing reserves and facilities for settlement in the wetter areas to the south. Unfortunately, due to shortage of staff to plan and supervise the work, controlled development of the areas being cleared of tsetse-fly has not taken place so far. In fact, the surveying and gazetting of lands for use solely as grazing reserves has fallen behind schedule and cleared areas are being settled in a haphazard fashion, with the majority of land being taken up by crop farmers. The net effect is to aggravate the state of tension which exists between agriculturist and pastoralist. 19. Taxation. Historically, nomadic producers have been liable to some form of taxation in the districts through which they travelled with their cattle. At the present time throughout Northern Nigeria this takes the form of a standard annual head tax of N 0.75 per adult animal. The tax is known locally as 'Jangali'. It is collected by the local Government Authority (LGA) which retains a portion of the revenue and passes the balance to other state institutions. The distribution of the tax varies from state to state. In one northern state it is subdivided as follows: LGA 30%; State Government 25%; Local Education Authority 25%; Area Development Board 20%. In another state LGA retains 75% and passes 25% to the State Government. 20. Jangali is unpopular with livestock producers and they do everything to avoid it. An obvious way is to prevent a true count of their cattle being made, and to this end every conceivable ruse is employed. The deception is comparatively successful as it is recognized officially that only 50-60% of revenues due are collected. This conflict also produces serious side effects. For example, accurate national cattle figures are impossible to obtain when the make-up of individual herds is so distorted. Again, measures taken to enforce tax collection make the Fulani suspicious and withdrawn and hence very difficult to work with from an extension point of view. There is no doubt such reactions greatly prejudiced the success of the several USAID efforts to establish viable group ranching schemes throughout northern Nigeria in the 1960's. 21. Attempts have been made to have the tax revoked. But since it represents an important revenue source for LGA, state governments and other local bodies, its presence must be accepted until the alternatives can be studied. 22. Elements of Strategy. Any attempts to improve cattle management and production must aim at maintaining and improving the offtake from the traditional herd as well as developing new intensive methods of production. As a first step, more rational exploitation of areas being cleared of tsetse- ANNEX 1 Page 6 fly by the National Program has to be achieved. At the same time, the economic feasibility of improved methods of production, particularly under commercial ranching conditions, must be demonstrated. The major problems to be overcome in such undertakings are expected to be political and administrative rather than technical and economic. 23. The National Tsetse Clearance Program has already eradicated flies from some 35,000 sq mi in the north and the program provides for the clearance of an additional 65,000 sq mi during the next 15 years. Obviously, this will result in a substantial increase in available grazing which will support a considerably expanded traditional herd. However, it will be some years before this is translated into an increased offtake of cattle for slaughter. Under the present system of livestock management, the rate at which the herd can be expanded is relatively slow (some 2% per year) because of low fertility and high mortality rates. Efforts must be made to increase the rate of herd build-up by better nutrition, veterinary hygiene and general management. Such improvements can only be expected to come about slowly and depend on a more direct dialogue with Fulani producers, the development of well controlled grazing reserves, and the introduction of improved extensive ranching techniques through demonstration and extension. At the same time efforts must be made to encourage the establishment and expansion of beef production in the non traditional subsector. There is mounting interest among farmers in more diversified farming systems involving integration of cropping with livestock and grassland production. More practical research needs to be undertaken on such combinations, and increased emphasis must be given to evolving systems applicable to the various ecological zones of the country. The lead must be taken by Government. 24. In the short term, a measure which could have a far reaching impact on beef supplies is the fattening of cattle now marketed in poor condition from the traditional herds. Almost without exception cattle are now slaughtered at weights well below their mature potential because almost no effort is made to market them in finished condition. There are no well established intermediate tattening operations between grazing areas and terminal markets. There are no obvious technical or economic reasons why animals now slaughtered should not be at least 100 lb heavier on the average -- yielding some 25,000 tons of additional carcass weight per year for little extra investment, time and trouble. Studies and demonstration of such possibilities are urgently needed in order to prevent further squandering of such a valuable resource. The little 'fattening" that is now done is relatively ineffective, usually being based on an arrangement between livestock traders and individuals who hold cattle on crop residues and feed some by-products such as cottonseed and bran. The program is carried out without extension assistance or veterinary control and can be regarded at best as a holding rather than a fattening operation. Fattening of cattle on improved pastures near terminal markets in the north and south represents an attractive possibility, although there could be problems in the south related to the susceptibility of northern cattle to trypanosomiasis and streptothricosis. Control of the former through drug treatment appears reasonably assured, but much further work is required to ensure protection against the latter. Studies along these lines and those suggested above are obviously needed and must be given priority in any program to modernize and expand Nigeria's beef cattle industry. ANNEX 1 Page 7 Table 1. SECOND NIATIONAL DEVELOPMENT PLAN Annual % Real Public Sector Increase in Gross Capital Investment Domestic Product (N Million) % total % Agriculture 265.4 13 1.8 Transport 485.2 24 3.0 Mlining 5.2 - 37.0 Industry 172.2 8 14.3 Education 277.8 14 6.0 All other 845.0 41 4.1 Total Plan 2,050.8 100 6.2 Source: Second National Development Plan, Chapter 27, Table 5 and Chapter 6, Table 7. ANNEX 2 Page 1 NIGERIA LIVESTOCK DEVELOPIENT PROJECT The Fulani and the Traditional Livestock Sub-Sector A. Introduction 1. The six northern states contain approximately 90% of Nigeria's cattle population, estimated at around 10 million head. The Fulani, an ethnic group with their own language and culture have been herd-owners for many centuries. It is estinated that they own some 85% of the total cattle in Nigeria, the balance being held by Kanuri and Shuwa peoples whose system of management and way of life do not differ appreciably from the Fulani. Historically the Fulani have been a neglected society and as a small minority (approximately 3% of the total population of the northern states) in a harsh physical environ- ment, mere survival has long been a constant challenge. Thus, psychologically and in their value system they have been uniquely conditioned. In their cultural orientation the Fulani are strongly traditionalist. They tend to believe in a "steady state" theory of culture and feel that there is only one correct way to live - precisely as their forebears did through the generations. To resist assimilation with the numerically dominant Hausa and culture change generally, they have developed strong ethnocentric attitudes. Like nomads elsewhere, they have a strongly independent personality fostered by their mobility. Thus, if there is coercion, threats, or any form of unpleasantness - real or imagined - they will flee. They are fully aware that compared with sedentary people their life is grueling and in order to avoid losing members to sedentarism they maintain an elaborate propaganda which extols the Fulani life style and the value of cattle, while denigrating all that is non-Fulani. The Fulani passion for their cattle is well known and observers have noted their reluctance to market them. The cattle are also milked and the sale of :ilk and milk products helps meet day to day living expenses. Cattle are normally sold only to meet the most pressing needs such as payment of cattle tax, crop damage fines, marriage expenses and family needs. Until recent times Fulani have expressed little interest in factory produced consumer goods. However, some are now buying items such as raincoats, shoes, transistors, knives, wrist watches, beer, and metal utensils. It is likely that this trend, especially if stimulated through extension, will increase and lead to a more commercial attitude in the long run. B. Social Organization 2. The Family-Household. The basic Fulani herd-owning and tending unit is the simple or compound family: a man and his wife (or wives) and their children. Occasionally one or more other kin or non-kin Fulani may reside with a family, thus enlarging the household. The family-household averages ANNEX 2 Page 2 5 - 6 individuals and 80% of all such groups fall in the range of 3 - 7 individuals. Family households depend on herds averaging 30 beasts, 70% being herds in the range of 10 to 50 head. 3. Nomadic Fulani family-households cluster in groups to form camps. Such camps may vary in size and composition during the annual cycle. Examina- tion of these camps reveals two basic types. (a) Kin-based Residential Units. In the 19th century (and presumably earlier), practically all Fulani lived in camps of around 20 to 40 households. The household heads in these camps could trace kinship links to a common ancestor. A camp was under the leadership of a senior genealogically qualified male (regionally variously called ruga, ardo, dikko, jonwuro, magaji, laniido, sarkin) who was in fact a named lineage. The camp was strongly corporate through its full range of social, political and economic activities. (b) Nonkin Units. Today, most Fulani prefer to live in co- residential units as large as local pastures and water supply will allow. The maximum camp size under the most favorable conditions is about 30 huts (180 people, 900 cattle). Fulani household heads always have a rationale for co-residence in camps. In recent decades two types of non- kin camps have emerged: (i) camps because of grass ("gam fudo"); these are usually temporary dry-season aggregates at the southern limit of migration and formed near lush pastures. They are camps of convenience. "It is better to camp with a stranger than alone." (ii) camps because of friendship ("gam higotiragu"); these are avant-garde herdsmen who in camping together give expression to the modern view that bonds of friendship can be comparable with bonds of kinship. 4. It should be noted that neither of the latter two camp types have the temporal stability of the kin-based camp and also their leadership is usually weak. However, if ideal pastoral conditions can be provided a strong corporate sense would be expected to emerge in time as the traditional nomadic system becomes increasingly threatened owing to land pressure. In general, the Fulani reaction to these pressures as an ethnic and occupational group is to develop a stronger sense of unity and a mood of cooperation in their own ranks. ANNEX 2 Page 3 C. Pattern of Transhumance 5. General. The Fulani are described as nomadic or semi-nomadic but this can be misleading since over the centuries varying degrees of settlement have developed and for the majority "migratory" would provide a more apt description. The extent of settlement amongst Fulani varies widely between areas but informed estimates have suggested that overall some 20 - 25% of cattle belong to settled owners, 30 - 35% to semisettled and 40 - 50% to nomadic peoples. Settled cattle owners include those who live in large towns, villages or more densely populated districts. Their cattle are generally herded on local grazing areas and during the dry season they obtain some feed by browsing crop residues on their own and neighbouring farmlands. So long as cattle can be fed in close proximity to the town, the owner can expect an income from milk sales and, for some months of the dry season, a limited benefit from the manure deposited on his farm during stubble grazing. The settled group also includes traditional cattle-owning peoples outside the urban areas who over the years have developed a degree of dependence on settlement and farming. 6. The seminomadic group of owners are those who generally retain a homestead as a base in their wet season grazing areas and during this time plant some limited food crops. In the dry season they leave for the better grazing of the higher rainfall areas, often leaving behind part of their herd, usually cows and calves, near the homestead together with the older family members and young children. 7. The so called nomadic peoples are those with no fixed abode. They represent the majority and are almost constantly on the move with their cattle. Movement is governed principally by the need to secure the best grazing and lowest tsetse challenge. Even amongst these peoples there is softe limited and sporadic crop growing, usually a little short season millet, when circumstances force the nomad to supplement his income or his family food supply. S. Management and Cattle Movement. Notwithstanding the varying patterns of settlement of the cattle owners, the systems of animal husbandry adopted and the traditional approach to cattle ownership is essentially the same. Ownership of cattle serves not only to provide a living, mainly through sales of milk, but the size of the herd confers a degree of prestige on the owner and basically represents his total wealth. Numbers therefore assume importance and a high premium is placed on the breeding female. In general, slaughter offtake is confined to the immediate needs for cash. There is a complete dependence on available natural grazing as cattle owners make no attempt at pasture improvement. Any management techniques adopted are largely aimed at what may benefit the herd in the short term rather than any long term mainte- niance of grazing capacity. The Fulani has an intimate knowledge of the needs of his cattle and is fully aware of the deficiencies in the quality of dry season herbage. Consequently, full use is made of crop residues in the early dry season. The non-cattle owning farmer generally welcomes, because of the ANNEX 2 Page 4 benefits of manure, cattle grazing on his stubble or being confined overnight on his land. He often makes some form of payment to the cattle owner for this, either in the form of food or an equivalent amount in cash. 9. The basic transhumant movement is southward in the dry season (November to April) and northward in the wet season (May to October). The seasonal movement of cattle is largely dictated by environmental factors, the Fulani herdsman's movements being dictated by the need to provide adequate grazing and water for his stock and to avoid the tsetse areas. He is skilled at maintaining this delicate balance and utilizing his detailed knowledge of conditions over vast areas. In broad terms the animal migratory movement is as follows: (a) During the wet season (May-October) the herds, confined to the tsetse free Sudan zone in the north, are in good condition with adequate grazing. The family unit is together and even amongst nomadic herds camp movements are limited. Cultivated land has to be avoided as crops are growing. (b) After the rains, in late November-December, natural surface water in the north dries up and available grazing decreases rapidly. Those cattle to be moved to the Guinea zone start the seasonal trek to the south, grazing crop residues and swamp areas en route. (c) In the mid-dry season (January-February) the trek southwards continues. In the north both grazing and crop residues are limited, as are water supplies, but the seasonal destocking has taken place. Those moving south complete the journey. This is the coolest time of year (Harmattan) and temperatures and humidity gradually increase during the late dry season (March to April) at which time crop residues are exhausted and bush-fires have destroyed much of the remaining upland grazing. This is the most difficult time of year for both herd and herder. (d) The early rains (April-May) are marked by sporadic thunder- storms and during this period the movement back north to the wet season grazing areas and homesteads takes place, to recommence the cycle. 10. Herds normally set out on a predetermined route that is followed annually, although over the years the pattern will alter as changes take place in the availability of grazing areas or in the boundaries of G. Morsitans belts. There is wide variation between herds in the actual distances covered during the migration but herd movements of between 200-250 miles in one direc- tion are common. Indigenous cattle are well adapted to the harsh environment and the Fulani exploits natural conditions in a management system which re- quires no capital investment. The system is largely an adaptation to ensure ANNEX 2 Page 5 survival and herd productive performance is low. The fertility rate is around 40-50%, mortality is 10-20% for calves and 4-10% for adults, and growth to maturity takes 4-5 years. However, it is felt that even these low levels of production cannot be maintained indefinitely. The traditional pastoralist system is being progressively threatened by pressure on land arising from increasing human population, increased farming activity and by the pressure of increasing cattle concentrations on shrinking grazing areas. In the wet- season grazing areas, progressively larger acreages are being taken over for cultivation. In some cases the resulting concentration of cattle on remain- ing grasslands has caused severe overgrazing. The National Tsetse Clearance Program is doing little to assist this situation as land cleared of tsetse is being utilized in a haphazard fashion. Both croppers and graziers are moving in and the former are laying claim to the majority of land by physical cultivation; the unsettled pastoralist is being given little recognition, in accordance with traditional land tenure customs. D. Present Situation 11. There is an urgent need, in the national interest to reduce these pressures on the traditional cattle sector and increase overall productive performance. To achieve this, land must be set aside for the pastoralist and improved management techniques imposed. This implies a change to a more settled form of husbandry as a step towards a stratification of the cattle industry. This presents major technical and sociological problems. From the sociological viewpoint much has been written and said regarding the Fulani's reluctance to sell cattle and his lack of commercial approach to cattle ownership. An over-simplified explanation is that traditionally the Fulani scorns farming or aiy form of manual labor, that he is not interested in material wealth in the form of consumer goods or in education, that his life revolves around his cattle which for him confer a degree of status deter- mined by the total number rather than the quality of the cattle he owns. Thus by his own standards he hias no reason to sell cattle unless circumstances force him to do so. To this explanation is added the belief that nomadism as a way of life has its attractions and that it is in some way an inherited characteristic of the peoples who practice it. 12. Whilst there may be varying degrees of truth in these statements, there is ample evidence that changes from the purely nomadic life have been made over the long term whiere circumstances have forced them or made them desirable for the individual. Where it has fitted in with his needs the Fulani has responded well to what, by his own standards, are "revolutionary techniques", as is evidenced by his acceptance of vaccination and veterinary health programs. 13. A review of the present situation in Nigeria indicates that major needs of the Fulani are: ANNEX 2 Page 6 - adequate feed for his stock throughout the year; - adequate water supplies; - veterinary attention for his stock; and - extension services. In terms of improving beef production these are essential and their provision forms the basis of these components of the Project directed towards improve- ment of the traditional industry. Under the Project, two separate approaches would be employed (a) provision of basic physical inputs (water, roads, fire- breaks and such) on land being cleared by the National Tsetse Program to allow rational exploitation of the natural grassland areas, and (b) establishment of selected improved pastures on the Kukar Jangarai Reserve (which has already been provided with the basic physical inputs under an earlier USAID program). 14. Under (a) above, some 1,600 sq mi would be involved. The areas would be developed in units of approximately 100 sq mi (i.e. 64,000 ac) with four units being completed in PY 2, seven units in PY 3 and five units in PY 4. Investments would be in firebreaks and roads, water development, stock- handling facilities, housing and vehicles and equipment. The housing and vehicles would provide accommodation and transport for the Range Development Officer (of which there would be one per unit) and his staff. After establish- ment, the stocking on each unit would be carefully controlled to prevent over- grazing and to ensure the most efficient management and rational exploitation of the unit. In addition to grazing privileges, herdsmen would be provided with dipping facilities and veterinary drugs and vaccines for their cattle and in return would be expected to pay a nominal grazing fee for the package of services of N 0.5/AU/yr. 15. Under (b) (para. 13), the Project would establish 1,500 ac of improved pasture - 500 ac/yr in PY 2 to 4 - for the purpose of demonstrating to local traditional producers the value of such pastures in improving total bulk and quality of feed and irn providing a more even seasonal distribution of fodder. Such a development would be a logical follow-on from earlier USAID efforts in the Reserve to provide water, roading and firebreaks to facilitate controlled exploitation of the natural grassland of the area. At the present time the 300,000 ac Reserve inT carrying some 40,000 animals in the wet season and 6,000 animals in the dry season and can be considered to have reached its potential carrying capacity given present inputs. The present efforts would be directed not only to increasing the total dry matter produced from the Reserve, and hence its carrying capacity, but to introducing modern concepts of pasture production and animal management to the traditional sector. Of central importance in ensuring the success of the program would be the pro- curement of suitable cultivars of Cenchrus ciliaris, Setaria sphacelata and Stylosanthe s sp. adapted to the zone and the use of phosphate fertilizer which would be used annually and on a continuing basis to ensure adequate legume vigor. After establishment, subsequent management would emphasize sound grazing and stocking practices, control of stock being achieved through minimum inputs of fencing. In addition to being offered access to improved pasture, herdsmen would be provided with dipping facilities and veterinary services for their cattle for which they would be charged a grazing fee of N 0,2/AU/mth. ANNEX 3 Page 1 NIGERIA LIVESTOCK DEVELOPMENT PROJECT Cattle Health Situation 1. The Veterinary Divisions of the various State Government Ministries of Agriculture are responsible for animal health measures. They generally are adequately staffed and financed to carry out this task satisfactorily. Animal health control has improved steadily over the years. Nonetheless, most of the common West African animal diseases remain endemic to Nigeria as well as to its neighboring countries. The following cattle diseases are of major commercial importance. 2. Rinderpest. Rinderpest formerly was the most important epizootic disease, but due to the JP 15 antirinderpest campaign carried out in Nigeria from 1962 to 1966, its incidence has been greatly reduced. Outbreaks still occur in Nigeria as well as in neighboring countries and the disease remains a major potential threat to the country's cattle population. Rinderpest would not be a danger to the project since all project cattle would be vac- cinated against the disease on a routine basis. 3. Trypanosomiasis. Trypanosomiasis is regarded as the most serious disease now confronting the cattle industry. There is evidence, however, that its importance as a production constraint may have been exaggerated. In many cases lack of proper diagnostic services and ignorance on the part of herd owners has resulted in deaths being attributed to the disease when they have been due to other causes. Consequently, commonly heard statements such as "White Fulani cattle cannot survive in the south due to high tsetse challenge", need reevaluation in the light of the evidence that some graziers now seem to be keeping zebu cattle satisfactorily in areas considered heavily infested. 4. Government has taken active steps to eradicate tsetse-fly in the north. Over the last 20 years the Tsetse and Trypanosomiasis Division (TTD) of the Federal Livestock Department and its precursors have developed a well- staffed and well-equipped organization that has been able to execute success- fully an extensive Tsetse Clearance Program. The Clearance Program is aimed at eradicating the fly from some 100,000 sq mi of the Sudan, sub-Sudan and Guinea zones of the northern states. To date, some 35,000 sq mi have been cleared and the Program is expected to complete its work in the next 15 years. 5. In the south tsetse-fly eradication is much more expensive due to higher rainfall and greater vegetative growth and at present is uneconomic. Thus, an increase in beef production in the south will, for the short and medium term at least, depend on trypano-tolerant cattle such as the N'Dama, West-African Shorthorn type breeds (Muturu and Keteku). Provided the location ANNEX 3 Page 2 of beef cattle enterprises using these breeds is well selected and chemo- prophylatic and curative treatments are used as necessary, trypanosomiasis should not be a constraint on developing a cattle industry in the south. 6. Cnangnious Bovine Pleuropneumonia (CBPP). CBPP is endemic to Northeini Nli.geria, but the W State and generally speaking areas south of 9° North appear now to be free of the disease. CBPP will remain a serious poten- tial danger as long as there are enzootic areas, uncontrolled cattle move- ments, and unwillingness on the part of cattle owners to report outbreaks. At present relatively few cattle, and usually these are those under stress - for example trekking cattle - succumb to the disease. 7. For many years the Animal Health Services have tried eradication of CBPP by slaughtering all cattle in infested zones and compensating cattle owners for their losses. During the last few years, however, outbreaks have increased steadily, and the slaughter policy has become excessively costly. The Animal Health Services have now switched to vaccination. Supplies of vaccines were a problem until recently, but the Federal Department of Veter- inary Research at Vom has increased production in anticipation of a national eradication program which started in 1973. 8. All project cattle would be vaccinated against CBPP (Zebus once and Taurins - N'Dama, Keteku and Muturu-twice a year). Purchased cattle would be subject to vaccination and quarantine, the effects of which would be: a. a reaction disrupting weight increase for several days, and b. distinctive crisis effects among CBPP symptom-free carriers, allowing such carriers to be recognized and eliminated. 9. Streptothricosis. Streptothricosis (a skin disease) is endemic throughout the country and is likely to be an increasing problem in efforts to intensify cattle production in the wetter Guinean areas. Taurin cattle have a high degree of tolerance to the disease, but zebus are very suscep- tible to it. The worst cases of streptothricosis are seen in the wetter south in zebus driven from the north enroute to market. 10. Streptothricosis remains a major problem since no effective treat- ment exists that can be used on a large scale. The use of high doses of penicillin-streptomycine has been successful but such treatments are expensive and uneconomic except in special cases, such as the treatment of draft oxen. Reasonable results have been obtained with cheaper dipping or spraying using insecticides and, if necessary, arsenic drugs and/or quarternary ammonium; all project cattle would be so treated until alternative and more effective treatments are developed. 11. The Farcha Livestock Institute at N'djamena, Chad, is working on a vaccine for streptothricosis, and initial results have been encouraging. Development of an effective vaccine would radically change the situation since it would be more efficient and less expensive than either prophylatic or curative treatments. ANNEX 3 Page 3 12. Helminthiasis. Helminthiasis (worms) is serious and widespread throughout Nigeria. It is a major cause of unthriftiness and,mortality, parti- cularly in young stock. The widespread nature of the disease is encouraged by traditional husbandry practices whereby animals are constantly on the move in herds during the day and concentrated in confined areas at night. Helmin- thiasis is more serious in the higher rainfall areas of the south than in the north. At present very little control is practiced but development of the cattle industry will require the use of control measures with anthelmintics. 13. Other Diseases. Other diseases of lesser importance include black- leg, anthrax and haemorrhagic septicaemia. Outbreaks generally are sporadic and appropriate vaccines are available. Brucellosis and tuberculosis have been identified and could become more prevalent with the intensification of cattle production. Foot-and-mouth disease occurs from time to time though in a fairly mild form. Tick-borne diseases such as anaplasmosis, babeseliosis and piroplasmosis are known but are not regarded as-a serious constraint since they can be controlled by regular spraying and dipping. -Rabies is prevalent throughout the country. ANNEX 4 Page 1 NIGERIA LIVESTOCK DEVELOPMENT PROJECT Livestock Supporting Services 1. General Organization. Responsibility for the development of agri- culture and livestock throughout Nigeria is essentially a state function, although the Federal Government is involved in matters of policy, in establish- ing priorities, and in coordination at the national level. Each State Govern- ment discharges its responsibility through its Ministry of Agriculture and Natural Resources. The organization within each State varies somewhat. Broadly, in the six northern States both animal health and production are under the Veterinary Divisions, whereas in the southern States animal health is the responsibility of the Veterinary Divisions and livestock production of the Agricultural Divisions. Federal control is exercised through the Federal Ministry of Agriculture and Natural Resources (FMANR), which was created in 1965 to promote and coordinate natural resouirce research and development at the national level. Development policy has been made the responsibility of the National Council for Agriculture and Natural Resources, which was set up in 1970 specifically to advise Federal and State Administra- tions on overall policy and planning matters and to make recommendations on priorities and financing in the fields of Agriculture and Natural Resources. The Council is served by separate technical committees embracing Agriculture, Fisheries, Forestry and Livestock. 2. The Federal Livestock Department (FLD). Programs of FMANR are effected throuoh its six departments covering Agriculture, Fisheries, Forestry, Ifeteorology, Research and Livrestock (FLD). The function of FLD is to coordi- nate and implement livestock d'velopment at the national level. In addition, it acts as a liaison between the Federal Government and outside bodies in all livestock matters. It is organized into four divisions as follows: (i) Tsetse and Trypanosomiasis (TTD), (2) Veterinary Public and Animal Health (VPAI), (3) Planning, and (4) Federal Leather Institute. 3. TTD, established over 20 years ago under the former Northern Region Administration, is a well-staffed, well equipped and effective organization. It is successfully executing an extensive National Tsetse Clearance Program. This Program is aimed at eradicating fly infestation from some 100,000 sq. mi. in the Sudan, sub-Sudan and Guinea zones of the northern states to allow use of the land on a permanent basis. To date, some 35,000 sq. mi. have been success- fully cleared and the Program is expected to complete its work in the course of the next 15 years. In addition, TTD undertakes investigations of animal trypanosomiasis and advises the States on treatment techniques and policy. ANNEX 4 Page 2 4. The Veterinary Division is an advisory and regulatory body concerned with standards of food hygiene and veterinary public health. Amongst its responsibilities, the Division controls meat inspection at slaughterhouses in all major cities throughout the country. 5. Extension Services. The infrastructure for agricultural and live- stock extension work is well established and staff on the whole appears to be numerically fairly adequate. Veterinary health services are also well developed and major diseases are generally under adequate control. One problem presenting itself, however, concerns the orientation of animal product- ion work in general. It appears that a much more practical approach has to be given this work and recognition accorded the fact that production work per se is better left in the hands of agricultural or veterinary graduates with specialist training in production techniques than in the the hands of general agricultural or veterinary graduates. The training of the latter, as presently oriented in Nigeria, does not provide a strong enough background in husbandry and production to allow them to function adequately in central roles in the execution of commercial livestock production projects. 6. Besides the need to strengthen animal production work, State Minis- tries need to give greater emphasis to extension activities and range manage- ment. In fact, the start that has been made to train individuals in the latter area requjires considerable expansion to fill the very pressing need throughout the country for range management expertise. At the same time, more attention needs to be given the choice of overseas training centers to vhich candidates are sent. In the past many have been sent to centers lo- cated in countries where conditions are completely different from those in Nigeria and the training acquired has been of limited benefit. In this re- spect, much greater use needs to be made in future of training institutions throughout northern Australia where ecological conditions are very similar to m.uch of Nigeria and where the science of range management is very advanced. 7. A neglected area and one requiring urgent attention concerns live- stock extension courses for farmers. These should take the form of practical field demnonstrations and lectures in improved nutrition and management and serve to introduce newer concepts of husbandry and livestock production tech- nicues. Farmers are interested in these possibilities, and much of the infra- structure necessarv for the organization of such demonstrations and field days is already present. It would require only quite modest budgetary out- lays and organizational skills to implement demonstrations at existing centers in key livestock producing areas throughout the country. 8. Research. The infrastructure for agricultural research in Nigeria is, generally speaking, very adequate. Research in livestock is undertaken bv various agencies of the Federal Government and by the universities. State- government agencies in general are not involved in research to any significant extent at present, although modest programs are being undertaken by the Western State at Moor Plantation and Fashola and by the East Central State ANNEX 4 Page 3 at Umdike. There are, however, indications that several of the State Governments are interested in becoming more involved in the future, partic- ularly in applied research undertakings. This is encouraging since, taking into account the size of Nigeria and the considerable variation in its ecology, it is questionable wqhether the Federal Government and the universit- ies can provide the depth of research, and the detailed work necessary at the applied level, to allow development of livestock industries quickly and efficiently in the individual states. 9. Federal agencies concerned with research in animal health and pro- duction are : The Federal Denartment of Agricultural Research, Ibadan. The Nigerian Institute of Trypanosomiasis Research, Kaduna and Vom. The Federal Department of Veterinary Research, Vom. The latter institution, as well as undertaking livestock research, is respon- sible for the production of all livestock vaccines needed in Nigeria. 1I. Universities with programs in livestock research include Ibadan, Ife, Nsukka and Ahmadu Bello. In general, livestock work tmdertaken by the universities, while of good quality, lacks production orientation and thus is not serving to provide solutions to the real problems confronting the livestock industry. An exception to this is the work being undertaken by the Institute of Agricultural Research (Ahmadu Bello UJniversity) at Shika, which traditionally has adopted a much more pragmatic approach in its programs and has been particularly successful in integrating grassland and livestock re- search in a very effective manner. More of this type of work is needed. A better balance needs to be struck in the future between this approach, the earlier emphasis given to disease control studies by federal institutions, and the academic studies being made by university Departments of Animal Science. 11. In the context of research orientation, the Federal Government has a key role to play through FMANR, the National Agricultural Research Council and the various development committees of the National Council for Agricul- ture and Natural Resources. These federal agencies are in a unique position to determine not only overall development strategy but, through the deploy- ment of their substantial budgets, the priority and emphasis given research and development undertakings in the field of livestock production. 12. Education and Training. Training facilities in agriculture and veterinary science are available at a number of institutions throughout the country; in this respect, Nigeria is comparatively well off. Degree-level training in agriculture is offered at the universities of Ife, Nsukka, Ibadan and Ahmadu Bello. The latter two institutions also provide degree programs in veterinary science. At present, some 40 veterinarians and 100 agricul- turalists qualify for degrees each year. This is a substantial output and ANNEX 4 Page 4 facilities for increasing these numbers are available. In addition two-year agricultural diploma courses are offered at five centers (Akure, Ibadan, Samaru, Kabba, ITmadike). Similar diplomas are offered in animal health at the Federal Veterinary School, Vom. Currently, over 300 agricultural tech- nicians and some 50 veterinary technicians receive the diploma each year. 13. The general quality of graduates and diplomates in agriculture and veterinary science is acceptable. It appears, however, that more practical work is required in all programs to offset the undue emphasis on book learn- ing. All too often students finish their courses with insufficient practi- cal experience and without adequate orientation in the real problems existing in the fields in which they are to work. Further, the development of a prac- tical attitude to their profession, and the ability to define problems in simple terms and provide straight-forward practical solutions, are not suffi- ciently encouraged in agricultural and veterinary students in Nigeria at the present time. These shortcomings are serious and require correction if Nigeria is to make the best of its agricultural potential. ANNEX 5 Page 1 NIGERIA LIVESTOCK DEVELOPMENYT PROJECT Agricultural Credit. 1. Introduction. Agricultural credit is poorly developed in Nigeria. Whenever credit institutions have been established they have been hampered in most cases by political interference, weak management and cumbersome procedures. 2. Sources of Agricultural Credit. Most agricultural credit comes from local moneylenders, friends, and relatives and is generally short-term and sometimes in kind. Credit institutions have not teen successful in Nigeria. Several regional credit agencies have been esftablished in the past 20-30 years, but only two remain; one, in the Mid-West State, is primarily concerned with the collection of old debts; the other, in Western State, has recently started a more active credit program making loans of up to seven years to companies and individuals (mainly for the production of cash crops) with loan supervision by the Corporation's field staff. 3. Also in the Western State, the State Government-sponsored National Bank has made a few medium-term loans (four years) for livestock, but has had little impact on production levels. More successfully, the Nigerian Tobacco Company (NTC) finances the production of fluecured tobacco by family farms on a small scale. Short and medium-term loans up to four years to tobacco farmers are disbursed through the commercial banks on the security of a lien held by NTC over the farmer's production. 4. In the north, there are some very small credit programs operated by the States for the supply of fertilizer; a small but successful program, ad- ministered by Local Authorities, provides farmers with animal drawn plows. 5. Until 1969/70 the commercial banks made loans, guaranteed by Government, to the marketing boards and their Licensed Buying Agents (LBA). Subsequently, a new Federal law designated the Central Bank to handle all the credit requirements of the marketing boards and withdrew Government guarantees for loans to LBA's. The commercial banks now play little part in agricultural lending, which in June 1971 represented only 2.5% of their total outstandings. Short-term crop loans are made to well secured borrowers and senior civil servants; lending for livestock production is insignificant. These banks have been very conservative, with strict collateral requirements for agricultural borrowers. 6. Interest Rates. The Central Bank has a minimum rediscount rate of 4 1/2%; it lends to the Marketing Boards at 6%. The commercial banks' prime ANNEX 5 Page 2 lending rate, usually 2 1/2 points above the rediscount rate, is presently 7%. Short and medium-term loans are made to well-secured commercial borrow- ers at 8-8 1/2% and 8 1/2-9% respectively; medium-term loans to small and medium-sized traders are made by some commercial banks at 10-12%. Money- lenders commonly charge rates of interest in the range 24-50%. 7. Demand for Agricultural Credit. Demand in the past has come largely from the regional or state marketing boards, and their LBA, who make preseason advances to farmers growing those crops covered by the marketing boards. 8. More recently, however, there has been increased demand for credit from cattle farmers and traders, who presently lack adequate holding/fattening facilities and are compelled to sell off cattle quickly rather than hold and finish them to higher weights. In the southern States both livestock produc- tion and mixed farming have attracted entrepreneurs and led to a rapid growth in credit demand which is at present unsatisfied. There is ample scope for further increase in demand if the returns on agricultural investment can be improved. Mechanization is in its infancy, and even a change from the ubiqui- tous hand hoe to simple animal-drawn implements would produce a large credit demand. Rehabilitation schemes for tree crops (which would include improved plants and fertilizer application) and production improvement plans for annual export and food crops (which would include fertilizer and improved seeds) would also generate demand. A more general increase in demand could be brought about by improvements in extension services, the distribution of inputs and marketing arrangements. 9. Central Bank Guidelines. One of the Government's instruments for directing credit to the agricultural sector is the annual directive issued bv the Central Bank to the commercial banks. These guidelines are designed to control the rate of expansion of credit in the economy and its alloca- tion. The 1971 guidelines specified an 8.5% growth in total advances over the comparable months in 1970. By June 1971, however, the credit outstanding was 68% greater than in June 1970 (Table 1). Agricultural lending, which in June 1970 represented only 2% of total outstandings, was programmed for a 150, increase in 1971 (from N 13.42 million), which would have given the sector a 5, share of the total. In fact, agricultural lending only increased to N 10.82 million and its share of the total to 2.5%. 10. The guidelines for the period April 1, 1972 to March 31, 1973 emphasized the allocation rather than the rate of expansion of credit. Com- mercial banks were directed to channel 4% of their total loans and advances to agricultural production (see Table 2) by March 31, 1973, although they expected that even this would not be easy to attain. In addition, they were expected to allocate a minimum of 40% (compared with 35% previously) of their total loans and advances to businesses in which Nigerian nationals retain 51% or more of the ownership. ANNEX 5 Page 3 11. However, the Central Bank guidelines for agricultural lending and the gradual recognition of agriculture's potential have made the commercial banks interested in participating in a livestock development project either as agents of the Government, or as joint financiers with Government. They are prepared to provide short-term working capital requirements and some longer-term loan funds for up to five years or more. Although still cautious, they acknowledge that, given the suPpprt of adequate technical services, re- cognized land occupancy rights together with a lien over livestock could represent adequate security for livestock development loans. 12. Nigerian Agricultural Bank. Government's most important step towards the development of agricultural credit has been the creation of the Nigerian Agricultural Bank (NAB). This would be the first Federal institution organized solely to provide finance for agriculture. NAB was registered under the Companies Act in November 1972; it was officially inaugurated in early 1973. Government is to provide N 12 million from Federal funds - N 1.0 million as share capital and the balance as a long term loan. The main objects of the NAB are set out in its Memorandum of Association as follows: "(a) To grant loans for agricultural production (including horti- culture, poultry farming, pig breeding, fisheries, forestry and timber production, animal husbandry and any other type of farming) and for purposes of storage, distribution and marketing connected with such production to any state, group of states or any state institution for on-lending to any farmer, group of farmers, or body corporate, subject to the state or group of states or state institution guaranteeing repayment of the loan. (b) To grant direct loans to individual farmers, cooperative societies or other bodies (corporate or unincorporate) in appropriate cases, provided that the bank is satisfied that the schemes for which the loans are requested are viable and there is adequate security to cover such loans. (c) To charge interest on loans to meet the full costs of manage- ment including debt servicing, allowing adequate sums to be set aside for general and bad debts reserves before paying any dividend." Government expects NAB to play a major role in agriculture and in the develop- ment of credit institutions in the States. 13. IBRD has worked closely with the Government in planning the estab- lishment of NAB, and is the executing agency for a UNDP/SF project under which a consultancy firm is providinp a senior management team in the early years. ANNEX 5 'Page 4 14. NAB would be the main credit channel for the proposed livestock project. Its head office will be in Kaduna, an important agricultural center, which is also proposed as the location of the Livestock Project Unit to be set up in the Federal Livestock Department. ANNEX 5 Table 1 NIGERIA LIVESTOCK DEVELOPMENT PROJECT Outstanding Credit (N Millions) June 1970 June 1971 Excess of Actual Actual Guidelines Actual over Guidelines Agriculture, Forestry & Fishing 5.28 13.42 10.82 -20.4 Manufacturing, Mining & Construction 72.84 88.22 168.02 90.7 General Commerce 111.20 117.02 168.42 43.9 Services 13.72 15.22 26.22 71.6 Others 40.08 26.62 64.62 142.5 TOTAL 243.12 260.50 438.10 68.1 ANNEX 5 Table 2 NICERIA LIVESTOCK DEVELOPMENT PROJECT Central Bank Credit Guideline April 1, 1972 to TIarch 31, 1973 Percentage Share of Total Loans & Sector Advances (a) Production 45.0 Agriculture 4.0 MTining 4.0 Manufactturing 30.0 Real Estate and Construction 7.0 (b) General Commerce 32.0 Exports 10.0 ITnorts 10.0 Domestic Trade 10.0 Bills Discounted 2.0 (c) Services 11.0 Public Utilitfes 3.0 Transnortation and Communication 8.0 (d) Others 12.0 Credit and Financial Institutions 1.0 Government 2.0 Personal and Professionsl 6.0 'Miscellaneous 3.0 TOTAL (a-d) I00.0 040 p eso RBroh - 2,500 se Haelen 6LL e ..I...... 3 30 12 12 12 1 t asi,g0'u '* ' 51 259 316!3 376 hC4C0 0 40° hloc 0 OWers * 25 25 129 218 263 300 300 300 Settee 9-24 sonths * . .. . .. . .. . .. . .... . ,. 12 12 1 2 63 107 129 14 7 147 St.eraslls 9-24 sootb ...................*. 12 12 12 63 107 129 347 147 Mlers 2-3year * U U U - - - - - Steari/Ils 2-3 Year ............... ... 11...... ........ 11 62 30 - _ Total la ... 1$25 338 548 74 1 951 _ 0 a. 006 1.oc6 Total Anials Uit,AU / lO 313 419 523 6e8 700 706 706 u.n-eu --~~~~~~~~~~!__ -L -- - --- 2 Hell..f......... 1 6 3 2 3 3 4 4 h-Calf Con/Bet? en.- 229~~~~~~~~~~~~~~~om 100 ----- Ttal porPrhse .............. ,_z z. -----o 2.3 81RTALOT Bulls 1. I I 1 - 1 1 1 Ereed,r'Co. '2 2 7 8 8 8 8 weas_r .1 1 1 3 4 5 6 6 Heibfr9-24 antha.1 1 1 1 1 2 3 3 Steers/lhlBs 9-24onths .1 1 1 1 1 2 3 3 itfera 2-3 ars ............. . . ... ........ St.aes/B0l1. 2-3 Yearo ...................... 1 1 1 1 - 1 1 - el mortality. a 8 12 16 14 19 22 21 Skm Cull BuDs ............ - _- 1 1 2 3 3 GuUll 2 .. .......... . - - - 20 20 40 40 Hsifra 2-3 years .- - - - 10 77 78 96 Sters/h21 2-3 ears .- - - - - 3e 63 72 Heifer, 3-4Ianr ............3 - - - ---- Steen/Blls 3-4 p err. 10 10 10 10 11 61 29 - Breadint Bulls, RLoeb Bred, 2-3 year .- - - ............. . 37 63 72 Total . ... 18 10 10 U1 42 235 276 283 TISC)DEAL COMSICIOSIS Calves WaQd. S .50 50 50 60 70 75 75 75 Mortaity .3 3 3 2 2 2 2 2 Cullig Rat Buls % . 10 0 0 10 10 10 20 20 Culling at. Cove %....................10 0 0 0 5 10 10 10 oaliirt Rate Heifer. 2-3 yes .30 0 0 0 0 30 58 67 Buls % ofh se Feale .3 3 3 3 3 3 3 3 Stocking Ratas ome/A/ .25 8 6 4.8 3.6 3.6 3.5 3.5 _t A. hual Unix is eialeot to an .. ot o. r oy f H or re. December 14, 1"3 ANNEX 6 NIGERIA Table 2 LIVRESTOCK DEVELOPMENT PROJECT NF,LC Rmches Bornu Ranch - 60,000 ac Herd Projection ------- ----------------------------- End of Project Year ----------------------------------- Before HERD COMPOSITION Development 2__ 3 _6 7 8 9-21 Bulls . .22 29 43 54 71 74 82 86 91 Breeding Cows . .501 850 1,200 1,600 2,000 2,500 2,500 2,500 2,500 Weaners . ......... 250 250 425 720 1,120 1,500 1,875 1,875 1,875 Heifers 9-24 .............. 121 121 121 208 353 549 735 919 919 Steers/Bulls 9-24 months . . 121 121 121 208 353 549 735 919 919 Heifers 2-3 years 117 117 117 - - Steers/Bulls 2-3 years 117 117 117 119 204 - - Steers, purchased - 645 2,281 3,311 4,019 3,310 2,933 2,559 2,559 Bulls, Ranch Bred, 2-3 years - - 18 15 17 12 Total Animals. 1249 2,250 4,425 6,220 8.120 8,500 8.875 8,875 8,875 Total Animal Units, AU 1/ 999 2,000 4,000 5,500 7,000 7,000 7,000 7,000 7,000 PURCHASES Bulls ...................... 3 8 15 16 23 18 10 10 10 In-calf Cows/Heifers - _ 251 263 249 306 390 - - - Steers .- 645 2,281 3,311 4.019 3 310 2,933 2t.55 2,559 Total Purchases 3 904 2,559 3,576 4,348 3,718 2,943 2,569 2,569 MORTALITY Bulls . . 1 1 1 1 1 2 2 2 Breeding Cows . .15 15 26 24 32 40 50 50 50 Weaners . . 8 8 9 14 22 30 37 37 Heifers 9-24 months 4 4 4 2 4 7 11 15 18 Steers/Bulls 9-24 months 4 4 4 2 4 7 11 15 18 Heifers 2-3 years 4 4 4 2 - - Steers/Bulls 2-3 years 4 4 4 2 2 4 - - - Steers, purchased - - 19 46 66 80 66 59 45 Total Mortality 40 40 70 88 123 161 170 178 170 SALES Cull Bulls .2 - - 4 5 14 18 19 20 Cull Cows .49 - - 59 78 196 245 245 245 Heifers 2-3 years - - - - - - 243 425 606 Steers/Bulls 2-3 years - - - 310 488 653 814 Heifers 3-4 years 49 -- -- Steers/Bulls 3-4 years 113 113 113 115 117 200 - - - Steers, purchased - - 626 2,235 3,245 3,939 3,244 2,874 2,514 Breeding Bulls, Ranch Bred 2-3 yrs - - - 18 35 50 75 Total Sales. 213 113 739 2,413 3,445 4,677 4,273 4,266 4,274 TECHNICAL COEFFICIENTS Calves Weaned % . .50 50 50 60 70 75 75 75 75 Mortality % . .3 3 3 2 2 2 2 2 2 Culling Rate Bulls % 10 0 0 10 10 20 20 20 20 Culling Rate Cows % 10 0 0 5 5 10 10 10 10 Culling Rate Heifers 3-4 years 45 0 0 0 - - - Culling Rate Heifers 2-3 years 0 0 0 0 0 0 45 60 67 Bulls as % of Breeding Females 3 3 3 3 3 3 3 3 3 Stocking Rate: acres/AU 60 30 15 11 8.6 8.6 8.6 8.6 8.6 1/ An Animal Unit is equivalent to an animal of one year of age or more. Dece.mber 1 9 173 ANNUl 6 T-ble 3 NIGEIA LIV15TOCK DEVZGEWMNT ROJECOT 2il Ranches D-razo Ranch - 2.5CO cc I-estact Coati (N) Unit -2 - -3 - - Pro ---- TOTAL Unmt Cast Units Cost Units Cast Units COat Units Cost C 0TEGORY IXED INVCSOItRNT F-rebrea-k end Roasd F.r.bosak. cnd Ceas Tfraks .... ......... Nil. 70 4 280 4 2B o 4 280 12 B40 Road .Mile 230 2 460 - - - _ 2 400 Sub-otal. 74° 28O 28C 1,300 Water D-evloprent Lor ..n............ , , Unit 4,000 14,000 - - - - 4,000 Stank Randllog Fatalities acd Fenoing Hcodl.ag Yard and ap . .Unit 2,4D0 I 2,4c, - - - - 1 2,430 Zattle SCal. Unit 2,ODO 1 2,000 - - - 1 2,000 Fe-ncg.Un Ut 700 2 1.40C0 2 1,400 2 1,bOo 6 4.200 SCb-Total 5,800 1,400 1,40 8,6oC loatch Boaiaass Starage Shed .Unit 2,000 1 2.000 - - - _ 1 2,00C Sob-Total U,000 2, COO Vs.h-los and Esqipeant llotroynle .Unit 450o 1 450 Trootar, C-65 HP .Unit 4,50o 1 4,500 - - - _ 1 4,500 Traler. Unit 8G0 1 B0 - - - - 1 oo Din Rarr. Unit 1,100 1 1,1lOC - 1 1,100 Dis Florh (3furr o v).Unit 900 1 940 - - _ - 1 900 Rotary Otter.i'''' ' ' '''' Unit 800 1 800 - _ - - 1 800 Rntary Partilinzr -tstiotr .....I.. Unit goo 1 9Cc - 90C LavelCing Rarrv.Un..........i. Umt 500 1 OC -_ - - 1 900 Seed Drll .Unit 1,200 1 1,200 _ - - _ 1 1,200 - sl-,t.Ret .......,... Set 400 1 400 - - - - 1 4ho VCtnn-ary Eqoipent .Set 200 1 200 - - - - 1 200 SCb-otal ..,75o 11.750 Pactore Ic-cnns,oent Land C-ing, Seed Bed Preparation and Casing............................. A. 25 100 2,5oo 100 2,500 IOC 2,500 300 7,100 Fertilon- 1/ ............... o 180 25 14,50C 25 14,500 25 41,500 75 13,5900 Sied 2/ . . Lb 1.20 1;050 1,200 1,000 1,200 1,CC0 1,200 3,0CC 3,500 PFstolda 31 ............/ . Gal 10 100 12a0 iCC1.000 100 11000 30Z 3,000 Sob-Total . ...... 9,200 9,200 9,200 27,600 TOTAL FIXED hME VN E S 33,90 10,880 i%Q aO2LQ 1/ Al:-,e appl-oatno- of tnople ap-rphoaphtt at 2.5 c.t/an at casing and 2.5 nat/ac 6 noaths later. A. ca noxg rat oif 10 lb oC cartons/an. 3/ A.-Mca. applitacoo aof ons gel/ac of fomiode. DCeenb-r 1, 1973 ANNEX 6 Table 4 NIGERIA LIVESTOCK DEVELOPMENT PROJECT NELC Ranches Borau Ranich - 60.000 ac Investment Coats (N) Projec t _________________Year___________ Unit ----2---- ----3 - -- ----4 ----TOTAL CATEGORY unit cost Units Cost Units cost units cost Units Cost FIXED-INVISI-MEIW Firebreaks and Roads Firebreaks and Access Tracks .......... Mile 70 12 840 12 840 12 840 36 2,520 Roads ..N................... ile 230 6 1.380 6 1.380 6 1,380 18 4.140 Sob-Total .................2,220 2,220 6,660 Hater Development Bcres .1.................... Unit 11,500 2 23,000 1 11,500 - 3 34,500 Waterpipes ................... Mile 1,150 2 2,300 1 1,150 - 3 3,450 Watertroughs .................. Unit 60 6 360 3 180 - -9 540 Sob-Total .................25,660 12,830 -38,490 Stock Handling Facilities and Fencing Handling Yard and Dih9............. unit 4,600 1 4,600 - - - -1 4,600 Fenc.ing .................... Nile 700 12 8.400 12 8.400 12 8 400 36 25.200 Sub-Total..................13,000 8,400 8,400 29,800 29,800 Noosing and Ranch Buildings House: Assistant Manager ........... Unit 15,000 1 15,000 - - - - 1 15,000 Chief Clerk .............. Unit 5,000 1 5,000 - -- -1 5,000 Plant Operator............. Unit 3,000 1 3,000 - -- -1 3,000 Field Assistant ............ unit 1,000 2 2,000 2 2,000-O 4 4,000 Driver................. Unit 1,000 1 1,000 1 1,000 - -2 2,000 Herds,sn/Laborer/Guard......... unit 500 10 5,000 10 5,000 10 5,010 30 15,000 Storage Shed.................. Unit 4,500 1 4.500 - __- - -1 4.500 Sut-Total................ 35,500 8,000 5,000 48,500 Vehicles and Equipment Four Wheel Drive Vehicle............ Unit 4,500 1 4,500 - --- 1 4,500 Tractor, 60-65 hp ............... Unit 4,500 1 4,500 1 4,500 - -2 9,000 Truck ...............I....I Unit 8.000 1 8.000 - -- 1 8,000O Trailer .................... Unit 850 1 800 1 800 - -2 1,600 Disc Harrow.................. Unit 1,100 1 1,000 - - -I 1,100 Disc Plough (3 furrow) ....... ..... Unit 900 1 900 - -- 1 900 Rotary Cutter ................ unit 800 1 800 1 800 - -2 1,600 Rotary Fertilizer Distributor...... unit 900 1 900 1 900 - -2 1,800 Levelling Harrow.........I....... Unit 500 1 500 - --- 1 500 Seed Drill................... Unit 1,800 1 1,800 - -- -1 1,800 Tools, etc ................... Set 700 1 700 - --- 1 700 Veterinary Equipment .D............et 300 1 300 1 300 - -2 601 Spares _1/ ..................2.000 700 2.700 Sob-Total ................26,800 8,000 -34.800 Pasture Improvement Land Clearing, Seed Bed Preparation and Sowing. Ac 35 500 17,500 500 17,500 500 17,500 1,500 52,500 Fertiliser 2/ .Ton............... 180 125 22,500 125 22,500 125 22,500 375 67.500 Seed 3/.................... Lb 1.20 5,000 6,000 5,000 6,000 5,000 6,000 15,000 18,000 Pesticide 4/ ................. Gal 10 500 5.000 500 5,000 500 5.000 1,500 15.000 Sub-Total................ 51,000 51,000 51,000 153,000 Physical Contingencies 107 ...........15.400 9.050 6J.700 31,15D TOTAL PIXED INVESTMENT..............169,580 99,500 73,320 342,400 I/ 10% of cost of vehicles and equipment excepting four wheel drive vehicle. 2/ Assues application of triple auperphosphate at 2.5 owt/ac at sowing and 2.5 cwt/ac 6 months later. 3/ Assumes saving rate of 10 lb of mixture/ac. _A/ Assumes applicatiaon of one gal/ac of feomicide. December 14, 1973 ANNEX 6 Table 5 LIVESTOCK DEVEOPtIENT PROJECT NRLC Ranches Derazon Eash - 2.500 to Sales. (0eratinz Imoomse. sind Livestock Purchases (N) Before -----------------------Y w Deolspmet 2 45 6 7j 8-21 SALES Cull Nulls 1/ ......................- - 200 200 400 600 600 Cull Cows 27 ..................... SoC- - 3,200 3,20D 6,400 6,500 Heifers (2-3 yearn) 3/ ........-...........- 2,000 15,4o0 55,6oo 19,200 Neifers (3-4 yearn) E' ................. 550 - ------ Steers/Thille (2-3 Fear )/----- 5,70 9,550 10,800 Steers'Bull (3-5years .1,900 1,900 1,900 1,900 2,090 11,590 5,510O - Rreed,hg Bulls (2-3 Yea ') ..............- - - -- 7.500) 12.600 16.400 TOTAL LIVESTOOt SALES ................. 3,150 1,900 1,900 2,100 7,490 53,690 50,160 51,400 OPERATOIM EXPENSES Scince aid Wages Manager . ......................3,6oo 3,6oo 3,600 3,600 3,600 3,600 3,600 Chief Clerk......................1,200 1,200 1,200 1,200 1,200 1,200 1,200 Field Anslotas,t ................ 600 60 o 6oo 600 600 600 o 6o Driver ) -600 1,200 1,200 1,200 1,200 1,200 1,200 Herdsman Laborer ) ~ ,0 ,0 ,0 ,0 ,0 ,0 , Guard - ~~.................. 0 800 800) 800 800 800 800 Sub-Tatal ....................8,500 10,200 11,400 11,500 11,500 11,500 11,500 Fmscirg ..... ............ 0 7 4 1 1 1 Firebre.ks, Access Tracks andi Roads .0.370.510 510.510.51 Stock Koodling Facxltine ..................0 50 70 70 70 70 Water supply.520 22 22 Bualdiongs.7..........................8O 800 800) 800 8cc 800 Sub-Totl.1 ...................1,200 1.830 1,910 2,000 - 2,000 2,000 2,000O Runoing Costs of Vehicles Tr.ctonlj/ .......................1,500 1,500 1,500 1, 500 1,500 1,500 1,500 Motorcycle I2/....................160 i6o 160 160 160 160 itO Sub-Tctal .1.................. ,660 i,660 1,660 i,66o 1,660 1,a6o 1,s60 RePlacesiert of Vehicles cod Equipment 52/ .......1,765 1,765 1,765 1,765 1,765 1,765 1,705 Animl Health Vaccineo soad Drugs 214/ ................570 629 785 1,032 1,050 1,059 1, 05 9 Insectciides jj/..............I....1 313 519 523 688 700 706 706 Sub-Tot.al ....................783 1,05 1,308 1,720 1,750 1,765 1,765 Posture NM-teoaose Son Posture lb/ ...................- 2,250 5,500 6,750 6,750 6,750 6,750 Naturai Pasture 17/ ..................2,700 2,700 2.700 2.700 7,700 2.700 2,700 Sob-Tota.7 ................... ,700 5, 950) 7,200 9,550 9,550 9,4550 9,550 Miscellaneouc A/ ...................825 1.075 1,260) i,5cc 1.500 1.500 1.500 TOTAL OPERATI2O EXPENSES .. 17....0.17..333.22,528..26.703 29395 295529.440 2 94450 LIVESTOCK PU.RCHASES 19/ Sullo ,, S....................... 160 1,800 75 0 500 750 750 1,000 1,000C Is-Cait Cows/Helfers 21./ ...............5 0.000 20, 20 -- TOT .1 LIVESTOCK PURCRASE,S .........20.750.....750.750...000 1.000 TOTAL OPERATING EXPENSES AM0 LIVESTOOK PURtCHASE 1.160.58.83 753.7 27003015 30.1754 3I55 30.50 1/ N200 per bead. 14/ N0.5 per AS per year. .2/ EN20 Per head. Nl 90.0per AU per yeor. N1/5200 per bead. 1/ 2.5 cot of triple superphosphate per so par year at N050 pe too. 5/Ni5Ope rhead. Z7/ 1 cot of triple aoperphospbate per cc per year at 90-60 per too- 1/ 900 Per bead. 300 am. 6/N2190 per head. 1/ 5% of operating expenses. 42/ N600 per head. 52 '/ Lieastock purchases duruog PY's 2 and 3 are treoted as developoent 8/ 54600 per year. costs for fisancong purposes. 2~~~ 54500 per year. 50/ E~~~~~~~~~~~~~~~~~250 per biead. 5-01l 5% of soostosctaon cost beginning sath year fsllowing construction. ososuss values 520 E200 per be ad. of old otructure- as folloos, fe-i" N 6,000; water supply, Nh,0co; building,u N24,000. 1/1, 000 working hours per year at r1.5o per hour for fuel, Oil, grease, spare parts and repairs iL/ 8,00o ail Par Year at NO.02 P-r mile for fuel, oil, goa pare parts, repairs and insurance. i,/ ].59 of cost beelsoogn ofth year ofaoVltis Deceber 14, 1.973 AM 6 NOW 1.23800 M810,0N6O . I1C hal". tPeratasu Boom. sod Livestock Purees..s Pr.oeCt lhvelcaeot 2 ,j S~~~~ ~ ~~ 6 8 59-21 Null Thil. 1/ ................ 00 --800 1,011 2.800 3,600 3,800 4.030o '10 C.. 7 7,0 --9,1.1. 12,4.80 31,360 39,200 39,200 39,200 t4ier (23e'nJ - - :- - - 1.8,600 85,000 121,200 Ilfefra (3-1. pete)* 7,350 - - ----- Ouea&lo(2-3 yamrs) 2'--- - 4.6,500 73,200 917,910i 122,10D Su.ers/iuOa (3-1.yews) 7/2,50 21,47 21,470 21,850 22,230 38,00 ODD tse10og Ball. (2-3........... - - -3,600 7,00 0.0 1,000 Purhased Steer. 8/ .........100.1w0 37 519.20D3 W 63.2.0 51204 9A 402.21.0 TOAL LIVESTOCK SAIM............ 37,020 21,4.70 121,630 389,690 556,910 752,500 690,6o 695,790 203,74.0 2MPUITIIE t091I2 Sale-st es Wag.. to-uctot. ..... 5.000 5,000 5 .030 5 ooon 5,000 5,000 51o .o Satager.....I........3,500 3,500 3,500 3,500 .3,500 3,500 3,500 3,500 .he .ir 1............. ,6oo i,6oo 1,60o i,6oc 1,600 1,600 I 160o 1,60 Plant 4srator ..............1,02 1,000 1,200 1.200 1,200 1,200 1.200 1, 20'0 rus lshiteo 1,8001 2,500 3,000 3,000 3,0DOD 3, ODD 3,000 3, 003O H3d.M/.: ....... ....1,200 2,.00o 2,1.OO 2,500 2,40D 2,4.00 2,500 2,400 HordaecAebora ........... 6,0001 10,0ODD 16,000 16, oDo 16,000 16,00 16,033i i0,000D O.A,d .............1.200 1.600 2.000 2.. 2.00 2. ODO 2.000 2.000O 3.ub-Total ............21,500 27,700 34,700 35,700 34,700 34,700 34,700 35,700 YOouo.=................1,500 1,920 2,340 2,760 2,762 2,760 2,760 2,760 Puro1.roelc,, fleece Tracks sad Road - ~~~110 220 335 335 335 335 335 Slt-k H.Milig facilltiee ad Dp ...050 560 580 580 580 580 Sob 580 heir~pj ............. o, 80 3,c0E5 3,725 3,725 3,725 3,725 3,725 3,75 Buulds,e . ............... .CO h 7 5.175 5.1. 225' Lk .2 &SbT.tcai ........... 6,550 10,370 11,91.0 12,725 12,725 :2,725 12,705 12,725 Tr-ctor, 9h.90 alnsd Eqlpsact F,. Tru.to, 12/ ...............2,250 5,5oo 5,500 5,50 So 5o ,500 5,5oo 5,500 F-i Wh.se Vriro Vehicle !/ ...1,300 1,300 1,300 1,300 1,300 1,300 1.300 1,300 T- / ..............1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 p- .4 .........................1.150 1.150 1.150 1,352 1. 15D 1.050 L1510 1.150 S.b-Tote2........... 6,200 8,h5o 8,45o 8,450 8,450 8,1.50 8,45D e,450 Osplce-t of SehICus ed 2qcip-at 42 ,9601. 6d2Oo 6,4oo 6,420 6,4.20 6,1.20 6,4.2o 6,4.20 IVatcIesedw 1k,so / 3,000 6,00 8,25 10,500 10,503 '0,500 lO,50o 10,500 Iossctlcidos 17/ ...2,000 00 h0OOO 7.ODO 7.L. ..LW .z Otub-T.tai ........... 5,000 10,000 13,750 17,5oo 17,500 17,500 17,500 17,500 Scoe Patture JO/ ............- 322500 02,500 33,750 33,750 53,750 33,750 33,750 asciPesters 121 ......... 27.000 27.OD320 DOO~ 27J. 003.7000 277.2CC 27.000 fib-Totel ............27,000 30,250 a 49,500 60,750 60,750 60,750 60,750 .6o, 750 lAOo-all,,onno 220/............ 3.060 5.060 6.240 2±025 7. 025 7,025 2.021 7.025 TOTA OP0. I MyKK&*0............. Zia 7A.770 12k.250 R117a02 147.570 iWiZ80 R______L a O fine 22.1.::....... 80 52,000 3,750 5,000o 5,750 5,500 2,500 2,500 2,500 Stes -al ..........2 . 50,200 52,600 59,8000 61,200 78,000 - -- Steel, ~~ ~~~~~~ ~~- -Zm950 250.910 364.210 442,090 A6.100 3222.610 281.19 TTLORIN MN LIETOTCK Mt3700 H881.1..8 12.00 37,6 1.1.00 122eOL9 1.6_600 =L12 Zat AL4 - 03701095003 UfNno ,Ip Uzo¶cc PONnspa 2.62 UfLMj 513.10 516.0_0 656.610 594.170 iaLZ0 43l.560 Q1.215 17/ W1620 per lund. II/ 10,000 el.a per Yeor at! 6a3W mile fur foal, oil, g_e._, spans parts, T/ N060 par head.W rapi-a end ioeeoe 0/ 820 9ca hsad, : 10,000 edi. Per Year at NO,$ nr eU.l for fuel, oil, sasse, sparn parts, 1(15 per head. fapairo eastlaorea 4/ 19.0 per husd. 3/ 20% of net baeteac5in th yea of aeqlstlte (incldes alpa4, atotiag MM9 par head. poer plant nlued at N5,030o. 1200 per lead. 3/ 115prA a er 4/ tD per hed 7 1. e 0 a er 9' lh0peryee.a25ctomrpespepaolFspra a er at 9180 per teon, ~' 55 af cntactios moet beginning sits year tallest3g eastruotlos,. Amseesm aloe. a, 5%eX persaUs eapVWse.. of sld straaebene as follow, felg, 930,0301 stock hendlla fasilitius, SM 3 retda evl0ntnet a P sa ai ) te elar. #36,00, blollng, 360,000. 8pahed 33.1 p ar ed. locabs, 14, 1973 ANNEX 6 Table 7 NIGERIA LIVESTOCK DEVELOPMENT PROJECT NELC Ranches Germral Administration - Investment and Operating Expenses (N) Proj ect _______-_--- Year -------------- CATEGORY Unit Cost 2 3-21 FIXED INVESTMENT Vehicles Four Wheel Drive Vehicle 4,500 4,500 Office Furnish1ngs Office Furniture 900 900 Office Equipment 900 900 Sub-Total 1,800o Physical Contingencies 10% 630 TOTAL FIXED INVESTMENT 6,930 - OPERATI1; EXPENSES Salaries General Manager 7,000 7,000 7,000 Secretary/Accountant 3,0oo 3,000 3,000 Chief Clerk/Typist 1,600 1,600 1,600 Driver 600 600 600 Messenger 400 400 400 Sub-Total 12,600 12,600 Transport Vehicle Running Expenses 1/ 1,560 1,560 Vehicle Replacement 2/ 900 900 Sub-Total 2,460 2,460 Office Rental 900 900 Stationery 350 3'0 Postage 350 350 Telephone 250 250 Sub-Total 1,850 1,850 Audit and Professional Fees and Insurances 3,6oo 3,600 Miscellaneous 990 990 TOTAL OPERATINO EXPENSES 21,500 21,500 1/ 12,000 miles per year atN 0.13 per mile for fuel, oil, grease, spare parts, repairs and insurance. 2/ 20% of cost beginning with year of acquisition. December 14, 1973 ANNE( 6 Table 8 NICEERIA LIVESTOCK DEVELOPMENT PROJECT NELC Ranches Casb Flow -- -------------- ------Proieot Year----- - - ------_--___ Before Development 2 3 4 5 6 7 8 9-9-14 5fand After Cash Inflow Livestock Sales - Darazo 2,440 1,900 1,900 2,100 7,490 43,690 50,160 51,400 51,400 51,400 - Bornu 28,840 21,470 121,630 389,690 554,910 752,500 690,640 695,790 703,740 703,740 Sub-Total 31,280 23,370 123,530 391,790 562,400 796,190 740,800 747,190 '755,140 755,140 Developmient Loan 1/ - 262,250 306,873 351,897 356,853 - - - - - State Government Equity Contribution 2/ - 250,000 250,000 100,00 - C- - - -- Total Cash Inflow 31,280 535,625 680,403 843,687 919,253 796,1,90 740,800 747,190 755,140 755,140 Cash Outflow Fixed Investment-General Administration - 6,910 - - - - - - - -Darazo - 33,490 10,880 10,880 - -Bornu - 169,580 99,500 73,320 - - - - - - Livestock Purchases - Darazo 160 41,500 20,750 500 750 750 1,000 1,000 1,000 1,000 - Bornu 580 123,150 307,260 418,010 509,040 446,600 325,130 283,990 283,990 283,990 Sub-Total Fixed Investment and Herd Build-up - 374,650 438,390 502,710 509,790 447,350 326,130 284,990 284,990 284,990 Operating Expenses - General Administration - 21,500 21,500 21,500 21,500 21,500 21,500 21,500 21,500 21,500 - Darazo 17,326 17,333 22,528 26,503 29,395 29,425 29,440 29,440 29,440 29,440 - Bornu 72,140 74,770 106,250 131,000 147,570 147,570 147.570 147,570 147,570 147,570 Sub-total Cash Outflow Before Loan Sevice 90,106 488,253 588,668 681,713 708,255 645,845 524,640 483,500 483,500 483,500 Development Loan Service - 12,457 39,490 70,'781 105,447 217,501 217,501 217,501 217,501 - Total Cash Outflow 90,106 500,710 628,158 752,494 812,702 863,346 742,141 701,001 701,001 483,500 Cash Balance - Annual (58,826) 34,915 52,245 91,193 106,551 (67,156) (1,341-) '46,189 54,139 271,640 - Cumulative - - 87,160 178,353 284,904 217,748 216,507 262,596 316,735 588,375 1/ Development loan disbursed against 70% of total fixed investment and herd build-tp. The loan is at 914 for 13 years includirg 4 years grace. 2/ The a=ount of the contribution is calculated to provide adequate cash to cover against lags in disbursements and possible tax assessments. The latter cannot be estimated until the arrangements for taking over the ranches are known in detail. The financial zate of return is 13.5 over 20 years based on, (a) total cash inflow from sales; (b) total cash outflow before loan service; (c) incremental herd value of N 1,211,280; and (d) taking no account of losses and sunk costs before develcpment. December 14, 1973 bISERLK ~~~~~~~~~~~~~~TableI -LIVESTOCZ OW P}NT PROJECT F £cn-ni hunhes t(layr kun, Akun-) 24,000a _E ach tHid Profectisn (Each Ranch) --- ~~~~~~~~~~~~~~~~-------~--------- ---J-FProject Year ----------------------------------------------------- Before HERS COMPOSITION Develone1nt 2 3 4 5 6 7 8 9 10 it 12 13-21 Bulls ...................... 70 68 80 90 102 99 115 132 137 156 157 157 157 Breeding Cows .1,200 1,988 2,236 2,490 2,795 3,110 3,555 4,092 4,673 5,318 5,936 5,936 5,936 Weavers 656 860 994 1,342 1,743 2,096 2,333 2,666 3,069 3,505 4,004 4,452 4,452 Heifers 9-24 months 325 318 417 487 658 854 1,027 1,143 1,307 1,312 715 715 715 In-calf Heifers ............ 520 - - - - - - - -- Steers/Bulls 9-24 months ... 310 318 417 487 658 854 1,027 1,143 841 150 150 150 150 Steers, Purchased , , - - 850 1,946 2,787 2,063 1,254 465 - - - - - Breeding Bulls, Bench Bred, 2-3 years .- - - - - 20 22 25 42 44 43 43 43 Total Animals .3081 3,552 4.994 6.842 8,743 9.096 9.333 9.666 10.069 10. 505 11.005 11.453 11. 453 Total Animal Units, AU 1/ 2,425 2,692 4,000 5,500 7,000 7,000 7,000 7,000 7,000 7,000 7,001 7,001 7,001 PURCHASES Bulls .9 - 14 20 23 19 21 25 14 16 - - - Steers.. 850 1,946 2,787 2,063 1,254 465 - - In-calf Cowe/Heifers 520 - - - - - - - - - - - - Total Purchases 529 - 864 1,966 2,810 2,082 1,275 490 14 16 MORTAL ITY Bull .2 2 2 2 2 2 2 3 3 4 4 4 4 Breeding Cows ...........,. 36 47 60 45 50 56 62 71 82 94 107 119 119 Weanrs .20 20 26 20 26 35 42 47 52 61 69 80 88 Heifers 9-24 months 10 10 10 8 10 13 17 21 23 26 26 14 14 Steern/Bulls 9-24 months 10 9 1o S 10 13 17 21 23 17 3 3 3 Steers, Purchased.. - - _ 17 39 56 41 25 9 - _ _ _ Total Mortality 78 88 108 100 137 175 181 188 192 202 209 220 228 SAIES CulBll Bs. 7 - _ 8 9 20 23 27 31 35 39 39 39 Cull Cows .116 - - 110 122 274 305 348 401 458 523 582 582 Heifers 9-24 months - - - - - - - - - 192 1,003 1,247 1,467 Steers 9-24 months ......... - - - 466 1,354 1,568 1,812 2,032 Heifers 2-3 years 148 - - - - - 25 50 56 64 58 - - Steers/Bulls 2-3 years 301 301 308 409 477 575 750 901 978 680 - Steers, Purchased .- - - 833 1,907 2,731 2,022 1,229 456 - - Breeding Bulls, Ranch Bred,2-3 yrs - - - 50 65 80 100 100 104 104 104 Total Sales ............. 572 301 308 1,360 2,515 3,650 3,190 2,635 2,488 2,883 3,295 3,784 4,224 TECHNICA, COEFFICIBITS Calves WeaAed % . ..... 55 50 50 60 70 75 75 75 75 75 75 75 75 Mortality % . .3 3 3 2 2 2 2 2 2 2 2 2 2 Culling Rate Bulls % 10 0 0 10 10 20 20 20 20 20 20 20 20 Culling Rate Cows % ........ 10 0 0 5 5 10 10 10 10 10 10 10 10 Culling Rate Heifers 9-24 months % 0 0 0 0 0 0 0 0 0 13 58 64 67 Culling Rate Heifers 2-3 years % 0 0 0 0 0 0 3 5 5 5 4.5 - - Bulls s % of Breeding Females 3 3 3 3 3 3 3 3 3 3 3 3 3 Stocking Rate: acres/AU 10 8.9 6 4.4 3.4 3.4 3.4 3.4 3.4 3.4 3.4 3.4 3.4 1/ An Animal Jnit is equivalent to an animal of one year of age or more. Dermber 14, 1973 ANNEX 7 NIGERIA Table I LIVESTOCK DEELOPHEN PROJET -WLc Reaches Start up Ranches fOghboro. Oke-Ako. lbarapa) - 24. 000 ac Rach- Herd Ppoiectior~ (Eachian,h) …-- - - - - - - - - - - - - - - - - - - ---- Project Yea… - - - - - - - - - - - - - - - - - - - - - - - - - - - Befr Develo= nt2 2 3 4 5 6 7 8 9 10 11-21 HERD COŽ400SflI0N Bulls..............31 30 52 73 96 128 220 1~40 151 153 153 Breedinig Cows.......... 1,031 1,000 1,470 2,186 2,775 3,506 3,827 4,375 5,096 5,096 5,096 Weassers.- 515 500 882 1,530 2,081 2,630 2,870 3,281 3,822 3,822 Heifers 92mots- 250 245 432 750 1,020 1,289 613 613 613 Steers/Bulls 9-24 months ....- 250 245 432 750 1,020 1.66 120 220 320 Steers, PurchaLsed........ 1,000 970 1,478 2,251 2,265 866 - - - - - Breeding Bulls, Ranch Bred, 2-3 yrs - - - 25 30 20 18 18 Total Anisal........ 2,06 2,515 4j000 5,882 7,530 8,8 8 !a 8,870 9,281 9,822 9,822 Total Animal Units 2/ .... 2,062 2,000 3,500 5,000 6,ooo 6,000 6,01 6,000 6,000 6,0occ 6,ooo PURCHASES BuIs ..............31 - 23 22 32 43 20 26 17 18 iS in-calf Cows/Hetfers ...... 1,031 - 500 500 500 500 - - - - - Steers ............. 1,000 970 1,478 2,251 2,265 866 - - --- Total Purchases ....... 2,062 970 2,001 2,773 2,797 1,409 20 26 17 18 18 MORTAlITY Bulls .............- 1 1 1 2 2 3 3 3 3 3 Breeding Cows ...... ...- 31 30 29 44 56 70 77 88 102 102 Weaners ........I....- 15 10 18 30 41 52 58 65 76 Heitfers 9-24 months ...... - - 5 5 9 15 20 26 12 12 Steers/Bulls 9-24 months ....- - 5 5 9 15 20 3 - 2 2 Halters 2-3 years ....... - - - - - - - - - Steers/Bulls 2-3 years .....- - - - - ----- Steers, Purchased .......- 30 29 30 45 45 17---- Total Mortality .......- 62 75 80 ll-9 151 161 172 178 i84 195 SALES Cull Bulls ....... .....- - - - 7 9 25 28 33 33 33 CullI Cows ....... . I...- - - - 107 136 344 375 454 499 499 Batters 9-24 months ......- - - - - - - - 793 995 1,260 Steers/Bulls 9-24 months .... - - - - - - 1,123 1,286 1,488 1,793 Steers/Bulls 2-3 years ......- - 245 240 423 660 900 45 - - Steers, Puirchaedel....... - 970 941 1,448 2,206 2,220 84; - - - - Breeding 'Bulls, Ranch Bred, 2-3 yrs - - - - - - 50 70 98 100 100 Total Sales -.........970 941 1,693 2,560 2,788 1,928 2,496 2,709 3,ll5 3,645 TECHNITCAL COEFFICIENTS calves weaned~ - ....... 50 50 60 70 75 75 75 75 75 75 Mortality %.-..........3 3 2 2 2 2 2 2 2- 2 CullingBRate Dulls % -......0 0 0 10 10 20 20 20 20 20 Culling Rate Cows % .......0 0 0 5 ~ 5 10 10 10 10 10 Culling RateBHeifers -24kmonths %- 0 0 0 0 0 0 0 56 62 67 Bulls as %of Breeding Females- 3 3 3 3 3 3 3 3 3 3 Stocking Bate: acres/Au -.... 6.6 4.8 4 4 4 4 4 4 4 R/ epresents animals purchased at beginning of Year 1. 2/ An, Animal Unit is ecuivalent to an animal of one year of age or more. December 14, 1973 ANNEX 7 NIGERIA Table I LIVESTOCC DEVELOPMENT PROJECT -tRsnches O*-Geing Ranclbes CgJer Ogun. ,,Ahl) - 24.000 ac Each Invst3at Costs (Each Ranch) (N) _ _------------------Project Year ----- --- + Unit ------2------- --------3------ ------ 4____--- TOTAL CATEGORY Unit Cost Units Cost Units Cost Units Cost Units Cost FIXED IVESTMEPT Firebreakcs and Roads Firebreaks and Access Tracks ................. Mile 20 10'1 701 70C A 3,450 Roads.Mile ~~~~ ~~ ~~~~~~ ~~ ~~239 1.150; ,5 La4 . 1 l ....................... ........................................ . Mil , Sub-Total I1,850 3,85d ' 5,550 Water Developsent , Dam3 ..........................2...... .... Unit 67 2 13.800, 1 6,900, 3 20700 Fencing ....Ma Mile 700 io: 1 0 7.0001 10' 7000 30 21.000 Housing and Ranch Buildings House: Herdsman/Laborer/Guard ..... .......... Unit 5X 10 5,000! - _ - _ 10 5,000; Storage Shed .......... ....................... Unit 4,5O00 1 - - _ 1 Sub-Total.' 9,500 9,500 Vehicles and Equipment Four Wheel Drive Vehicle ...................... Unit 4,500 1 4,500 I 4,500 Tractor, 60-65 HP ........ .................... Unit! 4,500 1 4,500 1 4,500 2 000 Truck, 5-Ton ................................. Unit' 8,000, 1 8,000 1 ,000 Trailer ...................................... Unit' 800 1 800 1 800B - _ 2 1,600 Disc Harrow .................................. Unit 1,100 1 1,100 - - 1 1,100 Disc Plough (3 furrow) ...... ................. Unit 900 1 900 - - _, - 1 900 Rotary Cutter ................................ Unit 800, r, 800 !. 1+ 800 - _ 2 1,600 Rotary Fertilizer Distributor ..... ........... Unit! 9001 1, 900 1 900 _ - 2 1,800 Levelling Harrow ........ ..................... Unit' 500 1 500 - - - 1 500 Seed Drill ........... ........................ Unit' 1,800' i 1,800 - - - _ 1 1,800 Tools, etc . .................................. Set; 700 1' 700 - _ - - 1 7rO Veterinary Equipment ....... .................. Setl 300 1 300 - - - _ 1 300 Power Plant J .........U....................... Unit' 8,000 1/21 4,000 - - - - 1/2 4, 000 spares 2/ ., 2.430 700 - 3.130 Sub-Total ............................ 31,230 7,700 - 38,930 Pasture Improvement Land Clearing, Seed Bed Preparation and Sowing Ac 25 500 12,500 i 5001 12,500 LSOCj 12,500 1,500 37,500 Fertilizer 2/ ................................. Ton 180 1 25 22,500 125 ' 22,500 i 125 22,500 375 67,500 Seed I ....................................... Lb 1.j20 5,000 6,000 5,000 6,000 5,000! 6,000 15,000 18,000 Pesticides 2/ ................................. Gal 10 500 5-°°° 5001 500' 5 0 1,500 15,000 Sub-Total ............................ 46,000 46,000 46,ooo 138,000 Physical Contingencies 10% ...... ............... 10.940 6.950 5490 23.380 TOTAL FDE ISVESTI1T ....................... 120,320 76,400 60,340 257,060 _~ ~~~~~~''W _ ..- ____ 1/ A power plant is required only at the Akuna ranch. 1/ 0% of cost of vehicles and equipsent excepting foar wheel drive vehicle. / Assu application of triple superphosphate at 2.5 cwt per ac at sowing and 2.5 cwt per as 6 months later. Assumes sowing rate of 10 lb of mixture/ac. A/ ssases application of one gal/ac of formicide. December 14, 1973 NIGERIMOR7 Table 4 LIVESTOCK DEVELOPMENT PROJECT WLC Ranches Start-Up Ranches (Ogboro, Oke-Akn, Ibarapa) - 24,000 as Each Investment Costs (Each Ranch) (N) Projlect Year Unit ------ 2 ------3------ --- TOTAL CATEGORY Unit Cost Usits Cost Units Cost Units Cost Units Cost FIXED ISVESTMENT Firebreaks and Roads Firebreaks and Access Tracks ................. Mile 70 10 700 10 700 10 700 30 2,100 Roads .Mile 230 5 1.150 5 1.150 5 1 5 15 3.450 Sub-Total 1,850 1,850 1,85Q 5,550 Water Deselopment Dams .Unit 7,000 2 14,000 1 7,000 1 7,00q 4 28,000 Stock Handdling Facilities ano Fencing Handling Yard and Dip j. .Unit 4,600 1 4,600 1 4,600 - 2 9,200 Cattle Scale .Unit 2,390 1 2,300 - - - 1 2,300 Fencing .mile 700 10 7.000 10 7.000 10 7.000 30 21.000 Sub-Total 13,900 11,600 7,000 32,500 Hous ing and Ranch Buildings Eouse: Manager . .Unit 20,000 1 20,000 - - 1 20,000 Assistant Manager . .Unit 15,000 1 15,000 - - 1 15,000 Chief Clerk . .Unit 5,000 1 5,000 - - 1 5,000 Plant Operator .Unit 3,000 1 3,000 - - 1 3,000 Field Assistant/Driver Unit 1,000 7 7,000 2 2,000 - 9 9,000 Herdsman/Laborer/Guard ..........a.... Unit 500 18 9,000 1 2 6,000 101 5,000 4O 20,000 Vehicle Shed/Workshop . .U........ . . Unit 7,000D 1 7,000 1 7,000 Cffice/Storeroots ........................... Unit 2,500 1 2.500 _ - _ 1 2.500 Sub-Total 68,500 8,000 5,000 81,500 Vehicles and Equipment Faur Wheel Drive Vehicle ...................... Unit 4,500 1 4,500 - 1 4,500 Tractor, 60-65 P .Unit 4,500 1 4,500 1 4,500 2 2 9,000 Truck, 5-Ton .Unit 8,000 1 8,000 1 8,000 Trailer .Unit 800 1 800 1 800 - 2 1,600 Disc Harrow .Unit 1,100 1 1,100 - 1 1,100 Disc Plough (3 furrow) .Unit 900 2 1,800 - 21 1,800 Rotary Cutter .Unit 800 1 800 1 803 - 2 1,600 Rotary Fertilizer Distributor .Unit 900 1 900 1 900 - 2 1,800 Levelling Harrow .Unit 500 1 500 - 1 500 Seed Drill .Unit 1,800 1 1,800 - I _ 1 1,800 Tools, etc. Set 700 1 700 1 700 Veterinary Equipment .Set 300 1 300 - 1 300 Power Plant .Unit 8,000 - I 8,000 - 1 8,000 Spre '; ...... .' . . ...... .............. .60 5 0 4.100 Spares .2/ 2.600 1.500- Sub-Total 28,300 , 16,500 44,800 Pasture Improvement Land Clearing, Seed Red Preparation and Sowing Ac tia 500 30,000i 500 30,000 500 30,000 | 1,500 90,000 Fertiliser /. .......................... Too 180 125 22,500 125 22,500 125 22,500 5375 67,5001 Seed j/ ...................................... Lb 1.20 5,000 6,000 5,000 6,000 5,000 6,000 15,000 18,000) Pesticide .................................. Gal CO 500 5,000 500 5.000 500 5.0001 -1,500 15.000 Sub-Total 61,500 63,500 63,500 190,500 Physical Contingencies 10% 1..9000 Q i S 8.450 38,300 TOTAL FIEE TAVEM T 209.050 }19.300' -. _ it Caeity of 1,0O0 heaS. 2/ 107, of cost of vehicles and equipment escepting four wheel drive vehicle. 3! Aas9uae application of triple superphoephate at 2.5 cwt per ac at sowing and 2.5 cwt per ac 6 souths later. 4/ Assess sowing rate of 10 lb of mi.turelac. 5/ Aessees application of one gal/ac of formicide. December 14, 1973 SNNBS 7 Table 5 LIVESTOCK D071VPE220n PROJECT W10 Ranches s Balg Raaches (Uppe OMn, Akaa -. 24,000 an Eac_h Sales. Operatia &P.-ce and tLcvataik Prch-se. (Each R-nh) 137T0G0RY D-nnnlp-tn 0 0 9 10 11 12 13-21 CmlT ",lln I/ .......... .-..-..1,360 1,330 3,90 3,310 4,530 5,270 5,950 0,630 6,630 6,630 lul Can 27...............- - 1, 303 15,863 35,620 39,653 45,290 52,030 50,590 63,990 75,660 75,6,60 hoern- (93259 -cths) 31 .......... - - - - - - 23,000 120,360 169, 640 176,000 d.A-f-r (2-3 year) 7 - -....-..-..- 5,000 10,007 11,200 12,800 11,400 -- Oten02s(9-24 aaathn) j/ .......... - - 37,280 108,320 125,24,0 154,960 162,5bC Iteern/Buln (2-3 yearn 6/ ...... 36,120 36,960 49,080 57,240 69,000 90,000 108,120 117,360 81,600 - - - Orn-L0r )alln (2-3 fears 7/ -......- - - 9,000O 11,700 15,400 08,000o 18,000 15,723 10,720 1B,720 P-rhan-d Ste-r 8/ -............116,620 266. 990 382.340 283.080 172,060 63.850 -__- - - '0)A1 100017000 SALES . 5.......36,120..3..94617181,380 31610 4999.360 433,390 3~44910 12L5.808 309,25 3 70.04 395l1 0P08TI1C EXPENSES1 F-cgor................. 5,000 5,000 2,000 5,000 5,000 5,000 5,000 5,000 5,000 5, -,0 5,000 5,00 ;cclnnact Maaer.g. ............3,500 3,500 0,2900 3,500 3,500O 3, 500 3,500 3,500 3,500 31,530 3,500 3,500 ,Sa-l Clark.1..............,600 1,600 0,600 1, 630 1,830 1, 600 1,600 1,600o O,aOO 0,600 1,000 1,600 Plan.t .p.r....r/....a..a 1,200 1, 20 0 1,200 1,200 1,200 1,000 1,200 1,200 0,200 1, 200 1,200 1,200 FOied A-nta-t 91~,.. 1.......1,800 2,400 3,000 3,00O 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,OC0 Oma.. )-............1,200 2,900 7,400 2,900 2,900 2,900 2,500 2,500 2,900 2,400 2,900 2,900 dnrdemsn/laoarnr 10.6,200 10,000 16,000 16,000O 16,000 10,000 i6,ooo 06,000 16,000 16,000 16,000 14,000 Onard )-1.200 1.800 2,000 2,000 2,000 7,700 7,000 2.000 2.000 2.080 2,000 9,554 8tb-Octal ..............22,300 27,700 35,,700 34,700 39,700 35,700 34,700 39,700 35,700 34,700 39,700 39,7001 Fenacag .1............... 75 1,120 1,945, 1,810 1,910 0,00 0 l,8i0 1,810 1,810 1,510) 1,800 0,013 Firrhrraka, Access Traces nd Ocads ....- 95 185 080 280 iot 280 280 284, 280 280 280 Sta±, Handling Fadlltnes cad Dip ....250 250 250 2)0 250 750 250 05~0 250 250 250 2570 Water Sapply .................o t,15o 1,980 1,485 1,485 1,985 i,485 1,555 1,1485 1,985 1,485 1 ,555e Ouhl&ngc. ................ . 150 2,280 2,280 2,284 25280 2,280 2,28 260 2.8 ,484 2,284 2.201 24424 Oct-Tctal ..............3,275 1,885 5,6a5 6,io5 6,t05 6,100 6,135 6,_05 6,ic5 0,165 6,111 1,05 Vehic1c c-d Eqinprect T-tcore 12/ ...............3,250 4,500 9, 500 9,50o 4,500 L5,00 9,500 4,500 4,5oo 45,000 4,5oo 9,500 Far Whaeel DrIes Vshicln I/ ...1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300) 1,300 Teac 14/ ............1,000 1,500c 1,500 1,100 1,000 1,500 1,500 1,500 1,500 1,500 1,500 1,500 Pacer flash.1..........50.... i 4,444 1,3150 1,150 1,150 1,150 1,150 1,150 1. 1150 1.10 111 1,150 Sal-Tcta.1 .............6,200 8,450 8,950 8,950 8,4551 9,51 8,950 8,150 8,95o 8,950 8,450 8,4510 hep:ace-t AL VehIcl sd Eq-ap-et 2. 5,370 6.0770 6,770 6,770 6,770 6,771 6,770 6,770 6,771 1, 770 6,772 6,770 kalcal Health Vaci-c and Drugs 16/.....9,o4o 6,050 8,250 15,500 10,50@ 10,500 00,500 10,500 10,500 10,500 1>600 10,500 Iconaici dna !I/ .............2.692 49.D 5_ C 7000 5.500 7.020 7,000 ",544O 7,002 ASC 7,000 7. 000 7,03 7000 S.b-Tatal ..............6,732 10,000 13,750 17.500 10,500 17,500 17,500 17,500 17,513 17,100 17,500 17,503 P-c-oarle icstese-a dSa- Pa-=,en 9 8.......- 11,250, 22,500 221,720 33,710O 33,750 33,750 33,750 33,700 33,750 33,750 33,750 Scna Bna 19/......8......,2oo 10, 1,000 24_544 C)54O 44,45 COO 5, 18.0 00 18,000 18,000 10.000B x IOO 45,454 S.h-T.tl.10............. 8,mo0 29,250 40,500 51,75o 51,050 51,750 51,7510 51,750 51,710 51,750 51,750 57,750 BMincalace- 20/............. . 3.095 49.350 5.990 626 6,265 1 ,265 6 75 6265 6,265 6 .265 _n.L 265 6,265 TOTA1. OPERATIIO EXPENES..........0.. 18 69,972 1,90 115,325 131,590 131,550 131,55 131,590 131,59 131,550 o1,9oa 031,550 131,563 LIVESTOGK P02HA045S 21/ Hello 22/................- 5,900 7,000 8,050 6,aOo 7,356 8,750 4,700 5,600 --- Otners 54/ ............... .- 85.000 194.630 278.700 2 16,300 125,100 66,5100 TOTAL LIVE1T008 P10C2SE ............ 35020 201200 600 5 28645430 272,950 132.750 55,251 9.900 ,54, 40 - TOTAL OPERA71N0 EXPENSES AND LIVESTOCK PURCHTASES 9655 69.972 1i1i305 316,925 918.290 59,499 269.290 186,790 036.26 137.150 131,5ho 131,540 131.59o _I,9 1170 per head. LS/ 207 af ..s. at ara-taro, echias and aqaipact -sd 10% at ... at fpave 2j/ 2N130 per head. pl.et hegiosing with y-e cf eaqiheiains. Enistis p-an plast a-Uppar 31 01120 per land. 16' "0.5--ter 57 per year N/ 200 per head 17/ 01.00 pn 0 eryer N per d 517/ 2.3 tw at triple eape-phaphete per en per yea at,N1B pee tea, 20 IB per head. 19/ 1_cat at triple .sp-ephoephate pee a pee yea It 0188 pee ten 2a,882e 7/ N1400 p-e head. T/ 55- of aPer..ti cei --t 3, 0190 per head, 2~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~1 / Trectcd ae dsnelapas aceatI yearn 3 cd 94se TInl. 17). 9/ N600 per head. al/ 1352 Per head. 94/ 000 per head. -31 1103 per head. 11 5 f na-et-atia cast behecinig dth year tfl1ca-ng anatrutj-a Anoes- ealne nO ld nautarte as fnl11ne, fonchg, N65,500, t- cah-bdllag fa-iliti-s, N5,000; cater spply, 09,000; huild-ags, N236,000. 12-/ 1,500 a-keg hcn per Year an N1.55 per hour for fuel, nil, grease, Pare pten cad repar. 4/ 10,000 milee per year at B 0.13 per salO far toel, all, grease, spars parts, rpepirs and i--ra-e 10,000 allen per year at 20 0.15 per ails far Ocel, al, grea, spare parts, repac and iha.n-rce December 19, 1973 ANNEX 7 Table 6 NIGERIA LIVESTOCK DEVELOPMENT PROJECT7 IIC ~Ranches Start-Up Ranc.hes fOgbore Oke-Akc, Ib.anapa)_-_24,00aEc Slar, sOpating RaEness assd Lie-t-kh Pereha-e (Each Ranc h) (N) CATEGORY_ 2 3 4 56 7 0 9 10 01-21 10111S Cell Sells 1/ ......- - - 1,190 1,530 4,250 4,760 5,610 5,610 5,610 Cel Cans 57 .-.....-.....-....13,910 17,660 44,720 46,750 59.020 64,870 64,870 Helier (9-24 ecetha) 3/.-....-...-...- - - - 91,160 119,400 151,200 S--cere /11 (9-24 creche) ..A.-.........- - - 89.840 102,800 119,040 140,240 lccrre/Bells (2-3 year) 5/- - 29,400 29,900 50,760 79,200 108,1000 5,400 - -- Breedicg lulls (2-3 years) 6/ - - - - - 9,000 12,600 17,640 18,609 18,6000 Purhased Steers _/............... 15,800 13,740 202.720 308.840 310.801 118.866 - - - - TOTAT,LIVES10OCK SALES............. 135_800 1176 2200 5240 3076 5630 263.950 285.710 3690 329,920 OPERATING EXPENSES la1-ie- aed Rages Mange.0,503.................. 5,0 500C 5,000 5,111 5,300 5,000 5,600 u,000 0,009 5,000 Asi.teaR Mea-gen....... .53,500 3,506 3,500 3,500 3,5000 3,360 3,500 3,500 3,500 3,500 C46cr Clerk ......... ...1,600 1,600 1,636 1.600 1,606 1,600 1,600 1,600 1,600 1,600 Plac t Gperase-/Mechacic .0.......... ,200 1,200 1,200 1,300 1,200 1,200 1,300 1,200 1,200 1,200 Field A-ilstaet 8.1..... 600O 2,400 3,000 3,6000 3,000 3,000 5,000 5,000 3,006 5,000 Delvr -. ............. 1,200 2,400 2,450 2,400 2,400 2,400 2,400 2,400 2,400 2,400 Herd-ae/Lahcr.rr /.......:.... 6,003 8,800 14,090 14,1000 14,3000 14,000 14,000 10,000 14,000 14,066 Geard ....... ... 1.200 1J600 2.030 MOOQ j,000 .2.000 2.000 2.006 2.000 ..L000 S.h-Tcta.1 ............... 21,100 26,500 32,700 32,700 52,700 32,700 32,700 32,700 32,700 32,700 Msiaten....r 00/ en-lg ....................345 600 1,035 1,535 1,035 1,035 1,035 1,035 1,035 Fireeakead Ras95 135 280 200 280 280 280 200 280 Star M idle Fcltiesae lp ......345 575 575 575 575 571 175 575 575 Wacer lepply.............690 1,035 1,380 1,380 1,360 1,380 1,380 1,386 1,380 Buildings.2.......I......3410 3,810 4.060 4,360 4,060 4.060 4.060 4.060 4,060 S.h-Tao.6. ............... ,805 6,245 7,330 7,330 7,530 7,330 7,530 7,550 7,330 Tne-C.,a, Vehicle and 1qispnn ..t esn .r...c_ (I. ................. 2,250 4,500 4,500 4,500 4,500 4,500 4,500 4,000 4,500 4,500 Fac WheelDreEv Vehicle 12/ ......... 1,300 1,300 1,350 1,300 1,300 1,300 1,300 1,300 1,300 1,300 Onech 13/1,505 1,580 1,500 1,500 1,500 1,5000 1,5000 1,500 1,500 1,500 year plant.. 22 1,150 1.150 1.150 1,150 120 12220 1.153 1.150 Seb-Toa.I. ............... 5,090 6,430 8,450 8,400 0,400 8,400 8,450 8,450 8,450 8,4500 Replacenct sO Vehicles cod Eqeip-ert 14/... 5,140 7,370 7,376 7,370 7,570 7,370 7,370 7,570 7,370 7,370 Anleal Health Vaccine and Dregs 137............ 3,005 5,250 7,550 9,000 9,2000 9,000 9,060 9,000 9,009 9,000 1aserticides 16/ ............... 2.000 3.500 5,999 6.000 69,000 6,000 6.000 6.000 6.000 6.000 Sob-Trtal ................ 5,003 8,750 12,500 15,006 15,300 15,000 10,000 15,000 10,000 15,000 Pa-tore Maintenne Inper-ed P-stae 17/.............. - 11,250 22,500 33,750 33,750 33,750 53,750 55,750 55,750 33,750 Natarel Pessare 1a/.............. 18.003 18,000 18 005 18,000 MO,99 18,999 a...... ....,..... 180 18.008 Sch-Teta.1 ............... 18,003 29.250 40,500 01,710 51,750 11,750 51,750 51,750 01,750 51,750 Slselere 19/............... 2.735 4.260 5 590 6,1309 6..1&U0 6,130 6j130 69 130 6.130 6.130 TOTAL OPERATING EXPENSESO............ 57 6420 89 4635 1,5 128 '30 128 730 1870 120 730 6275 18731870 LIVESTOCK PURCHASES 20/ Bells 21/.................. 10,853 0,050 7,700O 11,208 15,050 7,500 9,100 5,930 6,309 6,300 Ic-Calf Cesas/Mnilers 22/ .......... 206,200 100,000 100,000 100,800 100,300 - - - - - Se.ren 23/.................. 197.000 147.800 225 100 .2929950 86,600 --- TOTAL LIVESTOCK PURCHASES0.414.050.255850.332.830 337_700 2160 7.5-00 9_100 5.~950 6_300 6_300 TOTAL 0PERAT1N1 EXPENSES AND LIVESTOCYR PURCH8ASRES 4160 6 1 440.9055 4640 3030 1620 3,5 3.8 3.3 ~155.030 _0/ 0170 per head. 14/ 281% of rest of teatrer, -hielee and eqeip-tr red 107. 2/1 N130 pen brad, of orE f Pawe plant he.girlog riCh year sOorpfiin 3/ N120 per head. 15/ 0,5 per AU per yea.. -4/ 080 Per head. 16/ N1.80 pen AU pen year. 5/ 0123 per bead. 17/ 2.3 cnn af triple sap.rphasphate pen or Per Yea at N180 6/ N1180 par head, Pen ten, 7/ N010 per head. 18/ 1 ewE ef triple saperpkrephate Per an per year at NI80 8/ 0600 pen peer, par tenon. 2,000 an. 9O/Y/03 per yer.~i osbei ngwtyar19/ 91. ef operting -epenecs 10/ 150, aG aniengtiorn cot NeIen50 P rich. year folblowing ronirartior. 20/ Treated as develap.-ta cost in yre.r 2-4 (err Table ) 11/ 1 00 aebio8 ares t NO.0 perbear or Osel, oil, grease, spare parts, repairs and in-rare, Tl / N1300 pen head. 1L2/ 10,000 ilre per year at N1 0.13 par nile far eal, oil, greas, spare Parts, repairs aed Inurnn. j N020 pen head. 13/ 10,000 riles per year at N 0.15 pee nile for fael, oil, grease~, spare parts, repairs and inscranne. L2/ NIOSE pee head. Drenher 14, 1975 ANNEX 7 NIGERIA Table 7 LIVESTOCK DEVELOPMENT PROJECT WLC Ranches General Administration - Investment and Operating Expenses CN) … ----------- Year --…--------- Unit Cost 2 3-20 CATEGORY FIXED INVESTMENT Vehicles Four Wheel Drive Vehicle 4,500 4,500 Office Furnishings Office Furniture 1,150 1,150 - Office Equipment 1,150 1,150 - Sub-Total 2,300 - PhysicaL Contingencies 10% 680 - TOTAL FIXED INVESTMENT 7,480 - OPERATING EXPENSES Salaries General Manager 7,000 7,000 7,000 Secretary/Accountant 3,ooo 3,000 3,000 Chief Clerk/Typist 1,600 1,600 1,600 Driver 600 600 600 Messenger 400 400 400 Sub-TotaL 12,600 12,600 12,600 Transport Vehicle Running Expenses % 1,560 1,560 Vehicle Replacement g 900 900 Sub-Total ?4429 aA&Q Office Rental 1,150 1,150 L,150 Stationery 460 460 460 Postage 460 460 460 Telephone 575 575 575 Sub-Total 2Z62 2 *4 6 Audit and Professional Fees and Insurances 6,240 6,240 Miscellaneous 1,055 L,D55 TOTAL OPERATING EXPENSES 2 12,000 miles per year at N 0.13 per mile for fuel, oil, grease, spare parts, repa.rs and _nsurance. 2/ 20% of cost beginning with year of acquisition. December 14, 1973 NIGERIA LIVESTOCK DEVELOPMENT PROJECT bWLC Ranches Cash Flow (N) ------------------ect--------------a…------…-__---------------------------------Pjet Ycar-------_---________- ________________-____-_________________-___-___ Before Development 2 3 4 5 6 7 8 9 10 11 12 13 14 if and After Cash Inflow Livestock Sales - On-going Ranches 108,348 72,240 73,920 362,720 683,220 998,720 866,680 708,820 610,160 618,500 701,480 791,220 879,220 879,220 879,220 Start-up Ranches - 407.400 395.220 696.360 1.058.220 1,142,310 768.090 791.850 857,130 910,760 1,139.760 1,139.760 1,139,760 1,139,760 1,139,760 108,348 479,640 469,140 1,059,080 1,741,440 2,141,030 1,634,770 1,500,670 1,467,290 1,599,260 1,841,240 1,95o,980 2,018,980 2,018,980 2,018,980 Development Loan 1/ - 1,482,194 1,020,635 1,260,476 1,110,620 - - - - - - - - - - state Govern-ent Equity Contribution 2! - 800,000 700.000 500.000 - - - - - - - - Total Cash Inflow 108,348 2,761,834 2,189.775 2,819.556 2.852.060 2,141.030 1.634,770 1.500.670 1.467,290 1,599.260 1.841.240 1.930.980 2,018.980 2.018.980 2.018.980 Cash Outflow Fixed Investnents - General Administration - 7,480 - - - - - - - - - - - - - - On-going Ranches - 240,640 152,800 120,680 - Start-up Ranches - 627,150 357,900 278,400 Livestock Purchases - On-going Ranches 76,040 - 179,800 403,200 573,500 425,900 265,500 110,500 9,800 11,200 - - - - - - Start-up Ranchos - 1.242,150 767.550 998,400 1,013,100 604.950 22.500 27.300 17,850 18.900 18,900 18,900 18,900 18,900 18,900 Sob-total Fixed Investment and Ilerd Build-Up 2,117,420 1,458,050 1,800,680 1,586,600 1,030,850 288,000 137,800 27,650 30,100 18,900 18,900 18,900 18,900 18,900 Operating Expenses - Genera! Administration - 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 - On-going Ranches 17,108 129,944 182,810 230,650 263,080 263,080 263,080 263,080 263,080 263,080 263,080 263,080 263,080 263,080 263,080 - Start-up Ranches - 172,275 268,395 339,465 386.190 386.190 386.190 386.190 386.190 386,190 386.190 386.190 386.190 386.190 386,190 Sob-total Cash Outflow Before L-ar Service 93,148 2,444,639 1,934,255 2,395,795 2,260,870 1,705,120 962,270 812,070 701,920 704,370 693,170 693,170 693,170 693,170 693,170 Development Loan Service - 70,404 189.888 298,241 410.868 463.023 897.025 897.025 897.025 897,025 897.025 897.025 897.025 897.025 - Total Cash Outflow 93J148 2,515,043 2.124.143 2,694.036 2,671.738 2,168.143 1,859.295 1,709.095 1,598.945 1,601,395 1,590.195 1.590,195 1,590.195 1,590,195 712,070 Cash Balance - Annual 15,200 246,791 65,632 125,520 180,322 (27,113) (224,525) (208,425) (131,655) (2,135) 251,045 340,785 428,785 428,785 1,306,910 - Cumulative - - 312,423 437,943 618,265 591,152 366,627 158,202 26,547 24,412 275,457 616,242 1,045,027 1,473,812 2,780,722 1/ Develompent loan disbursed against 70°I. of total fixed investnent and herd build-up. The loan is at 9½7, for 13 years, including 5 years grace. 2/ The amount of the contribution iP calculated to provide adequate cash cover against lags in disbursements and possible tax assessments. The latter cannot be estimated until the arrangements for taking over the ranches are known in detail. The financial rate of return is 13.07, over 20 years based on: (a) total cash inflow from sales. (b) total cash outflow before loan se-ice. (c) incremental herd value of N 3,400,820 and (d) annual pre-development reve-nes and costs as indicated. December 14, 1973 ANNEX B TABLE I NIGERIA LIVESTOCK DEVELOPMENT PROJECT NLPC Fattening Ranches (Manchok. Mokwa) - Herd Projection (Each Ranch) -------------------------------------Project Year 2/-------- Before Development 2 3 4 5 6-21 HERD COMPOSITION Steers .................. 1,500 2,000 3,500 5,000 5,000 5,000 Total Animal Units 3/ ......... 1,500 2,000 3,500 5,000 5,000 5,000 PURCHASES Steers . . 1,500 2,000 3,500 5,000 5,000 5,000 Total Purchases ..... .......... 1,500 2,000 3,500 5,000 5,000 5,000 MORTALITY Steers ................. 45 60 105 100 100 100 Total Mortality ..... .......... 45 60 105 100 100, 100 SALES Steers .................. 1,455 1,940 3,395 4,900 4,900 4,900 Total Sales ...... ............. 1,455 1,940 3,395 4,900 4,900 4,900 TECHNICAL COEFFICIENTS Mortality 7 . ............. 3 3 3 2 2 2 Stocking Rate: acres/AU Manchok 4.0 3.0 1.7 1.2 1.2 1.2 Stocking Rate: acres/AU Mokwa .......... 8.0 6.0 3.4 2.4 2.4 2.4 1/ Acreages: Manchok 6,000: Mokwa 12,000. 2/ Purchases are made mainly at the beginning and sales at the end of the year. 3/ An Animal Unit is eauivalent to an animal of one year of age or more. December 14, 1973 ANNEX 8 NIGERIA Table 2 LIVESTOCK DEVELOP4ENT PROJECT NLPC Fattening Ranches (Manchok. Mokwa) Investment Costs (Each Ranch) (s) -- -----------------Project Year------------------- Unit --------_2 --- --- 3_-- ------4 - --- TOTAL CATEGORY ..... ..... ...... Unit Cost Units Cost Units Cost Units Cost tjnits Cost fi'IXED INVESTMENT Firebreaks and Roads Firebreaks and Access Tracks ................. Mile 70 10 700 10 700 lO 700 30 2,100 Roads .Mile 230 5 1.150 5 1.150 5 1.150 15 3,450 Sub-Total 1,850 1,850 1,850 5,550 Water Development Dans .Unit 6,900 2 13,800 - 2 13,800 Bores .Unit 11,500 1 11,500 - 1 11,500 Waterpipes .Mile 1,150 1 1,150 1 1,150 - 2 2,300 Watertroughs .Unit 60 4 240 3 180 3 180 10 630 Sub-Total 26,690 1,330 180 28,200 Stock Handling Facilities and Fencing Handling Yard and Dip /. Unit 4,600 1 4,600 1 4,600 - 2 9,200 Fencing .Mile 700 10 7,000 10 7,000 10 7,000 30 21,000 Electrical Fencing Units .Unit 600 2 1,200 1 600 1 600 4 2,400 Sub-Total 12,800 12,200 7,600 32,600 H1ousing and Ranch Buildings Hlousing 14,000 2,500 1,800 18,300 Shed .Unit 4,500 1 4,500 - - - - 1 4 500 Sub-Total 18,500 2,500 1,800 22,800 Vehicles and Equipment Four Wheel Drive Vehicle .Unit 4,500 1 4,500 1 4,500 - 2 9,000 Tractor , 60-65 HP .Unit 4,500 1 4,500 1 4,500 - 2 9,000 Disc Harrow .Unit 1,100 1 1,100 - _ I 1,100 Disc Plough (3 furrow) .Unit 900 - 1 900 - 1 900 Rotary Cutter .Unit 800 1 800 1 800 - 2 1,600 Rotary Fertilicer Distributor.Unit 900 1 900 1 900 - 2 1,800 Trailer .Unit 800 1 800 1 800 - 2 1,600 Levelling Harrow........ ....... Unit 500 1 500 - - 1 500 Seed Drill .Unit 1,800 1 1,800 - 1 1,800 Tools, etc .Set 700 1 700 - 1 700 Veterinary Equipment Set 300 1 300 Power Plant .Unit 2,800 1 2,800 - 70 1 2,800 Spares /. 1.500 7!0 2L.200 Sub-Total 21,100 12,200 33,300 Pasture Improvement Land Clearing, Seed Bed Preparation and Sowing Ac 50 500 25,000 500 25,000 500 25,000 1,500 75,000 Fertilizer 2! .Ton 180 125 22,500 125 22,500 125 22,500 375 67,500 Seed f .Lb 1.20 5,000 6,000 5,000 6,000 5,000 6,000 15,000 18,000 Pesticide . .Gal 10 500 5,000 500 5 500 5j000 1,500 t5,000 Sub-Total . . . ........--. 58500 58,500 58,500 175,500 Physical Contingencies 10% .13.960 - 8.820 6.970 29.750 TOTAL FIXED INVESTMENT 153.400 . ..=97. 400 76_900 3 27. 1/ Capacity of 1,000 head. 2/ 10% of cost of vehicles and equipment excepting four wheel drive vehicle. 3/ Assumes application of triple superphosphate at 2.5 cwt per ac at sowing and 2.5 cwt per ac 6 months later. 4/ Assumes sowing rate of 10 lb of mixture/ac. 5! Assuemes epplic.tion of ens gsl,/se of formicide. December 14, 1973 ANNEX 8 Table 3 NIGERIA LIVESTOCK DEVELOPMENT PROJECT NLPC Fattening Ranches (Manchok. Nokwa) l 3ales, Operating E4esnses and Livestock Purchases (Each ranch) (N) ------------------------------Project Years---------------------- CATEGORY 2 3 4 5 6-21 SALES Steers 2/ ................................. 294,880 516,040 744,8oo 744,8oo 744,8oo TOTAL STEER SALES ........................ 294,o8o 516,040 744,8o0o 744,800 744,800 OPERATING EXPENSES Salaries and Wages Manager . 5,000 5,000 5,000 5,000 5,000 Assistant Manager . 3,500 3,500 3,500 3,500 3,500 Chief Clerk ......... 1,600 1,600 1,600 1,600 1,600 Plant Operator/Mechanic .1,200 1,200 1,200 1,200 1,200 Field Assistant )3/ .1,800 2,400 3,000 3,000 3,000 Driver ) 1,200 2,400 2,400 2,400 2,400 herdssan/Laborer )4/ .................... 6,000 10,000 14,000 14,000 14,000 Guard )..20 0 1 .600 2.000 2Q00 2.000 Sub-Iotal ....... 21,500 27,700 32,700 .32,700 32,700 Maintenance 5/ Fencing .100 450 800 1,150 1,150 Firebreaks .- 95 185 280 280 Stock Handling Facilities and Dip 200 490 750 780 780 Water Supply .- 1,335 1,400 1,410 1,410 Buildings.. 4.5 5.425 5.500 5.640 5.640 Sub-Total .4,800 7,795 8,635 9,260 9,260 Tractor, Vehicle and Equipment Tractor 6/ . .2,250 4,500 4,500 4,500 4,500 Four Wheel Drive Vehicle 7/. 1,300 2,600 2,600 2,600 2,600 Power Plant . .390 390 390 390 390 Sub-Total . .3,940 7,490 7,490 7,490 7,490 Replacement of Vehicles and Equipment _1 3,650 5,950 5,950 5,950 5,950 Animal health Veterinary Expenses 9/ .3,000 5,250 7.500 7,500 7,500 Dipping 10 . . 2000 3.500 5x000 5.000 5.000 Sub-Total ......... . .. . 5,000 8,750 12,500 12,500 12,500 Pasture Maintenance Sown Pasture 11/ .- 11,250 22,500 33,750 33,750 Natural Pasture 12/ .18.000 18.000 18. 000 18.000 18.000 Sub-Total .18,000 29,250 40,500 51,750 51,750 Miscellaneous 13/ .2.45 4.345 5.395 6.000 6,000 TOTAL OPERATING EXPENSES ...... .... .. ... ... , 59,735 91.280 113,170 125,650 125,650 LIVESTOCK PURCHASES Steer Purchases 14/ .220.000 385.000 550.000 550.000 550.000 TOTAL STEER PURCHASES ......Q.....,., 220.000 .385000 550.000 550,000 TOTAL OPERATING EXPENSES AND STEER PURCHASES ... 279.735 476,280 663.170 675,650 675.650 NET OPERATING INCOME / ...................... 15,145 39,760 8L.630 69,150 69,150 1/ Acreages: Manchok, 6,0oo; Mokwa, 12,000. 9/ N1.50 per AU per year. 2/ N 152 per head. _,0/ N1.00 per AU per year. 3/ N600 per year. 11/ 2.5 cwt of triple superphosphate per ac per 4/ 8400 per year. year at NISO per ton. 5/ 5% of construction cost beginning with year following construction. 12/ 1 cwt of triple superphosphate per ac per year Assumes values of old structures as follows: fencing, N2,000, stock at 8180 per ton on 2,000 ac. bandling facilities, N4,000; buildings, N90,000. 13/ 5% of operating expenses. 6/ 1,500 working hours per tractor at N1.50 per hour for fuel, oil, grease, 14/ N110 per head. spare parts, repairs and insurance. 15/ Equals total steer sales - (total operating 7! 10,000 miles per year at N 0.13 per mile for fuel, oil, grease, spare expeuses + total steer purchases). parts repairs and insurance. 8/ 207. of cost of tractors, vehicles and equipment and 107. of cost of power plant beginning with year of acquisition. December 14, 1973 ANN3X 8 Table 4 NIGERIA LIVESTOCK DEVELOPMENT PROJECT NLPC Fattening Ranches (Manchok, Mokwa) General Administration - Investment and Operating Expenses (N)_ Project ------------- Year-------------- Unit Cost 2 3-21 CATEGORY FIXED INVESTMENT Vehicles Four Wheel Drive Vehicle 4,500 4,500 Office Furnishings Office Furniture 1,150 1,150 Office Equipment 1,150 1,15L Sub-Total 2,300 Physcal Contingencies 10% 700 TOTAL FIXED INVESTMENT 7,500 OPERATING EXENSES Salaries General Manager 7,000 7,000 7,000 Secretary/Accountant 3,000 3,000 3,000 Chief Clerk/Typist 1,600 1,600 1,600 Driver 600 600 600 Messenger 400 400 400 Sub-Total 12,60C 12,600 Transport Vehicle Running Expenses V 1,560 1,560 Vehicle Replacement i/ 900 900 Sub-Total 2,460 2,460 Off ice Rental 1,700 1,70O 1,700 Stationery 600 600 600 Postage 600 600 600 Telephone 1,100 1100 1,100 Sub-Total 4,000 4,000 Audit and Professional fees and Insurances 3,400 3,400 Miscellaneous 1,140 1,140 TOTAL OPERATING EXPENSES 23,600 23,600 12,0CO miles Der year at N 0.13 Tner mLile for fuel, nil grease, spare parts, ropaLrz and insurance. 2/ 20% of cost beginning with year of acqaisition. j/ %5, of operating expenses. December 14, 1973 NIGERIA LIVESTOCK DEVELOPMENT PROJECT ANNEX 8 TABLE 5 NLPC Fattening RBnches (Manchok, Mokwa) Cash Flow (N) -efoe -Project Yea- Devolopnsot 2 3 4 5 6 7 8-14 15 CASH INFLOW Livestock Sales 480,000 589,760 1,032,080 1,489,600 1,489,600 1,489,600 1,489,600 1,489,600 1,489,600 Development Loan 1/ - 251,440 155,840 123,040 - - - - - Federal Gover-ment Equity Contribution - 300.000 100,000 100,000 - - - _ _ TOTAL CASN INFLOW 480_000 1,141.200 1,287,920 1,712,640 1.489.600 1.489,600 1 489 600 1 489 600 1 489 600 SASH OUTFLOW Flood Invcornott- - General Adnisitration - 7 500 - - RBnches _ 306,800 194,800 153,800 - - - - - Stoee Purchases _ 440,000 770,000 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 Operating Nxpenses - General Adr.oinstratioe _ 23,600 23,600 23,600 23,600 23,600 23,600 23,600 23,600 - Ranchs 119,470 182,560 226,340 251,300 251,300 251,300 251,300 251,300 Sub-Total 897,370 1,170,960 1,503,740 1,374,900 1,374,900 1,374,900 1,374,900 1,374,900 Ovedraft Interest - 6,200 11,000 17,000 16,000 16,300 16,000 4,000 - D-lopseent Loan Service - 11,944 31,291 4453 84,462 84,462 84,462 84,462 - TOTAL CASH OUTFLOW 524,336 915,514 1,213,251 1,565,279 1,475,362 1,475,662 1,475,362 1,463,362 1,374,900 C'Aa- ULANCE _ Anneal .. i. noim 2' (311,500) (958,000) (854,000) (800,200) (817,200) (803,200) - - Adnnal Year End (44,336) 225,686 74,669 147,361 14,238 13,938 14,238 26,238 114,700 Cvmulativ- YTar End - 300,355 447,716 461,954 475,892 490,130 673,796 788,496 CALCULATIOOB OF AbNIJAL hINI0b'DM CASH BALAndCE Opening Balance_. 226,000 300,000 448,000 462,000 476,000 - - Add-kqoity Contrhibtion - 300,000 100,000 105,000 - - Dovelepe-not Loan _ 63,000 102.000 75,300 31.000 - O - - (25% last y-ar+25% this yesr) Sub-Total 363,000 428,000 470,000 479,000 462,000 476,000 - _ Less-507. Fined Investements _ 157,000 97,400 77,000 - - 100% Steer PFrchases 440,800 770,000 1,100,000 1,100,000 1,100,000 1,100,000 501, Operattng Expensos 71,500 103,000 125,000 137,000 137,000 137,000 50% Lees SOr-ire - 6,000 15,600 22,000 42,200 42.200 42,200 Sub-Totel 674,500 986,000 1,324,000 1,279,200 1,279,200 1,279,200 M4inimum Cash science (Overdreft) _ (311,500) (S58A000) (854,000) (800,200) (817,200) (803,200) if De-elopemest Loan disbur-ed against 80% of fised investmenet. The loan is at 9 1/2% fo- 13 years, iOcluding 3 years grace. 2/ Overdeaft facilities of op to about N 800,500 will ho required in PY 2-7. ITterest is esti-ated ot 2, of the asnnal minimum balance. Tho financial Rate of rotors is 17.8% based so: - (a) tstal cash isflow from soles; (b) total cash outflov hefnre oreed-aft ist-r-st + Ian sei-ce; (c) treating incremental steer purches-s as permanet working capital octil PY 21, when the herd in a-ssumd to bh sold; (d) taking so account sf pre-developement losses or each costs. De-ember 14, 1973 ANNEX 9 NIGERIA DIVESTOCK DEVELOPMENT PRWJECT Private BreeintFatteninlg Ranch - 2.400 a Herd Projection ---- ---- ---- - -- ---- ---- --- --- -project Year - - - - - - - - - - - - - - - - - - - - - Betore flevelouent A 6..t 7 8 9-211 HFRD CCMSVITION Buls ........................3 3 5 7 9 11 12 12 12 Breeding Cows....................50 80 130 200 270 302 302 302 302 Weaners.......................25 25 4i0 78 1140 202 241 247. 2141 Hetters 9-24 months .................2 12 12 19 38 68 99 US8 118 Steers 9-24 months.................22 212 22 19 38 68 99 US 3118 Betters 2-3 Years ................. 11 1-1 - - - - --- Steers 2-3 years ..................12 122 - - - --- Steers, Puirchased..................220 151 j 41 38 - TotaLlAnlisas ..................I..2 275 350 44*8 .57 j69 791 791 791 TotaLl Animal Units V/.............. 100 250 310 370 430 1490 '550 550 550 PURCHASES Buls .1.......................- 3 3 3 4 4 4 fr-calf Cows Heiters ..-..............21 30 62 56 - - - - Steers......0.151..................2A J - Total Purchases .1................141 1814 190 134 4~ 42 4 4 MORTALITY Bulls..- - - 1-1--- BreedingWOws..........................2 2 2 3 4 5 6 6 6 Weaners.....................1 1 1 2 2 4 4 5 5 Heiafers 9-24 mcnths.............. :: 1 1 1 1 1 1 1 2 2 Steers 9-24 months .................. - - - - 1 1 2 2 Betters 2-3 years ........... ....0 0 - --- - - - Steers 2-3 Years...........1....... 1 1 ----- Steers, PuLrchased.............-..... - 4 3 3 2 1 1- Total Mortality .................5 5 9 10 10 14 13 16 15 C .....llBulls............ 1 - 1 - 1 1 3 4 4 CullICows......................5 - - -- - 30 45 45 Heiters 2-3 years..................- - - - - - 31 46 6 Steers 2-3 years ............- - 22 12 19 37 67 97 116 Heifers 3-4 years ..........4 - - - - - - - - Steers 3-4 years ..................11 11 11 - - - - -- Steers, Purchased..................- - 16 148 122 73 40 37- Total Sales 21 11 a4o 160 iko in1 171 229 230 TECHNICAL COEFFICIENTS Calves Weaned% ................... 0 50 50 60 70 75 80 So So Mortality %.....................3 3 3 2 2 2 2 2 2 CutllingBRatesBul Is %................30 0 30 0 14 13 29 30 30 Culling RateoCows %.................10 0 0 0 0 0 10 15 15 Culling Rate Betters 2-3 years %..........0 0 0 0 0 0 46 48 55 Culling Rate Beiters 3-4 years %..........36 0 0 0 0 0 0 0 - Bulle%tretnliae. 3 3 3 3 3 3 3 Stocking Bate: acres/Au ..............24 9.6 7.7 6.5 5.6 4.9 4.4 4.4 4.4 I/ An Animal Unit is equivalent to an animal of one Year ot age or mrore December 124, 1973 ANNEX 9 Table 2 NIGERIA LIVESTOCK DEVELOPMENT PROJECT Private Breedin/Fattef_inE Ranch - L400 ac Investment Costs - (N) Unit 234TOLProject Year CATEGORY Unit Cost Units Cost Units Cost Units Cost Units Cost FIXED INVESTMENT Firebreaks and Roads Firebreaks .................................... Mile 70 10 700 - - - _ 10 700 Water Development Dams .......................................... Unit 4,600 1 4,600 - - - - 1 4,600 Stock Handling Facilities and Fencing Handling Yard and Dip .............. Unit 1,800 1 1,800 - - - - 1 1,800 Fendng: Improved Pasture .................... Mile 700 1-1/2 1,050 1 700 1 700 3-1/2 2,450 Boundary ............................. Mile 350 8 2.800 - - - - 8 2,800 Sub-Total 5,650 700 700 7,050 Housing and Ranch Buildings House: Manager ...... ......................... Unit 900 1 900 - - - - 1 900 Storage Shed ......................,,.,....... Unit 500 1 500 - - - - 1 500 Sub-Total 1,400 - - 1,400 Tools and Equipment Tools, etc. ... .................... Set 120 1 120 - - - - 1 120 Veterinary Eouipment ...... .................... Set 50 1 50 - _- I 1 50 Sub-Total ........... , . .............. 170 - - 170 Pasture Improvement Land Clearing, Seed Bed Preparation and Sowing.. Ac 35 50 1,750 50 1,750 50 1,750 150 5,250 Fertilizer I/ ................... I ............. Ton 180 12.5 2,250 12.5 2,250 12.5 2,250 37.5 6,750 Seed 2/ ............ , , , . ...... Lb 1.20 500 600 500 600 500 600 1,500 1,800 Pesticide 3/ ............,, Gal 10 50 500 50 500 50 500 150 1.500 Sub-Total . 5,100 5,100 5,100 15,300 Physical Contingencies 10% ......................... _1760 580 580 2, 92a TOTAL FIXED INVESTMENT 6..................... 6, 6_380 6,380 32 a 0 1/ Assumes application of triple superphosphate at 2.5 cwt per ac at sowing and 2.5 cwt per ac 6 months later. 2/ Assumes sowing rate of 10 lb of mixture/ac. 3/ Assumes application at rate of one gal/ac of formicide. December 14, 1973 ANNEX 9 Table 3 NIGERIA LIVESTOCK DEVELOPMENT PROJFCT Private Breeding/Fattening Ranch - 2400 ac Sales, Operating Expenses and Livestock Purchases (N) Pro jest - -------------------------------------Years - -…-_…___-__-_-___ CATEGORY ........ .. . . . . . . . . .......... Before 2 3 4 5 6 7 8 9-20 Development SALES Cull Bull-I .o............................. 185 - 185 - 185 185 555 740 740 Cull Cows 2/ .......... ...................725 - -- - 4,350 6,525 6.525 He'.fers (2-3 years) 3/ . .- - - - - - 6,200 9,200 13,000 Steers/Bulls (2-3 yeais) 41 - - 1,620 1,620 2,565 4,995 9,045 13,095 15,660 Heifers (3-4 years) 5/ .800 - - - - - - - Steers/Bulls (3-4 years) 6/ .2,090 2,090 2,090 - - - Purchased Steers 7/.. ..... __.._ 17.400 22.200 18.300 10,950 6,(OO 5,550 - TOTAL LIVESTOCK SALES .3.800 2090 21.295 2 0 2.0 26.150 3.110 35.925 OPERATING EXPENSES Salaries and Wages Manager's Wage 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 Hardsma.)8/ ............................ 6co 900 1,200 1,200 1,200 1,200 1,200 1,200 Laborer d ) . .. 300 300 300 300 300 300 300 Sub-Total 2,100 2,400 2,700 2,700 2,700 2,700 2,700 2,700 M4aintenance 9/ Fencing 195 265 265 265 265 265 265 Firebreaks. 35 35 35 35 35 35 35 Stock Handling Facilities and Dip 95 95 95 95 95 95 95 Water Supply 230 230 230 230 23 0 230 230 Buildings 7O 70 7O 70 70 70 70 70 Sub-Total 625 695 695 695 695 695 695 Replacement of Tools and Equisment 40 40 40 40 40 40 40 40 Aninal Health Vaccines and Drugs II/ ................. 375 465 555 645 735 825 825 825 Insecticides 12/ 11. 253 310 370 430 490 550 550 550 Sub-Total 625 775 925 1,075 1,225 1,375 1,375 1,375 Pasture Maintesance Sowe Pasture 13/ 1,125 2,250 3,375 3,375 3,375 3,375 3,375 Natural Pasture bO1.800 1,800 1, 800 1,800 1,800 l __1,80C_0 Sub-Total 1,800 2,925 4,050 5,175 5,175 5,175 5,175 5,175 Land Rent 15/ 480 480 480 480 480 480 480 480 Cattle Tax 16/ 190 235 280 325 370 415 415 415 Miscellaneous 17/ 260 375 460 525 535 545 545 545 TOTAL OPERATING EXPENSES .1.260 5,455 7.855 9.630 11.015 11.220 11,425 11, 4 25 11.425 LIVESTOCK PURCHASES 18/ Bulls 19/ .200 - 900 900 900 1,200 1,200 1,200 1,200 In-Calf Cows/Heifers 20/ .- 4,200 6,000 12,400 11,200 - - - - Steers 2V1/ ._. 12.600 1 13.125 7.875 4.305 3,990 TOTAL LIVESTOCK PURCHASES 200 800 755 2645 19975 5505 5.190 10 1200 TOTAL OPERATING EXPENSES AMD LIVESTOCK PURCHASES 1.460 22.255 30.610 36,055 30,993 16,725 16.615 12,625 12.625 1/ N185 per head 11/ N1.50 per A.U. per year. 2/ N145 per head 12/ N1.00 per A.U. per year. 3/ N200 per head 13/ 2.5 cwt of triple superphosphate per ac per year at N180 per ton. T/ N135 per head :5/ 1 cwt of triple superphosphate per ac per year at N180 per ton / N200 per head on 200 an. 6/ N190 per head 15/ NO.20 per ac per year. 7/ N150 per head 71/ No.75 per A.U. per year. 1/ N300 per:-ear r/ 5% of operating expenses. 9/ 5 % of construction cost beginning with year following construction. 17/ Treated as development costs in years 1-3 LO/ 20% of cost beginning with year of acquisition. 29/ N300 per head 20/ N200 per head 71/ B10bpe head NIGERIA LIVESTOCK DEVELOPMENT PROJECT Private Ranches Development Projections Cash Flow (N) ---------------------------------------------------------Project Year---------------------------------------------------- 2 3 4 5 6 7 8 9-16 17 Cash Inflow Livestock Sales 2,090 21,295 23,820 21,050 16.130 26,150 35,110 35,925 35,925 Development Loan 28,994 23,308 26,244 15,980 - - - - _ Rancher Contribution: Initial herd 15,525 - - - - - - - Cash 10,000 - 2,000 4,000 4,000 - - - Total Cash Inflow 56.609 44.603 52,064 41.030 20,130 26.150 35.110 35,925 35.925 Cash Outflow Fixed Investments 19,380 6,380 6,380 - - - - - - Livestock Purchases - Breeding Stock 4,200 6,900 13,300 12,100 1,200 1,200 1,200 1,200 1,200 - Steers 12,600 15.855 13,125 7,875 4,305 3,990 - - - 36,180 29,135 32,805 19,975 5,505 5,190 1,200 1,200 1,200 Initial Herd 15,525 - - - - - - - Operating Expenses 5.455 7.855 9,630 11.015 11,220 11,425 11,425 11,425 11,425 Sub-total 57,160 36,990 42,435 30,990 16,725 16,615 12,625 12,625 12,625 Loan Service 1.377 2,484 4.838 6.844 7.603 15,055 15,055 15.055 - Total Cash Outflow 58,537 39.474 47.273 37.834 24,328 31.670 27.680 27,680 12.625 Cash Balance - Annual (1,928) 5,129 4,791 3,196 (4,198) (5,520) 7,430 8,245 23,300 - Cumulative - 3,201 7,992 11,188 6,990 1,470 8,900 74,205 97,505 1/ Development loan disbursed against 80% of fixed investment and livestock purchases in PY 2-5 The loan is at 9y% for 15 years, including a grace period of 5 years. The financial rate of return to the individual farmer/trader is 13% over 20 years based on: (a) total cash inflow from sales (b) total cash outflow before loan service and (c) opening and closing herd values of N 15,525 and N 84,070 respectively. The financial rate of return to the project component, taking into account the timing of farmers' participation remain 13%. dO December 14, 1973 ANNEX 10 Page 1 NIGERIA LIVESTOCK DEVELOPMENT PROJECT Cattle Fattening by Smallholders 1. General. Cattle fattening, mainly of mature oxen, and carried out after harvest with crop residues and some supplementary feed is moderately widespread throughout northern Nigeria. It has been practised by Hausa farmers, butchers, and cattle traders on a small scale for several decades; but its spread during the last few years has increased considerably due to rapidly rising meat prices. In many cases, fattening amounts to little more than conserving liveweight through the dry season, but more and more it is being undertaken to profit from modest weight gains and from seasonal price increases, the most significant being those occurring between about the end of the dry season and the middle of the wet season. Fattening techniques are generally inefficient, but could be improved significantly through better advice on management, better animal health services, and the greater use of supplementary feed and crop residues that are available in Nigeria. It also appears that more farmers would undertake fattening if credit were available for purchasing feeder animals. Most farmers are too poor to buy animals and thus are denied the opportunity of profitably using crop residues and benefit- ing from the production of farm yard manure. 2. Subproject Description. The purpose of the subproject would be to conduct a pilot beef cattle fattening scheme with the objectives of developing appropriate fattening techniques, cattle purchase and sale procedures, and credit arrangements (including cattle insurance), as well as training both farmers and extension personnel in efficient cattle fattening techniques. The results of the pilot scheme should determine whether small-scale fattening operations should be further promoted by Government. 3. Individuals selected to participate would have had previous expe- rience in cattle management (this could be by owning and operating draught oxen) and would have the capacity to provide the simple facilities needed for confining and feeding the animals, and sufficient labor to care for the animals purchased with the credit. The number of animals to be finished on each fattening unit would be determined by (i) the estimated production capacity for roughage and crop residues of the farm, and (ii) the management and organizational ability of the potential cattle fattener. At full devel- opment, about 1,500 fatteners, finishing a total of about 7,500 animals per year, would participate in the scheme, which would be located in three se- lected areas of about 10 x 10 mi each, two in NE and one in NL State. Incre- mental production would be about 640 mt liveweight per annum valued at about N 315,000. ANNEX 1 0 Page 2 4. The majority of loans would be to small farmers, who would finish about three animals per year during an appropriate six-month period. Credit would be made available for both cattle and supplementary feed such as cotton seed, rice bran and middlings, groundnut and cotton seed cake, groundnut stalks, and salt. Credits for cattle and for feed would be made in kind by the subproject management. All cattle would be provided with free prophylactic treatment against trypanosomiasis where necessary. Fat cattle would be marketed with the assistance of subproject management, and credit recovery would take place at the point of sale. 5. Cost and Profit to the Cattle Fattener. The cost of fattening one animal over about 180 days, and the profit from this operation, assuming a daily liveweight gain of 1 lb, is estimated as follows: Unit Unit Cost No. of Units Total Cost N N A. Operating Costs 1. Purchase of Feeder /1 head 110.0 1 110.0 2. Feed Concentrate /2 cwt 5.0 4 20.0 3. Groundnut Stalks cwt 0.8 10 8.0 Subtotal 138.0 B. Sales /1 head 160.0 1 160.0 C. Gross Operating Income 22.0 D. Interest Charge and Insurance 1. Interest Charges /3 6.6 2. Cattle Insurance 2.0 E. Net Operating Income 13.4 /1 Purchase and sale price per lb liveweight - N 0.225. 7T Cotton seed, rice bran/middlings, groundnut and cotton seed cake, etc., and salt. /3 9-1/2% per year. The estimated net income to the cattle fattener of about N 13.4 per fattened animal is considered satisfactory, especially since this could be increased through alert marketing to take advantage of seasonal price differences; through long-term delivery contracts between the scheme and wholesale meat dealers in main consumption centers; and through purchasing supplementary feed directly after harvest when prices are low. LPU would provide marketing assistance to subproject participants. ANNEX 10 Page 3 i. Subproject feeder cattle and credit requirements would be as follows: Annual Requirements of Feeder Cattle Years Area I Area II Area III Total ------------Head ----------- 1 800 800 2 1,500 1,500 3 2,000 1,000 3,000 4 2,500 2,000 1,500 6,000 5-20 2,500 2,500 2,500 7,500 Annual Credit Requirements No. of Cost of Cost of Supple- Total 'Years Feeder Cattle Feeders /1 mentary Feed /2 Credit Volume ---- Head----- ---…-----N----_________________ 1 800 88,000 22,400 110,400 2 1,500 165,000 42,000 207,000 3 3,000 330,000 84,000 4414,000 4 6,000 660,000 168,000 828,000 5-20 7,500 825,000 210,000 1,035,400 /1 N 110 per feeder. /2 N 28 per feeder. 7. In view of the scheme's pilot nature, Government would guarantee loans made under the scheme by NAB to fatteners. Appropriate measures would be taken to prevent the misuse of credits and stock purchased with NAB loans would be branded and serve as part of the security for such loans. S. Organization and Management. A LPU ranch technical officer report- ing to the Deputy Project Manager - North would be responsible for day-to-day implementation of the scheme, including purchase of feeders and sale of fat animals, evaluation of the fattening capacity of applicants' farms, and train- ing of scheme personnel. He would be directly assisted in each of the three project areas by one livestock and two veterinary field assistants provided by the NE State Ministry of Agriculture and Natural Resources. In addition the subproject would receive technical support as needed from district veteri- narv and agricultural service staff operating in subproject areas. ANNEX 1 1 Table 1 NIGERIA LIVESTOCK DEVELDPMENT PROJECT Grazing ieserves Fulani Graziers - 64,o00 acres Investment Costs (Each Unit) (N) Project Yr. 2 and Total Unit No. of Unit Cost Unit Costs FIXED INVESTMENT Firebreaks and roads Firebreaks and access tracks Mile 70 60 4,200 Roads Mile 230 10 2,300 Subtotal 6,500 Water Development - Dam Unit 4,600 2 9,200 Stock handling facilities and fencing Handling yard, dip, holding paddocks Unit 7,000 1 7,000 Cattle schale Unit 2,300 1 2,300 Subtotal 9,300 Housing and ranch buildings House: Range Officer Unit 10,000 1 10,000 Field Assistant Unit 1,000 2 2,000 Laborer Unit 500 4 2,000 Office/Storeroom Unit 2,000 1 2,300 Subtotal 13,6oo Vehicles and equipment Four wheel drive vehicle Unit 4,500 1 4,500 Veterinary equipment Set 300 1 300 Tools Set 400 1 400 Subtotal 5,200 Physical contingencies 10,~ 4,650 TOTAL FIXED INVrSTM1NT 51,150 j Representing one unit of 100 sq miles located in North-Eastern and North-4estern States. December 14, 1973 ANNEX II Table 2 NIGERIA LIVESTOCK DEVELOPMENT PROJECT Grazing Reserves Fulani Graziers - 64,000 ac - Operating Expenses and Grazing Fees (Each Unit) (N) ------------------ --------------- Project Years ------------------------ OPERATING EXPENSES 2 3 4 5 6 7 8 9-11 Salaries and Wages Range Development Officer ... ,,,,,, , 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Field Assistant 2/ .1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 Laborer 3/ .1,600 1,600 1,600 1,600 1,600 1.600 1.600 18 I,600 Sub-Total ................ 7,800 7,800 7,800 7,800 7,800 7,800 7,800 7,800 Maintenance 4/ ................................... Firebreaks and Roads .,....................... 330 330 330 330 330 330 330 Dams ..........................,......... 460 460 460 460 460 460 460 Stock Handling Facilities ........... I .......... 470 470 470 470 470 470 470 Housing and Ranch Buildings 820 820 820 820 820 820 820 Sub-Total. 2,080 2,080 2,080 2,080 2,080 2,080 2,080 Vehicle Expenses Pour wbeel drive vehicle 5/,,,,,,,,,. , ,,, 1,560 1,560 1,560 1,560 1,560 1,560 1,560 1,560 Vehicle Replacement 6/ ...... ....................... 900 900 900 900 900 900 900 900 Animal Health Vaccines & Drugs ...................... 2,250 2,400 2,550 2,700 2,850 3,000 3,150 3,750 Dipping 8/ ......... ............................ 1,500 1,600 1,700 1,800 1,900 2,000 2,100 2,500 Sub-Total ...... ........................ 3,750 4,000 4,250 4,500 4,750 5,000 5,250 6,250 Miscellaneous ........ ............................. 690 810 830 860 850 860 880 930 TOTAL OPERATING EXPENSES .... ........... 14,700 17,150 17,420 17,700 17,940 18,200 18,470 19,520 1/ Representing one unit of 100 sq miles located in North-Eastern and North-Western States. 2/ N 600 per year. 3/ N 400 per year, 4/ 57. of construction roat beginning with the year following construction. 5/ 12,000 miles per year at N 0.13 per mile for fuel oil, grease, spare parts and insurance. 6/ 20% of cost beginning with year of acquisition. 7/ N 1.50 per A.U. per year. 8/ N 1.00 per A.U. per year. December 14, 1973 NIGERIA LIVESTOCK DEVEHLOPMEN0T PROJECT t.ironigRsre Unit neor 2 3 .4 3 6 7 9 la 1 1 12 13 14 10 16 17 18 19 20 21 22 CATTLEH feroviof Capacity j/Red 1,400 11,400 1,500 1,600 1,700 1,8000 1,900 2,000 2,100 2,200 2,300 2,400 2,5000 _ 2,600 2,700 2,900 2,800 2,800 2,800 2,8000 2,800 2,800 Stock Eud of Yea (a) Without the Project 31 (b) With the Project 4/ Hoed 1,400 1,400 11,286 J1,372 1,300 1,344. 1,331 1,31f 1,305 1,292 1,200 1,207 2,254 1,241 1,220 1,217 1,200 t,193 1,101 1,169 1,102 1,140 Read t,400 1,400 1,442 1,400 1,030 1,007 1,623 1,672 1,722 1,774 1,827 1,882 1.938 1,906 2,006 2,110 2,102 2.247 2,314 2,400 2,400 2,400 Off take ()Without the Project (i) Norma sales 102, Hoed 140 140 139 137 136 134 133 132 131 129 020 127 125 124 123 122 121 119 110 117 110 110 (50) scree e.. en 1% Head - - 14 14 14 13 13 13 13 13 13 13 -13 12 12 _12 12 . 12 12 12 12 12 Scb-tot.1 Road 140 140 103 101 -130 147 146 140 144 142 141 140 138 136 133 134 133 131 130 120 128 122 (4 Wth Oftheroec 10 10 9 1 13 10 10 15 10 13 10 10 10 13 13 10 10 10 10 13 10 10 (tO) Sales used 140 130 130 103 190 236 234 201 200 266 274 202 201 200 30 18 27 3247 360 360 360 Value of Production (a) Without the Project S 140/Weed 19,000 221,420 21,420 21,140 21,000 20,300 20,440 20,300 20,160 19,000 19,740 19,000 10,320 19,040 10,900 10,260 18,620 10,340 18,200 10,063 17,920 17,780 (b) With the Projet N 150/Head - 19,300 19.500 24,430 29.030 35.400 35.100 37.650 38.700 39.900 41.100 42.300 43,600 44.850 46.200 47.200 49.050 00,320 52.050 54.000 54.000 54.000 - lucuetfOffealce and Residual Heed Ve1un N - 1,920) )l920) 3,310 0,000 14,070 14,660 17,300 10,040 20,020 21,300 22,700 24,330 20,810 27,200 20,940 30,430 32,210 33,030 35,943 36,000 271,350 21/ Stock LEd of Year 4/ Head 1,400 1,400 1,400 1,490 1,330 1,000 1,020 1,620 1,720 1,770 1,030 1,000 1,940 2,000 2,060 2,120 2,100 2,200 2,310 2,400 2,400 2,400 Offtekhes/ 7. 20 20 20 25 23 25 23 23 20 20 20 25 ~ 23 25 25 20 23 20 25 25 25 25 Offtake N.. 200 280 208 373 383 395 405 410 430 443 450 470 403 300 513 530 540 363 078 600 600 600 Ifftake Value 6/ N 3,360 4,200 4,320 5.595 5,745 5.925 6,07 5 6.270 6,450 6.645 6.070 7.050 7.275 7.500 7,7220 7.950 0.175 8,445 8.670 9.o00 9.000 9.000 2e- -netal and Rneid-al Herd V.tue N - 040 000 2.233 2,385 2.363 2.715 .2,915 2.090 3.285 3.510 3.690 3,915 4.140 4.365 4,590 4.815 5.005. 5.310 5.640 5.640 20,440 7/ Total Incremete1 Off take ned Reidual Reed Value N - (i o08 (1.08& 5.545 10.73 12.300 17.375 20.260 21.63 23.3305 24.070 26.3990 28,24 29.930 31.663U 313.330 3245307.293 39.160 41.000 41.720 291.790 7/ feeoiog Pee. B/ HN 700 721 743i 74 0 1 3 0 a 1 0 0 9 ,10 1159 1Ui ,142 1,l3g ,11z-, 1.200 1.200 TOTAL RCHEICRYd2 BIRFITS HN (3203 (359) 6,280 12.002 18.,169 18.187 21.096 22,491 24,192 25~,704 27,331 23';214 311,940 32,693 34,559 30,336 31,419 40a317 42,700 42,920 292,990 1I/ Poture gr-ieff.. reere are alredy fully enpliofted ky so-tic heeds 2/ Cartyg at cpacity befere develop.eet - 2,000 cattle durIng 6 macthe/year (r-iy ......n) end 300 cettle dociug 6 mothe,Ynnr (dr season..) - 1,400 cattle on syn- coned keels .. teylaf eqeity will docble In 14 yeac 9/Wicknut the p-nj-t, cteyieg capacity and therfore cattle heed will decrease by 1%. per year, dun to mpen..ion of .9 ith11 tha Pee~ut the cattle hard and oheap/guct Cloak I. i--inaog by 3% per yaur, until they ec-h ruiac Oe. thut nan h. utEeori,td. 35/ Doe- ot iselude eosireste- off take 6/ N 12 per anie,el kefoce devlopmet end In yea PT 1: eft-rwado N 15 peead- l 21/ Renldua1 hnrd vsltn. 0/ H 0.50 pee A. U. par yaur. De-enhe 14, 1973 NIGERIA LIVESTOCK DEVELOPMENT FROJECT Grazing Reserves Kukar Jangarai - 300,000 ac. Investm nt Costs (N) ~------ ---------------Protect Year-______________ 2 3 4 TOTAL Unit No. No. No. No. Unit Cost Units Cost Units Cost Units Cost Units Cost FIXED INVESlMT Stock Handling Facilities and Fencing Handling Yard, Dip, Holding Paddocks ..... Unit 7,000 1 7,000 D - 1 7,000 Fencing .lile 700 4 2,800 4 2,800 4 2,800 12 8.400 Sub-Total 9,800 2,800 2,800 15,400 Housing and Ranch Buildings House: Range Office .Unit 10,000 1 10,000 -- - 1 10,000 Field Assistant .Unit 1,000 2 2,000 - - - - 2 2 ,000 Laborer .......................... Unit 500 4 2,000 - - - - 4 2,000 Office/Storeroom .Unit 2,500 1 2,500 - - - 1 2-50G Sub-Total 16,500 16, 500 Vehicles and Equipment Four Wheel Drive Vehicle ................... Unit 4,500 1 4,500 _- - - 1 4,900 Veterinary Equipment ...................... Set 300 1 300 - _- - 1 300 Tools .Set 400 1 400 _- I _ 1 0 Sub-Total 5,200 5,200 Pasture Improvement Land Clearing, Seed Bed Preparation and Sowing Ac 55 500 27,500 500 27,500 ,500 27,500 1,500 82,500 Fertilizer 1/ .Ton 180 125 22,500 125 22,500 125 22,500 375 67,59o Seed 2/ .Lb 1.20 5,000 6,ooo 5,000 6,000 5,000 6,000 15,000 18,000 Pesticide / .Gal 10 500 9,00 500 5,000 500 5.000 1,500 15,000 Sub-Total 61,000 6i,0o0 61,000 183,000 Physical Contingencies 10% ., 9,2;0 6,380 6.380 22.000 TOTAL FIXED IN7EST1ENT 11..750 70,180 70,180 242.000 1/ Assumes application of triple superphosphate at 2.5 cwt per as at sowing and 2.5 owl per ac 6 months later. 2/ Assumes sowing rate of 10 lb of mixture/ac. 3/ Assumes application of formicide at the rate of one gal/ac. December 14, 1973. ANNEX 1 1 Table 5 NIGERIA LIVESTOCK DEVELOPMENT PROJECT Grazing Reserves Kukar Jangarai - 300,000 ac Operating Expenses, Grazing Fees and Incremental Production ----- Project Year -------------- OPERATING EXPENSES 2 3 4 5-21 Salaries and Wages Range Development Officer 5,000 5,000 o,00 5,000 Field Assistant 1/ 1,200 1,200 1,200 1,200 Laborer 2/ 1,600 1 600 1 600 1 600 Subtotal 7,800 Maintenance Stock handling facilities, fencing and buildings / 1,310 1,450 1,590 Vehicle Expenses Four wheel vehicle 1,560 1,560 1,560 1,560 Vehicle Replacement / 900 900 900 900 Pasture Maintenance Fertilizer 6/ - 11,250 22,500 33,750 Miscellaneous 515 1,140 1,710 2,280 TOTAL OPERATING EXPENSES l0u775 C3,960 352920 47,880 GRAZING FEES 8/ - 2,400 4,800 7,200 INCREMENTAL PRODUCTION Increased carrying capacity (AU) - 1,000 2,000 3,000 Offtake 10A - 100 200 300 Value of Offtake 9/ - 16,000 32,000 48,0oo 1/ N 600 per year. 7/ X 400 per year. 3/ 5 % of cost of construction beginning with the year following construction. / 12,000 miles per year at N 0.13 per mile for fuel oil, grease, spare parts, repairs and insurance. / 20% of cost of vehicle beginning with year of acquisition. E 2.5 cwt of triple superphosphate per ac per year at N 180 per ton. / 5$ of Operating Expenses. N 2.40 per AU per year on assumed carrying capacity of 1,000 AU in year 2; 2,000 AU in year 3; and 3,000 in year 4 onwards. 9/ N 160 per head. December 14, 1973 ANNEX 12 iGErIA L19ESTWOCK DW ? PROJECT LPU Investmant O"rating sad Technical Service Costs (N) CATECORY unit No . --------------------------------Project T"er - __ --- -________- - ------- Total Coat tnits 1 2 3 4 5 6 7 8 Cost FIXED INVESTTN Vehic lea Four Wheel Drive Vehicle 4,500 8 36,000 - - - 36,000 - _ _ 72,000 Staff Vehicle 3,500 3 10,500 - - - 10,500 - - - 21,000 Pick-up Truck (15 cut) 5,000 3 15,000 _ - - 15.000 - - - 30.000 Slb-Total 61,500 61,500 123,000 Office Furnishings Office Furniture 8,000 - - - - - - - 8,000 Office Equipent 8 000 _8000 Sub-Total 16,000 16,000 Physical Contlngencies 10% 8,000 _ _ - 6,100 - - - 14,100 TOTAL FIXED IVzSTSNT 85.500 _ _ 7 .600 - - - 153.100 OPERATDIC EXPENSES Salaries and Wages Psoject Meager ) 27,000 p.a. 1 27,000 27,000 27,000 27,000 27,000 27,000 - - 162,000 Ranch Plan-ing Officer 1 23,000 P.O. 1 23,000 23,000 23,000 23,000 23,000 23,000 - - 138,000 Accountant 2 - 23,000 P.C. 1 23,000 23,000 23,000 23,000 23,000 23,000 - _ 138,000 Ranch Technical officer 5 17,000 p.s. 3 51,000 51,000 51,000 51,000 51,0DO 51,000 - - 306,000 Deputy Project Manager 2/ 8,000 P.-. 2 16,000 16,000 16,000 16,000 16,000 16,000 16,000 16,000 128,000 Counterpart Staff 5,000 P.m. 7 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 280,000 Secretary 3,000 p.O. 1 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 24,000 Assistant Senretary 2,000 p.a. 3 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 48,000 Chief Clerk/Typist 1,600 p.s. 2 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 25,600 Driver 600 p.s. 10 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 48,000 Messenger 400 p.s. 4 1.600 1.600 1.600 1.600 1.600 1Q600 1,600 1 600 12A800 Sub-Total 194,800 194,800 194,800 194,800 194,800 194,800 70,800 70,800 1,310,400 OTHER EXPENSES Vehicle Running Four Wheel Drive Vehicle 3/ 12,500 12,500 12,500 12,500 12,500 12,500 12,500 12,500 100,000 Staff Vehicle 4/ 2,900 2,900 2,900 2,900 2,900 2,900 2,900 2,900 23,200 Pick-up Truck (15 cwt) 5/ 4,700 4,700 4,700 4,700 4,700 4,700 4,700 4,700 37,600 Repairs and Maintenance Office Furnishings 6/ 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 12,800 Per Dien Allowances Proiessional Staff 7/ 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 32,800 Non-pro-essional Staff 8/ 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 12,800 Office Etpenose Telephone, Postage, etc. 2,300 2,300 2,300 2,300 2,300 2,300 2,300 2,300 18,400 Sub-Total 29,600 29,600 29,600 29,600 29,600 29,600 29,600 29,600 236,800 Miscellaneous 9/ 22,600 22,600 22,600 22,600 22,600 22,600 10,600 10,600 156,800 TOTAL OPERATING EXPENSES 247 000 247 000 247 000 2450 247.000 247.000 111 000 111.000 100 TEChNICAL SERVICES Consultants 10/ 6,000/mo 52 72,000 72,000 72,000 20,000 19,000 19,000 19,000 19,000 312,000 Establisbh-ent of Pilot Seed Production Progran 11/ - 41,500 23,000 - - - - - 64,500 out of Country Training of Counterpart staff 12/ 6,000/yr 16 - 24,000 240000 24.0oo000 24_ 96.000 TOTAL TECHNICAL SERVICES COSTS 72_000 137 500 119 000 44 000 43 000 19 .00 19 00 19.000 472 5 1/ Allocation for expatriate appointees includes barn salary plua gratuity of 10., travel and resettlement expenses and educational allowance. 2/ Assuses appointment of one Nigerian Deputy for Western State activities to be located in Ibadan and one to work directly with the Project Director in laduna. 3/ 12 000 niles per year per vehicle at N 0.13 per mile for fuel, oil, grease, spare parts, repairs and insurance. 4/ 12,000 ile per year per vehicle at N 0.08 per mile for fuel, oil, grease, spare parts, repairs and insurance. S/ 12 000 uile per year per vehicle at N 0.13 per nile for fuel, nil, grease, spare parts, repsirs and insurance. 6/ 10% of cost beginning with year of acquisition. 7/ NIO per day for four professionl stff for en average of 100 days per year. 8/ N4 par day for four non-professional staff for an average of 100 days par year. 9/ 107. of operating expenses. 0I/ 12 man monthe to undertake annual evaluation of the project; 12 an months consultant to carry out a livestock taxation study; 2 man months to prepare terms of reference for * study of reclmation of lands cleared from tetee flies and 26 man months to prepare follow-up livestock projects. 11/ 4 man onths consultancy in nY 2. L2/ 16 man yeara of advnsad training in grsal.aWani.al pros&tion sommoisg in PY 2. Deaemr 14, 1973 ANNEX 13 NIGERIA LIVESTOCK DEVELOPMIENT PROJECT Research and Training Center (Mlokwa)-i In-tnent and Operting ExPenses. (N) Unit Mie.-F--------------- rojet Yer- ---------------- Total CATEGORY Cost Units 2 3 4 5 6 Cos FIXED INVESTMENT Field REpenie-natis_2/ .............9,200 9,200 9,200 9,200 9,200 46,000 Teaching Facilities and Equipeest ........9,200 4,600 4,600 4,600 4,600 27,600 Student Reusing 3/.................19,800 - - - - 19,800 Four Wheel Drive Vehicle ..........I 4,500 4 18,001 0 18,000 Wheel Tractor, 65 HP..............4,500 2 9.000 ____ 900 Sob-Total................ 60,200 13,800 13,800 13,8O0 13,800 120,400 Fhyeical toetingenc.iss 107 ......... 6,50Q 1.400 1a400 1 400 12A400 12.100 TOTAL FIXED INVESTMEENT .....0....20.....2.0... 201 15.200 132.500 OFERATING EFPENIES ioirinn and Wagnes Office in Charge -Livetock Production)....23,000 1 23,000 22,000 23,000 23,000 23,000 115,000 Research Oifieec, P--Ptr Fr-dectien ) 4/ ..20,000 1 20,000 20,000 20,000 20,000 20,000 100,000 Researh Officer M- SOchaltio- )....20,000 1 20,300 20,000 20,000 20,000 20,000 100,000 iCocerpoart Sta.ff 5/..... .........5,000 6 30,000 30,000 30,000 30,000 30,000 100,000 Secretary ..... ........3,000 1 3,000 3,000 3,000 3,000 3,000 15,000 Chief Clerk........... . . ::" ....1,600 1 1,600 1,600 1,600 1,800 1,600 0,000 Field Aus~istant. . ........ ...... 600 6 3,600 3,600 3,600 3,600 3,600 18,000 Tiactoc Driver .......... . ....... 600 2 1,200 1,200 1,200 1,200 1,200 6,000 Mea sunnier/Cleaer ............... . 400 2 800 800 800 800 800 4,000 L.horer ............ . ........ 400 6 2Z400 i2Q40 2J400 2j400 2400 12.000 S.h-T.t1 .................1560l0,0 100,600 105,600 105,600 528,000 Tractor and Vehicle Enpeo..s Crau1er Tractor 6/ ..........,400 5,400 5,400 5,400 5,400 27,000 Wheel Tractor 7/ ......... 4,000 4,000 4,000 4,000 4,500 22,500 Wheel Trotter Repleceeert 0/ ....1,800 1,800 1,800 1,800 1,800 9,000 Pour Wheel Drive Vohiele __/ .....5,200 5,200 5,200 5,200 5,200 26,000 Vehicle Repla-x-t 8/ ............3.600 3.600 3.600 3,602 32600 10.000 Ink-Total................ 20,500 20,500 20,500 20,500 20,500 102,500 Travl and Living Exposer Students 10/ .................24,000 24,000 24,000 24,000 24,000 120,000 Teehing Staff II/ .............. 5.000 5.000 5.050 5.000 5A000 25.000 Sub-T.tal ................29,000 29,000 29,010 29,000 29,000 145,000 Mainte-nanc 12/ ............... 1.900 2.003.224,0 4.700 16,500 Micelnec ................2. ,300 7,900 8,000 8,000 8,000 39,200 TOTAL OFERATINO EXPENSES............164,300 1660 1640 1710 1780 8320 TOTAL. FIXED0 INVESTMENT ADOS OFERATIC REIENSERS .... 236.000 18801160 18.01300 9320 1/ A proportion of this budget, to he decided upon hy the Project Director, will be allocated to reunatch and training at the Foshola ub-.ernter. 2/ Estahlishment of 100 a- of pers.eant reperi-nntal plots spread ever 5 years. 3/ Conversion of refuting huildiogs at Mkcltw and Faehola for class.rooms and doritories. 4/ Alloctions for expatriate etaff include base salaries pl.s gratuity of 15%, travel and resettlement ampenoes and educational allowa...na. 5/ Assume appointment of two graduate couterparts for each expatriate specialist. 6/ 600 hours par year at NO per hou for hire charge. 7/ 1,500 beers per year per trotter at 01.5 Per beer for fuel, oil, grease,. spare poets and repaires. 8/ SOT of cot beginning with year of acquisitio.. 9/ 10,000 miles per year pee vehicle at N 0.13 per mile for fuel, oil, greas, opera parts, repairs and insurane. TO/ 56 per day per student for 20 students f or 200 days per year. T11/ N25 per day per lectorer fer 2 guest lcuesfor 100 days. 12/ ST of test of field plots, teaching facilities and equipment and student boosisg. 13/ 57, of operating eupense.. D-eeber 14, 1973 ANNEX 14 Table 1 NIGERIA LIVESTOCK DEVELOPhENT PROJECT Heavy Equipment Unit Investment Costs (N) Project ---- Year 1 -------------- Unit No. Cost Cost Units FIXED INVESTMENT Tractors and Graders Crawler Tractor, 180 hp, Caterpillar D7 or equivalent 1/ 52,000 3 156,000 Crawler Tractor, 140 hp, Caterpillar D6 or equivalent 2/ 36,000 4 144,000 Wheel Tractors, 100-110 hp ......... ....................8,000 3 24,000 Wheel Tractors, 60-65 hp ...........................,.4,500 4 18,000 Motor Grader, 115 hp, Caterpillar 112 or equivalent ..... 30,000 3 90,000 Sub-total 432,000 Vehicles Four-wheel-drive vehicle .............. 4,500 7 31,500 Four-wheel-drive vehicle (Mobile Workshop) , 10,000 2 20,000 Truck, 5-ton .. ......... 8,000 2 16,000 Tractor Transporter ..................................... 22,000 3 66,000 Subtotal 133,500 Machinery and Equipment Clearing Blade and Related Equipment for D7, Rcme KGA7E or equivalent .................. 3,800 3 11,400 Clearing Blade and Related Equipment for D6, Rome 'GA6C or equivalent .3,000 4 12,000 Treepusher for D7, Fleco TPT7 or equivalent 5............. ,800 1 5,800 Treepusher for D6, Fleco TPT6 or equivalent ............. 4,600 1 4,600 Plowing Disc Harrow, Rome TRW 24-30 or equivalent ....... 8,100 7 56,700 Pulverizing Disc Harrow, Rome TCW 40-24 or equivalent 3/ 5,300 7 37,100 Root Plow, Fleco D7 or equivalent ....................... 8,100 3 24,300 Root Rake, Fleco D7 or equivalent .................. 5,300 3 15,900 Scraper, Caterpillar D7 or equivalent ................... 20,700 3 62,100 Cable Control, Caterpillar 127 or equivalent ............ 5,500 3 16,500 Clearing Chain, 300 ft .. 3,700 2 7,400 Ripper, Caterpillar 7 or equivalent, 3 Teeth ............ 8,100 3 24,300 Ripper, Caterpillar 6 or equivalent, 3 Teeth ............ 6,400 3 19,200 Cab Screen and Radiator Guard for D7 .................... 3,500 3 10,500 Cab Screen and Radiator Guard for D6 .... ................ 2,800 4 11,200 Trailers, Heavy Duty .................................... 4,600 4 18,400 Sod Seeder, 13 Coulter, Heavy Duty ...................... 2,300 4 9,200 Fertilizer Distributor, 4-5 ton Capacity ................ 2,300 4 9,200 Cambridge V-Roller with Seed and Fertilizer Boxes ....... 1,400 4 5,600 Tools and Workshop Equipment 16,000 Office and Radio Communications Equipment 9,200 Spares 4/ ...................................... . 48,000 Subtotal 434,600 Physical Contingencies 10% ..........................7, 99,900 TOTAL FIXED INVESTMENT 1,100,000 1/ Equipped with powershift; crankcase; trackroller and cab guards; pull-hook; lights; hydraulic controls; model 57 winch; No. 7A bulldozer. 2/ Equipped with powershift; crankcase; trackroller and cab guards; pull-hook; lights; hydraulic controls; model 56 winch; No. 6A bulldozer. 3/ Equipped with chain harrow for levelling. 4/ Based on 52 of total purchases. December 14, 1973 ANNEX 14 Table 2 NIGERIA LIVESTOCK DEVELOPMENT PROJECT Heavy Equiument Unit Income and Operating Expenses (N) Unit No. ------------------- Project Years --------___ Cost Units 2 3 4 5 6 Total INCOME Payments for Private and State Ranches participating in project 450,060 414,530 401,300 51,750 25,875 1,343,515 Payments for Pasture Establishment in Kukar-Jangarai 23,000 23,000 23,000 - - 69,000 Payments for work undertaken on Group Ranches in Mubi Area ............... 62,500 109,480 78,200 - - 250,180 Payments for work undertaken for private individuals 1/ ............. - - - 287,500 264,500 552,000 TOTAL INCOME 535,560 547,010 502,500 339,250 290,375 2,214,695 OPERATING EXPENSES Salaries and Wages 2/ Heavy Equipment Specialist 3/ ...... 20,000 p.a. 1 20,000 20,000 20,000 20,000 20,000 100,000 Counterpart Staff 4/ ............... 5,000 p.a. 2 10,000 10,000 10,000 10,000 10,000 50,000 Accountant .5,000 p.a. 1 5,000 5,000 5,000 5,000 5,000 25,000 Plant Supervisor .4,000 p.a. 3 12,000 12,000 12,000 12,000 12,000 60,000 Secretary .3,000 p.a. 2 6,000 6,000 6,000 6,000 6,000 30,000 Poreman Mechanic ...... ............. 2,400 p.a. 3 7,200 7,200 7,200 7,200 7,200 36,000 Mechanic/Fitter ....... ............. 1,600 p.a. 6 9,600 9,600 9,600 9,600 9,600 48,000 Chief Clerk/Typist ................ 1,600 p.a. 2 3,200 3,200 3,200 3,200 3,200 16,000 Storekeeper/Clerk ...... ............ 1,200 p.a. 2 2,400 2,400 2,400 2,400 2,400 12,000 Crawler Tractor and Grader Driver .. 1,200 p.a. 10 12,000 12,000 12,000 12,000 12,000 60,000 Wheel Tractor Driver 800 p.a. 7 5,600 5,600 5,600 5,600 5,600 28,000 Clerk .800 p.a. 4 3,200 3,200 3,200 3,200 3,200 16,000 Vehicle Driver. 600 p.a. 14 8,400 8,400 8,400 8,400 8,400 42,000 Laborer ..... . . ..... 400 p.a. 10 4,000 4,000 4,000 4,000 4,000 20,000 Subtotal 108,600 108,600 108,600 108,600 108,600 543,000 Running Costs of Tractors and Vehicles Crawler Tractors 5/ 166,000 152,000 139,000 111,000 97,000 665,000 Wheel Tractors 6/ ................ 21,000 16,800 16,800 12,600 12,600 79,800 Motor Graders 7/ ................,,, 18,500 15,500 15,500 12,500 12,500 74,500 Four Wheel Drive Vehicles 8/ 14,050 14,050 14,050 14,050 14,050 70,250 Trucks, 5-ton 9/ 3,000 3,000 3,000 3,000 3,000 15,000 Tractor Transporters 10/ 3,750 3,750 3,750 3,750 3,750 18,750 Subtotal 22d,300 205,100 192,100 156,900 142,900 923,300 Repairs and Maintenance Machinery and Equipment 11/ ........ 9,700 9,700 9,700 9,700 9,700 48,500 Subtotal. 9,700 9,700 9,700 9,700 9,700 48,500 Field Allowances Professional Staff 12/ ...... 4,000 4,000 4,000 4,000 4,000 20,000 Non-Professional Staff 13/ 24,000 24,000 24,000 24,000 24,000 120,000 Subtotal 28,000 28,000 28,000 28,000 28,000 140,000 Misc ellaneous 14/ 18,600 17,600 16,600 15,200 14,500 92,500 TOTAL OPERATING EXPENSES 391,200 369,000 355,000 318,400 303,700 1,737,300 NET OPERATING INCOME 144,360 178,010 147,500 20,850 (13,325) 477,395 (Total Income - Total Expenses) 1/ In years 5 asd 6 it is envisaged that a total of 1,250 and 1,150 days of work, respectively, will be undertaken for private ranchers by equipment from the usit. 2/ Overtime is included where appropriate in the wages of drivers and mechanics. 3/ Allocation for expatriate specialist includes base salary plus gratuity of 10X, travel and resettlement expenses, and educational allowance. 4/ Assumes appointment of two agricultural graduates to work as counterparts to the heavy equipment specialist. 5/ 3,000, 2,750, 2,500, 2,000 and 1,750 hours per Crawler per year for years 2, 3 4, 5 and 6 respectively at N 9.00 per hour per D7 Crawler and at N 7,10 per hour per D6 Crawler for fuel, oil, grease, spare parts and repairs. 6/ 2,000, 1,600, 1,600, 1,200 and 1,200 hours per Tractor per year for years 2,3 4, 5, and 6 respectively at N 1.50 for fuel, oil, grease, spare parts and repairs. 7/ 1,200, 1,000, 1,000, 800 and 800 hours per Grader per year for years 2, 3, 4, 5 and 6 respectively at N 5.15 per hour for fuel, oil, grease, spare parts and repairs. 8/ 12,000 miles per year per vehicle at N 0.13 per mile fir fuel, oil, grease, spare parts, repairs and insurance. 9/ 10,000 miles per year per vehicle at N 0.15 per mile for fuel, oil, grease, spare parts, repairs and insurance. 10/ 5,000 miles per year per vehicle at N 0.25 per mile for fuel, oil, grease, spare parts, repairs and insurance. 11/ 2½7, of cost beginning with year of acquisition. I2/ N 10.00 per day for two professional staff for an average of 200 days per year. 13/ N 4.00 per day for 30 non-professional staff for an average of 200 days per year. 14/ 5° of operating costs; includes administrative expenses. December 14, 1973 ANNEX 15 Page 1 NIGERIA LIVESTOCK DEVELOPMENT PROJECT Outline Terms of Reference for Consultants A. Terms of Reference of the Technical Auditor 1. The consultant would be a senior livestock production specialist of international experience and reputation in livestock production and livestock project management in region(s) ecologically similar to Nigeria. The objective of the consultants' work would be to review the technical progress of the project and to provide technical advice and support to the Project Director and staff. To that purpose, the consultant would be expected to make two annual visits to the project of about one month each to review on the spot each of the project components. Within 45 days of each visit, the consultant would submit reports (a) to the Permanent Secretary, Federal Ministry of Agriculture and Natural Resources on the project overall, (b) to NAB on those aspects of the project that NAB finances, and (c) copies of both reports to the Bank. During the first year of the project, the consultant would assist LPU and the public ranching companies to set up systems of technical data collection and analysis for the purpose of a continuous technical monitoring of project development. 2. The work of the consultant would include, inter alia., critically evaluating and making appropriate recommendations concerning the following: (a) performance of all components of project management, (b) ranch and grazing reserve performance as evidenced by stocking rates, calving and weaning rates, mortality rates, rates of weight gain, culling rates, and other relevant livestock standards, (c) formulation and application of project stocking, breeding, feeding, and pasture and forage policies, (d) formulation and application of range management policies for the grazing reserves, ANNEX 15 Page 2 (e) planning and execution of the project training program, both local and overseas, (f) field extension techniques and standards of technical assistance provided to private ranchers and smalIholder fatteners, (g) execution of the project research program, and (h) execution of the program of importation and multiplication of pasture seeds and cultivars. B. Terms of Reference of the Livestock Taxation Study 1. Nigerian cattlemen owners are subject to "Jangali" a per head of cattle tax. Jangali is very unpopular with herdsmen who employ various ruses to avoid compliance and consequently collection rates seldom exceed 5o-6o%. Traditional herdsmen do not differentiate between the Government extension agent and tax collectors and as a result extension agents find it difficult to gain the confidence of cattlemen. Thus, in its current form Jangali is a constraint to the development of improved animal husbandry techniques within the traditional livestock sector. On the other hand, Jangali is an important source of revenue for state and local governments and cannot be abandoned unless it is replaced by a workable alternative. 2. An experienced and qualified firm of consultants would be engaged under the project to examine alternatives to Jangali which would ultimately remove the cattle owners' distrust of Government's extension and veterinary agents but at the same time permit the collection of a reasonable level of taxation from the livestock industry. 3. Specifically, the consultants would inter alia: (a) describe and analyze relevant local, state, and federal livestock taxes and duties emphasizing Jangali but also including: (i) marketing taxes, (ii) slaughter taxes, ANNEX 15 Page 3 (iii) dealers and butchers licenses, and (iv) import taxes and duties on live animals, meat and other animal products. (b) critically review the organization and administrative procedures of the above taxation systems paying particular attention to: (i) collection procedures, (ii) responsibility for tax administration, (iii) expected and actual tax collections and factors responsible for any existing divergence, and (iv) expected and actual cost of tax collection. (C) evaluate the relative importance of the different forms of livestock taxes to federal, state, and local Government finances. 4. In the light of the above analysis, the consultant5would propose appropriate modifications to the existing system of livestock taxation in order to achieve the objectives set out in para 2. They would propose methods to implement their proposals and would evaluate the effect of such proposal in terms of Government revenue. 5j. The consultants would evaluate the merits of creating a "livestock fund" which would permit the establishment of stable relation between revenues collected from the livestock sector and the allocation of Government rescurces to the sector and, if necessary, specify means to finance and administer such a fund. 6. The consultants would investigate the extent to which cattlemen could be expected to pay directly for Government services such as animal health, watering facilities, etc. Qualifications of the Study Team 7. It is envisaged that the study would require the services of a livestock specialist, experienced in livestock production under conditions similar to Nigeria, and of an economist with experience in fiscal theory and policies. Each consultant would be engaged for six months, four months would be spent in field work and two months in report writing. A report would be submitted to the Government and the Bank no later than after eight months from the start of the study in the field. ANNEX 1l Page h C. Preparation of a Detailed Identification Report for Development of Projects Within the Areas to be Cleared of Tsetse-fly in Nigeria 1. Internationally recruited consultants would be hired to prepare an acceptable strategy for the development of tsetse-fly eradicated land areas, mainly within the area known as the "middle belt" of Nigeria, and to identify priority areas which could form the basis of rational project development. Further consultancy services would be engaged in due course to carry out detailed project preparation. The study would proceed as follows: (a) a survey of resources made available or due to be made available through tsetse clearance operations, (b) the development of an agricultural strategy to take into account the production needs of the country in relationship to the land use and social constraints inherent in the areas studied, and Cc) the preparation of detailed terms of reference for the preparation of the identified projects, together with the relevant manpower requirements and estimated costs. 2. Prior to calling for consultant proposals the Government and the Bank would consult on the detailed terms of reference for the identification study. Background 3. Over the past ten years, 34,000 square miles of tsetse infested land has been reclaimed, leaving about another 50,000 square miles to be reclaimed. These areas cover the Sudan, Sub-Sudan and Northern Guinea zones. The United Kingdom has provided technical assistance to identify areas where tsetse clearance is possible and, in addition, is making recommendations on agricultural development and land use for the areas. The North East State has been fully surveyed, and a land resource report has been published. A similar report is currently being prepared for the North Central State. Federal Government is aware of the need to properly develop these areas being cleared of tsetse, but no plans have been prepared; and, in general, current development is haphazard. ANNX 15 Page 5 IL. In the recent IBRD agricultural sector review, it was pointed out that the reclaimed areas has high potential for both crops and livestock production, and that if planned and managed properly, could make a significant contribution to Nigeria's beef and cereal supplies. The greater part of the areas which might be reclaimed lie within Benue Plateau State, Kwara State and the Southern portion of the North Eastern, North Central and North Western States. 5. Even though ODA is preparing land use maps for the areas cleared of fly, no real strategy for development has been proposed by Government, except that development should be related to the potential land use of the area. Over the last ten years, as tsetse clearing has been undertaken itinerant graziers and settlers have moved in and taken up land. If this haphazard development is allowed to continue, then large areas with high potential for various agricultural uses will be lost or, at best, be farmed at a subsistence level. The opportunity should now be taken to properly plan the areas on a regional or zonal basis, taking into consideration agricultural aspects, tenurial, social and general infrastructure require- ments. The plans should lead to a phased investment program which would be developed over perhaps a twenty-or thirty-year program. 6. In brief, planning should include: (a) Agriculture. There are various types of farming systems ranging from extensive ranching, mixed farming and arable smallholders. There is a case for the development of all these systems. Properly managed ranches would reduce some of the overstocking procedures in the North and could produce significant quantities of beef for the fast growing urban sector. Commercial mixed farming, based on one-or two- tractor units, could be considered desirable for three reasons: (i) to enable private capital gained in industry to be reinvested in the land - and there are many Nigerians with money who would welcome the opportunity to farm commercially; (ii) to provide employment for those rural people who do not want to have management responsibilities; and (iii) possibly most importantly there is a need for a commercial farming sector to involve itself in specialized production such as seed multiplication for distribution to the smallholder sector. The smallholder development could also be an important component of any zonal planning and might include intensive settlement schemes for people from the overpopulated areas of Nigeria. Other settlement schemes could be envisaged on a much more extensive and low cost basis, whereby the minimum infrastructure is presented (e.g. roads and water supplies), thereby allowing spontaneous settlement to take place. ANNEX 15 Page 6 (b) Land Tenure. Since most of the land is reclaimed land and generally empty, land rights are not bound by tradition and could be rationalized, resulting in either freehold or leasehold titles, together with all the advantages which go with the security of title. (c) Social Services. In these large areas, social services including health, water supplies, schooling, would need to be considered and included in the overall plan; and (d) General Infrastructure. Would include all the support, physical and administrative, services necessary to serve the people who take up business within the planned area; such services would include markets and marketing, credit, feeder and crop extraction roads, soil and water conservation, research and possibly investments for the initiation of rural industries. 7. In effect, the opportunity should now be taken to plan regional and agricultural development for the future. The planning and investments could be large, because here for the first time in Africa, South of the Sahara, is a country with a very large population (70 million), much of it under pressure, with large amounts of new land due to become available. 8. The immediate need is to assist the Nigerian Government to prepare regional or zonal development plans for the land cleared of tsetse and that to be cleared in the future. Basic planning can be carried out using the land use information being prepared by ODA, existing aerial photography and 1:50,000 topographical maps. The order of planning would be as follows: (a) A broad survey of the area to determine: (i) the effectiveness of tsetse eradication and the degree of reinfestation; (ii) the land use; (iii) the existing infrastructure and services; and (iv) the human and livestock production; (b) Categorizing the priority areas by potential for livestock and crop production; (c) Preparation of a schedule of phased development based on (b) above for the cleared and the uncleared areas, taking account of potential social and economic needs of the country. ANPX 15 (d) Preparation of a detailed feasibility study fQr thooe priority areas for which development wol "b i3 4a during a five- or six-year period. Tha stu WM w include all the proposals in para 4i, WiO anf Qt' factor which might be pertinent to the ar.,9to Q developed. Except for the inclusion of inegnaive irrigation schemes, detailed soil surveys wi*ld be unnecessary. Requirements The preparation of the identification report is e_pqctq4 to take about four months (inclusive of report writing). The con's i, t team qld be made up as follows: Team Leader - 4 months Land Planner - 4 months Agriculturalist 4- months Commercial Livestock/Crop Specialist - 4 months Hydrologist - 2 months Road Engineer - 2 months Economist - 2 months Total 22 manR-months The consultants)who would be internationally recruited,would be selected on the basis of their qualifications and experience with particular respect tc: (a) a wide range of different types of agricultural developlaent; (b) the preparation of large-scale planning for land use and regional development. ANNEX 16 NIGERIA LIVESTOCK DEVELOPMENT PROJECT Pro.ect Coat Suat,cY (N) -------------------------------------------- P-j-t Year -------------o- 1 2 3 4 5 6 7 _ Total NELC L! Infrastructure and equipment - 210,000 110,380 84,200 - - - ' 404,580 Breeding cattle - 93,700 77,100 54,300 67,700 _ _ 292,800 Incremental fatteoiog cattle - 70,950 179,960 113,300 77,880 _ , 442,090 Working capital t _ 167.280 135,470 218.380 207.830 - - 728,960 subtotal - 541.930 502.910 470.180 353.410 * - - 1,868,430 WLC /2 Infrastr-cture aod equipment - 875,270 510,700 399,080 - - - - 1,785,050 Breoding cattle - 651,150 333,950 337,100 349.700 - - - 1,671,900 Increcmental fattening cattle - 591.000 22.400 451.100 - - - - 1 064 500 Waking capital - 175,100 875,000 592,000 775,000 . . 2,417,100 Subtotal . 2,292,520 1,742,050 1,779,280 1,124,700 . 6,938,550 Infta-tr-cttro and equipment - 314,300 194,800 153,800 - - - - 662,900 Working capital - 501.920 - - , , _ 501.920 Subtotal - 816.220 194.800 153.800 - - - - 1.164.820 Private Farmers/Traders InfEast-uctore and equip-ent /4 - 581,400 385,200 449,000 127,600 63,800 - - 1,607,000 breeding cattle /4 _ 126,000 249,000 510,000 565,000 290,000 169,000 - 1,909,000 Incremental fattening cattle 4 - 378,000 223,650 158,550 32,550 - - - 792,750 Wor-kig capital 14 - 145,080 190,800 88,580 124,860 24,180 26,600 - 600,100 Technical services [5 1.150 2.160 3.930 4.000 4.000 4.000 4.000 4,000 27.240 l,bto1l1 1.150 1.232.640 1.052.580 1.210.130 854.010 381.980 199,600 4.000 4.936,090 SIalholder Fatteners Incremental fattening cattle /6 - 88,000 77,000 165,000 330,000 165,000 - - 825,000 Incremental feed /6 - 22,400 19,600 42,000 84,000 42,000 - - 210,000 Technical services L5 3.450 5.180 6,560 10.070 10,650 11,800 11.800 11,800 71,310 Subtotal 3,450 115.580 103.160 217.070 424,650 218,800 11,800 11,800 1.106,310 G-azing R.eerves /7 Pulani - Infrastructure and equipment - 204,600 358,050 255,750 - - - - 818,400 Other expenses antil completion of eeserve - 58,800 171,500 263,230 278,490 282,760 214,080 88,500 1,357,360 Kukar Jangarai - Infrastracture and equipnent - 101,750 70,180 70,180 - - - - 242.110 - Other e-penses .ntil conpletion of reserve 10775 23.960 35.920 47.880 47.880 - - 166.415 Subtotal _ 375.925 623,690 625.080 326.370 330.640 214.080 88.100 2.584.285 Proiect Adoinis tratton and Central Services LPU - Vehicles and Equip-ent /8 85,500 - - - 67,600 - - 153,100 Salariea and wages 194,800 194,800 194,800 194,800 194,800 194,800 70,800 70,800 1,310,400 Other eapenses until conpletion of reserve 29,600 29,600 29,600 29,600 29,600 29,600 29,600 29,600 236,800 Consultants 72,000 72,000 72,000 20,000 19,000 19,000 19,000 19,000 312,000 cead naltiplicotioc - 41,500 23,100 - - - - - 64,500 Overseas traiOnin - 24,000 24,000 24,000 24,000 - - - 96,000 heavy Equipment Unit 1/ aachinery and eqipmet 1,1O,000 - - * * 1,100,000 Wor-kig capital /l1 200,000 - - - - 2 _ ,00,000 Research and Training i TIfrastru-ture and equip-ent - 71,700 15,200 15,200 15,200 15,200 - - 132,500 Salaries and wages - 105,600 105,600 105,600 105,600 105,600 - - 528,000 Other exp.esee until completion of reserve - 58.700 60.000 60,800 61,500 62.200 - - 303,200 Subtotal 1.681.900 597.900 524.200 450.000 517.300 426.400 119.400 119,400 4.436.500 Total Project Cost Before Price Contingency 1,686,500 5,)72,715 4,743,390 4,905,540 3,600,44o 1,357,820 544,880 223,700 23,034,985 Price Contingey /12 101,190 705,828 809,469 1,071,704 1,052,574 508,261 224,412 131,862 4,605,300 TOTAL PROJ3CT ODST 1,787,690 6,678,543 5,552,859 5,977,244 4,653,014 1,866,081 769,292 355,562 27,640,285 / A-n.n 6. /2 Apnex 7. /3 Anne- 6 Purchases of steers fur fattening would be financed by seasonal bank overdraft. Ifaximun overdraft repqiremeets would build up to sooe N 1,700,000 in PY 5 and 6 and would decline thereafter. /4 Aneax 9. /5 Staff seconded by State to LPU. /6 Annex 10. /7 Annex 11. /8 Annex 12. /9 Annex 14. /10 Estiated need to cover about 6 nonths operating expenses. /11 Annea 13. /12 6% pee year from year 1-8. Decembhe 14, 1973 ANNEX 17 NIGERIA Livestock Development Pro,iect Estimated Schedule of Disbursement of IBRD Loan (US$'000) Estimated Disbursement Project End of Amount Balance Tear Quarter Disbursed of Loan 1 0 - 21,000 1 300 20,700 2 300 20,1400 3 300 20,100 4 1,600, 18,500 2 1 950 17,550 2 1,050 16,500 3 1,050 15,450 4 1s100 14,350 3 1 950 13,o400 2 950 12,450 3 950 11,500 4 900 10,600 4 1 1,100 9,500 2 1,100 8,400 3 1,100 7,300 4 1,100 6,200 5 1 800 5,400 2 800 4,600 3 800 3,800 4 800 3,000 6 1 800 2,200 2 800 1,400 3 700 700 4 700 December 14, 1973 ANNEX 18 Page 1 NIGERIA LIVESTOCK DEVELOPMENT PROJECT Terms of Reference of LPU Senior Staff A. Qualifications and Experience, Duties and Responsibilities of the Project Manager 1. The Project Manager would be a specialist of international standing recruited to direct and coordinate the execution of the project for its first six years. He would work under the Director, Federal Livestock Department (FLD), to whom he would be administratively responsible, and with whom he would be expected to consult on a continuing basis. 2. The qualifications and experience of the Project Manager would be as follows: (a) A university degree (or its equivalent) in Agriculture or Veterinary Science with a major in Animal Husbandry, Animal Production or an allied field. (b) Actual experience or an indicated potential as a successful project leader able to coordinate the activities of a team of individuals working in various areas of a development program. (c) A broad practical background in ranch development with experience in land clearing, pasture establishment and management, and cattle production, under tropical conditions. (d) Experience in the use of credit in farm development and the ability to prepare and appraise technically and financially viable ranch development plans. 3. The duties and responsibilities of the Project Manager would be: (a) To establish the Livestock Production Unit (LPU) within FLD and direct it on a day-to-day basis. This would include the appointment of staff, delegation of duties and responsibilities, and supervision of work programs of all LPU staff. (b) To assist Government in the identification and selection of the two Deputy Project Managers, the internationally recruited staff and the various counterpart staff to be employed under the project. ANNEX 18 Pag'e 2 (c) To plan, in cooperation with senior project staff, the various work programs to be undertaken, to supervise the work of all staff, and to coordinate implementation of the variottg p6gb3t cobimpo6enits to ensure that the execution of the project as a whdii is orderly and efficient. (d) To undertake responsibility for organizing the selection of the private ranchers and the small-holders who would participate in the private sector credit scheme. (e) To appraise the technical and financial viability of ranch plans prepared by the Ranch Planning Specialist and his staff and recomi- mend appropriately to the Nigerian Agricultural BaA'(NAB) on technical and financial grounds. (f) To ensure that all ranches being financed under the project are given adequate technical supervision and extens-ion assistance ahnd that their development proceeds in an orderly arid efficient fasion. (g) To ensure that records covering all aspects of Project implementa- tion are adequately kept. (h) To report to NAB as and when required by that institution concerning the progress on individual ranches being financed by NAB under the Project. (i) To recommend to Government the names of suitable candidates for out-of-country training, to submit an appropriate course of train- ing to be followed by successful candidates, and to arrange for' the placement of the trainees in selected institutions of higher learning. (j) To recommend to Government the names of suitable candidates to act as Consultants for carrying out studies and for the preparation of follow-up projects, to draw up terms of reference and facilitate the work of the consultants in the field. (k) To prepare quarterly and annual reports for submission to Govern- ment and IBRD and such other documents as they may from time to' time require. ANNEX 18 Page 3 B. Qualifications and Experience, Duties and Responsibilities of Other Internationally Recruited Specialists 4. Under the project, five internationally recruited technical special- ists would be employed to assist the Project Manager and the counterpart staff in the execution of the Project. They would have university degrees (or equi- valent qualifications) in agriculture or a related field with a background of postgraduate work and broad practical experience in the area of their specialty. In addition, three Ranch Technical Officers would be appointed to provide tech- nical support for the public and private sector ranch development programs. They would be certificate or diploma holders in agriculture or an allied field with 8-10 years experience in ranch development and grassland cattle produc- tion under tropical conditions. Details of the job descriptions of the various posts are as given below. I. Ranch Planning Officer (a) Under the direction of the Project Manager, to assume responsibility for the drawing up of plans for the development of the nine public- ly owned and the 50 private ranches participating in the Project, the NE grazing reserve and the Kukar-Jangarai Pasture Improvement Program. Also for drawing up the procedures to be followed by participants in the smallholders fattening scheme. (b) In the execution of the private sector scheme, to take responsibil- ity for coordination of the work to be carried out and of the staff involved. (c) In the course of the above duties, to train at least two counter- part workers in the preparation of ranch development plans, budgeting, financial analysis and record keeping. (d) The specialist would be expected to undertake such other duties as may from time to time be assigned by the Technical Director. II. Heavy Equipment Specialist (a) Under the direction of the Project Manager, to take responsibility for the Heavy Equipment Unit (HEU). Such responsibility would include the initial ordering of equipment, the establishment of a headquarters and field depots, and the training of professional counterparts, drivers, mechanics and associated personnel. Ongoing responsibilities would include day-to-day organization and coordi- nation of the work of the Section, the deployment of personnel and machinery, and the servicing and maintenance of working units in the field. ANNEX 18 Page 4 (b) In the development of the work program of HEU, the specialist would be expected to keep in close liaison with the Project Manager and the Ranch Planning Officer to ensure an orderly and smooth execu- tion of capital works called for in the overall Project plan of operation. (c) Close contact would also be expected between the specialist and the Land Development Specialist at Mokwa to ensure the application of newer techniques of land development and pasture establishment with a minimum of delay. (d) The specialist would be expected to undertake such other additional duties as the Project Manager may from time to time assign. III. Livestock Production Specialist (a) Under the direction of the Project Manager, to be responsible for the organization of the Research and Training Unit to be es- tablished at Mokwa and Fashola. As the Officer-in-Charge of the overall research and training efforts, the Specialist would be expected to coordinate the activities of the other two specialists and the six counterparts working under him and to design and execute a comprehensive and practical research program aimed at providing technical support for the pasture/animal production approach to be applied under the Project on participating ranches. (b) The specialist with his staff would undertake responsibility for designing the advanced practical training in ranch development and beef cattle management for ranch managers, Government employees and private individuals and ensuring all aspects of its execution. Candidates entering the program would be selected by the specialist and his staff in consultation with the Project Manager. (c) In addition to the above responsibilities, the specialist would be expected to play a major role in ensuring the success of the small holders fattening scheme. The latter will require careful supervision of the purchase, feeding, management and disposal of livestock and is expected to require the full-time services of a Ranch Technical Officer who would be assigned to the scheme to exercise day-to-day control. Overall supervision and coordination of the responsibility for the successful outcome of the undertaking, however, would be assumed by the specialist. (d) To undertake such other duties as may from time to time be assigned by the Project Manager. ANNEX 18 Page 5 IV. Pasture Production Specialist Land Development Specialist (a) Under the direction of the Officer-in-Charge of the Research and Training Unit to be located at Hokwa and Fashola, the specialists would develop research programs in land development techniques, pasture establishment, and pasture and forage production and uti- lization. An important aspect of the work would be cooperative studies on least-cost approaches to land clearing, pasture estab- lishment, supplementary forage production, pasture and forage uti- lization and related aspects of pasture/animal production under tropical conditions. Concurrently, the specialists would be ex- pected to involve themselves in the planning and execution of the training program. (b) Additional responsibilities of the Pasture Production Specialist would include planning and supervision of the work program of the seed multiplication unit which would be established at Bornu ranch, and undertaking which would include species and cultivar adaptabil- ity trials, fertilizer experiments, and studies on the productivity of various tropical grasses and legumes with respect to dry-matter production, seasonal distribution of production, seed set, seed harvesting, yields and such. Cc) In the course of his duties, the Land Development Specialist would be expected to work in close cooperation with the Heavy Equipment Specialist to ensure that proven techniques likely to reduce the costs and increase the effectiveness of the Heavy Equipment Section would be applied in the field with a minimum of delay. (d) Both specialists would be expected to undertake such additional duties as the Officer-in-Charge of Research and Training or the Project Manager might from time to time assign. V. Ranch Technical Officers (a) Under the direction of the Project Manager, or such others as he may designate, to provide technical support and guidance to the managers of the various publicly owned ranches and the owners and managers of the private ranches participating in the Project. Also, to provide similar support and supervision to the small holders in the fattening scheme, to the various units of the group ranching scheme and the Kukar-Jangarai Pasture Improvement Program. (b) It is anticipated that Ranch Technical Officers, as well as par- ticipating in the above roles, would be involved in the detailed planning and siting (in collaboration with the Ranch Planning ANNEX 18 Page 6 Officer and on an individual ranch basis), of houses, barns, yards, dips, fences, roads, firebreaks and such. Also, in the building or erection of such structures they would involve themselves in assisting ranch managers with procurement, organization of labor, supervision, etc. (c) In addition to these regular duties, to undertake such other work as the Project Manager or his designate might assign. NIGERIA ANNEX 19 LIVESTOCKI DEVILONUENT PROJECT NAS Cash Flow from Project (N) -Project Year ------------------------------------------------------------------ 2 3 4 5 6 7 8 9-14 15 16 17 18 CASH INFLOW Loan service receipts NELC 12,457 39,490 70,781 104,447 217,501 217,501 217,501 217,501 - - - WLC 70,404 189,888 298,241 410,868 463,023 897,025 897,025 897,025 NLPC 11,944 31,291 44,539 84,462 84,462 84,462 84,462 84,462 Private farmers/traders 41,310 99,360 241,900 342,200 380,150 752,750 752,750 752,750 752,750 752,750 SmalIholder fatteners 109,600 205,500 410,999 821,997 1,027,916 1,027,916 1,027,916 1,027,916 1,027,916 1,027,916 1,027,916 1,027,916 Sob-Total 245.715 565,529 1.066.460 1,763,974 2,173,052 2,979.654 2,979.654 2.979.654 1,780,666 1,780,666 1,027,916 1,027.916 IBRD Loss: Ranching Compasies 1/ 1,496,917 1,112,511 1,301,560 1,100,605 - - - - - - - Private farmers/traders 2/ 652,365 699,240 984,150 599,250 Smallholder fatteners 3/ 78,660 68,828 147,488 294,975 147,488 Snb-Total 3,227.942 1,880.579 2,433198; 1.994.830 147,488 B _ ____ TOTAL CASH INFLOW 2.473.657 2.446.108 3.499.658 3.758,804 2,320.540 2.979.654 2,979.654 2.979.654 1.780_666 1.780.666 1.027.916 1.027.916 CASH OUTFLOW Loas disbursements NELC 262,255 306,873 351,897 356,853 - - - - - - - - WLC 1,482,194 1,020,635 1,260,476 1,110,620 - - - - - - - - NLPC 251.440 155.840 123.040 - _ - - - _ - - - Sub-Total 1,995,889 1,483,348 1,735,413 1,467,473 Private farmers/traders 869,820 932,320 1,312,200 799,000 Smallbolder fatteners 104,880 196,650 393,300 786,600 983,630 983,630 983,630 983,630 983,630 983,630 983,630 983,630 Total Disb-r.m..nts 2,970,589 2,612,318 3,4-40,913 3,053,073 983,630 983,630 - - - - - - Expenaes 4/ 34,000 36,000 38,000 42,000 44,000 48,000 30,020 39,000 24,000 24,000 20,000 20,000 IBRD Loan Service 5/ 89,670 247,511 403,885 564,401 642,060 962,684 962,684 962,684 962,684 962,684 - - TOTAL CASH OUTFLOW 3,094.259 2.895.829 3.882.798 3,659.474 1,669690 1.994,314 1.976.314 1.976.314 1.9703.14 1.970.314 1.003.630 1.003.630 ANNUAL BALANCE (NO LAGS) (620,602) (449,721) (383,140) 99,330 650,850 985,340 1,003,340 1,003,340: (189,648) (181,648) 24,286 24,286 Lags in Loan Service Receipts 2/ (25,000) (32,000) (50,000) (69,000) (41,000) (81,000) - - - - - (298,000) ANNUIAL BALANCE (WITH LAGS) (645,602) (481,721) (433,140) 30,330 609,850 904,340 1,003,340 1,003,340? (189,648) (189,648) 24,286 322,286 CUM. BALANCE (WITH LAGS) (645,602) (1,127,323) (1,560,463) (1,530,133) (920,283) (15,943) 987,397 7,007,437 6,817,789 6,628,141 6,652,427 6,974,713 1/ 757. of disbrsements. 2/ 75b. of disbursements PY 2 - 6. 3/ 752. of incremental disbursenents PY 2-6. 4/ Based os the following assumptions: - (a) fixed costs - field staff *10,000 p.a.; - head qu-ter staff N423,000 p,a. PY 2-7, and *5,000 p.a. thereafter. (b) variable costs and defaults 0.5% of loan service receipts. 5/ Loan N 8.6 nillion at 7 1/4% for a tern of 16 years, including a grace period of 6 years. 6/ 10% of loan service receipts delayed to following year (i.e. average delay about 5 weelc). Figures rounded tR thousands. Decembre 14, 1973. ANNEX 20 Page 1 NIGERIA LIVESTOCK DEVELOPMENT PROJECT Assumptions Relating to the Economic Rate of Return The computation of the economic rate of return is based on the following assumptions: (a) Except for NELC's Darazo and Bornu ranch development projections, which show the actual expected develop- ment of these two ranches, the projections of the other models represent an average unit of the type to be established under the project. (b) The project cash flow consists of the aggregation of the incremental cash flows of the different project compo- nents phased as follows: ProJect Year (PY) 1 2 3 4 5 6 Total ---- ------- Number ---) NELC Ranches - 2 - - - - 2 WLC Ranches - 5 - - - - 5 NLPC Ranches - 2 - - - - 2 Private Ranches 30 10 10 - - 50 Cattle Fattening Smallholders - 160 140 300 600 300 1500 (c) Except for the Heavy Equipment Unit (HEU) which has an ex- pected project life of 5 years, cash flows have been arbitrarily calculated over 20 years. Except for breeding cattle, whose incremental value has been imputed as a cash inflow in year 20 and for the scrap value of HEU equipment which has been credited to year 6, no residual value has been imputed to project assets. (d) In the case of ongoing ranches making pre-development losses, fixed assets have been valued at nil because they have no actual earning power, nor alternative use. (e) The input and output markets are believed to express satis- factorily the economic value of the goods and services involved in this project; it has not been deemed necessary to apply a shadow price to either labor or foreign exchange. There are no import duties or quantitative restrictions affecting the importation of cattle and therefore the inter- nal price of cattle reflects reasonably well the conditions of supply and demand in Nigeria's cattle market. AN=EI 20 NIGERIA Table 1 LIVESTOCK DEV8LPMEMT PROJECT Sammary Rate of Return Calculation (N) Private Smallholder Heavy PY NELO WLC NLPC Farmer/Traders Fatteners Equipment Unit LPU Total 1 - (1,10U,000) (344,172) (1,444,172) 2 (464,613) (1,964,999) <307,610) (1,256,550) (110,240) 144,360 (293,480) (4,253,132) 3 (464,868) (1,465,115) (138,880) (959,90o) (77,740) 178,010 (293,480) (3,221,973) 4 (289,653) .(1,336,715) (14,140) (1,065,535) (171,600) 147,500 (293,480) (3,023,623) 5 (145,585) (519,430) 114,700 (758,300) (343,200) 20,850 (357,600) (1,988,565) 6 150,615 435,910 114,700 (420,400) (66,300) (13,325) (266,ooo) (64,800) 7 216,430 672,500 114,700 183,700 175,500 550,000 1/ (130,000) 1,782,830 8 263,960 688,600 114,700 422,800 175,500 - (130,000) 1,535,560 9 271,910 765,370 114,700 942,200 175,500 - (149,700) 2,111,980 10 271,910 894,890 114,700 1,039,850 175,500 - (149,700) 2,347,150 11 271.910 1,148,070 114,700 1,048,000 175,500 - (149,700) 2,608,480 12 271,910 1,237,810 114,700 1,048,000 175,500 - (149,700) 2,698,220 13 271,910 1,325,810 114,700 1,048,000 175,500 (149,700) 2,786,220 14 271,910 1,325,810 114,700 1,048,000 175,500 - (149,700) 2,786,220 15 271,910 1,325,810 114,700 1,048,000 175,500 - (149,700) 2,786,220 16 271,910 1,325,810 114,700 1,048,000 175,500 - (149,700) 2,786,220 17 271,910 1,325,810 114,700 1,048,000 175,500 - (149,700) 2,786,220 18 271,910 1,325,810 114,700 1,048,000 175,500 (149,700) 2,786,220 19 271,910 1,325,810 114,700 1,048,000 175,500 (149,700) 2,786,220 20 271,910 1,325,810 114,700 1,048,000 175,500 - (149,700) 10,825,570 2/ 21 1,483,190 2/ 4,726,630 2/ 114,700 4,475,250 2/ 175,500 _ (149,700) Rate of Return 14% 13% 18% 13% 15% - 11.0% 1/ Residual value of equipment. 2/ Includes incremental herd value. December 14, 1973 OF o~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ W~~~~~ 0~~~~~~~~~~~~0~04tO~~m of Biafra~~~~~~~~~~P.ik-IU R