Morocco - Sidi Slimane Agricultural Development Project

Lr -38 RESTRICTED Report No. TO-432b This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION SIDI SLIMANE AGRICULTURAL DEVELOPMENT PROJECT MOROCCO August 17, 1964 Department of Technical Operations FILE CpOPY  CURRENCY EQUIVALENT 1 U. S. Dollar = 5. 06049 Dirhams 1 Dirham = U.S. $0. 197609  N 0 R 0 C C 0 SIDI SLD49fTE AGRICULTtUR.AL DEVELOPMTT PROJECT TABLE OF CONTENTS Page No. SUIIIAY . . *. ..............*. e , , ,- - ,i- I. INTRODUCTIOl 1 II. THE PROJECT AREA . . . . . . . . . . o . . . . . . . . . 2 Land Area and Uses. . . . . . . . . . . . . . a . . a 2 Populatione . . . . . . . . . . . . . . . . o. . . . 2 Climate . . . . a 0 0 4 0 a 0 * a 0 0 0 0 0 0 3 Topography, . a. . . . . . . . . . . . .. . .. .. . 3 Soils and Their Suitability for Cultivation . . . . 3 Quality of Irrigation Wlater Supplies. . . . . . . a . 4 Drainage. . . . . . . o . . . . a . . . . . . . a 4 Floods and Flood Control, .... . e e o o o o a * . 9 5 Land Tenure and Size of Farms o .. . . . . . . . 5 Crops and Crop Returns. . . . . . . t * * * * * ** 7 Livestock . . . . . . . . . . . . . . . . . . . . e a 7 III. THE PROJECT. ..o .a. . . . a . . .e * . . . . . * e. . 7 General . .. . . . . . . . * * . . . . a . . . . 7 Irrigation and Drainage l^Jorks . a e . . . . . . o . * 8 Works Outside Irrigation Perimeter. . . . . . . . . 10 Improvement of Road System. ,. . . . . . . a . . a. 10 Improvement of Peasant Farms, .. .. .. . . . . . . 10 Agricultural Service Centers. . . . . . . . . . . . . 12 Dairy and Stock Breeding Centers. . . . a . . . . . . 13 IV. COST ESTIMATES . . . . . . . . . . . . . , . e * 14 V. FINANCING. . . . . . . . . . . . . . . . a . . a e . . 15 VI. FETANCIAL RESULTS. . . . . . . . . . . . o . . . . . . o 16 VII. ORGANIZATICN AND laNAGEYaTT. . . . . . . . . . . . 18 VIII. ECONOPIIC JUSTIFICATION . . . . . . . , . . ..e * a 20 IX. CONCLUSIOUCS AND RECONME1DATIONS. . . . . . . . . . . . . 21 ANNl'TEXES Annex 1 - Sizes and Types of Moroccan Farms in Project Area Distribution of Alien Holdings by Size, Annex 2 - Area of Crops, Yields, Production, Gross Value and Net Income to Farm Families, Pre-project Conditions, 1062  -2- ANNEXES - (continued) Annex 3 - Major Irrigation Works Annex 4 - Schedule of Road Improvement Work Annex 5 - Costs and Returns for Selected Sizes and Types of Farms Annex 6 - Estimated Costs of Installations and Equipment for Typical Agricultural Service Center Annex 7 - Cost of Livestock and Schedule of Establishment 'for Livestock Centers Annex 8 - Agricultural Processing Plants Table 1 - Provisional Financial Account for Sugar Beet Mill Table 2 - Provisional Financial Account for Meknes Dairy Table 3 - Provisional Financial Account for Cotton Gin Table h - Provisional Financial Account for Citrus Fruit Packing Table 5 - Provisional Financial Account for Fruit Juice Plant Table 6 - Provisional Income Statement for Processing Plants at Full Development Annex 9 - Sidi Slimane Agricultural Development Program - Investment Schedule and Bank Financing Annex 10 - Estimated Cost of Management Staffing Annex 11 - Tist of Goods Annex 12 - Estimated Cash Flow for Agricultural Works and Services, 1962 to 2001 Annex 13 - Estimated Operating Results on Irrigation and Drainage Featuares Annex 14 - Estimated Operating Results for 100-Cow Dairy Stable- Imported Friesian CoWs Annex 15 - Estimated Operating Results for Agricultural Se:rvice Centers Annex 16 - Provisional Cost of Sugar Produced in Sidi Sli mane Project Compared to Import Cost Annex 17 - Estimated Increases over 1962 Base Year in Net Agricultural Incomes, By Years 1963-1972. MJAPS  M 0 R 0 C C 0 SIDI SLI[ANE AGRICULT"J1UAL DEVEICEM T PROJECT SUMMARY i. The Sidi Slimane Agricultural Development Project is a part of the Governznent's program to introduce modern intensive agriculture into ljIorocco. The program's main objectives are to (1) introduce sugar beet cultivation into Morocco, (2) expand nationally deficient meat and milk production, (3) increase the level of inceme of small farms, and (4) to bring about integrated economic development in an area of 100,00C hec- tares as a pilot undertaking in the Rharb Plains of the Sebou River Basin. ii. The project would provide over a six year period (1963-68), (1) irrigation and drainage development, (2) road improvements, (3) agricul- tural service centers for tractor, machinery and supply services, and tech- nical assistance to farmers, (4) dairy demonstration and herd breeding centers, (5) consolidation and modernization of individual farms, and (6) agricultural processing plants. iii. WVater supplies would be increased by raising the El Kansera Dam on the Oued Beth and the capacity of the present canal network would be increased. The net irrigated area would be increased by extension of the canal system and by installation of pumping plants. Drainage works would be undertaken on 3,000 ha within the irrigation perimeter and onl about 50,000 ha in the dry zone. In order to assure the rapid transportation of sugar beets the roads in the project area would be improved and ex- tended. iv. Eleven agricultural service centers distributed throuighout the project area would be the primary means of bringing about peasant farm im- provement. These centers would be equipped to serve their respective areas with heavy tractor and farm machinery work. In addition they would provide advi3ory services, vocational training, fertilizers, seeds and other farm supplies, and they would provide as necessary transport and marketing services. Dairy and stock breeding centers would be established in con- junction with the agricultural service centers. These livestock centers would be the nucleus for the improvement and expansion of milk and meat production. They would provide the stock for on-farm herds, they would be a practical demonstration of improved production techniques and would provide vocational training for farmers prior to undertaking their own livestock enterprises. v. Improvement of land in farms would be carried out on 15,000 ha within the irrigated zone and on about 43,000 ha in the dry zone. Farm  - ii m buildings would be constructed and agricultural equipment would be provided for about 9,000 farm units. Individual small farm dairy barns would be es- tablished on about 850 farms. vi, Processing plants included in the program are a sugar beet refin- ery already completed, a milk plant to be put into operation in 1965, an orange packing plant and a fruit juice plant to be constructed in 1965-66, and a cotton gin to be built in 1965-66. vii. The project would be carried out by the National Office of Irri- gation (OMI), an autonomous public authority which reports directly to the Office of the Prime Minister. ONIts Rharb Perimeter Director would be im- mediately in charge of the program. The agricultural service centers and the livestock centers would be set up as subsections of the Rharb Perimeter division office. Farmerst interest in the operation of the centers would be assured through representation on local boards of directors. viii. The project would benefit a net area of 88,000 ha of which a net area of 29,700 ha would be irrigated and at full development would produce substantial increases in agricultural production, raise the incomes of fana families, and provide considerable new employment in the processing plants and at the agricultural service and livestock centers, ix. The agricultural works and services and processing plants to be established under the project during the 6-ar period 1963-126b are esti- mated to cost a total of DH 152 on US0 million e ualent o which US$12.7 million would be required in foreign exchange. Ihe project would be suitable for a Bank loan of the equivalent of about US$17.5 mil- lion. The borrower would be the Government of Morocco. A term of 25 years with a grace period of 8 years would be appropriate.  M O R o C C O SIDI SLDMANE AGRICULTURAL DEVELORMENT PROJECT I, INTROGWCTION 1, In its agricultural planning the Government is giving priority to the development of the Sidi Slimane area as a trial and demonstration of an integrated approach to the development of farming on a coiimercial scale and the establishment of agricultural processing industries. It is expected that the results will be applicable generally to the Rh.arb Plain of the Sebou River Basin of which the Sidi Slimane area is a part0 2. Basic natural conditions in the area are on the whole favorable for agriculture and in those areas wqhere irrigation is available, very favorable The main limitations are human and institutional, The majority of farmers operate small farms by primitive means. They are impoverished and backward, farming mainly at the subsistence levela A minority, mainly foreigners, operate medium to large units by the most modern means. These farms are mechanized and highly productive, producing mainly fruit for the local and export markets,J 3. The main objectives of the program include, first, the diversi- fication of agriculture, principally to be achieved by the introduction of sugar beet cultivation, expansion of livestock and other crops, such as fodder corn and cotton; second, the expansion of food production, stressing dairy products, livestock, and increased production of cereals; and third, the establishment of processing industries. 4. The development program covers the construction of civil and agri- cultural works, the provision of agricultural services and the establishment of processing plants. Irrigation within the 88,000 hectares of arable land to be covered by the program began in 1935. The current development program began upon the completion of socio-economic and resource surveys and plan- ning studies in 1961. Works for the improvement of roads, drainage and irri-- gation were begun during 1963. Eight agricultural service centers and two livestock (dairying) centers were coming into operation by the end of 1963" A sugar beet refinery was started in 1962 and was sufficiently completed to handle a small initial crop during 1963. At full development (1972) this refinery would produce about 13 percent of the Moroccan sugar requirements; this would be less than the estimated increase in consumption between 1964 and 1970. In all, up to June 30, 1964, some DH 90 million had been expended of t1ie total 1962-1971 estimated cost of the program (DH 262h4 :million, $52m.5 million).  -2 5e The Government submitted to the Bank a general report of its Sidi Slimane program in Mtarch 1962. The information provided was incomplete but a mission visited Morocco in November-December 1962 to review the program and, if possible, to appraise a specific project. It wias found that consid- erably more information would be required for appraisal, This was provided by the Government by July 1963 and a second Bank mission went to Morocco in October 1963 to complete the appraisal, II THE PROJECT AREA land Area and Uses 6. The project area is north and east of the town of Sidi Slimane, which is 100 kilometers east and slightly north of Rabat, the Capital of Morocco (Map l)o Good motor roads and a railway link Sidi Slimane and the project area with the principal cities of Morocco-Casablanca, Rabat, Fez, Meknes and Tangiers. The project area is a part of and forms the southeast portion of the Plain du Rharb, a large alluvial plain of the Sebou River and its lower tributaries. The boundaries of the area., as shownl on the map, enclose an area of approximately 100,000 ha which includes some 88,000 ha of cultivable land. The boundaries on the south, east and north are fairly well fixed by topographical features but the boundary on the northwest where the area extends into the plain is arbitrarily drawn and could be moved to include more land as desirable. 7. Within the project area and forming a part of it is an irrigated zone served by the Oued Beth system. Its gross area is 31,700 ha and a net area of 29,700 ha will be irrigated. Surrounding the irrigated zone, the dry zone is farmed under natural rainfall conditions except for about 3,500 ha in orchards and truck crops which are irrigated by private pumping. The land use pattern is summarized as follows: Non- Net project area agric. Tree crops Available for Gross land or vines cultivation Total - hectares - Irrigation zone 319700 2,000 13,500 16,200 29,700 Dry zone 68,300 10,000 3,500 54,800 58,300 Total 100,000 12,000 17,000 71,000 88,000 Population 8. The rural population of the local districts in the project area was about 97,000 according to the 1960 census. This excludes the popula- tion of the two main towns of Sidi Slimane (11,000) and Sidi Kacem (19,000). Not more than 1,000 or approximately 1 percent of the rural popuilation is of foreign origin. The rate of population increase is estimated at 2.7 percent per year.  -3- Climate 9. The mean annual rainfall reaches 450 mm at Sidi Slimane and 470 mm at Sidi Kacem and up to 590 mm at Mechra Bel Isiri. Rain occurs almost entirely during a period of six months between mid-Octooer and mLid-April and outside this period the precipitation is negligible. The average figures conceal considerable fluctuation between years. Annual records show that in one year out of five only 50 to 70 percent of the rLornal rain- fall can be expected. The growing of spring and summer crops is entirely dependent upon irrigation. Without irrigation, cropping is limited to a short and some-what uncertain winter growing period from November to April. 10. W4inter temperatures are mild. In the coldest months of December and January the daily mean temperature is about 120C (540F), although ex- treme temperatures range from 310C (880F) to -50C (230F). Frost occurs infrequently and is not regarded as a limiting factor on agricultural pro- duction. In the hottest month, July, temperatures may range from a high of 490C (120