Announcement of Two Million Eight Hundred Thousand US Dollars Loan for Livestock Production in the Malagasy Republic on January 29, 1969

'lNTERNATIONAL BANI-< FOR • RECONSTRUCTIO 1i\ND p 18 18 H STREET, N. W., WASH I NG TON D. C. 2 0 4 3 3· TELEPHONE: EXECUTIVE 3-6360 Bank Press Release No. 69/8 Subject: $2.8 million loan for live- January 29, 1969 stock production in the Malagasy Republic cThe Malagasy Republic, with the assistance of a World Bank loan-of $2.8 mil- lion, will begin the organized development of its most important resource -- vast areas of native grassland a~ millions of head of beef cattle. Starting as a pilot project, which will demonstrate the efficacy of modern techniques of cattle production on a commercial scale, it could have a striking impact on Madagascar's future economic and social development as similar cattle ranches are develpped throughout the country. • (/ The loan will be made to the Malagasy Republic for a term of 22 years, inclµding nine years of grace, with interest at 6-1/21. Agriculture, mainly subsistence, is the main economic activity in the Malagasy Republic. The chief exports are coffee, rice, vanilla, sugar, live• stock and livestock products -- the latter, however, accounting for only 10% of the total. The development of a modern beef cattle industry is one of the most promising fields of economic endeavor. Madagascar's grasslands cover nearly two-thirds of the land area; it has a national herd of ·about 10 million head; the climate is relatively favorable-; the water supply adequate; and it is free of major cattle diseases. Few cattle producers, however, are aware of the opportuniti.es for commercial de.velopment and less than 21. of the herd are processed for market. The project being assisted by the Bank loan is the first stage of ·a long-: 4llt term livestock development progr&ll\. It provides for the establishment of six /more  () Bank P.R. llo. 69/8 • Malagasy Republic • Livestock - 2 49-62,000-acre beef cattle ranches, four for combined breeding/fatt~~ing opera- tions ·and the other two for fattening. 1 They will be located in a thinly popu- j ·.· . (, ' lated area w;tti a high pote~tial for cattle production and close to Tananarive, the capital and.largest consuming center. Access. trails to the ranches will be upgraded and the main stock routes will be provided with water points and feed- ing facilities. Ranch development will be cairi.,ci out by Ranch State Fal'III "Qaby", especially established for this purpose. The infrastructure part of the project will be the responsibility of the Ministry of Agriculture, Rural Development and Food. While the ranches will be owned and operated by a Government agency at this stage, they will be developed so as to permit eventual subdivision of five of them intoabout 2,lt71 acres.each for eventual transfer to private ownership by producers trained under the project. The sixth ranch, which will also breed imported B r ~ bulls to improve local stock and grow and distribute legume seed to improve natural grasslands, will be retained by the Govermnent to provide a continuing center for training, demonstration and sale of improved bulls and seeds. · The project will be carried out over a period of six years at a total. cost equivalent to $4.2 million. The Bank loan will finance $2.8 million. • of this total. The Government will financ~ the remaining costs,.:"''"~~i;z-J.·~~e an additional contribution by providing veterinary services and the\i-,nd required. ··· Specialists from the Food and Agriculture Organization (PAO) of the United Nations assi'sted in the preparation and appraisal of the project under the ·1ank./FAO Cooperative Program. - 0 - •