35126 v 3 Social Assessment Report for World Bank Financed China Agricultural Technology Project Heilongjiang Sub-report Contents Chapter1 Project Background ...................................................................................................... 3 1.Agro-tech park ............................................................................................................................ 3 2.Cow industry............................................................................................................................... 3 3.Live pig industry ......................................................................................................................... 4 4.Soybean industry......................................................................................................................... 4 5.Potato industry ............................................................................................................................ 4 6.Protected agriculture ................................................................................................................... 5 Chapter 2. Introduction and Analysis of Established Projects.............................................. 6 Section 1 Stockbreeding Projects ..................................................................................... 6 A.Cow sex control project of Daqing City................................................................................... 6 B. Daqing Yinluo Dairy Industry Integrated Technological Demonstration Project.................... 9 C. Cow Technological Demonstration Project of Fuyu County..................................................11 D. Antibody-free milk project of Hulan County ........................................................................ 14 E. Harbin Sanyuan boar propagation and performance measurement project ........................... 16 F. Cow technological popularization & integrated demonstration project of Shuangcheng City ................................................................................................................................................... 17 G. Cow project of Zhaodong Project.......................................................................................... 20 Section 2 Planting Projects............................................................................................. 22 A. Soybean project of Bin County............................................................................................. 22 B. Soybean active peptide fine processing project..................................................................... 24 C. High-oil soybean technological popularization & integrated demonstration project of Fujin City............................................................................................................................................. 26 D. Soybean project of Hailun City............................................................................................. 29 E. Potato seed project of Nahe City ........................................................................................... 32 F. Protected agriculture project of Daqing City ......................................................................... 34 G. Harbin Dongjin red grape production project........................................................................ 36 Section 3 Protected Agriculture...................................................................................... 38 A. Harbin new energy integrated utilization and green product development project:.............. 38 B. Vegetable seedling breeding & technological popularization project of Hailin City ............ 42 Chapter 3 Exploration into Company + Farmer Pattern ................................................... 45 I. How can "company + farmer" avoid and cope with market and technical risks in agricultural industries with different distinctions............................................................................................ 45 1. Source of seed and breeding .................................................................................................. 45 2. Planting and stockbreeding .................................................................................................... 46 1 3. Primary products and high-end products ............................................................................... 46 4. Conventional agriculture and protected agriculture............................................................... 46 5. Division of labor and collaboration in industrial chain.......................................................... 47 II. Discussion of other organizations involved in company + farmer .......................................... 47 1. Government's functions:........................................................................................................ 47 2. Major families:....................................................................................................................... 48 3. Association............................................................................................................................. 48 Chapter 4 Attitudes of Provincial Project Officials towards Project................................. 49 Chapter 5 Attitudes of SA Team towards Project................................................................ 49 2 Chapter1 Project Background The Heilongjiang Provincial Agricultural Development Office has included the agro-tech park, cow, live pig, soybean, potato, ecological industries as the focus of support under the World Bank Financed Heilongjiang Agro-tech Development Project according to the actual situation of the province and the "10th 5-year Plan" for agricultural development. The selected projects cover key problems in advantaged agricultural industries and ecological environment building of the province. By combining technological development with demonstration, popularization, combining project construction with industrialized operation, this project is aimed to improve the technological level of agricultural production in Heilongjiang and the market competitive power of farm products, giving play to the demonstrative role of hi-tech. Faced with the new situation of China's entry into the WTO, Heilongjiang will develop its advantaged industries, solve key technical problems in production, supply and marketing links, further strengthen the agro-tech advance and improve the market competitive power of farm products by virtue of the World Bank's loan. 1.Agro-tech park Aiming at the situation of low agro-tech level, slow popularization of technical achievements and inability of hi-tech to be popularized in time in Heilongjiang, the integrated agricultural modernization project will be executed in the Harbin Agro-tech Park to demonstrate farming and stockbreeding hi-tech, incubate hi-tech and potential technical achievements in the field of agriculture; allocate techniques, funds and policies with focus on leading enterprises, give full play to their driving action; conduct the agricultural structure optimization and industrial upgrading through an efficient organizing and operating mechanism in adaptation to the trend of globalization in economic development and market competition, practically increase the overall quality and benefit of agriculture; through the park's training and education function, train agro-technicians and improve the technological level of farmers, in order to fulfill the objective of efficient, sustainable agriculture, increase income and competence of farmers. 2.Cow industry One is to set up quality cow embryo production bases, which will help realize the grand goal that the stockbreeding of Heilongjiang takes up 50% in agriculture and the revitalization plan of the dairy industry, drive the provincial cow industry's development with this demonstration zone, convert local resource advantages into economic and market advantages, promote the development of the dairy product processing industry, arrange rural surplus labor, increase the income of farmers, pull the local economic growth. Another is to employ high biotechnologies, such as semen sorting, sex control, to develop the artificial cow sex control technique, doubly improve the cow production efficiency, accelerate the popularization of fine cow breeds and improve the fine breed ratio, raise the technological level of stockbreeding, enhance the international competitive power of stockbreeding of the province, improve the economic, social benefits of stockbreeding, speed up the development of stockbreeding. 3 Thirdly, improve the milk output and the forage grass utilization ratio, provide new ideas for the planting restructuring. 3.Live pig industry Boar individual performance measurement is an important mark of normalized development of the live pig industry. However, by now, there are 4 measuring stations nationwide only with a measuring capacity of less than 10,000 heads. The live pig industry is an important industry in Heilongjiang, but there is not a boar individual performance measuring station yet. To change the current situation of long-standing insufficiency of fine boars in the province, promote the breed selection progress of boars and establish and perfect the 3-level fine boar breeding system, it is very necessary to establish systematic and standard boar performance measuring stations. The artificial fertilization technique is a high-grade, simple boar improvement technique. The popularization of the pig artificial fertilization technique is an effective approach to increased economic benefit from pig raising and sustained growth of the pig raising industry. 4.Soybean industry Heilongjiang is a major producing area, production and export base of soybean in China, also an important supplying province of commodity soybean. The seeded area and output account for 1/3 of the nationwide total, the trading volume accounts for 80% of the nationwide total. At present, the key problems in Heilongjiang's soybean production are low oil content, low output, high cost, low comparative benefit and weak market competitive power of soybean commodities. The causes of the above problems are the unsound production system of special soybean varieties; low mechanization level and operational standardization level; imperfect capital construction of farmland, weak resistance to disasters; slow hi-tech popularization; there are many enterprises developing further processed products but few leading enterprises with competitive power. It is the strategic choice to expand the cultivation of high-oil, high-protein soybean varieties, demonstrate and popularize efficient production technique, develop high-purity active peptide facing the challenge of entry into WTO, which will greatly enhance the market competitive power of high-oil soybean of China, satisfy the demand for quality soybean in the industrial and international market; it is very significant for the development of Heilongjiang's soybean industry to develop high-purity active peptide to produce agriculture with industry, convert the resource advantage further into the new product advantage, make rational use of soybean resources. 5.Potato industry It is imperative to expand the production of potato seed and popularization of special varieties. This is because: 1) with the planting restructuring, the potato area is increasing, in an urgent need fro high-quality potato seed in sufficient quantity; 2) the formation of the agricultural industrialization and the development of the local industry require special varieties, starch processing enterprises are in urgent need for high-starch potato raw materials (with 2-5% higher starch content), which will apparently drive up enterprises' benefits; 3) the 4 present potato market is highly competitive and potato seed market is disordered, calling for high quality, high-standard potato seed that is adapted to the market need; 4) after China's entry into the WTO, foreign enterprises have aimed at the Chinese potato market and some potato seeds have swarmed in. Accordingly, we must accelerate our development and take an active part in international competitions. 6.Protected agriculture Heilongjiang is now turning from a major resource province to an economic strong province. In order to promote the agricultural economy's restructuring and greatly develop the protected agriculture, produce anti-season farm products, change the present situation of few choices of farm products in winter in Heilongjiang, it is necessary to introduce more varieties to satisfy the market demand for diversified consumption of farm products. The execution of the project and the expansion of the space of agricultural production have not only provided quality seedlings to the regional, professional and large-scale production of distinctive farm products, but also provided mature techniques and modes of production for the agricultural restructuring of Heilongjiang. The universities and scientific research institutes on which the project is backed boast a full range of disciplines, strong teaching and research forces, including a multidisciplinary vital teaching and research echelon consisting of senior professors, researchers, young doctors and masters to cover planting, deep soybean processing, breeding, dairy industry, agroengineering, management and finance. This team has always been active on the forefront of agricultural production of Heilongjiang, undertaken a number of state-level, province-level and ministry- level tasks and projects from the "6th 5-year Plan" through the "9th 5-year Plan", and has won technological prizes for many times, provided with the research experience and capability for major technological projects. 5 Chapter 2. Introduction and Analysis of Established Projects The SA Team classified the projects in Heilongjiang into 3 classes by stockbreeding, planting and protected agriculture, and has assessed and analyzed every project Section 1 Stockbreeding Projects A.Cow sex control project of Daqing City 1. Project introduction The undertaker of this project is Daqing Tianfeng Bioengineering Co., Ltd., a limited liability company contributed by natural person, founded in Oct 2001 with a registered capital of 5 million yuan. Its business scope is R&D of applied technology of bioengineering. The project is constructing a "quality cow sex control breeding base", now with a 2300m2 sex control embryo production and R&D building and 5000m2 cowshed available for use. (1) A quality cow sex control breeding center will be built, with a building area of 2300m2. When the project is commissioned up to the standard, it will have an annual capacity of 10000 doses of sex controlled cow frozen semen carrying X-chromosome and 10000 sex controlled cow embryos, cultivate 3000 cows of high-productivity core population and an average annual milk output of above 8000kg. (2) A fine cow breed registration system and high-productivity breeding technique system will be established. (3) Within 4 years, 10000 sex controlled cow embryos will be transplanted in Heilongjiang to obtain 4500 quality cows, at an average unit output of 8000kg. (4) Accelerate the fine cow breed selection and quick breeding to generally complete the milk industry technical innovation system and industrialized mode of production in Heilongjiang. 2. Participation mode of farmers The project will be run in the operational management mode of scientific research--investor --farmer, taking product, fund and technique as the tie to give rise to the complementation of advantages. The company will give technical training to farmers on hybridization, quarantine, treatment and technical inquiry. As for cow breeding, all cows will be transplanted with the sex control embryo. By employing modern quarantine and integrated supporting technique, the overall death rate within the affected area will be controlled below 1%. Manner of unification: the company will invest 7.5 million yuan to purchase 1500 cow calves. On a voluntary basis, such calves will be presented free of charge to farmers for raising. Both parties will enter into a contract. When the calves is 16-20 months old, the company will grant embryo transplantation for sex controlled cow free of charge. The calves born after embryo reception will be recovered by the company, 2 chances of ovum collection will be provided to the company in 4 years, when the company will pay farmers an ovum collection fee of 1500 yuan each time. Afterwards, the income from born calves will be owned by farmers. 6 Steps of execution: a farmer applies for calf adoption voluntarily and offers a guarantor; the company examines the raising conditions of farmers and the guarantor's qualification, if the conditions are met, both parties will enter into the "Farmer Free Calf Adoption Contract", the farmer will draw the calf within half a month after the contract comes into effect. For the poor who want to become rich by raising cow but do not have the required conditions, the company will take the following support measures: (1) the company will provide funds or material aids to the poor directly to help them attain the required conditions, when the poor have income afterwards, the company's funds (including the equivalent of materials) will be recovered in installments without interest. (2) The company acts as a guarantor for the farmer to borrow a sum from the bank to invest in raising facilities. (3) For extremely poor farmers, the company will grant financial aids without compensation to help the adopter become rich. The sex controlled cow embryo produced by the company will be priced with reference to the interest of farmers. Each embryo will be sold to farmers at a price of about 300 yuan lower. Meanwhile, for any farmer purchasing the company's product, the company will provide inquiry on cow raising and epidemic prevention knowledge obligatorily. 3. Survey of affected area (1) General situation of affected area Tiedong Village is situated in Longfeng District, Daqing City, including 3 natural villages (i.e., villager teams). There are 877 families and 2673 people here, 157 families have land, 7- 11mu/ person on average. The remaining families without land consist mostly of migrants. In 1984, when field was allocated to each family, township enterprises developed quite well, so some villagers served as employees. Now the enterprises have closed down and the employees have become farmers without land. The key sources of income of the villagers include working outside, cow raising and planting vegetables. There are 60-70 poor families with annual income of about 1000 yuan, few people are rich, who live mainly on cow raising. Generally, a family's annual income is 5000-6000 yuan. Since there is too little tilled land available, most villagers live on working outside. There is a very long history of cow raising here since 1964. Several years ago, the milk price was very low and the delay in payment was serious. The cows were bartered away then. Now an adult cow costs 10000-12000 yuan and produces milk at 18 months, a milk-producing cow costs about 20,000 yuan. (2) Farmers' attitudes towards project Farmers are very active for the project. 6 families at the village have entered into agreement with Fengtian for cow adoption. The criteria for selecting such farmers include the mastery of breeding techniques, preference for poor families and women. A typical cow produces 4t milk a year, a Fengtian cow can produce 8t. The purchase price is 0.78 yuan/catty. The milk output of a high-productivity cow is equivalent to the total of 2-4 low-productivity cows. Provided the total milk output is certain, the replacement of low-productivity cows with high-productivity ones can reduce the number of cows raised, raising costs and labor input 7 and increase the income of milk raisers. The project will help resettle unemployed workers at surrounding areas and rural surplus labor. If farmers can learn how to raise a cow through the demonstration of this project, a farmer can increase his income by 3000-5000 yuan for every cow raised. (3) Case analysis Presently, farmers whether directly dealing with calf breeding, cattle raising, milk production or forage planting, are effectively connected to a perfect industrial chain in the project design of Tianfeng to exert their own advantages in economic base and human resources, driving the efficient operation of the chain. Case 1: Sun Cuiying, female, 33 years, villager of Tiedong Village, in a 3-member family. Her family has 3 heads of cattle. According to her, her village has raised cattle since 1960s. Since the rise in the fresh milk price, the cattle raising reached a new peak. In June this year, she has entered into an agreement for free calf adoption with Tianfeng Company for a term of 4 years. According to the contract, Tianfeng Company shall purchase quality calves and provide her family with cow raising technical services obligatorily, when the calves raised can meet the conditions of embryo transplantation, a sex control embryo transplantation shall be conducted in time. Her family needs to provide 2 ovum collection opportunities to the company at an interval of less than 1 year and may not sell the adopted cattle to anyone else. Case 2: Wang Jirui, male, 33 years, in a 3-member family, with 5mu land at home, which is just enough for grain ration. Their income relies on stockbreeding only, formerly raising pigs and now raising cattle. There is an adult cow, a calf (3 months) and 50 pigs at home, earning a net income of 7000-8000 yuan a year. The annual average expenditure is 3000-4000 yuan, for food and the child's education respectively. The annual average net average is 4000 yuan or so. His family has raised cow since 2002, a cow eats 8 catty bean cake, 4 catty wheat bran, 12 catty corn flour and 6 catty fine fodder, of which bean cake 0.8/catty, wheat bran 0.4/catty, corn flour 0.5/catty and fine fodder 68 yuan40km. His cows produce milk 80-90 catty daily and 4t annually. A dairy would come to purchase fresh milk every day at 0.78 yuan/catty. He hopes to adopt several calves to enlarge the scale of stockbreeding. Case 3: villager Zhang Songyan of Tiedong Village, Longfeng District, Daqing, 39 years, his wife 37 years and child 14 years, at grade 1 of junior high school. His family has no land, the husband cannot labor all the year round, the wife do some odd jobs, such as tree planting and building to make a living at the pay of 20 yuan/day. She wants to adopt a Tianfeng calf to earn more and has entered into contract. 4. Comments of SA Team The SA Team thinks: firstly, this project is adapted to the major trend of the cow industry and has promoted the cow breed improvement, farmers have got their own cows at low inputs. Secondly, this project has given special concern for poor people and women groups, designed specially preferential conditions for them in order to support disadvantaged groups. This has also provided a solution to the employment problem of local surplus labor. 8 Thirdly, since this project belongs to hi-tech, the direct technical risks it faces include whether the technique is mature and once a more advanced emerges, it might be impacted; the market risk also includes it is directly affected by the development of the cow industry. The effective avoidance method must be improving its own technique and reducing the production costs in adaptation to the challenge of technical innovation and market fluctuations. Fourthly, in the "company + farmer" pattern of this project, farmers undertake a greater part of cow cultivation work, the cow growth determines the embryo quality directly, it is also a part of the company's means of production, once farmers' cows are poorly raised or dead, the company will suffer great losses, which will also be a great impact on farmers. It is proposed to clearly define responsibilities in the contract to ensure both parties' interests; the company must conduct meticulous guidance to farmers, because the cow quality is the vital source of the enterprise. B. Daqing Yinluo Dairy Industry Integrated Technological Demonstration Project 1. Project introduction The undertaker of this project is Daqing Yinluo Dairy Industry Group, founded in Aug 2000, being a large nongovernmental backbone business that integrates pasture land construction, cow breeding, beef cattle breeding, forage production and dairy products processing, with a total assets value of 680 million yuan, under which there are pasture company, agriculture company, breeding company and many other enterprises, with 300,000mu natural and sown pastures, 100,000mu tilled land and 10800 cows. This project's construction covers: (1) establish a cow embryo transplantation center with an annual capacity of 20,000 embryos: organize a core population of 1000 high-output cows (introducing 400 cows with annual capacity of over 10t); (2) set up a nationwide cow trading market and a network system, a cattle trading plaza, a cattle trading hall and a cattle trading network maintenance center. Establish the largest cow, beef cattle and yellow cattle trading market in Northeast China with a daily turnover of 1000 heads; (3) establish a forage supply system. Set up a 3,000mu fine alfalfa production base, a 30,000mu silage base and 150,000m3 silo bins; (4) cow epidemic prevention center and 12 integrated cow service stations. Set up an epidemic prevention center and 12 integrated cow service stations. (5) Training center. Set up a cow production techniques training center to train above 10,000 men-times a year. 2. Mode of cooperation with farmers (1) Embryo transplantation Yinluo Company will found an embryo transplantation center. It shall set up a core population with 1000 high-output cows to produce embryo, the company shall contribute 30000 embryos for transplantation into 3000 heads of cattle of farmers. The company shall recover the costs 9 only, farmers' embryo transplantation charges will be returned to the company from the cow payment. (2) Calf feeding When a calf is raised to 6 months, it will be raised by farmers. When it grows up, the milk must be sold to Yinluo Company at a price 0.05 yuan/catty higher than the market price. This applies mainly to farmers who are short of fund but can raise cattle. Technical guidance and training will be given to farmers to make them rich by raising cattle, the enterprise will make a profit through milk processing. (3) Silage plantation Sign a silage corn and pasture planting contract in the form of order agriculture. (4) Form of training In order that cattle raisers can raise cows well, the company has set up a training center for technical training to farmers and may arrange them to practice at its own cattle ranch. It has also set up a disease control center and 12 integrated cow service stations for cow healthcare. 3. Survey of affected area (1) General situation of affected area The project location is Team 4 of the Daqing Development Zone Farm. Before 2001, it cost 1050 yuan to rent 1ha land, now it costs above 300 yuan; cows are run by 1050 families and 3700 people, there is 750ha tilled land. There are 4 natural teams, with totally 500 employees, the others are migrants moving here successively after the Reform and Opening. 300 families of the whole team raise cows. After Yinluo was settled there, 400 people worked at Yinluo, earning about 500 yuan a month, which is sufficient for the basic livelihood. (2) Case interview Case 1: Zhang Xingqi, male, began to plant silage since 2002 and has entered into contract with Yinluo to plant 10ha land, the company purchases silage at the price of 150 yuan/t. The company offers seed and fertilizer, and reaper for full-mechanized gratuitous reaping. The net average income may attain 3000 yuan/ha. At that time, a friend of his was working at Yinluo and told him this message, he thereupon began to rent land for planting. Now many people want to deal with planting but no more land is available for renting. Case 2: Li Wenxiang, female, ready to adopt calf. She has raised cows for 4 years, formerly ordinary cattle. In June 2003, she entered into contract with Yinluo, ready to adopt high-yield cattle. When raising female calves to 6 months resulting from embryo transplantation, Yinluo Company have them fostered at farmers' family at the price of 6000 yuan (market price 7000 yuan). The calves may not be sold. When the cows have bred and born calves, the money will be repaid by selling milk to Yinluo Company at a price 0.05 yuan/catty higher than the market price. Meanwhile, the company shall provide technical guidance and training. Li thinks that the benefits of this practice include: when the cattle fall sick, they may contact the company's technician by telephone and no cash is needed for the medical treatment for cattle. 10 Through the investigation on the affected area, we can see that a mature professional group of cattle raisers has formed there over historical evolution. Relative to other farmers with tilled land, they have the technical expertise on cattle raising but might be short of fund. The design of the alliance between the company and farmers has fully considered this difficulty and has taken on the mode of cattle compensation with milk. For farmers with planting experiences, their expertise can be exerted to develop forage grass; for less experienced farmers who want to raise cattle, a chance is provided to them for learning and practice. 4. Comments of SA Team Firstly, from the perspective of fund and technical expertise, this project has paid attention to the stratified cooperation with farmers of different production capabilities for a wide range of participation. Secondly, the cow raising industry is closely related to the planting industry, forage grass industry, forage processing industry and dairy products processing. The company's role in the whole industrial chain is to unite all production links organically. A coordinated composition of the industrial chain may abate the impact from market fluctuations through the interaction and complementation of different links in risk resistance. Thirdly, the key to handing calves to farmers for raising is whether they can well raise calves. It would take time for farmers to receive hi-tech, their mastery of techniques is undoubtedly proportional to the patience and effort paid by the enterprise, although farmer training cannot bring any direct benefit to the enterprise, however, from the long-run development of the cow industry chain, farmers' enthusiasm is the source to keep the whole chain vigorous. Fourthly, to avoid risks due to changes and guarantee both parties' interests, it is suggested to cover insurance upon execution of the contract. Fifthly, the government's new policies on cattle raisers: guarantee the land use for forage and silage, grant loan for purchase of forage machinery and milking equipment, which has greatly promoted the participation of farmers. C. Cow Technological Demonstration Project of Fuyu County 1. Project introduction The undertaker of this project is Heilongjiang Guangming Songhe Dairy Products Limited, an enterprise held by Shanghai Guangming Dairy Industry Inc. This company now holds total assets of 350 million yuan and made a net profit of 8.1 million yuan in 2002. This company has independent import-export operations right. The technical support units are Heilongjiang Livestock Research Institute and Heilongjiang Veterinary Scientific Research Institute. Coverage and scale of demonstration: Set up a perfect county-level livestock veterinary technical service center; 2 township-level livestock veterinary integrated service stations; 8 village-level livestock veterinary integrated 11 service offices; gradually perfect the livestock veterinary technical service system at county, township and village levels, providing the technical guarantee of advanced science to all cow raisers in the affected area and the county. 2. Mode of cooperation with farmers This project will guide farmers in regard of fine variety cultivation, disease control; planting of fine pasture, popularization of silage technique; perfection of informatization service system and production management system, setup of cow breeding and production files. Through the demonstration and popularization of advanced practical cow development techniques, it aims to gradually improve the technological sense of cow raiser; by setting up a socialized service system and epidemic disease monitoring system, it aims to improve the raw milk quality; the intensive cow breeding will save resources and costs, and promote the sustainable growth of ecological cows. 3. Survey of affected area (1) Basic information The affected area is located at Dengke Village under Dawoer, Manchu, Khalkhas Township in Fuyu County, with 334 families and 1134 people, divided into 3 hamlets. There is a minority population of 796 people, accounting for 74%, including 763 Dawoer people, 5 Ewenk people, 10 Khalkhas people, 5 Manchu people and 13 Mongolians. This village has been preliminarily turned into a standard small zone with a standard cowshed area of 2400m2, a typical raiser raises 20 cows. Now villages with certain savings have built a 2400m2 standard courtyard with the cowshed integrated with the house. For technical service on stockbreeding, a natural village is provided with an integrated service station, where the stockbreeding service personnel are generally trained from stockbreeding schools, having high technical and medical competencies. They serve in the form of part-time or individual under the control of the township or village. The business and investment introduction work led by the county government commenced in 2002. The county's preferential policy to set up a 500t silo pit and cowshed for every family with external funds, to which the finance will contribute a revolving fund of 100,000 yuan. Our village offers the land for cowshed construction and 2mu forage land gratuitously, also exempt cattle raisers from the grassland management fee for 6 years (20 yuan/year per head of cattle). They sell milk to Guangming Dairy Industry. Since the villagers have never gone out of the village, the introduction of large-scale standard major cow raisers is convenient for villagers' study of advanced experience and can promote the local stockbreeding development. Farmers and the village will benefit in the long run despite of their temporary resources loss. Since June 2002, external cow raisers began to settle here, all with their own technicians. (2) Villagers' intent The villagers think that the advantages of developing stockbreeding science parks include: 1) being close to the Nenjiang River, with large-area pastures and abundant water resources; 2) 12 the county Party committee, county stockbreeding bureau and development office have made great investments in infrastructure, now there are 156 silage pits and 45 silage trenches at the village; and 3) there is a county demonstration zone and 3 business introduction projects at the village, with modern cultivation techniques and management experiences. (3) Case interview Case 1: Tao Guiying, female, Mongolian, living at a 5-member poor family in Dengke Village, with 3 children. She began to develop cattle raising this year. Since the family is poor, with the guarantee of the villager committee, she borrowed 12000 yuan from the credit cooperative and bought a cow. The loan will be repaid by deducting 40% from the monthly milk profit until the loan is paid off. She recognizes this practice, saying that it is impossible for her poor family to buy any cattle. Buying cattle on loan will at least relieve her family from paying any cash now. Through breeding, there are 3 cows at home, producing about 45 milk a year, sold at 1500 yuan/ton. Except raising cows, her family has also planted 20mu corn to provide cows with forage. She thinks the greatest risk of cattle raising is heavy investment. Now the villager committee has helped her solved the problem in buying cattle, so her greatest worry that the cattle die of disease. If this comes true, she would suffer from a total loss. Her greatest expectation is to improve the milk output. She says the local cow technical service and medical service is very complete. There is an integrated cow service station, a breeding station, 3 veterinaries and 3 breeding worker at the village. The cow medical expense is not high, only the medicine cost is charged. Case 2: He Lianzuo, Dawoer nationality, 28 years, living at a 5-member family. His house is 4 miles from the villager committee, with 9 cows (4 ones producing milk now). His household annual income is about 10,000 yuan, mainly used to build house. He prepares to build a yard in mid Jul 2003 and has purchased 60,000 pieces of brick. In the family, whoever has leisure time would take care of the cows. There is 3ha land, used to plant corn and silage. At ordinary times, 1mu land can yield 4t silage. 4. Comments of SA Team The SA Team has learnt the effort of the local government to increase farmers' income by developing the cow industry, such as cattle purchase on loan and forage subsidy. However, farmers remain weak in technique, information and affordability of risks, which surely calls for effective channels of technical popularization. For the introduction of major raisers, the villages felt that these newcomers occupied their local resources at the beginning. However, these major raisers have brought tangible mature techniques and optimum management, and have helped people built up the confidence for cow raising. It can be said that this pattern of driving farmers with major raisers is actually a variant of the company + farmer pattern in adaptation to the local conditions, major raisers are actually directly introduced private tutors for cattle raising, whom people are learning from and competing with. 13 D. Antibody-free milk project of Hulan County 1. Project introduction The project undertaker is Heilongjiang Rutai Bioengineering Limited, founded in 2000, with a registered capital of: 12 million yuan. The project coverage is: to set up 4 modern milking workshops with 500 cows available for milking, a technical training center for antibody-free milk and an antibody-free milk test center. 2. Mode of cooperation with farmers The company helps contact cow purchasers and provides technical services. The company and farmers have entered into a supply and marketing contract, farmers shall raise cows as required by the company and deliver quality fresh milk to the company, the company shall purchase milk at a price higher than the market price. 3. Survey of affected area (1) General situation of affected village Qingnian Village is located northwest of Leye Town on the west bank of the Hulan River, 4km from the Ha-Hei Highway and connected with it with a sandy rural road. Most villagers are farmers of Shandong origin. There are 440 families, 1983 people, 14000mu arable land, a woodland area of 3000mu and a grassland area of 150mu. The land is mostly low-lying saline alkaline soil unsuitable for cash crops. In recent years, the village has been developed on cow raising. There are 1780 heads of cattle, including 1223 breeding cows, 168 heads of Qingnian cattle, 210 heads of bred cattle and 179 calves. There are 216 heads of cattle suffering from obstetrical disease and 243 heads of cattle suffering from mastosis. Among the 636 women, 301 people are raising cattle, on average a woman raises 5 heads of cattle. The total current value of cows is 22.415 million yuan, the milk income in 2001 was 5.13 million yuan, that in 2002 was 6.22 million yuan, that in 2003 is estimated to be 9.6 million yuan. In 2001, a mechanized milking station was set up with 500 cows available for milking with external investment; in 2002, a milking station of the same scale was built with self-financed fund. The villagers think that with the cow industry's development, some cows should still be subject to artificial milking whose labor intensity is great. They expect to obtain systematic services by setting up a station under the project to abate the labor intensity. (2) Case interview: Case: Luo Qiaoyun, living at a 4-member family. The household income relies mainly on cow raising. There has been a cow raising history of 10 years. In the past, artificial milking was used, which was laborsome. There are now 4-5 cows now, yielding milk worth above 20,000 yuan a year. She participated in the project since last spring, featuring high profitability, high technique, high milk quality and high milk output (3.5-3.6% fat content). There are 3 milk stations at the 14 village. Labor intensity of artificial milking: 1) drinking water for cows, 6 buckets/cow a day, to be heated by firewood; 2) collecting excrement 3 times a day; 3) feeding cows and processing grass; 4) milking, 4 times a day, the most tiring labor. Labor intensity sequencing from high to low: milking, heating water for cow drinking, cow feeding, excrement collection. These are mainly done by women. Labor intensity sequencing provided with a milking station: milking, heating water, feeding water to cattle. These activities are repeated 3 times a day. In addition, she has to take care of the land at home. The milking station has undertaken the most tiring job--milking--in cattle raising. However, heating water to feed cattle will still take a long time with a high intensity. Rutai can relieve the labor intensity of cattle raisers, especially women by providing forage in place of farmers' fodder cutting and heating water with solar energy. Each family needs to invest about 350 yuan, the company shall provide a subsidy of 50 yuan for breeding. There is a special veterinary service center for gratuitous service. Luo has just built a cowshed last year to accommodate 40-50 cows. Now it would take money to see a village veterinary, once a head of cattle falls sick, it would cost 2000-3000 yuan, farmers are very worried about this. (3) Basic analysis Through the interview with farmers, especially through the contrast of labor intensity before and after the introduction of the antibody-free milk project, the driving effect of industrialized production on cattle raisers is visible. Meanwhile, the quality requirements of antibody-free milk have guaranteed the standard management in production links. The risk of cow disease is the greatest threat to farmers, for which there must be a technical guarantee. 4. Comments of SA Team Firstly, the company has developed high-end products in the cow industry chain and realized the added value of primary products using local resources and its own technological strength. It is the leading force to drive the overall upgrading of the industrial chain. Secondly, restricted by the traditional operating pattern, it will take time for farmers to accept new techniques and new modes. The company has to engage itself in lasting technical support to farmers and apply a stricter management standard that clearly defines responsibilities in production links. Thirdly, hi-tech products, with a high added value, can easily avoid risks from fluctuations in the raw materials market. In case of a milk price fall, the company is expected to consider the interests of milk producers and apply a protective purchasing price. On the other hand, it shall actively develop the market, improve the manufacturing technology and open a new path of development for the dairy industry. 15 E. Harbin Sanyuan boar propagation and performance measurement project 1. Project introduction The undertaker of this project is Harbin Sanyuan Animal Products Industrial Limited, founded in 1955, being a large state-level boar breeding base that integrates planting, raising and processing, gathering above 20 professionals in stockbreeding, epidemic control and forage nutrition, and a technical management team consisting of experienced stockbreeding experts and animal science doctors. The project covers: boar performance measurement station, boar measuring shed, pork quality test room and supporting equipment, etc. 2. Mode of cooperation with farmers 300,000 shares of fine boar semen can be popularized to farmers annually and 120,000 sows improved. The company has held above 100 training courses in the organizational form of the pig raising federation +technical service agency +pig raising farmers, covering some nearby provinces. Federation mechanism: 12 base-demonstration families, covering 4000 families, purchasing piglet at the protective price, standardizing the pigsty, forage, waste treatment and epidemic prevention. 3. Survey of affected area (1) Affected farmers' perception of project The World Bank project not benefits typical families only, it can radiate the whole province and improve the level in forage, live pig recovery, disease control and vaccine supply. The artificial breeding technique should be greatly meetings. The small base of pig raising shall drive the live pig recovery, breeding, forage supply and disease prevention of 10,000 families. The company shall provide fund support to set up grassroots artificial breeding stations. Risk: 1) as for disease, if there is no regular disinfecting facility (twice a month) is available for effective vaccine epidemic prevention (specified vaccine), the pig raising can hardly make any effect; 2) as for variety, only high quality commodities can occupy the market; 3) as for technical training, basic professional skills shall be learnt; 4) as for market, there should be a recovery mechanism, because the market can hardly be controlled. (2) Case interview Case 1: Zhang Fuzhi, 59 years, at Dongqiao Village in Tangyuan Town, Tangyuan County. He began to raise boar in 1973 and has used many boar breeds, but the competition is fierce. In 1994, with a friend's introduction, I introduced boars from Sanyuan for diversified hybrid. A boar can be used for one year only. To avoid inbreeding, a new breed in introduced every one year. Now there are 8 boars at home. A pig of 500-600 catty is sold at1200-1300 yuan, sometimes 1500 yuan. His boars cover 500-600 sows, the breeding charge is 50 yuan/head. The effect of artificial fertilization is better than natural mating. Now I would bring the semen back from the company at a time, which can be kept for 14 days. My family raises 8 cows and 16 earns a lot. The gross income (excluding forage cost) on the boars and sows is 30,000-40,000 yuan. Pig raising families have 3 requirements, one is artificial fertilization is very good in its high productivity and health, but it is too effort consuming. By now, I have come to Sanyuan 3 times, having spending a lot of money and time on the way. I hope that the breeding station for artificial fertilization can be moved near us, so that we can get high-grade Sanyuan boars. The other is, farmers have undergone several fluctuation these years in pig raising, farmers have enough grain at hand but the pig raising benefit is poor. We expected there is a place to teach us scientific management skills and offer us genuine forage and drugs. The other is that the price hog is too low, ranging from 1.2 yuan/catty to 2.8 yuan. They have the urgent need for a unit that can organize this and provide good services. A leading enterprise should be responsible for the boar forage price and recovery, the expected profit on a hog is 80-90 yuan. In my personal opinion, Sanyuan can undertake the project and is really doing something for farmers. Last time, I met with a customer from Zhaodong wanting to buy 500 pigs, Manager Lee said that its experience is not sufficient and persuaded it to raise 200 heads temporarily, the number will be increased gradually in the future with its experience. 4. Comments of SA Team A feature of the interview of this project is that the interviewees come from greatly varying places. As demonstration families (major families) of the company, they have already brought the company's service to a long distance. As members of the pig raising federation, they have gradually participated in the work of driving the local pig raising industry. The company has conformed to the major market trend and set its hand from the most urgent issues of farmers. With its solid technical strength, it has provided find breed products at low prices. Meanwhile, the company has not fixed its eyesight on the profit only but has based itself on the industry's development to gradually build up an independent, efficient and open industrial federation. It has actually linked its own interests with farmers' proceeds and the industry's development. For the company, there have been virtually many more helpers; for farmers, they can participate in the construction of this flourishing industry in an interactive manner. In interview, farmers have raised many suggestions on the company's business development. It can be seen that these are deliberate, urgent and practical problems. The integration of the industrial chain is believed to be pushed along in a planned way by the company. F. Cow technological popularization & integrated demonstration project of Shuangcheng City 1. Project introduction One of this project's undertakers is Shuangcheng Chenxi Dairy Industry Limited, founded in Mar 1999, with fixed assets of 5.08 million yuan, annual sales of 17.7 million yuan. Another undertaker is Shuangcheng Rongyao Forage Biotechnology Development Limited, founded in 17 Oct 1997, being a modern hi-tech enterprise integrating forage production and marketing. The company has a registered capital of 5 million yuan, the trademark "Rongyao" has been rated as a "famous brand of Harbin" and a "famous brand of Heilongjiang". In 2002, the company was appraised as one of the "Top 100 forage enterprises of China" by the Forage Industrial Association of China as the sole forage enterprise in Heilongjiang. The project covers: train 150,000 men-times a year, including 1500 men-times of professionals, 148,500 men-times of cattle raisers; conduct artificial fertilization on 25,000 heads-times; conduct disease control on 40,000 heads-times; annually produce 60,000t silage; and set up an integrated cow production technical service and information management system. 2. Mode of cooperation with farmers Dairy Industry Company has engaged experts to conduct gratuitous training to cattle raising farmers and technical service personnel; the disease control hospital and the breeding station offer compensated services, the forage company has signed a forage planting and purchase agreement with silage planting farmers and harvest silage corn for them free of charge. In the meanwhile, it enters into a feed supply contract with cattle raisers in the technical carrier of silage and fine fodder supplemented feed. Through after-sales service, it directly teaches the fully mixed daily grain feeding technique and standard cow raising procedure to cattle raisers. 3. Survey of affected area (1) General situation of affected area Jiuyuan Manchu Village, an affected village, is the seat of the township government, where there are 560 farmer families and 2700 people. Manchu people account for 90%, Han people 10%. There are many poor people, accounting for 40%. The annual per capita income is 700 yuan, those not dealing with stockbreeding can earn 150 yuan on 1mu land a year only. The key source of income is corn planting. Medium-income families account for 40%, there are 30 chicken raising families and 15 pig raising families (above 4-5 heads), 140-150families dealing with transport; 200 people are working outside, accounting for 6-7%. Rich families are mostly doing business, accounting for 2%, 200 families are raising pigs (846 heads). Yuren Village under Tuanjie Township is 17km from Shuangcheng City, with 7746mu land, 1182 people, 253 families, per capita land 6.3mu. Living mainly on cow raising, the village has 2009 heads of adult cattle (1.7 heads per capita), 836 heads of quasi-adult cattle, cattle raisers account for 84% of the population. There are 11 service families that thresh feed and cut fodder for cattle raisers. Cattle raising began in 1984, where 12 families were dealing with this. 1996 witnessed the peak of cattle raising, where there were 194 heads of cattle. During 1996-1998, cattle brokers emerged (some villagers purchase cattle for farmers and sell cattle to farmers on credit partially or in full). The richest family at the village is a cattle raiser, which raises above 40 heads of cattle. This family has a cattle raising experience of 3-4 years only but it has the capital and manpower for raising. There are only 5-6 poor families at the village, mainly because they have no money or are unable to borrow money. The village, with per capita income of 5100 yuan, is a rich village in Shuangcheng. The annual milk output of a cow is less than 4t, the income is 6400 yuan, the cost is at least 3400 yuan and the net profit 3000 yuan. Mostly manual milking is used, only 4 families use mechanical milking. 18 1. Sequencing of priorities in cattle raising: Raising Technique Breed Cowshed Feed cattle or improvement improvement expand scale Yan Shanqing 1 4 5 3 2 Dong Shiju 1 5 3 4 2 Fu Changbo 1 4 5 3 2 Fu Junheng 1 3 4 5 2 Ma Mingyan 1 4 2 5 3 Li Ligeng 4 1 5 3 2 It can be seen from the above sequencing that, for the whole village, the most desired things are: to become rich by raising cattle with low-interest loan and favorable policies; to expand the scale of fine-variety forage; good techniques; good cowshed; refined varieties. (2) Case interview Case 1: Li Ligeng, female, 50 years. He raises 6 heads of cattle, 1 head of cattle brings 4000 yuan income on average. A head of cattle is fed 7-8 catty dry straw and corn, 7-8 catty mixed feed and 1 catty wheat bran. He has raised cattle for 11 years. He has heard of the silage project and knows Rongyao Company is responsible for purchase. He thought this was easy to get started because the seed is provided by the company. If there is loan from the State, he wants to raise more cattle. Case 2: cow raiser Ma Mingyan, 40 years. He began to raise cattle in 1992, when he thought the economic benefit of cattle raising is good. The first head of cattle was bought with a loan of 2900 yuan. By 2002, he raised 9 heads, with average net income of 20,000 yuan, less than 3000 yuan per head. He wants to raise better breeds, because the current milk output rate is too low. The milk is purchased by Nestle at the 2 milk stations in the township. The purchase price depends on the grade, 0.8 yuan for Grade I, 0.75 yuan for Grade II, 0.65 yuan for Grade III, most milk is of Grade I. There is a veterinary station at the village, operated by an individual. The former epidemic prevention station has been contracted. The annual medical expense per head of cattle is 300 yuan. Farmers may be exempted from taxes if silage is provided by the township government. There are many taxes now, but there is no tax on cattle raising. 4. Comments of SA Team Firstly, the project has setup a chain of forage planting family +forage company +cattle raiser +dairy enterprise. The two companies are responsible for the infrastructure construction and management, the popularization of technology and provision of relevant services to farmers. This industrial chain may help solve the problem of shortage of dominant motive power and effective management in technical popularization. Secondly, the construction of a perfect industrial chain helps abate the impact resulting from market fluctuations, realize efficient division of labor in the whole industrial chain, and make planned production that can predict market trends and effectively avoid risks. It is suggested 19 that the company and farmers involved in the industrial chain should not only consolidate the cooperative relationship in production, but also recognize the interest community as a whole conceptually, acutely master the dairy industry market, jointly make an adjustment plan that is the most advantageous to the adaptability of the industrial chain. Thirdly, to drive farmers to learn and apply advanced technology forwardly, the company may set up an encourage bonus to promote the benefit optimization and strength consolidation of the whole industrial chain at a low cost. G. Cow project of Zhaodong Project 1. Project introduction This project is a new project, the executive unit of which is Songzhan Xinxing Stockbreeding Limited in Zhaodong, a state Class II enterprise. The brand Oasis has been appraised as one of the national Top 10 brands of dairy products and awarded a green food mark. The company has registered capital of 80 million yuan and total assets of 322.83 million yuan. This project will build a standard cowshed that can accommodate 200 high-output cows, a milking hall to realize the centralized milking of 2500 cows in the affected area, build a forage distribution center, including 4500m3 silo pit, 3200m2 fodder warehouse (storing quality hay and protein supplemented feed), a DHI test center to test milk output, quality and somatic cell count, etc, and an integrated cow feeding technical service center. The 20,000mu pasture production base can provide farmers with high quality leguminous and gramineous pasture. It will also purchase computer network system equipment that uses the cow production information and management system software to record production and guide farmers' cow production. 2. Mode of cooperation with farmers The Zhaodong Rural Cow Association will be founded, in which a cow will be a member unit. Cow raisers may apply for affiliation to the association on a voluntary basis. The pattern of cooperative business operation will be adopted to organize farmers' cow production. Unified operation, accounting and profit sharing will be practiced according to the cow association's articles of association. After joining in the association, a raiser may enjoy the "5 guarantees, one support and one insurance" preferential policy: "5 guarantees" refer to the guarantee to free training of cow raising and management skills, provision of technical data; the guarantee to provision of high quality forage, forage grass and fine cow breeds; the guarantee to disease prevention and treatment; the guarantee to breeding; and the guarantee to exclusive milk sales on the basis of the protective price. "One support" means if a specialized cattle raiser raises at least 5 cows, a low-interest loan of 1000 yuan will be provided to each cow. "One insurance" means: the association shall underwrite insurance for cows of all members with the insurance company. Through the cow association, cow raisers can obtain the quality service offered by the financial credit and technical service center. Through the organizational form of one local federation under a general federation of the rural cooperative, scattered cows in rural areas are gathered to the milking hall for milking, ensuring the quality of the milk processing. The company shall set up a board of supervisors, 20 which is responsible for settling any conflict of interest between the company and farmers, with a preferred solution of maintaining farmers' interests. The association shall strengthen the interest relationship between the company and farmers by selling forage, purchasing milk, providing pre-production, mid-production and after-production services to cow raisers, making a profit by collecting service charges and promoting the technological exchanges among cow producers. 3. Survey of affected area 1) General situation of affected area Ruiguang Village: 736 families, 3160 people, 14100mu land area, 13500mu grassland area, 3500mu range, 8 natural villages, 90% families are raising cattle, above 3 heads per family. 62 families are not raising cattle, mainly because of technical or financial difficulties. There are 21 poor families with little land. Few people are working outside. Except cattle raising, this village also grows 8000mu corn, 700mu soybean and 3000mu silage. Songzhan Village: 7500mu pasture land, 1350 laborers, 1350 cows, 380 cattle raising families, accounting for 60%, other families grow vegetables, doing small business, deal with transport or faming. Cow raisers are the richest, the richest one raises above 110 cows. There is a cow association at the village, founded in 1994, headed by the village head, aiming to solve the forage problem coordinate the delivery of fresh milk. The association deals with the company, publicizes experiences for becoming rich and has affiliated 40 families. The main role of the villager committee in the project is to publicize the project. 2) Farmers' perception of project: 27 families of this village have the intent to enter into contract with Xinxing Company, they become a shareholder with cattle and might enter the factory for work. This project is oriented to poor families. Xinxing Company has agreed with Yili Company that a loan of 5000 yuan shall be extended to each head of cattle, cowshed will be provided gratuitously, the breeding charge will halved. The milking station and technical training will be free of charge, and the purchase shall be made at the protective price of 1.4 yuan. Families with less land, sick person or per capita income of less than 1000 yuan will be given priority to. This village has many people for land. There is a workshop of Yili at Songzhan under joint management with Oasis. The project's execution can settle the rural surplus labor and help farmers become rich. A farmer can earn at least 4000 yuan from this project on average. If a calf is born, the income would be above 10000 yuan. 3) Case interview: Case 1: Yu Cuiping has bought 2 heads of cattle this year, which have not made a profit yet, each costing 13,000 yuan. Women deal with farming, breeding and housework at home. Cattle raising is costly. Xinxing Company has provided a loan (1/3 of the cattle price), techniques and market outlet. Women can raise cattle and men can work outside and till land. The company offers special training to teach breeding, raising and disease control skills. If there is any question, they can 21 contact the village cow association at any time. The integrated stockbreeding station is subject to follow-up service by the company. Yu's family was affiliated to the cow association earlier this year, which has helped the family solved some technical problems. The cow association holds meetings irregularly for 2-3 times a year. Cattle raising activities undertaken by women: cattle feeding: once every 8 hours, excrement removal, water drinking, herding, cowshed cleaning, buying forage or planting fodder (fine forage is needed when a cow lactates, including bean, corn flour, wheat bran, microelement, etc) and milking. Yu thinks the job of cattle raising can be easily done by women. 4. Comments of SA Team The operating pattern "company +base +association +farmers", especially the "5 guarantees, support and insurance" advocated by the cattle raising association have solved difficulties of cattle raisers in forage, disease prevent, breeding, technical support and source of information. The support measures for minor families, poor people and the avoidance measures of cattle raising risks in the form of insurance are very practical. Firstly, the construction of the cattle raising zone has effectively improved the local raising environment, machinery milking has guaranteed the milk quality and the zone's operation is directly connected to the service quality it offers. It can be said that the idea of cow industry improvement in Zhaodong begins with the establishment and perfection of the service system, which has been turned into a profitable operating entity that connects the dairy products enterprise and cattle raisers, ensuring the quality control over the production links. Secondly, the base and association act as the intermediate links to connect the dairy products enterprise and cattle raisers. It is suggested to further their role in coordinating and ensuring the interests of both parties. Section 2 Planting Projects A. Soybean project of Bin County 1. Project introduction This project is a new project, the executive unit is Longfeng Seed Industry Company in Bin County. The predecessor of this company was Bin County Seed Company, with a history of 35 years, which was reorganized in Jan 2003 into a joint-stock company. The company has good credit in seed production, product inspection and technical service. The project prepares to construct a 20,000mu cultivation base high oil, high protein fine breed soybean to annually yield 330,000kg original seed and 3,160,000kg fine variety seed. The project has been started in June 2002 and has made a preliminary progress with the technical support of the Northeast Agriculture University and the Harbin Hefeng Agricultural Hi-tech Development Limited. 2. Mode of cooperation with farmers 22 This project is run in the pattern of "scientific research unit +company +farmer association" and pursues the mode of operation of order agriculture to realize the operating mechanism of driving the base with the seed industry company. This project involves 1100 farmer families, including 100 farmer families in the original seed cultivation base and 1000 farmer families in the fine variety cultivation base. Families under technological demonstration in the base are responsible for soybean land preparation, field management and harvest, and shall receive the technical training. The agriculture machinery, electromechanical wells and farmland capital construction are managed by the farmer association and commonly used by families under technological demonstration, these families shall profit from the cultivation of original fine breed. When the project is completed, it can drive 40000 families outside the affected area to deal with the production of high oil, high protein soybean. 3. Survey of affected area 1) General situation of affected village Fuhe Village under Juren Town is located at north of the town, with a total area of 18,200m2, 6 natural villages, 789 families, 3084 people, 10557mu tilled land (3.4mu per capita, 85% is dry land). In recent years, there has been serious soil loss, deteriorating the environment. The single structure grain output has restricted the development of the rural economy. In 2002, the total grain output was 4.29 million catty, per capita output 695kg, per capita net income 1216 yuan. There are 200 poor families and 704 poor people, accounting for 25% and 23% of the total number of families and the total population respectively. Comparison of cattle raising, working outside and soybean planting industries by farmers: cattle raising: time consuming, risky, high investment, high technical requirements, unsuitable for each family. However, farmers thinks that the stockbreeding project is the most profitable. Working outside: it's uneasy to find a job and earn much money (50 yuan/day for skilled jobs, 20 yuan/day for labor jobs). There will be insufficient manpower at home in busy seasons, but there is nothing to do at home in slack seasons. Soybean planting: the labor time is less than 2 months, market outlet is guaranteed, farmland infrastructure can be improved, farmers do not have to input cash, so soybean planting has the highest integrated cost-effectiveness. 2) Farmers' perception of project Most villagers knew the project in June last year and that the pattern of company plus farmer would be employed. 300 farmers from 5 natural villages will be organized to participate in the project, mostly from poor families. Poor villagers are very concerned about the project's progress. Farmers' benefits from the project: the per mu yield has risen from 150kg to 185kg, with an income increase of 50-70 yuan per mu. The seed company will purchase soybean at a price 10%-20% higher than the market price, the total increase of income will be about 120-150 yuan. The company may supply seed, prepare land, mix seed, fertilize in a unified manner. Farmers are very active for the project. Since there is the standard practice of crop rotation in soybean production, farmers not in the round are waiting patiently for their own plots to be brought into the planning. The key reason for the low profit of farm products is the absence of 23 a steady market outlet. In the production process, since farmers have a limited mastery of the information and techniques, and their risk resistance is poor, the company will then provide a guarantee on these links, so that farmers can earn money with a peace in mind. 3) Case analysis In the following case, we can see that the key reasons for poverty is little labor, heavy family burden, lack of the fund to change the structure of operation and poor resistance to risks. The preferential policy granted by the company to poor people gave him an opportunity to change the present situation. Wu Guozhong, 49 years, with 27mu land, 16mu growing high oil soybean and the remaining growing corn. His family has 6 people, his wife is sick, costing over 2000 yuan a year. He has 2 children, with one studying at junior high school, costing 2000 yuan a year. In 2000, he borrowed 5500 yuan from a rich family, the interest was as high as 170 yuan/1000 yuan. Rich families have members working outside with annual income of about 5000 yuan. Now only a small number of people is working outside. Reasons for his poverty: less labor, his wife being sick, inability to work outside. He is satisfied with the project, especially because the project can well construct infrastructure. Main risks are undertaken by the company. As long as there is no major natural disasters, farmers' income can at least guarantee their minimum needs. 4. Comments of SA Team The soybean fine variety cultivation project has made use of the local agricultural advantages, grasped the decisive occasion of soybean market proliferation, enhanced the momentum for the soybean industry to develop in a specialized, large-scale and intensive way. In the design of the cooperative mode with farmers, it is suggested to first consider practical difficulties of poor families and women in development and take corresponding measures for support. In the meantime, make sure demonstration families, the farmer association can be combined with farmers organically. The "6 centralizations and 1 decentralization" production management style explored under the project in cooperation with farmers, may help integrate manpower, financial, material and technological resources, grasp the best junction in time and space of profit increment. It is a beneficial trial to tailor measures to the local conditions, develop and improve the degree of agricultural industrialization in a benign way. The market risks borne on the enterprise can be avoided by perfecting the soybean industrial chain of fine variety cultivation-production-marketing-processing and developing the connection with industries related to stockbreeding. B. Soybean active peptide fine processing project 1. Project introduction This project is an expansion project, the construction unit is Heilongjiang Leneng Biological Inc, founded in Oct 2002, with a registered capital of 79.4 million yuan, being the largest soybean active peptide production plant in Asia. 24 The existing scale of production is the annual capacity of 2000t soybean active peptide. The technical support unit is the Heilongjiang Light Industry Scientific Research Institute. When this project has been put into production, it can produce 1000t refined active peptide flour per annum; the purchase contract for Dongnong 42# soybean has been entered into with farmers at an annual demand of 20000t. This company shall provide original seed and the technical support in planting. A stable product and raw materials supply system will be established. 2. Mode of cooperation with farmers Heilongjiang Leneng Biological Inc has formed a close cooperative relationship with farmers by founding a quality soybean planting base and a soybean deep processing enterprise under shared risks and interests. The company has signed a soybean planting contract with farmers. The company shall provide high quality Dongnong 42# soybean seed, after autumn, it shall purchase all soybean meeting the quality requirement at a price 0.1 yuan/catty higher than the prevailing market price. This company shall also provide technical training on planting, to make sure that farmers can grow high quality soybean. By establishing a good cooperative relationship between the enterprise and farmers, farmers' planting risks will be minimized. 3. Survey of affected area 1) General situation of affected area This project's area is located at Fuhe Village under Juren Town, Bin County. This village has an area of 18,000km2, 6 natural villages, 789 families and 3084 people, per capita land of 3.4mu, 85% being drying land, and 200 poor families. The per capita net income in 2001 was 1216 yuan. Reasons for poverty include uncontrollable soil loss, low technological level, poor infrastructure, low resistance to natural disasters. Above 95% farmers at the village deal with the operating pattern with focus on grain. There is no water conservancy work to resist spring drought and summer flood. The per mu grain yield is 150kg, planting corn and soybean. From 1999 through 2002, the soybean area was 4500mu, per mu of high oil soybean is given a state subsidy of 8-10 yuan. 2) Case interview In the case interview, we concentrated on the form of participation of farmers under the large scale production of soybean; the advantage of soybean planting over other crops is the high profit, little manpower input and small risk. Whether poor families, women or major planters have responded actively to soybean planting. See Case 1 and 2. Case 1: Shao Xiuhua, female, 51 years, living at a 4-member family. Her family has 13mu land, growing soybean (6mu) and corn (7mu), the per capita annual income is less than 500 yuan. Now there is a loan of 5000 yuan borrowed since 2001 at the interest of 6%. 80-90% farmers at the village are on debt for planting. The soybean output was originally 250-300 catty, the average price in the last year was 1.1 yuan/catty, purchased by visiting dealers or sold by ourselves. Since 2000, the price has been relatively stable at about 1 yuan/catty. We began to plant high oil soybean since the last year, according to the soybean revitalizing plan, the price would be 15% higher than ordinary soybean, the output would be 180km/mu, the product will be sold to the oil plant. 25 For her family's regional restrictions, she is unable to participate in the projects. She is very eager for the seed and techniques to be provided by the company to make her able to deal with soybean planting. Case 2: Xia Qingfu, male, 39 years, in a 3-member family. There is 12mu land and no paddy field at home, planting corn and soybean. His family raises pig at ordinary times and would does some jobs sometimes. Longfeng Seed Company offers poor people free seed, techniques, fertilizer and regular technical guidance. 4. Comments of SA Team 1) This project aims to develop high-end soybean products using local soybean resources. It is expected to develop fine processing and improve the overall operating level of the industrial chain by developing the end market of the soybean industrial chain. 2) In the combination with farmers, try to fully bring along groups of different conditions in poor rural areas, solve problems in production facilities and technical popularization practically and guarantee purchase at preferential prices. Apply special support policies on women and poor people. 3) Since this product needs to further develop the market. There should be an allowance in price adaptation to effectively avoid market risks. C. High-oil soybean technological popularization & integrated demonstration project of Fujin City 1. Project introduction This project is a new project, the executive unit is Fujin Meiya Seed Limited. This company is a nongovernmental hi-tech business dealing with seed cultivation, technical popularization, with its business scope covering 12 provinces of China, boasting strong technological strength, R&D capability and a perfect marketing network. The project will construct a 2,000mu high oil soybean original seed base and a 20,000mu fine breed base to produce 330t high oil soybean original seed and 3300t fine breed a year. The soybean production shall be subject to unified seed supply and standard cultivation. The technical support unit of this project is the Northeast Agricultural University. 2. Mode of cooperation with farmers This project involves above 1000 farmers and will be run in the pattern "scientific research unit +company +farmer association". The production equipment shall be managed by the planting industry association, farmers shall become a shareholder with means of production. The company's technical personnel shall be retained to organize, unify the production process. Original seed will be supplied at the half price, the purchase price will be 15% higher than the market price of commodity grain. The association is responsible for the support services to centralized planting and unified production. 26 The winter training of farmers shall be carried out in a centralized or decentralized manner, or with different media (TV, broadcast, publicity materials) in the production process. 3. Survey of affected area (1) General situation of affected village and sequencing Background of Desheng Village in Changan Town: 940ha land, 205 families, 946 people, per capita income 2000 yuan. 50-60 families are relatively poor, 1/3 medium families and 1/3 rich families. Last year, 70 families attended the the soybean project on a land continuity basis. The government selected this place because the land is continuous and the public's activity is high. A farmer association has been set up to provide planting and sales services to farmers. It has already held 2 meetings, attended by affected farmers, mainly discussing the planting process. Sequencing of different species Sequencing (excluding labor costs): Labor time Labor intensity Risk Soybean 4 4 2 Wheat 5 5 4 Corn 3 3 3 Paddy rice 1 1 5 Beet 2 2 1 Through the overall benefit sequencing, we can see that paddy rice ranks first in both labor time and labor intensity; soybean costs relatively less labor cost, soybean is relatively reliable in resistance to risks arising from price fluctuations, which is directly related to the output and soybean's quality. As to benefit, paddy rice ranks first, soybean ranks 3rd. It can be seen from this sequencing that, the key factors restricting the local soybean development include the absence of a stable market and low soybean quality. If these 2 problems have been solved, the overall benefit of soybean planting will be the highest, it will surely mobilize the activity of farmers. Sequencing on standard of living: Background of poor people in Desheng Village: Criterion Percent Reason Remarks (%) Good With savings 5 Strong ability, good fortune The state will Medium Without farming on 20 Good luck grant a loan loan only with the Poor Farming on loan, if 70 Bad fortune, low benefit of joint guarantee without the state loan, planting, without sideline; of 3 families no way of farming high costs of marriage and and mortgage of (most fundamental education; nothing to do at property, criterion) leisure time; lack of leading to a technology, low literacy vicious circle Extremely Unable to maintain the 5 Natural and manmade poor basic livelihood disasters 27 Farmers' suggestions for further development of the village: 1) develop high oil soybean; 2) provide money, preferably the state extends more loan; 3) technical guidance, special support, increase the output with technology and agriculture machinery; 4) there should be investment in agriculture infrastructure (water conservancy work, large field machinery); 5) solve the problem of slack season in farming, develop some other industries in addition to the planting industry; 6) how to find a place for storage and drying, preferably the harvest can be directly handed to the company, which is willing to provide spaces for drying yard and warehouse. (2) Case analysis It can be seen from the following case that owing to the heavy family burden, the agricultural income effect of farmers is low. Once the family bears debts or suffers from a risk, it would take a long time for adjustment. The soybean project can effectively avoid risks in production and market links, bring along farmers to get on the approach to industrialized operation and change the current situation of weak risk resistance of the small-scale farmer economy. Zhang Qiang, 53 years, with 3 children (2 female, 1 male). The dowry for each daughter is 5000 yuan, the expenses for the son to taking a wife are 30,000 yuan. A sum of 40,000 yuan was borrowed and is to be paid off in 10 years. The daughters got married in 1993 and 1996, the son got married in 1999. The income then came from farming, including beet (key source of income), soybean, corn and wheat. At that time, the whole village lived on beet. Later, due to natural disasters, it was no longer suitable for growing beet. In 1999, we replanted soybean on a larger scale. In late 1990s, there was 4ha land and income of 6000 yuan, other expenses are made up by borrowings for the purpose of farming. Well-off state in his mind: there is always steamed bread to eat, there is oil every meal, there is clothing in winter, the house has no rain leak. Goal: no loan, financial self-sufficiency. The high oil the soybean project can meet this goal. He has not planted soybean yet, because his family is not in the development zone. By 2004, high oil soybean will be planted to relieve poverty. There are 2 pigs, the cost and net profit of each are 450 yuan and 150 yuan respectively. However, there is no investment to enlarge the scale. 4. Comments of SA Team Firstly, the project company has a widespread seed marketing network and high goodwill. It should establish a mutual-trust, mutual-benefit cooperative relationship with farmers using its existing advantages and experiences in the soybean project. Secondly, owing to the strict requirement on the fine variety's quality, the soybean production links must be standardized, which certainly requires mechanized tillage, unified management. The enterprise must take quality as its first priority, well conduct the training and production management on farmers patiently and meticulous. Thirdly, beneficial experiences in popularization should be timely summarized to realize the benign interaction and joint development between the enterprise and farmers. 28 D. Soybean project of Hailun City 1. Project introduction (1) Hailun City is a state-level green soybean production base, renowned as the "native place of quality soybean of China", abounding in high oil high protein soybean; (2) There is also a nationwide soybean trading market. The soybean planted area is above 1000,000mu, ranking first among counties nationwide. The idea to develop the soybean industry of Hailun City is: 1) fine variety: 22%-23% oil-yielding rate, the high oil high protein fine variety is suitable for industrialized processing; 2) fertile land: give play to the advantage of natural conditions, driving the quality regionalization with ecological regionalization; 3) good method: realize high output and high efficiency; and 4) benefit maximization: a mechanism with the company in charge and industrialized operation. (3) The project is a new project, whose executive unit is Hailun Dongsheng Seed Limited, restructured into a joint-stock enterprise in 2002, now it has grown into one of the Top 100 seed enterprises nationwide. The project prepares to build: a 2000mu original seed base, with annual output of 300,000kg original seed; a 20,000mu fine variety base, with annual output of 3 million kg fine variety; fully covering 1000,000mu the fine variety soybean production in the whole city. 2. Mode of cooperation with farmers (1) Company-driven: train 8000 men-times in the core area in 4 years, improve farmers' sense of hi-tech and make them use advanced technology automatically via the training on machinery and practical techniques. From Nov through Mar, experts taught lessons in the slack season, oriented to cadres, technical personnel and farmers. (2) Farmers are responsible for soybean land preparation, field management, harvesting and other agricultural production jobs, and receive technological training. The agriculture machinery, electromechanical wells and farmland capital construction are managed by the farmer association, original seed and fine variety are used by farmers in a unified manner, farmers make a profit by cultivating the original fine variety. (3) Form of order agriculture: contracting with farmer, purchase of original seed and fine variety at the protective price, which floats with the market price. 3. Survey of affected area (1) General situation of affected village Leye Village, with 5 hamlets, a tilled land area of 11650mu, 1810 people, 185 families, of which rich families take a half, the per family income is 8000-9000 yuan from farming and work outside, 30 poor families. It is planned to develop 3750mu soybean fine variety, 140kg ordinary soybean and 180kg original seed soybean. The existing agriculture infrastructure is 29 not matching, especially water conservancy works. Reasons for farmers' willingness: 1) low investment, centralized land preparation, reducing cost by 15 yuan/mu, tractors are contracted to farmers; 2) easy to manage, under the unified management, the technological level can be kept up; 3) good economic benefit. In the past, people couldn't understand high oil soybean; with unified management, almost every family can make a profit; 4) professional variety with high benefit, increasing income by 0.15 yuan/catty. A soybean association (headed by the village head) and a farm machinery association (headed by the secretary of the Party branch) have been set up in Leye Village to play the role of daily training, farmer mobilization, project publicity and coordination. The concerns in project execution include, 1) technical forces, quality and output, especially mode of cultivation; and 2) agricultural base and supporting facilities, including roads, wells, bridges, culverts, etc. (2) Case interview Case 1: Zhang Yagen, female, 55 years, lives in an 11-member family. She has 3 married sons and 3 grandsons. 5 of the 11 members are working outside, in which a son earns 10,000 yuan a year. According to her, Hamlet 2 is the most active one in the project, where there is a per capita land of 6mu and above half men are working outside, women mostly take care of housework and field at home. In addition to Hailun City, villagers are also working in Harbin, Heihe, Sanjiang and even Russia. Their jobs include builder, small business, vegetable planter, etc. For a builder, the daily pay for ordinary physical labor is 20 yuan, a skilled worker can earn 40 yuan a day. Except working outside, the family's key source of income is agriculture. There is 4ha land at home, growing corn, potato and soybean, of which soybean is planted on 3ha land. Since the family failed to reach an agreement, the family didn't participate in the soybean project until this year. As for whether to take part in the project, the couple has made a joint decision. She is willing to attend the World Bank project, mainly because the soybean variety popularized by the project is fine and suitable for the locality with high output. Dongsheng Company has also promised a price markup of 0.15 yuan for 1 catty soybean. Farmers at this village have attended the soybean project for 2 years, everyone has seen the output and income increase effect as a result of the project. She estimates that the planting of the fine variety soybean will increase income by 700-800 yuan/ha, which can just offset the agricultural tax and other costs on 1ha field. She is presently planting commodity soybean. The per ha yield of an ordinary soybean variety may be 3600-3700 catty. If the fine variety soybean is planted, the yield will be nearly 5000 catty, thus: The commodity soybean price last year was 1.2 yuan/catty. The costs for planting commodity soybean include: agricultural tax of 400 yuan/ha, mechanical tillage expenses of 300 yuan/ha, fertilizer cost of 700 yuan/ha, seed cost of 240 yuan/ha, 2640 yuan/ha in total. Her family has planted 3ha land, there are also incidental costs of about 1000 yuan, the total cost will be 5920 yuan. The high-yield soybean can attain the harvest of 5000 catty/ha and 3ha land can attain 15000 catty, if it is sold at 1.2 yuan/catty, the gross income would be 18000 yuan. If the cost of 6000 yuan is subtracted, the profit is 12000 yuan. 30 She thinks that there is no technical problem in participating in the World Bank project, she is satisfied with the technical service offered by Dongsheng. She says, Dongsheng practices full course technical service, field training and door-to-door technical guidance, which will surely ensure the technical qualification in fine variety and original seed planting. Since the World Bank's loan is not in place yet, this project is not formally started in this village, villagers just have the intent to cooperate with the company but have not entered into a contract. Farmers do not have a formal contract sample yet. Farmers know about the company' commitment to them: the company promises that the minimum protective price of soybean fine variety is 1 yuan/catty, that of original seed is not known yet, the company has also promised to purchase at a price 0.15 yuan/catty over the year's purchase price. Since the project company practices centralized planning, the planting location will be selected according to the local conditions. Farmers to be involved shall be determined by their land location, whether the location fits the planting of fine variety or original seed, so the farmers attending the forum do not know whether their land will be planned for fine variety or original seed. However, everyone is very clear that, the price of original seed is higher than fine variety, they all want to plant original seed. Since many men are working outside, women staying home undertake a great amount of field labor and housework. Women say that, since the implementation of the contract system with remuneration linked to output, especially in the past 5 years, their labor intensity is higher and higher. However, all of them say that they have no choice. The situation is, it is impossible to earn much from agriculture to support children's education and improve their living standard. Accordingly, they must earn money by both working outside and dealing with the planting industry. Zhang says that, excluding the productive investment, the living expenses and other incidental costs of her family amounts to 7000-8000 yuan a year. The family is seriously short of money. When speaking of the risks in participating in this project, farmers say, the project company has addressed their greatest concerns in marketing of farm products and technological service; there is almost no other risk. Zhang has proposed the irrigation problem in this project. There are 12 wells at Hamlet 2, but there is one set of nozzle tube equipment only, the irrigation equipment is scanty; the farm machinery problem: the technical requirement for planting fine variety and original seed is high, the present soil drilling depth is not enough, there is urgent need for soil drilling machines and other agriculture machinery. 4. Comments of SA Team Firstly, the company has shown concern for the interests of poor people and women, allowing them to attend the mass production, avoiding the problems that they would possible meet with in individual operation due to the shortage of labor, fund and technique. Secondly, the company's considerations in running the project include: 1) standard supply of seed; 2) large-scale operation; 3) standard cultivation; and 4) "1 main factors and 3 auxiliary factors" in cooperation with farmers: the main line of company-base-farmers; support with technical support unit and policies, assistance from farm machinery and soybean association. The company cannot fully represent farmers' interests and need the association' supervision (a sound local agriculture association has been developed) and unified coordination. 31 Thirdly, a new operating organizational form has been explored, generating a variety of forms of industrialization organizations, e.g., leading enterprise +cooperative economic organization +farmers, leading enterprise +broker +farmers, leading enterprise +operating company + farmers. E. Potato seed project of Nahe City 1. Project introduction This project is a new project. The project location of Nahe City is the "native place of potato of China", whose potato planting area ranks first among counties nationwide. The executive company is Nahe Xinfeng Seed Limited, a joint-stock enterprise integrating detoxified potato seed cultivation, production and marketing, with total assets of 12 million yuan and tilled land of 3400mu, one of the largest county-level seed companies in Heilongjiang. The technical support unit is the Northeast Agricultural University and the construction location is Tongxin Township under Nahe City. The project plans to construct a detoxified potato fine breed base. When the project is completed, the company may produce 140t detoxified potato original seed, 1870t original seed first generation potato and 30000t original seed second generation potato a year. 2. Mode of cooperation with farmers This company has united into the industrial community of "company +base +farmers" in its long-term cooperation with potato planters based on its technological advantages, industrial advantages and market advantages. This project employs the marketing mode of company + farmers. The detoxified tube potato seedling and original seed are sold inside the company at an internally fixed price. The first generation of original seed is sold to potato planters at 2000 yuan/t, potato planters may make partial payment or fully on credit, the payment will be deducted from the profit when the 2nd generation of potato original seed is recovered in autumn. The recovery price is 400 yuan/t, the export price is 600 yuan/t. 5000 men-times of farmers are trained annually, so that every potato seed family will have a member that masters the potato seed production and planting technique. 3. Survey of affected area The affected area is located at Tongxin Township under Nahe City, with an area of 29400mu, including 3400mu potato original seed yard. Wenguang Village under Tongxin Township has an area of 26000mu, including a tilled land area of 23400mu, accounting for 80% of the total area; 3000mu woodland, accounting for 10%. The tilled land is completely dry land, growing soybean, potato, beet and beans. From the perspective of land utilization, the tilled land area is great, farmers' income comes mainly from the planting industry. This village is a typical dry farming area. 32 Wenguang Village, one of the affected villages has 800 families, 4000 people, 6 hamlets and grew 5000mu potato in 2002, 8000mu in 2003, will grow 15000mu in 2004. There are 700 potato planting families, all under a contract, including 300-400 commodity potato planting families. Compared to commodity potato, the planting of potato seed can earn 50-100 yuan more, farmers' sense of participation in the project is being updated gradually, because they have seen the apparent benefit from potato seed planting. 30-40 villagers are working at the potato original seed plant, paid 10-15 yuan/day. Through the comparison with other crops in benefit, production difficulty and market risks, the reasons for farmers' actively participating in the project can been seen, see Case 1. Case 1: Sun Jianjiang, male, 36 years, living in a 3-member family, his child is just 2 years old this year. His family has 35mu land, of which 15mu is the contracted land after allocation of field to family, 20mu is subcontracted from others, for which a contracting fee of 130 yuan /mu should be paid to the original contractor of the land before the spring seeding every year. The main crops are soybean and commodity potato. According to him, the per mu net profit of soybean is 100 yuan, the net profit of commodity potato is slightly higher than soybean, generally 0.1 yuan/catty. He family also raises 2 pigs, each can be sold at 500-600 yuan. Last year, he worked 3 months at Xinfeng Seed Company (paid 300 yuan monthly, 30-40 people of this village are working there, more than a half being women). Since the original seed quantity offered by Xinfeng Company is limited, his family was unable to attend the project this year. He prepares to attend this project in 2004, plans to plant 20mu potato seed, the cost input per mu is about 300-400 yuan, which higher than commodity potato, but the survival rate of potato seed is above 95%; in contrast, the survival rate of commodity potato is 50% only. The company also offers full course technical service and technical training, solving the greatest technical problem. Moreover, the company guarantees the recovery of all potato seed, solving the farm product marketing problem, which is the greatest concern of farmers. 4. Comments of SA Team Firstly, this project is based on the local potato industry' advantages and has accurate market positioning. Secondly, this project requires less investment and is quick-acting, producing a direct driivng effect on relevant industries. Thirdly, in the cooperation with farmers, the advantages of the company + farmer pattern has been exerted, attention has been drawn to support disadvantaged groups. While farmers are obtaining significant proceeds with help, they're gradually accepting new skills and new concepts. Fourthly, since this project directly relates to the quality of farm products, it is suggested to well conduct the technical monitoring in potato seed cultivation. Meanwhile, to effectively avoid purchase risks due to price fluctuations, it's necessary for both parties to enter into a definite contract, lest one party's change brings losses to the other party. 33 F. Protected agriculture project of Daqing City 1. Project introduction The project undertaker is Lvfeng Technologies Development Limited in Daqing Hi-tech Zone, the company was founded in 2001 as a hi-tech joint-stock enterprise, with a registered capital of 5 million yuan. This project is an integrated demonstration zone development project that integrates vegetable production, forest seedling, gardening and resistant seedling cultivation. When the project is put into production, it will yield 1443000 seedlings, 1485000kg green organic vegetable, realize an output value of 5,302,900 yuan. This project is technically based on the Northeast Agriculture University and Northeast Forestry University. 2. Mode of cooperation with farmers This project applies the organizational form of "company + farmers". After its completion, the project will be a facility agriculture technical demonstration example. The company shall undertake large infrastructure for use by farmers all the year round, cultivate fine seedling and means of production to be provided to farmers gratuitously at preferential prices. Any supporting technique for protected agriculture shall be taught to farmers through the annual technical training and technical services. There are 3 modes of cooperation with farmers: 1) direct participation of farmers: farmers shall conduct vegetable production by contracting a greenhouse at the affected area, involving 50 farmer families; 2) contractual farmers: the company shall enter into contract with farmers, the company shall provide technical services and technical guidance gratuitously, provide farmers with seedling and means of production at preferential prices, involving 400 farmer families; 3) radiated farmers: the company shall provide technical services and technical guidance gratuitously, provide farmers with seedling and means of production at preferential prices, involving 4000 farmer families. 3. Survey of affected area (1) General situation of affected village The first farm of the Daqing Hi-tech Industry Development Zone borders on the Hongqipao Reservoir on the east and National Highway 301 on the west, with the geographic coordinate of E125
Группа Всемирного банка · Social Assessment
China - Agriculture Technology Transfer Project (Vol. 3 of 5) : Social Assessment Report - Heilongjiang
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