Togo - Rural Development in Cotton Area Project

Report No. 1494 TO FILE COPY Appraisal of a Rural Development Project in Cotton Areas Togo August 26, 1977 Regional Projects Department Western Africa Regional Office FOR OFFICIAL USE ONLY U Document of the World Bank This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS US$ 1.00 = CFAF 245 CFAF 100 = US$ o.408 WEIGHTS AND MEASURES Metric System 1 millimeter (mm) = 0.0394 inches 1 meter (m) = 39.37 inches 1 kilometer (km) = 0.62 miles 1 hectare (ha) = 2.47 acres 1 square kilometer (km2) = 0.386 sq. miles 1 kilogram (kg) = 2.205 pounds 1 ton (t) = 2,205 pounds 1 liter (1) = 0.26 gallons ABBREVIATIONS CNCA = Caisse Nationale de Crédit Agricole CFDT = Compagnie Française des Fibres Textiles (France) FAC = Fonds d'Aide et de Coopération (France) FED = Fonds Européen de Développement IBRD = International Bank for Reconstruction and Development IDA International Development Association IITA = International Institute of Tropical Agriculture (Nigeria) IRAT = Institut de Recherches Agronomiques Tropicales et Cultures Vivrières (France) IRCT = Institut de Recherches sur le Coton et Textiles (France) IRHO = Institut de Recherches sur les Huiles et Oléagineux (France) MAR Ministère de l'Aménagement Rural (Ministry of Rural Improvement) MDR = Ministère du Développement Rural (Ministry of Rural Development) OPAT = Office des Produits Agricoles Togolais SONAPH = Société Nationale du Palmier à Huile SORAD Société Régionale d'Aménagement et de Développement SOTOCO = Société Togolaise du Coton SRCC = Société pour la Rénovation du Café et du Cacao au Togo UNDP United Nations Development Program FOR OFFICIAL USE ONLY TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS TABLE OF CONTENTS Page No. SUMMARY AND CONCLUSIONS ........................... i - iv I. INTRODUCTION .. . . ................................1 II. BACKGROUND ... .............. ............................. 1 A. General ....... e...................*............. B. Regional Characteristics ...................... 2 C. The Institutional Framework ................... 3 D. Sectoral Objectives and Strategies ............ 5 E. Input Pricing Policy ......................... 5 III. THE PROJECT .................. ........................................ 6 A. The Project Area ........................ 6 B. Project Description ........................... 7 C. Detailed Features ............................. 8 IV. ORGANIZATION AND MANAGEMENT .................o..... 12 V. COST ESTIMATES AND FINANCIAL ARRANGEMENTS .......... 17 A. Cost Estimates .............. .................. 17 B. Proposed Financing ............................ 18 C. Procurement ................................... 19 D. Disbursements ....... .......................... 19 E. Accounts and Audits ............................ 20 VI. FINANCIAL BENEFITS AND OUTLOOK ..................... 21 A. Government Cash Flow .......................... 21 B. Farmers Benefits .......... % ..... ...................... 21 VII. YIELDS AND OUTPUTS, MARKETS AND PRICES ............. 22 A. Yields and Outputs ............................. 22 B. Markets and Prices .... .................... 23 VIII. ECONOMIC JUSTIFICATION ........................*.... 24 IX. AGREEMENTS REACHED AND RECOMMENDATION .............. 25 This staff report is based on the findings of an appraisal mission, comprising Messrs. R. Simsolo and 0. Honisch (IDA), and T. Vollrath (Consultant), which visited Togo in October 1976. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorination. -2- ANNEXES 1. Progress of Agricultural Projects Financed by IDA 2. SOTOCO Chart - Project Organization Table 1 - Balance Sheet and Operating Account Table 2 - Lama Kara Gin - Operational Account Table 3 - Marketing Price-Structure 3. Project Area Table 1 - Main Physical Data and Crops of Project Area Chart 16759 - Rainfall Figures for Plateau Region Chart 16760 - Rainfall Figures for Central, Kara and Savanna Regions 4. Farm and Crop Development Table I - Data on Project Farm Models Chart 16761 - Available and Required Labor on Farm Models in PY 5 Table 2 - Crop Labor Requirements Table 3a - Crop Production Characteristics - Plateau Region Table 3b - Farm Budget - Plateau Region Table 4a - Crop Production Characteristics - Central Region Table 4b - Farm Budget - Central Region Table 5a - Crop Production Characteristics - Kara Region Table 5b - Farm Budget - Kara Region Table 6a - Crop Production Characteristics - Savanna Region Table 6b - Farm Budget - Savanna Region Table 6c - Incremental Returns of Ox-drawn Cultivation - Savanna Region Table 7 - Summary of Net Farm Returns Table 8 - Projections of Farmers, Crop Areas and Production - Plateau Region Table 9 - Projections of Farmers, Crop Areas and Production - Central Region Table 10 - Projections of Farmers, Crop Areas and Production - Kara Region Table 11 - Projections of Farmers, Crop Areas and Production - Savanna Region Table 12 - Projections of Farmers, Crop Areas and Production - All Regions 5. Ox-drawn Cultivation 6. Seed Multiplication and Research Table 1 - Phasing of Seed Production Stages and Seed Requirements Table 2 - Seed Utilization in PY 1-10 7. Seed Cotton Ginning, Transport, Marketing - 3- 8. Feeder Roads Program Table 1 - Equipment List Table 2 - Calculation of Road Improvement Costs Table 3 - List of Plateau Region Roads Table 4 - List of Central Region Roads Table 5 - List of Kara Region Roads Table 6 - List of Savanna Region Roads Table 7 - Road Maintenance Table 8 - Yearly Building Program and Costs Table 9 - Summary of Costs 9. Project Costs Table 1 - Summary of Project Costs Table 2 - Investments - Buildings Table 3 - Investments - Vehicles and Trucks Table 4 - Investments - Others Table 5 - Existing Staff and Project Requirements Table 6 - Project Staff Costs Table 7 - Operating Expenditure Table 8 - Vehicle Operating Expenditure Table 9 - Ox-drawn Cultivation Table 10 - Field Trials and Seed Multiplication Table 11 - Training, Monitoring, and Evaluation Table 12 - Agricultural Input Requirements Table 13 - Costs of On-Farm Inputs Table 14 - Operation of Special Account for Procurement of Inputs Table 15 - SOTOCO Financing Plan Table 16 - Project Financing Plan 10. Project Cash Flow Table 1 - Government Cash Flow Table 2 - Financial Results of Cotton Marketing Table 3 - Post-Project Costs Table 4 - Project Foreign Exchange Income 11. Markets and Prices Table 1 - Cotton: Growth Rates of Production Table 2 - Cotton: Summary of Production and Consumption Table 3 - Detailed Price Calculation for Cotton - 1977 Table 4 - Price Structure for Cotton Table 5 - Reference Prices for Food Crops Table 6 - Price Structure for Maize Table 7 - Price Structure for Sorghum Table 8 - Price Structure for Groundnuts -4- 12. Economic Rate of Return Table 1 - Economic Benefits and Costs Table 2 - Rate of Return and Sensitivity Tests 13. Schedule of Credit Disbursements 14. Audit Terms of Reference 15. Draft Terms of Reference for the Project Monitoring and Evaluation Unit 16. Reporting Requirements MAPS 12608 - Administrative Districts with Population Density 12609 - SOTOCO Institutional Infrastructure, Primary Road Network 12610 - Main Soil Groups 12611 - Main Crops and Climatic Zones TOGO APPRAISAL OF A RURAL DEVELOPMENT PROJECT IN COTTON AREAS SUMARY AND CONCLUSIONS i. The Government of Togo has asked for IDA's assistance in financing the development of agriculture in cotton growing areas. The prime objective would be to improve and extend production of cotton and food crops. Agricul- ture has high priority for investment because it employs about 75% of the active population and accounts for about 30% of both GDP and export earnings. ii. The project area would include most of the Savanna, Kara, Central, and Plateau regions. This area is well suited for cotton and food crop pro- duction. iii. The proposed project, carried out over five years (including the FAC-financed start-up period), would endeavor to improve living conditions in the area on a broad scale. Basic infrastructure would be improved by building new roads, improving and maintaining existing ones, and the drilling of wells for the supply of drinking water would be ensured. Traditional farming would be improved by introducing better cultivation methods, including use of oxen, and promoting higher yields through the use of inputs and improved seeds and the integration of food crops with cotton into a simple, well-balanced rota- tion. Some 53,000 farm families -- over 400,000 people -- would be reached representing about 36% of the expected rural population in the project area in PY5. iv. The project would be executed by a Government agency, SOTOCO. The main project features would be: (a) strengthening SOTOCO, by providing: (i) buildings and equipment for SOTOCO headquarters and field offices, storage facilities, housing, vehicles and equipment; and (ii) additional management and field staff, training and operating expenses; (b) establishing a seed-multiplication system including equipment and vehicles and carrying-out adaptive field trials; (c) providing ox-cultivation training including demonstration equipment and credit to farmers for acquisition of ox-drawn equipment; (d) supporting project monitoring and evaluation; (e) building and improving about 700 km of feeder roads and providing for their maintenance; and (f) providing incremental on-farm inputs to expand improved cotton planting by 20,000 ha; improved maize by 13,700 ha; improved sorghum by 7,500 ha; and improved groundnuts by 2,700 ha. The wells required in the project area would be drilled as priority works under the ongoing FED Village Wells Project. Project Execution v. SOTOCO, the national cotton development agency, has two main fields of activity: extension work and the primary marketing of cotton. Marketing activities are paid by OPAT under the price structure (bareme) for which cotton is bought from SOTOCO. Extension work, including the supply of on- farm inputs, would be expanded under the project; in PY5 there would be one extension agent for 75 farmers. SOTOCO's statutes would be amended to extend its responsibilties to food-crop cultivation in cotton areas. vi. SOTOCO's administrative headquarters are in Atakpame, the capital of the Plateau region. Under the project organization, there would be four departments: (a) Technical: responsible for training, production, planning, extension work, and all field operations; (b) Commercial: responsible for purchases of seed cotton, transport, and deliveries to the gins; (c) Finan- cial: responsible for accounting and procurement (including inputs); and, (d) Civil Engineering: responsible for supervision of feeder roads con- struction and maintenance. An experienced Togolese has been appointed to the post of General Manager; the Technical Manager, seconded by CFDT, has been assigned for three project years. Positions remaining to be filled comprise the Commercial Manager and Deputy General Manager posts, to be filled by national recruitment, and the Financial Manager, Civil Engineer, Chief Mechanic, Head of the Feeder Road Unit, Senior Training Officer (and his Deputy) posts, to be filled through international recruitment, whenever necessary in view of the shortage of these skills in Togo. vii. To improve SOTOCO's financial status, Government agreed to make available funds to cover SOTOCO's expenses for HQ staff, extension work, field trials, seed multiplication, and training operations during 1977. These payments would amount to CFAF 275 million (US$1.1 million) to SOTOCO: CFAF 110 million (US$450,000) from OPAT, and CFAF 165 million (US$670,000) from the Government budget. Moreover, Government would adjust its claim to CFAF 250 million (US$1 million) shown on SOTOCO's Balance Sheet of September 30, 1976, as due to Government for inputs supplied in previous years. Against this amount, only CFAF 50 million (US$0.2 million) remained to be collected from farmers and can be reimbursed to Government. The bal- ance of CFAF 200 million (US$800,000) which was used to finance previous years' operations would be consolidated into SOTOCO's capital, increasing it to CFAF 400 million (US$6.1 million). Starting with the 1977/78 campaign, Government agreed to include in the bareme an additional amount for SOTOCO to cover its total expenditures, including incremental project costs both for marketing and extension activities. This arrangement has been devised - 111 - to ensure SOTOCO a regular income based on cotton production. It would induce better management practices, with expenditures being related to income. Gov- ernment also agreed to make available to SOTOCO, through this procedure or by direct payments, all funds necessary to SOTOCO during project implementa- tion. Project Costs and Financing, Procurement and Disbursement viii. Project costs are estimated at US$26 million equivalent (including US$2.4 million of taxes). The foreign exchange component would be US$15.7 million, or 60% of total costs. Cost estimates are based on mid-1977 prices. Contingencies amount to 19% of the total project costs. ix. An IDA Credit of US$14 million, as proposed, would cover 90% of the foreign exchange costs (US$15.7 million) or a total of 59% of project costs net of taxes and duties. The IDA Credit and an FAC grant of US$5.1 million equivalent, together with Government's contribution of the remaining costs, would be deployed as follows: (a) CFAF 4,684 million (US$19.2 million) would be given to SOTOCO as a grant to finance project buildings, vehicles, equip- ment for field trials, seed multiplication, ox-drawn cultivation, seeds and sprayers, and to cover the incremental costs of personnel and other operat- ing expenses; (b) CFAF 771 million (US$3.1 million) would be disbursed into a special SOTOCO account at CNCA, and used as a revolving fund for the pro- curement of on-farm inputs; and (c) Government would use CFAF 34 million (US$0.1 million) to create and operate a Project Monitoring and Evaluation Unit. The remaining CFAF 891 million (US$3.6 million) would be unallocated. The special account (item (b) above) would be financed from: (a) Government, IDA, and FAC disbursements for incremental inputs; (b) repayments from farm- ers; and, (c) Government reimbursements to SOTOCO for fertilizer and pesticide subsidies. x. Contracts of US$50,000 or more for the procurement of vehicles and equipment, including road building machinery (which total about US$5.7 million), and fertilizers and insecticides (about US$12.7 million, of which incremental cost of US$3.7 million would be financed under the project), would be made through international competitive bidding in accordance with IDA guidelines. Contracts of less than US$50,000 equivalent would be awarded according to local procedures acceptable to IDA (these are esti- mated to amount to US$0.3 million). It is estimated that about US$18.0 million would be financed under ICB, including US$9.0 million recurrent costs of inputs. Contracts with a total value of US$3.1 million, for build- ings scattered over an area too large to attract international competition, would be awarded on the basis of competitive bidding advertised locally, in accordance with local procedures which are acceptable to the Bank. Con- struction and maintenance of feeder roads (about US$3.5 million), for which no appropriate domestic contractors exist, would be carried out under force account by SOTOCO, which is being equipped for this purpose. The remaining costs, for expatriate staff, local personnel, and other operating costs. would amount to US$9.7 million. - iv - xi. The proceeds of the IDA Credit are expected to be disbursed against costs incurred over a four-and-a-half-year period. The FAC grant would cover five years, and would include start-up costs, primarily for salaries of key personnel and operating expenditure beginning in January 1977 involving dis- bursements estimated at CFAF 100 million (US$0.4 million). The IDA Credit and FAC grant would cover 73% of total project costs (IDA 54%, FAC 19%) and Government would finance the remaining 27%. The IDA Credit, applied to costs incurred after Credit signature, would be disbursed to cover 56% of the expenditure for: (a) buildings, furniture, vehicles and equipment for road building, ox-drawn demonstration equipment, field trials, research and training (US$4.2 million); (b) incremental staff salaries and operating costs including costs of the feeder roads unit (US$5.5 million); (c) the project monitoring and evaluation unit (US$0.1 million); and (d) incremental on-farm inputs (US$2.3 million). US$1.9 million would be unallocated. Disbursements against items (a) and (d) would be fully documented. Disbursements against item (b) and (c) would be made on the basis of statements of expenditures certified by SOTOCO and MDR, with the supporting documentation retained by the executing agency and made available for inspection during the course of project supervision missions. Financial and Economic Benefits and Justification xii. The Government cash flow for the project shows a positive balance as early as PY2. All project costs are expected to be recovered by PY4, with a surplus of CFAF 548 million (US$2.2 million). For the following six years, revenues to Government from project incremental production would be expected to steadily increase, from CFAF 711 million (US$2.9 million) in PY5 to CFAF 2,387 million (US$9.7 million) in PY10, including surpluses accruing to OPAT, on the basis of the present farmgate price of CFAF 50/kg for seed cotton. xiii. At full production (after 5 years), the project's incremental cot- ton production would result in yearly foreign exchange earnings amounting to US$17.9 million, and increase up to US$31.5 million equivalent after 10 years. xiv. Present farm incomes are generally low with about 75% of project participants having per capita incomes less than 1/3 of the national average. For many families, project participation would be a significant step forward from an essentially noncash economy to a cash economy, and also would provide increased food production to augment basic nutrient intakes which are pre- sently barely adequate in the Kara and Savanna regions. Participating farm families would increase their incomes progressively over the project period. At full development the net value of crop production per farm would be in- creased by 50% from an average of about CFAF 76,000 (US$310) per annum to CFAF 113,000 (US$460) per annum. Average net cash income would double to CFAF 64,000 (US$260). Total per capita incomes (including livestock and non-farm activities) would increase from an average of about CFAF 20,000 to CFAF 25,000 (US$80 to US$100). -v - xv. Increases in output would be reached by higher yields, achieved through labor intensive techniques using seasonal inputs in a crop rotation; and by inducing additional farmers to grow cotton. Yield and crop areas of mainly four crops -- cotton, maize, groundnuts, and sorghum -- would be influenced by the project. Fertilizers and insecticides are heavily sub- sidized by Government to encourage their use; phasing-out of these subsi- dies should be considered when their use has resulted in better yields and higher income to the farmers. Moreover, an increase in the producer price of cotton is necessary to improve the returns per hectare of cotton, thus to provide adequate incentives to producers; the level of subsidies and the farmgate price would be reviewed annually with the Association. xvi. No difficulties are anticipated in marketing project production. For cotton and groundnuts, an established export market exists and world price prospects appear good. Commercialized cereal output would help sub- stitute for imports, which presently amount to about 20,000 tons per annum. The economic value of project production has been calculated using reference prices from the Bank's Commodities and Export Projections Division. Cotton and groundnuts are assumed exported, maize and sorghum are assumed to sub- stitute for imports. xvii. The project would have a significant impact upon the welfare of a large proportion of Togo's generally less developed rural sector. It would represent a major step towards modern crop husbandry practices and towards production additional to subsistence requirements. The project's economic rate of return is estimated at 32% over the 10 year project life. The rate of return falls to 14% or 17% for a 20% fall in benefits or a 20% rise in costs respectively. If the rate of farmer acceptance of project techniques reaches only 70% of the base estimate, the rate of return would fall to 20%. xviii. Risks. The project would be subject to a variety of risks. These include uncertainties regarding yield responses, quality of management and extension staff, logistic problems involved in transporting inputs and output and most critical -- the willingness of farmers to adopt project practices. However, such risks have been reduced by reinforcing SOTOCO's management and extension services, and training field staff, and would be further re- duced by a yearly review of the farmgate price of cotton to ensure an ade- quate return to the grower. Recommendation xix. With the major assurances and conditions outlined in Chapter IX, the proposed project is suitable for an IDA Credit of US$14.0 million.  TOGO APPRAISAL OF A RURAL DEVELOPMENT PROJECT IN COTTON AREAS I. Introduction 1.01 The Government of Togo has asked for IDA's assistance in financing the development of agriculture in cotton growing areas. The prime objective would be to improve and extend production of cotton and food crops. The proposed project was identified by an RMWA mission in October 1975. The feasibility study was carried out in November-December 1975 by the French CFDT with participation of and financing by FAC. An appraisal mission com- prising Messrs. R. Simsolo and 0. Honisch (IDA), and T. Vollrath (Consultant), visited Togo from October 11 to November 5, 1976; the mission was supported by Messrs. Tessier-Viennois and O'Sullivan of RMWA. This report is based on the mission findings. 1.02 The Bank Group has made two credits to Togo for agricultural devel- opment: Credit 503-TO (US$6.0 million) in 1974 for the improvement of small- holder cocoa and coffee production; and Credit 638-TO (US$9.5 million) in 1976 for a Rural Development Project in the Maritime Region. Both projects are progressing satisfactorily. II. Background A. General 2.01 Togo is located on the Gulf of uinea and bounded by Ghana, Benin and Upper Volta; it covers some 56,000 km . Population is about 2.1 million and growing at about 2.7% per year. Over 1960-73, Togo experienced one of the highest growth rates in per capita income in Africa, averaging more than 4% per year. The sustained growth in Togo's economy through 1970 was largely due to a vigorous expansion of external commerce spurred by favorable market conditions for two of the country's principal exports, cocoa and cof- fee, and by continued development of Togo's position as an important regional commercial entrepot. In the early 1970's, economic growth slowed down. Adverse weather conditions, particularly in the period 1971-73, affected agricultural production; a sizeable reduction in border trade coupled with a reversal of market conditions for Togo's main exports led to a deteriora- tion of the balance of payments. From 1971 to 1975, however, the country's economic development was sustained primarily by the expansion of the indus- trial and mining sector (and to a lesser extent the service sector) with the phosphate boom in 1974 triggering a resurgence in economic growth. It is estimated that per capita income reached US$290 in 1975, although rural incomes average less than 1/3 of that amount. Togo's longer-term outlook is favorable with prospects for GDP growth during the next decade of about 6% per year, based on further diversification of the economy and exploitation of natural resources, and for further improvement in income distribution and regional development. -2- 2.02 Agriculture remains the most important sector of the Togolese eco- nomy, employing about 75% of the active population. It accounts for about 30% of both GDP and export earnings. During the first plan (1966-70) agri- cultural production in real terms increased by an estimated 3-4% per year. Over the second plan period (1971-75), the growth rate dropped to less than 1% per year. Growth in the earlier period was triggered primarily by export crops, and it was the decline in production of these crops that was respon- sible for the subsequent slowdown. Marketed production of cocoa decreased by about a third during the period, coffee and palm kernels were down by about 50% and groundnuts by over 90%. Estimates of food crop production, which accounts for about 75% of total agricultural production, are partic- ularly weak. Changes in the data base and the effect of the drought in the early seventies make comparisons with earlier periods difficult, but it appears that total food production has not increased substantially since the mid-1960's. During periods of drought in the early 1970's, increases in food imports were necessary to remedy shortfalls in domestic production. 2.03 Cotton production ran somewhat counter to the general trend for export crops. Total production averaged between 9,000-10,000 tons per year between 1959 and 1967, virtually all of which was an unimproved, low-yielding Gossypium barbadense. Then, in 1967, a major campaign was mounted to shift production to high-yielding Gossypium hirsutum. The campaign was very suc- cessful in discouraging G. barbadense cultivation, and its production dropped to about 3,900 tons in the following year. However, the supporting services were not sufficient to ensure replacement of all the lost production of the lower yielding type with G. hirsutum, and total production for 1968 fell to about 5,300 tons. Declines in barbadense production exceeded increases in G. hirsutum again in 1969 as total production fell further to about 5,000 tons. Thereafter, G. hirsutum production continued to increase (with G. barbadense production gradually stabilizing at about 1,000 tons per year), and total production reached a peak of some 10,800 tons in 1974. Due to the indirect effects of the late first season rains (which reduced first season food crop production, thus requiring some replacement of cotton by food crops in the second season) and delays in the reception and distribution of inputs, 1975 production fell slightly to about 9,800 tons. B. Regional Characteristics 2.04 The northernmost Savanna region is characterized by an irregular and short-duration rain;all pattern (1,100 mm/year). The overall population den- sity is about 30/km , but while the Oti Valley is virtually empty becausq of onchocerciasis, other parts of the region are overpopulated (up to 90/km ). Principal crops are millet/sorghum, groundnuts, and recently, rice; the area has moderate prospects for livestock development. 2.05 The Kara region, a mountainous region, has adequate rainfall (1,400 mm/year) but low agricultural potential due to overpopulation and he resultant depletion of sol1 fertility. Population density averages 53/km but reaches almost 300/km in some areas, while about one fourth of the region is unpopulated due to onchocerciasis. Migration to the south, both -3- seasonal (about 20% of the adult male population) and permanent, is already significant and will have to continue if the problems of overpopulation in the region are to be solved. 2.06 2 The Central region is the least populated region with only about 19/km . Precipitation, which averages about 1,300 mm in a single season, and generally adequate soils can support crops such as cotton, groundnuts, yams, maize, and pulses. However, the absence of an easily accessible aquifer to supply drinking water is a major constraint to settlement and agricultural development. 2.07 The Plateau region, with average rainfall of 1,200-1,600 mm/ ear (bi-modal), generally good soils and population density of about 30 km , has the best agricultural potential. Cocoa and coffee dominate the wetter, mountainous area to the west, while the eastern part of the region is suited for integrated cotton/food crop development and intensive maize cultivation. 2.08 The Maritime Region shares some of the characteristics of each of the other regions. Rainfall, spread over two seasons, ranges from about 700- 900 mm/year near the coast to 1,000-1,200 mm/year in the north. Development of the northern third of the region is hindered by the scarcity of drinking water and the presence of onchocerciasis, while the southeast suffers from 2 depleted soil fertility due to overpopulation with densities re2ching 200/km bringing the regional average rural population density to 90/km , the highest in the country. Principal crops are maize, cassava, pulses, and groundnuts, with cotton in the north. C. The Institutional Framework 2.09 Responsibility for the Agricultural Sector is shared by two min- istries which replaced the Ministry of Rural Economy in early 1975. The Ministry of Rural Development (MDR) was to be essentially concerned with policy formulation and program coordination of production activities, and includes directorates for agricultural research; for agricultural develop- ment, cooperatives and credit; for livestock; and for training. The Ministry of Rural Improvement (MAR) was to be concerned primarily with infrastructure development and support services and includes directorates for rural engi- neering, pedology, plant protection, veterinary services, police of forestry and fisheries, and produce inspection. The rural planning unit, which was created within the Ministry of Rural Economy in 1973 to improve capability for project preparation, has been transferred to the Ministry of Planning, leaving no organized structure within the operating ministries to review the projects and programs proposed by the various agencies for which they are responsible. As a first step toward filling this gap, a monitoring and evaluation unit has been created in MDR under the Maritime Region Project (Credit 638-TO), and will be expanded under the proposed project (para 4.08). 2.10 The execution of development projects in the sector is generally entrusted to autonomous public corporations which are either regional or product oriented. The five SORADs (Societes Regionales d'Amenagement et de Developpement) were established in 1966-67 with responsibility for all devel- opment activities within their region, including extension services, rural engineering, input supplies, credit distribution, and marketing. However, they suffered from a lack of clearly defined projects and programs and from government's requirement that they attempt to be self-financing primarily through commercial activities - even though their main activities (extension and training) are of a type that are normally financed from Government bud- gets. In order to focus more on production activities, several corporations were established to deal with the problems of specific export crops, such as SONAPH for oil palm, SRCC for cocoa and coffee, TOGOFRUIT for fruits and SOTOCO for cotton (para 4.01). Their responsibilities range from the supply of inputs and planting materials and the provision of extension services to primary marketing and processing. In many instances, duplication of extension efforts has resulted from the activities of the specialized agencies and the SORADS. Government is now considering the regrouping of all extension activ- ities under a unified service, organized along regional lines, attached to the MDR. Technical support, training, marketing and processing for specific crops would still be supplied by the specialized agencies (already reporting to MDR). The recent recommendation to formalize the SORADs' responsibility for food crops and to transfer these agencies from MAR to MDR would seem to be positive steps in this direction. The MAR is expected to concentrate on rural engineering and infrastructure activities. 2.11 Agricultural credit is the responsibility of the National Bank for Agricultural Credit, CNCA, which has channelled most of its credits to far- mers through the specialized corporations or the SORADs. CNCA has begun to implement organizational and administrative reforms prepared under IDA Credit 503-TO, which improved operations considerably, and stopped non-agricultural lending. Direct arrangements with farmer groups, being successfully tested under the cocoa-coffee project (Credit 503-TO) and encouraged under the Mari- time Region Project (Credit 638-TO), are expected to improve loan recovery. 2.12 The Ministry of Trade supervises the two marketing bodies: OPAT, responsible for coffee, cocoa, cotton, and palm kernels; and TOGOGRAIN, for food crops. OPAT's producer price stabilization program for export crops allowed sizeable profit margins (Annex 11, Table 3) which have been used to finance general development, but only some 6% has been reinvested in agriculture. TOGOGRAIN intends to play a stabilizing role for food crops by timely interventions in the market; it has built six silos with a total capacity of 7,000 tons but, due to poor crops during 1975 and 1976, its purchases have been limited and it has not yet had much impact on the market. 2.13 Agricultural research is carried out by French commodity-oriented institutes such as IRAT for food crops, IRCT for fiber crops, IFCC for cocoa and coffee and IRHO for oil crops. Soil studies, classification, mapping and analytical work are done by ORSTOM. Government recently created a mul- tidisciplinary research institute, Institut Polyvalent de Recherches (IPR), which should eventually become responsible for overall research coordination, basic research, and laboratory services. D. Sectoral Objectives and Strategies 2.14 The third development plan (1976-80) has several major objectives. For industrial crops, Government wishes to revitalize traditional export crops, and to diversify into new products. A major program for coffee and cocoa, which account for about 90% of agricultural exports, was initiated in 1974 with IDA assistance (Credit 503-TO) and should begin yielding results by the end of the decade. A five-year program for increased cotton and food- crop production is the subject of this report. Other possibilities, includ- ing oil palm, sugar cane, tobacco and cashew nuts, are being studied by Gov- ernment. For food supply in general, Government plans to reduce imports and reach self-sufficiency. This objective however could only be obtained with an effective marketing system and an adequate extension effort. The following shifts in production are expected: increases of traditional food grains, such as maize, millet and sorghum; decreases of yams and cassava (because of changes in urban demand patterns); increases of pulses and groundnuts; and a doubling of rice production. Expansion of cropped areas is expected to come primarily through double-cropping, intercropping, or decreasing fallow. In addition, substantial efforts will have to be made to bring new land into production. Some of this land will be found in onchocerciasis-freed areas; preparation of projects for these areas is supported under the ongoing IDA- financed Maritime Region project. As a means of expanding the total culti- vated area, Government has also embarked on a mechanization program with the purchase of agricultural tractors and implements (400 units). However, given Togo's current stage of agricultural development and average farm size, such a program should be tested against alternative methods of selective mechaniza- tion, such as the use of power tillers under the Maritime Region Rural Devel- opment Project, and animal traction as proposed in this report. E. Input Pricing Policy 2.15 An important element of Government's strategy for improving agri- cultural production is the encouragement of the use of modern inputs, on both food and cash crops, by means of subsidies. Farmers are currently charged only about 50% of the value of insecticides and pay only CFAF 15 (US$0.06) per kilogram of fertilizer, or about 25% of total cost. This policy is based on the assumption that, because of the Togolese farmers' current perception of risk, low prices are required to induce farmers to adopt these modern inputs which are necessary for the improvement of yields and land use. The use of modern inputs is currently concentrated on cash crops, with for instance less than 10% of the cultivated areas being fertilized. Out of 6,450 tons of fertilizer imported in 1976, some 2,200 tons were for cotton and another 1,700 tons for perennial crops (coffee and cocoa), while vir- tually all insecticides were used on either cotton or cocoa. This concen- tration is likely to increase as input requirements for cotton alone would more than triple in the next five years under the proposed project. The costs of input subsidies for these crops are more than compensated by the high tax- ation implicit in the setting of producer prices well below world market prices. For example, the actual farmgate price for cotton in 1976/77 was CFAF 50/&g. Government revenues, in the form of export taxes and OPAT surplus, -6- were expected to total CFAF 95/kg (Annex 2, Table 3), implying a tax of 66% on seed cotton at the farmgate. Taking into consideration the cost of sub- sidies borne by Government, this surplus is reduced to CFAF 80/kg, or a 55% taxation. As one of the main reasons the farmgate price has been kept at such a level, Government has cited its wish that cash crops not become overly competitive with food crops, of which the country is deficient. Moreover, Government is bearing the full cost of extension services. 2.16 Togo's policy is based on an "infant industry" argument for promot- ing modern agriculture through subsidization of inputs. This argument has been frequently adopted in West Africa, and since it has more often than not attained its objectives, there is some justification to retain it in this case. Potential long-run problems include: (a) possible over-utilization of the subsidized inputs; (b) logistic and financial burden as the volumes increase; and (c) because of the difficulty of administering separate pricing policies, the cross-subsidization of inputs for food crops (from which the Government derives no revenue) by cash crops, although this effect could possibly be justified on income distribution grounds. However, in view of the current level of utilization, these problems must be considered minor, and Government agrees with IDA that these subsidies should be removed at an appropriate time, when farmers reach an advanced stage of using modern cul- tural methods and yields increase sufficiently to cover the increased costs of inputs. An assurance was obtained that the dialogue between IDA and the Government on the matter of subsidies, which began during the preparation of the Maritime Region Rural Development Project, would be continued on an annual basis. In order to establish the basis for the yearly consultation on both producer and on-farm input prices, the Government and the Association have agreed on the need for a study of the pricing policy. An agriculture sector mission is scheduled for the spring of 1978. III. THE PROJECT A. The Project Area 3.01 The project would be carried out in the areas with cotton-growing potential in the Savanna, Kara, Central and Plateau regions (paras 2.04 to 2.07 and Map No. 12608). These areas, at an altitude of 200-500 m, are ecologically well suited for cotton and food crop production. In the Mari- time Region, the relatively small area with cotton potential is being cov- ered by the Rural Development Project financed under Credit 638-TO. 3.02 There are some 140,000 farm families in the project area, cultiva- ting about 278,000 ha with an average farm size of close to 2 ha. The average farm family has about eight people, 45% of whom are active. Cultivation is done mainly by hand; less than 1,500 farms use oxen, and tractor cultivation is negligible. Cotton is currently grown by over 30,000 farmers, but probably 10,000 or more still plant the low-yielding type Gossypium barbadense, mostly intercropped with tubers. The high-yielding Gossypium hirsutum, planted in pure stands, has been successfully introduced in rotation with food crops. The average cotton area per farm is 0.7 ha in the Plateau region, 0.6 ha in the Central, 0.3 ha in the Kara, and 0.5 ha in the Savanna. As for cattle, - 7 - there are an estimated 200,000 head in the project area, about 80% owned by settled farmers, the remainder by Peuhls who are traditional herders. The principal breed is the trypano-tolerant Borgou, which in the north is cross- bred with the Zebu. The animals are relatively small but can be used for traction. 3.03 Land in the Plateau and Central regions is owned by the local com- munity, with individual farmers receiving usufruct rights from village chiefs. In the Kara and Savanna regions, the tenure system is based on extended family ownership and inheritance within the family. Leasing of land to migrant farm- ers is possible in all areas. Generally land tenure is not a problem. B. Project Description 3.04 The proposed project would be carried out over five years (including the FAC-financed start-up period) and would endeavor to improve living con- ditions in the area on a broad scale. Basic infrastructure would be improved, both for transport and the supply of drinking water, the latter under a FED-financed project. Traditional farming would be improved by introducing better cultivation methods, including use of oxen, and promoting higher yields through the integration of food crops with cotton into a simple, well-balanced rotation. 3.05 The project would be executed by a Government agency, SOTOCO (Societe Togolaise du Coton), and would reach some 53,000 farm families -- over 400,000 people -- representing about 36% of the rural population in the project area in PY 5. The main project features would be: (a) strengthening SOTOCO, by providing: (i) buildings and equipment for SOTOCO headquarters and field offices, storage facilities, housing, vehicles, and equipment; and (ii) additional management and field staff, training and operating expenses; (b) providing ox-cultivation training including demonstration equipment and credit to farmers for acquisition of ox- drawn equipment; (c) establishing a seed-multiplication system including equip- ment and vehicles and carrying-out adaptive field trials; (d) supporting project monitoring and evaluation; (e) building and improving about 700 km of feeder roads and providing for their maintenance; and (f) providing incremental on-farm inputs on seasonal credit to expand improved cotton planting by 20,000 ha; improved maize by 13,700 ha; improved sorghum by 7,500 ha; and improved groundnuts by 2,700 ha. -8- The wells required in the.project area would be drilled as priority works under an ongoing FED Village Wells Project. C. Detailed Features Cotton and Food Crop Development 3.06 The project would provide for the adoption of improved cotton grow- ing techniques which have proved effective under an earlier SOTOCO program. These techniques include proper soil preparation, timely planting of improved seed, fertilization, pest and weed control and, selectively, ox-drawn cultiva- tion. In 1975, over 18,000 ha were planted to the improved G. hirsutum, but about 7,000 ha of these were not treated with fertilizer and pesticides be- cause of late planting and late arrival of inputs. For purposes of project analysis, the improved cotton area is taken as the mean over 1974-76 -- 12,000 ha. In addition, about 13,000 ha were planted to the low-producing G. barbadense (mostly intercropped, traditional farming with yields below 100 kg seed cotton per ha), offering a good potential for gradual replacement with G. hirsutum. Improved cotton planting would be expected to increase from 12,000 ha to 32,000 ha, with production from improved plantings to increase .from 7,500 to 28,900 t. 3.07 The recommended variety, Bou (L 299-10), has a yield potential of over 2,000 kg/ha of seed cotton, a ginning outturn of over 40%, and very satisfactory fibre characteristics. Breeder and foundation seed would be supplied by IRCT (para 2.13) with seed for general release multiplied by selected growers in the Savanna region under SOTOCO's supervision. A well- tested fertilizer compound, NPKSB, would be applied at the rate of 150 kg/ha in the Plateau region and 200 kg/ha elsewhere. In addition, urea (50 kg/ha) would be applied to improve crop nutrition in the most advanced development stage. Pest control would be improved over the first two years of the pro- ject, through provision of battery-operated ULV sprayers. Suitable insec- ticides would be provided (15-20 1/ha, in six-eight treatments). 3.08 The project would provide technical assistance and inputs to help farmers raise the productivity of important food crops - maize, sorghum, groundnuts. Technical assistance would aim at persuading farmers to adopt a farm system in which food crops, by following cotton in rotation, would benefit from the residual effect of fertilizers applied to cotton. Extension efforts would aim at proper soil preparation, optimal timing and method of planting, correct spacing and plant population, weed control, harvesting and storage. Selected and tested varieties of improved food crop seeds would be produced in seed multiplication centers. The maize variety initially would be the hybrid NH 1, developed in Benin, which has a yield potential of up to 3.5 t/ha, and has been readily accepted by the Togolese population. With a growing period of 110 days, this variety is well suited to precede cotton in the bimodal rainfall areas. Breeder's seed would be produced by IRAT (para 2.13) multiplied at SOTOCO seed centers, and the first generation (FA) supplied to advanced growers starting with PY 3. Intensive maize variety screening is going on at all IRAT stations in maize areas, and several varieties are showing good prospects (Annex 4). - 9 - 3.09 Through testing at IRAT field stations over the past years, several varieties of sorghum have been identified that are suitable for the project area, with yield potential of around 3-4 t/ha. Breeder's seed would again be produced at IRAT stations and multiplied and distributed by SOTOCO. Variety screening continues. 3.10 Following good progress in groundnut research in recent years, at least one high-yielding variety is immediately available (RMP 12), a long season variety yielding over 2.5 t/ha. Trials with shorter season varieties are going on and in 1979-80 a greater selection should be available. Ground- nut seed from IRAT stations would be reproduced by the SOTOCO multiplication center in the Savanna region. First seed for general release would be re- quired in PY 3. Groundnuts in the advanced development stage would be fertilized with additional phosphorus. 3.11 Ox-cultivation, currently used only in the northernmost Savanna region, would be further encouraged under the project through operation of 23 SOTOCO ox demonstration teams in key areas of all regions, coupled with training on farmers' fields. The objective would be to promote a more rapid introduction of oxen. In the Savanna region, where farmers can select oxen from their own herds, medium-term credit for the purchase of ox-drawn equip- ment would be made available starting with PY 3; it is anticipated that by PY5 some 350 ox teams would be cultivating about 2,000 ha of land. Seed Multiplication and Field Trials 3.12 Breeder and foundation seed would be produced by IRCT and IRAT on their field stations. For this purpose, a contract agreement would be signed by the two institutes and SOTOCO. The multiplication of registered and certified seed would be the responsibility of SOTOCO. For this purpose Government agreed to make available, by September 30, 1977, three "Centres Polyvalents" to SOTOCO with land, buildings, and stores in suitable locations which would be managed by SOTOCO and supplied with necessary machinery and equipment by the project. In these centres seed would be graded, treated, bagged and labelled, and then released to farmers. The project would finance seven IRAT and seven IRCT field stations that would essentially do regional variety screening, basic crop nutrition, plant population, spacing and crop protection trials. Assurances have been obtained that annual work programs would be submitted to IDA for review. These field stations would act on one hand as points of release for demonstration items to be disseminated by SOTOCO and on the other hand as points of reception for research problems fed back from rural areas through SOTOCO extension agents. Under SOTOCO's administra- tion, field trials would be carried out on farmers' fields, with the dual purpose of verifying IRCT and IRAT research results and serving as demonstra- tions. All project financed and supported field trial activities would be carried out in close consultation with IITA - Ibadan. Arrangements have been concluded for IITA personnel to visit the project twice a year to give support to the trials program. Project Phasing 3.13 Farmers would move through three development stages. Upon entering the project, farmers would progress into Stage I, which would consist of use - 10 - of improved cotton seeds, good management of cotton, including proper pest control, but no improvement for food crops. Stage II would include in addi- tion to measures taken at Stage I appropriate fertilizer applications to cotton, with traditional food crops planted at recommended spacing following cotton, thus receiving residual benefits from cotton fertilization. To give farmers enough time to master the labor-consuming combination of fertilizer application and pest control and to safeguard against possible delays in adoption rates of new techniques, most farmers would be expected to remain in Stage II for two years; and only small yield increases would be anticipated during this period. In Stage III, application of nitrogen fertilizer and improved food crop varieties would be introduced. An average farmer would reach Stage III in cotton after four years and full application of recommended food crop techniques after five years of project participation. The number of farmers in improved cotton production stages is expected to be as follows: No. of farmers Stage I Ii III Total Incremental PY 0 18,800 500 - 19,300 - PY 1 9,100 13,600 400 23,100 3,800 PY 2 6,400 22,000 1,100 29,500 10,200 PY 3 6,300 15,400 14,000 35,700 16,400 PY 4 8,700 12,600 23,100 44,400 25,100 PY 5 8,900 14,900 29,500 53,300 34,000 Infrastructure 3.14 Roads. The general lack of feeder roads and the poor maintenance of existing ones in the project area hinder crop marketing, input delivery, and the development of less populated areas. A feeder road program prepared by SOTOCO (which would be essential for the project), covering both equipment and work, for improvement of about 700 km and the maintenance of these and other roads during the project period (Annex 8) is included in the project. In view of the absence of suitable domestic contractors, feeder road construction would be carried out by force account, as is generally the case in Togo. Assurances have been obtained that SOTOCO would submit to the Association for review, the annual work program by the Association and that the roads improved under this agreement would be adequately maintained after investment by Government. 3.15 The fact that SOTOCO, an agricultural development agency, would have to construct the required feeder roads points to the absence of a Governmental agency with overall responsibility for feeder road construction and mainte- nance. The result is a proliferation of various feeder road programs carried out by different bodies. The Association has recently appraised a separate feeder roads project focussing mostly on organization and maintenance with the final goal of establishing a centralized efficient agency in this sector. When this is achieved, SOTOCO's feeder roads department, with its equipment - 11 - and staff, would be transferred to it, with the provision that feeder roads in the project area would be built within the agency's overall program. 3.16 Wells. In the project area, water is usually available to vil- lages during the wet season (March - October), from shallow traditional wells and pOnded water, and of an unhealthy quality. During the dry season, as wells and ponds dry out, considerable hardship is endured by the rural population. Concurrent with the proposed IDA project, FED intends to fi- nance a program of village well construction which will cover the priority needs of the project area. Improvement of village water supplies is not, therefore, included in the present project. Assurances were obtained from Government that about 64 wells needed for the project area will be built as a first priority under the FED-financed Village Wells Program. 3.17 Storage. To ensure safe storage and efficient distribution of farm inputl, the project would finance the construction of 680 storage sheds (each 20 m in main villages, complemented by 14 stores at the sector level (each 200 m , with 40 m office space). In addition 2there would be four regi nal stores and office complexes measuring 400 m each (of which 80 m offices). All these facilities would be owned and operated by SOTOCO. 3.18 Ginning. The present ginning capacity of three small gins in the Plateau region in the south of the project area is in the order of 11,000 t seed cotton per season. Studies have been completed for the extension of one of these ginneries (Notse) from 3,000 t to 12,000 t, planned for 1979, and for an additional gin with the capacity of 12,000 t per season in the north (Lama Kara), which should be completed in 1978. By PY 5, total capacity should attain 32,000 t as compared to the expected production of 30,000 t and assurances have been obtained that this expansion program would be carried out by Government. The gins at Lama Kara and Notse would be designed for the installation of an additional ginning capacity of 7,000 t seed cotton each per season, should this be required. The extension of ginning capacity would be financed by the Government, with some outside financing by FAC, mainly for studies and tech- nical assistance, and would be satisfactory for project purposes (Annex 7). IV. ORGANIZATION AND MANAGEMENT 4.01 SOTOCO, the national cotton development agency, has been in opera- tion since March 1974 and has two main fields of activity: extension work including technical support and the primary marketing of cotton. Extension work covers cotton cultivation and the growing of food crops associated with cotton, and includes the preparation and multiplication of improved seeds and propagation of modern cultural techniques. SOTOCO also procures fertilizers and pesticides and distributes them to farmers on seasonal credit. The statutes of SOTOCO restrict its extension work activities to cotton only, although Government has de facto authorized it to extend such activities to food-crops cultivated in rotation with cotton. Assurances were obtained - 12 - during negotiations that the original SOTOCO statutes would be amended to have its responsibilities extended to foodcrop cultivation in cotton areas. Primary marketing of cotton is carried out either directly or through existing cooperatives, and includes buying at village and market level, transport, handling, and delivery to the gins; SOTOCO is not however at present involved in ginning but it would be the operator of the new Lama Kara gin (para 4.15). 4.02 Organization. Under the project, there would be four departments: (a) Technical, responsible for training, production planning, extension work, and all field operations; (b) Commercial, responsible for purchasing seed cotton, transport, and deliveries to the ginneries; (c) Financial, responsible for accounting and procurement (including inputs), financial analyses, and communications with banks and OPAT; and, (d) Civil Engineering, responsible for supervising feeder road construction and maintenance, including prepara- tion of technical specifications. It would also supervise the Mechanical Workshop. Senior management would consist of the General Manager, his deputy (who would be mainly responsible for administration), Technical, Commercial, and Financial Managers. 4.03 Staffing. An experienced Togolese has been appointed to the post of General Manager; the Technical Manager, supplied by CFDT and acceptable to IDA, has been assigned for three years. An expatriate Financial Manager and a Togolese Commercial Manager and Deputy General Manager are yet to be recruited. Other positions to be filled are those of Civil Engineer, Chief Mechanic, Head of the Feeder Roads Unit and Senior Training Officer and his Deputy, all of whom would be internationally recruited in view of the present shortage of these technical skills in Togo. All these senior positions would be filled by December 31, 1977 by candidates acceptable to IDA; moreover, all new recruitment for these positions would be among candidates acceptable to the Association. Assurances to that effect have been obtained during nego- tiations. 4.04 Field Services. The project area would be divided into four regions corresponding to the administrative division of the country. Each region would have a Regional Manager, residing in the regional capital. The Plateau region would also have a subregion, headed by an Assistant Regional Manager at Notse. For the first three years of the project, two Regional Managers would be seconded from CFDT. They are already in their posts and acceptable to IDA. The two other posts are filled by competent Togolese; the head of the Notse subregion is still to be recruited. The regions would continue to be divided into a total of 14 sectors. Subsectors and extension zones would increase during project implementation, from 60 to 65 and 465 to 725 respec- tively. Additional Extension Agents would be recruited from school leavers in the rural areas and trained by SOTOCO, and candidates for Subsector Chiefs would be selected among the best Extension Agents. In PY 5, there would be on average one Extension Agent (EA) for 75 farmers. These farmers would be expected to grow 45 ha of cotton and a corresponding area of food crops in rotation with cotton. 4.05 There would be an informal organization of farmers into groups. The initial purpose would be planting in blocks to facilitate field operations - 13 - such as crop protection and ox-drawn cultivation. Later, these groups would be expected to progress into grower associations, which would carry collec- tive responsibility for ordering inputs and repayment of credit and which would own and operate equipment, such as maize shellers, that would be too expensive to be purchased by individuals. The project would provide training to association leaders and reinforce the staff of several cooperatives already existing near Notse in the Plateau Region. 4.06 Training of extension staff would be essential to achieve project objectives. The SOTOCO training section, already reasonably well established, would be further reinforced by manpower and equipment. The section would be headed by a senior training officer (STO), and a deputy who would be mainly responsible for training cooperative staff in Notse. In addition, there would be four regional training officers. Training would be basically divided into: (a) special training sessions; and (b) continuous on-the-job training of EAs in the field. The STO would establish close contacts with IRCT, IRAT, and IITA-Ibadan. 4.07 A mechanical workshop would be set up in Atakpame to maintain and repair SOTOCO's vehicles. It would also carry out maintenance and small- repair jobs for the road-building equipment procured for the Feeder Road Program. This unit would be headed by a Civil Engineer and staffed by local mechanics under the supervision of an internationally recruited Chief Mechanic. 4.08 The project would be monitored and evaluated by the Projects Moni- toring and Evaluation Unit (PMEU), of the MRD which already has monitoring responsibilities for the IDA-financed Maritime Region Rural Development Project. It would be headed by a senior officer of this ministry and its duties expanded by September 30, 1977, to cover this project. An assurance to that effect has been obtained. The PMEU would operate in close contact with Project Management and would be mainly responsible for identifying prob- lems of project implementation and carrying out field surveys and data col- lection. It would also: (a) review quarterly and annual progress reports prepared by the project management; and (b) assist in completing project reporting forms. To aid project monitoring and evaluation, IITA-Ibadan, through its Farming Systems Program, would have a consultancy role encom- passing advice on organization, the establishment of objectives, field work design, and data processing. Draft terms of reference for the PMEU are at Annex 15. 4.09 Inputs. SOTOCO supplies farmers with fertilizers and insecticides at the subsidized price decreed by Government. The cost of these supplies is collected during cotton marketing, at the end of the season. Under the project, these inputs would be bought yearly, under ICB procedures. Since inputs for PY 1 are already in stock, the cost of incremental PY 2 require- ments, at the import price, would be financed under the project, as would the additional quantities required for each succeeding year (Table 13, Annex 9). Procurement of fertilizers and insecticides would be financed via a special account opened in SOTOCO's name at the CNCA for this purpose. Government would make a first deposit of CFAF 300 million (US$1.2 million) - 14 - to provide operating capital for this special account, and would immediately reimburse to the account the subsidies on inputs sold to farmers in PY 1. These payments would enable SOTOCO to immediately order PY 2 inputs. After distribution of these inputs to farmers, Government would reimburse into this special account, by September 30 of each year, the value of the sub- sidy on inputs distributed by SOTOCO between February and May of that year. Assurances have been obtained from Government to that effect. SOTOCO would collect the balance from farmers at market time and deposit it to the same account. This special account would therefore be provided with adequate funds to enable SOTOCO to place its orders for inputs each year in advance. Table 14 of Annex 9 shows the operation of this special account during the project's life. When Government decides to reduce its subsidies, the related payments to that account would be reduced and the amounts collected from farm- ers would increase accordingly. 4.10 Marketing credit is arranged by Government through an account of CNCA. At the beginning of the marketing season, SOTOCO is allowed to draw from this account to pay for seed cotton bought. When the product is deliv- ered to the ginneries, SOTOCO presents an invoice to OPAT, which pays it into the CNCA account. CNCA charges SOTOCO with interest during this period. Thirty days is the average delay between SOTOCO drawing funds and OPAT repay- ing those funds into the account, and the OPAT bareme includes reimbursement to SOTOCO for financial charges calculated on those 30 days. However, during the 1975/76 season, OPAT repayments were late, and SOTOCO had to pay financial charges over and above the total amount reimbursed under the bareme. 4.11 Credit for acquiring equipment for ox-drawn cultivation would be granted as from PY 3 to those farmers owning oxen and that have been trained by the demonstration teams of SOTOCO's extension services. The total cost of the demonstration activities would be financed under the project. In view of the limited amounts of credits expected to be granted each year (from CFAF 5 million, US$20,000, increasing to CFAF 19 million, US$77,000, in PY 5), these would be provided by SOTOCO from its operating funds. Such credit would be at 10% interest and a seven-year repayment period. If ox- drawn cultivation develops beyond what is expected under the project, CNCA would make available such credit to farmers under SOTOCO's control, under the same terms. 4.12 Finances. SOTOCO's original equity of CFAF 200 million (US$0.8 million) was invested in fixed assets and operational stocks. Operational expenditures have averaged CFAF 140 million (US$570,000) a year and have been partly financed by FAC (to cover expatriate salaries, research, and a fraction of the extension staff) and by Government. This left an opera- tional deficit of about CFAF 130 million (US$530,000) as of September 30, 1976. Table I of Annex II shows SOTOCO's latest balance sheet and opera- tional accounts. SOTOCO is paid for its marketing operations under a price structure (bareme) which includes the farmgate price plus marketing and transport costs (Annex 2, Table 3). In 1976, SOTOCO's marketing operations, which would be fully covered by the bareme, showed a shortfall of CFAF 18 million (US$73,000), mainly due to: (a) increases in transport costs; and - 15 - (b) OPAT's late repayments, due SOTOCO for cotton collected from the farm- ers, which have caused SOTOCO to incur financial charges over and above those included in the bareme (para 4.10). 4.13 Starting with the 1977/78 campaign, Government would include in the bareme an additional amount for SOTOCO to cover its total expenditures, including incremental project costs, both for marketing and extension activi- ties. This arrangement has been devised to ensure SOTOCO a regular income based on cotton production; it would induce efficient and responsible manage- ment practices, with expenditures being related to income. Government would also make available to SOTOCO, through this procedure or by direct payments, all funds necessary to SOTOCO during project implementation. Table 15 of Annex 9 shows the estimated flow of funds required for each project year. 4.14 To improve SOTOCO's financial status, Government would make available funds to cover SOTOCO's expenses for HQ staff, extension work, field trials, seed multiplication, and training operations during 1977. These payments would amount to CFAF 275 million (US$1.1 million) to SOTOCO: CFAF 110 million (US$450,000) from OPAT, and CFAF 165 million (US$670,000) from the Government budget. Moreover, Government would adjust its claim to CFAF 250 million (US$1 million) shown on SOTOCO's Balance Sheet of September 30, 1976, as due Govern- ment for inputs supplied in previous years. Against this amount, only CFAF 50 million (US$0.2 million) remained to be collected from farmers and can be reimbursed to Government. The balance of CFAF 200 million (US$800,000) would be consolidated into SOTOCO's capital, increasing it to CFAF 400 million (US$6.1 million). Assurances were obtained during negotiations that these financial arrangements would be implemented by Government; the payment of CFAF 275 million (US$1.1 million) to SOTOCO would be a condition of credit effectiveness. 4.15 At present, OPAT pays the two privately owned gins CFAF 8,500 (US$35) per ton of seed cotton ginned. Such payments would be sufficient to cover the total operational expenditures of the new Lama Kara ginnery that is to be operated in 1978 (PY 2) by SOTOCO. The break-even point would be around 9,000 tons of seed cotton and would be expected to be supplied to the gin by PY 4 from three regions, Central, Kara, and Savanna, in the immediate neighborhood. For the first two years of operation, when quantities ginned would be below 9,000 tons, income would be sufficient to cover cash expendi- tures, but depreciation provisions would have to be deficit-financed. By PY 5, the quantity would reach 12,000 tons, or the total capacity of the gin. Assurances were obtained that SOTOCO would keep separate accounts of its ginning operations and that the level of payments from OPAT for ginning cost would be the same as those paid to other gins, presently CFAF 8,500/ton (US$35). Annex 2, Table 2, shows the expected operational cost of the Lama- Kara gin, its expected income from ginning operations, and its amortization account. - 16 - V. COST ESTIMATES AND FINANCIAL ARRANGEMENTS 5.01 Total project costs are detailed in Annex 9 and summarized below: Foreign CFAF million US$ million Exchange Local Foreign Total Local Foreign Total % I. HQ and Field Services Buildings 267 320 587 1.1 1.3 2.4 54 Vehicles and Equipment 238 665 903 1.0 2.7 3.7 73 Salaries 527 327 854 2.2 1.3 3.5 37 Other Operating Costs 1/ 214 210 424 0.9 0.8 1.7 47 1.246 1522 2_768 5.2 6.1 11.3 54 II. Ox-drawn Cultivation 35 2 37 0.1 - 0.1 - III.Field Trials, Seed Multiplication and Training Buildings 7 5 12 - - - Equipment 23 34 57 0.1 0.2 0.3 66 Operating Costs 204 138 342 0.8 0.6 1.4 43 234 177 411 0.9 0.8 1.7 47 IV. Monitoring and Evaluation 16 16 32 0.1 0.1 0.2 50 V. Feeder Roads Program Buildings 9 4 13 0.1 0.1 100 Workshops Equipment 4 8 12 - - - Road Building Equipment 54 153 207 0.2 0.6 0.8 75 Road Construction 214 479 693 0.8 2.0 2.8 71 Salaries 21 28 49 0.1 0.1 0.2 50 302 672 974 1.2 2.7 3.9 69 VI. Incremental On-Farm Inputs Seeds and Sprayers 148 70 218 0.6 0.3 0.9 33 Fertilizers and Insecticides 72 654 726 0.3 2.7 3.0 90 220 724 944 0.9 3.0 3.9 77 TOTAL BASE COSTS 2,053 3,113 5,166 8.4 12.7 21.1 60 Physical Contingencies 121 202 323 0.5 0.8 1.3 62 Price Contingencies 357 534 891 1.4 2.2 3.6 61 TOTAL PROJECT COSTS 2,531 _849 __380 10.2 15.7 26.0 60 1/ Marketing expenditure not included. - 17 - 5.02 Imported vehicles and equipment would be exempted from customs duties and have been excluded from project costs which total CFAF 6,380 mil- lion (US$26.0 million) of which CFAF 3,849 million (US$15.7 million), or 60%, is the estimated foreign cost component. Cost estimates are based on mid-1977 prices, including all identifiable direct taxes amounting to CFAF 583 million (US$2.4 million), or 9% of total costs, and contain the following contingen- cies: (a) physical contingencies of 15% on road construction, 10% on build- ings and road building machinery, and 5% on all other costs, except salaries; and (b) price contingencies compounded as follows: construction costs, 9% each in PY 2 and PY 3, and 8% in PY 4 and PY 5; vehicles and equipment 7-1/2% each in PY 2 and PY 3, and 7% in PY 4 and PY 5; all remaining costs, 7% for each year. Total contingencies amount to 19% of the total project costs or 23% of base line cost estimates. B. Proposed Financing 5.03 IDA and the French Fund for Aid and Cooperation (FAC) would, together with Government, jointly finance the project. FAC has, in the past, helped Government to finance SOTOCO's ongoing operation, by granting funds amounting to CFAF 95 million (US$0.4 million) in 1975 and CFAF 175 million (US$0.7 million) in 1976. In addition, FAC has agreed to grant another CFAF 1,250 million (US$5.1 million) to finance the project proper. A condition of IDA credit effectiveness would be the effectiveness of the grant agreement between FAC and Government for CFAF 1,250 million (US$5.1 million). 5.04 The following table summarizes the proposed financing plan (physi- cal contingencies have been added to base costs): (US$ million) IDA FAC GOVT TOTAL I. HQ and Field Services 6.4 2.3 3.2 11.9 II. Ox-drawn Cultivation ) III. Field Trails, Seed Multipli- ) 1.0 0.4 0.5 1.9 cation and Training ) IV. Evaluation and Monitoring 0.1 - 0.1 0.2 V. Feeder Road Program 2.4 0.9 1.0 4.3 VI. On-farm Inputs 2.2 0.8 1.1 4.1 TOTAL BASE COSTS 12.1 4.4 5.9 22.4 VII. Unallocated 1.9 0.7 1.0 3.6 TOTAL PROJECT COSTS 14.0 5.1 6.9 26.0 Percentage (54) (20) (26) (100) Percentage net of taxes (59) (22) (19) (100) - 18 - 5.05 An IDA Credit of US$14 million, as proposed, would cover 90% of the foreign exchange costs (US$15.7 million) or a total of 59% of project costs net of taxes and duties. The IDA Credit and FAC grant, together with Govern- ment's contribution, would be deployed as follows: (a) CFAF 4,684 million (US$19.2 million) would be given to SOTOCO as a grant to finance project buildings, vehicles, equipment for field trials, seed multiplication, ox- drawn cultivation, seeds and sprayers, and to cover the incremental costs of personnel and other operating expenses; (b) CFAF 771 million (US$3.1 million) would be disbursed into a special SOTOCO account at CNCA, and used as a re- volving fund for the procurement of on-farm inputs; and (c) Government would use CFAF 34 million (US$0.1 million) to strengthen and expand the Project Monitoring and Evaluation Unit presently operating within MDR. The remaining CFAF 891 million (US$3.6 million) would be unallocated. 5.06 The special account (item (b) above) would be financed from: (a) Government, IDA, and FAC disbursements for incremental inputs; (b) repayments from farmers; and, (c) Government reimbursements to SOTOCO for fertilizer and pesticide subsidies (para 4.09). Establishment of the revolving fund with an initial deposit by Government of CFAF 300 million (US$1.2 million) would be a condition of effectiveness (Table 14 of Annex 9 shows the operation of this special account). C. Procurement 5.07 Contracts of US$50,000 or more for the procurement of vehicles and equipment, including road building machinery (totalling about US$5.7 million), and fertilizers and insecticides (about US$12.7 million, of which incremen- tal cost of US$3.7 million would be financed under the project), would be made through international competitive bidding in accordance with IDA guide- lines. Contracts of less than US$50,000 equivalent would be awarded accord- ing to local procedures acceptable to IDA (these are estimated to amount to US$0.3 million). It is estimated that about US$18.0 million would be financed under ICB. Contracts with a total value of US$3.1 million, for buildings scattered over an area too large to attract international competition, would be awarded on the basis of competitive bidding advertised locally, in accordance with local procedures which are acceptable to the Bank. Construc- tion and maintenance of feeder roads (about US$3.5 million), for which no appropriate domestic contractors exist, would be carried out under force account by SOTOCO, which is being equipped for this purpose. The remaining costs, for expatriate staff, local personnel, and other operating costs, would amount to US$9.7 million. D. Disbursements 5.08 The proceeds of the IDA Credit are expected to be disbursed against costs incurred over a four-and-a-half-year period. The FAC grant would cover five years, and would include start-up costs, primarily for salaries of key - 19 - personnel and operating expenditure beginning in January 1977 involving dis- bursements estimated at CFAF 100 million (US$0.4 million). The IDA Credit and FAC grant would cover 73% of total project costs (IDA 54%, FAC 19%) and Government would finance the remaining 27%. The IDA Credit, applied to costs incurred after Credit signature, would be disbursed to cover 56% of expenditure for: (a) buildings, furniture, vehicles and equipment for road building, ox-drawn demonstration equipment, field trials, research and training (US$4.2 million); (b) incremental staff salaries and operating costs including costs of the feeder roads unit (US$5.5 million); (c) the project monitoring and evaluation unit (US$0.1 million); and (d) incremental on-farm inputs (US$2.3 million). US$1.9 million would be unallocated. Disbursements against items (a) and (d) would be fully documented. Disbursements against item (b) and (c) would be made on the basis of statements certified by SOTOCO and NDR, with the support- ing documentation retained by the executing agency and made available for inspection during the course of project supervision missions. A schedule of estimated disbursements is at Annex 13. E. Accounts and Audits 5.09 During negotiations, assurances were obtained that SOTOCO would keep separate accounts for the project, in accordance with consistently maintained and sound accounting practices. These accounts would also show separately (a) the results of SOTOCO's marketing operations (para 4.10); (b) of the ginning operation at the Lama Kara ginnery (para 4.15); (c) Govern- ment's account in SOTOCO's books with regard to its contribution to cover the shortage between (i) SOTOCO's expenditures for its ongoing operation and ex- penditure under the project and (ii) the revenues generated from the payment of a fixed fee on each ton of seed cotton marketed by SOTOCO (para 4.15); and (d) the operation of the special account for input procurement (para 4.09). Assurances were obtained that Government would: (a) cause SOTOCO to appoint independent, qualified auditors acceptable to IDA; (b) submit audited accounts and the auditors' reports thereon to IDA within six months of the end of each financial year; and, (c) ensure that the reports of the auditors would be of such scope and in such detail as IDA may reasonably request. Draft terms of reference on audit requirements are at Annex 14. - 20 - VI. FINANCIAL BENEFITS AND OUTLOOK A. Government Cash Flow 6.01 The Government cash flow for the project (Annex 10, Table 1) shows a positive balance as early as PY 2. All project costs are expected to be recovered by PY 4, with a surplus of CFAF 548 million (US$2.2 million). For the following six years, revenues to government from project operations would be expected to steadily increase, from CFAF 711 million (US$2.9 million) in PY 5 to CFAF 2,398 million (US$9.7 million) in PY 10. All these revenues are calculated on the incremental project production of cotton, and include the surplus accruing to OPAT on cotton marketing. The Cash Flow, over a period of 10 years net of inputs of outside financing, shows a financial rate of return of 13% in constant terms. 6.02 The project's incremental cotton production would bring in yearly foreign exchange earnings amounting to US$17.9 million in current terms by PY 6 (for PY 5 production), and increase up to US$31.5 million in equivalent cur- rent terms by Year 11 after deduction of project costs in foreign exchange. Net foreign exchange income would total about US$176 million equivalent for the 10 year period (Table 4, Annex 10). B. Farmers Benefits 6.03 Participating farm families would increase their incomes progres- sively over a 5 year development period. At full farm development the net value of crop farm production would have increased by 50% from an average of about CFAF 76,000 (US$310) to CFAF 113,000 (US$460) per annum. Average net cash income would double from CFAF 32,000 (US$130) to CFAF 64,000 (US$260). I/ Present farm incomes are generally very low and for many families project participation would induce a significant step forwards from an essentially non-cash economy to a cash economy. Increased food crop production in the Savanna and Kara regions would also provide for an augmentation of basic nutrient intakes which are presently barely adequate (Annex 4, Tables 5 and 6). 6.04 Average net returns from cotton would increase from about CFAF 12,000 (US$50) to CFAF 39,000 (US$160) per ha. Intercrop comparisons are potentially misleading in a rotation system where, for instance, residual effects of fertilizers placed on cotton benefit the following food crops. However, at the present producer price for cotton of CFAF 48/kg, the returns are lower than those for cereals for all regions at all stages on a per man day basis and for all but a few cases in the Plateau and Savanna Region on a per hectare basis. An increase in the producer price is necessary to ensure 1/ Weighted averages. Differences by region are considerable - Annex 4, Table 7. - 21 - comparable returns per hectare for cotton in all regions. At the point of equilibrium on a per hectare basis, the returns per man day would still be higher for cereals in three of the four regions, due primarily to the higher cereal prices there. These higher prices reflect the relative shortages of food in these regions, and can be expected to decline as food production increases (which is expected as a result of this project), bringing the returns per man day closer together. During negotiations Government agreed to review yearly, in consultation with IDA, the farmgate price for seed cotton with the purpose of maintaining adequate producer incentives. VII. YIELDS AND OUTPUTS, MARKETS AND PRICES A. Yields and Output 7.01 Increases in output would be achieved by increases in yields through labor intensive techniques using seasonal inputs in a crop rotation, and by inducing additional farmers to grow cotton. In the main, yields and areas devoted to four crops would be influenced by the project: cotton, maize, groundnuts and sorghum. Participating farmers would be expected to improve their cropping system progressively taking, on the average, about five years to reach full farm development. Further details are contained in Annex 4, Tables 3 to 7. Average yields from traditional practices and at full development are summarized below: Average Yield (kg/ha) Traditional Full Development % Crop Husbandry Crop Husbandry Increase Cotton 570 1060 86 Maize 700 1800 157 Sorghum 500 1300 160 Groundnuts 400 1000 150 7.02 It is considered that, with present crop husbandry practices, farm output in the areas covered by the project has reached a ceiling. Production from these areas appears to have remained stagnant for a number of years and without the provision of project extension, credit and input distribution ser- vices, no increases in production can be expected. In calculating incremental output it has therefore been assumed that, without the project, production would remain at present levels. However, farmers starting to grow cotton for the first time are expected to reduce their cereal and groundnut areas slightly and this has been taken into account in the projections of crop area and production levels (Annex 4, Tables 8 to 12). Summary details are provided below; - 22 - Incremental Production (Tons) Without Project With Project With Project (All Years) PY 5 PY 10 PY 5 PY 10 Areas (Ha) Cotton 11,700 31,700 31,700 - - Maize 27,900 23,400 23,400 - - Sorghum 38,000 36,000 36,000 - - Groundnuts 4,600 4,200 4,200 - - Productions (Tons) Cotton 6,700 29,200 33,600 22,500 26,900 Maize 19,500 25,500 32,800 6,000 13,300 Sorghum 19,000 21,400 24,500 2,400 5,500 Groundnuts 1,800 3,300 4,200 1,500 2,400 B. Markets and Prices 7.03 No difficulties are anticipated in marketing project production. For cotton and groundnuts, an established export market exists and world price prospects appear good. Commercialized cereal output would help sub- stitute for imports which presently amount to about 20,000 tons per annum - wheat, rice and maize - and can be expected to increase without the project. The economic values of project production have been calculated using refer- ence prices from the Bank's Commodities and Export Projections Division. Cotton and groundnuts are assumed exported, maize and sorghum are assumed to substitute for imports (Annex 11). 7.04 Producer prices in the farm budgets are based on OPAT official prices for cotton 1/ and groundnuts and on average rural market prices for cereals and other food crops. Minor OPAT surpluses would be made on ground- nuts averaging about CFAF 7,000 (US$28) per ton between PY I and 5 and rising to over CFAF 20,000 (US$80) per ton by PY 10 allowing flexibility for some upward adjustment of producer groundnut prices. With cotton, the estimated OPAT surplus in 1977 is CFAF 87,900 (US$359) per ton as compared to the pro- ducer price of CFAF 50,000 (US$204) per ton (Annex 11, Table 3). 1/ Cotton farmgate price in farm-models is CFAF 48/kg; this has been increased to CFAF 50/kg after appraisal. - 23 - Calculated in 1977 constant terms, the OPAT surplus would decrease to about CFAF 75,000 (US$300) per ton in the 1980's if the present producer price were retained, and would yield a total OPAT surplus from project produced cotton of about CFAF 2.4 billion (US$10.0 million) in PY 5. This is over five times as large as the total cost of subsidizing all project seasonal inputs in PY 5 and evidently provides Government with no financial constraints against rais- ing producer prices (para 6.04). VIII. ECONOMIC JUSTIFICATION 8.01 The project's direct benefits would be the increased output of cot- ton, maize, sorghum and groundnuts (para 7.02) providing foreign exchange earnings from exports of cotton and groundnuts and for reduced imports of foodcrops. At full development the project would be assisting over 50,000 farm families representing about 400,000 persons or nearly 20% of Togo's population. Rural per capita incomes (including livestock, fisheries, and non-agricultural income) in the project area average about CFAF 20,000 (US$80). It is estimated that at least 75% of project participants have incomes at a level of less than one third of the national per capita income average, thus falling in the target income group. Under the project, the average per capita incomes of participating families would increase by 25%, to CFAF 25,000 (US$100) in 1977 terms, at full development, while the value of crop production would increase by 50% and cash income from crops would double (para 6.03). The project would therefore have a significant impact upon the welfare of a large proportion of Togo's generally less developed rural sector. For participating farmers it would represent a major step towards modern crop husbandry practices and production additional to sub- sistence requirements. The project would also strengthen SOTOCO's manage- ment, provide training for over 700 field extension workers, and provide some 700 km of improved rural roads. 8.02 The project's economic rate of return is estimated at 32% over the 10 year project life. (Details of assumptions and calculations and the results of sensitivity tests are shown in Annex 12). This relatively high rate of return is typical of projects which aim at introducing high produc- tivity techniques on annual crops grown with traditional low-yield methods. The rate of return drops to 14% or 17%, for a 20% fall in benefits or a 20% rise in costs respectively. If farmers' participation amounts to only 70% of the report estimate, the rate of return falls to 20%. The project could absorb rather severe setbacks and still remain attractive. Risks 8.03 The project would be subject to a variety of risks of the types to be expected in any large-scale rural development project. Among these can be included yield responses, quality of management and extension staff, logistic transport problems involved in transporting inputs and outputs and most critical -- the willingness of farmers to adopt project practices. - 24 - However, such risks have been minimized by reinforcing SOTOCO's management and extension network, with an average of 75 farmers per extension agent; input distribution and cotton transport would be handled by SOTOCO's own management and transport fleet. Nevertheless, an increase in the price of cotton would provide an additional stimulus to farmers. In view of the significance of cotton in the project, both with respect to its share of incremental project benefits and its role as the lead crop in the technology adoption process, inadequate producer incentives for cotton production are therefore seen as the most important potential cause for failure to achieve project targets. As stated in para 6.04, the producer price of cotton was discussed during negotiations and an assurance was obtained that Government would review yearly the producer prices with a view to ensuring that these are set at a level to provide adequate incentives to cotton growers, and therefore, minimize such a risk. IX. AGREEMENTS REACHED AND RECOMMENDATION 9.01 During negotiations, assurances were obtained on the following principal points: (a) Government would review annually with IDA its policy regarding the subsidies granted on fertilizers and insecticides (para 2.16); (b) SOTOCO's statutes would be amended to extend its extension activities to foodcrops in cotton areas (para 4.01); (c) Government would make available to SOTOCO, through the bareme procedure or by direct payments, all funds neces- sary to SOTOCO during project implementation (para 4.13); (d) Government would review yearly the farmgate price for seed cotton, in consultation with IDA, with the purpose of main- taining adequate producer incentives (para 6.04). 9.02 Conditions of effectiveness would be: (a) the payment by Government to SOTOCO, in an amount of CFAF 275 million (US$1.1 million equivalent) (para 4.14); (b) the effectiveness of the FAC Grant Agreement providing FAC's co-financing of this project (para 5.03); and (c) the deposit by Government in SOTOCO's special input procurement account at CNCA of the amount of CFAF 300 million (US$1.2 mil- lion equivalent (para 5.06). 9.03 Subject to the above major assurances and conditions, the project is suitable for an IDA Credit of US$14.0 million. Annex 1 TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS Progress of Agricultural Projects Financed by IDA A. Credit No. 503-TO Cocoa/Coffee Development Project: US$6 million Credit of August 6, 1974 Effectiveness Date: March 12, 1976 Closing Date: December 31, 1980 The project's executing agency SRCC and the Project Credit Unit have completed their staffing and infrastructure satisfactorily and operations have been proceeding well. The planting program, by 1976, was ahead of appraisal estimates. This lead will be less in 1977 for cocoa because an unusual drought has limited seed production - but physical target, as appraised, will be met. Project costs are under control in spite of price increases and the present state of currency fluctuations. Action has been initiated towards the prepa- ration of a follow-up project. B. Credit No. 638-TO Maritime Region Development Project: US$9.5 million Credit of June 16, 1976 Effectiveness Date: October 26, 1976 Closing Date: December 31, 1981 The credit became effective on October 26, 1976. Because of FAC financing, the project had already started on schedule and field trials are underway. Key management positions have been filled and the 1977 agricultural program has been prepared. Construction of project buildings has started and procurement bids for road building equipment have been advertised. TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS Ministry of Rural Development Monitoring SOTOCO and General Manager Evaluation 110000 t 0 1 Unit F Technical Manager 0g Finance and CommercialEngineering Administration and Marketing Training Division Regional Offices and Admaistrtionand arkeingMechanical Unit Plateaux Centratle Kara Savanna Region Region Region Region Sectors Sectors Sectors Sectors Feeder Roads Unit Sub- Sub- Sub- Sub- Sectors Sectors Sectors Sectors Extension Extension Extension Extension Agents Agents Agents Agents ANNEX 2 Table 1 TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS SOTOCO - Financial Accounts (as at September 30, 1976) in CFAF '000 I. Balance Sheet Liabilities Assets Equity 200,000 Fixed Assets 234,129 Investment Grants 182,714 Operational Assets: Sub-total 382,714 Fertilizers 32,589 Less: Accumulated Deficit 130 245 Insecticides 129,297 252,469 Other 18,852 Creditors Receivables: State 243,931 Farmers 52,868 Suppliers 60,280 FAC 27,000 State 24,253 Other 30,052 Cash at hand 7,640 Total 556,680 Total 556,680 II. Operational Accounts A. Marketing Expenditure Income (through the OPAT bargme) Handling and Handling and general expenses 17,518 general expenses 20,538 Transport Transport 31,156 SOTOCO: maintenance Bags 1,954 and operating expenses Financial charges 3,429 on trucks 9,187 57,077 Transport by sub- Operational loss 18,181 contractors 33,358 Bags and other expenses 4,904 Financial charges 10,291 Total 75,258 Total 75,258 B. Extension Services Salaries 106,234 Operational subsidy 24,432 Admin. Expenses 13,170 Income from transport 1,402 Vehicles and Equipment Sales of seeds 1,182 (op. maintenance and Other 6,676 repairs) 38,737 33,692 Operational deficit 124,449 Total 158,141 Total 158,141 Total operational deficit for the year 142,630 ANNEX 2 Table 2 TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS Operation of the Lama-Kara Gin A. Investment Estimated total cost including building, access roads and machinery CFAF 330 million (US$ 1.35 million) B. Yearly Operating Costs (in '000 CFAF) 1. Personnel: Technical Assistance 1/ 14,ooo Togolese personnel 10,000 24,000 2. Maintenance and insurance 5,000 3. Spare parts and other expenditure 7,500 4. Temporary labor 5,000 5. Baling material 8,200 6. Energy 9,500 59,200 7. Contingencies (20%) 11,800 Total operating costs: 71,000 2/ 8. Depreciation (20 years) 16,500 Total Costs 87 500 1/ Technical Assistance needed for the first three years can be considered as an investment cost, thus reducing the operating costs by CFAF 14 million, and increasing depreciation by CFAF 0.7 million. The total yearly outlay would then be about CFAF 7h million and the break-even point would be reached by processing about 9,000 tons of seed cotton (at CFAF 8,500 per ton). 2/ Based on processing of 9,000 tons of seedcotton. When 12,000 tons would be processed (in PY 5) costs would increase by 10%. ANNEX 2 Table 3 TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS Marketing Price-structure for seedcotton (1976-1977) CFAF/ton Producers price 50,000 Handling and storage 1,700 Transport to gin 2,000 Unloading and warehouse expenses 1,460 General expenses of authorized buyer 1,300 55,460 CNCA financial charges (8% over 2 months) 855 Commission to authorized buyer 1,200 Bags 200 Total 58,785 Economic value 145,394 1/ Government surplus 95,394 Less: Estimated cost of subsidies on farm inputs 2/ 14,722 Net Government Income 80,672 Surplus as percentage of economic value 65.6% After deduction of input subsidies 55.4% 1/ See Annex 11, Table 3 2/ 150 kg fertilizers at CFAF 45/kg, 20 litres insecticides at CFAF 325/litre (yield 900 kg) ANNEX 3 Page 1 TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS The Project Area 1. Location. The project would be located in areas with cotton grow- ing potential in the Plateau, Central, Kara and Savanna regions. Broadly, o o the geographical delimitation is between 6 50' - 11 of northern latitud and 00 - 10 40' of eastern longitude, with a total surface of about 50,000 km . The area is bordered by the Maritime region in the South, Ghana in the West, Benin in the East, and Upper Volta in the North. 2. Administration. The Plateau, Central and Kara regions are divided into four, the Savanna region into two districts. Each district is headed by an administrator (chef de circonscription), who is assisted by a district council made up of village and "canton" chiefs. The district administrators are responsible to the central government; there is no administrative struc- ture at the regional level. 3. Population of the project area is about 1.3 million (1973), about 15% are urban dwellers, and increases at a yearly rate of about 2.7%. Accord- ing to surveys carried out in 1973, the rural population is distributed over some 140,000 farms, with each farm family having an average of 7.5 members of which slightly less than half are economically active. Main data on admini- stration and population are shown on Map No. 12608. 4. Climate. The project area can be broadly divided into three climatic zones (Map No. 12611). In the South (Plateau region), the climate is transi- tional subequatorial with a bimodal rainfall pattern; while in the Center and North, there is a tropical climate with a monomodal rainy season which is long in the Central region and short in the Kara and Savanna regions. The precipi- tation pattern in the Plateau region allows two crops to be grown successi- vely during one season while in the central and northern parts of the country only one crop per season is possible. Total rainfall and number of rainy days (rd) increases from the southern part of the Plateau region (Notse: 1,167 mm, 84 rd) to the Center (Atakpame: 1,451 mm, 97 rd; Sokode: 1,413 mm, 108 rd) and decreases again to the North (Lama Kara: 1,307 mm, 93 rd; Dapaon: 1,033 mm, 76 rd). (For details see Charts No. 16759 and 16760). Although informa- tion to provide probability analysis of rainfall is lacking, opinions obtained during appraisal indicate that a drought might occur every seven years that could reduce yields by about 50%. This possible reduction has been taken into consideration in yield assumptions. Temperature varies little from South to North, with maxima and minima differing only about 3 - 60 C. Variations between day and night are more signi- ficant, reaching up to 15 - 200 C, particularly during the harmattan (dry wind) season. The rain-carrying wind, monsoon, coming from the Southeast, sweeps ANNEX 3 Page 2 the entire country from May-June onwards; in November, the monsoon is replaced by the dry, dusty harmattan, blowing from the Northeast, which covers mainly the northern and central parts of the country. Sunshine and evaporation increase and relative humidity decreases from South to North, as illustrated in the table below: Station Evaporation Sunshine Relative Humidity (%) (mm) (hours) 8:00 h 12:00 h 18:00 h Lome 1,095 2,382 87 70 84 Atakpame 1,295 2,282 89 61 70 Sokode 1,326 2,417 81 57 67 Mango 2,314 2,967 72 51 51 5. Hydrology. There are two major water streams in the project area. The Oti river cuts across the entire Savanna region from Northwest to Southeast and, with its tributaries, dominates an extended valley in which large areas are subject to annual inundation. At the p5int of entry into Togo, the mean flow of the Oti his been calculated at 82 m /sec with large annual variations from 0.6 to 411 m /sec. The second major river, the Mono, proceeds to the South through the eastern part of Central and Plateau regions and forms the border between TSgo and Benin in the Marit me region. Annual flow variations rangs from 1.4 m /sec in February to 319 m /sec in September with a mean of 86 m /sec. While large areas of fertile valley soils are suitable for irrigated agriculture, there are constraints to their development - lack of roads, lack of water in the dry period, lack of water regulation in the wet period, and occurrence of riverblindness in some areas. The groundwater supply in the project area is spotty and generally insufficient for human and animal needs. In particular, the Central region suffers from the lack of a suitable aquifer. FED is expected to finance a water supply project that should commence in the second half of 1977, covering construction of over 200 wells in the project area; therefore, this proposed project does not include a separate well component. 6. Pedology. Several geologic formations traverse the country in bands from Northeast to Southwest. Largest is the granitic-gneissic basement com- plex of the Precambrian which covers about three quarters of Togo's territory. Various subdivisions of the Precambrian and the schist and sandstone series of the Voltaien formation in the North of the country had greatest impact on the pedogenesis. The two most important soil groups that developed are the ferruginous tropical soils covering well over half of the project area and the ferralitic soils occurring in the western part of the Plateau region and in smaller pockets in the eastern part of the Kara region. Hydromorphic ferruginous soils, predominant in the southern part of the project area, are normally poor in organic matter, have a mediocre structure, and suffer often ANNEX 3 Page 3 from drainage problems. If these soils are drained and fertilized they can successfully support most of the annual crops. Ferruginous leached soils, occurring in the northern part of the project area, are mostly sandy with low clay and organic matter contents. With organic and mineral fertilization added, these soils can produce high yields of annual crops. Finally, there are sizeable pockets of highly fertile vertisols, West and North of Atakpame. in the Plateau and southern part of the Central region; small pockets of fertile eutrophic (rich in nutrients) brown soils north of Lama Kara; an extended area of low fertility lithosols on both sides of the Atakora mountain chain stretching through the Center of Kara and Central and West of Plateau regions; and the lithosol band passing from east to west, south of Dapaon in the Savanna region. The main soil groups are illustrated in Map 12610. 7. Vegetation. The predominant type of vegetation in the southern part of the project area is the Guinean wooded savanna with Terminalia, Butyrospernum and Andropogon as main species. The area is interspersed with islands of dense wooded savanna represented with Anogeissus, Isoberlinia and Afzelia; and the Center is marked by degraded zones of intensive cultivation. The North is qualified as Sudano-guinean wooded savanna characterized by Aristida, Eragrostis, and Parkia. Extensive pockets of degraded zones of intensive cultivation are found around and north of Lama Kara and around Dapaon. Regional Characteristics 8. The northernmost Savanna region is characterized by an irregular and short-duration rainfall pattern (1,100 mm). The to al population was 262,000 in 1973, with an overall density of about 30/km; but while the Oti Valley is virtually empty because of onchocerciasis, other parts of the region have much higher concentration (up to 90/km ). Principal crops are millet/sorghum, groundnuts, and recently, rice and cotton; the area has moderate prospects for livestock development and ox-cultivation. Sur- veys indicate that 93,000 ha of land are cultivated by some 23,900 farms (shoukhalas) with an average farm size of 3.9 ha. The practice of multiple intercropping is common. The length of the fallow period varies according to zones and demographic pressure; it is estimated that, on average, the time of fallowing is equally as long as the time of cropping, which bring the area under fallow to some 90,000 ha. Less fallowing is practised in the higher populated Dapaon area than in the lower populated Mango area. Main physical data for the project area, main food crops grown and areas cultivated are given in Table 1. The Savanna region has had traditionally the highest proportion of domestic animals of the whole country. The cattle population is estimated in the region of 75,000 head, or about 40% of Togo's total. The main breed is the trypaho-tolerant Borgou which in the North is interbred with the Zebu. A small herd of N'Damas, imported in 1968 from Mali, amounted to about 250 head in 1975. The Savanna is also the only region where the introduction of ox-cultivation has had some success; it is reported that, in 1975, more than 1,300 farmers used ox teams. The major part of herds are guarded by Peuhl herders; the rest is supervised by farmer-owners. ANNEX 3 Page 4 9. The Kara region, a mountainous region, has adequate rainfall (1,400 mm) but low agricultural potential due to overpopulation and the 2 resultant depletion of so 1 fertility. Population density averages 53/km but reaches almost 300/km in some areas; while about one fourth of the region is unpopulated due to onchocerciasis. Migration to the south, both seasonal (about 20% of the male population) and permanent, is already signi- ficant and will have to continue if the problems of overpopulation in the region are to be solved. A FED-financed project, started in 1974, aims at easing the population pressure in the area of the Kabiye massive and to resettle some 200 families into the Kara valley; the project is making good progress. According to recent surveys (1973), some 26,200 ha are cropped in the Kara region by 32,300 farmers. The average farm size is about 0.8 ha; farms are smaller in the mountainous areas and close to urban centers and larger in the rest of the region. In areas with highest population densities (the Cabrais and Piemonts areas), fallowing has been greatly reduced or even eliminated, whereas in less populated areas fallowing is similar to the practices in the Savanna region. Main crops of the area are sorghum, yam, groundnuts; recent introductions are rice and cotton. A con- siderable production of millet, cowpeas and groundnuts comes from various methods of intercropping. 10. 2 The Central region is the least populated region with only about 19/km . Precipitation, which averages about 1,300 mm per annum in a single season, and generally adequate soils can support most of the annual food and industrial crops. However, the absence of an easily accessible aquifer to supply drinking water is a major constraint to settlement and agricultural development. About 65,000 ha are cultivated by some 29,200 farmers. The average farm size is 2.2 ha; farms are smaller in the South and larger in the North of the region. Main crops cultivated are sorghum, followed in area and importance by yam and cassava. About one third of these crops are grown in pure culture. A sizeable production of maize, cowpeas and groundnuts is coming from intercropped areas. The cattle population in 1971 was estimated at 52,000 head, about one third of Togo's total. Almost two thirds of it was concentrated in the northern district of Bassar. The herds are almost exclusively guarded by Peuhl herders. 11. The Plateau region, with average annual rainfall of 1,200-1,690 mm (bimodal), generally good soils and a population density of about 30/km , has the best agricultural potential. Cocoa and coffee dominate the wetter, mountainous area to the west, while the central and eastern part of the region is suited for integrated cotton/food crop development and intensive maize cultivation. Other crops of considerable importance are yam and cassava. About half of the total area (Table 1) of both crops is grown in pure culture. Sorghum, rice, cowpeas and groundnuts are of lesser impor- tance; they are cultivated either in pure stands or in various combinations of intercropping. The total farming area is around 70,000 ha; but on part ANNEX 3 Page 5 of that area, the bimodal rainfall pattern allows two crops to be grown per year and the total cultivated area was estimated at 93,400 ha in 1973. There are some 55,000 farms. The average farm size is about 1.4 ha; farms are smaller in the South and West and larger in the North. The region is self- sufficient and exports crops such as maize, yam, cassava, cowpeas, rice and fruits. Although the Plateau region has permanent rivers, sufficient grazing land and annual crop residues, the cattle population is only about 31,000 head. The herds are considered partly as capital investment and social security which the owners are reluctant to dispose of. As in the other areas, herds are supervised by Peuhls. 12. Land Tenure. In the southern and central part of the country, land is owned by the local community and individual farmers receive usufruct rights from village chiefs. In the northern parts, the tenure system is based on extended family ownership and principles of inheritance within the family. Leasing of land to migrant farmers is possible in all areas. The systems of land tenure are satisfactory and it is not expected that they will pose any constraints to project implementation. ANNEX 3 Table 1 MAIN PHYSICAL DATA AND CROPS OF PROJECT AREA REGION DATA PLATEAU CENTRAL KARA SAVANNA TOTAL Total area (km ) 16,930 20,000 4,490 8,470 49,890 Cultivated area (ha) 93,400 64,600 26,200 93,000 277,200 Population 1/ ('000) 520 300 251 262 1,333 Farms (No.) 54,700 29,200 32,300 23,900 140,100 Crops (ha) 2/ Maize 27,700 600 200 200 28,700 Sorghum 5,000 36,700 19,200 35,100 96,000 Millet 600 900 800 40,700 43,000 Rice 3,900 400 1,100 1,700 7,100 Yam 14,900 20,300 1,700 1,000 37,900 Cassava 6,700 3,200 100 - 10,000 Cowpeas 1,700 200 100 - 2,000 Groundnuts 900 500 1,100 13,500 16,000 Others 32,000 1,800 1,900 800 36,500 Total 93,400 64,600 26,200 93,000 277,200 1/ In 1973. 2/ Areas given in table include pure stands of crops and intercropped areas in which the indicated crop is in clear majority (mixed predominant stands, primary combinations). Minority combinations (mixed subsidiary stands, secondary combinations) are not included. TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS Rainfall Figures for Notse and Atakpame (Plateau Region) (1941-1970) NOTSE 200 ANN. MEAN = 1167 mm RAINY DAYS = 84 E 150 100 50 2 3 7 8 11 11 7 6 11 11 5 2 RAINY DAYS (No.) ATAKPAME 200 ANN. MEAN = 1451 mm RAINY DAYS = 97 E 150 E LL Z 100 50 1 3 6 8 10 12 14 11 14 12 4 2 RAINY DAYS (No.) JAN. FEB. MARCH APRIL MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC. World Bank - 16759 TCGD RURAL DEVELOPMENT PROJECT I N OTN o0 ARLAS Rainfall Figurcs for Sekode (Centaih Region), Lama Kara (Kara Region) and Dapaon (Savanna Region) (1941-1970) SOKODE 250 ANN. MEAN = 1413 mm 200 - RAINY DAYS = 108 E E 150 - z 100 50 1 2 5 8 11 16 15 17 17 11 3 2 RAINY DAYS (No.) LAMA KARA 250 ANN. MEAN = 1307 mm 200 RAINY DAYS =93 E E 150 < 100 50 1 4 7 10 13 14 14 16 11 2 1 RAINY DAYS (No.) DAPAON 250 - ANN. MEAN = 1033 mm 200 - RAINY DAYS = 76 E E 150 Z 100 50 1 2 5 8 10 11 16 16 6 1 RAINY DAYS (No.) JAN. FEB. MARCH APRIL MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC. World Bank-16760 ANNEX 4 Page 1 TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS Farm and Crop Development A. Introduction 1. Technical data and recommendations on agricultural production in the project area are based on information provided by the specialized research agencies such as IRCT and IRAT, the FAO fertilizer program, and the field experience of the SORADs and SOTOCO. 2. Over the past decade, work on varieties has concentrated on cotton. For this crop there has been steady progress, and a good variety has been developed and introduced in Togo. For improved food crop varieties, intensive screening has only a recent history; the first promising results are on hand, and there are indications that further improvements would be achieved during project duration. 3. Fertilizer studies have revealed that cotton responds well to basic nutrients (NPK) complemented by sulphur and boron. With maize and sorghum, a very favorable response to nitrogen has been established, through- out the project area, particularly in the south where soils are relatively well supplied with phosphorus and potassium. In the northern parts, where the natural phosphate content of soils is low, yield increases of cereals and groundnuts were demonstrated with phosphatic fertilizers. Since organic matter content is generally low, the project would encourage the incorpora- tion of crop residues into the soil. 4. Land preparation methods would be aimed at lessening drought effects. On soils with high run-off and low infiltration rates, crops would be planted on tie-ridges. Cultivation and planting along the contour together with correct plant densities would be recommended as a basic measure for soil erosion control on sloping lands. On level lands and soils with good per- meability and water retention properties, cultivation of crops on the flat would be recommended. 5. Pests on food crops, although present, have not reached proportions that would economically justify chemical control. Pests on cotton, however, are many; regular and well performed applications of chemicals during the critical growing period are an essential condition for achieving high yields. The table below gives mean results of five years' IRCT experimentation with pest control in four locations of the project area (yield in kg/ha): ANNEX 4 Page 2 Pest Control: None Full Full Region Fertilizer: None None 200 kg/ha Plateaux 300 1,230 2,030 Centrale 300 970 1,550 Kara 200 360 1,380 Savanna 200 980 1,980 Cotton pest control has undergone a number of very substantial changes in past years that has enabled considerable labor savings and yield increases. 6. The achievements in pest control, variety developments, improved crop nutritional standards and integrated farming systems were possible because of continuous research. To back up the production side this project would help further develop a research and seed production component (Annex 6). B. Farm Systems 7. Information on family composition, farm size, and crop composition is based on regional surveys carried out in 1972-74. Ecological, ethnical and demographic conditions vary considerably from region to region. Figures on farm and family size and crop composition in the project for all regions are summarized in Table 1. 8. In the Plateau region, the average project farm would be about 1.3 ha, though 2 ha would be cultivated in one year because of the bimodal rainfall pattern. Cereals, mainly maize (0.7 ha), tuber crops (0.6 ha), and cotton (0.7 ha) would form the bulk of crop production. It has been assumed that to accomodate the cotton area into the crop rotation under the project, the average farmer would give up because of possible land shortage, an esti- mated 0.25 ha of cereals and 0.1 ha of tuber crops; the rest of the cotton output would come mainly from replacing the low yielding cotton type G. barbadense and increased double cropping. In the Centrale region, an average project farm would have 2.4 ha. The subsistence cereal grown in t he southern part would be maize, while in the North, the predominant cereal would be sorghum, accounting for about two thirds of total regional cereal production. The average cereal area would be 1.2 ha. Yam(0.6 ha) is a very important crop of this region, the taste qualities are highly appreciated by the local population and a considerable part of the production is being sold on local markets. The average farmer would cultivate about 0.6 ha of cotton and it is estimated that he would forego some 0.2 ha of cereals and 0.1 ha of tubers to incorporate cotton into his farming pattern. The remaining cotton area would ANNEX 4 Page 3 be derived by replacing G. barbadense and from fallow. In the Kara region, project farms would be located outside the densely populated mountainous and semi-urban areas and would have an average size of 1.2 ha. Cotton (0.3 ha) would be placed mainly on fallow lands. Other main crops on the farms would be sorghum (0.8 ha) and groundnuts (0.1 ha). Millet and cowpeas would be produced in mixed subsidiary stands (secondary combination) with sorghum, outside the cotton rotation. The Savanna region has the largest farms, with a mean of 3.9 ha. It has been assumed that the average project farmer would give up 0.2 ha of cereals and 0.1 ha of groundnuts for cotton, while the additional cotton area would come from fallow land. The average crop compo- sition on the project farm would thus be 2.8 ha of cereals, 0.5 ha groundnuts, 0.5 ha cotton and 0.1 ha other crops. 9. In the bimodal rainfall area, the basic recommended crop rotation would be maize-cotton. Maize plantings would coincide with the increase in rainfall in March, early April, to enable an early harvest and sowing of cotton between the maize rows. Care would have to be taken that the maize harvest is completed and the stalks knocked down within 15 days after cotton is sown to avoid prolonged shadowing of the young cotton plants. Although this practice has been widely accepted by farmers in the Plateau region, timing of these operations is crucial and would have to become one of the main subjects of training and extension work. Experience shows that, with correctly applied husbandry techniques, this rotation can be continued on the same plots for a number of years without nutrient deficiencies or pest build-up. Rotational issues would be kept under constant review by exten- sion and research agencies. In the Central region, the recommended rota- tion would again be cotton-cereals, with one crop following the other with one year's interval as dictated by the monomodal rainfall pattern. In the Savanna and on part of the cotton plots in the Kara region, the basic crop rotation would be cotton-sorghum-groundnuts. Improved techniques would be introduced on those portions of cereals and groundnuts that are in rotation with cotton. The remaining cereal areas would benefit from SOTOCO's advice on basic husbandry but would not be subject to inputs. Both rotations com- plement deep and shallow-rooting crops and direct and residual effects of fertilizer. 10. Cotton would be fertilized at the rate of 150 kg/ha in the Plateau region and 200 kg/ha in other regions of a boronated NPKS compound. At the highest management level (Stage III), it would be supplemented with additional nitrogen in the form of 50 kg/ha urea. In Stage II, cereals following cotton in rotation would benefit from the residual effects of cotton fertilizer and, in Stage III, would receive an additional booster of 50 kg/ha (sorghum) and 100 kg/ha (maize) of urea. The advanced stage of groundnuts (Stage III) would be additionally fertilized with 100 kg/ha of Togolese rock phosphate (35% P 20 5), which would, however, be applied to the preceding sorghum crop, since release of the phosphorus content of this fertilizer is slow. Only about 15% can be utilised by crops in the year of application while the major part is released for crop nutrition in the second year. ANNEX 4 Page 4 11. Intercropping is practised widely in the project area in all imaginable combinations. It is not rare to find fields with cereals, tuber crops, cotton (G. barbadense) and legumes, and in some instances, upland rice or various other minor crops (pumpkins, etc). While information on the technical and economic advantages of the multiple combinations is very scanty, there is no doubt that this form of crop growing has deep ethnologic roots. On the positive side, it can be considered as a substitution for crop rotations. However, establishment of correct plant populations and weed control is difficult and, for this reason, it would be attempted under the project to keep the main crops in the cotton-food crop rotation free of other additions. This approach is also important as preparation for the possible use of more sophisticated weed control methods (herbicides) at a later stage. 12. Table 1 gives a summary of farm demography for the four project regions. In terms of adult labor equivalent (ALE), the cultivated area/person ranges from 0.26 ha in the Kara to 0.84 ha in the Savanna region. An analysis of available and required labor for the four basic farm models with cotton, cereals and groundnuts in development Stage III, corresponding to PY 5 for the most advanced project farmers, shows that there would be no labor problems. The results are shown in Chart 16761. The peak labor requirements would generally occur at planting and weeding time, i.e. mainly in June and July. Highest labor demand would be in the Savanna region, in June, when practically all available labor would be called for, mainly for weed control. However, with the proposed introduction of ox-cultivation in this region, the labor peak should be eased, particularly as interrow cultivation with oxen is very efficient. Labor requirements during land preparation and harvest are con- siderable but relatively sufficient time is available to carry out this work: even if that time should, for any reason, be cut by half for both of these operations, the available labor force should still manage the work without outside help. However, insistence on timely field operations and help in organizing farm labor efficiently would be a major extension task. Labor requirements for crops and by regions and development stages are given in the table below (detailed labor demand for crops in development Stage III is in Table 2): ANNEX 4 Page 5 Development ALE days Crop Stage 0 I II III Oxen Cotton Region Plateaux 85 100 110 120 Centrale 110 130 140 150 Kara 100 120 140 150 Savanna 100 120 140 150 105 Maize 65 65 80 105 - Sorghum 60 60 75 90 42 Groundnuts 85 85 85 110 70 Yam, Cassava 200 200 - - - Cowpeas 60 60 - - 40 13. Farm Models and Budgets. Data on crop production characteristics by development stage for the four regional farm models are in Tables 3a-6a and farm budgets are presented in Tables 3b-6b. The budgets were worked out with the assumption that an average project. farmer would reach Stage III in cotton production after four years and in food crops after five years of project participation (see Annex 4,D). The project would reach about 40% of the farmers in the project area. Fertilizer and insecticide costs were calcula- ted at current subsidized prices (fertilizer CFAF 15/kg, insecticides CFAF 400/1), seeds were generally valued at market prices. In calculation of net cash income, adjustments were made for annual family food consumption. Under the project, the net cash farm income per average farm family would about double in the Plateau and Central region and increase almost ten times in the Savanna region. In the Kara region, it would create an income of CFAF 8,000 (US$32). The contribution of cotton to the net cash income in develop- ment Stage III would be almost 40% in Plateau, about 30% in Central and over 50% in the Savanna region. In the Kara region the farm cash income would originate entirely from cotton. Introducing work oxen in the Savanna would double the average farmers' income after 3 to 7 years and increase it 2.5 times after more than 8 years of operation (Annex 4, Table 6c and Annex 5, para 8). 14. Nutritional Standards. The farm budgets indicate that a marketable surplus of cereals and tubers is at present produced only in the Plateaux and Centrale regions. In the Kara and Savanna regions practically all cereal production is consumed locally. Further, basing the requirements per adult at about 2,300 cal/day, supply is sufficient in the Plateau and Central slightly deficient in the Savanna, and very deficient in the Kara region. Under the project there would be an overall increase of food supplies to project participants; supply in the Savanna would increase to 2,300 cal/day, in the Kara the supply would double from the present 840 to 1,640 cal in PY 5. The annual cereal production in kg per family member would increase as follows: ANNEX 4 Page 6 Production of cereals per annum (kg per family member) Region PY 0 FY 5 Plateau 73 188 Central 86 156 Kara 61 97 Savanna 137. 177 C. Major Crops Cotton 15. Until 1966 only the low producing Gossypium barbadense variety Mono, was cultivated in Togo. The production was on an extensive basis, with cotton being intercropped with other crops, mainly tubers, insect control non-existent, and yields very low, usually less than 100 kg/ha seed cotton. Starting in 1967 the Government, with the help of CFDT, began introducing Gossypium hirsutum which gradually increased from 600 ha to some 18,000 ha in 1975-76; mean yields, however, remained at a static level of 600-700 kg/ha. At the same time, the area of Mono decreased to about 13,000 ha in 1975-76. Part of this area is in pure stands, which provide good potential for early replacement by G. hirsutum. 16. The hirsutum varieties introduced originally were HAR 444-2 and Allen 333-61. In 1976 they were replaced countrywide by L 299-10 which has received the name Bou. The following table gives mean yield results of three years experimentation of four most promising varieties under trial: Yields of Seed Cotton (yields expressed as % of control variety Allen, which is given in kg/ha) Region Variety Maritime Plateau Central Kara Savanna Mean Allen 333-61 1,631 1,552 1,147 1,380 1,980 1,488 HAR 444-2 102.3 99.7 100.1 95.7 99.4 99.7 L 299-10 (Bou) 102.4 106.6 100.8 102.7 97.4 104.2 L 231-24 87.1 98.3 100.5 97.6 102.2 98.2 ANNEX 4 Page 7 While the yield of Bou is not significantly higher than that of Allen, the ginning percentage is higher by 3 - 4 points and the technological properties of the fibre are better. The ginning outturn on a 30 saw gin at the IRCT research station in Kolokope was 44%. Project calculations are based on an outturn of 40%. Technological properties of Allen and Bou are compared in the Table below: Fibre Uniformity Pressley Maturity Variety length (mm) ratio (%) Fineness Index (%) Bou 28.7 51.6 4.41 7.74 79.2 Allen 28.6 51.1 3.97 7.41 75.5 17. Within the framework of farmers' groups, or grower associations, the extension service would make efforts to group cotton farmers -- i.e., farmers would cultivate contiguous plots of cotton, forming blocks, to facilitate supervision, transport and fertilizer application, cultivation, pest identi- fication and control. This practice has already been started by SOTOCO and has been well accepted by farmers in some areas (e.g. Bassar area of the Centrale region). The popularization and introduction of new techniques, like ULV-pest control, and ox-drawn cultivation, would be used to stimulate blocking of cotton fields. 18. In the Plateaux region, where rainfall is bimodal and cotton would be sown between the rows of the preceding maize, no special soil preparation would be required. Fertilizer would be applied before cotton sowing at the rate of 150 kg/ha of a NPKSB (15:25:15:5:1) compound. In the other regions, hand hoeing or plowing and preparation of soil would be done immediately after the long-season food crops have been planted. Basic fertilizer would be applied during soil preparation. 19. Cotton seed would be dressed with a combined insecticide-fungicide (Gamoran or similar) at the rate of 200 g per 100 kg of seed. Dressing would be carried out in the ginnery and farmers would receive seed ready for plant- ing. Planting would be done at the recommended spacing of 80 cm between rows and 20 cm within the row. Seed rate would be 30 kg/ha of machine-delinted seed; five seeds would be sown per station. Gapping would be carried out 5 to 7 days after emergence. Thinning would be done at the stage of 3 to 4 true leaves, one to two plants would be left per stand, depending on row crop density, with the goal to achieve a population of some 63,000 plants per ha. Depth of planting would not exceed 2 cm since the cotyledons of deeper planted cotton have difficulties in penetrating the soil. Recommended planting dates would be as follows: ANNEX 4 Page 8 Region Date Plateau 20 June to 15 July Central 10 June to 30 June Kara and Savanna 1 June to 15 June 20. Weeding is of great importance for cotton, as this slow growing crop has a very poor ability to compete with weeds. Weed control has to commence preferably at the cotyledon stage of the predominant weed species. According to weed infestation, weather conditions and cotton growing rates, generally three weedings and/or reridgings would have to be done. In Stage III, a topdressing of urea would be banded along the cotton rows. It is imperative that topdressing be combined with the weeding operation because urea must be incorporated into the soil to prevent nitrogen losses. After application, urea breaks down into ammonia which would escape into the atmosphere if not covered by soil. Teaching advanced farmers the correct method of urea top- dressing would be an important task of extension work. 21. Peasant farmers generally start cotton harvesting too late. The principle that first picking should commence as soon as the first three to five bolls per plant are fully opened is only rarely followed. Since boll splitting starts at the bottom of the plant, late spells of rain, dew and soil dust often cause discoloration and deterioration of the fibre. Also, exposure of opened bolls to protracted intensive sunshine causes fibre quality to suffer; and direct physical losses occur when drooping bolls are exposed to strong winds. Therefore, to commence picking at the right time and to pick speedily is essential. The extension service would teach farmers to pick into bags tied around the waist, to use both hands for picking, and thus to lessen the manday requirement for harvest and, very importantly, to grade seed cotton into two categories while picking. Well-graded cotton commands a higher price on the market. Harvested seed cotton in farmers' and market stores should be protected from sunshine, dust and rain. 22. The bacterial blight or black arm disease (Xanthomonas malvacearum) is endemic but most of the modern varieties, including Bou, are provided with an inbred resistance. Other diseases, attacking mainly young plants, like Rhizoctonia, Pythium, and Colletotrichum, are efficiently controlled by seed dressing. Pests are a much greater problem than diseases and those responsible for the most damage on cotton are the bollworms. The prime ravagers in Togo are the American Bollworm (Heliothis armigera) and Red Bollworm (Diparopsis castanea and D. watersi), followed by Spiny Bollworm (Earias spp.) and Pink Bollworm (Pectinophora gossypiella) and lately by Cryptophlebia leucotreta (Argyroploce). The bollworms attack flowers, buds and bolls, feed on the soft tissues inside and cause necrosis and shedding of these fruiting organs. The ANNEX 4 Page 9 stainers (Dysdercus spp.) are sucking on maturing bolls and infect these with bacteria causing yellow to brown discoloration of the fibre. Cosmophila, Xanthodes and Lygus are leaf-eating insects which often cause extensive damage of leaf surface area, while jassids (Empoasca facialis) and cotton aphids (Aphis gossypii) can cause severe reduction in plant growth and development by sucking on the underside of leaves. In some years, late in the season, the red spider mite (Tetranychus atlanticus), can cause damage similar to that caused by aphids. 23. Pest Control has been carried out, so far, with hand-operated knap- sack sprayers equipped with a two-row spraying frame, using water as carrying media for the insecticide. The insecticide in use was mainly Peprothion, ap- plied in six sprays per season at a total rate of 15 1/ha. Under the project, water-based knapsack spraying would be phased out at the rate of depreciation of the T-15 sprayers and replaced with battery operated ULV (ultra-low-volume) sprayers. The rate of replacement of knapsack sprayers with ULV sprayers is evident from Annex 9, Table 12. The main advantages of ULV. compared to knap- sack spraying are four: no water is required, no hand pumping is involved since the sprayer is operated by a small electric engine, the sprayer is almost 10 times lighter than a full knapsack sprayer, and finally an area three to five times larger can be treated per day. The recommended insecticide would be initially Peprothion ULV which controls most of the parasites reasonably well. Research is presently undertaken on screening alternative ULV materials with lower mammal toxicity and biodegradable components which would improve the coverage of pests and to counter-effect an eventual build-up of resis- tance. The ULV insecticide would be used at about 18-20 1/ha in six to eight sprays per season. It has been estimated that one sprayer would initially cover only 5 ha per season and the average life time would be three years. Maize 24. Maize is the predominant staple food of the Plateau and southern part of the Central regions and is cultivated in the project area on some 30,000 ha in pure and mixed predominant stands and on 18,000 ha in mixed subsidiary stands. 25. The local varieties have a good taste but low productivity: the recommended variety under the project would be initially NH-1, a hybrid from Benin that can be replanted as F2 generation, without substantial losses in yield. In consequence seed would be replaced every third year. NH-1 has yields on the average about 20-30% higher than local varieties and is well accepted by the local population. It is a white grain short-season variety reaching full maturity in about 110 days. A high yielding, open-pollinated variety, Mexico-18, has been released recently for multiplication, but its practical spread is limited because of its hard grain and the long time required for milling. In general, the offer of maize varieties is unsatis- factory and IRAT, in close cooperation with IITA-Ibadan, would look for alternative solutions that would satisfy both yields and local taste pre- ference. Promising varieties are in the pipeline, as can be seen from results published in the 1975 IRAT annual report: ANNEX 4 Page 10 Region Plateau Maritime Station: Amontchou Notse Davie Variety - yield (t/ha): Ivoire I - - 6.3 La Posta 6.5 - 5.5 Ghana Compos. 4 6.3 - - Coast Compos 6.1 - Composite W 5.9 - - Mexico 18 5.3 4.6 4.7 NH-1 4.0 3.7 3.8 Local - 3.1 3.0 Other varieties that proved very successful in IITA trials, like TZB, TZPB, NCA, NCB, would be added to the program shortly (in 1975 all of these varieties, tested at six locations in Nigeria, yielded over 6.4 t/ha). It is expected that some of the high-yielding varieties would be released into rural areas before the end of the project. 26. In the bimodal rainfall area, soil preparation would start with the increase in rainfall in late February - early March to enable timely planting in mid-March or the beginning of April at the latest. In the Sotouboua area of the Central region, soil preparation would commence with the oncoming rains in March/April to make planting possible in the second half of April and in May. In Stage II, maize would make use of the residual fertilizer applied to cotton and in Stage III an additional topdressing of 100 kg/ha urea would be mixed into the soil at the second interrow cultivation. 27. Maize seed would be dressed with an insecticide-fungicide mixture (such as 25% TMD and 25% heptachlor) at the rate of 200 g per 100 kg of seed. Seed rate would be 20 kg/ha, depth of planting 5 cm, spacing 80 x 30 cm at two seeds per station, and thinned at three weeks to one plant per station to give a theoretical population of about 42,000 plants per ha. Weeding of maize is critical during the first three to four weeks after planting; after that the fast-growing crop, if established at the correct plant population, has excel- lent weed suppressing properties. An average maize crop would be weeded twice. Stemborer (principally Sesamia and Coniesta) control would be intro- duced as and when necessary. 28. In the bimodal rainfall area where cotton is being planted between the rows of still-standing maize, harvesting should be done speedily so that maize stalks would be flattened within 15 days after cotton sowing. In the Central region, harvest timing is not so critical, but speedy harvesting would be encouraged to avoid losses in the field. Maize would be stored on-the-cob in shelters until humidity drops to 12-13%. Shelled maize would be stored in large jars. Farmers would be encouraged to use 2% Bromophos at the rate of 1 kg per ton to minimize storage losses. Improving grain storage would become a major research item. ANNEX 4 Page 11 Sorghum 29. It is estimated that sorghum is grown in the project area on about 96,000 ha in pure and mixed predominant stands and on some 12,000 ha in mixed subsidiary stands. Sorghum is the staple food of the Central, Kara and Savanna regions. 30. Local varieties and strains are traditionally very tall, with a height of 4-6 m, a strong stalk, and a relatively loosely grouped seedhead. The low natural yield potential coupled with insufficient nutrition and low plant populations (often only 40-60% of the recommended number of plants per area) is responsible for the low average yield of 500-600 kg/ha. The growing period of these varieties is long, about 160-170 days. On the other hand the taste is highly appreciated by the local population, the beer brewing qualities are excellent, and the long stover can be used as roofing and heating material. Introduction of new varieties that would not meet the local requirements as to taste and beer brewing qualities would very likely face difficulties. It is thus imperative that promising varieties be exposed to widespread local testing before mass release into rural areas. This is one of the reasons why introduction of new varieties has been carefully reviewed in project planning, and although sorghum seed multiplication is relatively easy, and ecologically suitable varieties have been identified, first improved seed is anticipated to be used only in PY 3. Several varieties under IRAT testing, shown in the table below, are very promising (results of 1975 season): Region Savanna Central Station: Nagbeni 1 Nagbeni 2 Sango Kitangbao Variety-yield (t/ha): Naga white 2.9 0.5 1.0 Ghana 1 - - - 1.5 Dan Yalwa - 3.8 - - IRAT 55 - - - 1.7 CE 90 - 2.9 - - 65 1.8 2.2 0.5 CE 99 - 2.1 - CE 67 - 2.0 - - 517 0.5 - 1.5 0.5 219 - - 1.0 1.4 473 - - 1.4 - Local 0.6 - 1.4 The final selection of varieties for seed multiplication would be taken with regard to experimental results from the 1976 and 1977 seasons. Nucleus seed stock of all promising varieties is annually produced in suf- ficient quantities by IRAT. ANNEX 4 Page 12 31. Soil preparation would be similar to that of maize in the Central region, only to the north field operations would start later because of later arrival of the rains. In Stage II and III sorghum would benefit residually from cotton fertilizer. In the Kara and Savanna regions, sorghum areas supposed to be followed in the crop rotation by groundnuts would receive 100 fg/ha of Togolese raw phosphate, at time of soil preparation. Nitrogen nutrition at Stage III would be enhanced by 50 kg/ha urea mixed into the soil at second weeding. 32. Seed would be dressed with a combined insecticide-fungicide in the same manner as maize. Sorghum would be planted from May to July, depending on rains, earlier in the center, later in the north of the country. Recommended spacing is 80 cm x 40 cm at five seeds per station, thinned after crop estab- lishment to two plants per station, giving a population of about 63,000 plants per hectare. Planting depth would be 3 cm, seed rate 8-10 kg/ha. 33. Depending on weed infestation and frequency of rains, two to three weedings would be carried out at 7-10 day intervals after planting. Harvest- ing and storage would be similar as for maize. Groundnuts 34. An estimated 16,000 ha of groundnuts (of which over 80% in the Savanna region) are cultivated annually in pure and mixed predominant stands while almost the same area is grown in mixed subsidiary stands. Under the project groundnut growing would be improved in the Kara and Savanna regions. 35. Until recently there was no improvement in groundnut varieties. Traditional, degenerated varieties are yielding around 400 kg/ha of unshelled nuts. Recent IRAT work has identified several good varieties, of which RMP 12 has started to be introduced in the Savanna region and would be recommended under the project. It is a medium-sized, pink-kernelled variety, growing in about 140 days to full maturity. IRAT variety trials results in 1975 are given in the table below: ANNEX 4 Page 13 Region: Savanna Central Station: Sango Nagbeni Kitangbao 1/ Variety - yield (t/ha) RMP 12 2.6 1.7 2.5 RMP 91 2.5 1.6 2.0 57-313 1.7 1.6 1.4 241 C 1.5 - - 149A 1.5 1.5 SA 156 - 1.6 - Mwintunde - 1.8 1040 1.7 1/ Results in Kitangbao are also indicative for the Kara region. 36. Land would be prepared and ridged during April and May. Planting would be carried out preferably during June. Togolese raw phosphate would be applied at a rate of 100 kg/ha to sorghum, preceding groundnuts in rotation. Only an estimated 15% of P205 would be released in the year of application, leaving the bulk of phosphorus nutrition to groundnuts. Seed would be shelled and dressed under SOTOCO supervision by farmers. About 100 kg of unshelled seed would be required per hectare, recommended spacing would be 80 cm x 12 cm in the row, giving a population of about 100,000 plants per hectare. Weeding would be carried out as for sorghum; but since crop establishment is slower, additional weeding may be required depending on the season. 37. The crop would be lifted at full maturity and turned upside down for drying. The dry crop (after about five days) would be stacked in the field to be stripped when labor is available. 38. Pre-harvest pests of groundnuts have not been a serious problem in recent years but post-harvest fungal infestation is a matter of concern. Toxic substances caused by certain strains of Aspergillus flavus (commonly known as aflatoxin) are poisonous to domestic animals and are suspected to be carcinogenic for human. Harvest and post-harvest handling will have to be better controlled and improved to minimize Aspergillus infestation. Other Crops 39. Millet, tuber crops and cowpeas play a major role in the traditional crop production of the project area. They are not subject to direct improvement ANNEX 4 Page 14 under the project largely because they are usually outside the cotton-cereals crop rotation and are produced in combination with other crops, and also because recommendations on improved varieties (with the exception of cowpeas) and fertilization are not yet available. These crops would, however, benefit indirectly from project activities. Firstly, they would enjoy residual ferti- lizer effects after the main crop rotation is shifted to other lands on the farm, and secondly, and more important, through intensive research work on IRAT stations. Varietal work on cowpeas has reached the point where two or three varieties (58-162, 58-146 and Amoutchou 2) are at the stage of premul- tiplication. Also, tuber crop research has made very good progress in the course of the past two years and at least seven yam varieties, yielding more than 25 t/ha, have been identified in experiments at Kitangbao station in the Central region. The best were Kpassadjo, Prolific and Laboka; all three producing over 30 t/ha. Work on cassava at Amoutchou station of the Plateaux region is progressing equally well and at least four varieties yielded over 20 t/ha, the best being 312-524 (30.8 t/ha) and Gbaze (25.4 t/ha). Response of tuber crops to fertilizer has been inconclusive so far, but research is continuing. The linkage of the SOTOCO field trial unit with IRAT would assure a constant monitoring of IRAT research work and would in time signal the availability of new varieties and recommendations, which would then become extension items for the field service. D. Phasing, Yields and Production 40. Project farmers would move through three development stages of cotton and food crop production. Upon entering the project, farmers would be in Stage I which would consist, apart from correctly applying basic crop management, of proper pest control in cotton carried out through all the critical weeks of the growing season. Food crops would have no improvement yet and therefore Stage I would equal situation before project. Stage II would include full pest control and recommended basic fertilizer applications to cotton, and traditional varieties of food crops established at recommended plant populations would follow cotton in rotation (para 9), benefitting from residual effects of cotton fertilizer. To give farmers enough time for mastering the labor consuming combination of fertilizer application and pest control in the cotton crop and to safeguard the project against possible delays in adoption rates of new techniques by farmers and/or negative effects of unfavorable seasons, the farmers would be expected to remain in Stage II of cotton for two years and only small yield increases would be anticipated during this period. Stage III would have all technical qualities of Stage II but nitrogen fertilizer would additionally be applied. Improved food crop varieties supplied with modest rates of fertilizer would also be introduced. A very careful adoption rate of improved sorghum has been planned for the Kara and Savanna regions since there are sociological reasons making a slow re- placement of the traditional sorghum varieties advisable (para 30). An average farmer would reach Stage III in cotton after four years and in food crops after five years of project participation. However, many farmers would reach advanced development stages earlier than the above schedule because ANNEX 4 Page 15 close to 12,000 ha were estimated to be in an improved stage of cotton techno- logy in PY 0, i.e. before the start of the project (Table 12). 41. A description of crop development stages and a summary table of anticipated yields follows: Crop Development Description Stage Cotton 0 Traditional cultivation methods, no insecti- cides, no fertilizer. I Improved variety, seed dressing, timeliness of operations, correct spacing and plant population, 18-20 1 insecticides applied in 6-8 treatments. II As I + 150 kg/ha (Plateau region) and 200 kg/ha (other regions) of a NPKSB (15:25:15:5:1) fertilizer compound applied at land preparation. III As II + 50 kg/ha urea topdressed at 40 days after planting. Maize I Traditional cultivation, local variety. II Local variety following fertilized cotton in rotation, timeliness of operations, correct spacing and plant population. III As II but improved variety, seed dressing, top dressing with 100 kg/ha urea. Sorghum I As maize. II As maize. III As II, but improved variety, seed dressing, top dressing with 50 kg/ha urea and appli- cation of 100 kg/ha of raw phosphate on lands assigned to groundnuts in the following season, timeliness of operations, correct spacing and plant population. Groundnuts I Local variety, traditional cultivation. II As 1. III Improved variety, seed dressing, follows fertilized sorghum, timeliness of operations, correct spacing and plant population. ANNEX 4 Page 16 Anticipated Yields (kg/ha) Stage Crop Region 0 I II 1/ III 1. year 2. year Cotton Plateau 300 600 800 900 1,100 (seed cotton) Central 300 600 750 850 1,050 Kara 200 350 700 800 900 Savanna 200 450 800 900 1,000 Maize Plateau 700 700 1,200 1,200 1,800 (grain) Central Sorghum Central (grain) Kara 500 500 800 800 1,300 Savanna Groundnuts Kara 400 400 400 400 1,000 (unshelled Savanna nuts) 1/ Crops would remain in stage II for 2 years (para 40). 42. It has been assumed that the number of farmers growing cotton under SOTOCO supervision would increase from 19,300 in PY 0 to 53,300 in PY 5, and that the area planted with the G. hirsutum cotton type would increase from 11,700 to 31,700 ha. Starting in PY 2 improved techniques would be applied at an increasing rate also to food crops. Phasing of farmers into the project is summarized in the table below (details Tables 8-11): ANNEX 4 Page 17 Number of farmers expected to participate in project Stage I II III Total Incremental PY 0 18,800 500 - 19,300 - PY 1 9,100 13,600 400 23,100 3,800 PY 2 6,400 22,000 1,100 29,500 10,200 PY 3 6,300 15,400 14,000 35,700 16,400 PY 4 8,700 12,600 23,100 44,400 25,100 PY 5 8,900 14,900 29,500 53,300 34,000 PY 6 - 17,700 35,600 53,300 34,000 PY 7 - 8,900 44,400 53,300 34,000 PY 8-10 - - 53,300 53,300 34,000 Incremental and total production is summarized in the table below and details up to PY 10 are given in Table 12. Production (t) PY 1 2 3 4 5 Cotton Total (T) 10,200 14,160 18,940 23,940 29,210 Incremental (1) 3,480 7,440 12,050 17,220 22,490 Maize (T) 19,270 20,790 23,380 24,340 25,500 (1) -270 1,250 3,840 4,800 5,960 Sorghum (T) 18,850 19,830 20,310 20,890 21,440 (I) -150 830 1,310 1,890 2,440 Groundnuts (T) 1,810 1,780 2,710 3,040 3,310 (I) -40 -70 860 1,190 1,460 ANNEX 4 Page 18 E. Field Services and Training 43. The project area would be divided into four regions corresponding to the administrativz division of the country. The Plateau region, which is the most populated and has the highest production objectives, would have in the southern part a subregion seated at Notse. The regions would have head- quarters in regional capitals and would be headed by Regional Managers; and the subregion in Notse, by an Assistant to the Regional Manager in Atakpame. For the first three years of the project two Regional Managers would be seconded from CFDT. Regional administration would be divided in total into 14 sectors, already established, and subsectors and zones would increase during project implementation from 60 to 65 and 465 to 725 respectively. In PY 5 one Extension Agent (FA.) would be responsible for about 75 farmers, who would be growing about 45 ha of cotton and a corresponding area of food crops, in rotation with cotton, under SOTOCO supervision. In the southern part of the project area, farmer and crop concentration per EA would be higher; in the northern part, where cotton plots are smaller and distance between farms greater, the concentration per EA would be lighter. 44. An important aspect of extension work would be the informal organi- zation of farmers into groups, which would initially serve the purpose of planting plots under the same crop in blocks to facilitate some of the field operations, e.g. crop protection and ox-drawn cultivation. Later these groups would progress into grower associations which would carry collective responsibility for ordering inputs and repayment of credit and which would own and operate equipment, such as maize shellers, that would be too expen- sive to be purchased by individuals. The project would provide training to association leaders. 45. Training of extension staff would be an essential link in achieving project objectives. The SOTOCO training section, already reasonably well established, would be further reinforced by manpower and equipment. The section would :e headed by a professional Senior Training Officer (STO) who would have an Assistant Training Officer at HQ level. At regional head- quarters and at the Notse subregion office there would be in total five regional training officers (TO). The training section would be equipped with sufficient vehicles, with a library, photographic and audiovisual equipment, and with a duplicating machine and other materials required for teaching and demonstrations. Training would be basically carried out at two levels. The first of them would be medium-term training sessions for major extension items (e.g. pest control) and short-term sessions before all major field operations (e.g. planting, gapping, weeding); these sessions would be organized by the STO for senior staff, including Sector Chiefs, and by regional TOs for junior staff and farmers. The second level would be continuous on-the-job training of EAs in the field, which would be done by SOTOCO Sector and Subsector chiefs and would be actively supported and supervised by training officers from regional and central HQ. The STO would establish close contacts with IRCT, IRAT, IITA-Ibadan and the Ivory Coast cotton project for technical and organi- zational cross-communication. ANNEX 4 Table 1 DATA ON PROJECT FARM MODELS REGION DATA PLATEAU CENTRAL KARA SAVANNA Average farm Size (ha) 1.3 1/ 2.4 1.2 3.9 Average crop composition Cotton (ha) 0.7 0.6 0.3 0.5 Cereals (ha) 0.7 1.2 0.8 2.8 Cassava (ha) 0.2 - - - Yam and Others (ha) 0.4 0.6 - 0.1 Groundnuts (ha) - - 0.1 0.5 People per farm (No.) 6.7 7.7 6.6 10.2 2/ ALE per farm (No.) 2.9 3.6 3.3 4.6 Cultivated per person (ha) 0.25 0.34 0.12 0.38 Cultivated per ALE (ha) 0.59 0.72 0.24 0.84 1/ Cultivated 2.0 ha (bimodal rainfall area). 2/ ALE = Adult Labor Equivalent. TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS Available and Required Labor on Farm Models in PY5 Total Cropped Area (ha) and Total Available Labor (ALE) is in Plateau (2.0,2.9), Central (2.4,3.6), Kara (1.2,3.3) and in Savanna Region (3.9,4.6) S2.9 4- a_ -*3.6 Uj 3 -< 2 3.3 2 4.6 4 z 2 z 10 20 30 10 20 30 10 20 30 10 20 30 10 20 30 10 20 30 10 20 30 10 20 30 10 20 30 10 20 30 10 20 30 10 20 30 O JAN. FEB. MARCH APRIL MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC. cE ALE -.ADULT LABOR EOUIVALENTS F-] COTTON GROUNDNUTS AND OTHERS O CEREALS YAM, CASSAVA AND OTHERS World Bank - 16761 ANNEX 4 Table 2 TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS CROP LABOR REQUIREMENTS (ALE days per ha; Stage III) Crop: Cotton Maize Sorghum, Ground- Yam, Millet nuts Cassava Region: PL*- CE,KA,SA PL,CE CE,KA,SA KA,SA PL,CE Operation Uprooting 10 10 - - - - Land preparation - 20 15 15 15 80 Planting 8 8 4 4 10 20 1. Weeding, ridging 18 20 18 18 20 30 Thinning 3 3 3 3 - - Gapping 3 3 - - - 2. Weeding, ridging 12 18 12 12 15 3. Weeding, ridging 10 12 - - - Topdressing 2 2 2 2 - Pest control 6 6 - - - Bird scaring - - - 10 - - Harvesting 40 40 25 20 25 70 Threshing and 10 10 25 6 25 - post harvest manipulation Total 122 152 104 90 110 200 NOTE: 1/ PL = Plateau, CE = Central, KA = Kara, SA - Savanna region TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS CROP PRODUCTION CHARACTERISTICS BY DEVELOPMENT STAGE PLATEAU REGION (Farm Size 2.0 ha) 1/ CROP Development Area Yield Production Gross Input Family Net Return Value of Net cash income (Price) Stage (ha) (Kg/ha) (Kg) Value Costs Labor Per Farm Per ALE Per Hectare on farm after family (CFAF) (CFAs) (ALE days) (CFAF) day (CFAF) consumption consumption 2/ 31 4/ (CFAF) (CFAF) Per Farm Per ALE day ______--- _____ 4/____ 5/L. (CFAF) (CFA / COTTON (48 CFAF/kg) 0 0.7 300 210 10080 0 60 10080 168 14400 0 10080 168 1 0.7 600 420 20160 5600 70 14560 208 20800 0 14560 208 II 0.7 900 630 30240 7175 77 23065 300 32950 0 23065 300 III 0.7 1100 770 36960 7700 84 29260 348 41800 0 29260 348 MATE (27 CFAF/kg) I 0.7 700 490 13230 380 45 12850 285 18360 9450 3400 75 II 0.7 1200 840 22680 380 56 22300 398 31860 9450 12850 230 III 0.7 1800 1260 34020 1750 73 32270 442 46100 9450 22820 313 CASSAVA 6/ (5 CFAF/kg) I 0.2 6000 1200 6000 0 40 6000 150 30000 1750 4250 106 YAM AND OTHER 6/ (18 CFAF/kg) I 0.4 7000 2800 50400 0 80 50400 630 126000 28440 21960 275 1/ For farm budget see Table 3b. 2/ Cotton Stage I = 20 1/ha insecticides (400 CFAF/litre, stage II as stage I + 150 kg/ha fertilizer (15 CFAF/kg), stage III - as stage II + 50 kg/ha urea (15 CFAF/kg). Maize stage I and II = 20 kg/ha unimproved seed (27 CFAF/kg), stage III = improved seed - 20 kg/ha (50 CFAF/kg) plus urea 100 kg/ha (15 CFAF/kg). Inputs costed including subsidy. Unsubsidised input costs are; insecticide = 725 CFAF/litre, fertilizer and urea = 60 CFAF /kg. 3/ No hired labor required 4/ ALE = Adult Labor Equivalent. 5/ Annual family consumption of 350 kg cereals, 350 kg cassava, 1580 kg of yams and legumes. 6oi 6/ No change in crop husbandry and yields anticipated.0X TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS FARM BUDGET BY FARM DEVELOPMENT YEAR PLATEAU REGION (Farm Size 2.0 ha) 1/, 2/ WITHOUT PROJECT WITH PROJECT (1977 - 1991) Farm Development Year For: a) Farm where no cotton is grown initially 0 1 2 3 4 5 and on b) Farm where cotton is already grown 0 1 2 3 4 and on Cropped Area by Technology State (Ha): Cotton 0 0 Cotton 1 0.7 Cotton II 0.7 0.7 Cotton III 0.7 0.7 Maizel/ I 0.95 0.7 0.7 Maize II 0.7 0.7 Maize III 0.7 Cassava 0.2 0.2 0.2 0.2 0.2 0.2 Yams and Other 0.4 0.4 0.4 0.4 0.4 0.4 Total Cropped Area 1.55 2.0 2.0 2.0 2.0 2.0 Gross Value of Production (CFAF) 74355 89790 99870 109320 116040 127380 Cash Input Costs (CFAF) 380 5980 7555 7555 8080 9450 Net Value of Farm Production (CFAF) 73975 83810 92315 101765 107960 117930 Incremental Net Value of Farm Production (CFAF), a) Farm where no cotton is grown initially - 9835 18340 27790 33985 43955 b) Farm where cotton is already grown - 8505 17955 24150 34120 Family Labor (ALE days) / 181 235 242 253 260 277 Net Value of Farm Production per ALE day (CFAF) 409 357 381 402 415 425 Value of on farm consumption (CFAF) 5/ 30640 39640 39640 39640 39640 39640 Net Cash income after family consumption (CFAF). 1) per Farm 34335 44170 52675 62125 68320 78290 2) per ALE day 190 188 218 245 263 283 1/ For details by crop see Table 3a 4/ Average number of Persons per farm family = 6.7. Average number of Adult Labor Equivalents (ALE's) per farm family = 2.9. For seasonal labor requirements and 2 Physical area - 1.3 ha, cropped area 2.0 ha (bimodal rainfall pattern). availability see chart 16761 3/ Maize follows cotton in rotation 5/ Annual family consumption of 350 kg cereals, 350 kg cassava, 1580 kg yams and legumes, assuring about 2,300 calories per adult per day and equivalent nutritional quantities for children. Family consumption assumed constant throughout farm development period. TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS CROP PRODUCTION CHARACTERISTICS BY DEVELOPMENT STAGE CENTRAL REGION (FARM SIZE 2,4 ha) I/ ----------- Net Return ------------ --- Vplue of on 51 Net Cash Income after 2/ 4/ Farm Family Consumption Crop Development Area - Yield Production Gross Value Input Costs - Famly L;bor Pe FyM Fm Per ALE day (Price) Stage (ha) (kg/ha) (g(ALE days) Per Pars Per ALE day Per ha Consumption Per Farm Per ALE dpy (kg) (CFAF) (CFAF) (CFAF) (CrFAF) (CFAF) (CFAF) (CFAF) (CFAF) Cotton 0 0.6 300 180 8640 0 66 8640 130 14400 8640 130 (48 CFAF/kg) 1 0.6 600 360 17980 4800 78 12480 160 20800 0 12480 160 II 0.6 800 480 23040 6600 84 16440 195 27400 0 16440 195 III 0.6 1050 630 30240 7050 90 23190 257 38650 0 23190 257 Cereals I 1.2 550 660 26400 720 74 25680 347 21400 16800 8880 120 (40 CFAF/kg) II 1.2 725 870 34800 720 83 34080 410 28400 16800 17280 208 III 1.2 1000 1200 48000 1350 95 46650 491 38875 16800 29850 314 6/ Yam and Others 3/ I 0.6 7000 4200 75600 C 120 75600 630 126000 479110 27660 231 (18 CFAF/kg) 1/ For farm budget see Table 4b. 2/ Cotton Stage I = 20 1/ha insecticides (400 CFAF/1), Stage II = as Stage I + 200 kg/ha fertilizer (15 CFAF/kg), Stage III = as Stage II + 50 kg/ha urea (15 CFAF/kg). Cereals Stage I and II = 15 kg/ha seed (40 CFAF/kg). Stage Ill = as Stage II + 70 kg/ha urea. 3/ No change in crop husbandry and yield anticipated 4/ ALE = Adult Labor Equivalent 5/ Annual family consumption of 420 kg cereals, 210 kg legumes (at CFAF 50/kg) and 2080 kg yam assures about 2300 cal per adult per day. Legumes produced by intercropping with yam and cereals. 6/ Includes value of legumes (50 CFAF/kg). f TOGO Annex 4 Table 4b RURAL DEVELOPMENT PROJECT IN COTTON AREAS FARM BUDGET BY FARM DEVELOPMENT YEAR CENTRAL REGION (FARM SIZE 2.4 HA) Without Project With Project (1977-1991) Farm Development Year for: - (a) Farm where no cotton is grown initially 0 1 2 3 4 5 and on (b) Farm where cotton is already grown 0 1 2 3 4 and on Cropped Area by Stage of Technology (ha) Cotton 0 0 Cotton I 0.6 Cotton II 0.6 0.6 Cotton III 0.6 0.6 Cereals 21 I 1.4 1.2 1.2 Cereals II 1.2 5/ 1.2 Cereals III 1.2 Yam and Others 0.6 0.6 0.6 0.6 0.6 0.6 Total Cropped Area 2.0 2.4 2.4 2.4 2.4 2.4 Gross Value of Production (CFAF) 106,400 119,280 125,00 133,440 140,640 153,840 Cash Input Costs (CFAF) 840 5,520 7,320 7,320 7,770 8,400 Net Value of Farm Production (CFAF) 105,560 113,760 117,720 126,120 132,870 145,44o Incremental Net Value of Farm Production (a) Farm where no cotton is grown initially - 8,200 12,160 20,560 27,310 39,880 (b) Farm where cotton is already grown - - 3,960 12,360 19,110 31,680 Family Labor (ALE days) ?/ 204 272 278 287 293 305 Net Value of Farm Production per ALE day 517 418 423 439 453 477 Value of On-Farm Consumption 64,740 64,740 64,740 64,740 64,740 64,740 Net Cash Income after Family Consumption Per Farm 40,820 49,020 52,980 61,380 68,130 80,700 Per ALE day 200 180 191 214 233 265 V/ For details by crops see Table 4 a. Cereals follow cotton in rotation Number of persons per farm family = 7.7 Number of Adult Labor Equivalents (ALE's) per farm family = 3.6. For seasonal labor requirements and availability see chart 16761. 4/ For break down of family consumption see table 4 a. Only 0.6 ha in improved stage due to cotton-food crop rotation. Remainder remains in stage I throughout the project. TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS CROP PRODUCTION CHARACTERISTICS BY DEVELOPMENT STAGE KARA REGION (FARM SIZE 1.2 ha) 1/ Net Return Value of 4/ Net Cash Income after 2/ Family 3/ on Farm Family Consumption Development Area Yield Production Gross Value Input Costs Labor Per Farm Per ALE day Per ha Consumption Per Farm Per ALE day (Price) Stage (ha) (kg/ha) (kg) (CFAF) (CFAF) (ALE days) (CFAF) (CFAF) (CFAF) (CFAF) (CFAF) (CFAF) Cotton 0 0.3 200 60 2880 0 30 2880 96 9600 0 2880 96 (48 CFAF/kg) I 0.3 350 105 5040 2400 36 2640 73 8800 0 2640 73 II 0.3 750 225 10800 3300 42 7500 179 25000 0 7500 179 III 0.3 900 270 12960 3530 45 9430 210 31430 0 9430 210 Sorghum I 0.8 500 400 17600 350 48 17250 359 21560 17600 - - (44 CFAF/kg) II 5/ 0.8 610 490 21560 350 53 21210 400 26510 21500 - - III 5/ 0.8 800 640 28160 580 57 27580 484 34480 28160 - - Groundnuts I 0.1 400 40 2000 500 9 1500 167 15000 2000 - - (50 CFAF/tg) 111 0.1 1000 100 5000 650 11 4350 395 43500 5000 - - 1/ For farm budget see Table 5b 2/ Cotton Stage I = 20 1/ha insecticides (400 CFAF/1), Stage II = as Stage I + 200 kg/ha fertilizer (15 CFAF/kg), Stage III = as Stage II + 50 kg/ha urea (15 CFAF/kg). Cereals Stage I and II = 10 kg/ha seed (44 CFAF/kg), Stage III = as Stage I + 50 kg/ha urea (15 CFAF/kg). Groundnuts Stage I = 100 kg/ha seed (50 CFAF/kg), Stage III = as Stage I + 100 kg/ha rock phosphate (15 CFAF/kg). 3/ ALE = Adult Labor Equivalent 4/ Annual family consumption Stage 0 and I = 400 kg cereals and 40 kg legumes (about 840 cal) Stage II = 440 kg L. 4- cereals and 40 kg legumes; Stage III = 640 kg cereals and 100 kg legumes (about 1640 cal). 5/ Weighted averages for 0.3 ha of improved sorghum with 0.5 ha of sorghum in Stage I . Improved Sorghum follows cotton in rotation. TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS FARM BUDGET BY FARM DEVELOPMENT YEAR KARA REGION (FARM SIZE 1.2 ha) 1/ WITHOUT PROJECT WITH PROJECT (1977 - 1991) Farm Development Year for: a) Farm where no cotton is grown initially 0 1 2 3 4 5 6 and on b) Farm where cotton is already grown: 0 1 2 3 4 5 and on Cropped Area by Stage of Technology (ha) Cotton 0 0 Cotton 1 0.3 Cotton II 0.3 0.3 Cotton III 0.3 0.3 0.3 Sorghum I 2/ 0.8 0.8 0.8 Sorghum II 0.8- 0.8 Sorghum III 0.8 0.8 Groundnuts I 0.1 0.1 0.1 0.1 0.1 0.1 Groundnuts III 0.1 Total Cropped Area 0.9 1.2 1.2 1.2 1.2 1.2 1.2 Gross Value uf Production (CFAF) 19600 24640 30400 34,360 36520 43120 46120 Cash Input Costs (CFAF) 850 3250 4150 4150 4380 4610 4760 Net Value of Farm Production (CFAF) 18750 21390 26250 30210 32140 38510 41360 Incremental Net Value of Farm Production (CFAF) a) Farm where no cotton is grown initially - 2640 7500 11460 13390 19760 22610 b) Farm where cotton is already grown - 4860 8820 10750 17120 19970 Family Labor (ALE days) 3/ 57 87 93 98 107 111 113 Net Value of Farm Production (per ALE day) 329 246 282 325 328 347 366 Value of on Farm Consumption 19600 19600 19600 23560 23560 30160 33160 Net Cash Income after Family Consumption 4/ Per Farm - 1790 6650 6650 8580 8350 8200 Per ALE day - 21 72 68 80 75 73 1/ For details by crops see Table 5a. 2/ Sorghum follows cotton in rotation. 3/ No. of persons per farm family = 6.6; no. of Adult Labor Equivalents per farm family 3.3. 4/ For break down of family consumption see Table Sa. 3/ Only 0.3 ha in improved stage due to cotton - food crop rotation. Remainder remains in Stage I throughout the project. tr TOGO RURAL DEVEIDPMENT PROJECT IN COTTON AREAS CROP PRODUCTION CHARACTERISIICS BY DEVELOPMENT STAGE SAVANNA REGION (FARM SIZE 3.9 HA) 1/ Value of Net cash income on farm after family consumption consumption Net Return Crop Development Area Yield Produ ction Gross Input Family per per per per per ALE (Price) Stage (ha) (kg/ha) (kg) Value Costs Labor farm ALE day hectare farm day (CFAF) (CFAF) (ALE days) (CFAp) (CFAF) (CFAT) (CFAF) (CFAF) (CFAF) 2/ 3/ 4/ 4/ 5/ Cotton 0 0.5 200 100 4,800 0 50 4,800 96 9,600 0 4,800 96 (48 CFAF/kg) I 0.5 450 225 10,800 4,000 60 6,800 113 13,600 0 6,800 113 II 0.5 850 425 20,400 5,500 70 14,900 213 29,800 0 14,900 213 III 0.5 1,000 500 24,000 5,875 75 18,125 242 36,250 0 18,125 242 Sorghum I 2.8 500 1,400 51,800 1,040 168 50,760 302 18,130 51,800 - - (37 CPAF/kg) II 2.8 555 1,555 57,540 1,040 176 56,500 321 20,180 55,500 1,000 6 6/ III 2.8 645 1,810 66,970 1,415 183 65,555 358 23,410 59,200 6,350 35 Groundnuts I 0.5 400 200 10,000 2,500 43 7,500 174 15,000 8,000 - - (50 CFAP/kg) III 0.5 1,000 500 25,000 3,250 55 21,750 395 43,500 11,500 10,250 186 others 7/ I 0.1 400 40 1,200 100 6 1,100 183 11,000 1,200 - - (30 CFAF/kg) 1/ See table 6 b for farm budget and table 6 c for returns from work oxen. 2/ Cotton stage I = 20 1/ha insecticide (400 CFAF/1), stage II = as stage I + 200 kg/ha fertilizer (15 CFAF/kg), stage III as stage II + 50 kg/ha urea (15 CFAF/kg). Sorghum stages I and II = 10 kg/ha seed (37 CFAP/kg), stage III = 10 kg/ha Improved seed (37 CFAF/kg) + 50 kg/ha urea. Groundnuts stage I = 100 kg/ha seed (50 CFAF/kg), III = 100 kg/ha 0I4 Improved seed (50 CFAF/kg + 100 kg/ha rock phosphate (15 CFAP/kg). Seed for "other" crops valued at CFAF 1,000/ha. 3/ No hired labor required. 4/ ALE = Adult labor equivalent 5/ Annual family consumption in stages 0, I and II consists of 1,400 kg cereals, 160 kg of groundnuts and 40 kg of legumes and tubers providing about 2,100 calories per adult per day. In stage III consumption rises to 1,600 kg cereals, 230 kg groundnuts and 40 kg legumes and tubers providing about 2,500 calories per adult per day. 6/ Only 0.5 ha of sorghum in stage III due to cotton-food crop rotations. Yields from full stage III production are 1,300 kgs/ha providing a net return after subtracting cash input costs of 46,980 CFAF/ha. 7/ No change in crop husbandry and yields anticipated. TOGO RURAL DEVEIOPMENT PROJECT IN COTTON AREAS FARM BUDGET BY FARM DEVEIPMENT YEAR SAVANNA REGION (FARM SIZE 3.9 ha) 1/ 2/ WITHOUT PROJECT WITH PROJECT (1977 -1991) Farm Development Year For: a) Farm where no cotton is grown initially 0 1 2 3 4 5 6 and on b) Farm where cotton is already grown 0 / 1 2 3 4 5 and on Cropped Area by Technology State (Ha) Cotton 0 0 Cotton I 0.5 Cotton II 0.5 0.5 Cotton III 0.5 0.5 0.5 Sorghum 1 3/ 3.0 2.8 2.8 Sorghum II 2.8 2.8 Sorghum III 2.8 2.8 Groundnuts I 0.6 0.5 0.5 0.5 0.5 0.5 Groundnuts III 0.5 Others 0.1 0.1 0.1 0.1 0.1 0.1 0.1 Total Cropped Area 3.7 3.9 3.9 3.9 3.9 3.9 3.9 Gross Value of Farm Production 68700 73800 83400 89140 92740 102170 117170 Cash Input Costs 4210 7640 9140 9140 9515 9890 10640 Net Value of Farm Production 64490 66160 74260 80000 83225 92280 106530 Incremental Net Value of Farm Production a) Farm where no cotton is grown initially - 1670 9770 15510 18735 27790 42040 I b) Farm where cotton is already grown - - 8100 13840 17065 26120 40370 Family Labor (ALE days) 238 277 287 295 300 307 319 Net Value of Farm Production per ALE day 271 239 259 271 277 301 334 Value of on farm consumption 4/ 61000 61000 61000 64700 64700 68400 71900 Net Cash income after family consumption a) Per Farm 3490 5160 13260 15300 18525 23880 34630 b) Per ALE day 15 19 46 52 62 78 108 For details by crop see Table 6a. For returns from work oxen see Table 6c. 2/ Average number of persons per farm family = 10.2. Average number of Adult Labor equivalents (ALE's) per farm family a = 4.6. For seasonal labor requirements and availability see chart 16761. 3/ 0.5 ha of sorghum follows cotton in rotation, rest of sorghum area remains in stage I. 4/ See Note 5 of Table 6a. Annex 4 Ta-ble 6c Toco RURAL DEVELOPMENT PROJECT IN COTTON AREAS SAVANNA REGION. INCREMENTAL RETURNS TO STAGE III FARMERS FRO POSSESSION OF WORK OXEN 1/ -oo-- - W2 WORK OXEN - --- WOKJTOOXEN -(Sa;t Year (2ndWYear of (3rd - 7th (8th - 15th (All Years) of owner- ownership) Year of Year of ship) ownership) ownership) Crop Areas and Development Stage (He) Cotton (Stage 1I) 0.5 1.0 1.0 1.0 1.0 Sorghum (Stage 1) 2.3 2.3 1.8 1.3 1.3 (Stage 111) 0.5 0.5 1.0 10 1.0 Groundnuts (Stage III) 0.5 0.5 0.5 1.0 1.0 Others (Stage I) 0.1 0.1 0.1 0.1 0.1 Total Area 3.9 4.4 4.4 4.4 4.4 Gross Value of Farm Production (CFAF) 2/ 117170 144000 155600 171350 171350 Revenu. om Hire of o Tean Serviorn to Other Farmers 3/ 15000 15000 15000 15000 Total Gross Revenues 11.7170 155800 170600 188350 186310 Costs of Work Oxen: Equipment Amonrtization 4/ 5/ - 100 19500 19500 - F.qol- p,see ..a . neae/ 2500 2500 2500 4000 Supplementary Feed 7/ 3600 3600 3600 3600 Total Costs of Work Oxen 8/ 25600 25600 25600 7600 Soasnal Input Costs 2/ 9/ 10640 16511 16886 19951 19851 Total Inpst Costs 10640 42111 42486 85551 27551 Net Value of Farm Activities 106530 113689 128114 140799 158799 Family Labor Requirements (ALE days) 10/ a) 0n Own Farm 319 247 231 260 268 b) On Ox Team Hire Servicee 3/ - 25 25 25 25 Total Family Labor 319 272 276 293 293 Net Value of Farm Activities per ALE day 334 418 464 480 541 Value of on Farm Consumption 71900 71900 71900 71900 71900 Net Cash Income after Family Consumption a ) Per Farm 34630 41190 56210 68907 86900 b) Per ALE Day 108 154 204 235 296 Incremental Farmer Returns from owning Work Oxen . - 7160 21580 34270 52270 Risk Factor (Total Input Costs divided by Net Cash Income after Family Consumption) 0.31 1.01 0.75 0.66 0.32 1/ Illustrative of one feasible development possibility for a farm of 4 hectares. Farmers selected for the supply of work oxen implements and training would be progressive farmers already at crop development stage III (starting in Project Year 3) and would tend to be larger than the farm presented here with a correspondingly greater return from the use of work oxen. The incremental returns presented in this table for the farmer starting with 4 hectares are considered conservative in that farm area could increase by more than 0.5 hectares without meeting labor constraints, and employment possibilities for hiring out ox team services may also be greater. 2/ Yields and seasonal input applications per hectare assumed to remain the same. 3/ Ploughing of 1 hectare at CFAF 5,000/ha and 5 ox team days/ha, and transport services at CFAF 10,000 and 20 ox team days. Z/ Multi-purpose tool bar, ox cart and yolk and chains - purchase prices CFAF 30,000, 60,000 and 5,000 respectively making CFAF 95,000. Supplied on credit at 10% interest and repaid over 7 years including first year of ownership at constant annuities = 19,500/per annum for first 7 years. 5/ Weighted average life of equipment estimated at 15 years. With proper maintenance the cart and tool bar can be expected to last longer. 6/ Mainly replacemen t of cords, yolk and chains and ploughshares. Estimated at average of CFAF 2500 per annum in first 7 years and CFAF 4000 per annum thereafter. 7/ 120 hg pee aximal of low grade cereals at CPAF 15/hg. Wonk oe will nly be sed hy farmers that already possess a herd. Animal husbandry is poor and cattle are generally culled well past the optimum marketing age. Although draft animals may tend to be culled at a slightly more advanced age than normal, any decreases in meat quality would be compensated by the increased weight of the animal. 9/ Seed, Fertilizer and Pesticide. 10/ ALE = Adult Labor Equivalent. All labor inputs are family labor. TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS SUMMARY OF NET FARMER RETURNS WITH AND WITHOUT PROJECT BY REGION 1/ PLATEAU REGION CENTRAL REGION KARA REGION SAVANNA REGION Without Project With Project Without Project (ith Project Without Project With Project Without Project With Pro'et (No (Grows (No (Grows TNU I ows (No (crows Cotton) Cotton) Cotton) Cotton) Cotton) Cotton) Cotton) Cotton Average Farm Size (Cropped Area) 1.55 2.0 2.0 2.0 2.4 2.4 0.9 1.2 1.2 3.7 3.9 3.9 Average Persons per Farm 6.7 6.7 6.7 1 7.7 7.7 7.7 6.6 6.6 6.6 10.2 10.2 10.2 Average ALE's per Farm 3/ 2.9 2.9 2.9 3.6 3.6 3.6 3.3 3.3 3.3 4.6 4.6 4.6 Gross Value of Farm Production (CFAF'O00) 74.3 89.8 127.4 106.4 119.3 153.8 19.6 24.6 46.1 68.7 73.8 117.2 Cost of Purchased Inputs (CFAF'O00) 4/ 0.4 6.0 9.4 0.8 5.5 8.4 0.8 3.2 4.8 4.2 7.6 10.6 Net Value of Farm Production (CFAF'O00) 74.0 83.8 117.9 105.6 113.8 145.4 1 18.7 21.4 41.4 64.5 66.2 106.5 Net Cash Income (CFAF'000) 5/ 34.3 44.2 78.3 40.8 49.0 80.7 - 7/ 1.8 8.2 3.5 5.2 34.6 ALE days Required 181 235 277 204 272 305 57 87 113 238 277 319 Net Value of Farm Production per ALE day (CFAF) 410 360 430 520 420 480 330 250 370 270 240 330 Net Cash Income Per ALE day (CFAF) 190 190 280 200 180 270 - 7/ - 7/ 70 15 20 110 Per Capita Income (CFAF '000) 6/ 11.0 12.5 17.6 13.7 14.8 18.9 2.8 3.2 6.3 6.3 6.5 10.4 1/ Without project = years 1 to 15 in absence of project. With project figures are for farmers who have fully adopted the project technology. Development to this level takes between 4 to 6 years. For full details by region see Tables 3 to 6. 2/ See Table 6c for farmer returns from using work oxen in the Savanna. 3/ ALE = Adult Labor Equivalent. 4/ Seed, pesticide and fertilizer. / i.e. After subtracting on farm consumption of food crops. On farm consumption of food crops is estimated to remain about constant in the Plateau and Central regions and to increase slightly in the Kars and Savanna regions. 6/ Includes value of on farm consumption of food crops. Z/ Negligible. Annex 4 Table 8 TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS PROJECTIONS OF FARMERS, CROP AREAS AND CROP PRODUCTION PLATEAU REGION / 2 -'/ YEAR NUMBERS OF FARMERS CROP AREAS (Ha ) TOTAL PRODUCTION INCREMENTAL PRODUCTION (Tons) (Tons) Cott Maize Cotton Maize Cotton Maize Cotton Maize WITHOUT PROJECT (1977 and on) 3/ Stage I (without cotton) 4/ (15700) 15700 - 14915 - 10440 Stage I (with cotton) 9700 10000 6790 7000 4074 4900 Stage II ( with cotton) 300 - 210 - 189 - Stage III (with cotton) - - - - Total 25700 25700 7000 21915 4263 15340- WITH PROJECT 1977 Stage I (without cotton) (14300) 14300 - 13585 - 9509 Stage I (with cotton) 6400 11400 4480 7980 2688 5586 Stage II (with cotton) 4700 - 3290 - 2961 - Stage III (with cotton) 300 - 210 - 231 Total 25700 25700 7980 21565 5880 15095 1617 -245 1978 Stage I (without cotton) (11400) 11400 - 10830 - 7581 Stage I (with cotton) 2900 9300 2030 6510 1218 4557 Stage II (with cotton) 10800 5000 7560 3500 6804 4200 Stage III (with cotton) 600 - 420 - 462 - Total 25700 25700 10010 20840 8484 16338 4221 998 1979 Stage I (without cotton) (8600) 8600 - 8170 - 5719 Stage I (with cotton) 2800 5700 1960 3990 1176 2793 Stage II (with cotton) 9300 10000 6510 7000 5859 8400 Stage III (with cotton) 5000 1400 3500 980 3850 1764 Total 25700 25700 11970 20140 10885 18676 6622 3336 1980 Stage I (without cotton) (4300) 4300 - 4085 - 2859 Stage I (with cotton) 4300 7100 3010 4970 1806 3479 Stage II (with cotton) 5700 11400 3990 7980 3591 9576 Stage III (with cotton) 11400 2900 7980 2030 8778 3654 Total 25700 25700 14980 19065 14175 19568 9912 4228 1981 Stage I (without cotton) - - - - Stage I (with cotton) 4300 8500 3010 5950 1806 4165 Stage II (with cotton) 7100 12900 4970 9030 4473 10836 Stage III (with cotton) 14300 4300 10010 3010 11011 5418 Total 25700 25700 17990 17990 17290 20419 13027 5079 1982 Stage I (without cotton) - - - - - - Stage I (with cotton) - 4300 - 3010 - 2107 Stage II (with cotton) 8600 15700 6020 10990 5418 13188 Stage III (with cotton) 17100 5700 11970 3990 13167 7182 Total 25700 25700 17990 17990 18585 22477 14322 7137 1983 Stage I (without cotton) - - - - - - Stage I (with cotton) - - - - - - Stage II (with cotton) 4300 18600 3010 13020 2709 15624 Stage III (with cotton) 21400 7100 14980 4970 16478 8946 Total 25700 25700 17990 17990 19187 24570 14924 9230 1984 Stage I (without cotton) - - - - - - Stage I (with cotton) - - - - - - Stage II (with cotton) - 17200 - 12040 - 14448 Stage III (with cotton) 25700 8500 17990 5950 19789 10710 Total 25700 25700 17990 17990 19789 25158 15526 9818 1985 Stage I (without cotton) - - - - - - Stage I (with cotton) - - - - - Stage II (with cotton) - 15700 - 10990 - 13188 Stage III (with cotton) 25700 10000 1799 7000 19789 12600 Ttl25700 25700 17990 17990 19789 25788 15526 10448 1986 Stage I (without cotton) - - - - - - Stage I (with cotton) - - - - - - Stage II (with cotton) - 14300 - 10010 - 12012 Stage III (with cotton) 25700 11400 17990 7980 19789 14364 Total 25700 25700 17990 17990 19789 26376 15526 11036 1/ Projected progression through development stages by farmers is based on the farm budget for a typical farmer in the Plateau region as shown in Table 3b, with minor modifications to reflect constraints on adoption rates such as availability of improved seeds and capacity of project services. 2/ Average crop areas per farm (ha): cotton = 0.7; maize = 0.95 for farmers not growing cotton, 0 7 for farmers growing cotton. Average yields (kgs/ha)- cotton I = 600, II = 900, III = 1100; maize I = 700, II = 1200, III = 1800 (See Tables 3a and 3b) 3/ Assumed static development in absence of project. See para. 7 02. 4/ Figures in parentheses refer to farmers who grow food crops only. 5/ Cassava, Yams and various minor food crops are also grown. Areas and yields for these crops are assumed to remain the same and are not presented here. For the 25,700 farmers, crop areas and production are cassava = 5100 ha and 30,000 tons, yams and other = 10,300 ha and 72,000 tons. Production is substantially for family consumption (See Table 3a). Annex 4 Table 9 7000 RURAL DELOPMENT PROJECT IN COTON AREAS PROJECTIONS OF FARMERS. CROP AREAS AND CROP PRODUCTION NUMBSERS OP FARMERS CROP AREAS (Ha) TOTAL PRODUCTION (tons) INCREMENTAL PRODUCTION Cttcng Maise Corahum otton Maise Sorghum Cotton Maize Sorghum Cotton Maise Sorghum WITHOUT PROJECT 3/ 1977 and on Stage I (farmers with no Cotton) (9000) 3000 6000 - 4200 8400 - 2940 4700 Stage I (farmers with cotton) 4100 1500 2800 2460 1800 3360 1476 1260 1680 Stage II " 200 - - 120 - - 96 - - Oteg III Total 13300 4500 8800 2580 9000 11760 1572 4200 5880 WITH PROJECT 1977 Stage I (farmers with no cotton) (8300) 2800 5500 - 3920 7700 - 2744 3850 Stage I (farmers with cotton) 700 1700 1300 420 2040 3960 752 1478 1980 Stage IS " 4200 - - 2520 - - 2016 - - Stae 111 * 100 - - 60 6 3 -- Tol 13300 4500 8800 3000 5960 11660 2331 4177 530 759 -09 -50 1978 Stage S (farmers with no cotton) (6600) 2000 4600 - 2800 6440 - 1960 3770 Stage 1 (farmera with cotton) 1700 1200 1200 1020 1440 1440 617 1008 770 Stage St 4500 1300 3000 2700 5/ 1560 5/ 3600 2160 1482 2340 Stage III 500 300 - 315 Total 13300 4500 8800 4 020 5800 11480 3087 443 5 6280 1515 750 400 1979 Stage I (farmers with no cotton) (5000) 1700 3300 - 2380 4620 - 1666 2310 Stage 1 (farmers with cotton) 1700 1100 2100 1020 1320 2520 612 924 160 Stage 11 " 2300 1200 2700 1380 1440 3240 1104 1368 2106 Stage 111 4300 000 700 239 5 600 5/ 40 209 750 759 Total 13300 4500 8800 4980 374 - 11"220 I42I 4708 4430 2853 508 552 1980 Stage I (farmers with no cotton) (2500) 600 1900 - 840 2660 - 588 1330 Stage I (farmer with cotton) 2500 1700 2400 1500 2040 2880 900 1428 1440 Stage 1 3300 1500 3300 1980 1800 3960 1584 1710 7574 Stage 1 5 3000 700 1000 53000 840 1440 3150 1050 1096 Total 13300 4300 880 0 48 5500 10940 1 5634 4776 6640 4047 576 740 1981 Stage I (farmers with no cotton) - * - - * - Stage 1 (farmere wIth cotton) 2500 1600 3300 1500 1920 3960 900 1344 1980 Stage II 4100 1700 3800 2460 2040 4560 1968 1938 2964 Stage I1I 1 6700 1200 1700 4020 1440 2040 4221 1800 1836 Total 13300 4500 8800 7980 5400 10560 7089 5082 6780 5517 887 900 1982 Stage I (farmers with no cotton) - - - - - - - - Stago 1 (farmers with cotton) - 800 1600 - 960 1920 - 672 960 Stage II " 5000 2000 5000 3000 2400 6000 2400 2280 3900 Stage II0 8300 1700 2200 4980 2040 2640 5229 2550 2376 Total 13300 4500 8800 7980 5400 10560 7629 5502 7236 6057 1302 1356 1983 Stage I (farmers with no cotton) - - - - - - - - - Stage I (farmers with cotton) - - - - - - 1 - - Stage II " 2500 2300 6100 1500 2760 7320 1200 7472 4758 Stage 1It 1 10800 2200 2700 6480 2640 3240 6804 3300 2916 Total 13300 4500 8800 7980 5400 10560 8004 5922 7674 6432 1727 1794 1984 Stage t (farmers with no cotton) - - - - - - - Stage I (fermero with cotton) - * - - - - - - - Stago II " - 1800 5700 - 2160 6840 - 2052 4446 Stage III " 13300 2700 3100 7980 3240 3720 8379 4050 3348 Total 13300 4500 8800 7980 5400 10560 8379 6102 7794 6807 1902 1914 1985 Stage I (farmers with no cotton) - - - - - - - - - Stag I (farmer with cotton) - - - - - - - - Stage II " - 1300 5200 - 1560 6240 - 1482 4056 Stage II1 "13300 3200 3600 7980 3040 4320 8379 4800 3888 Total 13300 4500 8800 7980 5400 10560 8379 6282 7944 6807 7082 2064 1986 Stage I (farmers with no cotton) - - - - - - - - - Stage T (farmers with cotton) - - - - - - - - - Stage 10 1 - 800 4700 - 960 5640 - 912 3666 Stage I1I " 13300 3700 4100 7980 4440 4920 8379 5550 4428 Total 13300 4500 8800 7980 5400 10560 8379 6462 8094 6807 7262 2214 1/ Projected progression through development stages by farmers is based on the farm budget for a typical farmer in the Central region as shown in Table 4, with minor modificatxons to reflect constrints on adoption rates such as availability of improved seeds and capacity of project se-rces 2/ Average crop areas per farm (ha) cotton - 0 6, cereale - 1 4 for farmers without cotton, 1 2 for farmers with cotton Macae is grown in the south of the region sorghum in the north About one third of the farmers in the region grow maize aa the main cereal, the remaining two thirds grow sorghum Average yielIds (kg/ha) cotton stage I = 600, II - 800, III = 1050, maize stage I - 700, II 950, III = 1250, sorghum stage I - 500 II = 650, I = 900 (See Table ha) Ahout 0 6 a of yams and othrt crop acre also grown by a typical farmer, mainly for on farm consumption Production of these crops (about 56,000 tons) is not anticipated to he affected by th pr.joc 3/ Assumed static development in absence of project See para 7 02 4/ Figures n parentheses refer to farmers who grow food crops only 5/ Only half of areas shown are in development stages II or III Remainder is in stage I due to constraints of cotton rotation Annex 4 Table 10 7000 RURAL DEVELOPMENT PROJECT IN COTTON AREAS PROJECTIONS OF FARMERS, CROP AREAS AND CROP PRODUCTION KARA REGION 1/ 2/ YEAR NUMBERS OF FARMERS: CROP AREAS (Ha.) TOTAL PRODUCTION (Tons) INCREMENTAL PRODUCTION (Tons) Cotton Sorah" Groundnuts Cotton Soghum rc-At Cotton Sorghum Groundnuts Cotton Sorlhum Groundnuts 3/ WITHOUT PROJECT Stage I (without cot)(5300)4/ 5300 5300 - 4240 530 - 2120 212 (1977 and on) Stage I (with cotton) 2000 2000 2000 600 1600 200 210 800 80 Stage II " "- - - - - - - - Stage III " "-- Total 7300 7300 7300 600 0040 730 210 2920 292 WITH PROJECT Stage I (without cot)(4600) 4600 4600 - 3680 460 - 1840 184 1977 Stage I (with cotton) 1000 2700 2700 300 2160 270 105 1080 108 Stage II" " 1700 - - 510 - - 382 - - etagn ITS ' " 277-0 0 Total 7300 7300 7300 010 5840 730 487 2920 292 277 00 Stage I (without cot)(3600) 3600 3600 - 2880 360 - 1440 144 1978 Stage I (with cotton) 1000 2000 3700 300 1600 371 800 148 Stage II " 2700 1700 - 810 1360 - 607 830 - Stige III - - - 502 150 0 Total 7300 7300 7300 1110 5840 730 712 3070 292 Stage I (without cot)(2600) 2600 2600 - 2080 260 - 1040 104 1979 Stage I (with cotton) 1000 2200 3700 300 1760 370 105 880 148 Stage II " " 2000 2300 - 600 1840 - 450 1122 - Stage TI " " 1700 200 1000 510 160 100 459 128 100 Total 7300 7300 7300 1410 5840 730 1014 3170 352 804 250 60 stage I (without cot)(1300) 1300 1300 - 1040 130 - 520 52 1980 Stage I (with cotton) 1300 2300 4000 390 1840 400 136 920 160 Stage II " " 2000 2700 - 600 2160 0 450 1318 - Stags III" " 2700 1000 2000 810 800 200 729 640 200 Total 7300 7300 7300 1800 5840 730 1315 3398 412 1103 478 120 Stage I (without cot.) - - - - - - 1981 Stage I(ith cotton) 1300 2600 4300 390 2080 430 136 1040 172 Stage IT " " 2300 3000 - 690 2400 - 517 1464 - Stags III " 3700 1700 3000 1110 1360 300 999 1088 300 7300 7300 7300 2190 5840 730 1652 3592 472 1442 672 180 Stage I (without cat) - - - - - - - - - 1982 Stage I (with cotton) - 1300 3300 - 1040 330 - 520 132 Stags TI " " 2700 3700 - 810 2960 - 607 1806 - Stage ISI " " 4600 2300 4000 1380 1040 400 1242 1472 400 Total 7300 7300 7300 2190 5840 730 1849 3798 532 1639 878 40 Stage I (without cot) - - - - - - - - - 1983 Stage I(with cotton) - - 2300 - - 230 - - 92 Stage IS " 1300 4300 - 390 3440 - 292 2098 - Stan III" " 6000 3000 5000 E 1800 2400 500 1620 1920 500 Total 7300 7300 7300 2190 5840 730 1912 4018 592 1702 1098 300 Stage I (without cot) - - - - - - - - - 1984 Stage I (with cotton) - - 1300 - - 130 - - 52 Stage ST " - 3700 - - 2960 - - 1806 - Stage ITT " " 7300 3600 6000 2190 2880 600 1971 2304 600 Total 7300 7300 7300 2190 5840. 730 1971 4110 657 1761 1190 360 SasI(withaut tat) - - - - ----- 1985 Stage I (with cotton) - - 300 - - 30 - - 12 Stage II " " - 3000 - - 2400 - - 1464 - Stage III " 7300 4300 7000 2190 3440 700 1971 2752 700 Total 7300 7300 7300 2190 5840 730 1971 4216 712 1761 1296 420 Stage S (without cot) - - - - - - - - 198b Stage I (with cotton) - - - - . Stage TI " - 2300 - - 1840 - - 1122 - Stage III " " 7300 5000 7300 2190 4000 730 1971 3200 730 Total 7300 7300 7300 2190 5040 730 1971 4322 730 1761 1402 438 1/ Projected progression through development stages by farmers is based on the farm budget for a typical farmer in the Kara region as shown in Table 5b, with eInor modifliationo to reflect constraints on adoption rates such as availability of improved seeds and capacity of project services. 2/ Average crop arean per furm: cotton0.3 ha, sorghum = 0.8 ha, groundnuts - 0.1 ha. Average yields (kgs) per hectare: cotton I = 350, 1I = 750. III = 900* sorghum I - 500, II - 610, III = 800, Groundnuts I 400, II = 1000. Only 0.3 ha of sorghum is improved (stages I or III) due to rotational constraints proviedf y co tton area. Stags IT sod III sorghum are, and production figorendi re to entire sorghum crop area and production grown by sorghum stage II sod I I fsreonr v.a nana rngu yilsh n tgaII ad III are correspondingly weighted (Sea note 5 of Tahle 5s). 3/ Assumed static development in ubnce of projec. See pars 7.02. / Figures in parentheses refer to farmers who grow food crops only. Ae. 4 Table IS TOOO RURAL DEVELOPMENT PROJECT IN COTTON AREAS SAVANNA REGION 1/, 2/. 5/ YEAR NUMBERB OF FARMERS CROP AREAS (Ha) TOTAL PRODUCTION (tons) INCREMENTAL PRODUCTION (tons) Cotton Songh Groundnuts Cotton orghm Groundnuts Cotton SorRhun Groundouta Cotton Sorghu Groundnuts WITHOUT PROJECT (1977 and on) 2/ Stage I (farmers without cotton) (4000) 4/ 4000 4000 - 12000 2400 - 6000 960 Stage I (farmers with cotton) 3000 3000 3000 1500 8400 1500 675 4200 600 Stage II - - Stage U1U "1 - : Total 7000 7000 7000 1500 20400 3900 675 10200 1560 WITH PROJECT 1977 Stage 0 (farmers without cotton) (3000) 3000 3000 - 9000 1800 - 4500 720 Stage 0 (farmers with cotton) 1000 4000 4000 50 11200 2000 221 5600 800 SIage 01 3000 - - 1500o - - 1275-- Stoge III " 21- 00 - - tae 7000 7000 700 2000 20200 300 1500 1010 1620 023 -100 -40 1970 Stage I (farmers without cotton) (2200) 2200 2200 - 6600 1320 - 3300 326 Stage I (farmers with cotton) 800 1000 400 400 5040 2400 180 2320 060 Stage 1 4000 300 - 2000 9400 - 1700 4662 - Stoge II1 '-- -48 120 28 --72- Total 7000 7000 7000 2400 2004 3720 1880 104827 1979 Stage I (farmers without cotton) (8400) 1400 1400 - 4200 840 - 2100 336 Stage I (farmers with cotton) 600 1600 2600 400 4400 1300 135 2240 520 Stage II " 1600 3400 - 900 9520 - 765 5284 - Stage 111 300 600 3000 1506 1600 1500 1300 1084 1500 Total 7000 7000 7000 2800 1988 3640 2445 10O708 2Y356 1770 508 796 1980 Stage I (farmere without cotton) (800) 800 600 - 2400 480 - 1200 192 Stage I (farmers with cotton) 60 1500 2200 300 4200 1100 135 2100 440 Stago 11 1600 3700 - S8o 10360 - 600 5750 - Stage OUT " 4000 1000 4000 2000 2800 2000 2000 1806 2000 Total 7000 7000 7000 35100 19760 3580 3175 10056 2830 2540 656 1072 1981 Stage I (farmers without cotton) - - - - - - - - Stage I (farmers with cotton) 000 1400 2200 400 3920 1100 180 1960 440 Stage II " 1400 4000 - 700 11200 - 595 6216 - Stage HI1 4600 1600 4800 2400 4480 2400 2400 2890 2400 Total 7000 7000 7000 3500 19600 3500 3T175 11066 2040 7300 066 1280 1982 Stage I (farmers without cotton) - - - - - - - Stage I (farmers with cotton) - 800 1400 - 3240 700 - 1120 280 Stage II " 1400 4000 - 700 1120 - 591 6216 - etage 111 5600 2200 5600 3750 6160 2000 2000 3973 2100 Total 7000 7T07 0 300 19600 350 3395 11309 -To 8- 2720 1109 1577 1983 Stage I (Earmers without cotton) - - - - - - Stage I (farmers with cotton) - - -00 - - 400 - 160 Stage II 4200 - 400 11760 - 340 6527 - Stage I 1 62000 2800 6200 3100 7840 3100 3100 3057 3100 Total 7000 7000 7000 00 19600 3500 3440 11584 3260 3765 134 170 1984 Stage 1 (farmers without cotton) - - - - Stage I (farmers oith cotton) - - - - Stage I " - 3600 - - 10060 - - 5594 - SIg r 5 g 7000 3400 7000 3500 9520 350 50 610 50 Total 7000 7000 7000 3500 19600 3500 3500 11734 3100 2825 1534 1940 1985 Stage I (farmers without cotton) - - - - - - - - - Stage I (farmers with cotton) - - Stage 1I " - 3000 - - 8400 - - 4662 - State 111 7000 4000 7000 3500 11200 3500 3100 7224 3500 Total 7000 7000 7000 3500 19600 3500 3500 11006 3500 2825 1686 1940 1906 Stage S (fearnert without cotton) -- - - - - - - - Stage 0 (formers nith cotton) - - -- - ---- Stag 00 II - 2400 - - 6720 -- 3730 - Stage 111 7 000 46n0 7000 3500 12000 3500 3500 8306 .3500 Total 7000 7000 7000 350 19600 3500 3500 12038 3500 2025 1838 1940 1/ Projected progression through development stages by farmers is based on the farm budget for a typical farmer in the Savanna region as shown in Table 6b, with minor modificatio.s to reflect constraints on adoption rates such we availability of improved seed and capacity of project services. 2/ Average crop areas per farm (ha.): cotton = 0.5, sorghum = 3.0 for farmers not grosing cotton, 2.8 for farmers growing cotton; groundnuts = 0.6 for farmers not growing cotton. 0.5 for farmers growing cotton. Average yields (kgt/ha):cotton I - 450, II - 850, 11 = 1000; sorghum I = 500, II = 555 I = 645; groundnuts I = 400, II = 1000. (See Tables 6a and 6b) 3/ Asssued static development in absence of project. See aro 7.02. 4/ Figures in parentheses refer to farmers vbo grow food crops only. 5/ A typical former would also grow about 0.1 ha of legumes and tubero for family consumption. Areas and yields of these crops are not expected to change. Production of these crops by the 7,000 farm families amounts to about 280 tons. By 1981 about 350 farmer are projcted to using brk oxeun. Oc allowing for increwses So fern area this is lihely to further stioulete production of project cropo. (See Table 4c fnr illustrative fecm budget) , hut eccncnt hosnoct bec tIdiot of chic in the project ions of prnjec t output. Annex 4 Table 12 TOGO RURAL DEVELOPMENT PROJECT IN COTEON AREAS PROJECTIONS OF FARMERS, CROP AREAS AND CROP PRODUCTION: ALL REGIONS 1/ CALENDAR YEAR, NUMBERS OF FARMERS GROWING CROP AREAS (Ha) TOTAL PRODUCTION (Tons) INCREKETAL PRODUCTION (Tons) PROJECT YEAR AND STAGE OF DEVEEAIPMENT Cotton Maize SottV Groundnuts Cotton Maie Sorgh Grodnuts C.otton Maize Sorghum Groundnuts Conton Raize Sornn Grondouts WIrHouT PROJECT 3/ (1977 and on) Stage I without cotton (34,000) 18,7R0 15,300 9,300 - 19,115 24,640 2,930 - 13,380 12,320 1,170 Stage I with cotton 18,800 11,500 7,800 5,000 11,35R 0 13,360 1,700 6,.40 6,1V' 6,680 680 Stage I 0 I " - - - 330 - - - 280 - - StageII " ' 2/ - - - - - - Total: Project Participants 19,300 11,500 13,100 10,300 D1,60 8,RRO 17,6R0 2,23R - - - Total: All Categories 53,300 30,200 23,100 14,300 - 27,915 38,000 4,630 6,720 19,54R 19,RR0 l,85R WTH PROJECT PY I Stage I without cotton (30,200) 17,100 - 13 100 7,600 - 17,505 20,380 2,260 - 12,250 10,190 904 Stage I with cotton 9,100 13,100 10,000 6,700 5,700 10,020 17,320 2,270 3,260 7,020 8,660 908 Stage EI " " 13,60 - - - 7,820 - - - 6,350 - - - Stage III " " 400 - - - 270 - - - 290 - - - Total: Project Participants 23,100 13,100 14,600 11,300 13,790 10,020 21,000 t,730 10,200 7,020 8,100 850 3,480 -270 -150 -40 Total: All Categories 53,300 30,200 23,100 14,300 - 27,525 37,700 4,530 - 19,270 18,850 1,810 PY 2 Stago I without cotton (23,800) 13,400 IR,400 5,800 - 13,630 15,920 1,680 - 9,54R 7,960 672 Stago I with cotton 6,400 10,500 5,000 8,500 3,750 7,950 8,080 2,770 2,110 5,570 4,040 1,108 Stage SE " " 22,00 6,300 7,700 - 13,07R 5,060 13,360 - 11,270 5,680 7,830 - Stage I1I " " 1,100 - - - 720 - - - 780 - - - Total: Project Participants 29,500 16,R00 16,300 12,100 17,540 03,0!0 24,320 3,130 14,160 11,250 11,560 1,020 7,640 1(250 830 -70 Total: All Categories 53,300 30,200 23,100 14,300 - 26,640 37,360 4,450 - 20,790 19,830 1,780 PT 3 Stage I without cotton (17,600) 10,300 7,300 4,000 - 10,550 1),900 1,100 - 7,380 5,450 440 Stage I with cotton 6,300 6,800 5,900 6,300 3,680 5,310 .,760 1,670 2,073 3,720 4,380 670 Stago II " 15,400 11,200 8,400 - 9,390 8,440 14,600 1,600 8,180 9,770 8,510 - Stage TEI " " 14,000 1,900 1,500 4,000 8,090 1,50 2,680 - 8:520 2,510 1,970 1,600 Total: Project Participants 35,700 19,900 18,400 12,900 21,160 15,330 28,120 3,530 18,770 16,000 14.510 2,19R 2050 3,840 1,310 860 Total: All Categories 53,300 30,200 23,100 14,300 - 25,880 36,940 4,370 - 23,380 20,310 2,710 PY 4 Stage I without cotton (8,900) 4,900 4,000 2,100 - 4:925 6,100 610 - 3 450 3,050 240 Stage I with cottoc 8,700 8,800 6,200 6,200 55200 7,010 8.920 1.500 2,980 4,900 4,460 600 Stage II " 12,600 12,900 9,700 - 7,370 9,780 16,480 - 6,300 11,290 9,640 - Stage III " " 23,100 3,600 3,200 6,000 13,790 2,870 5,040 2,200 14,660 4,700 3,747 2D200 Total: Project Participants 44,400 25,300 20,400 13,500 26,360 19,660 31,480 3,830 23,940 20,890 17,640 2,740 17,220 4,800 1,890 1,190 Total: All Categories 53,300 30,200 23,100 14,300 - 24,585 36,540 4,310 - 24,340 20,890 3,040 PT 5 Stage I without cotton - - - - - - - --- -- Stage I with cotton 8,900 10,100 7,300 6,500 5,300 7,870 9,960 1,530 3,030 5,510 4,980 610 Stage II " t" 14,900 14,600 10,800 - 8,820 11,070 18,160 - 7,530 12,770 10,660 - Stage III " " 29,500 5,500 5,000 7,800 17,540 4,450 7,880 2,700 18,630 7,220 5,820 2,700 Total: Project Participants 53,300 30,200 23,100 14,300 31,660 23,390 36,000 4,230 29,210 25,500 21,440 3,310 22,400 5,960 2,40 1,60 Total: All Categories 53,300 30,200 23,100 14,300 - 23,390 36,000 4,230 - 25,500 21,440 3,310 PY 6 Stage I without cotton - - - - - - - - - - - Stage I with cotton - 5,100 3,700 4,700 - 3,970 5,200 1,030 - 2,780 2,600 410 Stage I 17,700 17,700 12,700 - 10,530 13,390 20,160 - 9,020 15,470 11,920 - Stage ISI " " 35,600 7,400 6,700 9,600 21,130 6,030 10,640 3,200 22,440 9,730 7,820 3,200 Total: Project Participants 53,300 30,200 23,100 14,300 31,660 23,390 36,000 4,230 31,460 27,980 22,340 35010 24,740 8,440 3,340 1,760 Total: All Categories 53,300 30,200 23,100 14,300 - 23,390 36,000 4,230 - 27,980 22,340 3,610 PY 7 Stage I without cotton - - - - - - Stage I with cotton - - - 3,100 - - - 630 - - - 250 Stage II " " 8,900 20,900 14,600 - 5300 15,780 22,520 - 4,540 18,250 13,390 - Stage I11 44,400 9,300 8,500 11,200 26,360 7,610 13,480 3,600 28,000 12,240 9,890 3,600 Total: Project Participants 53,300 30,200 23,100 14,0 31,660 23,390 36,000 4,230 32,5 30,490 23 280 3,850 Total: All Categoriee 53,300 30,200 23,100 14,300 - 23,390 36,000 4,230 - 30,490 23,280 3,850 PY 8 Stage I without cotton - - - -- -0 - - - Stage I with cotton - - 21,300 - - - 130 - - - 50 Stage IS " " - 19,000 13,000 - 14,200 19,880 - - 16,500 11,850 - Stage III " 53,300 11,200 10,100 13,000 31,660 9,190 16,120 4,100 - 14,760 11,790 4,100 Total: Project Participants 53,300 30,200 23,100 14,300 31,660 23,390 36,000 4,230 33,640 31,260 23,640 4,150 24,920 11,720 4,640 2,500 Total: All Categories 53,300 30,200 23,100 14,300 - 23,390 36,000 4,230 - 31,260 23,640 4,150 PY 9 Stage I without cotton - - 30- - - - - - - Stage I with cottnn - - 300 - - - 30 - - - 10 Stage II - 17,000 11,200 - - 12,550 17,040 - - 14,670 10,180 - Stag, II 53,300 13,200 11,00 14,000 31,660 10,840 18,960 4,200 - 17,400 13,870 4,200 Total: Project Participants 53,300 30,200 23,100 14,300 31,660 23,390 36,000 4,230 33,640 32,070 24,050 4,210 28,920 12,530 5,050 2,340 Total: All Categories 53,300 30,200 23,100 14,300 - 23,390 36,000 4,230 - 32,070 24,050 4,210 PY 10 Stage I without cotton - - - - - - - - - - - - Stage I with cotton - - - - - 1 8--2- Stags II " - 15,100 9,400 - - 10,970 - - - 12,920 8,520 - Stage II" 53,300 15,100 13,700 14,300 31,660 12,420 14,200 4,230 - 19,920 15,930 4,230 Total: Project Participante 53,300 30,200 23,100 14,300 1 31,660 23,390 21,800 4,230 33,640 32,840 24,450 4,230 26,92g 13,100 5,450 2,388 Total: All Categeties 53,300 30,200 23,100 14,300 j23,390 36,000 4,230 - 32,840 24,450 4,230 1/ Per details hy regio7 see Table1 to 11. 2i Prejeent partinipaenta gr-n Cotton. Ry PR 5 all fartners, covred by the project are proected to grow cotton and thne project participmnta total will equal the total Roe all tatcgories. Asmated satic. See paragraph 7.02. 1722 4,0e180c9 ANNEX 5 Page 1 TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS Ox-drawn Cultivation 1. Background. The cattle population in Togo is estimated to be about 200,000 head. The highest concentration, some 75,000 head or about 40% of the total, has been traditionally in the northernmost Savanna region where, as a result of earlier attempts to introduce work oxen, some 1,300 farms use ox-drawn cultivation (1975 estimate). In other regions, ethnical reasons and lack of interest in participating in courses organized at ox-training centers prevented the introduction of ox-drawn cultivation, and, as a result, almost no oxen are used for field work outside the Savanna region. 2. The Breeds. The main breed is the trypanotolerant humpless Borgou, which, in the North, is interbread with the Zebu. This cross appears to be partricularly suitable for field work. In addition, there is a small herd of N'dama cattle, about 250 head in 1975, imported about eight years ago from Mali. These animals are similar to the Borgou-Zebu cross. Although generally of a lighter type, they can be well used for cultivation with corresponding light equipment, which has been developed in several West African countries (e.g., Ghana, Senegal). According to a 1974 survey, the average animal reaches a weight of about 200 kg in three to four years, and training can begin at this time. Full working output would be achieved around the fifth to seventh year when the average weight reaches 300 kg. 3. Training and Demonstration. In view of the limited success of past programs to introduce ox-drawn cultivation in Togo, SOTOCO would in most areas basically aim at laying foundations for a more rapid ox-drawn cultiva- tion in follow-up projects. Instead of the old and unsuccessful method of calling farmers to ox-training centers, SOTOCO would use mobile teams. These teams would go out and live in the villages, and there on-the-spot, would demonstrate ox-drawn cultivation and train farmers to handle oxen and carry out work on their own fields. One team would consist of two trainers, two pairs of oxen, two multipurpose toolbars (with plow, ridger and harrow), one seeder, and one ox cart. The capital cost would be as follows: Pair of oxen CFAF 50,000 (US$204) Multi-purpose toolbar CFAF 30,000 (US$122) Multipurpose seeder CFAF 30,000 (US$122) Ox cart CFAF 60,000 (US$245) 4. SOTOCO would purchase oxen in the northern part of the country and would operate 23 ox-demonstration teams in key areas of all regions. Large villages in areas with good agricultural potential and progressive ANNEX 5 Page 2 farmers would be given preference. A team would normally stay in the village for one agicultural season to thoroughly acquaint farmers with all successive field operations and to demonstrate the attractive potential of oxen for transport. The teams would be an integral part of the extension service. The SOTOCO Regional Managers would be generally responsible, and specifically for planning the deployment of teams within the region. Short-term tasks and day-to-day work would be supervised by Chiefs of Sectors and Subsectors, with the close cooperation of the local extension agents. 5. Veterinary services, particularly vaccination against bovine pleuro- pneumonia and other contagious diseases, would be provided by the sectoral veterinary assistants. Daily hygiene and tick control would be the responsi- bility of the ox trainers. 6. It is planned that 13 ox training teams would be operative by PY 2, and the full complement of 23 by PY 3. A likely phasing for each activity area is given in the table below: No. of ox training teams Region Sector PY 1 PY 2 PY 3 Total (PY 3-5) Plateau Akposso - 3 3 6 Central Bassar 2 3 2 7 Soutouboua - 1 2 3 Kara Pagouda - 1 1 2 Savanna Dapaon - 2 1 3 Mango - 1 1 2 11 10 23 7. Ox-drawn cultivation on Farms. Because of the extensive ownership of cattle and modest past success with training and introduction of ox-drawn cultivation in the Savanna, this region would be the prime target for adopting ox-drawn cultivation by farmers. Farmers who own animals of a suitable age and are interested would be given preference. Starting in PY 3, medium-term credit would be made available to those farmers for the purchase of a multi- purpose toolbar, with necessary attachments for field works, an ox cart and yoke, chain, and cord. A moderate adoption rate has been assumed, of 50, 100, and 200 farmers in PY 3, 4 and 5 respectively. Vaccinations and other veterinary services would be provided to farmers by the Savanna Department of Animal Husbandry, which is a regional unit of the Direction of Animal Husbandry and Veterinary Services in Lome. The regional Department is under a Veterinary Inspector. The Dapaon sector has six and the Mango sector three Veterinary Stations, with a Veterinary Assistant in charge of each station. SOTOCO ex- tension service would encourage farmers to make good use of available grazing land and to utilize food crop residues, such as sorghum and millet stover, and groundnut hay. Farmers would also be taught to supplement rations for oxen during periods of field work and heavy transport with cereal middlings, rice bran and low-grade cottonseed, wherever available. During these periods, the ANNEX 5 Page 3 recommended supplement rate of fodder concentrate would be 1 kg per animal per day. Maintenance of ox-drawn equipment would be done by farmers themselves and repairs would be carried out by existing village blacksmiths . Studies on ox cultivation in the Savanna region suggest that one ox team works on average about 6 ha per season. Thus the 350 new ox teams introduced under the project would cultivate over 2,000 ha of land by PY 5. 8. The economy of ox-drawn cultivation is detailed in Annex 4, table 6 c. It is assumed that after introducing ox-drawn cultivation the average farmer (farm size 3.9 ha) would increase his cultivated area by 0.5 ha and put it under the usual cotton-foodcrop rotation (Annex 4, para 9). In addition to increased activities on his own farm, he would provide hire services to other farmers consisting annually on the average of about 1 ha plowing and 20 ox team days of transport. The Credit for purchasing ox drawn equipment (CFAF 95,000; US$388) would be supplied from SOTOCO at 10% interest rate and would be repaid over seven years. Acquisition of this equipment by farmers may be spread over several years. In case response is higher than expected, addition- al credit would be made availale by CNCA to farmers under SOTOCO's control, at the same time. The net cash income per farm would more than double with the introduction of work oxen and the cash income per ALE day would nearly triple. ANNEX 6 Page 1 TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS Seed Multiplication and Research A. Seed Multiplication 1. Background. For food crops, there is no organized commercial or institutional seed multiplication service in Togo that produces seed on a large scale. However, during 1972-75, IRAT has been multiplying small amounts of varieties of cereals and legumes. These seed were handed over to the SORADs, who were responsible for their distribution, and for supervising the crops; no records are availabe on this effort. Fortunately, in 1976 IRAT produced sufficient amounts of cereal and legume seed of promising varieties (Annex 4) to enable the required quantities of improved seed to be phased into the project in PY 3. The only exception is the groundnut variety RMP-12, where seed stock is insufficient to cover demand in PY 3. The seed requirement for PY 3 would, therefore, be complemented by other high yielding varieties (RMP-91, 57-313, S28-206). As could be expected, the situation for cotton, a single crop backed by a specialized research organization, is more advanced. Since the introduction of G. hirsutum in Togo, IRCT has been meeting the country's annual requirements of breeders' and foundation seed. Until 1975 cotton seed was distributed through the SORADs; but now the distribution and the further mutliplication is the responsibility of SOTOCO. 2. Organization. Under the project, the organization of seed multipli- cation services would be improved and production would be coordinated to meet annual project requirements. Basically, the production of cotton and ground- nut seed would pass through four multiplication stages, namely breeders', foundation, registered, and certified seed; while multiplication of maize and sorghum would be completed after a three year period. As previously, breeders' seed would be produced on IRAT and IRCT stations. Responsibility for the production of food crop foundation seed would be shared between IRAT research and the SOTOCO Seed Multiplication Unit (SMU). Further stages of seed multi- plication would be the responsibility of the SMU. 3. The SMU would be provided with staff, transport, buildings, machinery and equipment and would be administratively headed by SOTOCO's Technical Director. An internationally recruited Seeds Agronomist would be in direct charge of SMU for the first three years of project duration. Starting in PY 2 he would be understudied by a Togolese Agronomist who would take over full responsibilities for seed production for the remaining years of the project. At SOTOCO headquarters, in Atakpame, a seed testing laboratory and office complex would be built and equipped in PY 1. ANNEX 6 Page 2 The laboratory would be staffed with a Seeds Analyst, who would be responsible for seed quality control. Provisions have ben made in project costs for appropriate outside training of the Seeds Analyst (e.g., at IITA, Ibadan). For the actual seed multiplication Government would make available by Sep- tember 30, 1977 to SOTOCO and SMU three "Centre Polyvalent", which would be converted into Seed Production Centers (SPC). Each SPC would have 80 - 100 ha of arable land to provide enough space for the multiplication plots and required isolation distances. The most suitable locations for the SPCs would. appear to be Ebeva near Atakpame in Plateau region, Kitangbao in Central region, and Barkoissi in the Savanna. The SPCs would make use of the Ce tres Polyvalents' office and storage faclities. An additional store of 150 m would be built at Barkiossi to handle the bulky groundnut seed production. Each SPC would be staffed by a manager, a tractor driver and two permanent laborers. Casual labor would be hired for labor peaks. A tractor with a full range of agricultural machinery and seed-handling equipment would be supplied for each SPC. The SPC managers would be trained by the Seeds Agronomist to act also as seed inspectors, to oversee multiplication plots that would be grown in the vicinity of the SPC by contract farmers. The SPC managers would be equipped with motorcycles. SPCs would produce foundation and a part of the registered seed. The bulk of registered and all certified seed for food crops would be grown by contract farmers, who would receive a premium of CFAF 5.0 for each kg. of foundation and registered seed produced. Weighing, cleaning, grading, dressing, bagging and labelling of food crop seed would be carried out at SPCs. 4. Cotton seed production would be carried out without SPC involve- ment. Breeders' seed would originate at the IRCT research station at Kolokope in the Plateau region. The foundation seed stage would be produced at the cooperative Mutual Est Mono. The cooperative is located a short distance from Kolokope, enabling seed growing to be closely supervised by IRCT research staff, and the coop farmers have alrady had several years of experience with cotton seed productdion. They would recieve a premium of CFAF 5/kg of seed cotton. The registered and certified stages would be grown by project farmers in the Savanna region. Seed cotton from multiplication areas would be marked and transported, stored and ginned separately. The ginneries at Atakpame and Lama Kara would be responsible for cleaning, dressing, weighing, bagging and labelling cotton seed. 5. The proposed seed production structure based on cooperation of IRAT, IRCT and SOTOCO would be the first step to a well organized integrated seed multiplication system capable of producing substantial quantities of high- quality seed. In view of the organizational background and large geographical coverage of the system, it is hoped that it would serve as a beginning for a national seed multiplication organization to be established in Togo after several years of experience with seed production under this project. ANNEX 6 Page 3 6. Seed Requirements. During this project period, advanced farmers would require quantities of seed summarized in the following table: Seed Requirements (t) Crop PY 1 2 3 4 5 Cotton 500 630 760 950 1,140 Maize - - 30 50 80 Sorghum - 9 19 26 Groundnuts - 160 220 270 Under the project, cotton seed would be replaced every year, while seed of food crops would be changed every third year and the farmer would plant home-grown seed every second year. Timely delivery of chemicals and super- vision of seed dressing on farms in alternative years would be the responsi- bility of SOTOCO extension agents. Phasing of seed production stages and seed requirements over the five project years are given in Table 1, while utilization of the first and second generation seed (F and F 2) in PY 1 to 10 are presented in Table 2. B. Research 7. Background. Agricultural research on annual crops has been in the hands of two commodity-oriented institutes: IRAT, for research work on food crops, and IRCT on fibre crops. Both institutes have their administrative headquarters and leading personnel in Lome, while supporting staff is carrying out field trials on a regional basis. Each institute works through a network of permanent substations which are complemented by temporary sites in ecologi- cally important areas of the country. IRCT has a well-equipped Central Research Station in Kolokope in the Plateaux region. Soil studies, classifi- cation, mapping and analytical work is done by ORSTOM (Office de la Recherche Scientifique et Technique Outre-Mer), which occupies a well-established institute in Lome. Government created recently a multidisciplinary research institute (Institut Polyvalent de Recherches) with headquarters at Cacavelli near Lome. This agency has a limited staff and carries out a limited program; but it is possible that the agency could eventually become responsible for overall research coordination, some basic research, and laboratory services. 8. Regional Cooperation. A recent develoment in the field of research in tropical agriculture has been the creation of a network of international ANNEX 6 Page 4 institutes. The level of financing, the availability of sophisticated laboratory equipment, and staffing with scientists of top caliber, enable these institutes to carry out fundamental research which a country of the size of Togo cannot afford to pursue individually. Togolese research, however, could derive substantial benefits from obtaining scientific support for its activities from international institutes, especially IITA, which is relatively close. Togolese research could focus on adaptive work, building on basic data developed by IITA, and deriving full bnenefits from regional cooperation. It can also be strengthened by technical support and training facilities offered by IITA. IITA has agreed to participate in preparation of detailed trials plans, and would make periodic visits to the project area for consultations, and provide support services (analytical and statistical) as needed. It is anticipated that in carrying out this program, IITA scientists would visit the project area twice a year. 9. Field Trials under the Project. The project would finance and thus have direct influence on several IRAT and IRCT field substations which are located in areas of expected heaviest project activities. The work program of these stations would be prepared in cooperation with IRAT and IRCT and of SOTOCO's technical staff. Essentially these stations would carry out regional variety screening, basic crop nutrition of new varieties, plant population, spacing, cultivation and crop protection trials. They would also be involved in improving methods of protection and storage of harvested grain crops. The stations would act on one hand as points of release for improved crop recommendations and of demonstration items to be disseminated by SOTOCO and on the other hand as points of reception for research problems fed back from rural areas through the network of SOTOCO extension agents. Each sub- station would be equipped with a small store and basic materials such as measuring tapes, a scale, baskets, bags, handling and drying floor. In charge would be an experienced research agent responsible for running the trials and keping records. The stations to be integrated into the SOTOCO field trial compbnent are the following: Region Plateau Central Kara Savanna Food Crops Amoutchou Kitangbao Atalote Toaga Notse Tamerma Nagbeni Cotton Kouve Dalanda Kadjalla Fosse aux Lions Asrama Kabou Est-Mono 10. Substations would be supported by a flexible system of simplified field trials and demonstrations carried out directly on farmers' fields, which ANNEX 6 Page 5 would serve the dual purpose of verifying research results in ecological conditions different from the substations and of demonstrating to farmers improved methods of crop management. Particularly successful field trial and demonstration sites would be used for field days to acquaint a large number of farmers with these new methods. This village field trial and demonstration program would be planned in cooperation with IRAT and IRCT and the sites would be subject to periodic supervision by their staff who would be invited to participate in major field days. The SOTOCO Technical Director would be in overall charge of the project field trial component and would be assisted by two professional agronomists, one for the southern and the other for the northern part of the project area. Provisions have been made for training these agronomists at IITA, which is equipped to carry out training programs on experimental techniques and evaluation, on production research of maize, tuber crops, cowpeas, inter-cropping and minimum tillage. Training sessions are conducted for periods of about six months to cover a whole cropping season. It is anticipated that two SOTOCO agronomists would participate in such sessions in the early project years. TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS PHASING OF SEED PRCDUCTION STAGES AND SEED REQUIREMENTS Production Stage Breeders' Foundation Registered Certified Gen.release 1T 2/ 3/ Crop PY t PY ha t/ha t PY ha t/ha t PY ha t/ha t PY ha Cotton -4 0.10 -3 3.3 0.7 2.3 -2 76 0.5 38 -1 1,250 0.4 500 1 13,800 -3 0.12 -2 4.0 0.7 2.8 -1 95 0.5 47 1 1,580 0.4 630 2 17,500 -2 0.14 -1 4.9 0.7 3.4 1 114 0.5 57 2 1,900 0.4 760 3 21,200 -1 0.18 1 6.1 0.7 4.3 2 143 0.5 71 3 2,380 o.4 950 4 26,400 1 0.21 2 7.3 0.7 5.1 3 172 0.5 86 4 2,850 o.4 1,14o 5 31,700 Maize -1 0.02 1 0.6 1.0 0.6 2 30 1.0 30 3 1,300 1 0.01 2 0.A 1.0 o.4 3 20 1.0 20 - 4 1,100 2 0.03 3 1.2 1.0 1.2 4 60 1.0 60 - 5 2,600 Sorghum -1 0.01 1 0.2 1.0 0.1 2 9 1.0 9 - 3 800 1 0.01 2 0.3 1.0 0.2 3 19 1.0 19 - 4 1,500 2 0.01 3 0.4 1.0 0.3 4 26 1.0 26 - 5 2,300 Groundnuts -2 0.2 -1 2.0 1.0 2.OYJ 1 20 1.0 20 2 200 0.8 160 3 1,600 -1 0.1 1 1.0 1.0 1.0 2 8 1.0 8 3 75 0.8 60 4 600 1 0.3 2 2.5 1.0 2.5 3 25 1.0 25 4 250 0.8 210 5 2,100 1/ Area in ha to be grown 2/ Yield in t per ha 3/ Production of seed in t / IRAT has only 0.3 t of groundnut variety RMP-12 from 1976 production. Remaining 1.7 t for PY 1 (1977) multiplication will be supplemented with RMP-12 seed from demonstration and farmers' plots or with other good varieties (e.g. RMP-91,57-313,S28-206). InI TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS SEED UTILIZATION IN PY 1-10 OF F1 AND F2 SEED (t) PY Crop Generation 1 2 3 4 5 6 7 8 9 10 Cotton Fl 500 630 760 950 1,140 1,140 1,140 1,140 1,140 1,140 Maize Fl - - 30 20 60 4o 90 65 115 95 F2 - - - 30 20 60 4o 90 65 115 Total - 30 50 80 100 130 155 180 210 Sorghum Fl - - 9 10 16 18 24 26 32 34 F2 - - - 9 10 16 18 24 26 32 Total - - 9 19 26 34 42 50 58 66 Groundnuts Fl - - 160 60 210 120 240 170 250 180 F2 - - - 160 60 200 120 240 170 250 Total - - 160 220 270 320 360 410 420 430 Sub-total Fl 500 630 960 1,040 1,430 1,320 1,500 1,400 1,54o 1,450 Total Fl+F2 500 630 960 1,240 1,520 1,600 1,670 1,760 1,800 1,850 ANNEX 7 Page 1 TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS Seed Cotton Ginning, Transport and Marketing Ginning 1. At present there are three operational ginneries in Togo, all located in the southern part of the project area in the Plateaux region. Key data are given in the table below: Ginning Capacity Owner Location Main Equipment (t seed cotton per season) OPAT Notse 1 88-saw gin 3,000 1 lint cleaner 1 press SGGG 1/ Atakpame 3 90-saw gins 4,800 1 lint cleaner 1 press SCOA 2/ Atakpame 2 80-saw gins 3,500 1 press Total: 11,300 The equipment of the ginneries is old, and they do not operate more than two shifts of seven hours per day. The ginning season lasts around 120 days, but could be extended to about 140 days if picking and marketing could be organized to start earlier. As it is, the annual ginning capacity of Togo is about 11,000 t of seed cotton. 2. Under the project, seed cotton production would increase to over 30,000 t in PY 5 (including the Maritime region) and ginning capacity would have to be adjusted accordingly. The extension of ginning capacity is expect- ed to be financed by the Government with some outside financing by FAC, mainly for studies and technical assistance. Such costs have not been included in the Project. The Government has ordered equipment for a new ginnery in Lama Kara, which should become operational!f1978 to cater for the seed cotton production of the northern part of the project area. At the same time, a a study has been initiated for extending the Notse ginnery in 1979, which 1/ Societe Generale du Golfe de Guinee. 2/ Societe Commerciale de 1'Ouest-Africain. ANNEX 7 Page 2 would enable processing of the increased production in the South. Phasing out of the two old ginneries and building of a new ginnery in Atakpame, in 1979 or 1980, is a possibility and is under consideration. 3. The new ginnery at Lama Kara would be the property of and would be managed by SOTOCO. The ginnery would have three stands with two 128-saw gins assuring a capacity of 12,000 t seed cotton per season. The third stand could be equipped with another 128 saw gin, as and when required, thus raising the processing capacity of the factory to 20,000 t per year. The ginnery would be equipped with modern machinery such as unloading system, high capa- city feeder and ginnng system, lint cleaning system, battery condensor, density pressing system, etc., and the cost is estimated to be around CFAF 500 mil. (US$2 mil.). The extension of the ginnery in Notse would probably be done in two phases. Phase one would increase capacity to 12,000 t and Phase two, to follow about two years later, would raise the ginning outturn to some 20,000 t per season if so required. 4. The expected increase of seed cotton production in each of the regions is shown in Annex 4, Tables 8-11 and a summary for the project area is given in Table 12. For purposes of ginning coverage the project area would be divided into South (the Maritime and Plateau regions) and North (Central, Kara, and Savanna regions). The table below gives the anticipated production of seed cotton (Maritime region included) and phasing of increases in ginning capacity broken down for South and North over the period of project duration. PY 0 PY 1 PY 2 PY 3 PY 4 PY 5 Production of South 4,800 6,600 9,900 12,600 16,200 19,500 Seed Cotton (t) North 1,900 3,600 5,700 7,900 9,800 11,900 Total 6,700 10,200 15,600 20,500 26,000 31,400 Ginning South 11,000 11,000 11,000 11,000 20,000 2/ 20,000 Capacity (t) North - - 19,000 12,000 12,000 12,000 Total 11,000 11,000 20,000 23,000 32,000 32,000 1/ Building of new ginnery in Lama Kara. 2/ Extension of ginnery in Notse. Although the project does not provide finance for the extension of the ginning capacity, the Government is making satisfactory provisions and it is not expected that ginning capacity would be a constraint to project development. Transport 5. SOTOCO's fleet of transport vehicles consists at present of 19 lorries of a capacity ranging from 7 to 19 t and of 15 trailers in the same capacity ANNEX 7 Page 3 range. The following table presents the years of purchase, numbers, makes and tonnage of the trucks and trailers. Year No. Make (truck) Capacity (t) Make (trailer) Capacity (t) 1974 2 Berliet L 52 7 1975 2 Austin 830 WF 7 1976 4 Hino TE 220 11 Legras 11 1976 2 Saviem SM 260 19 Fruehauf 19 1976 9 Mercedes L 1113/48 7 Doll 7 SOTOCO's transport capacity is sufficient for pre-project needs. The vehicles fleet is capable of transporting about 10,000 t of seed cotton over a four months marketing period (the heavy 11 and 19 t trailers were excluded from this calculation, since they proved unsuitable for most of the rural roads). The production of 1976 is estimated in the region of 8,00-9,000 t of seed cotton. Since most of the vehicles were purchased in 1976, the current excess transport capacity would be utilized in PY 1 and 2 for transporting a portion of the incremental seed cotton production (para 7). 6. A qualified Industrial Manager would be responsible for the techni- cal aspects of ginneries belonging to SOTOCO. He would be detached from CFDT under the technical assistance to be provided for the starting up of the Lama Kara ginnery, and would serve for three years. 7. The project would finance vehicles to collect the incremental cotton production. The calculations of the incremental means of transport are based on a four-month seed cotton marketing and collecting season and on the as- sumptions that each vehicle would make from the assigned ginnery to the rural area on the average some 14 trips per month and the average return trip would be about 200 km. The effective load would be 0.8 t of seed cotton per 1 t of vehicle carrying capacity. Thus a 12 t truck would transport some 540 t and a 7 t truck some 310 t of seed cotton per season. The following table shows the expected incremental increase in cot- ton production and the assumed phasing of transport vehicles during project duration: ANNEX 7 Page 4 PY 1 2 3 4 5 Incremental seed cotton production (t) 3,500 7,400 12,000 17,200 22,500 Incremental requirement of trucks (12 t) 3 6 6 11 14 Reserve - 1 1 3 3 Total 3 7 7 14 17 Incremental requirement of trucks (7 t) 3 5 5 9 10 Reserve - 1 1 2 2 Total 3 6 6 11 12 Total transport capacity 2/ (t) in 120 days 3,900 1/ 8,300 1/ 12,100 18,300 24,200 The operating life of a vehicle is assumed to be three years and therefore, starting with PY 4, replacement vehicles have been phased into the above projection. To safeguard the project against delays in supply of crucial agricultural inputs to rural areas and in evacuation of agricultural produce from rural areas one reserve vehicle has been incorporated into the projection for each five vehicles. 8. A new workshop, furnished with all necessary machinery, equipment and spare parts, fuel and lubrication stores, would be bult at Atakpame in PY 1. The workshop would be staffed with an experienced Senior Mechanic who would be responsible for repairs, heavy maintenance, and on-the-job training of junior staff. A well-functioning workshop would be an essential condition not only for efficient operation of the vehicles but also for the road build ing and maintenance units (Annex 8). 1/ Includes respectively 1,400 and 1,000 t of existing SOTOCO transport capacity (para. 5). 2/ Reserve vehicles not included. ANNEX 7 Page 5 Primary Marketing and Collection 9. The expected projection of seed cotton production in each of the regions is shown in Annex 4, Tables 8 - 11. Primary cotton marketing and collection would be the responsibility of SOTOCO and would be carried out in liaison with OPAT. The SOTOCO Industrial Director would be in overall charge of the marketing operations but he would be closely assisted by the Technical Director. Cotton would be purchased by properly equipped mobile SOTOCO buying teams comprised of extension service personnel, truck operators and temporary labor. In some areas, particularly in the southern part of Plateau region, SOTOCO has been assisted in seed cotton collection by marketing cooperatives and this practice is likely to continue. ANNEX 8 Page 1 TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS Feeder Roads Program Background 1. To enable implementation of the Rural Development Project in Cotton Areas, access roads are needed both for the transport of SOTOCO's extension agents and farm inputs and the marketing of farm products. 2. SOTOCO has prepared a preliminary inventory of such roads, totalling 1,442 km. Of these, 694 km. are considered in urgent need of being built and/or improved during the five-year project period. The description of these roads and tentative cost estimates are shown in Tables 2 to 6. 3. Another 750 km. also require improvement, and it is recommended that they be incorporated into a future separate feeder roads project; this project, however, should place more emphasis on institution building which, in the medium and long term, would ensure permanent planning and implementation of feeder road improvements and maintenance in Togo. Program Objective and Executing Agency 4. The main objective of the proposed feeder road component in the project area would be to start as quickly as possible to improve and subsequent- ly maintain 694 km. of feeder roads, in the most cost-efficient way consistent with suitable quality. This can (in the short term) only be obtained by substantially reinforcing the engineering section of SOTOCO and commissioning SOTOCO to do the works on force account. The reasons for this recommendation are: (a) experience is that feeder road works in Togo are carried out less expensively by reasonably efficient force account than by contractors; (b) Travaux Publics is not geared to carry out improvements or maintenance works on feeder roads; and, (c) the SORADs (Societes Regionales pour l'Amenagement et le Developpement), and the Genie Rural are not, at present, sufficiently organized to be able to carry out such works. By reinforcing SOTOCO and financing the procurement of equipment, the execution of this program would be satisfactorily achieved. ANNEX 8 Page 2 Program Components and Organization 5. The program would include the following: (a) procuring equipment for building of feeder roads (Table 1); (b) opening, upgrading and/or improving 694 km. of feeder roads (Tables 2 to 6); (c) providing technical assistance in the form of a "Chef de Brigade" (complemented by other technicians from SOTOCO - see para. 6); (d) providing funds to enable SOTOCO's Mechanical Workshop to carry out maintenance of, and small repairs to, the equipment procured under the program; (e) carrying out maintenance work on roads opened or improved under the program (Table 7); and, (f) providing funds for local staff and a limited office and administrative staff, employed under the program. 6. The technical assistance needed to carry out the program would consist of: (i) a Civil Engineer, as chief of the technical team with overall responsibility for execution of the road program; (ii) one Chief Mechanic, in charge of both road equipment and SOTOCO's Mechanical Workshop, and, (iii) the Head of the Feeder Loads unit, responsible for equipment operation and super- vision of field work; these three technicians would be internationally recrui- ted. 7. The local staff would consist of one road technician, three foremen, three mechanics, and office staff. The cost of equipment operators and laborers are included in the cost per kilometer, as detailed in Table 2. 8. Organization and Standards. There would be: (a) one heavy brigade for road improvement, with equipment shown in Table 1; and, (b) two light brigades each with one grader and one service truck, for maintenance of improved roads and emergency repair of unimproved roads until improvements are made. The heavy brigade would open or improve an average of 240 km yearly, with 102 km in Year 2, 181 km in Year 3, 214 km in Year 4, and 197 km in Year 5. ANNEX 8 Page 3 9. Road standards would be: (a) those for roads carrying average daily traffic (ADT) of below 10 vehicles: a 4-5 m platform with 4 m gravel surface; and, (b) those for roads carrying between 10 and 20 ADT: a 6 m platform with 4 m gravel surface. The percentage of regravelling would depend on quality of subsoil. Regravelling would be, generally, (a) for roads on lateritic soils: up to 10 cm thickness, on up to 80% total length; and (b) for non-lateritic soils, up to 10 cm over the entire length required. Maintenance would consist of one grader passage each year, manual repairs of potholes, grass cutting, culvert repairs, and ditch cleaning. Each maintenance unit would consist of one grader and one service truck; output, assuming good roads, would reach 3-4 km per day, at a cost of about CFAF 30,000 (US$120) per km excluding equipment depreciation. The maintenance program would be 110 km in Year 2; 102 km in Year 3; 283 km in Year 4; and 497 km in Year 5. An additional grader plus service trucks from the heavy brigade are assumed to join in maintenance from Year 3 on. Workshop. SOTOCO's workshop would handle small repairs to the road equipment; facilities would be augmented to handle SOTOCO's trucks included in the Project. Building costs are estimated at 12 million CFAF (US$48,000). Heavy repairs would be carried out by private workshops in Lome. 10. If during the project life Government institutes a centralized agenzy in this sector, then SOTOCO's feeder roads department, with its equipment and staff, would be transferred to it, with the provision that feeder roads in the project area would be built as a matter of priority within the agency's overall program. An agreement would be reached with SOTOCO under which the handed over equipment would enjoy the continuing services of the workshop in Atakpame. ANNEX 8 Table 1 TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS Feeder Roads Program Eniuoment List ('000 CFAF) No. of Unit Price Total Cost TOTAL Units (incl. tax) (incl. tax) (net of taxes) A. Heavy Brigade (for Road Construction and Improvement) Bulldozer 75 HP 1 17,000 17,000 13,600 Bulldozer 140 HP 1 23,000 23,000 18,400 Motograder 120 HP 2 19,000 38,000 30,4000 Loader 80 HP 1 12,000 12,000 9,600 Self-propelled Roller 1 12,000 12,000 9,600 Water Trucks 5000 1 2 6,000 12,000 9,600 Dump Trucks 5m3 5 6,000 30,000 24,000 Pick-up Trucks 3 1,500 4,500 3,600 Compressor 1 3,000 3,000 2,400 Subtotal 151,500 121,200 B. Maintenance Brigade Motorgrader 120 HP 2 19,000 38,000 30,400 Service Trucks 3.5 t 3 3,200 9,600 7,600 Subtotal 47,600 38,000 Total: Equipment: 199,100 159,200 TOGO ANNEX 8 RU?AL DEVELOPMENT PROJECT IN COTTON AREAS Table 2 Feeder Roads Program Basis of Calculation o- Road Improvement Costs (Total costs are in CFAF per km, net of depreciation charges for equipment). A. Road on laterite ground with slow traffic (below 10 ADT 1/): 1. To reopen 2. To upgrade and surface Clearing 60,000 30,000 Earthwork 170,000 Partial surfacing 170,000 170,000 Drainage 100,000 80,000 Overheads 20,000 20,000 Total 520,000 300,000 B. Road on laterite ground with permanent traffic (up to 20 ADT 1/ 1. To reopen 2. To upgrade and surface Clearing 60,000 (partial) 35,000 Earthwork 170,000 50,000 Total surfacing 550,000 500,000 Drainage 200,000 . 100,000 Overheads 30,000 20,000 Total 1,010,000 705,000 C. Road on non-lateritic ground with slow traffic: 1. To reopen 2. To upgrade and surface Clearing 70,000 (partial) 35,000 Earthwork 180,000 Partial surfacing 180,000 180,000 Drainage 120,000 120,000 Overheads 40,000 40,000 Total 590,000 375,000 D. Road on non-lateritic ground with permanent traffic: 1. To reopen 2. To upgrade and surface Clearing 70,000 35,000 Earthwork 180,000 90,000 Total surfacing 642,000 642,000 Drainage 300,000 150,000 Overheads 40,000 30,000 Total 1,232,000 947,000 1/ ADT = Average Daily Traffic TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS Feeder Roads Program List of Roads to be Opened or Improved A. Plateam Region Cost per km 1/ Total Cost To be built Road No. and Location Length (km) Ty l/ (CFAF) ('000 CFAF) in PY la Elevagnon-Degou 15 D-1 1,232,000 18,480 2 lb Ogou-Yanda 38 D-1 1,232,000 46,816 2 2 Kpedome-Alati-Medje 36 D-1 1,232,000 44,352 2 4 Tado-Kpekpleme 34 B-1 1,010,000 34,340 3 5 Adeta-Haho 12 B-1 1,010,000 12,120 3 6 Amou-Oblo-Kpategan 33 A-2 300,000 9,900 3 9 Nawolo-Avedje 15 A-2 300,000 4,500 4 10 Adjakpahoe-Adave 15 A-2 300,000 4,500 4 11 Agbati-Lato 6 A-2 300,000 1,800 4 12 Wahala-Samonecope 8 A-2 300,000 2,400 4 13 Xanto-Yokou 14 A-2 300,000 4,200 4 14 Togba-Abongo-Cope 5 A-2 300,000 1,500 5 16 Kpalango-Kpegnon 30 A-1 520,000 15,600 5 17 Tado-Saligbe 18 A-2 300,000 5,400 5 18 Kpele-Tabligbo (Border) 18 A-2 300,000 5,400 5 Total Plateaux: 297 km 211,308 3 1/ See Table 2 for different types and unit cost. w oD TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS Feeder Roads Program List of Roads to be Opened or Improved B. Central Region Cost per km 1/ Total Cost 2/ To be built Road No. and Location Length (km) e l/ (CFAF) ('000 CFAF) in PY la Guerin-Kouka-Kidjaboum- 47 D-1 1,232,000 57,904 3 Katchamba-Namab 2a Namon-Koutiere-Kara 17 D-1 1,232,000 20,944 3 3 Katchamba-Diabokou 13 B-1 1,010,000 13,130 2 5 Nampoch-Deman 13 A-1 520,000 6,760 4 8 Dimori-Kountoun-Banghan 35 A-1 520,000 18,200 4 9 Kpalou-Kikpan 11 A-1 520,000 5,720 4 10a Naware-Bapure 10 A-2 300,000 3,000 5 11 Lama Tessi-Koboyo 12 A-2 300,000 3,600 5 12a Akaba-Dagala 30 A-2 300,000 9,000 5 13a Daza-Agbandaoude 6 A-1 520,000 3,120 4 14a Bitjabe-Dimori 12 A-2 300,000 3,600 5 Total Centrale Region: 301 km 144,978 152,227 2/ 1/ See Table 2 for different types and unit cost. 2/ Unit cost calculated on Plateaux Region basis; regional increase coefficient applied: Centrale 105%; La-Kara 110%; and, Savannes 115%. (D> 4=-OD TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS Feeder Roads Program List of Roads to be Opened or Improved C. La-Kara Region Cost per km 1/ Total Cost 2/ To be built Road No. and Location Length (km) Ty l/ (CFAF) ('000 CFAF) in PY 2a Massedena Koutougou 10 B-1 1,010,000 10,100 3 5 Atalote-Tchasside 6 A-2 300,000 1,800 5 8 Sola-Madjalome 8 B-2 705,000 5,640 3 9 Sola-Koudjia 13 A-1 520,000 6,760 4 11 Koufitougou-Koutendiegou 6 A-2 300,000 1,800 5 12 Wartena-Tchitchira 8 A-1 520,000 4,160 4 13 Nadoba-Tchitchira 9 A-1 520,000 4,680 4 14 Atalote-Terite 6 A-2 300,000 1,800 5 15 Terite-Warte-Ferme 13 A-1 520,000 6,760 4 17 Gante-Sola 5 A-1 520,000 2,600 14 18 Warango-Koutapa 5 A-2 300,000 1,500 5 22 Madiatom-Kpanaware 11 A-1 520,000 5,720 4 23 Sirka-Ndei 6 A-2 300,000 1,800 5 25 Agbelossi-Bededa 8 A-1 520,000 4,160 4 Total La-Kara Region: 114 km 59,280 At 110% 65,208 2/ 1/ See Table 2 for different types and unit cost. 2/ Unit cost calculated on Plateaux Region basis; regional increase coefficient applied: Centrale 105%; La-Kara 110%; and, Savannes 115%. \.n co TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS Feeder Roads Program List of Roads to be Opened or Improved D. Savannes Region Cost per km 1/ Total Cost 2/ To be built Road No. and Location Length (km) Tp1/ (CFAF) ('000 CFAF) in PY 1 Tandjoare-Nayergou 24 D-1 1,232,000 29,568 4 3 Loko-Tamonga 9 A-1 520,000 4,680 5 4 Magbeni-Bjaga 7 A-1 520,000 3,640 5 6 Mogou-Tontondi 17 A-1 520,000 8,840 5 7 Namoundjoga-Naki-Est 20 B-1 1,010,000 20,200 3 Total Savannah Region: 77 km 66,928 At 115% 76,967 1/ See Table 2 for different types and unit cost. 2/ Unit cost calculated on Plateaux Region basis; regional increase coefficient applied: Centrale 105%; La-Kara 110%; and Savannes 115%. (D ANNEX 8 Table 7 TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS Feeder Roads Program Road Maintenance Note: Maintenance unit to be composed of one Motorgrader and one service truck. Output: 3 to 4 km a day. Cost: about CFAF 30,000 per km (excluding equipment depreciation): CFAF Total ('000 CFAF) PY 2 First year emergency maintenance 110 km at: 30,000 3,300 PY 3 Roads built up to PY 2 - 102 km at: 30,000 3,060 PY 4 Roads built up to PY 3 - 283 km at: 30,000 8,490 PY 5 Roads built up to PY 4 - 497 km at: 30,000 14,910 Total: 29,760 TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS Feeder Roads Program Yearly Building Program and Costs (in '000 CFAF) Region/ PY 2 PY 3 PY 4 PY 5 Total Cost km Cost km Cost km Cost km Cost km Cost Plateau 89 109,648 79 56,360 58 17,400 71 27,900 297 211,308 Centrale 13 13,787 64 82,790 65 35,490 64 20,160 206 152,227 La-Kara - 18 17,314 67 38,324 29 9,570 114 65,208 Savanna - 20 23,230 24 34,003 33 19,734 77 76,967 102 123,435 181 179,694 214 125,217 197 77,364 694 505,710 Drainage Structures 18,800 33,360 39,440 36,300 127,900 OD OD TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS Feeder Roads Program Summary of Costs ('000 CFAF) Foreign Exchange Taxes PY 1 PY 2 PY 3 PY 4 PY 5 Total % Amount 0 Amount 1. Equipment 47,600 151,500 - - - 199,100 74 147,345 20 39,800 2. Local Staff 1,250 2,500 2,500 2,500 2,500 11,250 - - 5 625 3. Technical Assistance - 12,000 12,000 12,000 - 36,000 75 27,000 10 3,600 4. Workshop: Buildings - 12,000 - - - 12,000 35 4,200 15 1,800 Equipment - 12,000 - - - 12,000 65 7,800 15 1,800 5. Road Construction - 123,435 179,694 125,217 77,364 505,710 70 353,997 14 70,799 6. Drainage Structures - 18,800 33,360 39,440 36,300 127,900 70 89,530 14 17,906 7. Road Maintenance - 3,300 3,060 8,490 14,910 29,760 50 11,880 1 4,166 48,850 335,535 230,614 187,647 131,074 933,720 69 644,752 15 140,496 Physical contingenciesl/ 4,760 39,935 32,417 25,972 19,286 122,370 69 84,435 15 18,356 Price contingencies 2/ 2,008 44,110 62,828 72,967 68,169 250,082 69 172,557 15 37,512 55,618 419,580 325,859 286,586 218,529 1,306,172 69 901,744 15 196,364 1/ 10% of Equipment and 15% of Civil Works 2/ Equipment: 7 1/2% thru 1977-1979, 7% thereafter. Civil works: 9% thru 1977-1979, 8% thereafter; others: 7% throughout. (D > TOCO RURAL DEVELOPMENT PROJECT IN CCITTON AREAS Summary of Project Costs (in '000 CFAF) Foreign Exchange Taxes PY 1 PY 2 PY 3 PY 4 PY 5 Total % Amount % Amount I. HQ and Field Servires Buildings !0,900 291,540 140,030 121,9?0 83,600 587,290 54 319,770 14 79,943 Vehicles and Equipment 89,848 159,256 123,774 250,970 279,088 902,886 74 664,980 1 7,128 Salaries 165,404 180,610 189,455 158,601 160,349 854,419 38 326,594 9 79,369 Other operating costs ,7124 1 424,050 49 209,670 ? 084,10 TOTAL 318.949 6 5336130 7 6 2,768.645 55 1,521,014 9 75250 II. Ox-drawn cultivation Equipment - 3,507 2,698 - 135 6,340 32 2,045 9 593 Operating costs - 4 8.580 8,354 - - 15 4,599 TOTAL - 8,5.1 11,278 8,580 8 6 2 14 III. Field Trials, Seed Multplication and Training Buildings 12,280 - - - - 12,280 40 4,911 10 1,28 Eouipment 45,225 259 156 10,900 156 56,696 60 34,017 15 8,504 Operating costs 505 0,898 72,53 56107 56,811 342,254 40 13,57 15 51, TOTAL 1 410 11 89 67,007 55,97Q 43 1 8 15 IV. Monitoring and Evaluation __3,643 .,643 10,371 3 81 50 1990 10 119 V. Feeder Roads Program Workshop Building - 12,540 - - - 12,540 35 4,389 15 1,881 Workshop Equipment - 12,450 - - - 12,450 65 8,093 15 1,868 Road Building Eauipment 49,385 157,181 - - - 206,566 74 152,870 20 41,291 Road Construction and Maintenance - 152,084 225,839 180,939 134,360 693,22? 70 479,035 14 97,050 Salaries 1 15,008 15,008 15.008 2,588 48,906 57 2945 8 4 TOTAL 5079 349,263 240,847 195,947 136 ,9_48 9784 69 672 32 15 14 5 VT. On-Farm Inputs Seeds 16,560 19,665 22,770 28,980 37,260 125,235 - - - - Sprayers 7,263 23,240 _21,642 14_23.240 9 75 69,720 8 Sub-total 23823 42.,905 4 4 0,500 218,19 2 690,725 3 Fertili'ers - 99,112 78,246 68,310 80,730 126,398 90 294,244 - Insecticides - 182341 600030 75 82541 39_95O 90 359,955 - - 1 .38.276 1348 163.271 .2.638 2 654.199 - TOTAL 23823 185,738 186,853 223_77 1 44,5 723,919 1 6,972 TOTAL PROJECT BASE COSTS 542,367 1,389,490 1,047,325 1,105,328 1,082,497 5,167,007 60 3,112,586 9 473,607 1/ Physical contingencies (6j ) 22,862 94,466 71,704 70,741 63,594 323,367 62 201,501 9 29,103 0 Price ontingencies (17%)- - 114,433 181287,754 306,830 890,752 60 534,451 9 5 1,598,389 1,300,764 1,463,823 1,452,921 6,381,126 60 3,848,538 9 582,878 1/ See Main Report, para. 5.02. TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS PROJECT COSTS - INVESTMENTS HQ and Field Services Buildings, Furniture, and Equipment (in '000 CFAF) Unit Cost (in '000 Foreign Exchange Taxes PY 1 PY 2 PY 3 PY 4 PY 5 T lu. A. BUILDINGS Headquarters 20,0 20,000 20,000 40 8,000 10 2,000 Regional Storage Sheds 10,0 30,000 30,000 60 18,000 15 4,500 Sector Storage Sheds 5,0 35,000 20,000 15,000 70,000 60 42,000 15 10,500 Village Storage Sheds 0,45 90,000 72,000 72,000 72,000 306,000 60 183,600 15 45,900 Garage/Workshop 10,0 10,000 10,000 40 4,000 10 1,000 Central Store 10,0 10,000 10,000 40 4,000 10 1,000 Housing (Senior Staff) 8,0 8,000 8,000 8,000 24,000 40 9,600 10 2,400 " (Region Chiefs) 5,0 5,000 10,000 5,000 20,000 40 8,000 10 2,000 " (Sector Chiefs) 4,0 16,000 16,000 16,000 8,000 56,000 40 22,400 10 5,600 Extra transit lodgings 4.0 . _80__ 8.00 8.000 16,000 40 6,400 10 1,600 20,000 21,000 134,00 116.000 80,000 562.000 54 306,00 14 76.500 B. FUANITURE & EQUIPMENT Headquarters 7,500 7,500 50 3,750 15 1,125 Regional Offices 0,8 2,400 2,400 50 1,200 15 360 Sector Offices 0,3 2,100 1,200 0,900 4,200 50 2,100 15 630 Garage/workshop 10,000 10,000 70 7,000 15 1,500 Central Store 600 600 70 420 10 60 Housing Senior Staff 1,5 1,500 1,500 1,500 4,500 50 2,250 15 675 " Region Chiefs 1,0 1,000 2,000 1,000 4,000 50 2,000 15 600 " Sector Chiefs 0,7 2,800 2,800 2,800 1,400 9,800 50 4,900 15 1,470 m Transit lodgings 1.500 1.500 3.000 50 1 15 450 7,500 21.900 9.000 6.200 1.400 46.000 55 2512 15 6-870 TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS PROJECT COSTS - INVESTMENTS HQ & Field Services Unit Price Vehicles, Trucks, and Trailers Net of Taxes Foreign Exchange Taxes ('000 CFAF) PY 1 PY 2 PY 3 PY_4 PY 5 TOTAL % Amount % Amount VEHICLES licycles 25 1,500 8,500 3,500 6,250 11,500 31,250 70 21,875 2.soters 100 4,000 2,000 4,000 2,000 4,000 16,000 70 11,200 Diek-up Trucks 1,300 13,000 6,500 - 13,000 6,500 39,000 75 29,250 I-Iation Wagons 1,400 2,800 4,200 2,800 4,200 2,800 16,800 75 12,600 Sedans 1,600 8,000 8,000 - 8,000 8,000 32,000 75 24,000 Four-wheel drive 2,400 4,800 2 7 0 4.800 19,200 75 14.400 Subtotal l410 31,60 10,30 4 37.600 154,250 73 113,325 1/ TBUCKS (for Cotton Transport) Tractor and Trailer (12 tons) 10,000 30,000 70,000 70,000 140,000 170,000 480,000 75 360,000 7-ton trucks 5,oo 15000 30,000 30,000 55Q00 60,000 190.000 75 142.500 Subtotal 4 loo.ooo M 1 2 6 75 502,500 TOTAL 131,600 110,300 235,650 2 82f20 75 615825 Number of trucks required 12 t 3 6 6 11 14 1/ Reserve - 1 1 3 3 Total 3 7 7 14 1 7 t 3 5 5 9 10 Reserve - 1 1 2 2 Total 3 6 6 11 12 A.reserve unit has been added for every five units in operation. Number of trucks required in PY 4 includes replacement of those procured in PY 1, in Py 5, replacement of those procured in PY 2. (See Annex M a TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS Project Costs: Other InvestmEnts (in '000 CFAF) Foreign Exchange Taxes Unit Cost Py 1 f. 9 pi IYYTal % Amount % Amount ('000 CFAF) OX-DRAWN CULTIVATION Pair of oxen 50 1,300 1,000 2,300 Tool bars 30 780 600 1,380 70 966 15 207 Seeders 30 390 300 690 70 483 15 104 Ox casts 60 780 600 1,380 30 414 15 207 Yoke, chain, cord etc. 5 130 100 130 360 30 108 15 54 Subtotal 3J38 2Q6 130 32 1.971 9 572 FIELD TRIALS AND SEED MULTIPLICATION Buildings: Seed testing lab. 2,000 Seed qtorage 2,250 Labor housing 4000, Subtotal 11750 11,750 40 4,700 10 1,175 Seed Multiplication equiptll 28,390 450 28,840 60 17.304 4.326 Total 450 40.590 54 22004 4 5&501 Research Equipment: 1/ Food crops 8,785 5,215 Cotton ,39 Subtotal 14.175 60 -15 3612 TRAINING Equipment 21/ 1 250 150 150 150 1.725 Subtotal 1025 250 150 150 150 0.725 60 13035 15 259 TOTAL 1340 3.630 2.750 80 280 = _9.944 1/ See Annex 9, Table 10 2/ See Annex 9, Table 11. ANNEX 9 Table 5 TOGO - Cotton RURAL DEVELOPMENT PROJECT IN COTTON AREAS Existing Staff and Project Requirements Existing Additional Require- Unit Cost Total Dec. 31,'76 ments under Project CFAF '000 Existing (Nationals) Nationals Expatriate per year CFAF '000 PROJECT ADMINISTRATION General Manager 1 5,000 5,000 Dep. " " 1 2,500 Technical Director 1 j4,0o Dep. " 1 1,800 Adim. & Fin. " 1 Dep. Adm.& Fin. " 1 1,500 Chief Personnel Serv. 1 1,500 Chief Accountant 1. 1,800 Accountants 10 5 600 6,000 Clerks Typists 8 7 500 4,o0o Guards 5 5 170 850 Subtotal 22 2 15,850 TRAINING Training Director 1 13,000 Dep. " " 1 1,500 1,500 Training Off. Nots6 1 10,000 Training Assistants 5 1,100 Clerks/Typists 2 500 FIELD SERVICES Subtotal 1 T7 1,500 Region Chiefs 2 7,500 " " 3 2 1,200 3,600 Sector " 14 800 11,200 Subsector " 62 5 600 37,200 Extension Agents 1/ 40o 325 200 80,000 Clerks/Accountants 2 12 500 1,000 Subtotal IT8 72 133,000 MECHANICAL UNITS Civil Works Technician 1 13,000 Chief Mechanic 1 10,000 Asst. Chief Mechanic 1 1,200 Equipment Operators 10 300 Mechanics 10 300 Storekeepers 10 10 400 4,000 Drivers 21 20 250 5,250 Subtotal 1j .5_ J 9,250 TOTAL 537 424 8 159,600 I/ Maritime Region excluded. 2/ 65 additional extension agents every year. TOGO RURAL DEVELOPMENT PROJECT IN COrTON AREAS PROJECT OPERATING COSTS Project Staff Requirements Number Unit Cost Annual Cost (CFAF '000) Foreign Exchange Taxes Local Expatriate (CFAF '000) PY 1 PY 2 PY 3 PY 4 PY 5 Total % Amount % Amount PROJECT ADMINISTRATION Asst. General Manager 1 2,500 2,500 2,500 2,500 2,500 2,500 12,500 Technical Director 1 14,000 14,000 14,000 14,000 - - 42,000 100 42,000 Dep. Technical Director 1 1,800 1,800 1,800 1,800 1,800 1,800 9,000 - - Admin. & Financial Director 1 13,000 13,000 13,000 13,000 13,000 13,000 65,000 100 65,000 Dep. Admin & Fin. Director 1 1,500 1,500 1,500 1,500 1,500 1,500 7,500 - - Chief Personnel Service 1 1,500 1,500 1,500 1,500 1,500 1,500 7,500 - - Chief Accountant 1 1,800 1,800 1,800 1,800 1,800 1,800 9,000 - - Accountants 5 600 3,000 3,000 3,000 3,000 3,000 15,000 - - Clerks & Typists 7 500 3,500 3,500 3,500 3,500 3,500 17,500 - - Guards 5 170 850 850 850 850 850 4,250 - - TRAINING Training Director 1 13,000 13,000 13,000 13,000 - - 39,000 100 39,000 Training Officer Notse 1 10,000 10,000 10,000 10,000 - - 30,000 100 30,000 Training Assistants 5 1,100 5,500 5,500 5,500 5,500 5,500 27,500 - - Clerks/Typists 2 500 1,000 1,000 1,000 1,000 1,000 27,500 - - FIELD SERVICES Region Chiefs 1/ 2 7,500 15,000 15,000 7,500 - - 37,500 100 37,500 '' " 2/3 1,200 2,400 2,400 3,600 3,600 3,600 15,600 - - Sub-section chiefs 5 600 3,000 3,000 3,000 3,000 3,000 15,000 - - Extension Agents 2/ 325 200 13,000 26,000 39,000 52,000 65,000 195,000 - - Clerks/Accountants 12 500 6,000 6,000 6,000 6,000 6,000 30,000 - - MECHANICAL UNIT Civil Works Technician 1 13,000 13,000 13,000 13,000 13,000 - 52,000 100 52,000 Chief Mechanic 1 10,000 10,000 10,000 10,000 10,000 10,000 50,000 100 50,000 Asat. Chief Mechanic 1 1,200 1,200 1,200 1,200 1,200 1,200 6,000 - - Operators/Mechanics 20 300 6,000 6,000 6,000 6,000 6,000 30,000 - - Storekeepers 10 400 4,000 4,000 4,000 4,000 4,000 20,000 - - Drivers 20 250 5_000 5,000 5,000 5,000 5000 25,000 - - Total 151.550 1 171.250 139,750 139,750 766.850 41 31550 10 76,685 1/ Two expatriate Region Chiefs to be replaced in PY 3 and PY 4. 2/ At the rate of 65 each year. TOGO RURAL DEVEIDPMENT PROJECT IN COTTON AREAS PROJECT OPERATING COSTS (in '000 CPAF) Foreign Exchange Taxes PY I PY 2 PY 3 PY 4 FY 5 Total % Amount % Amount HQ. TRAINING. & FIELD SERVICES Staff 1/ 151,550 164,550 171,250 139,750 139,750 766,850 41 315,500 10 76,685 Social charges on national staff 8,261 9,952 11,798 13,448 15.177 58676 - - 159,811 174,502 183,048 153238 154.927 825,526 38 315.500 9 76,685 OPERATING COSTS Rent, Maintenance 3,520 6,020 12,820 19,400 26,800 68,560 25 17,140 20 13,712 Main & Regional Office Expenditure 4,000 5,000 6,000 7,000 8,000 30,000 25 7,500 20 6,000 Vehicle Op. Costs 2/ 24,920 42,000 42,480 43,140 43,860 196,400 60 117,840 20 39,280 Inputs transport 3,910 10,880 10,870 27,710 36,380 89,750 60 53,850 20 17,950 Miscellaneous 5.5-0 _,00 0 5,000 _ 2,000 25 ,25. 20 .50 Subtotal 41,350 68,900 77,170 102,250 120040 409,710 49 202.580 20 81,942 OX-DRAWN CULTIVATION Operating Costs 3/ 4,680 8,290 8,290 8,290 29.550 15 4,433 FIELD TRIALS & SEED MULLT IPLICAT ION Operating Costs 4/ 81,790 67,290 68870 53960 560 326,550 40 130,580 15 48.968 TRAINING Operating Costs 5/ 1,210 1,210 1.210 250 250 4.130 75 3.098 10 413 1/ See Annex 9, Table 6. 2/ See Annex 9, Table 8. 3/ See Annex 9, Table 9. 4/ See Annex 9, Table 10. 5/ See Annex 9, Table 11. TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS Project Costs: Vehicle Operating Costs (in '000 CFAF) Yearly Unit PY 1 PY 2 PY 3 PY 4 PY 5 Cost No. Amount No. Amount No. Amount No. Amount No. Amount Total Bicycle 6 (320) 1,920 (4oo) 2,400 (480) 2,880 (590) 3,540 (710) 4,260 15,000 Motorcycle 60 (4o) 2,400 (60) 3,600 (60) 3,600 (60) 3,600 (60) 3,600 16,800 Station Wagon 1,000 (10) 10,000 (15) 15,000 (15) 15,000 (15) 15,000 (15) 15,000 70,000 Pick-up Trucks 1,300 (2) 2,600 (5) 6,500 (5) 6,500 (5) 6,500 (5) 6,000 28,600 Sedan 1,000 (5) 5,000 (10) 10,000 (10) 10,000 (10) 10,000 (10) 10,000 45,000 Four-Wheel Drive 1,500 (2) 3,600 (3) 4,500 (3) 4,500 (3) 4,500 (3) 4,500 21,000 Total Cost 24,920 42,000 42,480 43,140 43,860 196,400 1-3 (D 01) \ TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS OX-DRAWN CULTIVATION Investments and Operating Costs ('000 CFAF) PY 1 2 3 4 5 Unit Cost No. Cost No. Cost No. Cost No. Cost No. Cost Cost Total I. SOTOCO-OX TRAINING AND DEMONSTRATION TEAMS A. CAPITAL COSTS Pair of Oxen No. 50 - - 26 1,300 20 1,000 - - - - 2,300 Multipurpose Toolbar No. 30 - - 26 780 20 600 - - - - 1,380 Multipurpose Seeder No. 30 - - 13 390 10 300 - - - - 690 Ox Cart No. 60 - - 13 780 10 600 - - - - 1,380 Yoke, Chain, Cord No. 5 - - 26 130 20 100 - - 26 130 360 Sub-Total - - - - - 3,380 - 2,600 - - - 130 6,110 B. OPERATING COSTS Ox Trainers No. 144 - - 26 3,740 46 6,630 46 6,630 46 6,630 23,630 Maintenance, Repairs No. 26 - - 26 680 46 1,200 46 1,200 46 1,200 4,280 (26,000 CFAF/Team year) Complementary Feed No. 5 - - 52 260 92 460 92 460 92 460 1,640 (300 kg at 15 CFAF/Ox year) - - - - Sub-Total 4,680 8,290 8,290 8,290 29,550 TOTAL COSTS - - - - - 8,060 10,890 8,290 8,420 35,660 IT. CREDIT TO FARMERS 1/ Multipurpose Toolbar No. 30 - - - - 50 1,500 100 3,000 200 6,000 10,500 Ox Cart No. 60 - - - - 50 3,000 100 6,000 200 12,000 21,000 Yoke, Chain, Cord No. 5 - - - - 50 250 100 500 200 1,000 1,750 TOTAL - - - - - - - 4,750 - 9,500 19,000 33,250 1/ 1/ For information purposes only; not included in project costs. TOGO RURAL DEVEIOPMENT PROJECT IN COTTON AREAS PROJECT COSTS: FIELD TRIALS AND SEED PRODUCIlN (CFAF '000) Unit PY 1 PY 2 PY 3 PY 4 PY 5 m2 g m2 Cos t No. Cost No. ost No. ost No. Cost No. Cost Cost Total CAPITAL COSTS 1. Buildings Seed Testing Laboratory and Office (Atakpame) 80 25 2,000 1 2,000 - - - - - 2,000 Seed Store (Barkoissi) 150 15 2s250 1 2,250 - - - - - - - - 2,250 Labor House (2 at each seed center) 50 25 1,250 6 7,500 - - - - - 7,500 Sub-total 11,750 11,750 2. Agricultural Machinery, Vehicles a. Seeds: Equipment Tractor 60-70 HP 2,300 3 6,900 - - - - - - - - 6,900 Trailer 5 t 750 3 2,250 - - - - - - - - 2,250 Rotary Slasher 490 3 1,470 - - - - - - - - 1,470 Planter 600 3 1,800 - - - - - - - 1,800 Plough 400 6 2,400 - - - - - - - - 2,400 Disc Harrow 300 6 1,800 - - - - - - - - 1,800 Row Cultivator 120 6 720 - - - - - - - - 720 Tine Cultivator 120 3 360 - - - - - - - - 360 Peg Harrow 130 3 390 - - - - - - - - 390 Subsoiler 150 3 450 - - - - - - - - 450 Utility (Dozer) Blade 200 3 600 - - - - - - - - 600 Fertilizer Spreader 100 3 300 - - - - - - - - 300 Rotavator 400 3 1,200 - - - - - - - 1,200 Motorcycles 90 ccm 150 3 450 - - - - 3 450 - - 900 Seed Cleaners 400 3 1,200 - - - - - - - - 1,200 Seed Graders 400 3 1,200 - - - - - - - - 1,200 Seed Dressing Equipment 80 3 240 - - - - - - - - 240 Bag Closers 70 3 210 - - - - - - - - 210 Lab Equipment 2,200 2,200 - - - - - - - - 2,200 Fuel Storage 750 3 2,250 - - - - - - - - 2,250 Sub-total 28,390 - - - - - 450 - - 28,840 b. Food Crop Research: Equipment Car 1800 - 2000 cam 1,500 3 4,500 - - - - 3 4,500 - - 9,000 Pulveriser 25 7 175 - - - 7 175 - - 350 Sprayers 20 7 140 - - - - 7 140 - - 280 Scales 150 7 1,050 - - - - - - 1,050 Drying Floor 200 7 1,400 - - - - - - 1,400 Improv. local seed stores 20 20 400 - - - - 20 400 - - 800 Generator 250 1 250 - - - - - - 250 Air-conditioner 100 1 100 - - - - - - 100 Fuel tank 110 2 220 - - - - - - 220 Balance 100 2 200 - - - - - - - - 200 Microscope 100 2 200 - - - - - - - - 200 Germination Box 75 2 150 - - - - - - - - 150 Sub-total - - 8,785 - - - - - 5,215 - - 14,000 c, Cotton Research: Equipment OW Car 1800 - 2000 com 1,500 3 4,500 - - - - 3 4,500 - - 9,000 Knapsack Sprayers 20 7 140 - - - - 7 140 - - 280 a ULV Sprayers 7 7 50 - - - - 7 50 - - 100 Balance 100 7 700 - - - - - - 700 Sub-total - - - - - - 4,690 - - 10,080 TOTAL CAPITAL COSTS - 54,315 - - - - - 10,355 - - 64,670 TOO RURAL DEVEIOPMENt PROJECT IN COTTON AREAS PROJECT COSTS: FIELD TRIALS AND SEED PRODUCTION (CFAF '000) SUnit PY 1FPY2 PY 3 FF4 PY 5 1.ATN Staff Cost LOg - cost No-.Cost No.-Cost -No. Cost No. Cost Cost Total a. Seeds Section Seeds Agronomist (Techn., Expat.) 14,700 1 14,700 1 14,700 1 14,700 - - - 44,100 Seeds Agronomist (Profess.) 3,780 - - 1 3,780 1 3,780 1 3,780 1 3,780 15,120 Seeds Analyst 1,020 - - 1 1,020 1 1,020 1 1,020 1 1,020 4,080 Seed Production Center Manager 1,020 3 3,060 3 3,060 3 3,060 3 3,060 3 3,060 15,300 Tractor Driver 360 3 1,080 3 1,080 3 1,080 3 1,080 3 1,080 5,400 Labor Permanent 80 6 480 6 480 6 480 6 480 6 480 2,400 Labor Casual 80 - - - - 10 800 10 800 10 800 2,400 Watchman 80 3 240 3 240 3 240 3 240 3 240 1,200 Sub-total - - 19,560 - 24,360 - 25,160 - 10,460 - 10,460 90,000 b. Food Crops Research Research Agronomist (Profess., Expat.) 19,300 1 19,300 - - - - - - - - 19,300 Research Agronomist (Profess.) 3,780 2 7,560 2 7,560 2 7,560 2 7,560 2 7,560 37,800 OIC Research Substation 420 7 2,940 7 2,940 7 2,940 7 2,940 7 2,940 14,700 Driver 360 3 1,080 3 1,080 3 1,080 3 1,080 3 1,080 5,400 Clerical Officer 360 1 360 1 360 1 360 1 360 1 360 1,800 Secretary 360 1 360 1 360 1 360 1 360 1 360 1,800 Labor 250 MD/ha, 42 ha 0.35/MD 3,675 3,675 3,675 3,675 3,675 18,375 Sub-total 35,275 15,975 15,975 15,975 15,975 99,175 c. Cotton Research Research Agronomist (Profess.) 3,780 1 3,780 1 3,780 1 3,780 1 3,780 1 3,780 18,900 Research Assistant (Techn.) 1,020 2 2,040 2 2,040 2 2,040 2 2,040 2 2,040 10,200 OIC Research Substation 420 7 2,940 7 2,940 7 2,940 7 2,940 7 2,940 14,700 Secretary 360 1 360 1 360 1 360 1 360 1 360 1,800 Driver 360 3 1,080 3 1,080 3 1,080 3 1,080 3 1,080 5,400 Labor 250 MD/ha, 46 ha 0.35/MD 4,025 4,025 4,025 4,025 4,025 20,125 Sub-total 14,225 14,225 14,225 14,225 14,225 71,125 2. Vehicles Tractor (1600 TH/year) 0.5/TH 3 2,400 3 2,400 3 2,400 3 2,400 3 2,400 12,000 Car (33 CFAF/1an, 30,000 km/year) 1,000 6 6,000 6 6,000 6 6,000 6 6,000 6 6,000 30,000 Motorcycle (20 CFAF/km, 5000 Ion/year) 100 3 300 3 300 3 300 3 300 3 300 1,500 Agric.Machinery (15% of purchase price/year) - 57 2,800 57 2,800 57 2,800 57 2,800 57 2,800 14,000 Sub-total - - 11,500 - 11,500 - 11,500 - 11,506' ' 11,500 57,500 3. Seed Production Fertilizer, Chemicals 7.8/ha - - - - 60 470 50 390 110 860 1,720 Small Equipment, Bags, etc. 3.5/ha - - - - 60 210 50 180 110 390 780 Sub-total - - - - - - 680 - 570 - 1,250 2,500 4. Food Crop Research Fertilizer, Chemicals 7.8/ha 42 330 42 330 42 330 42 330 42 330 1,650 Small Equipment etc. 5.0/ha 42 210 42 210 42 210 42 210 42 210 1,050 sub-total - - 540 - 540 - 540 - 540 - 540 2,700 5. Cotton Research Fertilizer, Chemicals 10.0/ha 46 460 46 460 46 460 46 460 46 460 2,300 Small Equipment 5.0/ha 46 230 46 230 46 230 46 230 46 230 1,150 Sub-total - 690 - 690 - 690 - 690 - 690 3,450 TOTAL OPERATING COSTS - 81,790 - 67,290 - 68,770 - 53,960 - 54,640 326,450 Sumnnary Seeds and Research CAPITAL - 54,315 - - - - - 10,355 - - 64,670 OPERATING - 81,790 - 67,290 - 68,770 - 53,960 - 54,640 326,450 0 TOTAL COST - 136,105 - 67,290 - 68,770 - 64,315 - 54,640 391,120 TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS COST OF TRAINING AND MONITORING AND EVALUATION ('000 CFAF) Unit 1 2 3 4 5 Unit Cost No. Cost No. Cost No. Cost No. Cost No. Cost Total A. TRAINING Equipment Library - 400 150 150 150 150 150 750 Photo - 400 150 - - - - 150 Audiovisual - 150 100 100 - - - 200 Projectors, screens No. 80 5 400 - - - - 400 Duplicating machine No. 150 1 150 - - 150 Blackboards, etc. No. 15 5 75 -- - -75 Sub-total 1,025 250 150 150 150 1,725 Operating Stationary, films, etc. - - 250 250 250 250 250 1,250 Training in IITA Ibadan (3 x 6 months) 1 month 160 6 960 6 960 6 960 - - 2,880 Sub-total 1.210 1,210 1,210 250 250 4,130 Total 2,235 1,460 1,360 400 400 5,855 B. MONITORING, EVALUATION Staff Profess. Agroeconomist No. 1,100 1 1,100 1,100 1,100 1,100 1,100 5,500 Secretary No. 500 1 500 500 500 500 500 2,500 Consultations from IITA Ibadan (incl. research) MD 18 40 720 720 720 720 720 3,600 Operating Cost (incl. car) 1,200 1,200 1,200 1,200 1,200 6,000 Other Consultant Services 5,000 5,000 10,000 Sub-total 3,520 3,520 3,520 8,520 8,520 27,600 Investments Vehicle No. 1,500 1 1,500 - - 1,500 - 3,000 Office equipment - - 300 - - - - 300 Sub-total 1,800 - - 1,500 - 3,300 Total 5,320 3,520 3,520 10,020 8,520 20,900 TOGO RURAL DEVEIDPMENT PROJECT IN COTTON AREAS AGRICULTURAL INPUT REQUIREMENTS (INCREMENTAL) Without Under the Project After the Project UNIT Project PY 1 PY 2 PY 3 PY 4 PY 5 PY 6 PY 7 PY8 PY 9 PY 10 A. FERTILIZER Cotton (NPKSB) t 1,450 2,360 3,010 3,640 4,530 5,240 5,440 5,440 5,440 5,440 Cotton (Urea) t 20 40 410 690 880 1,060 1,330 1,590 1,590 1,590 (Cotton Subtotal) t (1,470) (2,400) (3,420) (4,330) (5,410) (6,300) (6,770) (7,030) (7,030) (7,030) Maize (Urea) t - - 130 240 370 530 630 760 890 1,020 Sorghum (Urea) t - - 50 80 120 160 200 240 280 320 (Urea Subtotal) t (20) (40) (590) (1,010) (1,370) (1,750) (2,160) (2,590) (2,760) (2,930) Groundnuts (Rock Phosphate t - 160 220 270 320 360 410 420 430 430 Fertilizer Total t 964 1,470 2,560 3,820 4,920 6,220 7,350 8,010 8,450 8,630 8,800 B. INSECTICIDES '000 1 107 280 350 430 530 640 640 640 640 640 640 C. COTTON SPRAYERS a. ULV (new purchase) No. (500) (1,600) (1,700) (1,500) (2,700) (1,700) (1,500) (2,700) (1,700) (1,500) ULV (total) No. 500 2,100 3,800 4,800 5,900 5,900 5,900 5,900 5,900 5,900 b. Knapsack (new purchase) No. - - (500) - - (500) - - (500) - Knapsack (total) No. 2,900 1,400 500 500 500 500 500 500 500 500 Sprayers Total No. 3,400 3,500 4,300 5,300 6,400 6,400 6,400 6,400 6,400 6,400 D. DMPROVED SEED Cotton t 500 630 760 950 1,140 1,140 1,140 1,140 1,140 1,140 Maize (Fl) t - - 30 20 60 40 90 65 115 95 Sorghum (Fl) t - - 9 10 16 18 24 26 32 34 Groundnute (Fl) t - - 160 60 200 120 240 170 250 180 Seed Subtotal (F1) t 500 630 960 1,040 1,420 1,320 1,495 1,400 1,540 1,450 Seed Total (F1 + F2) t 500 630 960 1,240 1,510 1,600 1,670 1,760 1,800 1,850 E. SEED DRESSING t 1 1.3 2.0 2.5 3.0 3.2 3.4 3.5 3.6 3.7 -31 E \ TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS ON-FARM INPUTS: Fertilizers and Insecticides (in '000 CFAF) Without Project PY 1 PY 2 PY 3 PY 4 PY 5 I. Fertilizers Without project (t) 964 964 964 964 964 964 Total requirements (t) 964 1,470 2,560 3,820 4.92o 6,2o Project incrmntl. reqs. (t) - 506 1,596 2_856 3,956 5,256 Cost at CFAF 60/kg Without project 57,840 57,840 57,840 57,840 57,840 57,840 Project incrmntl. reqs. 1/ - - 60 95,760 171,360 237,360 315,360 Total 57,840 _88,200 153,600 229,200 295,200 373,200 Farmers' cost at CFAF 15/kg 14,460 22,050 38,400 57,300 73,800 93,300 Subsidy at CFAF 45/kg 43,380 66,150 115,200 171,900 2la400 279,900 57,840 88L200 153,600 229,200 295,200 373,200 IIi. Insecticides Without project ('000 1) 107 107 107 107 107 107 Total requiremnts " 107 280 350 430 530 640 Project incremental reqs. _ 173 _ 323 423 533 Cost at CFAF 725/1 Without project 77,575 77,575 77,575 77,575 77,575 77,575 Project incrmntl. reqs. - 125,425 176,175 234,175 306,675 386,425 Total 771575 203,300 253,750 311,750 384,250 466,000 Farmers' cost at CFAF 400/1 42,800 112,000 140,000 172,000 212,000 256,000 Subsidy at CFAF 325/1 34,77 91,000 113,750 139,750 172,250 208,000 77,575 203,000 253,750 311,750 384,250 466,000 III. Total Fertilizers and Insecticides 2, Farmers cost 57,260 134,050 178,400 2930 25,0o6,0 Subsidy 78,155 157,150 228,950 311,650 393,650 487,900 135,415 291,200 407,350 540,950 679,450 837,200 1/ The cost of additional quantities from year to year is shown in line Bl. of Table 14. ANNEX 9 Table 14 TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS SPECIAL ACCOUNT FOR PROCUREMENT OF INPUT SUPPLIES Resources and Applications (in '000 CFAF in constant terms) PY 1 PY 2 PY 3 PY 4 PY 5 PY 6 A. Cost of Yearly Purchases: Without project: Fertilizers 57,840 57,840 57,840 57,84o 57,840 Insecticides 77,575 77,575 77,575 77,575 77,575 Subtotal 135,415 135,415 135,415 135,415 135,415 135,415 Project incrmntl:Fertilizers 30,360 95,760 171,360 237,360 315,360 Insecticides 125,425 176,175 234,175 306,675 386,425 Subtotal 155,785 271,935 405,535 544,035 701,785 769,585 TOTAL YEARLY PURCHASES 291,200 407,350 540,950 679.450 837,200 905,000 B. Resources of special account: 1. Incremental project reqs. 271,935 133,600 138,500 157,750 2. Govt.:Initial Deposit 300,000 Subsidies for year 157,150 228,950 311,650 393,650 487,900 3. Farmers (for previous year) 134,050 178,400 229,300 285,800 Balance brought forward 49,800 143,785 87,985 12,235 Subtotal 457,150 684,735 767,435 849,435 943,685 Less: yearly purchases 1/ 407,350 540,950 679,450 837,200 905,000 Balance carried forward 49,800 143,785 87,985 12,235 38,685 C. TOTAL GOVERNMENT PAYMENTS 1. Incremental project reqmnt. (Project financed, Govt., 65,265 32,065 33,240 37,860 share 24%). 2. Initial Deposit 300,000 - - - - 3. For subsidies 157,150 228,950 311,650 393,650 487,900 TOTAL 457,150 294,215 343,715 426,890 525,760 1/ Annual purchases will have to be made in August of the preceding year. ANNEX 9 Table 15 TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS SOTOCO's Financing Plan (in current CFAF million) Indicating schedule of Government's required payments 1977 1978 1979 1980 1981 A) SOTOCO's Estimated Expenditure Ongoing costs 14o 150 160 172 185 Additional costs (investment and oper. expenses) for the Project 1/ 565 1,275 12128 1,275 1,234 Total 705 1,425 1,288 1,447 1,419 B.) Funds and Revenues Available to SOTOCO SOTOCO's resources on Jan. 1, 1977 135 - - - FAC and IDA constributions towards Project financing 292 951 861 965 933 Government required payments 275 474 427 482 486 Total 702 1,425 1,288 1,447 1,419 1/ Net of payments to be made by the Borrower into the Special Account for Inputs procurement. ANNEX 9 TOGO Table 16 RURAL DEVELOPMENT PROJECT IN COTTON AREAS PROJECT FINANCING Annual Commitments (CFAF millions) PY i PY 2 PY 3 Py 4 PY 5 Total TOTAL HQ and Field Services- 343 676 580 681 708 2,988 Ox-drawn Cul. - 8 11 9 9 37 Field Trials, etc. 143 71 73 67 57 411 Monitoring and Ev. 6 4 4 10 9 33 Feeder Roads 51 349 241 196 137 974 On Farm Inputs-/ - 281 139 143 163 726 Subtotal 543 1,389 1,048 1,106 1,083 5,169 Contingencies 22 209 253 358 370 1,212 Total 565 1,59 1,30l 1464 16,381 FAC HQ and Field Services 68 132 114 133 139 586 Ox-drawn Cul. - 2 2 2 2 8 Field Trials, etc. 28 14 14 13 11 80 Monitoring and Ev. 1 1 1 2 2 7 Feeder Roads 10 69 46 -39 27 191 On Farm Inputs - 55 27 28 32 142 Subtotal 107 273 204 217 213 1,014 Contingencies 4 31 _1 70 73 239 Total ill 304 265 287 286 1,253 IDAl/ HQ and Field Services 110 377 324 381 395 1,587 Ox-drawn Cul. - 4 6 5 5 20 Field Trials, etc. 46 40 41 38 32 197 Monitoring and Ev. 2 2 2 6 5 17 Feeder Roads 16 195 135 110 77 533 On Farm Inputs 158 78 81 92 409 Subtotal T74 776 586 621 606 2,763 Contingencies 7 116 141 201 207 672 Total 181 892 727 822 813 3,435 GOVT HQ and Field Services 165 167 142 167 174 815 Ox-drawn Cul. - 2 3 2 2 11 Field Trials, etc. 69 17 18 16 14 134 Monitoring and Ev. 3 1 1 2 2 9 Feeder Roads 25 85 60 47 33 250 On Farm Inputs 68 34 34 39 _ Subtotal 262 340 258 268 264 1,392 Contingencies 11 62 51 87 90 301 Total 273 402 309 355 354 1,693 1/ For IDA commitments, starting from Credit signature. 2/ Including seeds and sprayers. / Fertilizers and Insecticides only. TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS Government Cash Flow (in CFAF Million) FY 1 PY 2 PY 3 PY 4 PY 5 PY 6 PY 7 PY 8 PY 9 PY 10 I. SOURCE OF FUNDS A. Government Revenues 1/ Export taxes (lint & seed) 26 60 105 160 224 263 294 328 351 OPAT surplus 294 536 904 1.387 1.977 2.301 2.699 3.070 3.347 Subtotal 320 596 1.00 1.547 2.201 2.564 2 3 3.698 B. External Financing IDA Credit 1 ,073 727 822 573 240 FAC Grant 111 304 265 287 286 - 11 1377 992 1,109 799 240 Subtotal C. Total Sources of Funds 6 188 2118 2.346 2.441 2.564 2.993 3.398 3.698 II. APPLICATION OF FUNDS A. Project Costs 2/ HQ and Field Services 302 662 603 767 791 353 382 386 418 459 Research and Ox-drawn Cultivation 136 82 95 92 79 53 56 60 65 69 Evaluation Unit 5 4 4 13 11 11 14 13 14 15 Input subsidies 180 270 357 443 562 599 625 662 656 661 Feeder Roads Program 48 365 272 236 168 62 66 71 76 81 Subtotal 671 1383 1331 1551 1.611 1.078 1.143 1192 1_229 1L B. Debt Service IDA Credit (Commitment charges) 1 8 14 20 24 26 26 26 26 26 C. Total Application of Funds 672 1 91 I 345 1,571 1.635 1.004 1.169 1.218 1.355 1 311 Net Annual Cash Flow (561) 306 243 548 711 1,437 1,395 1,775 2,143 2,387 Cumulative Cash Flow (255) (12) 536 1,247 2,684 4,079 5,854 7,997 10,384 c 1/ On incremental production (see Table 2, Annex 10). 2/ Net of taxes. RURAL DEVELOPMENT PROJECT IN COTTON AREAS Financial Results of Cotton Marketing (CFAF million, in current prices) PY 1 PY 2 PY 3 PY 4 PY 5 PY 6 PY 7 PY 8 PY 9 PY 10 INCREMENTAL PRODUCTION (tons) Seedcotton 3,478 7,1443 12,049 17,219 22,486 24,738 25,823 26,919 26,919 26,919 Lint 40% 1,391 2,977 4,820 6,888 8,994 9,895 10,329 10,768 10,768 10,768 Cotton seed 557 1,913 145914 6,627 9,470 12,367 13,606 14,203 14,805 14,805 14,805 PRICES (CFAF/kg) Cotton (Producer) 1/ 53.50 57.25 61.26 65.55 70.14 75.05 80.30 85.92 91.93 98.37 Lint (CIF) 2/ 346.99 326.98 346.78 372.85 398.95 426.88 456.76 488.73 522.95 559.55 Seed (CIF) 2/ 27.84 28.74 29.63 30.81 36.17 42.14 48.40 55.72 63.83 68.30 COSTS TO CIF Purchase of seed cotton 186 426 738 1,129 1,577 1,931 2,074 2,313 2,475 2,648 Buying, Transport and Commissions 30 69 120 184 257 302 338 377 403 431 Total costs to CIF 216 195 85 1,313 -_--3 2,233 -,h 2,60 77 3,079 RECEIPTS Sale of Lint 483 973 1,671 2,568 3,588 4,224 4,718 5,263 5,631 6,025 Sale of Seeds 53 118 196 292 447 573 687 825 945 1,011 Total receipts 3/ 536 1,091 1,867 2 4,035 4,797 5,405 6 6,576 7,036 NET PROFITS 320 596 1,009 1,547 2,201 2,564 2,993 3,398 3,698 3,957 of whib: (D Export Taxes 26 60 105 160 224 263 294 328 351 376 N) OPAT surpluL 294 536 904 1 l,fl 9 C 320 596 1,009 1,5147 2,201 2,564 2,993 3,398 3,698 3_,957 1/ Assuming that price is adjusted annually according to the inflation factor (7%). 2/ Net of processing charges, freight and export expenses (See Table 3, Annex 11). 3/ All revenues accruing in any one year have been tabulated in the Cash Flow in the following year. TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS Post-Project Costs 1/ ('000 CFAF) Year 6 Year 7 Year 8 Year 9 Year 10 Total Tax % Amount HQ and Field Services 299,690 303,090 285,990 291,290 297,390 1,477,450 16 236,392 Research and ox-drawn cultivation 44,290 44,290 44,290 44,290 44,290 221,450 15 33,217 Evaluation 8,520 10,020 8,520 8,520 8,520 44,100 10 4,410 Subsidies on Inputs 598,550 625,450 662,050 656,150 661,000 3,203,200 - - Sub-total 951,050 928,850 1,000,850 1,000,250 1,011,200 4,946,200 5 264,019 Feeder Roads Maintenance 41,400. 41,400 41,400 41,400 41,400 207,000 10 20,700 Total 992,.450 1,024,250 1,042,250 1,041,650 1,052,600 5,153,200 6 284,719 If In constant 1977 terms; costs have been inflated by 7% compounded annually in the Cash Flow Table (except for inputs). 0 TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS Financial Benefits Project incremental income in foreign currency LINT SEEDS Project Net PRICES Total Total Total Costs in Foreign IN Quantity Ref. Less Net Income Ref. Less Net Income Proj. Foreign Exchange CURRENT Price Freight Income Mill. Quantity Price Freight Income Mill. Income Exch. Income TERMS (t) $/MT etc. $/MT $ (t) $/MT etc. $/MT $ Mill.$ Mill.$ Mill.$ PY 2 1,391 1,680 106 1,574 2.19 1,913 200 32 168 0.32 2.51 2.43 0.08 PY 3 2,977 1,802 122 1,680 5.00 4,094 212 34 178 0,73 5.73 2.35 3.38 PY 4,820 1,944 130 1,814 8.74 6,627 224 37 187 1.24 9.94 2.69 7.25 PY 5 6,888 2,081 139 1,942 13.38 9,470 253 39 214 2.03 15.41 2.94 12.47 PY 6 8,994 2,226 149 2,077 18.68 12,367 285 42 243 3.00 21.68 3.80 17.88 PY 7 9,895 2,382 159 2,223 22.00 13,606 319 45 274 3.73 25.73 4.21 21.52 PY .3 10,329 2,549 170 2,379 24.57 14,203 358 47 311 4.42 28.99 4.58 24.41 PY 9 10,768 2,727 182 2,545 27.40 14,805 4ol 52 349 5.17 32.57 4.90 27.67 PY 10 10,768 2,918 195 2,723 29.32 14,805 429 55 374 5.54 34.86 5.30 29.56 PY 11 1/ 10,768 3,122 209 2,913 31.37 14,805 459 59 400 5.92 37.19 5.73 31.46 77,598 182.65 106,695 32.10 38.93 175.68 1/ For PY 10 production. o0 ANNEX 11 Page 1 TOGO APPRAISAL OF A RURAL DEVELOPMENT PROJECT IN COTTON AREAS Markets and Prices The Outlook for Cotton Summary 1. Cotton supplies from the record 1974/75 1/ world crop came to market as mill activity was declining at the outset of the 1974/75 recession. Consequently cotton prices declined throughout calendar year 1974. Cotton prices were low relative to costs of production and in relation to alternative crop prices early in 1975, when 1975/76 cotton planting decisions were made. Cotton growers, therefore, shifted a large acreage to food and oil seed crops and cotton production declined even more sharply than had consumption in the previous season, liquidating excess stocks. Cotton prices recovered during most of calendar year 1975, but late in the year a sharp rise in prices resulted from deteriorating crop prospects in areas that were reaching the harvesting stage early in 1976. Therefore, 1976/77 cotton planting decisions were made in the light of cotton prices that were favorable in comparison both to cost of production and to the prices of alternative crops. Although a large shift of acreage back to cotton in 1976/77 is anticipated, the continued recovery in consumption should keep supplies relatively tight at least until the 1977/78 crop is harvested. Accordingly, cotton prices in constant terms are projected at slightly above their long-run equilibrium levels during 1976 and 1977. Late in the 1970s and early in the 1980s the price of Mexican Strict Middling 1-1/16 inch quality is projected at 53 cents per pound in constant 1974 dollars, compared with 48 cents during 1975. The Demand Outlook 2. World cotton consumption declined by five percent in 1974/75 from the previous season's record level. Mill use of cotton declined by 14 percent in the developed countries and by five percent in the developing countries. The moderate uptrend in cotton consumption in the centrally planned economies continued during 1974/75. Recovery in cotton textile activity in most areas during 1975, with the notable exception of Western Europe, is expected to raise cotton consumption during the 1975/76 season to near the 1973/74 level. Positive rates of growth in consumption are projected from 1976 to the mid- eighties. This projection of world cotton consumption is consistent with expected income and population growth and income elasticities of per capita consumption of 0.1 in the developed countries and 0.5 in the developing countries 2/. In the absence of income projections in the centrally 1/ The cotton crop year is August through July. 2/ Unpublished Cotton Study, Commodities Division, IBRD. ANNEX 11 Page 2 planned countries, cotton consumption projections are based on historical trends ajusted for the increasing market share of man-made fibers in Eastern Europe and the USSR. 3. Mill consumption of cotton is expected to continue expanding at a faster rate in the developing countries than in the other regions. This expansion is enhanced by higher income elasticities in the domestic markets and the trade policies embodied in the "Multi-Fiber Arrangement Regarding Trade in Textiles", which permits an annual increase in exports of not less than six percent 1/ of these textile products under trade restraint in "protected" markets. Thus, the developing countries will progressively account for larger shares of total mill consumption of cotton. 4. Although cotton may have improved its market share during the 1974/75 recession, it will continue to face intense competition from the man-made fibers over the next decade. The main threat to cotton's markets is from the synthetic fibers, particularly polyester staple. Polyester staple is highly price-competitive with cotton in the United States but somewhat less so in the other developed countries. In many developing cotton producing countries polyester fibers are produced only in small-scale, high cost plants, and the inroads into cotton's markets have been restricted to a narrow range of products. Competition for cotton from the cellulosic fibers has eased during the last two years as increased costs of pulp, electric power, capital equipment and pollution control have been particularly heavy. Consequently world production of rayon and acetate fell by over 17 percent from 1973 to 1975. Over the longer term, the synthetic fiber producers plan expansions in capacity sufficient to supply the bulk of total fiber require- ments, and cotton's ability to compete profitably will depend largely on improved productivity in production and its technical acceptability for processing and in consumer goods. The Supply Outlook 5. Cotton production over the last two decades has increased at a rate of about two percent per year despite wide annual fluctuations due to variable growing conditions and economic factors. Over this period virtually all of the increase in production has been due to higher yields. During the early 1970s favorable economic conditions prevailed and cotton production expanded at a rate of 4.1 percent per annum between 1970/71 and 1974/75. At the same time, however, the world food situation became precarious and higher food crops shifted some 7.0 million acres out of cotton production in 1975/76. This shift combined with lower yields reduced world cotton production by over 14 percent compared with 1974/75. Sharply lower production concurrent with a recovery in consumption this season indicates a low carryover into the 1976/77 season - equivalent to only about 4.2 months supply. Hence, in the near term the price outlook for cotton is very firm. 1/ Compared with world demand growth at around 4 percent. ANNEX 11 Page 3 6. Prospects are that cotton production during 1976/77 will recover sharply from last season's low level. Cotton prices are favorable in relation to costs of production and compared with those of competitive crops. Cotton growers in the United States indicated that based on conditions as of April 1, 1976 they would increase cotton plantings by 17 percent compared to last year. Expectations of cotton acreage expansions of smaller proportions in other countries are consistent with historical short-run supply elasticities 1/. 7. In a longer-term context, it appears that a faster rate of expansion in cotton production is more likely to occur in the developing countries 2/, where manufacturing capacities are increasing fastest and the potential productivity gains from the application of present technology are greatest. The centrally planned economies accounted for 37 percent of world output during the last three years and there are no indications of any change in the policy of giving a high priority to expanded cotton production. The Price Outlook 8. Cotton prices in constant (1974) dollar terms declined by about one-fourth from the mid-fifties to the mid-sixties. Price trends were then fairly flat from the mid-sixties through 1972 except for a temporary weakness during 1969/70. During the 1973 commodity price boom, cotton prices rose in real terms to the highest level since 1955. Although prices declined throughout 1974 the year's average was still relatively high. Early in 1975 cotton prices were below production costs for many producers and the sharp reduction in output permitted prices to rise gradually. Even so, the 1975 average in constant terms was the lowest in two decades. The smaller 1975 crop and recovering consumption tightened the supply position, and prices during the first quarter of 1976 were nearly a fifth higher than during the last quarter of 1975. Supplies coming to market during the first three quarters of 1976 will remain disappointingly light in view of the upswing in consumption, and the short-term price outlook is firm. The present price projection is based on the assumption that the increase in production in 1976/77 will be offset by rising consumption and that the reestablishment of supply/demand equilibrium at around the long-run level will occur with the 1977/78 harvest. Accordingly cotton prices are forecast at slightly above the long-run level during 1976 and 1977. In the late seventies and early eighties the expected price level for Mexican Strict Middling 1-1/6 inch cotton, c.i.f. North Europe, is 53 cents per pound in constant 1974 US dollar terms. Costs 1/ World Demand Prospects for Cotton in 1980, Foreign Agricultural Economic Report No. 000 ERS, USDA, Washington, January 1971. 2/ Of the 62 developing cotton producting countries, cotton lint alone accounts for more than 10 percent of total export earnings in 16 countries, 11 of which have average per capita incomes of under $200. From 1955 to 1973 cotton production grew at an annual rate of 3.3 percent in the developing countries compared with -1 percent in developed countries and 3.0 percent in the centrally planned economies. ANNEX 11 Page 4 of producing cotton in constant terms should level off by the late 1970s as lower fertilizer costs and rising productivity offset other cost increases. On the demand side, competitive pressure from the man-made fibers will keep cotton prices near their long-run cost levels. This price projection is consistent with the long-term trends and with the historical relationship between US production costs and the c.i.f. North Europe quotation for Mexican SM 1-1/16 inch quality 1/. 1/ This price projection is not relevant to the extra-long staples which are used mainly in sewing thread and in the finer goods. The demand for ELS cottons has been even more seriously affected by synthetic fiber than has the demand for the medium staples. Annex 11 Table 1 COTTON: GROWTH RATES OF PRODUCTION, CONSUMPTION AND TRADE 1960/62 to 1972/74 1972/74 to 1980 1981 to 1985 PRODUCTION Developed 0.0 0.0 0.2 Developing 2.3 0.9 3.8 Centrally Planned 4.8 1.9 3.0 World 2.3 1.1 2.6 CONSUMPflON Developed -0.8 -1.4 0.0 Developing 3.9 3.0 3.9 Centrally Planned 3.9 2.8 3.0 World 2.1 1.7 2.6 EXPORTS Developed 1.0 1.0 1.0 Developing 0.3 0.4 1.0 Centrally Planned 5.3 2.9 2.7 World 1.2 1.2 1.2 IMPORTS Developed -0.6 -1.2 -0.5 Developing 4.7 3.3 2.9 Centrally Planned 3.5 3.0 2.5 World 1.3 1.2 1.2 Source: Economic Analysis and Projections Department COTTONs SUMMARY OF PRODUCTIOI COUSUMPT1IO AlND TRADE BY AREAS (million Kg5 ACTUAL ESTIMATED PROJECTED Average 1960/61 1967/68-1969/70 1970/71 1971/72 1972/73 1973/76 1976/75 1975/76 1976/77 1980/81 1985/86 PRODUCTION Developed 3,426 2,685 2,821 3,026 3,775 3,568 3,367 2,502 3,100 3,570 3,600 Developing 3,808 4,855 4,430 5,285 5,265 5,114 5,259 4,588 5,100 5,530 6,650 Centrally Planned 2,926 3,831 1,332 h,486 h,2h9 h,748 4 ,989 4,900 5,000 5.hO0 6,250 World 10,160 11,371 11,583 12,797 13,289 13,430 13,615 11,990 13,200 14,500 16,500 CONSUMPTION Developed 4,380 1,306 4,240 4,259 4,190 4.158 3.562 3,800 3.900 3.600 3,600 Developing 2,429 3.315 3,h73 3,613 3,868 4.174 3,980 ,280 4,600 h.900 5.950 Centrally Planned 3,h00 4.208 4.173 h.633 4,766 4.957 5.107 5.1h0 5.200 6,ooo 6.950 World 10,209 11,829 12.186 12.505 12.824 13.289 12.6h9 13,220 13,700 14.500 16.500 EXPORTS Developed 1,609 1,065 1.192 1,162 1,569 1,624 1,127 1,100 1,550 1.630 Developing 1.706 2,093 2,090 2,168 2,176 1.835 1,831 1,80 2.000 2.100 Centrally Planned h24 523 550 626 670 70 675 760 850 970 World 3.739 3.681 3,832 3.956 4,A15 4.199 3.633 3,700 4,00 4.700 IMPORTS Developed 2,h07 2,174 2,137 2,17 2,355 2,129 1,779 1.800 1.900 1,850 Developing 530 718 895 846 894 1,013 854 900 1,150 1,325 Centrally Planned 712 821 977 970 1,189 1,164 976 1.000 1,350 1,525 World 3,679 3,713 1,009 3,963 4,38 4,306 3,609 3.700 1,00 4.700 Source: Actual USDA, Estimated and Projected Bconomic Analysis and Projections Department Annex 11 Table 3 TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS DETAILED PRICE CALCULATION FOR COTTON - 1977 Lint Seed Total Seed Cotton Reference Price ($/MT) 1719 2/ 189 3/ Reference Price (CFAF/MT) 4/ 421155 46305 Less.Quality 5/ 17000 - Net Reference Price 6/ 404155 46305 Freight, Insurance and Handling 26000 12800 FOB Lome 378155 33505 Port Charges 1560 700 Transport and Handling 4306 4463 Insurance 3300 500 Value pre-factory 368989 27842 Ginning Costs 22000 . - After Ginning Value 346989 - Yield 40% 55% Equivalent Value Seed Cotton 138796 15313 154109 Buying and Transport 7515 Economic Farm Gate Value 146594 Producer Price 50000 Commissions 1200 Taxes 7592 OPAT Surplus 87802 1/ Detailed example. For summary calculations by Year see Table 2. 2/ World Bank Commodity Price Projections, November 1976. Based on Mexican Strict Middling 1-1/16" e.i.f. 1. Europe. Prices in 1977 terms. 3/ World Bank Commodity Price Projections, August 1976, based on market outlooks for cotton seed oil and cottonseed expeller. Price in 1977 constant terms 4/ At Exchange Rate of CFAF 245:US$ 5/ Quality differential to allow for staple and grade variation. Based on FAC and CFDT reports. 6/ Marketing and Handling costs based on 4ission estimates TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS PRICE STRUCTURE FOR COTTON 1977-1986 1/ (in 1977 constant terms) 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 Reference Pric7 ($/MT) a) Lt 2 1719 1550 1539 1545 1545 1545 1545 1545 1545 1545 b) S d 3 189 185 181 178 188 198 207 217 227 227 Net Reference Price (CFAF/MT) a) Lint 4 4o155 362750 360055 361525 361525 361525 361525 361525 361525 361525 b) Seed -T! 46305 45325 4--345 43610 46o6o 48510 50715 53165 55615 55615 Equivalent value seed cotton after ginning a) Lint 138796 122234 121156 121744 121744 121744 121744 121744 121744 121744 b) Seed 15313 14774 14235 13831 15178 16526 17739 19086 20434 20434 Total 154109 137008 135391 135575 136922 138270 139483 140830 142178 142178 Buying and Transport 7515 7515 7515 7515 7515 7515 7515 7515 7515 7515 Economic Farmgate Value 146594 129493 127876 128060 129407 130755 131968 133315 134663 134663 Producer Price 50000 50000 50000 50000 50000 50000 50000 50000 50000 50000 Commissions 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 Taxes 7592 7592 7592 7592 7592 7592 7592 7592 7592 7592 OPAT Surplus 87802 70701 69084 69084 70615 71963 73176 74253 75871 75871 1/ For example of full calculation see Table 1. 2/ Bank Commodity Price Projections, November 1976. Based on Mexican Strict Middling 1-1/16" cif Europe. 3/ Bank Commodity Projections; August 1976, based on market outlooks for cottonseed oil and cottonseed expeller. 5/ At exchange rate of CFAF 245:US$. For Lint a reduction of CFAF 17,000/MT has been made to adjust for a quality differential due to a staple and grade variation (estimated from FAC and CFDT reports). RURAL DEVELOPMENT PROJECT IN THE COTTON AREAS REFERENCE PRICES FOR FOOD CROPS 1/ (1977 Constant Prices) 1977 1978 1979 1980 1981 1982 1983 1984 1985 on Maize ($/HT) 2/ 120.0 124.9 126.6 125.6 125.6 125.6 125.7 125.7 125.7 Sorghum ($/MT) 3/ 110.0 110.0 112.0 111.0 111.0 110.9 110.9 110.8 110.8 Groundnuts ($/MT) 4/ 420.0 372.1 376.6 377.6 394.0 410.5 426.9 443.3 459.8 I/ World Bank Commodity Price Projections; November 1976; in 1977 Constant Dollars. (1981 - 1984 Prices based on linear trend between 1980 and 1985 forecasts). 2/ U.S. No. 2, yellow, f.o.b. Gulf Ports 3/ U.S. No. 2, Milo yellow, f.o.b. Gulf Ports 4/ Nigerian c.i.f. Europe TOGO RURAL DEVELOPMENT PROJECT IN THE COTTON AREAS PRICE STRUCTURE FOR MAIZE 1 (1977 Constant Terms) 1977 1978 and on Reference Price ($/MT) 120.0 125.7 Reference Price (CFAF/MT) 2/ 29400 30796 Freight 8800 8800 Insurance 1600 1680 CIF Lome 39800 41276 Port Charges 950 950 Transport Charges 1050 1050 Value Lome 41800 43276 Transport from Upcountry 3000 3000 Buying and Handling 2500 2500 Economic Farmgate Value 36300 37776 1/ World Bank Commodity Projections, November 1976, in Constant 1977 dollars. 1978 and on reference price based on average of 1978 to 1985 prices. See Table 3 Transport and Marketing costs based on mission estimates. 2/ At exchange rate of CFAF 245:US$ TOGO RURAL DEVELOPMENT PROJECT IN THE COTTON AREAS PRICE STRUCTURE FOR SORGHUM 1/ (1977 Constant Terms) All Years Reference Price ($/MT) 111 Reference Price (CFAF/MT)2/ 27195 Freight 8800 Insurance 1480 CIF Lome 37475 Port Charges 950 Delivery to Warehouse 1050 Transport and Handling 9500 Delivered Upcountry 48975 Buying and Delivery 2500 Economic Farmgate Value 46475 1/ Based on average of World Bank Commodity Price Projections, November 1976, in constant 1977 dollars (See Table 3). Transport and Marketing costs based on mission estimates. 2/ At exchange rate of CFAF 245: US$ M- RURAL DEVELOPMENT PROJECT IN THE COTTON AREAS PRICE STRUCTURE FOR GROUNDNUTS 1/ (1977 Constant Terms) 1977 1978 1979 1980 1981 1982 1983 1984 1985 Reference Price ($/Ur) 420.0 372.1 376.6 377.6 394.0 410.5 426.9 443.3 459.8 Reference Price (CTFAr/MT) 2/ 102900 91164 92267 92512 96530 100572 104590 108608 112651 Freight 8784 8784 8784 8784 8784 8784 8784 8784 8784 Insurance 5598 4959 5019 5033 5251 5471 5689 5908 6128 FOB Lome 88518 77421 78464 78695 82495 86317 90117 93916 97739 Port Charges 965 965 965 965 965 965 965 965 965 Transport and Storage 2108 2108 2108 2108 2108 2108 2108 2108 2108 Transportation frou Upcountry 6557 6557 6557 6557 6557 6557 6557 6557 6557 Buying and Handling 4847 4847 4847 4847 4847 4847 4847 4847 4847 Economic Parmgate Value 74041 62944 63987 64218 68018 71840 75640 79439 83262 Producer Price 50000 50000 50000 50000 50000 50000 50000 50000 50000 Commission 1200 1200 1200 1200 1200 1200 1200 1200 1200 Taxes 8762 8762 8762 8762 8762 8762 8762 8762 8762 OPAT Surplus 14079 2982 4025 4256 8056 11878 15678 19477 23300 1/ Porld Bank Conodity Price Projections, November 1976, in constant 1977 dollars (See Table 3). Transport and Marketing costs based on mission estimates. 04 2I At euchange rate of CFAF 245:US$ ANNEX 12 Page 1 TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS Economic Rate of Return 1. Base data for the economic rate of return calculation is shown in Table 1 where benefits and costs are presented by year in 1977 constant terms. Benefits have been calculated using the economic farmgate prices detailed in Annex 11 and the incremental production figures presented in Annex 4, Table 12. Economic prices have been calculated using reference prices estimated by the Bank's Commodities and Export Projections Division. Cotton and groundnuts are assumed exported, maize and sorghum as import substitutes. To allow for marketing periods, the incremental benefit stream has been lagged by six months in the rate of return calculations although this is not shown in the table. 2. Costs have been expressed including physical contingencies and net of identifiable taxes and subsidies. Costs include buildings, furniture and equipment, feeder roads, vehicles, agricultural and research equipment, staff salaries, operating costs, fertilizer, pesticides, seed and an imputed cost for incremental farm labor. Incremental farm labor requirements (all family labor) has been calculated in terms of incremental adult labor days from the farm budgets in Annex 4, Tables 3 to 6 and valued at CFAF 200/work day (US$0.82) - the prevailing average daily rural wage. Given the general on-farm underemployment, and limited off-farm employment opportunities in the areas covered by the project, farm labor might have been over-valued. This assumption is tested for sensitivity in the analysis. 3. Rate of return results are presented in Table 2. An exchange rate of CFAF 245 = US$1.0 has been used throughout. Because the project consists primarily of providing extension and other services to the farmers, with a relatively small amount of infrastructure a ten year project period has been assumed, yielding a rate of return of 32%; extending the period to 15 years would yield a return of 35%. As is normally the case with such projects, the rate of return is fairly sensitive to changes in costs or benefits. A fall in benefits or a rise in costs of 20% reduce the rate of return to 14% and 17%, respectively. If incremental family labor is costed at CFAF 100 (US$0.41) per ALE 1/ day or is not costed, the rate of return rises to 41% and 52%, respectively. 4. An indication of the effect that an incomplete realization of project output targets would have on the economic rate of return, is provided in item 2 of Table 2. Such an influence is approximated by multiplying the total benefit stream, the seasonal input (fertilizer, pesticide and seed) cost stream and the farm labor cost stream by a given factor whilst leaving project investment and operating costs at base levels. Thus, for a 70% real- ization, these three streams are multiplied by 0.7 and the rate of return becomes 20%. 1/ ALE = Adult labor Equivalent. TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS ECONOMIC BENEFITS AND COSTS (CFAF Million, 1977 constant terms) Project Year PY I PY 2 PY 3 PY 4 PYS PY 6* PY-7 PY 8 PY 9 PY 10 INCREMENTAL BENEFITS Cotton 509.8 963.8 1540.8 2205.1 2909.8 3234.6 3407.8 3588.7 3625.0 3625.0 Maize (9.9) 47.1 145.2 181.5 225.2 318.8 413.7 442.7 473.3 502.3 Sorghum (7.0) 38.7 60.9 88.0 113.3 155.4 198.7 215.5 234.5 253.5 Groundnuts (3.0) (4.5) 54.8 76.5 99.3 126.4 151.3 182.7 196.5 198.0 Total Incremental Benefits 1/ 490 1045 1802 2551 3348 3835 4171 4430 4579 4579 INCREMENTAL COSTS Investments 162.1 369.4 256.2 368.7 349.6 68.0 71.1 56.1 60.8 66.0 Operating Costs and Salaries 253.6 193.3 302.2 283.9 301.7 237.0 237.0 237.0 237.0 237.0 Evaluation and Studies 5.3 41.0 41.0 10.2 8.6 8.0 9.4 8.0 8.0 8.0 Farm Inputs 328.6 469.3 613.2 762.3 952.3 1010.1 1048.9 1093.0 1090.9 1099.3 FeederiRoads 376.2 205.7 226.7 323.3 35.7 35.7 35.7 35.7 35.7 35.7 Farm Labor 96.0 232.0 376.0 528.0 685.0 751.0 810.0 839.0 857.0 875.0 Total Incremental Costs 1222 1511 1815 2276 2333 2110 2212 2269 2289 2321 NET INCREMENTAL BENEFITS (732) (466) (13) 275 1015 1725 2091 2161 2240 2258 1/ Benefit stream lagged by 6 months in economic rate of return calculation. Annex 12 Table 2 TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS Economic Rate of Return and Sensitivity 1/ Rate of Return % 1. Base Estimate = 32 Sensitivity: Benefits Costs 80% 100% = 14 90% 100% = 23 110% 100% 40 120% 100% = 48 100% 80% = 52 100% 90% = 41 100% 110% = 24 100% 120% = 17 2. Realization of Project Expansion Targets at: 90% of Mission Estimate = 28 80% of Mission Estimate = 24 70% of Mission Estimate = 20 3. Costing of Family Labor at: Zero = 52 50% of average rural wage = 41 4. Project Life of-15 years = 35 1/ See text in Annex for explanation of analysis assumptions and interpretation of results. ANNEX 13 TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS Semi-Annual Schedule of Disbursements (us$ '000) Disbursements Undisbursed During At End Of IDA FY Semester Semester Cumulative Semester 1978 Second 1,450 1,450 12,550 1979 First 1,700 3,150 10,850 Second 1,700 4,850 9,150 1980 First 1,700 6,550 7,450 Second 1,700 8,250 5,750 1981 First 1,700 9,950 4,050 Second 1,700 11,650 2,350 1982 First 1,700 13,350 650 Second 650 14,000 - ANNEX 14 Page 1 TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS Audit Terms of Reference Reasons for the Bank Group's Auditing Requirements In any business or other enterprise the prompt and regular prepara- tion of accurate accounts is an important means of ensuring that the enter- prise is carrying out adequately the tasks assigned to it. Accounts are essential not only for the enterprise itself, but also for lenders, who need reliable information about the financial condition of the organization they are helping to finance. As a lender, the Bank Group, in appraising a project, has to be satisfied that the financial data presented are accurate and com- plete, and that, during the implementation of the project, the borrower will have adequate financial controls and follow proper accounting principles. These are the reasons why the services of auditors are required for Bank/IDA projects. Definition of Audit An audit is an authorized examination of the accounts and account- ing system of an organization, whose purpose is to enable the auditors to report on the financial statements of the organization and to express an opinion on their fairness, consistency and conformity with accepted account- ing principles. The essential features of an audit are: (a) to make a critical review of the system of bookkeeping, accounting and internal control; (b) to make such tests and enquiries as the auditors consider necessary to form an opinion as to the reliability of the records as a basis for the preparation of accounts; (c) to compare the financial statements with the underlying records in order to see whether they are in accordance with them; (d) to make a critical review of the financial statements and to report whether, in the opinion of the auditors, the accounts are presented and the items are described in such a way that they show not only a true but also a fair view and give in the prescribed manner the information required by law. ANNEX 14 Page 2 Selection and Appointment of Auditors The borrower is responsible for the selection and appointment of auditors. The Bank Group requires, however, that the person or firm appointed should have experience and qualifications acceptable both to the Bank Group and to the borrower. The criteria employed by the Bank Group in judging the acceptability of auditors are that the auditors should be professionally qualified and, in particular: (a) be impartial and independent of the control of the entity subject to audit and of the person appointing them; in particular, the auditors should not, during the period covered by the audit, be employed by, or serve as director for, or have any financial or close business relationship with the entity, except as independent professional advisers; (b) be well-established and reputable, using procedures and methods in conformity with internationally recognized and generally accepted auditing practice and employing adequate staff with professional qualifications and suitable experience by international standards; and (c) have experience of auditing the accounts of entitites comparable in nature, size and complexity to the entity whose audit they are to undertake. Before project auditors are appointed, therefore, the borrower should arrange that the Bank Group be furnished with sufficient information about the auditors to enable it to satisfy itself on the above matters. This information would normally include the name of the firm (or Government department or agency) the names and qualifications of the principals, the approximate number of professional staff employed and some of the main audits carried out. Professional and Government Auditors The choice between professional and Government auditors will normal- ly depend on the nature of the project and who is executing it. A non-revenue earning project being carried out by a Government department, following Govern- ment accounting and budgeting procedures, would normally be audited by the Government auditor. On the other hand, a revenue earning project executed by a company or corporation (whether wholly Government-owned or not), and using commercial accounting and budgeting procedures, would normally be audited by a professional firm. In some cases, the nature of the project calls for a joint audit by the Government auditor in collaboration with a professional firm. ANNEX 14 Page 3 To encourage the growth of domestic firms of auditors, the Bank, wherever possible, agrees to the appointment of a local firm, either alone or in conjunction with the international firm. Audit Procedures The procedures employed by the auditor should always be designed to enable him to arrive at an opinion on the fairness of the financial state- ments which are the subject of his report: The extent of the auditor's tests of the accounting records is dependent on the system of accounts and internal check and control maintained by the company. For this purpose, the auditor should examine: (a) the organization and procedures for taking financial decisions and authorizing expenditures; (b) the design, management and operation of the accounting system; (c) the efficiency of the system of internal control and of the internal audit; (d) the adequacy and competence of accounts staff; (e) the effectiveness of related systems and procedures, such as inventory control, or data processing. In the light of this examination of systems and procedures, the auditor should test the financial transactions of the organization, in con- junction with such evidence, documentary or otherwise, as may be necessary to enable him to be satisfied as to the authenticity and correctness of the transactions, their complete and proper record in the books of account, and their effect on the financial results. The evidence referred to above will include: documents such as checks, invoices, contracts, minutes of meetings, bank statements and confirmation by third parties of amounts payable or receivable; and information obtained by the auditor from enquiry, observa- tion and physical inspection. By means of similar tests, the auditor should satisfy himself as to the existence and basis of valuation of assets and liabilities, such as: (a) land, building, machinery and equipment, including the provision for depreciation; (b) inventories, including provision for obsolescence, spoilage or losses; ANNEX 14 Page 4 (c) receivables, including provisions for bad and doubtful debts; (d) cash and bank balances; (e) amounts due to third parties (long and short-term loans and suppliers' accounts payable). In addition, the auditors' examination should cover such items as capital commitments, contingent liabilities and events occurring after the balance sheet date (for example, material changes in the value of commodity in- ventories). Audit Reports The auditors should submit both short-form and long-form reports. These reports should be addressed to the Chairman of the Board of Directors (or equivalent) and not to any member of the management. The following is an example of short-form report: "We have examined the balance sheet of as of , 19_, and the profit and loss account and related statements for the year then ended. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records, verification of assets and liabilities, and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the accompanying financial statements and appended notes present fairly the financial position at , 19-, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles, applied on a basis consistent in all material respects with that of the previous year." When a qualified opinion is offered by the auditors, or when an opinion is disclaimed, the opinion paragraph of a short-form report should be modified in such a way as to make clear the nature of the qualification or disclaimer. It should refer specifically to the subject of the qualifica- tion and of the effect on the financial position and results of operations, if reasonably determinable. The report should include comments, if any, deemed appropriate by the auditor with respect to any material deficiencies or inadequacies in the organization's accounts or accounting system and recommendations for improving accounting procedures. ANNEX 14 Page 5 The long-form report is an extension of the short-form report and should give appropriate details (analyses, summaries, explanations and com- ments) of items in the various audited financial statements. The audited financial statements would normally include: (a) balance sheet; (b) profit and loss account; (c) profit and loss (income and expenditure) statement for each major unit contributing a material part, say more than 20% of revenue of incurring more than say, 20% of costs, or such other criteria as the auditor shall determine; (d) statement of sources and application of funds. All statements should, when practicable, show comparative figures for the preceding year. Comments and recommendations in the long-form report would cover, for example: (a) implementation of recommendations made in previous years; (b) management organization; (c) budgetary control; (d) financial and field controls; (e) payroll, procurement and sales procedures; (f) inventory control and stock levels; (g) adherence to public accounting standards; (h) efficacy of the internal audit procedures; and (i) events after the date of the balance sheet significantly affecting the financial position. The borrower should arrange for copies of the short- and lon-form reports to be transmitted to the Bank Group together with the audited accounts. ANNEX 15 TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS Draft Terms of Reference for the Project Monitoring and Evaluation 1. The project would be monitored and evaluated by the Project Monitor- ing and Evaluation Unit (PMEU) which has been established by the Ministry of Rural Development and already has monitoring responsibilities for the IDA- financed Maritime Region Rural Development Project. The unit is headed by a senior officer of this Ministry. 2. The PMEU would be reinforced under this proposed project by a Project Officer (PO) who would have preferably a B.Sc. or M.Sc. degree in agricultural economics or equivalent. Preference would be given to candidates having experience with work with smallholder farmers in Africa. The candidate should be imaginative, have good organizing abilities and a sound knowledge of statistical evaluating methods. The appointment would be subject to the approval of IDA. 3. The PO would report directly to the head of PMEU in Lome. He would be preferably stationed at SOTOCO's headquarters in Atakpame. He would work in close cooperation with SOTOCO's Technical Manager and would selectively use SOTOCO and SORAD's extension services for monitoring activities. In justified cases, he would arrange for the hiring and training of independent enumerators and would organize the logistics and supervision of their field activities. Use would be made of the University of Lome and agricultural college in Palime students, who during vacations would be given a chance to do monitoring work and thus get acquainted with the project and its objectives. 4. To ensure uniformity and comparability of work within the PMEU the PO would work along similar lines as outlined in the Maritime Region Rural Development Project. Monitoring would be basically carried out at two levels -- the farm and the project level. At the farm level data would be collected on a selective basis on population, patterns of land use, data on farmer inputs and equipment, use of credit and marketing arrangements. An important part would be establishing farmers' response to project participation and the feedback of farmers' views to project management. At project level the PMEU would monitor mainly the physical progress of project activities, i.e. adoption rates of farmers, areas planted to project crops, yields, production, input supply and consumption, efficiency of training and extension services, progress with feeder roads and wells construction, marketing and ginning activities, procurement procedures and disbursement. Timeliness in detecting problems in project implementation and giving advance warning to project management and IDA would be an important feature of PO's activities. The PO would cooperate with project management on quarterly and annual reports (Annex 16). 5. An agreement has been reached with IITA Ibadan that researchers of the Institute's Farming Systems Program would provide consultancy services to PMEU on organization, establishment of objectives, field work and design and data processing. IITA personnel would visit this project twice a year; finance for these visits has been included in project costs. ANNEX 16 Page 1 TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS Reporting Requirements 1. SOTOCO would keep annual records of performance and measure accom- plishments against appraisal estimates. These data would serve both as an essential management tool during the project life and as a major input for the eventual preparation of any follow-up project. 2. These records would be presented to IDA at the end of each cropping year and would be arranged in a set of standard tables used for project progress reporting in the West Africa region. The tables would inform on numbers of project farmers; improved crop areas; yields; production; produc- tion of improved seeds; use of fertilizers, improved seeds, pesticides and sprayers; progress of ox-training and ox-drawn cultivation; farmgate prices, import and export substitution prices; cost to growers of fertilizers, pest- icides; seeds, other inputs and subsidies; inflation rates; costs of labor and official minimum wages; average labor requirements for project crops in ALE days; average cost-benefit ratios; simplified farm budgets for average project farms in the four project regions; total returns to economy from main project crops; project staff; credit to farmers; feeder roads and rural wells develop- ment. Verbal comments would be made on climate, marketing and ginneries, progress of research work, training and cooperation with other institutions. The agricultural research unit would produce a separate report that would become part of SOTOCO's annual report. 3. The reporting forms would include appraisal estimates, actual data in absolute terms and in relation to appraisal estimats. An example of the form of reporting is given in Table 1. 4. In addition to this yearly report project management would submit quarterly reports on expenditures, disbursement and physical progress in the main project components. All reports would be worked out in cooperation with the Projects Evaluation Unit (PEU). 5. Details of reporting requirements would be discussed with project management and PEU during the first supervision mission. TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS REPORTING REQUIREMENTS Annual Progress Report - Farm and Crop Development PY 1 PY 2 PY 3 PY 4 PY 5 Item A AE % A AE % A AE % A AE % A AE % Project farmers (No.) Region: PL 11,400 14,300 17,100 21,400 25,700 CE 5,000 6,700 8,300 10,800 13,300 KA 2,700 3,700 4,700 6,000 7,300 SA 4,00o 4,800 5,600 6 200 7,000 Total 23,100 29,500 35,700 ,400 53,300 Improved crop areas (hkt) Cotton: PL 7,980 10,010 11,970 14,980 17,990 CE 3,000 4,020 4,980 6,480 7,980 KA 810 1,110 1,410 1,800 2,190 SA 2,000 2 ,400 2 800 3,100 3,500 Total 13,790 17, 50 21,160 26,360 31,660 Maize: PL - 3,500 7,980 10,010 12,040 CE - 780 1,020 1,320 1,710 Total - 0 9,000 11,330 13,780 Sorghum: CE - 1,800 2,040 2,700 3,300 KA - 500 800 1,100 1,400 SA - 1,500 2 000 2 400 2,800 Total - 3,800 ,:O 6:200 7,500 Groundnuts: KA - - 100 200 300 x SA - 1,500 2,000 2,400 HF Total - 1,600 2,200 2,700 A = Actual achievement AE = Appraisal estimate % = A x 100 AE  IBRD 12608 . T- S A V AN A- -. lo Ih, -p d, os msanne e cy rhl Aango hM - ý fik -7i -10° 10o- K A R Bassan Baflbo 0 - - Tchamba -9°'D Solkode z C E N T RA Sotouboua - ILI -8° TOGO8- RURAL DEVELOPMENT PROJECT IN COTTON AREAS ADMINISTRATIVE DISTRICTS WITH POPULATION DENSITY C naonsper km2 Amaek pam 31-- 60 Reg,o, - 7 D0tru . _ _ - ,- R A R i T - E TOG; iCNR .- ADMIISTATIE DSTRCTSP L4 TE A ogr JANUARY 197  IBRD 12609 S . UP PER VOL TA Kong Kound re apaon - - - - - 'Boombok Nodi 1 -BougouLr s A NA ~onann ~ 10 Ihnh,oh' -PO ,pd,,a ango Gboodnownon s onoWoloBn adisafIae Kande \K RA KIaboun Niamtougou ,Ogouda Lama Kara \ Bafo Bassar· C E N T R A L --- / chamba \9 -9°K" Stode 9 \ z Korrinbole Sotouboua TOGO RURAL DEVELOPMENT PROJECT Su IN COTTON AREAS Paggl. SOTOCO INSTITUTIONAL INFRASTRUCTURE, Ks PRIMARY ROAD NETWORK Tchiarab,o Proiec Area P L A T E A U Ma- Roads ® National Capital @ Sotoco Headq odters © Soroco Regional Headqu,arters • Bador:&k * Sotoco Sectoral Headquao rersKpde A Giner,es Amlm O Seed Mult,pl,cat,on Centers D,strict Boundones Regional Bo.dones -- Interntional Bondaries Gbto V.d.ugb ,MA 1T I É Tabligbo- TsevNe r.ehc  IBRD 12610 U P P E R VOL TA MAURITANMA NIGER SENEGAtý z 'D fUPO fEý N GERIA ~ q*~solo, 1p1v cnd-rsm-nto ac-p-an by, the IV,) s - -1t fd , -8-- TOGO RURAL DEVELOPMENT PROJECT IN COTTON AREAS MAIN SOIL. GROUPS Atakp.me Wealcly Developed Soils (L.thos.ls) Vertisols and S,milor Soils Brown TropicaI Soils 8 8 Ferralitic Soils Ferruginous Tropical Soils Halomorph,c Sords ~7-, Hydromorphic Sodls River National CpitOAl International Boundaries Ferrug.neusT Tvoice So- , 2 , 4,0 , P 6 80 100 b Aneho KILOMETERS LOME G f o! Benin 10° JANUARY 1977  IBRD 12611 인 』 - - ■■‘ - 「 l : - -