Colombia - Livestock Development Project

- - IFP PTI: II T IRESTRICTED WlTO.t' DE$IT TV ln^v%Report No. TO-52:3a WITHIN I 1~~~~~vur n 1vv ONE WEEK | JUiLL CVPY r h,;- .prt was prepcire-d for use wit'hin th-e Bonk ond its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be publishted nor may it be quoted as re-presenring rtheir views. . INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION LIVESTOCK DEVELOPMENT PROJECT COLOMBIA April L, 1966 Projects Department  C UR1R ENC Y EQUI'VALEN TS 1 US dollar = 9 Col. Pesos 1 Col. Peso = 0. II US dollar 1, 000, 000 Col. Pesos = I 1 1, 000 US dollar  C 0 L 0 M B I A LIVESTOCK DEVELOPMENE PROJECT mIJi OFL UVV4OF T Page No. SUMY i- ii I. INTRODUCTION 1 II. BACKGIROUND 1 III. THE PROJECT 5 A. General iDescription 5 B. Detailed Features 6 C. Cost Est:umates 8 D. Proposed Financing 10 E. Disbursement 11 F. Operating Results 12 IV. ORGANIZATION AND MANAGEMENT 12 V. BENEFITS AND JUSTIFICATION 14 VI. CONCLUSIONS AND RECOMMENDATIONS 17 ANNWEXES 1. Caja de Credito Agrario Industrial Y Minero 2. Investment Costs of the La Costa Beef Project 3. Investment Cost of the Los Llanos Beef Project 4. Investment Cost of the Narino Dairy Project 5. Investment Costs at the Barranqidlla Dairy Project 6. Investment Costs of the Sheep Project 7. Project Cash Flow Statement 8. Organization Chart 9. Development of a LiOO Cow "La Costa" Beef Cattle Farm 10. Development of a 4OO Cow "Los hlanos" Beef Cattle Farm 1l. DeveJ-ooment cf a 30 Cow "Narino" Dairv Farm L2. Development of a 100 Cow "Barraniquil-la"' Dairy Farm 13. Develonment cof a Pilot SheeD Farm 14. Cash Flow of Incremental Costs aind Benefits MAPS (2)  COLOMBIA LIVESTOCK DEVELOPMENT PROJECT ,'Tnn/r~fA T3V i. The Government of Colombia has requested a Bank loan of US$ 16.7 million to help finance the Iirst stage of its livestock development program which aims at the improvement of the beef cattle, dairy cattle and sheep industry. The Colombian agriculture has great potentiais, both in productivity and in developing hitherto unused lands for the production of beef, milk and wool. There is at the same time a pressing need for the increasie of livestock production to cover growing domestic and exporlt demands. ii. Because there is little experience in Colombia of public financing of long-term livestock development, a pilot type of approach would be used at this stage, confining the project to specific regions. These regions have been selected for the highest land potential, and the availability of suitable markets. iii. The project is directed mainly at on-farm improvements such as land clearance, fencing, water supplies, stock handling facilities and the improvement of pastures and breeding stock. These improvements would raise both output and efficiency of production. iv. It is expected that about 900 beef cattle ranches, 250 dairy farms and 3', sheep farms would participate in the project. In all cases long-term development credit to farmers of up to twelve years is envisaged. Investment in each sector would be spread over three years. v. The organization and administration of the project would be carried out by the Caia de Gredito Agrario Tndustrial v Minero (Caia). A special livestook devolopmant department headed by a Technical Director with a small staff of exnerts would be set un for this nurpose within the Cala This department would be responsible for assisting farmers in preparing individual develonment nlans; for recommending these to the Caja for lending and for supervising the execution of plans for which loans are macle Financially and administratively the raa would pro cess these loans in the normal way through its regional offices which are well equipped to do so vi The project is estimated to cost a total of about US$ 28 million of which US$ 25 million or about 90 per cent would be for farm development. Costs for contractors machnery, cooperative dairy equipment and technical services count for the balance of US$ 3 million or about 10 per cent. The Bank loan would cover 6O per cent of the total project cost. The balanc,e would be provided by the Caja (22 per cent), participnting