Announcement of World Bank Helps China’s Poor with Livestock Development on December 22, 1999

World Bank Helps China's Poor with Livestock Development WASHINGTON, December 22, 1999The World Bank today approved a US$93.5 million poverty-reduction project in China that will increase the incomes of around 140,000 small holder farmers in some of the countrys poorest rural areas. The project will help the farmers diversify their farming systems and sources of income which are now predominantly from the harvesting of corn and other grains. The farmers will continue to grow their crops but will also raise 2-3 cattle each to supplement their earnings. Incomes are expected to rise from their current levels of about US$100 per capita per year to about US$200-300 per year. In addition, the project will also provide employment opportunities in the rural economy through commercial development. The development of the proposed nine cattle markets, 130 feedlots, and five processing enterprises would provide additional employment for about 3,000 people. Through the project, municipal and township finance bureaus will lend money to farmers for breeding cattle and their repayments will be used to pay back the loan. The small feedlots will be using existing crop byproducts that would otherwise go to waste, such as corn stalks, oilseed cake or bran that are not suitable for human consumption. The disposal or burning of such crop residues would no longer be necessary and the project will therefore alleviate a serious air pollution problem in China. Improving agriculture to meet the demands for Chinas growing population of around 1.2 billion is a main objective for the World Banks lending program in the country. The World Bank will be working closely with the government of China on the countrys policy of developing its beef cattle sector. The inland provinces of Henan, Hebei, Anhui, and Shanxi will be given special attention for this project. The total cost of the Smallholder Cattle Development Project is US$180.8 million, financing includes US$24.60 million from the government of China and will be disbursed as a standard single-currency, LIBOR-based loan. The loan has a maturity of 20 years with a 5 year grace period. For more information on China please see www.worldbank.org/eap.