China - Agriculture Technology Transfer Project (Vol. 4 of 5) : Social Assessment Report - Hunan

35126 v 4 Social Assessment Report for World Bank Financed China Agricultural Technology Project Hunan Sub-repor CONTENTS Chapter 1 Project Summary in Hunan....................................1 I. Background of Hunan................................................................................................................. 1 II. Project Background ................................................................................................................... 2 Chapter 2 Detailed Survey of Each Project ............................2 I. Two-System Super Hybrid Paddy Project of Hunan Province......................................... 2 (I) Project Background .......................................................................................... 2 (II) Affected Area, Affected Farmers and Project................................................... 3 (III) Comments and Suggestions.............................................................................. 5 II. Nuisance Free Vegetable of Changsha County................................................................. 8 (I) Project Background .......................................................................................... 8 (II) Affected Area, Affected Farmers and Project ........................................................................ 8 (III) Comments and Suggestions............................................................................ 10 III. High-quality Melon and Fruit Farm Production of Shaoyang City......................... 12 (I) Project Background ........................................................................................ 12 (II) Affected Area, Affected Farmers and Project................................................. 13 (III) Comments and Suggestions............................................................................ 15 IV. "Green" Yellow Day Lily Project of Qidong County............................................................. 18 (I) Project Background ........................................................................................ 18 (II) Affected Area, Affected Farmers and Project................................................. 18 (III) Comments and Suggestions............................................................................ 19 V. Beef Cattle Project of Lianyuan City, Hunan Province ........................................................... 20 (I) Project Background ........................................................................................ 20 (II) Affected Area, Affected Farmers and Project................................................. 21 (III) Comments and Suggestions............................................................................ 23 VI. Milk cow embryo transplantation of Hunan Province ........................................................... 25 (I) Project Background ........................................................................................ 25 (II) Affected Area, Affected Farmers and Project................................................. 25 1  (III) Comments and Suggestions............................................................................ 27 VII. Hunan Zhenghong Live Pig Project...................................................................................... 29 (I) Project Background ........................................................................................ 29 (II) Affected Area, Affected Farmers and Project................................................. 29 (III) Comments and Suggestions............................................................................ 30 VIII. Changde Triploid Chinese White Poplar............................................................................. 32 (I) Project Background ........................................................................................ 32 (II) Affected Area, Affected Farmers and Project................................................. 33 (III) Comments and Suggestions............................................................................ 34 IX. Oil Tea Project of Chaling County......................................................................................... 35 (I) Project Background ........................................................................................ 35 (II) Affected Area, Affected Farmers and Project................................................. 36 (III) Comments and Suggestions............................................................................ 37 X. Citrus Project of Yuanjiang City.............................................................................................. 39 (I) Project Background ........................................................................................ 39 (II) Affected Area, Affected Farmers and Project................................................. 40 (III) Comments and Suggestions............................................................................ 42 XI. Citrus Project of Yongzhou City in Hunan Province.............................................................. 43 (I) Project Background ........................................................................................ 43 (II) Affected Area, Affected Farmers and Project................................................. 44 (III) Comments and Suggestions............................................................................ 45 XII. Borneol Camphor Tree Project of Xinhuang Dong Nationality Autonomous County ......... 47 (I) Project Background ........................................................................................ 47 (II) Affected Area, Affected Farmers and Project................................................. 47 (III) Comments and Suggestions............................................................................ 49 XIII. Miluo Jiahua cattle industry project .................................................................................... 51 (I) Project Background ........................................................................................ 51 (II) Affected Area, Affected Farmers and Project................................................. 52 (III) Comments and Suggestions............................................................................ 53 III. Farmer Beneficiary Participation Program ...................55 I. Background of Farmer Beneficiaries........................................................................................ 55 II. Benefiting Environment of Farmer Beneficiaries.................................................................... 56 III. Expected Benefits of Farmer Beneficiaries............................................................................ 56 IV. About Foundation of Folk Organizations ............................................................................... 57 V. Beneficiary Participatory Activity Program............................................................................. 57 (I) Comments on Ensuring Beneficiaries' Full Participation of Project Activities .................... 57 (II) List of Participatory Activities............................................................................................. 58 (III) List of Participatory Activities of Beneficiaries ................................................................. 59 Chapter 4 Overall Review and Discussion ............................64 I. About Agro-tech Popularization and Training .......................................................................... 64 (I) About Agro-tech Popularization............................................................................................ 64 (I) About Agro-tech Training ..................................................................................................... 65 2  II. About Scheduling of Project Construction .............................................................................. 66 III. About Mode of Participation of "company + farmer"............................................................ 67 IV. Project Beneficiaries............................................................................................................... 68 V. Participation of Affected Farmers and Women........................................................................ 68 VI. About Perception of Project Risks ......................................................................................... 69 VII. About Project Monitoring..................................................................................................... 69 Attached Table..........................................................................69 3  Chapter 1 Project Summary in Hunan I. Background of Hunan Hunan Province is located on the south bank of the middle reaches of the Yangtze River. The province governs 14 cities (prefectures), 122 counties (districts), 2353 townships (including 104 minority townships), with a total population of 65,958,500 people, including agricultural population of 51,973,400 people, 30,964,300 rural laborers. There are altogether 55 minorities, with a total population of 6)410,700 people, including 2,639,500 Tujia people, accounting for 41.17% of the total minority population, 1,921,500 people Miao people, accounting for 29.9%, 842,100 Tong people, accounting for 13.14%, 704,600 Yao people, accounting for 10.99%, 125,600 Bai people, accounting for 1.96%, the others 177,400 people, accounting for 2.77%. The province has a total land area of 211,800km2, cultivated area of 3912.6kha (2,959.9kha paddy field and 952.7kha dry land), accounting for 15.2% of the total land area; forest area of 9579.5kha, forest cover rate of 52.76%; grassland area of 4007kha, water surface area of 1513kha, fresh water aquiculture area of 422.5kha. Hunan is characterized by subtropical monsoon humid climate, plenty of rainfall, sufficient sunshine and distinctive seasons, long frost-free period, suitable for the growth of animals and plants; the annual average air temperature is 16-18 , annual average rainfall 1300-1700mm, frost-free period 265-310 days, annual sunshine duration 1300-1800 hours. The province's GDP in 2001 was 398.3 billion yuan, including agricultural total output value of 131.3 billion yuan; total financial revenue of 36.1 billion yuan (the local fiscal revenue is 20.541 billion yuan), the per capita farmer income is 2299.46yuan. Hunan is a major agricultural province and one of the main agricultural producing areas of China, where the output of grain, live pig, cotton, oil, ramie, tealeaf, citrus, aquatic products ranks top in China. In 2001, the province's gross grain output was 27,003,000t, ranking 6th nationwide, of which the rough rice output is 23,289,000t, ranking top nationwide; the cotton output 190,000t, ranking 7th nationwide; the oil output 1)374,000t, ranking 7th nationwide; the ramie output 94,000t, ranking 1st nationwide; the tealeaf output 58,000t, ranking 5th nationwide; the citrus output 1)408,000t, ranking 3rd nationwide; the amount of released pork pigs 62,575,000 heads, ranking 2nd nationwide; the output of aquatic products 1410,000t, ranking 10th nationwide; the amount of released beef cattle 1)377,000 heads, the amount of released sheep 5)692,000 heads. Quality specialties include yellow day lily, Hunan lotus nut, mushroom, ginger, pepper, etc. 1 However, Hunan's agriculture is extensive as a whole, the rural economic structure, especially the industrial structure is not rational enough. The main cause is the low technological level of agricultural production. With China's entry into the WTO, the trend of economic globalization is increasing, which requires a higher speed of industrial 1Data source: "Hunan Yearbook 2002", by Hunan People's Government, Hunan Yearbook Press, Oct 2002. 1  restructuring. Hunan is also a major province in terms of population with relative scanty per capita resources. The final approach to satisfy people's demand for quantity and quality of farm products and get adapted to global competition is to improve farmers' technological accomplishment based on technical advance, realize the transformation from extensive operation to intensive operation. Accordingly, the Hunan people's government has proposed the strategy of "revitalizing Hunan with science and education" and "sustainable development", trying to raise the contribution of agro-tech to agricultural economic growth. This World Bank financed technological demonstration and popularization project is executed at the right time in Hunan. II. Project Background The 13 projects selected in Hunan are distributed in 11 cities (Changsha, Zhuzhou, Yueyang, Yiyang, Changde, Hengyang, Chenzhou, Yongzhou, Huaihua, Shaoyang and Loudi) and the project execution locations cover 12 cities. 13 companies or units have participated in the project, including the National Hybrid Paddy Engineering Center, the Beijing Forestry University, Hunan Agricultural University, Central China Forestry College, Hunan Normal University, Canada IND Group, Hunan Academy of Agricultural Sciences, Hunan Academy of Forestry Sciences, Hunan Traditional Chinese Medical College, Hunan Melon Research Institute, Heredity Institute of the Chinese Academy of Sciences, National Feed Engineering Research Center, Beijing Tianfulai Biotechnology Limited, Central China Agricultural University, Zhejiang Academy of Agricultural Sciences, Changsha Vegetable Research Institute, Hunan Stockbreeding & Veterinary Research Institute, Canada Stockbreeding Service Company. Above 100 experts have participated in the project, including Academician Yuan Longping and Academician Zhu Zhiti of the Chinese Academy of Engineering and other famous professors famous in China. Above 96,000 farmer families are directly involved in the project. Chapter 2 Detailed Survey of Each Project I. Two-System Super Hybrid Paddy Project of Hunan Province (I) Project Background Construction Unit Educational Service Center of Agricultural Science and Technology of Hunan Province Technology support Unit National Hybrid Paddy Engineering Center Construction site Suxian District of Chenzhou City, Rucheng County Main construction 1. Instruments and facilities equipped for the key laboratory for scientific contents research, a base of 14 ha. for breeding of seeds of parents; 2. A base of 80 ha. for breeding of nucleus seeds and raw seeds of the high quality dual-purpose 2  genic male sterile line in paddy, a production base of 2133 ha. of high quality F1 super hybrid paddy seeds; 3. A seed processing factory house and a warehouse of 3600 square meters; a set of production line for choice, measurement and packaging of seeds and the corresponding instruments to be purchased; 4. A seed quality test center of 300 m2 with concerning test instruments and multi-spots of 12 ha. for ecological appraise of the male sterile line in paddy and a base for seed purity appraise; 5.A seed marketing center of 600 square meters and an agricultural technology training center of 600 square meters. Major techniques to be 1. Breeding selection technique for new combinations of two-system super demonstrated and hybrid paddy; 2. Breeding selection technique of parents of two-system super popularized hybrid paddy; 3. Reproduction technique of parents of two-system super hybrid paddy; 4. Technique for high-yield seed manufacture of high quality F1 super hybrid paddy; 5. Techniques for cultivation of high-yield super paddy; 6. Technique for seed quality test. Economical benefits Annual production capacity of 0.24 million kg seeds of the high quality dual- purpose genic male sterile line in paddy; annual production capacity of 0.08 million kg seeds of restoring line in paddy; annual production capacity of 6.4 million kg of high-quality F1 super hybrid paddy seeds; annual sales revenue of 82.88 million Yuan, tax to be gathered of 3.98 million Yuan, net profits of 8.08 million Yuan; investment tax rate of 33%, a rate of return on investment of 24.58%, an investment recovery period of 6.06 years (including construction period) Social Benefits 6.4 million kg high quality F1 super hybrid paddy seeds can be popularly planted into 6.4 million mu, increasing the grain yield by 0.32 million tons compared with that of three-system hybrid paddy and obviously improving the quality; increasing the annual revenue of the farmers to manufacture seeds by over 8 million Yuan and pushing the farmers' prosperity; improving the popularization and use of the advanced and practical agricultural techniques, improving the scientific nature of the farmers and adding the farmers' employment (II) Affected Area, Affected Farmers and Project The project location--Suxian District and Rucheng County under Chenzhou City are situated south of Hunan, with advantaged natural and ecological environment. It is one of the most suitable areas for the seed cultivation of 2-strain super hybrid paddy. In 2000, the central area of this project--Suxian Experiment Base--created the world record of 777.8kg per mu seed yield of 2-strain super hybrid paddy. Rucheng County was listed as a "state-level production & operation base county for seed cultivation of hybrid paddy" in 1989, with large area per mu seed yield of 300kg for 3-strain hybrid paddy, small area per mu seed yield of 400kg, ranking top nationwide. The affected area has a total population of 700,100 people, of which the agricultural population is 517,700 people, minority population 54,700 people, 219,500 rural laborers, including 103,400 women laborers. The SA Team conducted a field investigation on Gaoyaling Village in Liangtian Town under Chenzhou City--one of the execution locations of the project. This village started seed cultivation since 1977, when the government organized some literate farmers to study seed cultivation in Hainan, a production brigade has about 10-20mu land for seed cultivation, the seed was sold at 2yuan/catty (the grain price was 0.75yuan/catty at that time) and the per mu yield was about 200 catty. After the allocation of land to family, farmers continued with seed cultivation and increase their technique, increasing the output to 500-700 3  catty/mu. There was at most 800mu field in the village used for seed cultivation. Later, due to the development of tobacco leaf, the field of seed cultivation reduced. Now 170 families are dealing with seed cultivation, accounting for above 40% of the total number of families. The provincial seed company once cooperated with this village for seed cultivation for 5 years. At present, this village is cooperating with Guangxi Shenlong Dafeng Seed Technologies Inc. for a contract period of 1 year. The project executive unit contacted with this village in Mar 2003 and publicized the coverage of project construction. The company previously in cooperation with this village simply contracted the purchase of seed and invested little in the village, generally thousands to 10,000yuan. Now the Provincial Science & Education Center is willing to deal with infrastructure construction for them, so the village hopes to cooperate with the center. Farmers attending the forum hope the fund can be in place as soon as possible. As for the purpose of the World Bank fund, they hope it can be used for the construction of water conservancy facilities and roads, and expect that the project organizer can advance the initial fund. The risks proposed by farmers include climatic risk, variety risk and risk from poor mastery or immaturity of the technique. Attached: Villager Interview Case 1: Chen X, female, 41 years, having acted as woman director for 3 sessions, now being chairman of the village planned parenthood association. Her family has 6 members, 6mu paddy field, 3mu dry land, 3-4mu of which was previously used for seed cultivation, but only 1mu is used for seed cultivation this year, mainly because her husband has received a surgical operation and the family lacks labor, her son and daughter in law are working outside, she has to take care of his grandson. The remaining paddy field is used to grow middle-season rice, the dry land is used to grow sweep potato, peanut, vegetable. She spends 60-70% of her time on farming and also serve some jobs at the village. She would make investigations at rural areas and is also a midwife. In 2001, her earned 5000yuan from seed cultivation, 500yuan from pig raising and 300yuan from duck raising. The expenditure is mainly living expenses, above 400yuan a month. The income from seed cultivation is at least 300yuan/mu. If the per mu yield is over 400 catty, the income would be above 600yuan. After harvest, the land may be used to grow late rice and cash crops. 70% seed cultivation operators at the village are women, most men are working outside. Here, many male laborers are working nearby and would help at home in the busy season. As long as the seed price is reasonable and the seed combination is good, villagers don't have to work outside. Seed cultivation mainly includes the transplantation of rice seedlings and pollination, needing labor for harvest. When this project is executed, more women will participate. She thinks the pattern of company + farmer is good, because the company assigns technicians for guidance and the output is high, all farmers have made a profit. She suggests that: 1) the company shall provide good seed combinations to farmers; 2) risk sharing, in case of a natural 4  disaster, the company shall give certain compensation to farmers; 3) the price shall be rational, the income on seed cultivation shall be higher than planting regular rice; 4) the company shall provide farmers with a superior environment, increase its investment in agricultural facilities at the seed cultivation base to improve the local irrigation and traffic conditions, especially that a mechanized farming road can be built to relieve the labor intensity of farmers; and 5) they can buy fertilizer on credit and repay the money to the company after harvest. So far, the contract has guaranteed farmers' interests, villagers are the greatest beneficiary. The main risk is natural disaster. (III) Comments and Suggestions 1. Comments and Suggestions of the World Bank Mission Mission Recommendations: Proposal is potentially suited to be included under the project. However, the Review of the proposal elicited the following mission comments and recommendations: