(TELEFOOD PROJECT EXAMPLE)

Small-Scale Commercial Poultry Keeping (Eastern Europe)

Target group
Peasants, especially women, that left collective farmers and are organizing their own farms according to new economic relationships, from the mentioned villages.

Besides direct beneficiaries of the grant there will be the community beneficiary of the activities undertaken by these people. There will be created a community fund for the establishment of a cooperative of meet producers so far more peasants could be implicated in the production process. This idea will be as a second stage of the evolution of Telefood Project in the regions. The percent of financial resources introduced into this fund will be around 20% of net revenue.

The main objective of the project follow on will be the development of rural regions and strong network of agricultural producers. After the termination of the grant year the financial resources and human experience will be used to open similar projects in other regions of Country X. The mentioned pre-requisites exist all over Country X that is why the Federation's marketing department is reviving the existed relations among Country X producers and local markets and consumers from all over the CIS.

At the end of 199- (autumn) there will be purchased DOC and pig livestock to be distributed to other people that draw their interest to this kind of activities. They will be able to utilize the yields they gathered in 199- to grow pigs and to sell them in spring 199- at a reasonable price. The mentioned scheme will be developed similar to Telefood Pig Keeping Projects.

For 199-, we intend to organize in 30 villages communal producers of different agricultural products similar to the samples FAO has enriched us with. The financial resources, inputs will come from mutual Federation's and the communal funds participation.

The farmer's role will be in providing organizational skills and suggesting the regions the project to be better implemented. The existing network at the Federation will allow to monitor the certain projects quite easily. Also it will give all kind of consultations and administration assistance to the peasants implicated in the project. All the mentioned assistance is free.

Background and justification
There are big importers of chicken meat in Country X. According to the official numbers in 199-there have been imported 1502 tons of this meat at a total price of 8.2 million local currency (LC) and 72 tons of frozen chicken meat at a price of 480000 LC. These products have been imported from .... As a matter of fact the products imported from BB are not produced in there: they have been reexported. So far the major importers of fresh chicken products are AA (595 tons), BB (288 tons), CC (102 tons). The declared prices at the customs were as follows:

During January 199- there were imported 66 tons of frozen chicken meat at a price of about ..

The market prices of the chicken products are comprised between 12.0 and 12.6 LC at wholesale and 13.0 to 13.7 LC retail sale per kg of chicken meat. The eggs are sold at a price of 3.60 - 4.50 LC.

Our intentions are to sell the meat at 12 LC/kg and 3.60 LC per 10 chicken eggs. Besides there are other secondary products that could be sold as well and could be marketed as well on local markets.

This project will be implemented in the villages below selected for this project by the following reasons:

· A - a village with poor, post-privatization peasants, but situated in the northern part of Country X, area usually more rich financially and also because of rich food supplies considerations, far from ..., the capital of the Republic and the greatest market of Country X. Nevertheless the local market infrastructure is developing because of other country merchants coming to buy products from Country X.

· B - a village situated in the ... zone, close to ...- town where major fights were registered during the conflict from 1992, with poor peasants. This territory is also poor in many concerns - it has suffered from war, it was situated on a border territory with an uncertain political dependency. It is far from the capital of the Republic and the greatest market of Country X but close to other emerging markets.

· C - a village situated at 25 km distance from..... The total population is around 6492 inhabitants. The working population is 3216 people, pensioners 910. Alone old people. Socially vulnerable families around 300, families with four children - 20. 623 children of preschool age (0-6 years).

· D - a village, due to the expansion of the capital, situated very close to the greatest markets, good stock facilities with big refrigerators under communal supervision. Cheap food supplies is a pro reason for developing this kind of activities in that area.

A general consideration for all the three units is that there will be used food stocks risen by the people implicated into this project and the average price for it will be lower.

People selected for this project are mainly poorest as a result of collective farms reforms and their poor management. These people received their land titles but don't formally own their parcels. They just raise their food product (grain, apples, vegetables and potatoes) that, actually don't generate considerable profits.

The project will be as a stimulation for benefits growing for the above mentioned producers.

In each case (village) there will be working around 15 to 18 people of different ages (20-65, depending on the village). Mainly members of three families of different size but enough motivated to raise birds.

Under the circumstances of the agrarian reforms almost all of the peasants face similar problems: lack of finances and equipment to cultivate high yields. The land quotas they received doesn't permit them to take credits from banks. Even in the near future they wouldn't be able to take credits. As a result will be the increasing of poverty with all the consequences.

Pre-requisites
- existing tradition of keeping and consuming poultry products
- marketing (market information will follow below)
- the feed resources are available locally
- existing local willingness to participate in the program
- the non-government agency that will monitor the project is the National Farmers Federation of Country X
- supervisor from State officials will be the Ministry of Agriculture of Country X
- the participants are well aware about the production of poultry products being and consuming these products during all their lifetime
- the supply of hybrid stock, feeds, drugs and vaccines is easily available at the market.

Objective
Establishment of small-scale commercial egg (300 layer flocks) and broilers (300 batch) enterprises in the villages positioned in different geographical regions of Country X.

Duration: 12 months.

Outputs (per unit)
1. An established 300 bird Laying Flock producing 55080 eggs/cycle (255 birds producing 240 eggs less 10% breakage) and 255 cull birds per year.
2. An established 300 batch Broiler division producing 255 broiler (1.8 kg liveweight) per batch, 5 batches per year

Output (per 4 units)
1. 220320 eggs, 1020 cull birds
2. 1020 broilers x 1.8 kg x 5 cycles equals 9180 kg liveweight per year

Activities

· Establishing of three small-scale commercial flocks and broiler units in three different geographical areas.
· Purchasing of Day-old-Chicks
· Vaccination against predominant infectious diseases
· Providing of complete rations for both layers and broilers on their growing needs
· Providing free ventilation, food and water troughs, lighting, brooding and rearing facilities
· Providing adequate eggs and food storage facilities

Inputs

Four units of similar scheme

Benefits per four units
1. at a price of 3.6 LC (0.41 USD)/per 10 eggs there is expected an income of 79315,2 LC (9116,7 USD); 17340 LC (1993 USD) from selling cull birds

2. at a price of 12 LC (1.4 USD)/per 1 kg broiler meat it is expected a profit of 110160 LC (12662,07 USD)

TOTAL 206815,2 LC

Estimated costs

There will be an incubator of 300 eggs/cycle put at disposal for the sustainability of the whole project with all sanitation conditions. It will generate low input costs.

* The costs are given dependently on some existent facilities
** The prices are given in USD (on date) for the 8.7 Country X local currency to 1 USA dollar.
*** The food costs are given as from the consideration of 0.21 USD including rearing and first 3 months of lay
****first batch

Monitoring and Reporting
The national implementing agency will be responsible for providing FAO with quarterly and final reports in an agreed format.

Annex. Basic Information about the National Farmers Federation of Country X

The National Farmers Federation of Country X was created at the Constitutional Assembly in December 8th, 199- by 29 Farmers Associations (FAS) from 11 districts of the country. The necessity to create such an organization was motivated by the privatization process in agriculture. Hundreds of thousands private farmers emerged as a result of this process. They separated from still existing old colhozes and sovhozes and remained alone and dispersed with their daily problems. Neither Local Administration bodies' nor Government is interested to approach private farmers problems that create an opportunity and necessity to form a private farmers organization. The creation of such an organization was accelerated by a UE TACIS Project FD .../... "Creation of a National Federation of Farmers Associations", which has been finished by the 8th of August, 199-.

The National Farmers Federation of Country X is a non-governmental, non-political, non-profit organization. It was registered by the Registration Chamber of the Ministry of Justice of the Republic of Country X on December 22, 199-.

The main objective of the Federation is to represent and defend the private farmers interests at governmental and non-governmental levels; to organize service delivery to private farmers, thus enhancing the living level of private farmers.

Therefore, in relation to above, the Federation undertakes efforts to successfully fulfil the objectives provided by its Statute:
· To organize legal advisory service for farmers;
· To organize info and training service for farmers;
· To organize credit consulting service;
· To organize farm inputs supply units;
· To organize marketing of agricultural produce.

The Leading Bodies of the Federation are:
· General Assembly;
· Administrative Council;
· Supervisory Committee;
· The President of the Federation is elected by the General Assembly.

Aiming to efficiently fulfil its objectives, the Federation has established a Management Body, which is managed by a General Manager and split into three departments:

· Legal department presented by the lawyer;
· Credit and finance department represented by a credit advisor;
· Marketing department represented by a marketing specialist.

The Federation created a marketing company "Agrimex" which activates under supervision and assistance of the Marketing Dept. of the Federation.

The Federation membership represents over 20000 members and this number is continuously increasing due to its activities that contribute to the solutions of problems faced by farmers. These activities are carried on in co-operation with other programmes and technical assistance projects in Country X provided by international community.

Today, over 20000 private farmers from 35 of 40 districts of Country X are members of the Federation, including 6200 women farmers.