Salavanh Province SAL/PR/04: Sustainable Livestock Health Management System for Salavanh Province

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1 Salavanh Province SAL/PR/04: Sustainable Livestock Health Management System for Salavanh Province Subproject Name Country Province Subproject code Number Subproject type Source of Funding/Amount ADB and IFAD Sustainable Livestock Health Management System for Salavanh Province Lao PDR Salavanh SAL/PR/04 Poverty ADB Grant No: 0144-LAO (SF) IFAD Grant No: 0145-LAO (DSF 8025-LA) Thematic Classification Sector/Subsector Description Economic growth Social Development Capacity Development Agriculture and Natural Resources / Agriculture and Rural Sector Development The subproject is implemented in 622 villages of 58 Kumb Bans in 8 districts of Salavanh province. Livestock industries form an important part of the local economy in subproject areas. They account for about 10 per cent of GDP and are an extremely important component of cash income for smallholders particularly in upland areas. In terms of animal numbers, the major livestock industries are poultry, pigs, buffalo and cattle. In general, smallholders dominate livestock production, with small numbers of commercial operators around major population areas. In terms of animal numbers, poultry production is the most important livestock activity in subproject area, with almost 75 per cent of households raising chickens. According to the PAFO data, the chicken numbers have increased by about 1.1 million heads in 2005 to 3.1 million heads in 2007 and 4.7 million in 2010, the number of chickens in subproject area grew 4.5 times from 2005 to There are an average of 650,000 heads in each district. Pig production is, likewise an important livestock activity in subproject area, particularly in the uplands where around 50 per cent of households raise pigs, and these provide cash income and a subsistence protein source. Smallholders dominate production, with commercial producers located near major population area as with poultry. In the smallholder system, pig raising is almost exclusively the responsibility of women. PAFO estimates that in 2010 population in subproject area was at 773,000 heads. The data show that the numbers of pigs have increased by about 250,000 heads in 2005 to 296,000 in 2007 and 773,000 in Smallholder s account for around 95 per cent of pig raising establishments. In most smallholder systems, pigs roam freely around houses and villages scavenging part of their food requirements. Supplementary cooked feed is also provided; and the feed gathering and preparation process is labor intensive. Supplementary feeds include rice bran, broken rice, banana stem, yams, maize and other vegetation. Cattle and buffaloes are also major sources of cash income for smallholders in subproject area, particularly in upland areas. Buffalo is closely tied to draught power and land cultivation, while cattle and buffalo also have added benefit for being able to utilize common property land for grazing. Data of PAFO show that there are around 250,000 cattle and buffaloes in subproject area. According to the PAFO, the population of cattle has increased from in 2005 to 117,000 in 2007 and to 142,000 in The number of buffalo has also increased from about 80,000 in 2005, to 89,000 in 2007 and 108,000 in The major difference among cattle and buffalo and other livestock industries in subproject area is that there is significant trading in live animals to neighboring countries like Vietnam and Thailand. Average weights of cattle are from kgs whilst for buffalo is between kgs. Road access to the subproject area limited and some road are impassable during the rainy season,thus, it is difficult to transport live cattle and buffalo to the market. Smallholders dominate chicken production, with the average smallholder raising around 20 chickens. There is some commercial activity around

2 major population areas. However, the commercial sector is constrained by high costs for feeds and other inputs. There is shortage of supply of concentrated feeds in subproject area; hence commercial producers generally rely on imported feeds from Thailand, mixed with available domestic feeds. In the smallholder system, raising poultry is generally the responsibility of women in the household. Chickens largely are free range where they source out food from around houses and villages with supplementary feeds consisting largely of rice which are fed twice a day to chickens. There is a range of diseases that affect livestock in subproject areas. The major livestock diseases in subproject areas are:- Classical Swine Fever affecting pigs, Haemorrhagic Septicaemia affecting cattle and buffalo, Newcastle s Disease and Highly pathologic avian influenza for chicken and other fowls and Foot and Mouth Disease also affecting Cattle and buffalo. The lack of prevalence data to examine the demand for vaccine in subproject areas seems to be a major issue. In the absence of other complicating factors, a farmer would decide whether or not to administer vaccine to his livestock for a particular disease based on assessments of a combination of i) the actual or perceived risk of catching the disease; ii) the effects of the disease on livestock; iii) the cost of the vaccination relative to the value of the livestock (including the labor costs involved in the process); and iv) the effect of the vaccine on the risk of catching the disease. The village veterinary worker (VVW) plays a crucial role in the vaccination supply chain as the agent who has direct contact with smallholders and in many cases administers the vaccine. The VVW is officially an unpaid position, reporting to the District Agriculture and Forestry Office. However, (i) the VVW recoups costs and earns money from vaccinating animals by charging some service fees on vaccination, charging to administer the vaccine or some combination of these two schemes; (ii) The province has implemented training programs for the VVW, but trainers and trainers of trainers were not well qualified and experienced, many of the trained persons drop out from the job and don t maintain performance of their role, (iii) one of the major problems in the past in regards training is that it was not market-driven. VVW s were trained, but with less demand for their services, consequently, they did not last long in their volunteer veterinary work. The anticipated status of livestock vaccination in subproject area as follows: The demand for vaccines by commercial livestock producers will steadily increase as the number and size of such enterprises increase Commercial producers can access affordable vaccines from many sources. They will use vaccines that are of high quality, conveniently sourced, promptly supplied and appropriately priced for their production systems. International distributors are already supplying unknown quantities of vaccine in relatively small consignments Smallholders can buy animal vaccines or have their animals vaccinated on a fee for service rendered through village veterinary workers who are deployed through the government vaccine distribution network. Smallholders access to vaccines and good animal health advice in remote areas is poor at this stage but should improve with ensuing subproject implementation Smallholders use of vaccine will probably increase slowly, driven by their ability to supply cash markets, their awareness and understanding of infectious animal diseases and the role of vaccination in protecting their investment in livestock raising and the income generated from livestock raising. More active, educated and committed advisers would increase interested smallholders awareness and understanding. The government and provincial policy of maintaining artificially low prices of vaccines to encourage smallholder vaccination is not increasing demand and should be reviewed. There are no major donors committed to funding the operations of the vaccination component of animal health management system in the future. Impact/ Project Beneficiaries The subproject of Sustainable Livestock Health Management System for Salavanh Province will directly and indirectly generate significant socioeconomic benefits and help to reduce poverty in 58 Kumbans and 400 villages of Salavanh province and adjacent areas. The poverty rate in the subproject area is quite high. In accordance with the data on survey results of PPO, in the subproject areas, poor farmer s households account for about 20.3% of total subproject households. Farmers raise livestock for household consumption but the animals suffer from various types of diseases resulting in high animal mortality rates. Women perform much hard work in the house and in agriculture and livelihood activities, they lack of time to actively participate in community activities due to numerous tasks, which threaten their health, and self esteem. Women, too have limited access to financial resources and other social services. But due to the expected gains in subproject implementation, poor households and all men, women, ethnic groups and vulnerable groups living in the subproject area will get direct benefits in the form of animal health management system

3 inputs like equipment for cold chain for the vaccination, grassroots work of VVW in 8 DAFOs; and vaccines to protect livestock from any forms of disease as cited in Economic Costs and Benefits. The subproject will help to reduce the diseases of livestock in the subproject area. According to the calculation results, the total benefits will be 1,691,460 US$ per year. It is shown that the sub-project will contribute to poverty alleviation and income generation for the local people, and at the same time, create favorable conditions for easy access to other socio-economic benefits. Outcome Increased Productivity and farmers Income through. Outputs 1. Improved capabilities and commitments of VVW and technical staff to facilitate subproject activities 2. Supported Cold Chain for the vaccination 3. Supported in providing revolving funds for Vaccination 4. Supported Awareness and information dissemination campaigns on animal health management, market information on livestock trading, market demands and prevailing market prices for livestock Overall Goal of the subproject Established a disease-free model village in each district; reduce livestock mortality to increase farmers income and alleviate adverse effects of poverty to subproject direct and indirect beneficiaries Main Activities. 1. Support to VVW and Technical staff 2. Cold Chain for the vaccination 3. Vaccination Revolving Fund 4. Awareness campaign 5. Project management Geographical Location The subproject covers 622 villages in 58 Kumb Ban of 8 districts, Salavanh province Safeguard Categories Environmental Safeguard There will be no adverse impacts to the environment since livestock management will adopt environment-friendly interventions in animal nutrition and in the health management system implementation. Likewise, there will be no land acquisition which will require compensation; no household will be relocated/displaced thus, no resettlement issues. Resettlement Safeguard Gender mainstreaming measures indicated in the subproject GAP would ensure that women will not be adversely affected by subproject implementation and will benefit from it through generation of additional household income. Likewise, subproject activities will be carefully planned so as not to interfere with women s domestic and community activities. Likewise, the cultural heritage of ethnic groups will be preserved and considered in planning subproject activities so that ethnic groups will be motivated to participate and thus, will also enjoy the socio-economic benefits accrued to all beneficiaries. Indigenous People and Gender Safeguard Responsible ADB Department Responsible ADB Division Executing Agencies of SNRMPEP Executing Agencies of Subproject Southeast Asia Department Lao Resident Mission Ministry of Agriculture and Forestry Department of Agriculture and Forestry in Salavanh Province

4 Project Implementation Time frame for the project Salavanh PAFO/PPO: The investor has the responsibility to supervise and monitor implementation of the subproject. Livestock and Fisheries Division (LFD) of Province Agriculture and Forestry Office (PAFO) of Salavanh Province is the direct management agency of the subproject under the overall management of PAFO. The coordinator of LFD will be responsible for daily inspection and management of all project activities. The LFD will also liaise with Departments/management Companies/districts and user groups responsible for post handover management on project design, pre-handover design inspections and preparation of The O&M plan. 3 years Information of the person directly responsible for sub-project implementation Name Mr. Oudomvilay Position Leader of CSP from PAFO Telephone, Fax & Name Mr. Kheo Oudone Position CSP of Wapy District Telephone, Fax & Name Mr. Sengsomphone Position CSP of Ta Oy District Telephone, Fax & Date of ADB Approval Total Project Cost ADB and IFAD Gov. FARMERs Private Subproject Area 24 January 2012 $331,440 $331,440

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