1. Outline of the ProjectCountry name: The People’s Republic ofProject name: The Dairy Farming andChina

Industry Development Center Project inHeilongjiang Province

Fields: Agricultural/Rural developmentAgricultural Development

Assistance type: Technical cooperation
project(Livestock Industry)
Supervising office: Paddy Field BasedMonetary amount of cooperation (at time

Farming Area Team Ⅲ、Group Ⅰ, Ruralof evaluation): Total of 283 million yen (asDevelopment Department

of January 2006; excludes personnel costs)

PeriodCounterpart organizations: Science andofcooperation

R/D: July 1, 2001, to June30, 2006

Technology

Agencyof

Heilongjiang

Province, Livestock Breeding Bureau of
Heilongjiang Province, Livestock Breeding
Institute of Heilongjiang Province, Anda
City

Livestock

Breeding

Bureau,Xianyuan Town Government Livestock
Breeding

Center,National

Dairy

manufacturing and Technical ResearchCenter—Longdan Milk Industry CO.,LTD.
Cooperatingorganizations

inJapan:

Ministry of Agriculture, Forestry and
Fisheries
Other associated cooperation: National Livestock Breeding Center; Snow Brand Milk
Products Co., Ltd.; Nippon Milk Community Co., Ltd.
1-1 Background and outline of the Project
Heilongjiang Province is located in an extremely cold region that has a long winterseason.

It also has vast grasslands and unused feed resources.

Consequently,

compared to agriculture, dairy farming has long flourished as a means of obtaining
income throughout the year.

In fact, Heilongjiang Province ranks number two in

China in terms of milk and milk-products production.

The government of Heilongjiang

Province has taken various promotion measures that emphasize development of dairy
farming and a dairy industry that can take advantage of the region’s characteristics.
However, such measures face problems that include poor pasture plant quality, lowpasture plant production, low per-cow milk production, and delays in feed development.

In order to improve this situation, the Chinese government submitted a request for
project-type technical cooperation to the Japanese government in 1996.

This

cooperation would involve research and development on new technologies connectedwith dairy farming and manufacturing of dairy products.
1-2 Description of cooperation
Cooperation is being implemented at separate sites for dairy farming and dairy
industry.

A Project implementation and management office has been establishedwithin the National Dairy Engineering and Technical Research Center in Harbin tocoordinate concerned organizations.

The Science and Technology Agency of

Heilongjiang Province serves as the supervising agency and the Livestock Breeding
Bureau of Heilongjiang Province is the implementing agency. The dairy farming site is
located at the Youyi Pasture in the Xianyuan town of Anda city, which is 150 km west ofHarbin.

Under the guidance of experts, pasture employees and personnel from theAnda City Livestock Breeding Bureau and Xianyuan Town Government Livestock
Breeding Center are demonstrating technologies connected with feed production andfeeding management, and providing technical guidance to model farming households
and monitor farming houses in the surrounding region.

And in the field of embryotransfer and alfalfa grassland management, the Livestock Breeding Laboratory of
Heilongjiang Province is providing technical collaboration and cooperation in
Chichiharu, a city located 400 kilometers from Harbin.

At the dairy industry site,experts are transferring manufacturing technologies connected with cheese andfermented milk to counterparts at Longdan Milk Industry Co.,LTD. which is a testing
factory of the National Dairy Engineering and Technical Research Center.
(1) Ultimate Goal
The income of dairy farming households in Heilongjiang Province is improved
through development of the dairy farming and dairy industry.
(2) Overall Goal
Models established by the Project are extended throughout all of Heilongjiang
Province.
(3) Project Purpose
Dairy farming and dairy industry models that are appropriate for Heilongjiang
Province are diffused in the target region.

(4) Outputs of the projectOutput 1:

Dairy farming households in the target region can produce high-quality
feed.

Output 2:

Dairy farming households in the target region can appropriately feed
and manage their dairy cows; the quality of their raw milk is improved.

Output 3:

Dairy products are improved in terms of quality and are diversified.

(5) Inputs (at time of evaluation)
Japanese side
Dispatch of long-term experts:

Total of 13 experts

Dispatch of short-term experts:

Total of 29 experts

Provision of machinery and equipment:

222.57 million yen (including
consumption tax, transport tax,
insurance premiums, etc.)

Assumption of local costs:

60.41 million yen

Training of C/Ps in Japan:

34 C/Ps

Chinese side
Allocation of C/Ps:

60 C/Ps

Assumption of local costs:

26.63

millionyuan(approx.

393.71 million yen)
Provision of land and facilities
2. Outline of the Evaluation Team
Members

Team leader:

Kunihiro Doi

Executive

Technical

Advisor,

Rural

Development Department, JICA
Dairy farming promotion: Tsugio Koseki

Assistantdirector,

Niikappu

Station,National Livestock Breeding Center
Dairy products:

Kazunori Yamagishi

Manager,

Production

Department,

Yukijirushi Kodomo-no-Kuni Bokujo
Evaluation analysis:

Toshiko Shimada

IC Net Limited

Cooperation planning:

Kumiko Murata

Staff

member,

Paddy

Field

Based

Farming Area Tam Ⅲ Group Ⅰ , Rural
Development Department, JICA
Interpreter:

Wu Zefeng

Manager of Japan region, Heilongjiang
Overseas Tourist Co.,LTD. China

Evaluation

January 5, 2006, to January 20, 2006

Evaluation type: Final evaluation

period3. Outline of Evaluation Results
3-1 Confirmation of achievements(1) Inputs
Planned inputs were implemented by both the Japanese side and Chinese side roughly
according to schedule.
(2) Outputs
In all cases output indicators have achieved or are highly expected to achieve the target
values.
1) Output 1: Dairy farming households in the target region can produce high-quality
feed.
The yield of soiling corn harvested by monitor farming families for silage, which is thefirst indicator, was 2,500 kg/mu prior to the Project’s commencement, although there
were indications of an increase due to diffusion of technologies (application of organic
fertilizer, urea fertilizer, etc.).

In 2005, the harvest grew to 3,850 kg/mu.

Althoughthis was slightly less than the indicator value of 4,000 kg/mu, if farming households’
improving technical levels and growing awareness of high-quality roughage production
are considered, and if the yield is viewed based on average-year yield by eliminating theweather effects, it can be said that the harvest roughly achieved the target value.
Per-unit yield of hay at Youyi Pasture, which is the second indicator, increased from 220
kg/mu to 306 kg/mu due to grassland improvements, thereby achieving the indicator of
300 kg.
2) Output 2: Dairy farming households in the target region can appropriately feed andmanage their dairy cows; the quality of their raw milk is improved.
The average amount of per-dairy cow milk produced by the monitor farming families
increased from 5,300 kg to 5,812 kg during the Project Period due to improvements insupply of feed, such as supply of corn silage.
kg.

This reached the initial indicator of 5,800

Milk quality also showed continuous improvement in response to advances indiffusion of technologies to monitor households.

The total bacterial count improved

from 2 million/ml to 300,000 ml, and the whole milk solids rate improved from 11.6% to12.2%.

Both improvements exceeded their target values.

3) Output 3: Dairy products are improved in terms of quality and are diversified.

As a result of C/Ps acquiring technologies for stabilizing yogurt quality, yogurt acidity
has been stabilizing from 6.80 in 2003 to 4.47 in 2005; thus, it can be said that quality isimproving. Beginning from a base of zero, cheese manufacturing technology at thedairy industry site has improved to the point that the site can now manufacture 12
kinds of natural cheese and 25 kinds of processed cheese. Of these, three kinds of aged
natural cheese, five kinds of unaged natural cheese, and eight kinds of processed cheese
made by adding fruits and spices that are special products of China are candidates for
product commercialization.

In all three areas, these figures exceed the target values.

In the area of fermented milk, sampling is under way on 10 types that are produced
through application of probiotic technology and by using different stabilizers andstabilizer compounding ratios.

Thus, the goal of producing one sample for productcommercialization has been achieved.
(3) Project Purpose: Dairy farming and dairy industry models that are appropriate for
Heilongjiang Province are diffused in the target region.
If the amount of high-quality milk produced in the target region (Youyi Village andHongxing Village, Xianyuan Town, Anda City), which is an indicator of the Project
Purpose, is projected using its rate of growth thus far, it is expected that production will
exceed the target value of 11,000 tons by the end of the Project. The manual fornormalizing the model that will be necessary for future extension of the technologies
has been prepared in trial version, with the completed manual expected to be finishedduring the remaining Project Period.

Thus, it is judged that the Project Purpose has

been largely achieved.
3-2 Outline of evaluation results(1) RelevanceIn recent years, demand for milk and dairy products has been increasing in China inline with a rising standard of living among the Chinese public.

As a result,

Heilongjiang Province is seen as an important production base, as it is ranked number
two in China in terms of milk and dairy product production. The technologies that are
being transferred through the Project directly contribute to the promotion of dairy
farming and dairy industry as pursued by the province through its dairy farming anddairy industry development program (2002 to 2005).

Moreover, the Project is judged toprovide appropriate and necessary cooperation as a means of resolving problems facedby the province in the dairy farming and dairy industry field.

Furthermore, both the

Ministry of Foreign Affairs’ “Economic Cooperation Program for China” (formulated in2001) and JICA’s country program for China (formulated in 2002) emphasize“cooperation to agriculture and rural development in inland regions with poor natural
conditions,” and the Project has high conformity with these aid policies of Japan.
Accordingly, the implementation of cooperation has extremely high relevance.
(2) EffectivenessThrough the Youyi Pasture and demonstrations by model households, small-scale dairy
farmers that previously had no interest in introducing new technologies have been
gradually confirming the effectiveness of technologies transferred by the Project(milking sanitation technologies, soil improvement technologies, etc.) and actively
implementing them.

This is thought to be tied to growing production of high-quality

raw milk that is mentioned in the Project Purpose.

On the other hand, the definitionof the “model” to be pursued by the Project is ambiguous, and indicators to reflect
Output 3 for dairy industry are not established.

During the final evaluation, theseareas were studied, the model was examined in terms of the entirety of dairy farming/
dairy industry technologies, and preparation of a manual as an indicator of whether amodel with a view to future extension has actually been established was added.
Currently, a trial edition of the manual, which covers dairy farming/dairy industry as acompilation of the three Outcomes comprising the Project Purpose, has been prepared,
and it is expected that the completed manual will be finished during the remaining
Project Period.

Thus, it is determined that the Project Purpose will be achieved.

Therefore, despite the fact that there are problems in the clarity of the Project Purpose’scontent and the establishment of indicators, the Project is deemed to have higheffectiveness, as effects as originally envisioned are being realized.
(3) Efficiency
Necessary inputs (dispatch of experts, allocation of C/Ps, assumption of local costs, C/P
training in Japan, etc.) were in general implemented without problems and according toschedule.

Factors contributing to the smooth implementation of broad-ranging

activities included 1) the four interpreters hired at Chinese expense promoted smoothcommunication among concerned personnel, 2) much of the training in Japan could beapplied directly to Project activities, and 3) C/Ps meetings and the monitoring
committee functioned as a means for confirming activity progress and sharing
information.

In addition, cropping of corn silage increased and production grew as aresult of, respectively, the fact that barn feeding of animals increased as a result of an
ordinance prohibiting open grazing and that dairy-product companies began applying

stricter quality management of basic materials.

Thus, these developments may beseen as external factors that were linked to improved raw milk quality.

Conversely,

however, a number of factors can be seen as lowering the efficiency of technical transfer
and limiting technical exchange and collaboration in both fields.

These include 1)

delays in installation of some provided machinery and equipment and low rates ofoperation, 2) a tendency for work to require the guidance of experts, as many C/Ps were
extremely busy both working in the Project and executing their own responsibilities,
and 3) the Project design, in which both counterpart organizations and cooperation
content covered a broad range given that the dairy farming and dairy industry sites
were separated.
(4) Impact
At the present time, there are no Project effects that are particularly noteworthy
compared to the size of the inputs, as, in both dairy farming and dairy industry, almost
no effects extend far beyond the target regions and target groups.

However, theProject implementation management office is aware of the importance of extending the
Project and has a strategic blueprint toward this end.

Moreover, Anda City has shown

its intention to standardize technologies that were transferred through the Project andto raise the technical capabilities of all dairy farming families.

Consequently, if

itinerant extension activities are steadily conducted in the six regions and a detailed
strategy for the extension program is planned and implemented over the remaining
cooperation period, it is expected that the Overall Goal can be achieved in three to five
years after the Project’s completion.
highly.

Thus, the Project’s impact can be rated somewhat

Unanticipated secondary effects that are other than the Overall Goal include

the following: 1) C/Ps set up a dairy cow association made up of small-scale dairy
farming households in Youyi Village, using an agricultural cooperative they studied
during their training in Japan as a reference.
spreading to other regions.

Similar movements are currently

2) The town government built a dairy farming housing

complex near the dairy farming site that is helping the Project diffuse technologies todairy farming families in ways that were originally unanticipated.

3) At the dairy

industry site, success was achieved in separating lactic acid from pickles that could be a
new strain.

4) Moves toward production of cheese products are accelerating at

Longdan Milk Industry Co.,LTD. which previously engaged in very little cheese
manufacturing.
(5) Sustainability

For both the dairy farming and dairy industry fields, Project sustainability can be rated
highly in terms of political and technical aspects.

In terms of organizational aspects,

dairy farming is expected to have high sustainability due to existing extension systems
and organization.

And, looking at dairy industry, there is high potential forindependent growth as development of dairy products that suit consumer preferences
and management efficiency progress based on privatization-led competition principles.
However, procedures for widely and generally sharing transferred technologies thatreach beyond one private company must be clarified in the extension program strategy.
Looking at financial sustainability, there are problems in both dairy farming (support
for small-scale dairy farming households and autonomous management of Youyi
Pasture) and dairy industry (securing budgetary funding that is difficult to tie tocompany profits, such as that needed for technology extension workshops, etc.).
Therefore, further financial support from the provincial government will be essential in
implementing the extension program.
3-3 Factors contributing to emergence of effects(1) Factors pertaining to planning content
In the dairy farming field, Anda, a city in which dairy farming is so prevalent that it isrecognized as the “home of the dairy cow,” was selected as the target region for the
Project, and demonstrations were incorporated into the Project’s plan.

At the sametime, external factors emerged that included changes in type of animal feeding
resulting on prohibition of open grazing and stricter business standards fordairy-product companies.

All of these factors contributed to a growing desire among

dairy farming households to improve milk production and quality and, further, tostabilized supply of high-quality feed and increased raw-milk production.

In the dairy

industry field, given the almost complete lack of cheese manufacturing technology andlactic-acid identification/separation technology as well as fierce competition throughout
the industry, recognition by the Chinese side that the Project’s technologies were vitalto development of its dairy industry contributed to manifestation of effects.
(2) Factors pertaining to the implementation process
The fact that, from the second half of the Project Period, the Project implementation
management office (Livestock Breeding Bureau of Heilongjiang Province) took a leadingrole as the agency responsible for coordinating concerned organizations contributed tothe manifestation of effects.

Likewise, the monitoring committee functioned topromote smooth communication among Project personnel that were working separately

at the dairy farming and dairy industry sites, to ascertain activity progress andnext-phase plans, and to share information and experience.

In addition, monthly C/Pmeetings at each site served to promote sharing of information on the progress of
individual activities and problems.
3-4 Problem areas and factors leading to problems(1) Factors pertaining to plan content
Because the dairy farming and dairy industry sites were separate and, in the area of
dairy farming, the model pasture and the Livestock Breeding Laboratory of
Heilongjiang Province were distant from each other, cooperation from the production ofbasic milk to production of manufactured products was not integrated.

Moreover,because cooperation at each site covered a broad range, overall collaboration between
the dairy farming and dairy industry fields was weak and synergetic effects during
Project implementation were limited.

Furthermore, definition of “model” in the

Project Purpose was ambiguous from the planning stage and indicators were not set tocorrespond with the Outputs.

Therefore, although the Outputs and Project Purpose

were roughly achieved in terms of the indicators, these problems are thought to havecontributed to somewhat low efficiency and manifestation of effects.
(2) Factors pertaining to the implementation process
Because, in both the dairy farming and dairy industry fields, the C/Ps were extremely
busy due to their having to handle both Project duties and their own responsibilities,
implementation of activities required expert guidance, and this impacted on theefficiency of technical transfer.

Moreover, although the Project deserves high praisefor its active application of the PO (Plan of Operations), from the standpoint of the
Project implementers, insufficient study was given to the definition of “model” in the
Project Purpose and to the preciseness of the indicators.

Thus, at the present time,

ripple effects from the Project are limited in light of the size of the inputs.
3-5 Conclusion
In general, implementation of the Project’s activity plan is proceeding favorably.

The

three outputs and the Project Purpose have already been achieved or are expected to beachieved during the cooperation period.

Furthermore, although a number of issues

remain with regard to financial and organizational sustainability, Chinese personnel
are fully aware of the importance of extending the technologies that were introduced
through the Project from the standpoint of dairy farming/industry promotion, and it isexpected that specific activities toward extending these technologies in six regions of
Heilongjiang Province will begin during the remaining cooperation period.

Giventhese circumstances, the Project will be concluded according to plan on June 30, 2006.
3-6 Recommendations
The team proposes to the Joint Coordination Committee that the PDM that was
modified for evaluations and utilized in this final evaluation be used as a revised PDM(Version 5).

It will be important that remaining activities be steadily implemented

during the Project Period based on this PDM, and that efforts be made to achieve theOverall Goal and the Ultimate Goal following the end of the Project.
(1) Short-term recommendations (up to the end of the cooperation period)-

Final versions of technical manuals for dairy farming and dairy industry should be
prepared, and itinerant technical guidance and extension activities that target abroad range of concerned personnel should be actively implemented.

-

A detailed strategy for the extension program should be drawn up under theguidance of the Project implementation management office.

In drawing up thisstrategy, focus should be placed on those technical fields requiring extension thatare identified based on the results of the abovementioned itinerant technicalguidance, and care should be given to clarification of roles among each concernedorganization, specific budgetary measures, utilization of trained technicians,
monitoring methods, etc.
(2) Long-term recommendations (after the end of the cooperation period)-

Extension of dairy-farming and dairy-industry technologies that were introduced
through the Project should be steadily implemented in Heilongjiang Province inaccordance with the extension program and its detailed strategy.

Regularmonitoring of progress should be conducted under the direction of the Science andTechnology Agency of Heilongjiang Province and the Livestock Breeding Bureau of
Heilongjiang Province, and revisions of the extension program should be made as
appropriate.
-

In order to further develop the dairy farming and diary industry fields, the resultsof technical extension to diary-farming and dairy-industry personnel should beannounced in not only Heilongjiang Province but throughout China, and active
technical exchange with Japanese personnel should be pursued.

3-7 Lessons learned-For projects having C/Ps from multiple organizations, it is essential to establish anorganization that will take a leading role as an office for practical coordination of
the project so as to ensure effective operation and management. Like the Project
implementation management office for this Project, this office will be different informat from the coordination committee.

-

Application of the PO and holding of regular meetings, such as counterpart
meetings, are important from the standpoints of not only project operation andmanagement but also achievement of outputs.

This is because they are useful in

helping project personnel ascertain activity progress and in fostering an awarenessof problem areas.
-

The PDM is a cooperation plan that is established through logical analyses andmeetings of concerned personnel prior to the project’s commencement.

However,

because the environment surrounding the project is constantly changing, there is
the possibility that external conditions that were unanticipated beforehand will
have an impact.

Consequently, project implementers should actively utilize the

PDM as a means for project operation and management while also making revisions
based on agreements among concerned personnel as necessary.