1. Support to Livestock Production and Marketing in Traditional Rainfed Farming Areas August, 28 – MDTF N OC Meeting Initial Project Proposal GNU Ministry of Animal Resources and Fisheries

2. Livestock production is a major contributory to Sudan’s economy - 20% of GDP & 50 % of Agricultural GDP. -Second export commodity (25% of non oil exports). -Contribute to national food security. - Livestock mostly in traditional rainfed farming areas (Western, Central and Eastern Sudan). - Three systems: nomadic, transhumance (agro pastoralism), sedentary agriculture. - An important capital asset (mitigate impact of drought,crop failure, finance….).

3. However, major constraints impede sector development - Marketing arrangements are inadequate: no transparent sales system (no auction, no grading, regulations…) large distances travelled by animals on the hoof. heavy taxation on the way to main markets. Exporters deterred by adverse marketing arrangements and unfavorable exchange rate. Lack of incentives for producers (subsistence production) to sell their animals = Livestock off take low.

4. Other main constraints: -Conflicting land rights: source of civil tension/ strife between pastoralists and crop farmers ( grazing lands legally not entitled / specified). -Water: shortage, costly + conflict over water resources. - Disease: limited capacity of the government to control diseases / inadequate service delivery by private sector.

5. Strategy MARF strategy: to provide livestock producers with : 1/ adequate services and grazing rights. 2/ improved market infrastructure, 3/ better marketing arrangements =efficiency. Objectives: 1/ promote better integration of livestock and crop farming. 2/ give more incentives to producers to sell their animals. which would result in Higher livestock off-take percentage, increased incomes and reduced environmental degradation and conflicts.

6. with MDTF support, MARF intends to: -Focus on key issues, limit geographical focus to maximise impact ($20 M project, 4 years). -Develop an approach that could replicated. -Cooperate with Southern Sudan and create synergies with other interventions (IFAD, EC/FAO…) Two Areas identified: North Kordofan (Impacted by IDPs from neighboring Darfur, sheep producing area). Blue Nile, Sinnar, White Nile (important South / North cattle trade corridor, conflict prone area).

8. Project Components: Component I: Rehabilitation of stock routes /rangelands though community-based interventions. - rehabilitation work (demarcation, rangeland, water points); - training and equipping of Community Animal Health Workers (CAHWs). Component II: Support to livestock marketing development - development of auction systems (with market price information, grading) at secondary markets; - training of producer and trader associations, - support to the private sector to develop abattoirs

9. Component III. Support to animal disease control and surveillance - reinforcement of animal disease surveillance control system (training and equipment); - strengthened the CAHW network. Component IV. Technical Assistance - study on land rights (should support the National and State Land Commissions); - study the sector’s marketing arrangements and propose marketing reform interventions; - conduct a livestock population estimate/ census (NORTH AND SOUTH).

10. Preparation of the Project Proposal - Draft IPP discussed with technical agencies, line institutions and donors. - FPP preparation started with the support of FAO first mission in July/August. Points to be addressed carefully during the preparation process : - Involvement of communities and role of agriculture ; how to consult and involve all concerned communities in a balanced manner?

11. -Litigation and security: How to assist the native administration ? - Need to set up an implementation structure that: Respects the decentralised nature of Sudan Allows rapid implementation while building public and civil society capacity. Final Project Proposal to be prepared by the end of the year