Project Information Building the model of raising organic broiler chickens in accordance with VietGap biosecurity standards in Tan Yen and Yen The districts, Bac Giang Province. 1. Name of Project: Building the model of raising organic broiler chicken in accordance with VietGap biosecurity standards in Tan Yen and Yen The districts, Bac Giang Province. 2. Approval agency: the People’s Committee of Bac Giang Province Address: No.82, Hung Vuong Street, Bac Giang City, Bac Giang Province Tel: (+84) 240.3854224; Fax: (+84) 240.3855012. 3. The Implementor: Bac Giang Department of Agriculture and Rural Development - Address: No.2, Nguyen Van Cu Street, Bac Giang city, Bac Giang Province - Tel: 0240.3854.693 4. The beneficiary: People of in six communes of Tan Yen and Yen The districts, Bac Giang province - Address: Tan Yen and Yen The districts of Bac Giang province 5. Project location: Six communes of Tan Yen and Yen The districts, Bac Giang province 6. Tentative project duration: 12 months (2014-2015) 7. The background and necessity of the project: Yen The and Tan Yen, two key districts for raising broiler chickens of Bac Giang Province in the period of 2008 - 2012, are two of poultry breeding areas to provide with safe products for Hanoi City and other provinces in the period of 2013 - 2020, and vision to 2030. In 2012, number of broiler chickens raised in two districts reached 6.3 million (Yen the accounted for 4,5 million while Tan yen accounted for 1,8 million); the chicken output reached 25.515 tons. Currently, Yen The broiler chickens have been protected as a collective trademark by National Office of Intellectual Property of Vietnam, the products are sold in many provinces in the whole country. However, prestige and quality of Yen The broiler chickens have been decreased because of not having safe manufacturing processes. VietGAP breeding process not only creates products meeting safety and hygiene standards but also minimizes environment pollution, which is the optimal solution for the current and future raising development. To implement the project, it is necessary to have initial support from government in breeding stock, cattle food, veterinary drugs, biological products, testing, close supervising experimental models, to bring economical profit, protect the environment, and change the way farmers do. From the above reasons, the investment for implementation the project is necessary and urgent. 8. Project goals: - Long-term goal: To change farmers' breeding thought and method to have quality livestock products to ensure safety for consumer health, improve the living environment for producers, and create conditions for stable and sustainable development. - Short-term goal: To improve technical level for households participating in VietGAP breeding model to have economical products, reduce environmental pollution and ensure food hygiene and safety for consumers. 9. Items and tentative allocation of project resources No Items 1 Breeding facilities, labor 2 Breeder 3 Commodities Project People Contribution 100% Support 50% Contribution 50% cost, equivalent to 5,000 vnd/breeder Food Support 10% Probiotics make padding Support 50% Contribution 90% 4 Vacxin preventive Support 100% Analysis of water quality used in breeding, testing costs, assessment and certification of livestock under the VietGAP Support 100% Allowance for the management, direction Support 100% 10. Tentative source of financing for the project Total project capital: 2.016 billion VND, equivalent to $ 95,836 Among them: - NGOs aid capital: 672 million VND, equivalent to $ 31,945 - Reciprocal capital: 1.344 billion VND, equivalent to $ 63,981. Includes: + in cash: 806,400,000 VND, equivalent to $ 63,890 + in kind: 537,600,000 VND, equivalent to $ 25,556 (Reciprocal capitals are mobilized from the contributed capital the people) 11. Construction and technology plans to implement the project Apply Vietgap breeding process from the construction phase until the final state. 12. Preliminary study of project feasibility The project is based on the increasing demand of the society on food hygiene and safety. The implementor has much experience in implementing the projects on biological food safety; the authorities have a lot of experience in investment fund management in Bac Giang province. Livestock products of the project guaranteed indicators of quality, hygiene, and food safety, to meet the requirements of the market. If being early invested from foreign NGOs aid capital and a part of the provincial reciprocal capital, the project would be highly feasible. 13. Preliminary evaluation of project effectiveness - Social effectiveness: The implemented project will create a variety of safe products to ensure the health safety for consumers; limit adverse impacts to environment. Besides, the project created jobs and stable incomes for farmers, thereby contributing to socio-economic development. - Economic effectiveness: The implemented project under VietGAP process will bring a profit of 2000 VND per one chicken; help 33 households directly implementing the model earn 574,560,000vnd during 8 months. After completion of the project, the household can grasp production process, and spread out it to other households in the region.