1a- 4(f -/,70l

PD-MS- S2Z INTERNATIONAL RICE RESEARCH INSTITUTE

SMALL FARM MACHINERY INDUSTRIAL EXTENSION PROJECT (THAILAND)

Mid Term Project Evaluation

Submitted to

United States of America

Agency for International Development

April 1977

Contracting Office: Contractor:

USOM/Thailand Dr. P, A, Cowell 2948 Soi Somprasong 3 Asian Institute of TechnologyPetchburi Road P,O. Box 2754 Bangkok, Thailand Bangkok, Thailand

Contract No. AID 493-7008 Project No. 931-0066

(iii)

TABLE OF CONTENTS

CHAPTER TITLE PAGE

I INTRODUCTION

OBJECTIVES OF IRRI PROGRAM

SCOPE OF EVALUATION

METHOD OF EVALUATION

1

3

4

5

II DETAILED PROJECT REVIEW 6

III SUMMARY AND RECOMMENDATIONS 13

APPENDICES 17

A.1.

A.2.

A.3.

MANUFACTURER SURVEY

FARMER SURVEY

AGENCY OPINIONS

18

28

34

(iv)

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I INTRODUCTION

Thailand has a population of some -3.million people which is expanding

at about 3% per annum.

Her most important export has traditionally been rice which remains her

export leader. The increased domestic consumption in the past two or three

decades has been met mainly by expanding the area of land under cultivation.

The opportunities for such expansion are now limited. Therefore in order to

maintain a surplus for export the practice of multicropping is being expanded

whereby two and even three successive crops are taken in one year from the

same piece of land.

Multicropping techniques demand maximum use of the land for growing the

crop; little time is left for land preparation and harvesting between crops.

Traditional methods using the water buffalo for cultivation and for threshing

are too slow and farmers adopting the new techniques are turning increasingly

to the use of machinery. Already this process has gone quite far in Thailand

and tractors are rapidly displacing the water buffalo as a power source for

cultivation.

Since approximately 70-75% of the population of Thailand is engaged in

agriculture the average farm size is small being of the order of 3.5 hectares.

As one moves north from the Central Plain of Thailand both farm and field size

tend to become smaller.

It should be pointed out that before the IRRI extension project was intro­

duced into Thailand there was already an indigenous, albeit small, local farm

machinery industry, producing small power tillers and associated cultivating

equipment. Animal drawn equipment has been manufactured for a long time.

In addition foreign tractor importers, notably Ford and Massey Ferguson, have

been selling tractors (latterly mainly in the 70-85 HP class) for a couple of

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decades. The market has varied between 2000 and 5000 plus per annum since

the early 1960s. Farmers purchasing these tractors have tended to operate

as contractors offering primary cultivation services particularly in the

drier regions of the country, and have gone far in replacing the buffalo for

initial ploughing operations.

CThe IRRI approach to mechanization is directed at the mass of small

farmers by seeking to stimulate production of locally built machinery at a

price an individual farmer can afford to payl This approach has been spear­

headed by the introduction of an IRRI designed power tiller, and latterly by

the introduction of a powered threshing machine. #An important question

surrounding the introduction of farm machinery in a developing country must

always be that of labour substitution. There is a tendency f,..r essentially

company controlled estates to develop notably around such industries as the

rubber industry and the canning industry. In addition several land conso­

lidation projects are under development in Thailand which tend to bring along

with them an increase in mechanization.

It has only recently been realized that the key to the labour substitution

problem lies in introducing only that machinery which is appropriate to the local

system at the appropriate time. When the introduction of machinery makes it

ppssible-to--increase- .produinthwhie s-t-ame number

of people, an overall c munity-gain-is_ i .

Multicropping is a good example of this, in that it is largely impossible

to complete the field work in sufficient time using traditional animal and human

power to enable more than one crop to be grown. In these circumstances mecha­

nization becomes the key to increased food production.

It is against this background that the ultimate desirability of the IRRI

program should and will be judged.

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EVALUATION TEAM

The evaluation team comprised the following people:

1. Dr. Peter A. Cowell, Professor of Agricultural Engineering, Chairman

of the Division of Community and Regional Development. Asian Institute

of Technology, Bangkok. (Consultant)

2. Dr. Gajendra Singh, Assistant Professor in Agricultural Systems Engineering,

A.I.T., Bangkok

3. Mr. Chanet Kumtong, Economist, Dept. of Social Sciences Mahidoi University,

Bangkok.

Valuable assistance in discussion and questionnaire preparation was given

by

Dr. Shlomo Angel, Associate Professor in Community and Regional Development,

A.I.T.

OBJECTIV OF IRRI PROGRAM

The objectives of the IRRI Program as stated in the iRRI/USAID Contract

proposal are as follows.

(1) To conduct economic and market evaluation studies to determine

which IRRI or other designs offer the greatest potential for productive and

possible agricultural mechanization;

(2) To carry out a comprehensive test and evaluation program to

determine the performance characteristics of IRRI equipment under conditions

encountered within the host country:

(3) to provide continuous technical and in-country engineering and

marketing assistance to manufacturers entering production with IRRI designs;

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(4) to perform adaptive design and development work on those IRRI machines

which offer potential but lack sufficient compatibility in their original confi­

guration to meet local farm-level needs and/or indigenous manufacturing require­

ments;

(5) to promote the use of appropriate equipment through demonstration

activities involving both farmers and manufacturers;

(6) to conduct research studies related to the mechanization 6f agricul­

ture and the local production of farm machines; and

(7) to provide information to IRRI on local machinery trends and needs.

SCOPE OF EVALUATION

The terms of reference for this evaluation as prepared by A.I.D, Washington

were as follows:

1. Infrastructure for testing prototypes, introducing new machines, training

rural area manufacturers and distributors.

2. Capability to assist with Host Government policy decisions on appropriate

technology and socioeconomic effect of mechanization.

3. Acceptability of machines by small farmerson basis performance and cost.

4. Collaboration between IRRI core budget activities and subject project on

mechanization.

5. Recommendations for activities through life of project and continued activities

and relationship following contract expiration in September 1977.

6. Considering increasing current worldwide interest in small farm mechaniza­

tion, how will expanded demand be serviced?

7. Desirability of international small farm machinery workshop at IRRI.

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8. Issues unique to local environment.

9. Isues arising during evaluation process,

METHOD OF EVALUATION:

It was considered that an important part of the evaluation should be to obtain an objective assessment of the IRRI programme in the eyes of the ultimate beneficiaries,the farmers and the manufacturers. Therefore two

qpiidon surYeys were carried .out--a..survey Q forty rarmers who had purchased IRRI designed machines and a survey of six of IRRI

designed machines and one main distributor,.

Inaddition to this extensive interviews were conducted with IRRI staff in Thailand, and with the host country staff-of the Agricultural Engineering Division of the Department of Agriculture.(Bangkhen), Opinigjs were souzht-from representatives of international agencies having a direct interest in the o such as UNIDO and t q ! forMachinery

UN P and forAgric r (UNDP and UNIDO).

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II DETAILED PROJECT REVIEW

In this section the project is reviewed in accordance with the terms of

reference as set out under 'Scope of Evaluation'

1. Infrastructure for testing prototypes, introducing new machines,

training rural area manufacturers and distributors

The IRRI/USAID contract specifies the following personnel and equipment.

Since the contract covers both Pakistan and Thailand only that specified for

Thailand is shown.

Personnel:

1 Agricultural or Industrial Engineer (expatriate) 24 Man months.

1 Assistant Agricultural or Industrial Engineer (indigenous) 24 MM.

2 Mechanics (indigeulous) 48 M.

1 Agricultural or Industrial Engineer assigned to IRRI, Pakistan and

Philippines with responsibility for liaison. 24 MM. for all three countries.

Subcontract with Industrial Dev. Division of Georgia Institute of

Technology (IDO/GIT). 24 MM. for both countries including 2 MM. business

management consultant.

1 Assistant Agric. or Indust. Engineer 12 MM.

2 Mechanics (indigenous) 24 MM.

1 Secretary (indigenous) 24 M.

Equipment:

1 pick-up truck

Minimum of three IRRI prototype machines per year.

Minimum of three prototype machines for the second year.

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The actual personnel strength is as follows:

1 Industrial Engineer (S. Barton). 18 MM, on Sept. 1, 1977.

1 Assistant Agric. Engineer (Suvit)

1 Agric. Engineer liaising with Philippines and Pakistan. (J. McMenammy)

1 Workshop technician (Charlit)

1 Draughtsman I time Engin. Division (Vacharachai)

1 Secretary

The services of the following people are also available on an indirect basis:

Thai Administrative Assistant (Soonton)

Assistant Agr. Engineer, Thai Dept. of Ag. (Chalermchal). Paid by Thai Dept.of Ag

Agricultural Engineer -Thai counterpart (Chak Chakkaphand), time.

Driver (Boonson)

1IRRI has several cooperative projects in Thailand of which the farm machinery

industrial extension project is one. Administratively these projects are the

responsibility of the IRRI Representative in Thailand, known as the Country

Representative. As we understand it the administrative responsibilities of

the Country Representative include fiscal management and. staff recruitment.

Specific project development is the primary responsibility of the IRRI core staff,

working on the project.

This policy separates authority and responsibility, and is one which appears

to have led to some misunderstanding between the Country Representative and the

IRRI.core staff. particularly on recruitment of staf~f.

The number of local staff employed.on the project is-considerably less

than the project calls for. We did not investigate why this had happened

but make the observation that if theproject _i s -t o o e a t e _.s a t s f a ct 4 1 t h e

full complement of staff.should be engaged;

-8-

The working relationship between the IRRI core staff and the Thai Ag. Eng.

Division is obviously.good. The Ag. Eng. Dept. has quite good workshop faci­

lities and space is ayailable for IRRI engineers to work independently or together

with the Ag. Eng. Division staff. Workshop and field tests are conducted jointly

mainly on performance, not durability. In this respect the lack of Thai mechanics

appears to be a limiting factor.

New machines are introduced by offering designs to manufacturers with little

restriction. This freedom of action was welcomed by manufacturers (see Survey).*

Also a free product engineering service is offerred for IRRI machines, and modi­

fications suggested by manufacturers are discussed,

No training of rural area manufacturers is done in Thailand but one or two

we spoke to did attend a two week training program in the Philippines (See Manu­

facturer Survey). This they found very stimulating and valuable but the language

barrier was a problem. It was suggested that one or two Thai engineers should

be trained to offer the same course in Thai, in Thailand. We endorse this view

and recommend serious thought be given to such a training program in future.

2. Capability of Assisting with Host-Government Policy Decisions on Appro­

priate Technology and Socio-Economic Effects of Mechanization

In making policy decisions on appropriate technology and the effect of

mechanization the host government is in contact with the Thai staff of the Agric.

Eng. Division. By virtue of working closely with these people the IRRI team is

wellipcedto assist inpolicy decisions. On the other hand_little if any work

has been done on the socio-economic effects of mechanization and ap ropriate

technology. An exception to this is an axial flow thresher survey conducted

by the Agri-business management group of the Faculty of Economics, Kasetsart

University on behalLof.-IRRI,

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We feel that more of this type of suppqrt-ork-is-need-bv__ he-pxogram.

It may well be better for the IRRI team to enlist the cooperation of other

Institutes already engaged in similar work such as Kasetsart University and

the Asian Institute of Technology both of which have better facilities particu­

larly in terms of manpower.

3. Acceptability of Machines bySmall Farmers on the Basis of Performance

and Cost.

We conducted an extensive farmer survey to assist in determinZ the accep­

tability of IRRI machinps (for further details see Farmer Survey).

Of the whole range of IRRI machines available only two have been accepted to

any extent by Thai farmers-the power tiller and the axial flow thresher. It is

probably too early to determine whether any of the other machines will ultimately

be accepted.

The IRRI power tiller is accepted largely because of its low price in com­

parison with Japanese power tillers, and because it is technically sound, There

is evidence (see J. Charoenchai, manufacturer survey) that the appearance of the

tractor is less than desired by many farmers. This arises because the tractor

is not produced in such large quantities as to justify on a cost basis the use

of pressings which go far to make the Japanese machines attactive.

However, the power tiller is probably only an intermediate step in mechaniza­

tion in Thailand and thereis a _rowing demand for small four wheel trator. In

this regard manufacturers are keenly awaiting the release of an IRRI designed

4 wheel tractor.

The emphasis-on double cropping has.brouht-w-h-it-te-needfor-a-thr-hing

machine. Up to the present time only the more wealthy farmers have purchased

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axial flow threshers but the IRRI design has been quite well received. It has aproblem in not being able to produce a clean sample with some but IRRI engineers are modifying the design to i vpQ9_it The IRRI weeder has been tried but found unsatisfactory, There appar_o-be_two.-problems, one that Thai

farmers do not produce a very level seedbed--and,secondly ,that_,Qfte .

4r_eQo- g:own in straight.-Uines,

4. -Collaboration between IRRI Core Budget Activities and Subject Project

-on Mechanization

This appears to be satisfactory in that there have been a number of visits by John McMenammy, the Liaison engineer based in the Philippines, and through

relaying of periodic reports fromThailand.to..theEngineering Department at

Los Bangs,

A recurring complaint at the Thai end was the non-availability of vehicles

fora long time which apparently was due to an administrative hold up. Similar

comments were made with regard to recruitment of personnel for the project.

5. Recommendations for Activities through Life of Project and Continued

Activities and Relationship Following Contract Expiration in September 1977

This aspect is dealt with separately under Summary and Recommendations.

6. Considering Increasing Current World wide Interest in Small Farm

Mechanization How will Expanded Demand be Serviced?

As far as the manufacturers are concerned they are optimistic (Pramoulkolkit,

Manufacturer Survey) that they can get Thai government financial support if their business and work looks successful. The problem rather liea.withbcxzdilizt

lities for the farmer, facilities which would enable him to pur.asemachines

for a low down payment and at low interest rates,

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Khun Wachara, the main dealer in Chieng Mai, was of the opinion that such assistance should be given to the dealer (himself!) rather than the manufacturer.

In this way the manufacturer is relieved of the problem of doing his own marketing.

One of the besetting problems of Thailand however, is that farmers can often only_ obtain credit from middlemen and suppliers who usually charge high interest

rates. Inevitably, through debt accumulation, farmers are in danger of losing

their land to private individuals and support of dealers would seem to accentuate

the problem. The a.nswer would seem to be inextending government supported cheap

lending facilities for farmers for the purchase of farm machinujy.

7. Desirability of International Small Farm Machinery Workshop at IRRI

Over the past decade there has been much discussion about the desirability

of agricultural mechanization in developing countries. This discussion was

healthy and has led to a much better understanding of how to harness the obvious

benefits of farm machinery while avoiding its antisocial effects. A number of

studies on the social effects of mechanization have been carried out in the region but they are comparatively few. More up to date and more precise information is

required. An international small farm machinery workshop would provide a valuable

forum for exchange of ideas and experiences at a time when governments in Asia are

tgking-a fresh look at this agricultural mechanization policies.

8. Issues Unique to Local Environment

In comparison with some countries In the region Thailand is not short of food,

and while there is much rural poverty, people for the most part are not too hungry.

There is much concern that employment opportunities for people in the rural areas must be increased, and it is against this background that mechanization of

agriculture is often regarded with suspicion and rightly so. On the other hand

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the absenceoLmechanization condemns people to long hours of drudgery, fo this

is truly what a great deal of farm work amounts to. Furthermore much of the

field work falls to women who already have the burden of looking after the family.

From a simple humanitarian point of view, appropriate mechanization has much merit.

Manual farm work is seen as glamorous only by onlookers who never need to do it or

who never have done it.

At the present time the government is planning considerable emphasis on

rural development and rural industry. Workshops making farm machinery also

engage in the manufacture of other goods and so form the nucleus for the develop­

ment of local engineering enterprises, which in turn provide greater opportunities

for employment. The availability of materials in Thailand is good,

Finally there is a great deal of enthusiasm for mechanization in Thailand,

Farm mechanization is happening and will happen whether or not the IRRI program

exists, but it should help to direct development along appropriate lines.

9. Issues Arising During the Evaluation Process

_jNo serious problems arose during the evaluation process and most issues of

importance have been dealt with in the foregoing.

One factor however was noted wistfully by one farmer. This amounted to the

fact that, while farmers welcome the introduction of small machines, they were

1,osing a measure of their independence. When he bought a buffalo, the farmer

had no further need to communicate with or rely on the seller after purchase.

The animal fed itself on straw and grass and rarely fell sick. By__purchasingl

a-tractor the farmer discovered he had entered into a continuing relationship

with the dealer in that servicing, repairs and fuel were all needed, And at

the end of its useful life he could not eat it.J

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SUMMARY AND RECOMMENDATIONS

One of the outstanding features of the IRRI small farm machinery extension

program is that it reaches in a unique manner right to the people who need the

benefit of research and development. In concept it is one of the few programs

which attempts to forge the final link between research and the end user, a link

without which so much research effort is lost.

We have good evidence that the type of service the IRRI program offers is

welcomed both at a local industry level and at the farmer level, We believe

also that the intensity of feedback from the end users to IRRI on farmer re­

quirements will greatly improve the effectiveness of the overall program in

future. This is not a one way relationship. It should be recorded however

that IRRI machines have not yet found their way to the poorest farmers, It

was noticeable that only fairly well off farmers were purchasing the machines,

particularly the axial flow thresher.

The liaison between the IRRI staff and the Thai Ag. Eng. Dept. appears to be

good. The presence of IRRI staff has ensured that tests are completed and reports

made. The Ag. Eng. Dept. feels better informed about what other people are doing,

and regular joint consultation takes place on design, testing and other matters.

A disappointing aspect of the program has been the slow recruitment of Thai

staff which has restricted the scope and extent of its activities. A big problem

will be-how to ensure that the program will continue to operate under the direction

of the Thai Agric. Engineering Division when direct involvement by IRRI has been

phased out. We gained the impression that the'program is only just getting under

way and it will be important for it to gain sufficient momentum with a major in­

volvement of Thai personnel before the contract finally expires. For this reason

recruitment of Thai staff who could help carry the project forward later is most

important.

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This view is endorsed by the Ag. Eng. Dept. staff themselves who feel it

will be difficult for them to offer entrepreneurial help when IRRI have gone.

This gap may well be filled by the Regional Network for Agricultural Machinery

(see interview with Mr. Majid Khan) later, but it will take time to develop

this service, a service which has not yet actually started.

The IRRI program was started in Thailand at a time when local manufacturing

and mechanization of the rice crop was already under way. Thus the climate

was right for entrepreneurs to take an interest in IRRI designed machines. This

has been a critical interest and only well adapted designs have been taken so far,

notably the power tiller and the axial flow thresher, both of whi.ch have been

modified to meet local needs. Manufacturers welcome the IRRI initiative in

that by accepting and manufacturing designs which have already been tested they

can save a lot of design and development time. Also they prefer an association

with IRRI rather than Japanese companies on account of there being much less re­

striction and control. On the question of Japanese companies one manufacturer

said Thai manufacturers were afraid of setting up small engine factories because

they would soon be forced out of business by Japanese competition which they re­

garded as being unfair, and damaging to local interests, The IRRI approach was

a welcome contrast which aimed at direct help.

Of the two machines manufactured in Thailand only the power tiller has so

far reached the small farmer. This has sold quite well against Japanese and

locally designed competition on account of its good design (except its appea­

rance) and price. There is evidence that a small four wheel tractor might be

even better. The axial flow thresher appears to have started a trend but so

far only the more wealthy farmers are bi:ying them (average income last year of

10 owners was U.S. $8600). There is an obvious need for a much cheaper

machine.

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One limitation of the project is that it is concerned only.with IRRI

designed achines. Yet there are many other locally designed machines which

could greatly benefit from being independently tested and design advice given.Not much effort along these line is made by the Agricultural Engineering Divi­

sion but is an effort which the IRRI project could well support.

In order to introduce new machines to farmers it is important to hold

promotional demonstrations and participate in fairs. In this respect the

Georgia Institute of Technology staff have been useful. Indeed the greater

part of their activity appears to have been in promotion of IRRI designs.

All this leads us to a rather fundamental consideration, namely the question

of the social and economic impact of mechanization and its effect on labour ab­sorption. We believe that this is such an important matter that the IRRI pro­

ject should proceed hand in hand with socio-economic impact studies in the rural

areas. In this IRRI could enlist the assistance of other Institutes within

Thailand.

Specifically we Recommend:

1-l. That the project should contiaue and the second phase be implemented.2. Thtgetrefr hudb mate to - ... ;' 11iJ i-' i" qt fx'i/ ter effort should be made to ensure recruitment of all necessary

staff and equipment as provided for in the contract.

3. Steps should be taken in the second phase of the project to ensure

continuity of the work after the IRRI project has been completed.

It is recommended that the opportunity be taken of working closely with St ,e Regional Network for Agricultural Machinery, who may be expected to

a sume some responsibility for extension work in the rural areas.

,. ,

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4. That socio-economic impact studies of mechanization be initiated, if

necessary with the assistance of local Institutes and Universities.

These studies should monitor changing patterns of farming, of mecha­

nization and of labour absorption in the areas where IRRI machines are

being introduced.

5. That testing of machines and advice on design and manufacture should

not be restricted to IRRI designed machines.

6. That consideration be given to offering a short training course for

Thai entrepreneurs and their engineers in Thailand, in the Thai

language.

7. That a small farm machinery Workshop be conducted at IRRI headquarters.

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APPENDICES

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A.1. IMANUFACTURER SURVEY The list of manufacturers in Thailand producing IRRI machines (supplied

byStewart Barton) indicated that, in effect, only two IRRI machines are being produced and sold in any quantity to farmers, namely the power tiller and the

axial flow thresher.

The power tiller manufacturers are:

J. CHAROENCHAI LTD. PART., Ayudhya, (Mr. Preecha)

ANUSARN CO. LTD., Chieng Mai, (Mr. Rueng)

Some sixteen manufacturers were producing the axial flow thresher but only three of these had manufactured more than ten. These were:

KASERTTHAI LTD. PART., Chonburi, (Mr. Charroy)

PRAMOULKOLKIT LTD. PART., Bangkhen, Bangkok, (Mr. Anusorn)

PRADITYONT SHOP, Chachoengsao.

One other manufacturer who produces a modified IRRI axial flow thresher

was interviewed:

J. CHAIDEE PANICH, Chachoengsao.

In addition one important dealer in IRRI power tillers was in­

terviewed:

WACHIARA, 2430, 44-46 Chaipom Rd., Chieng Mai.

As regards the remaining IRRI machines, five manufacturers are listed as making the manual weeder but only three appear to have been sold altogether. Five manufacturers have made one or more IRRI diaphragm pumps but these are

mainly for testing and demonstration purposes.

WACHARA, ChiengMai.

No. Employees: 48.

This company is essentially a retail distributor and is the principal agent for J. Charoenchai of Ayudhya. J. Charoenchai extend credit to them

- 19 ­

to assist sales of their power tiller. Wachara says he relays comments from farmers back to J. Charoenchai who then modifies the design accordingly to fit requirements. At present the machine suffer by not have steering clutches to

make turning easier.

Sales were at a peak in 1975 when more than 200 were sold. In 1976 this fell to less than 50 but he expects to sell around 100 in 1977. He appears to be losing business to Anusarn Company, the local manufacturer.

He was most concerned that a scheme should be started to help farmers obtain credit at low interest rates to purchase tractors on an instalment plan.

MR. CHARROY (Kasertthai Ltd. Part., Panus Nikom, Chonburi) No. Employees: 12 permanent. Up to 25 casual during peak production.

The principal manufacturerto date of the IRRI axial flow thresher has been Mr. Charroy who, since the end of 1973 has manufactured and sold some sixty

machines (see photographs).

Originally he manufactured exactly to the IRRI specification but later adapted it to Thai taste and introduced an oscillating sieve (note that farmers complained this frequently broke). le liked the IRRI design because of its small power requirement compared with the Japanese equivalent and liked its higher efficiency. He is conscious that his sales may drop this year because of competition from other local manufacturers who have copied his design. He was enthusiastic about a 10 day training program he underwent at IRRI, Los Banos in 1974, where he got to know more about the rice crop, saw other manu­facturers and learned more about tools and equipment. was pleased with theIle technical assistance offerred by IRRI but it would be better if marketing

assistance could be given.

/He believes IRRI should give serious thought to the design of a 4 wheel tractor for which there was a good market in the lowlands. He is contemplating trying to make the smaller IRRI portable thresher and is interested (in de­

-20­

LocaL~y dmivgned and mn~a~zctutcd (jouAtolme ttactok.

ThZ.6 tta~ctwi .L5 p.'dLuced at the utcte ol 80 puL )monzth auid

z eML 4oit $2I125. (J. Chau~enchai Ltd., Ayjudhyac)

Locatey pkoduced IRRI dni~<gncd axic&C (seot th,'Leshmi.

About 60 oI .thc machiLnes hiave bceen ntod in th.'te. ye(cUM.

Px&ce $8550-900 tothout engine. (Kceasmthcci Ltd., Paxrt. Chon-bwtZ)

- 21 ­

creasing order of importance) in a drier, the weeder, a two wheel tractor with

steering clutches and a 4 wheel tractor. In summary he is an enthusiastic

advocate of the IRRI program.

PRADITYONT SHOP, Chachoengsao.

No. Employees: 35.

This small factory produces power tillers of their own design and has sold

10,000 units in 8 years. Sales are now levelling out at about 1000 per year,

which nevertheless makes the shop the largest power tiller (non IRRI) manufac­

turer we visited. He supplies about 10 dealers.

The owner is a breezy independent man with an obvious flair for copying

and adapting other peoples designs. For example he originally borrowed a

Catalog of the U.K. Landmaster tractor from a neighbour and copied the pictures.

Essentially he did the same with the IRRI axial flow thresher and says that the

only contact he has had with IRRI personnel, apart from an initial visit from

them when they took photographs of his tractor, was to receive a Catalog from

them, from which he was able to copy.

In the first season of production he has sold 18 axial flow threshers at

a retail price of A 15000 ($ 750). His own profit is A 2000 per machine.

He thinks it is too early to tell whether farmers will like the machine but

the trend is for sales to increase. The machine has problems, and cannot yet

produce a clean enough sample (the racilla sticks to the grain with some

varieties). He has not been on the IRRI training program but thinks it would

cost him too much. Nevertheless he would like to go. He was not enthusiastic

about the IRRI weeder, which he said he tried, but discovered that the seed bed

prepared by Thai farmers was not smooth enough for it to work properly. In

the future he is interested in producing a harvesting machine and is thinking

of copying a design from the Peoples Republic of China,

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LocctC copyj ou) JTR1R desiglled ax&CC (Itott tjjtX&51i&i.

Thitec. oi these mctchien have beeni so d at $600 each.

(Chy~dee Pai~ch, Chctchoeagsao)

In~tde eocaCt wo.t~zhop 'shotoing mnueactWmc o6 axcc.C

(vow tv ltcejt. (CUqdcee Pcuvich, Chachoeiigsaw)

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J. CHYDEE PANICH, Chachoengsao.

No. Employees: 8 permanent, 8 apprentices.

This factory has started producing a modified copy of the IRRI axial flow

thresher. Starting this year they havc manufactured seven and sold three at

A 12000 each. The owner says he has had one visit from IRRI personnel and

later went to the Ag. Engineering Division of the Ministry of Agriculture to

ask about the axial flow thresher. There he gained the impression that it was

not yet successful. However he looked up some IRRI machines made by others

and copied them with modifications.

He claims to have improved the quality of threshing by increasing the

number of pegs on the drum and reducing the spacing between the bars on the

concave.

This manufacturer produces power tillers of his own design and sold 100

last year at a price of A 5000 ($250) without engine, He also sells 500 - 600

water pumps per year. He says he introduced the IRRI power tiller earlier

but found it unsuitable and so discontinued manufacture and continued with his

own design. His complaint centred mainly around the mouldboard plough which

he claimed was of the wrong proportions. It did not turn over the local soil

which was sticky and contained long weed roots.

The factory sells direct to the farmer.

J. CHAROENCHAI LTD., Ayudhya, (Mr. Preecha)

No. Employees: 135.

The principal product of this factory is a 4 wheel 14-15 HP rubber tyred

tractor selling for A 42,500 ($2125) at the rate of 80 per month. As far as

we know this is the largest indigenous tractor manufacturer in Thailand.

In 1974 they began to produce the IRRI power tiller and have sold some

500 altogether, including 300 in 1976. Most of the power tillers are not

-24-

LoecaUy designed cmid rncozL cactmed powc't t&eet. PA-ice

$250 wtthowt engiie. (J. Chn~oeacjlai Ltd. , Aijudiya)

Local~y mnanu cwtwted potoeAi tLUee ptough.

(J.ChAoenchi L.td., Ayudhya)

-25-

Loctte mca;ucctmIe~d TRRI de.&~iicd p)Oweit tU-eeA',

Ftvut bipuoved mocdcC. (J. Clicuw C:ila. Ltd. , Ayadh~t)

Loccdity mianu~actwtc4 L1RI dce Lgiied pc'wn. tLUtvt.

Second .Lfllp'ovCd modee. No-te icnea~d s.*z q I opie~s

Pkc $440 ,inctud~iji9 6-8 HP. pet~'o.e engiLne, So.Ld 300 iLn 1976.

(J. ChcatoenzIci Ltd. , Ayudhyac)

- 26 ­

sold in the immediate vicinity but in Chieng Mai (See Wachara), Singburi,

Chainat and Saphanburi all further north, In spite of selling so many, the

IRRI power tiller is regarded as a side line.

Mr. Preecha says that the IRRI machine is good technically and mechanically.

Originally he manufactured exactly to the IRRI specification but found it

necessary to increase the size of thL major components. In this he obtained

assistance from IRRI in Thailand.

This main criticism of the IRRI machine was its poor appearance. In fact

he says that when he redesigned it to improve the appearance his sales went up.

His pattern of sales has been as follows:

1974 20

1975 200

1976 300 +

1977-He will sell 300 or more depending on the competition. If any other

2 wheel manufacturer goes bankrupt his sales will increase.

Mr. Preecha points out that in the Northern provinces the farmers prefer­

ence is moving towards a 4 wheel tractor. He is therefore very interested in

the IRRI 4 wheel tractor which is at present at the design stage (cf. Mr. Rueng).

He attended the IRRI training course in the Philippines but since his

English is poor the most valuable part to him were the slides he saw. He made

the suggestion that an English speaking Thai person should attend the IRRI

training course, and then give the same course in Thai in Thailand. He would

like to have learned more about other non - IRRI machines.

PRAMOULKOLKIT, Bangkhaen

No. Employees: 20.

This factory produces milling and mixing units for animal feed and some

cultivating equipment and tractor trailers. The only IRRI design manufactured

- 27 ­

is the axial flow thresher of which about 15 have been sold mostly in Sukothal

and Chieng Mai.

Originally he obtained IRRI blueprints and startfd mVllufacture in 1976.

He sells them for approximately A 15000 ($750). He was vcry Z'ntLiuniastic

about the IRRI program. He pointed out that by adapting IRRI designsthere is

a tremendous saving in design and development work. Furthermore, in order to

sell to the farmer demonstrations must be held. There was no Agricultural

Engineering extension service in Thailand and IRRI were useful in this regard

by organizing demonstrations.

ANUSARN CO. Chieng Mai, (Mr. Rueng).

No. Employees: 60.

This company make the IRRI power tiller with few modifications. Since

1975 he has sold close on 200 machines and continues to make them at the rate

of 30 per month.

Formerly he used to sell the Honda power tiller. He discontinued because

it was more expensive and complained that the Japanese company controlled him

too much. He liked the easy going relationship with IRRI.

He felt farmers would like the IRRI machine to be heavier and more robust

(note that J. Charoenchai already sells a heavier machine). He felt the IRRI

service was particularly va".uable in that it saved his company time at the

drawing board and in development, time they did not have.

He commented that the 'hilippine Government and IRRI appear to have very

good cooperation. This has not been developed yet in Thailand. There is

very little agricultural engineering trainirg in Thailand.

He felt that the Thai IRRI group should employ a local technical consul­

tant to make it easier for manufacturers to use components locally available.

With regard to 4 wheel tractors he felt they were better suited to larger farms

further south than the Chieng Mai area.

- 28 ­

A.2. FARMER SURVEY

Since the largestIRRI power tiller manufacturer (J. Chareonchaj Ltd.,) was located in Ayudhya and the largest axial flow thresher manufacturer (Kasertthai Ltd.,) was located in Chachoengsao itwas originally intended to concentrate the farmer survey in these areas. However itwas soon discovered that most of the Ayudhya power tillers were sold in the Chieng Mai area, largely through aggressive selling by the Chieng Mal dealer Mr. Wachara.

Consequently a survey of 40 farmers was conducted concentrating in two areas -Chieng Mai (29 farmers) and Chachoengsao (11). These two groups of farmers were using IRRI designed power tillers and axial flow threshers respectively.

There were certain political constraints to be faced in conducting the farmer survey. At the present time Thailand is going through a period of extreme political uncertainty and individuals making random surveys in rural areas may soon run into difficulties.with the police and security forces, We were for­tunate in this respect that the major manufacturer in the Chieng Mai area, Mr. Ruang,was also the mayor of that city and rendered us the necessary co­operation. Likewise the principal axial flow thresher manufacturer in the Chachoengsao area (Mr. Charroy) was also the mayor of Panas Nikom and kindly

facilitated our survey work.

POWER TILLERONERS

In all 29 farmers in the Chieng Mai region were surveyed. Of these 7 had a power tiller manufactured by Anusarn Co., of Chieng Mai and the remaining

22 had one manufactured by J. Charoenchai Ltd., Ayudhya.

Although the two tractors are essentially the IRRI design, only the Anusarn Co., machine is manufactured closely to the IRRI specification. The Charoenchai machine has been modified by generally increasing the size of components and making

- 29 ­

it bigger and heavier (see photograph). Also the appearance was modified to

make it look more attractive to farmers.

The average farm size of the power tiller owners was 13.56 rai (2.17 hectare),

individual fields being somewhat scatterred. Of this 10.32 rai (1.65 hectares)

was planted to first crop rice and on 9.92 rai (1.59 hectares) a second rice

crop was grown. No farmer grew a third crop. The average income of the

group last year was A 15, 270 ($763.5) but this includes four farmers earning

more than A 30,000. The maximum claimed income was A 70,000 on a 50 rai farm.

21 of the power tillers were manufactured by Charoenchai Ltd., (Ayudhya) and

were all sold through the local dealer Wachara at a price ranging from A 8700 to A 9800 ($435 - $490) including a Japanese 6 to 8 HP gasoline engine. The remaining seven power tillers were purchased directly from the Chieng Mai manu­

facturer Anusarn Co., at $ 16000 to A 21000 ($800 - $1050) including 6 to 8 HP

Japanese gasoline engine. All those farmers buying from Anusarn Co., were

equipped with a mouldboard plow, harrow, rotary tiller, trailer, cage wheels and lug wheels. Those buying from Wachara (J. Charoenchai) had only a mouldboard plow

and harrow. The gasoline engine was preferred to the diesel on account of its being

less vulnerable to damage if the tractor overturned in the

On average, according to farmers' estimates, each tractor was used 113 hrs. per season on their own farms. 62% of the farmers also did contract work for others averaging 171 hrs. per season. 40% of them spent an average of 42 hrs.

working on neighbours'farms free of charge. The average estimated usage per

season of all tractors amounted to 233 hrs.

Without exception all farmers agreed the power tiller speeded up work and

enabled them to grow two rice crops per year. In this regard it should be

noted that a buffalo operates continuously only at about.- HP. Farmers were 3

equally emphatic that the power tiller reduced the cost of labour. Normally

two people were required to operate the machine, usually the farmer himself and

- 30 ­

a brother or child, occasionally a hired worker.

All farmers agreed the power tiller made their work easier. With regard

to design all farmers except two (who had no opinion) felt that the tractor was

well designed. However, in response to a question as to whether they would

buy another one of the same make only half said that they would. Eight farmers

said they would not buy another Charoenchai machine because it could not be used with

a rotary tiller. Instead they would buy one which could, citing the Japanese

Kubota or an Anusarn machine. The rotary tiller attachment made the tractor

much more versatile in that iL could be used for dry land cropping instead of

being limited to rice cultivation.

With regard to the quality of work all with the exception of two (one did

not know) agreed that the power tiller enabled them to do a better job of culti­

vation than before. Farmers did not on the whole experience difficulty

in getting spare parts and said (17) that the repair service was

readily available.

The most consistent complaints with the Charoenchai machine were that the cage wheels could not be changed for rubber tyred wheels and that it had no rotary

tillage attachment. Also it was often remarked that the handle bar broke easily.

As regards the Anusarn machine two farmers complained about the absence of steering

clu tches.

A big problem for the farmer are kamoys (thieves) who, with soft words in the night, can easily persuade a buffalo to quietly wander off with them. Tractors are not so easily persuaded and so offer a smaller security risk. Also deliberate poisoning

of animals for political or for simple reasonsof neighbour amtagonism is not un­

common. A fully grown buffalo costs around A 4000 ($200) which represents

a considerable investment for the Thai farmer.

- 31 -

AXIAL FLOW THRESHER OWNERS

The most striking feature about this survey (11 respondents) was the

relative affluence of the farmers owning axial flow threshers. The mean farm

size was 112 rai (17.9 hectare) and the average income per farmer per year was

A 172,000 ($8600). This excludes the farmer owning 200 rai who claimed to

have had a gross income last year of A 1,490,000 ($74,500); if this figure is

true he is obviously not making his money out of farming. Most farmers appear

to have another business but it was not possible to distinguish farming income

from non-farming income. All the farmers grew two crops per year averaging 107.3

rai (17.2 hectare) for the first crop and 121.8 rai (19.5 hectare) for the second

crop, which indicates that some are utilizing other farmers' land for the second

crop. Most of these farmers had two power tillers and associated cultivating

equipment and usually owned one or two water pumps. All the farmers interviewed

bought their axial flow threshers from Kasertthai Ltd. (Mr. Charroy). Farmers

owning machines manufactured by J. Chydee Panich and Pradityont Shop were not in­

terviewed because although both claim to copy with modification Mr. Charroy's ma­

chine the direct connection with the original IRRI specification is more tenuous.

By contrast with the power tillers all but one of the axial flow threshers

was powered by a Japanese diesel engine (6 to 8 HP.). The diesel engine was

chosen on account of its cheaper running cost. The price of the machine exclud­

ing engine was B 17000 ($850). None of the farmers had been using them more

than a year and several (3) had had only one season's use out of them.

On average the farmers estimate they used tha machine 100 hrs, per season

on their own farms. Three of them (27% of the sample) used them on average

210 hrs. on neighbours farm free of charge and six of them (55% of the sample)

spent on average 143 hrs. on contract work. The estimated overall average

machine use was 235 hrs. per season.

- 32 -

All farmers agreed that the machine speeded up work and reduced labour

cost. On average 7 (6.8) people were required to operate the machine. All

agreed that the machine was easy to operate and that it did a better job than the method they used before. (In Thailand the traditional method of threshing

is by treading the crop with buffaloes or by riding over it with a small tractor on a specially prepared threshing floor. Hand winnowing is carried out separately).

Half the farmers (6) had trouble with breakdowns. Those having breakdowns suffered an average of five per season, the usual fault being that the oscillating

tray broke. IMost farmers (8)said that the machine was easily repaired and that the repair service was both reasonable (8)and readily available (8). Spare parts

were readily obtained.

Although most farmers (9) felt that the machine was well designed there were a number of persistent complaints, In order of magnitude they were:

The oscillating tray breaks (6)

The machine needs an extra sieve to separate broken grains from the chaff.

As matters are, winnowing is necessary afterwards (5).

Rice tends to be lost by being blown out with the straw (4),

Some varieties of rice are not cleanly threshed, The racilla remains

attached to the grain (3).

The machine is cumbersome and difficult to move (3).

The machine is heavy to operate (3),

Other minor complaints were that the machine does not work properly with

wet paddy (2), that dry paddy is not threshed properly (1)and that sometimes

straw gets entangled with the peg drum.

When asked if they would buy another axial flow thresher from Mr. Charroy only two said that they would. Seven declared they would not the principal

- 33 ­

reason being that they preferred to have the locally designed and locally modified

machine which was cheaper. Pradityont Shop offer a machine for A 15000 ($750)

and Chydee Panich offer one at A 12000 ($600).

- 34 ­

A.3. AGENCY OPINIONS

Agricultural Engineering Division of the Ministry of Agriculture, Bangkhaen.

Director: Mr. Samnao

Assistant Directors: Mr. Paiboon, Mr. Winij

Head of Workshop and Services: Mr. Chak Chakkaphand

This is the Department with which the IRRI project liaise closely, and is

located in the same building. The Director and his staff showed considerable

enthusiasm for the IRRI project, which they thought was going well, better in

fact them a current IDRC project on rice drying and storage. The latter

involved money only, not people.

The Division isand has been engaged in design and testing in the past but

it is clear that the presence of the IRRI project has given a much needed impetus

to this activity. They see their task not as one of coming up with new invention

but of adapting existing designsfor Thai use. In this IRRI are of great help.

Also they are aware of the need to assist local entrepreneurs in their design

and adaptation. If the IRRI project closes down they see little prospect of being

able to continue this activity.

Recently the 3rd Social and Economic Development Plan was initiated. This

called for double cropping and increased yields. Also government wishes to en­

courage small scale industry in rural areas. Formerly the excuse for growing

only one crop of rice was 'thai may tan', which means that ploughing was carried

out too late. Tractors have now eliminated this. The problems now is 'Kiaw may

tan' which literally means "harvest not in time". Thus reaping and threshing

machines are required to speed up harvests. Latterly the problem of 'haeng may tan'

has arisen, which refers to the problem of drying second crop rice. All this

pointed to the urgent need for appropriate machine design of the IRRI type.

- 35 -

A number of Thais associated with the Division had been to IRRI for training,

which they found very useful. They feel they should try out repeating the IRRI

course in Thailand in Thai.

With regard to training, testing, design and research, they said they would

like to see in addition other Institute such as the Asian Institute of Technology

(AIT) who had more people available, taking part in the cooperative program.

Regional Network for Agricultural Machinery (RNAM)

Director: Mr. Majid Khan

This organization was originally proposed by UNIDO in 1972 as a UNDP project.

In its original concept it was to have been a Centre for the design of agricultural

machinery which would assist entrepreneurs in Asia with design and manufacturing

advice. In this form it was commented that the organization would mostly benefit

the host country and would in any case be duplicating some of the work of the IRRI

Agric. Eng. Dept.

Consequently the function of the organization has been reviewed and it is

now set up as a Regional Network in which individual nationally sponsored Farm

Machinery Development Centres will be supported. This will take the form of

helping to coordinate such centres thoughout the region to avoid unnecessary

duplication, and to enlist the aid of such organizations as IRRI, the Interna­

tional Crops Research Institute for the semi-arid tropics (ICRISAT, Hyderabad)

and the Asian Institute of Technology (A.I.T,, Bangkok), indesign and consultation,

and to provide information feedback to them on regional needs, It can thus be

seen that the RNAM will rely to a considerable extent on the presence of the IRRI

program at Los Ban-s.

- 36 -

In the first two years the RNAM project will be concerned mainly with

government contact and encouraging them to set up National Farm Mechanization

Committees. Some involvement in design will take place during this period;

managerial advice capability will come after two years or more.

The Director therefore is very much in favour of the IRRI project in

Thailand which he sees as beneficial locally and complementary to the RNAM

project. It is very desirable from his point of view that the IRRI project

in Thailand should continue into the second phase, It would seem also that

much of the present effort of IRRI in Thailand could be assummed by the RNAM

when the IRRI project has been phased out.

United Nations Industrial Development Organization (UNIDO)

Mr. Aselmann:

Mr. Aselmann was in favour of the IRRI project in Thailand which he thought

should be continued. He remarked that practical application of this nature was not often found. From his experience workshops in Thailand are primitive and they

need help. The IRRI project approach was both good and sound and one which, in

principle, he strongly supported.

..- .I*.I"~ r'.4G 1 ~~~~~~~~~C'~a 'Y O ..CT TYPE

'ACT OF I',*S > .?V C::-L 1X3S7,8

5Agency -For !nentcADeicpmert r,~ci.~~ Isitt .. 4 Office of Con-ract :~~~tNAME PO o 3 Central r~e tions D4v.'ision PO o 3 Washington, D.C. 20523 ISTREET A['L%L:S

CITY', STA-IE. A.>. Z:? u ______

ADM~N!Sf ~CH-NRLEc~;vc i F i LELUN D'1COG.NIZN

CM/COO/TA53____________ TA/ACR ACCOUN"TING XND APPROP1,RATiON DATATFL L:C IIE "S 11: i rf.ai e- 3 CuPI C 1

NO. ___.3_____

'rPIO/Tflnvfcr It rkticn0. Dev np"ent PR rrCj.________ OFfic cT ItUl ___________E 1r:r-i:' ALLO0TMEN T N0.

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TYPE S OF FtL:Q;:. - ECK APPROPRIATE DOX(TES))

.SMALLSOLEPORE~c~iP BUSINESS

LABOR SURPLUS AREA'N.S.E P.

S:uso C. ert-i:i L.-~ i : G.) Crrnnt, e! r t- by the Conrarr-rz U)* .:c.The UP-ieed r: C auc mha! the '2ontracto,- sh-Ji p.-rr. a"I tliz S-%4-~s :oexeciutinz thL_ co:-z-.. an h., Conrlcor

-lie ni; ~ otin Clio atLh.2,1 Lc.du f: n co "dr:onsrai~ed therein. *~-ht .11-.J o the : 0

oad.aer~ lisYc rlh- rv3or..;.;e~~ To thec r .ntis ccr.tx~ sov ytcS'Lc and

;niy incons:sunrcy .. tce- !rr,: 'oc:-eziu.: rx, the Gen.: Provi1skc.rs.and any,:c.ei or .. ,i-

Scaedutc te e SchcLitu!c and rh, Gei~crzi P.Ovisions, ,1

whiich are nacte a rl:: 'rt th cor.zract. by re-e.,zace or otherwise. the Eli Gcneral.-i .1. 5

sh.011 con~trol. To t",,' cx-e[t ot any irico~isLstBcny be'tween fl

Scheduie shUU cc;mrr1;.

This Cc!-tra(ct consstc of thi1s Cover Pagje, the! Schc.ule of pagqe,

inclu , ng th-e ""a--e c- Contents ana the General PrcovisL3ru, (. Orl'm AML) 1J,2C­

41C, dzated 9?774 an:! rAd_itional General Provisi-ons (form AID 1420-41D dated 9-74. ~

UlGjNCY-FOP.,ITERNATOOF AYC.'o DEVELOP.aENTio,Intern'Aticni-1 Rice Research InStiltUte~

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J.C. I~ki Pnrpleli_________V._C. 1ITLF 1 C0S*):*RAC.L'I , o1 1%l.

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AID 1420.4 IA 17.7.11

SCHEDULE

COST REI '3URSEM.ENT TYPE CON;TRACT

Contract Nb. AID/ta-C-1208

TABLE OF CONTENTS

SCHEDULE

ihe Schedule, on pages I through 11, consists of this Table of Contents

and the following Articles:

ARTICLE 1 - STATEMENT OF WORK

ARTICLE 11 -TECHNICAL DIRECTIONS

ARTICLE III - PERIOD OF CONITRACT

ARTICLE IV. - ESTIMt'TED COITPACT COST AIND FiNANCING

ARTICLE V - BUDGET

ARTICLE VI - COST- REI.1-URSABLE TO CO';TRACTOR

' ARTICLE VIi- ESTABLISH ENT OF OVERHEAD RATES

ARTICLE VIII PERSOINNEL COMPENSATIO'N

GENEMAL PROVISIONS

I.. The General Provisions applicable to this contractS consist of form

AID 1420-41C entitled "General Provisions Cost Reimburserent Type Contract"

dated 9-74, ,:hich includes provision- 1 through 43; and form AID 1420-41D

entitled "Additional General Provisions -. Cost Reimbursement Type Contract"

dated 9-74, which includes provisions 1 through 15.

SCHEDULE

ARTICLE I - STATEMENT OF WORK

A. Objective

Under Contract No. AID/csd-2541 the Contractor designed, developed

and disseminated agricultural machinery designs which were specifically

tailored for local manufacture and use in the tropical rice-producing

countries of Asia. This contract will outline the essential elements

of an industrial extension program to expand to other rice producing

c utrie, the b fits resulting trom the research and development

activities carried on by the Contractor for small scale agricultural

equipment for rice production, harvesting and processing.

More specifically, Contractor's objectives will be to:

1. Conduct economic and market evaluation studies-to determine

those Contractor designed agricultural machines wnich offer the greatest

potential for productive and profitable mechanization.

2. Carry out a comprehensive test and evaluation program to

determine the performance characteristics of Contractor equipment under

conditions encountered within the selected countries.

3. 3rovide continuous technical and in-country engineering.

assistance to manufacturers entering production with Contractor design.

4. Provide continuous business and management guidance to manufac­

turers entering production to insure continued viability and profitable

operations.

5. Perform adaptive design and development work on those Contractor

Machines which offer potential but lack sufficient compatibility in the

original configuration to meet local farm level needs and/or indigenous

manufacturing requirements.

6. Promote Contractor designed equipment through demonstratipi

activities involving both farmers and manufacturers.

B. SCOPE OF 1.:ORK

For a period as hereinafter set forth in the Schedule, Contractor

shall, (1)provide assistance to manufacturers in Pakistan, Thailand and

two satellite countries in adapting prototype machines produced bythe

Contractor into a complement of locally produced equipment, less costly,

more efficient and readily accessible to the small farmer to enable him

to shift to partial mechanization; and (2)identify and involve an indigenous

organization, in Pakistan and Thailand, within three months after execution

of this Contr.at that will be trained and involved in testing, evaluaticn and re-designing of Contractor prototypes so that these organizations will

be capable of performing these functions after cbpletion of this contract.

These organizations will also be involved in making blue prints and operating

manuals for machines manufactured and sold. Contr-ctor will also provide a

minimum of three prototype machines each per year for Pakistan and Thailand

for a two year period and a minimum of three prototype machines for the

second year for each of two satellite countries.

C. REPORTS

Inaddition to the reports required under General Provision NO. 16

Page 3.

of this Contract, the Contractor shall provide the following reports:

1. A report covering activities of all Contractor and Sub­

contractor team members and consultants for local survey or internatiooal

travel. Twenty-five copies of all survey reports are to be provided within

45 days of activity completion.

2. Ten copies'of a semi-annual fiscal report and a progress report.

The first such report will be due June 30 of each year and will show actual

expenditures through arch 31 and an estimate of expenditures through June 30.

The second report due December 31 will show actual expenditures through

September 30 with an estimate of expenditures through December 31.

3. A special detailed Progress Report covering 17 months of operation

from date of contract execution.

The aforementioned reports will be submitted to:

Messrs James A Urano & Ryland Holmes

Office of Agriculture

Technical Assistance Bureau

Agency for International Development

Washington, D.C.20523

ARTICLE II - TECHNICAL DIRECTION'S

Performance of the wo-'k hereunder shall be subje:t to the technical

directions of the cognizant A.I.D. Scientific/lechnical Office indicated

on the Cover Page. As used herein,"Technical Directicns"are.directions to

the Contractor which fill in details, suggest possible lines of inquiry , or,

otherwise complete the general scope of the work. "TEchnical Directions" must

bewithin the terms of this contract.and shall not c..nge or modify theti in

any Way.

ARTICLE III - PERIOD OF COITPACT

A. The effective date of this contract is June 30, 1975 and the

estimated completion date isSeptember 30, 1977.

ARTICLE IV - ESTW1ATED CONTPACT COST AND FINANCING

The Contractor will be reimbursed for the costs incurred by him in

performing services hereunder in accordance with the applicable provisions

of the Schedule and the General Provisions, subject to the following limit­

&%ion made in respect thereto

A. Total A.I.D. dollar funds available for payment

and allotted to this Contract. See the clause

of the General Provisions entitled "Liritation

of Funds" and the article of the Schedule en-.

titled ':BudgeT", if appiicdbie. _____._

B. Estimated additional funds which may be pro­

vided during the period from 4-1-75 to 9-31-76

if funds are available. See the clause of the

General'Provisions entitled ":imitation of

Funds' and the article of the Schedule entitled

"Budget", if applicable. $ 41,102

C. Estimated additional funds which may be previded,

during the period from 10-1-76 to 9-30-77, if

funds are available..See theclause of the General

Provisions entitled "Limitation of Funds" and the

article of the Schedule entitled "Budget if

$331 ,380applicahle.

Total Estirrited Contract Cost $772.4S2

NOTE: It isestimated that the aforesaid amounts i.11 be sufficient

to complete the work required hereunder as set forth in the Schedule

article entitled "Statemnent of Work".

ARTICLE V - BUDGET

FIRM- ESTIMATED TOTAL BUDGET COST TO ESTI,1ATED

COMPLETI0ON CONTP$CT Cn-5T

iVR*-04-01-75" "FR: 10-01-76 FR:04-01-TE Line Item No. TO:09-30-76 TO:09-30-77 TO:09-30-77

1. Salaries & Waaes $144,775 117,923 p262,698

2. Overhead 21,720 17,690 39,410

3. Fringe Benefits & Allowances 63,317 47,862 111,179

4.- Travel & Transportation 59,400 43,800 i03;200

5. Subcontract 83,390 57,605 140,995

6. Equipment, Materials & Suppl.ies 68,500. 46,500 115,000

Grant Total $441,102* $331,330 $772,482

• Total A.I.D. dollar funds obligated and available for payment is

$400,000. See the clause, of the General Provisions entitled "Limitation

of Funds" and Article of the Schedule entitled "Estimated Contract Cost

and Financing". Total contract expenditures shall not exceed the funds available. Within the grand total, the Contractor may. adjust .ine Item

amounts as reasonably necessary for the performance of the work.

The Contractor also agrees to furnish data which the Contracting

Officer way request on costs expended or accured under the Contract in

support of the budget information provided herein.

The allowable cost of performance of this Contract shall include

all allowable costs .whichhave been incurred by the Contractor in

anticipation of this contract on or after.April 1, 1975, but prior to

the execution date.hereof, and which, if incurred after the date of

this Contract would have been considered as items of allowable and

allocable costs, provided, however, that such anticipatory costs shall

not exceed $2,000. unless such amount issubsequen.tly increased inwriting

by the Contracting Officer.

ARTICLE Vi - COSTS REI,..URSABLE TO CONTRACTOR

A. United States Dollar Cost

The United States dollar costs allowable under the contract shall

be limited to reasonable, allocable, and necessary costs determined in-­

accordance with the Clause of the General Provisions of' this Contract

entitled "Allowable Cost, Fixed Fee, and Payment".

ARTICLE VII - ESTABLISXn,ENT OF OVERHEAD RATE

Pursuant to the provisions of the clause of the General Provisions

entitled "Negotiated Overhead Rates", the following final overhead rate

has been agreed to for the period set f6rth below:

PERIOD OVERHEAD RATE BASE

FROM: 04-01-75

TO: 09-30-77 15% * Salaries and Wages

* Exclusive of consultant fees, trainee costs and overtime

For each of the contractor's accounting periods during the term of

this contract,the Contractor shall be paid the actual, reasonable and

allowable indirect expenses allocable to this contract, up to that amount

determined by application of the rates specified to the agreed upon

base set forth herein.

The Contractor agrees to absorb all of'the actual indirect expenses

othenise allocable to this contract but which are in excess of that

amount determined by application of the rates as set forth above.

ARTICLE VIII - PERSO,NNIEL CO.PENSATION

A. Limitations

Compensation of personnel which is charged as a direct cost under

this contract, like other costs, will be reimbursable in accordance with

the Schedule Article erntitled "Costs Reimbursable to Contractor", and the

General Provision entitled "Allowable Cost,. Fixed Fee, and Payment," and

other applicable provisions of this contract but subject to the following

additional specified understandings which set limits an items which other­

wise would be reasonable, allocable, and allo ,able.

1. Approvals

Salaries, and wages may not exceed the Contractor's established policy

and practice, including the Contractor's established pay scale for equivalent

classifications of employees, which will be certified to by the Contractor,

nor may any individual salary or wage, without approval of the Contracting

Officer, exceed the employee's current salary or' wage or the highest rate of

annual salary or wage received during any ful'i year of the immediately pre­

.ceiling three years, provided that if the work is to be performed by employees

serving overseas for a period in excess of one year, the normal base salary

may be increased in accordance with Contractor's established policy and

practice, but not to exceed 10 percent of base U.S. salary excluding benefits.

Page 8.

There is a ceiling On reimbursable salaries and wages paid to a person employed directly under the contract of the maximum salary rate of FSR-1

(or equivalent daily rate of the maximum FSR-1 salary, if compensation is not on an annual basis), unless advance written approval is given by the

Contracting Officer.

2. Salaries' During Travel

3alaries and wages paid.while in travel status.will not bereimbursed

for a travel period Greater than the tire required for tFavel by -the ost

direct and expeditious air route.

3. Return of Overseas Employees

Salaries and wages paid to an emplioyee serving overseas who is dis­

charged by the Contractcr for misconduct or security reasons will in no van .,e d f,.For c whih exter:ds beyond the time requirec

to return him promptly to his point of origin by the imost ex*peditious air

route'pius ac.rued vacation leave.

4. Merit or Prc:oticn inrrpl' Merit or promotion increases may not exceed those provided by the

,ontraclor's established policy and practi.ce. erit or' promotion increases

exceeding the maxii,,um salary of FSR- may be granted-cnly with the advance

written approval of the Contracting Officer.

5.. Consultants ,

No compensation for consultants will' be reim.bursed unless their use under the ccntract has the advance written approval of the Contracting Officer;. and if such provision has been made or.approval given, compensaticn

Page 9.

shall not exceed, without specific approval of the rate by the Contracting

Officer, (1)the current ccmpensation or the highest rate of annual compensation

received by the consultant during any full year of the invediately preceeding

three years or (2)raximum daily salary rate.of a Foreign Service Class 1

whichever is less.

The dally rate of a Foreign Service Office Class 1 is determinedNOTE:

by dividing the annual salary by 260 days.

6. Third Country and Cooperating Country Nationals.

orContractor will be reimbursed for compensation of third country

cooperating country nationals. Salaries and wages paid to such persons

may not, wi ,l,-out specific written approval of the Contracting Officer,

exceed either the Contractor's established policy and practice; or the

level of salaries paid to. equivalent personnel by the A.I.D. Mission in

the cooperating coUntry or the prevailing rates in the cooperating country,

as determined by A.I.D., paid to personnel of equivalent technical competence.

7. Work Iv"'eek

The work week for the Contractor's nonover­a. Nonoverseas Erployee.

seas employees shall not be less than the established practice of the Con­

tractor.

The work week for the Contractor's overseasb. Overseas Employee.

employees shall not be less than 40 hours and shall be scheduled to coincide

with the work %.:cek for those employees of the A.I.D. .ission and the Co­

operating Country asscciated ;;ith the Work of this contract.

B. Definitions

As used herein, the terms "Salaries," "Wages," ahd "Compensation"

mean the periodic rer.uneration received for professional or technical

services rendered exclusive of overseas differential or other allowances

The termassociated with overseas service, unless otherwise stated.

"'dompensation"includes payments for personal services (including fees and

honoraria). It excludes earnings from sources other than the individual's

professional or technical work, overhead or other charges.

ARTICLE IX - SPECIAL PROVISIONS

A. Travel

Prior to making any visits to LDCs, the Contractor will review

his plans with TA/AGR, Contractor 'will keep AID Missions in countries.to

be visited fully informed of proposed visits, ask them to provide any advice

they wish regarding timing and content of the visits and to participate if

they desire, and will inform the Missions of the outcome of consultations,

Contractor vi.ll make his own appointments and logistics arrangements directly.

Upon completion of any project funded travel, a copy of the trip report will

be provided to the TA/AGR Project Manager. The report format will be establishe

jointly by the Contractor and the Project 1anager.

B. .Overtimne

Contractor is authorized to reimburse non-technical and non-professioral

employees for overtime worked under this contract.

ARTICLE X - SU.CONTRACT

Pursuant to the terms and conditions of General Provision No. 18,

Contractor isauthorized to enter into a subcontract with the Industrial

Develcpm..ent Divisicn of the Georgia'Institute of Technology.

ARTICLE XI - '.(ODIFICATIONS TO THE GENERAL PROVISIONS AND/OR ADDITIONAL

GENERAL PROVISIONS

1. Delete all references to Subpart1-15.2 (Principles and

Procedures for use inCost Reimburserment Type Supply and Research Contracts

with Com,.ercial Organizations) of the Federal Procuerment Regulations" and

inlieu thereof insert "Subpart 1-15.3 (Principles for Determining Applicable

Costs Under Research Contracts with Educational Institutions.

Delete General Provision No. 8 entitled "Limitation of Cost2.

December 1970)" and in lieu thereof substitute "Limitation of Funds

(June 1973)" attached hereto (Attachment A) and made"a part hereof.

3. General Provision No. 9 entitled "Alloable Cost, Fixed Fee, and

Payment. (September 1974)" delete,-all reference to "fixed fee".

LIMITATION OF FUIDS (JU:NE 1973)

(a) It is.estimated that the cost to the Government for the performance

of this Contract will not exceed the estimated cost set forth in the

Schedule, and the Contractor agrees to use his best efforts to perform

the work specified in the Schedule and all obligations under this

Contract within such estimated cost.

(b) The amount presently available for payment and allotted to this

" Contract, the items covered thereby, and the period of performance

which it is estimated the allotted amount will cover, are specified i

the Schedule. It is contemplated that from time to time additional funds

will be allotted to this Contract up to the full estimated cost set forth

in the Schedule., The Contractor agrees to perform or have performed

work on t1is Clontact up to the point at.which the toLl amount paid and

payable by the Government pursuant to the terms of this Contract approxi­

mates but does not exceed the total amount actually allotted to the

Contract.

(c) If at any time .the Contractor hPL reason to be-lieve that the costs

which he expects to incur in'the performance of ths Contract in the

next succeeding'60 days, when added to all costs previously incurred,

will exceed 75 percent of the total amount then all-otted to the Contract,

the Contractor shall notify the Contracting Officer in writing to that

effect. The notice shall state the estimated amount of additional funds

required'to continue performance for the period set forth in the Schedule.

Sixty days prior to the end of the period specified in the Schedule

-2­

the Contractor will advise \Loe Contracting Officer inwriting as to the

estimated amount of additional funds, if any, that will be required for

the timely performance of the work under the Contract or for such further

period as may be specified in the Schedule or otherwise agreed to by the

parties. If,after such notification, additional funds are not allotted

by the end of the period set forth in the Schedule on an agreed date

substituted therefor, the'Contracting Officer will, upon written request

by the Contractor, terminate this Contract pursuant to the provisions

of the "Termination for Convenience of the Government" clause on such

Jate. Ifthe Contractor, in the exercise of its reasonable judgment,

2stImates that the funds available will allow it to continue to discharge

its obli-ations heeunder for a period extending beyond such date, it

3hall specify the later date in its request and the Contracting Officer.

inhis discretion, may terminate this Contract on that later date.

(d) Except as required by other provisions of this Contract specifically

citingandstated to be an exception f'om this clause, -the Gover. -ent

shall not be obligated to reimburse the Contractor fur costs incurred

in excess of the total amount from time to time allotted to the Contract,

and the Contractor shall not be obligated to continue performance under

-3­

the Contract (including actions under the "Termination for Convenience

of the Government" caluse) or otherwise, to incur costs in excess of the

amount allotted to the Contract unless and until the Contracting Officer

has notified the Contractor in writing that such allotted amount has

been increased and has specified in such notice an increased amount

amount then allotted to the Contract. To theconstituting the total

extent the amount allotted exceeds the estimated cost set forth in the

Schedule, such estimatedcost shall be correspondingly increased . No

notice, communication, or representation in any other form or-from any

.person other than the Contracting Officer shall affect the amount

allotted to this Contract. In the absence of the specified notice,

the Government shall not be.obligated to reimburse the Contractor

for any costs in excess of the total amount then allotted to the

Contract, whether those excess costs were incurred during the course of

the Contract or as a result of termination. .When and to the extent

that the amount allotted to the Contract has been increased, any costs

incurred by the Contractor in excess'of the amount previously allotted

if such costs had been incurredshall be allowable to the same extent as

after such increase in the amount allotted; unless the Contracting

Officer issues a termination or other notice and-directs that the

increase is solely for the purpose of covering termination or other

specified expenses.

(e) Change orders issued pursuant to the "Changes" clause, if any, of

this Contract shall not be .considered an authorization to the Contractor

-4­

to exceed the amount allotted in the Schedule in the absence of a state­

ment in the change order, or other Contract modification, increasinq

the amount allotted.

(f) Nothing in this clause shall affect the right of the Government to

terminate this Contract. In the event this Contract isterminated, the

Government and the Contractor shall negotiate an equitable distribution

of all property produced o purchased under the ContraGt based upon

the share of cost incurred by each.

I UNITED STATES GERNMENF q3lOo ? 'Memorandum

O-A"s* TO : TA/PM, Mr. Charles Molfetto DATE: Jan. 15, 1975

FROM AFR/DP/PPA, Frank J. Moorer

SUBJECT: Industrial Extension of Small Scale Agricultural Equipment

Just ror the record, I want to indicate that, I believethat this project is of only very limited usefulness inThailand and that to that extent, allocationof funds toexecuting the Thai part of the project does not representthe best possible use of A.I.D. resources. I had hopedthat these concerns which I expressed strongly at theOctober 1974 meeting would have been taken into con­sideratio:2 in the preparation of this project. The Department of Engineering of the Rice Department ofthe Thai Linistry of Agriculture has, over the years,developed a large number of implements for small Thairice farmers and has been successful in getting a numberof these implements manufactured by small-scale localentrepreneurs. In other words the Thai have, on theirovin, achieved quite well what this project now propoesesto teich them. The work was undertaken under the dir­ection of M.R. Debridhi Devakul, an American-trainedengineer, consultant to Toyota and holder of a substantialnumber of world-wide patents. M.R. Debridhi is known toIRRI.

Clearly, in this field, as in many others there is much to-a gained from an exchange of experience and from "net­working", but this hardly requires an input of-around$400,000 for Thailand.

For both countries, but certainly for Thailand whichon the basis of 8 years of residence I know well, the toneof the proposal and the content of the budget strike meas quite inappropriately paternalistic and condescending.There are sufficient engineers in Thailand who have a levelof training and competence that does not justify takingt!hem on as a assistants to ex-patriates at about 1/6 oftheir salaries or probably 1/10 if one includes overhead.

Buy U.S. Savings Bonds Regularly on the Pa)yroll Savings Plan

-2-

If nnitoring is required, why not take advantage of the As!a Institute of Technology which has certainly has re­levamt interests and competence?

Froject of developing a local capacity to manufacture suitable equipment for small rice farmers in developing coLntries is so valuable, as to make it particularly im­portat to choose locations whe-'e it is likely to make the greatest contribution. If it is possible to look beyondAsia, I would suggest Senegal for consideration where a local company SISCOMA has, for a number of years, made small-scale mostly animal-drawn equipment for small dry­land farmers. They surely would have the technical competence and the commercial experience to extend their activities to equipment for rice farming which may be in­creasingly needed in West Africa.

NESA /TECiH: John Young E/ASIA: D. Yeaman L/D: C. Van Haeften A h/ AA: Woodrow Leake

S/S G.T. McCloskey EA/EAA/::: Milford N. Reed TA/AG?: .eon Hesser A/A^: John Caudill

UNITED STATES Gc"'ER.NNENT 3

Memorandum TO : TA/?.!, Mr. Charles Molfetto DATE: January 16, 1975

FROM : SER/IT, Philip Sperling/g"

SUBJECT: Ccmments on Proposed PROP "Industrial Extension of Small Scale Agricultural Equipment Development at IRRI"

Reference is made to Memo to R & DC Members from Mr. Carl Fritz, dated Jan. 13, 1975, calling for optional comments on subject PROP. In general the project is a perfectly good one end should be approved, but the narrative write up of the PROP itself and the logframe matrix leaves a lot to be desired:

a. The columns and rows of the logframe matrix do not jibe with the narrative statemient in the PROP.

b. The GPOI sequence in the narrative statement is somehow out-of-order.

c. Page 1 says the goal .is. "to increase food production"-in which case, none of the goal indicators given on p. 2 (a-e) will measure that. Also on p. 2, paragraphs a & b at the top are not indicators at all; paragraphs c, d, & e are output indicators altho stated at the goal

level. Indicator at goal *level to measure increased crop production should be something like "crop production increased (so many) bushels" per hectare.

d. On p. 3, the purpo:e of the project (to learn more, etc.) is .stazed some what differently from the statement given at the bottom of

3-. .Actually if the goal is "to increase food production" then *,'the purposes leading to that should be something like:

(1) to establish organizations to test and evaluate small apric. equip.

(2) to provide access for the small farmer to small agric. equip. and

(3) to place the small farmher in a competitive position in crop production.

e. On p. 4 (bottom and top of p. 5) the "conditions expected at the end of project" should give t1m indicators at the purpose level. These should be something like:

?Buy U.S. Savings 23onds Repilarly on the Payroll Savings Plan

(1) (a number of) organizations to test and evaluate small agric. equip. will have been established.

(2) an increased number of farmers will be using innovative small equip.

(3) an increased number of farmers willbe competing with (millers, etc.) at the market.

f. On p. 6, para. C gives a number of so-called "outputs" butgives target completion dates at the end of project. If they don'tshow uD until then, they are not outputs, but purposes. I suspectthe target completion dates are improperly estimated. For example:

(1) ."established indigenous organization" is a Durnose indicator and should not be listed with outputs.

(2) Magnitude of outputs for Econ. and Market evaluationscompleted should not include "sector analysis." That will not b& done,but "marketing studies" probably will.

(3) "Machines tested and evaluated" is an output indicatorbut should be completed after about 18 months from beginning - not at end of project.

(4) Results of eval. tests, etc. is an output indicator but should appear long before end of project status (EOPS)

(5) Same with tech. certification.

(6) Same with the outnuts listed on p. 7.

(7) Add: "twenty demonstrations of prototype machines annually."

g. I have no problem with the Assumptions listed at the various levels. .Theyare well thought out.

h. Bottom of p. 9 - "one man-month per year" aoes not seem enoughti-_e f-r -he TDD/GIT ccnsulzants. Suggest 2 or 3 men-months per year.

i. P. 11 and 12 - problem of energy requirement is not addressed.

J. pps 10-13 - problem of integrating women into developmentactivities is not addressed.

k. pps 10-13 - problem of distribution of income to the rural -oor is not mentioned.

1. Logframe matrix needs to be rewritten to jibe with narrative.

PP- M-C'&THEF I.NTIANA10CNAL RICE R[SEARCH INSTUE

Dae: May 31/76.t/KX~'~iirl

To- J'Alc //L4tA4'lv 3

From: P1r ~ i

tpowt%}"g nesSxibject:

M~ay I. to June 30, 197Th

the offic-e building by ARC for- -the !RR-Ffly,The rent-ing of delayed. consiec:mbly and -.,e were_..&.t~~utur). -' ~"~' fv1za 'icas

Zble to rtiovc Z.Cthe b:1agonl.y on May 1st 1976. The fic

aswcr3TClz'i'~ L eit-2 uildi. to aecp it for unc

* Some construiction. vor: w;as done {~con~vertzn ~icvi.office a-iihIl :wzoV,%.- jara~c area Sinto a secretavial office and 1ith11

'Ag-r, -d Otaher cr.-Yirvieeri ng w~-:thas he~n d~r~fio:, a:l-rozi :.n' in 7e :,tan by Sec-te-mbcr 1976.is --xpecte6 to Lr

The machine shcp equiplnt, such' as a aI.l1c, i&: ('!c­

and a p~'1liress, bar. bc,n shippca( -frm -Lhct;i'5.c woldcr$ a*g~r

miach-ince and .is Mce11*1,ilippincG along v.-i-ii sv~me prototype IRRI

co ar)iva in Pakistnin in the next few monthE. Work vi, thaa de'saop­

i~rtofth ~ :.'c.Lt~~sior the pnroject i~s well ui* 5.tLva

and it it; ho-pad tha-c )y caiy ctb' the prrg.:i-will3 ) - .Xy p

A Skel~ta t ! t& ,; engineers -!Td c~~seO:e.y nIasr.Z.Lti-.cO:nal. _r.: thezli-c .rc now '~l~iL~n b5'n ro

aircuely jxer hire;4 rhtv The /,'-)C *vanz fi.r~ilvy 7 Ltb-. ­~

an eie. - - 1.,. V...~ Will. work i{n c.-labovati.o7 with thc. E~~nan. -idi

1khcd - y:1 T-~ staff is noai be:-,!- hIrca.Iupt maciainery

v bz!n u>cd~ith intcreutecd local mitue0raez-_S 17ol oir. II protot~ype raclii~s:-rf the f'-Ati.ncf

:L) hdkpack l~dar~nicvtcr, (2) diaphrafmr pimp and (3) ax:ial­lil-e beea held with the nanagument of

flow t~~h1.Di-,funSiOns Tool Co. (HV.C) at Tay.,-.la, aFamca~~-$he State Iic,:Vy f-,~v.7

"IIEINTU(AT1ONAL RICE RESEARCH INSflTrtL

MW6:ra..,rn - 2 Date:

To:

Fron:

a nationalized corporation, about the possibilities of fabricating a prototype 15-20 hp riding tractor as per IRPI drawings. This tractor uses Jeep transmissions, transfer box, differential and steering gearbox which are already mar.ufactured by an associated company in Pakistan and so HM:C is interested in this particular project. Another nationalized company, the BECO, is producing a t-o-cylinder diesel engine which could be used for this tractor. 1he drawings of the IRRI prototype tractor have been delivered to

H',MC and they are now doing some preliminanT costing. studies to es­tablish project viability. The IMRI program will closely cooperate with the HM2 in the fabricatibn of the first prototype tractor and in evaluating and iodifying it to suit local conditions.

u...~~ ]. e1.rrvy a, aprS..-tituiral .... ,..-hc,,,-,.,

Cclc>a.do State University, is sncnding one year at the Agricultura.:. Engieer:.ng lept.. University of Peshawar on the CSU/Pak-.stan proj­ect. As one of his research projects, he has agcreed to adapt the IRRI a;tial flow Lhresher for wheat tlreshing. USAID/Islamabad has acquircd one axial flow iachine from the Habib Industr.ies nnd has delivered {t to :.:r. Illesley. The IRRI program will provide tech­nical .. stance to Mr. Illesley in adapting this thresher for wheat. An order has been placed with abib Industries to fabroicate one unit of the new axial flow thresher with the latest oscillating tray-screen design. This machine is expected to be delivered eerly Septebei,and will be used for test, evaluation and adaptation studies in rakistan.

Contacts have been established with the Appropriate Technclogy CeJ.l of the Flanning Commission at Pawalpindi, Thc National Design 6. Engineering Ccntcr, Lahore, the Agricultural Univcrsity, Lyallpur. and the runjab Agricultural Engineering Directorates Lyallpur, som:e of the organizations which will be col)cborating in the testing, adaptation aid introduction of IMRI machines in Pakistan.

M-. Phil Hess of Georgia Insvitute of Technolol ishelping

in the establishment of thc program and has started the machinery marketing studies. He is evaluating local manufacturing capabilities and contacting manufacturers with which the program should cooperate

THE INJ,HATIONAL RICE RESEARCH INSIT1V"

MenJ,\,ixdjm -. Date:

Tor

From:

in irtrcducing te III mac hines. A machinery newsletter has beenpW.iSshE:d Lboth in ZnlIsh and Urdu on the iRRI program in PakistanWhich is being widely distributed in the country.

c; 14RV/IICB

ts-ee&-January, 31, 1975

Mr. Levick

This project proposal has been in the works for some time, has received numerous

indications of front office support, been approved by the R&DC and, in the course

of all this, has achieved a commitment status in the minds of the IRRI people.

I recommend you approve the project, but still wish to pass on my personal I believe the project ideax was a good one addressingdiscomfiture at the same time.

a nmijor problem and utilizing previous AID efforts. My understanding is that it

started as a low budget effort aimed at getting the IRRI/Philippines experience

By the time I came along the budget had grown to $450,000 for a numberreplicated. of good reasons. It has since doubled again, still for good reasons. During this

latter puriod I have frustrated a number of people in AGR while trying to see that

the idea of instutituion building in JkH at least the pilot countries be made an

integral part of the project. This had often been discussed but didn't get into

the first few drafts of the PROP, the emphasis being on getting in there to identigy

potential local manufacturers and to get them making the machines needed by the

Such an approach would have been entirely appropriate for a smallfarmers. demonstration project to prove the machinery was not situation-specific and bound

to the Philippines.

The PROP now states that the project will include an institution building element

in the pilot countries that will leave behind a continuing capacity to introduce At the current price of $839,000-f intermedit.te level farm machinery.

I'm extreoely dubious that the project could be replicated without a similar

investment each time. I'm also uncertain whether IRRI and Ga. Tech. are really

interested in the business of working with government agencies in Thailand and

Pakistan rather than the much more interesting job of working directly wihh

Thus I'm uncertain wiether we willthe local manufacturers in those countries. see a continuing capacity developed even in the project countries. In addition,

Leon tells me that IRRI presently has no intention to put this type of extension

activity into its core program, though this might change if the project proves

exciting and Cdseful.

Our efforts either have succaededAgain, I recommend you approve at this time. I doubt anything further would be obtained by another go-around.or they haven't.

Only time will tell whether institution-building is accepted or is given lipservice.

Project development for this project also was happered by lack of continuity I would appe ciate, however, any guidance(unavoidable) in project development.

on how we can prevent good ideas from mushrooming into grandiose, over-elaborate

projects.John ing