LIVESTOCK I

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The Cattle Development Project for Paraguay will assist in financing a three year program for the development of the cattle industry in Paraguay. Livestock raising is the country's largest major industry. Cattle products provide food for the population and export earnings for the economy. The project will be the first stage of improvement in the economics of cattle production. It will entail: 1) extension of credit to producers for ranch development; 2) importation of machinery for contractors to undertake earth tank sinking; and 3) provision of foreign technical supervisory services. The specific project components are: 1) subdivision of larger ranch properties, up to a minimum of 10 to 20 paddocks, to permit adequate and separate control of the grazing management of young, breeding, and fattening stock; 2) provision of associated water supplies to each new subdivision with the major objective of increasing the overall use of existing natural pastures; and 3) the development of adequate stock handling facilities to permit management control of all classes of stock and enable disease control. These improvements will boost the competitiveness of Paraguay's beef production and assist in expanding the country's exports.