LIVESTOCK III

closed

The Third Livestock Project will provide technical and financial assistance for about one year to continue Uruguay's livestock development program. Support for such a short term program is proposed to allow time for the government to make further progress in resolving remaining sector policy issues, especially in the meat packing industry. Basic investments for ranch development plans (pasture development, fencing and water supplies) and small purchases of livestock would represent about 79 percent of the estimated cost of the new project. Incremental working capital, technical services and contingencies would account for the remaining 21 percent. About 3,000 ranchers are expected to participate in the project, 2,000 ranchers within the "Plan Agropecuario", under which the size of each borrower's ranch cannot exceed 2,500 hectares, and 1,000 ranchers outside of it, with no limitation as to size of individual ranches. Ranchers under the "Plan Agropecuario" will account for about 70 percent of total on-ranch investment.