Transcript Document
Building Strong
Stakeholder Support for
Collaborative Actions:
The Case of the East Africa Dairy
Development (EADD) Project
A presentation at the 4th Multi-Stakeholder Platform meeting, 15-17 Oct.2013
Ottawa, Canada.
By Saeed A. Bancie
The Context of dairy in
East Africa
• 115 million people in East Africa - over half subsisting on
less than $1 per day in an agricultural economy of smallscale, resource-poor farm communities.
• There are over 10 Million smallholder dairy farmers in
East Africa using largely subsistence methods of animal
husbandry.
• Families are caught in a downward poverty spiral,
characterized by declining food intake, poor education and
health services, degraded and disappearing grasslands for
their herds, and little-to-no access to commercial market
systems.
• Women are responsible for up to 80% of food produced in
Africa. They frequently have the fewest resources and are
particularly affected by economic poverty.
Context (cont’d)
Traditional Dairy Market Model
Why Dairy/Why
East Africa?
• Heifer International had implemented small-scale
dairy projects in EA for several years, with great
success.
Uganda
• The small-scale projects reached only a limited
number of small-holders.
• Heifer decided to scale-up its dairy value chains
model, in keeping with the organization’s development
strategy to implement “bigger and faster” projects, to
achieve greater impact on a critical mass.
• Recognizing that this could not be achieved by a single
organization, Heifer decided to foment public-private
sector-NGO partnerships to support the
establishment of dairy value chains in rural
communities.
Rwanda
• EA is an agricultural economy of small-scale,
resource-poor farm communities with 115 million
people, half of them subsisting on less than $1 per
day.
4
Where?
Region produces
est. 8 billion litres of milk
p.a
5
http://ergodd.zoo.ox.ac.uk/livatl2/bvmilkprodcapita.htm
EADD’S Impact goal
The lives of 179,000 families—or approximately one million
people—are transformed by doubling household dairy income
by year 10 through integrated interventions in dairy
production, market-access and knowledge application.
Our geographic scope
Who we work with
45,000
45,000
110,000 farmers in Kenya
110,0
00120,000
24,000
24,306
45,000 farmers in Uganda
24,000 farmers in Rwanda
At least 30% women
Target
At Dec 2012
Approaches: Market access Model
Value-Chain/ Hub Model
The dairy value chain
Regional Enabling Environment
(Quality standards & trade policy)
Export
market
Informal/Lo
w end
market
Local / National Enabling
Environment
Consumers
(High end)
Consumers
(Low end)
Milk kiosk/
canteens
Retail
Outlets
Processors
Informal
traders
DFBA (CP hubs)
Support markets
• BDS services (Transport,
AI, extension, etc)
• Financial
Producers Organizations
(DMGs/DIGs/FCs)
Input Suppliers
Formal/High
end market
The Solution – Transforming
Chilling Plants to Business Hubs
Farmers
OTHER RELATED
MEs
HARDWARE SUPPLIERS
CHILLING HUB
VILLAGE
BANKS
FIELD DAYS
TESTING
AI &
EXTENSION
FEED SUPPLY
TRANSPORTERS
How Farmers pay for Services
through the Business Hub
HARDWARE SUPPLIERS
CHILLING HUB
AI & EXTENSION
FEED SUPPLY
SERVICES
& INPUTS
TRANSPORTERS
FARMERS
VILLAGE BANK
Emerging Rural Economies
(Kenya)
Rural Village Banks jointly
owned by farmer
shareholders, being
established
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New Prosperity in Rural
Africa!
Tanykina Dairy
•Milk Chilling & agrovet, AI & FSA
•35,000 litres/day
•5,850 farmers
• profitable
Siongiroi Dairy Plant
•Milk Chilling
•28,000 litres/day
•5,034 farmers
• profitable
Over 180,000
Liters Daily
Olkalou Dairy
Ltd.
Kabiyet Dairy
Plant
•Chilling & AI & Agrovet
•32,000 litres/day
•Milk Chilling
•21,000 litres/day
•3,296 farmers
• profitable
Over 83,000 farmers
$15.0m p.a.
15
Major Accomplishments
• Acceptance of dairy as viable
business enterprise
• Increased milk production per
household and per cow
• Greater access to secure dairy
markets
• Financial benefits to complementary
service providers (transporters,
fodder providers, AI, agrovet)
Major Accomplishments
EADD Quality Interventions
• EADD has partnered with various stakeholders to
address raw milk quality in the region including
– New KCC and Nestle EAR in Kenya
– Sameer and Inyange in Uganda and Rwanda
– Statutory bodies such as Kenya Dairy Board and Uganda’s
Dairy Development Authority.
• To-date 190 Chilling Plant staff have been trained in
milk hygiene and testing.
• Tetra Pak EA financed a quality best-practice protocol
at Metkei CP (Kenya).
• Nestle EAR carried out audits at New KCC and Sameer
in Uganda.
EADD Quality Interventions
• A system of payment for milk quality has been variously
proposed but yet to gain any traction with processors.
• Quality-based pricing standards and incentives locked
into contracts between CPs & processors will speed
farmer up-take of feed, breed and hygiene processes and
increase self-regulation of milk quality by farmers.
• Notably, bacteria count in Rwanda have reduced from
48 million in 2009 to a maximum of 14 million in 2010.
• Milk rejection at CPs in Kenya has reduced by 50%;
Uganda by 50% and Rwanda by 16% since the project
started in 2008
Achievement at farm
level
Transitioning from local to exotic breeds…
Economic benefits and
spillover
• Businesses contracted have substantially
increased their incomes
– Agro-vets, feed suppliers, AIs, food stores
– Check-off system helps to drive these
businesses
– A few established feed, drug shops
negatively affected by competition
• Farmers employ more workers, nearly all
male
– USH 50,000 – 80,000 per month in Uganda
Achievement at dfba level
• Establishment of alternative milk market for dairy
farmers
• Improved small farmers’ position in the dairy value
chain
• Improved business management capacity of hubs
since MTE
• Financial viability of some hubs
• Establishment of financial services and check-off
credit
Projected stage distribution in
December 20132010 2011 2012 2013*
At current growth rates,
10 hubs will be in stage 5 and 22 hubs
in stage 4 by December 2013
39
34
31
28
27
23
22
16
14
13
10
10
8
7
4
5
1
Stage 1
Stage 2
Stage 3
0
Stage 4
0
0
Stage 5
Challenges-profitability
of dairy farming
• Managing seasonal fluctuations (affects productivity and
price)
• Inadequate access to extension services
• Economic constraints to adoption of improved practices
• Lack of gender parity in decision making and access to
credit
• Limited capacity to mitigate climate change
• Limited financial incentive (at farm level) for shareholding
Challenges-performance
at DFBA level
Challenges
• Governance (transparency, trust, representation, communication,
clarity of roles and responsibilities)
• “Extension is key” – yet extension services are not consistently
prioritized
• Limited profit margin of milk bulking, limited negotiating power
with private processors
• Limited business management capacity– need for further
professionalization among boards and staff
• Few women in leadership roles
• Limited capacity of hub FSAs to provide dairy investment loans
Asanteni
Sana!