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.
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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!