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CRP 3.7 Dairy Value Chain Nicaragua and Honduras

Explore the potential of the dairy sector in Nicaragua and Honduras, aiming to boost economic growth, improve nutrition, and stabilize prices by enhancing the value chain through targeted interventions and partnerships.

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CRP 3.7 Dairy Value Chain Nicaragua and Honduras

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  1. CRP 3.7Dairy Value Chain Nicaragua and Honduras

  2. Dairy Sector Nicaragua/Honduras Generates more than 250,000 direct jobs, 1,600,000 indirect jobs, 2% GDP 70% of cattle farms produce milk, double purpose animals, 75% income through milk 50% of farms < 5 ha, extensive systems (> 1 head/ha), low productivity (3-5 kg/animal/day) Constraints in VC: high inter-seasonal variation milk production and low milk quality Many farmer asociations/cooperatives, but .. Milk collection centers essential part of VC (be it small-scale) Dairy processing plants variable sizes Dairy products: limited variation, consumers prefer low prices over quality Limited support from government, few incentives for innovations, intensification

  3. Why work on Dairy VC Nicaragua-Honduras Major sector, high potential but underdeveloped Increase cash flow for small producers Increase nutritional status (children) Reduce volatility of prices for dairy products Potential for high value dairy products Gradual trade liberalization: improve competitiveness, develop differentiated high value products and to gain market access both locally and with partner countries. Needs and opportunities for private investment Multiplier effects in dairy basins

  4. Planned activities Improved forage, pasture and silvopastoral systems for higher productivity and seasonal stability Improving milk quality/hygiene through better processing techniques Value chain analysis focusing on improving economic conditions at producer level Facilitating integration of informal stakeholders (small farmers, processors and traders) to more dynamic, differentiated markets Enhancement of partnerships around specific market opportunities for the establishment of business models Capacity building including technological innovation, farm management and linkage with service providers and industry Emphasizing the concept of eco-efficiency

  5. Present state Dairy VC work Nicaragua/Honduras Diagnostics: information available for a large part, possible need for some specific baseline work Production - Forages and feeding - on-going (> 10 years) Various germplasm materials integrated in farming systems of small and medium farmers, different systems and uses Impact on milk production (farm level) Training and dissemination (government agencies, NGOs) - in development Marketing aspects (niche markets, inclusion private sector) – in development Proposal development, in collaboration with CIAT-CC people (link to CRP 7), GIZ, local institutions, private sector Site selection – mainly depending on intervention sites (potential) partners, potential integration other sectors

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