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Feedlots – Is the excitement sustainable ?

Feedlots – Is the excitement sustainable ?. Mangwe Farmers Association Feedlot. Theory of Change. Inputs ( including finance )+ extension+Markets = productivity , incomes and employment Value chain financing = increased smallholder participation in value chains

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Feedlots – Is the excitement sustainable ?

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  1. Feedlots – Is the excitementsustainable? Mangwe Farmers AssociationFeedlot

  2. Theory of Change • Inputs (includingfinance)+extension+Markets = productivity, incomesandemployment • Value chain financing = increasedsmallholderparticipation in valuechains • bundled services is affordabletosmallholders Title

  3. Why the feedlot model? • Effects of climate change • Mitigating effects of drought – adaptation strategy • To enable farmers to produce with market in mind. How? • Alternative measure to maintain livestock herd/reduce attrition • Reduced pressure on grazing land • Facilitate feed supply credit • Facilitate access to markets • Access to extension and GAP Title

  4. Who is Involved Title

  5. Baselines Title

  6. Emerging results Title

  7. Other indicators • 226 MT of feeds sold to the feedlot • $78,000 sales returns to the feed manufacture • 10 additional lots by end of this month – 4 already done. Title

  8. Link to the Drought Mitigation project • Feedlots as distribution points for feeds provided by the DMP. • Business Hub for livestock farmers hence access to other services – including maintenance/survival feeds, AI and vet services • Provided easy way of recovering the funds and building a revolving fund • So far 400 farmers participating in DMP • 4000 bags of 50 kgs sold through Agro-dealers and feedlots • Sales in two districts: Mangwe - $21,000; Matobo - $5,500. • Working with DLDCs – 2 district committees; • LDCs - 45 Mangwe, 68 Matobo • Agro-dealers involved in distribution - 15 Matobo, Mangwe 11. Title

  9. Strength of Model • Driven by a lead firm • Commitment by Farmers • Good return in a short time at all levels • Touches on an issue that is critical to farmers. • Makes business sense to all involved. • Bundled services – 20 Makera trained paravets (including Govt staff) already providing services (AI – to address the supply side constraint) • Agro-dealers – low cost distribution network (avoids heavy infrastructure investments) • Good RoI to donors – slightly more than $15,000 spent by SNV on the pilots. Title

  10. Unknowns of the Model • What happens if feeds are provided on full cost? • Would it be profitable if cost of infrastructure improvement were to be factored in? • Why does the cost per animal vary from one lot to another? • Do we have enough information about the potential size of the market for beef….and how many feedlots will exhaust that market? • Is there potential to exhaust available animals in any one region and then what happens? • What happens if there are cheaper animals imported by firms? • Is the model applicable in all livestock areas? Comparative analysis? These are the key questions that the model should test out and clarify • Any more excitement?Too early to be excited! Title

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