1 / 28

Entry points for extending the frontiers of dairy value chains in Tanzania

Entry points for extending the frontiers of dairy value chains in Tanzania. A. Omore. EXTRAPOLATE Workshop 05 Mar 2014, Zanzibar, Tanzania. More Milk in Tanzania Project. Four inter-related problems faced by resource-poor milk producers.

nessa
Download Presentation

Entry points for extending the frontiers of dairy value chains in Tanzania

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Entry points for extending the frontiers of dairy value chains in Tanzania A. Omore EXTRAPOLATE Workshop 05 Mar 2014, Zanzibar, Tanzania

  2. More Milk in Tanzania Project Four inter-related problems faced by resource-poor milk producers • Dominant direct sales of small volumes by smallholder producers that preclude economies of scale • Credit facilities for basic inputs and services or working capital are lacking. This discourages investment to improve productivity • Lack of appropriate organizational models for pre-commercial producers(complexcooperative models and technology-driven solutions have largely failed) • Seasonality of rainfall and related effects are strong

  3. More Milk in Tanzania Project Four inter-related problems faced by resource-poor milk producers • Dominant direct sales of small volumes by smallholder producers that preclude economies of scale • Credit facilities for basic inputs and services or working capital are lacking. This discourages investment to improve productivity • Lack of appropriate organizational models for pre-commercial producers (complex cooperative models and technology-driven solutions have largely failed) • Seasonality of rainfall and related effects are strong Women participate more in milk related tasks

  4. More Milk in Tanzania Project Four inter-related problems faced by resource-poor milk producers • Dominant direct sales of small volumes by smallholder producers that preclude economies of scale • Credit facilities for basic inputs and services or working capital are lacking. This discourages investment to improve productivity • Lack of appropriate organizational models for pre-commercial producers (complex cooperative models and technology-driven solutions have largely failed) • Seasonality of rainfall and related effects are strong Milk processing in Tanzania has been declining since 1990

  5. More Milk in Tanzania Project Four inter-related problems faced by resource-poor milk producers • Dominant direct sales of small volumes by smallholder producers that preclude economies of scale • Credit facilities for basic inputs and services or working capital are lacking. This discourages investment to improve productivity • Lack of appropriate organizational models for pre-commercial producers (complex cooperative models and technology-driven solutions have largely failed) • Seasonality of rainfall and related effects are strong

  6. More Milk in Tanzania Project Four inter-related problems faced by resource-poor milk producers • Dominant direct sales of small volumes by smallholder producers that preclude economies of scale • Credit facilities for basic inputs and services or working capital are lacking. This discourages investment to improve productivity • Lack of appropriate organizational models for pre-commercial producers (complex cooperative models and technology-driven solutions have largely failed) • Seasonality of rainfall and related effects are strong

  7. Huge seasonal fluctuation in milk supply from traditional herd

  8. More Milk in Tanzania Project Farmer groups are struggling in most places except in Tanga

  9. Tanzania Dairy (“MaziwaZaidi”) – Goals and Pathways over the next 10-12 Yrs • The dairy program has threeprinciple goals: • Smallholder farmers have reliable and consistent access to quality inputs and services in order to efficiently achieve high milk productivity; • Smallholder famers have access to reliable, well-coordinated, and efficient dairy products marketing arrangements with resultant improvement in household income and livelihoods; • Poor consumers have improved access to quality, safe, and nutritious dairy products at affordable prices to increase per capita consumption of the dairy products. • Long term impacts will be achieved through four main pathways: • Institutional innovations for reliable and consistent access to inputs and services; • Innovative strategies for consistent and reliable access to Artificial Insemination materials and services, forage, and water; • Generation of evidence for achieving impact at scale and influencing policy; • Innovative strategies for increasing the consumption of dairy products.

  10. R&D Focus in Tanzania Strong focus on pro-poor marginalised pre-commercial men and women Provide proof-of-concept on how marginalised groups can also be targeted successfully Generate evidence for influencing policy

  11. More Milk in Tanzania Project Objectives Goal: Inclusive growth and reduced poverty and vulnerability among dairy-dependent livelihoods in relevant rural areas in Tanzania Outcome: Rural poor are more income secure through enhanced access to demand-led dairy market business services and viable organisational options, and low-income consumers have better access to affordable milk.

  12. More Milk in Tanzania Project Contributing Objectives over 5 yrs • Develop scalable value chains approaches with improved organization and institutions serving resource-poor male and female smallholder dairy households • Generate and communicate evidence on business and organizational options for increasing participation of resource-poor male and female households in dairy value chains • Inform policy on appropriate role for pro-poor smallholder-based informal sector value chains in dairy sector development

  13. Key messages on identified entry points Validity of the need to focus attention on ‘growing’ the existing informal system of milk production (with zebu cattle) and marketing to extend the frontiers of commercial dairying Organizational models to achieve economies of scale for access to inputs and services required to unleash incentives for raised productivity to levels that will justify bulking This is riskier than classical approaches but more inclusive in ensuring wider impact on marginalised Policy support for pro-poor shift needed

  14. Identified field sites (+ target groups/typologies)

  15. Project sites

  16. Hubs for piloting in the Tanzania context Dairy Market Hubs (DMHs) with emphasis on improving access to inputs and services through business development services (BDS) and check-off arrangements: a) DMHs revolving around chilling plants or accessing them (if under-utilized) through transport arrangements that provide both outputs marketing and inputs and services through check-offs; b) DMHs revolving around check-offs for inputs and services provided through milk traders; and c) DMHs revolving around check-offs for inputs and services provided through cattle traders.

  17. Illustration of a hub for provision of inputs and services on credit without collective bulking and marketing Producers Inputs, $$ Inputs & services Milk, Cattle Check-off agreement BASIC Dairy Market Hub for Provision of Inputs and Services on Check-off Traders Milk Cattle Inputs & Service Providers (BDS) $$ Payment agreement

  18. Design of integrated R4D to extend the frontiers of dairy value chains to achieve wider impact in Tanzania • Addressing the whole value chain with downstream emphasis Intervention with development partner Value chain development team + research partners • Strategic Cross-cutting Platforms • Technology Generation (Feed, genetics, health • Market Innovation • Targeting & Impact (includes gender) Cross-cutting: M&E, communications, capacity building Consumers INTERVENTIONS TO SCALE OUT NATIONALLY

  19. Identified dairy policy issues in inputs and services ANIMAL HEALTH: a) Certification of para-vet practitioners is overly restricted by regulations

  20. Identified dairy policy issues in inputs and services GENETICS: a) Certification of artificial insemination (AI) technicians is too restricted (by the Veterinary Surgeons Act) for efficient delivery of services   b) The regulator of breeding services is also an active practitioner. What is the optimal public-private-partnership (PPP) for delivery of breeding services? c) Animal registration, recording and evaluation are administered by too many bodies d) Animal registration, performance recording and genetic evaluation are administered solely by a government agency with inadequate capacity to deliver on the service. What is the optimal PPP for this? e) Animal Breeding Bill needs to be submitted to Attorney General f) Brucellosis needs to be made a notifiable disease so testing and control  are made mandatory and publicly funded g) There is no information system capturing livestock identification, registration, recording for breeding improvement and traceability

  21. Identified dairy policy issues in inputs and services FEEDS: a) Compounded feed standards are variable and are based on recommendation of cattle with high genetic composition. Related technical question is how to develop recommendations that take into account genetic potential of cattle b) Feed quality is variable in spite of the standards i.e. poor enforcement of standards and lack of stakeholders participation c) Sourcing and importation of forage seeds are heavily controlled by the government thus restricting free flow d) Training and certification of small scale forage seed producers are currently restricted e) Certification of small scale compounded feed producers who are currently considered illegal (this restricts opportunities to grow markets and improve quality)

  22. Identified dairy policy issues in inputs and services VALUE CHAIN DEVELOPMENT: a) Lack of stakeholder controlled small-scale dairy traders’ and business providers’ associations to contribute to empowerment of their members

  23. Policy change cycle to address the constraints Disseminate best practices share and exchange information Identify drivers of policy change Agenda setting Update status of policies, procedures, regulations (ILRI) Monitoring and evaluation Data collection and analysis Analyze options for rationalization & harmonization Quantify impacts of policies Quantify impacts of Policies Implementation & Innovation Dialogue Identify impact pathways Facilitate national and regional dialogue Identify drivers of policy change

  24. DDF to play key role in dialogue Dairy Development Forum Secretariat: Tanzania Dairy Board Stakeholder organisations and projects MilkIT & More MIlkiT LoL Others Heifer-Tanz SNV MVIWATA

  25. Space for nurturing multi-stakeholder processes to address challenges on how to: DAIRY DEVELOPMENT FORUM Grow the dairy herd address feeds scarcity Fill gaps in dairy technology & agribusiness skills / capacity Working groups Working groups District Platform District Platform District Platform District Platform FARMER ASSOCIATIONS AT VILLAGE LEVEL Regional Platform Regional Platform

  26. Proposed interventions from the last DDF • Policy and Regulations • Commitment and speedy formulation of Inclusive breeding policy (MLFD, DDF, TDB) • promote breeder association to do recording • Constructive lobbying by stakeholders • Farmer Organizations • Prioritize dairy production regions/do an inventory of farmer groups (TAMPRODA can do this) • Analysis of strengths, weaknesses, opportunities and threats (SWOT) of existing groups (TAMPRODA can do this) • Create an inventory of existing techniques/tools and translate English manual to Swahili to increase awareness (Heifer International can do this) • Policy group to develop less cumbersome registration procedures • Need to develop and know rules guiding the sector (breeding policy) Task force group members to document what they will do and report at the next DDF

  27. Candidate Scopes • Contribution of dairy to household income • Contribution of dairy income to household livelihoods • Contribution of improved access to inputs and services (dairy market hubs) to household income / livelihoods

  28. Thank You

More Related