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Abridged rapid value chain analyses training
 

Abridged rapid value chain analyses training

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Presented by Iddo Dror and Diana Brandes van Dorresteijn at the CRP Livestock and Fish Planning Meeting, Naivasha, Kenya, 24-28 March 2014

Presented by Iddo Dror and Diana Brandes van Dorresteijn at the CRP Livestock and Fish Planning Meeting, Naivasha, Kenya, 24-28 March 2014


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  • Intro – background SPAC (Science and Partnerships Advisory Council)
  • Add “Maziwa Zaidi” in brackets to the title
  • Add “Maziwa Zaidi” in brackets to the title
  • Q: What do we know about the costs of production? What’s the cost of maintaining a purebred compared to a local bred?

Abridged rapid value chain analyses training Abridged rapid value chain analyses training Presentation Transcript

  • Iddo Dror, Diana Brandes – van Dorresteijn Abridged Rapid Value Chain Analyses Training CRP Livestock and Fish Planning Meeting, Naivasha, Kenya, 24-28 March 2014
  • Training Outline • Why think in terms of value chains? • How are value chains relevant for livestock? • How to represent a value chain? • Issues in value chain assessment(s) • Illustrating different results of value chain analysis: Tanzania 2
  • The CGIAR L&F research program operates in how many value chains? A. 7 B. 8 C. 9 7 8 9 0%0%0%
  • Which value chain do you primarily work in? A. Bangladesh B. Burkina Faso C. Egypt D. Ethiopia E. India F. Nicaragua G. Tanzania H. Uganda I. Vietnam Bangladesh Burkina Faso EgyptEthiopia IndiaN icaraguaTanzania UgandaVietnam 0% 0% 0% 0%0%0%0%0%0%
  • What is your background? A. Economist B. Value Chain Coordinator C. Animal Health/Breeding/Feeding Specialist D. Cross practice Specialist Econom ist Value Chain Coordinator Anim alHealth/Breedin... Crosspractice Specialist 0% 0%0%0%
  • 6 Role of Livestock in Developing Countries • > 40% total agricultural GDP • 70% of world’s livestock (18.5 billion “head”) • One billion people earning <$2 a day depend on livestock: 600 million in South Asia; 300 million in sub-Saharan Africa • Provides food for >830 million food-insecure people: many poor have little access to nutritious animal-source foods • Small-scale mixed crop-livestock farmers offer opportunities to prevent disease outbreaks, close yield gaps etc. Source: Better Lives through Livestock, ILRI Strategy 2013-2022, ILRI, Nairobi and 2000 – 2030 figures, FAO, 2011.
  • Value chains for Livestock Development Using a value chain framework can help better evaluate smallholder livestock systems to: • Understand the poverty implications of the value chains • Design, prioritize policy interventions and to assess the impact of technology decisions on livestock systems • Formulate (and measure impact) of technological, marketing and organizational innovations • Evaluate, capture and learn from the overall value chain performance and its actors • Promote a holistic approach 7
  • A piecemeal traditional approach to agricultural interventions can be defined as…. A. Breaking a complex task into several smaller pieces so that various teams can work on all parts of the value chain in parallel B. Working on some parts of the value chain in a single country but not on others C. A traditional manner of preparing meals into smaller parts D. Working on all parts of the value chain in a single country by dividing work into pieces Breakingacom plextask... W orkingon som e partso... A traditionalm annerof... W orkingon allpartsof... 0% 0%0%0%
  • Inputs & Services Production Processing Marketing Consumers Inputs & Services Production Processing Marketing Consumers ...in Country A Inputs & Services Production Processing Marketing Consumers Inputs & Services Production Processing Marketing Consumers ...in Country D ...in Country C ...in Country B 9 Source: Tom Randolph, referred to in CRP L&F proposal, 2012 Piecemeal traditional approach to agricultural interventions
  • Feed Medicines Services Breeding and intermediate rearing animals +/- Markets +/-Middlemen Farms - many types Manure, waste and by products Other food and consumer products Milk, Eggs, wool/ fiber Manure, waste and by products Meat +/- Markets +/- Middlemen Consumer Retailer Wholesaler +/-Markets +/-Middlemen Abattoirs +/-Processors Animals +/- Markets +/- Middlemen +/-Markets +/-Middlemen Baker, 2007: “A value chain is the set of actors, transactions, information flows, institutions that enable value to be delivered to the customer.” Source: Tom Randolph, referred to in CRP L& F proposal, 2012 A visualization
  • How does the Livestock and Fish Research value chain approach differ from the traditional “piece meal” approach? A. The program adopts an integrated “solution- driven research with development” approach by working together with key partners and stakeholders B. The program takes a holistic approach towards implementing value chain interventions C. Crosscutting areas like Knowledge Management, Communications, Partnership and Capacity Development play prominent roles in the global value chains D. All of the above The program adoptsan i... The program takesa holis... Crosscutting areaslike ... Allofthe above 0% 0%0%0%
  • Livestock & Fish research interventions addresses value chain holistically: Strategic cross-cutting areas such as KM/Comms, Partnership and Capacity Development Technology Generation Market Innovation Targeting, Gender, Learning and Impact Consumers Value chain development team + research partners GLOBAL RESEARCH PUBLIC GOODS INTERVENTIONS TO SCALE OUT REGIONALLY Major intervention with development partners 12 Policy Source: Tom Randolph, referred to in CRP L&F proposal, 2012 Value chain analysis approach: Research for Development
  • Small Group Exercise 13 Briefly discuss what the gaps are in our “holistic” value chain approach (5-10 min.) and draw out (5-10 min.) the main elements that need to be considered in a (dairy) value chain mapping
  • Three levels of value chain mapping Understand the context in which the system operates Understand how the different business links function together as a system Identify and assess the relationship, leverage points, capacities and resources of partners including support services and stakeholders 14Source: Lundy, M. and others. LINK Methodology. A Participatory Guide to Business Models that link Smallholders to Markets, 2012 Purpose: • Identify value chain actors, services and enablers; main market channels (relative importance, requirements, geographical spread); visualize linkages; demonstrate interdependencies
  • Level one: Core Processes Source: Lundy, M. and others. LINK Methodology. A Participatory Guide to Business Models that link Smallholders to Markets, 2012 15
  • Level two: Organizational & partner network Incl. support services & other stakeholders Source: Lundy, M. and others. LINK Methodology. A Participatory Guide to Business Models that link Smallholders to Markets. 2012 16
  • Level three: Institutional landscaping Source: Lundy, M. and others. LINK Methodology. A Participatory Guide to Business Models that link Smallholders to Markets, 2012 17
  • Most important issues to consider in value chain analysis • Governance, formal and informal power structures, political economy • Value chain upgrading opportunities to create job opportunities and create incomes, organization and business development • Favorable environment for (investment in) innovation • Measuring impact of overall chain performance • Local versus global-oriented value chains 18
  • Which of these issues do you consider the most important? A. Governance and Power B. VC upgrading opportunities C. Enabling environment investment in innovation D. Measuring Impact E. Local versus Global VC Governance and Pow er VC upgradingopportunities Enablingenvironm enti... M easuringIm pact LocalversusGlobalVC 0% 0%0%0%0%
  • Value chain analysis – tools, techniques Value chain analyses are more than pretty pictures or maps. What else would it include? • Individual surveys of value chain stakeholders • Using sampling/detailed questionnaires, group interviews to identify practices, costs and prices • Using statistical tools to extract (data) trends • Partner scoping studies 20
  • • Reliable value chain mapping: geographical mapping of chain actors and marketing channels • Solid Market analysis: quantify product and information flows, prices and costs along the chain • Value creation: quantify and analyze value created through,- and along the chain • Sound models for value chain analysis: to understand contribution of various factors in value creation and chain participation • Constraints and opportunities identification • Policy and business recommendations formulated 21 Results from value chain mapping and analysis
  • Illustrating different results of value chain analysis Case from Tanzania
  • 23 Case: Tanzania Dairy “Maziwa Zaidi”
  • Goals (10-12 years) Three principle 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 24
  • Impact Pathways (10-12 years) Long term impacts 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 25
  • Project sites 26
  • Producers Households outside village Restaurants outside village Milk vendors Collectioncenters Households in village Restaurants in village Auction market in & outside village Agro- vet shops outside village Mobile agro-vets Agro-vet shop in urban centres 1 6 2 5 4 3 Government/Research institution (AI, Breeding management, vaccines) Processors <--------------------------------------------Mostly commercial / intensive & semi-intensive producers----------------------------------> <---- Mostly pre-commercial/extensive producers producers------> Key: 1-6 = channels in order of preference by producers across 8 typical villages in Morogoro and Tanga. These also reflect decreasing price gradient that ranges from TSh 1000/liter for direct sales down to TSh 300/liter for sales to vendors collection centers. Dairy Value Chains in Tanzania 27
  • Milk processing in Tanzania has been declining since 1990 28 Milk Processing is declining
  • Huge seasonal fluctuation in milk supply from traditional herd 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 6500 7000 7500 8000 8500 9000 9500 10000 10500 11000 11500 12000 12500 13000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Volumeofmilk(litres/month) Month Milk collection by a small scale processor from traditional herd in Morogoro, 2009 Average/month Total supply 29
  • Reported Yields 30
  • Farmer groups are struggling in most places except in Tanga Performance of milk collection at Nnronga women dairy co-operative Society, Hai Kilimanjaro and CHAWAMU-Muheza Tanga (1994-2007) 0 50000 100000 150000 200000 250000 300000 350000 400000 450000 500000 550000 600000 650000 700000 750000 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Year VolumeofMilk(Litres) Nnronga CHAWAMU-Muheza 31
  • Four inter-related problems faced by resource-poor milk producers 1. Smallholders produce small volumes for direct sales: no economies of scale 2. Inadequate credit facilities for basic inputs/services/working capital: lack of investment opportunities to improve productivity 3. Lack of appropriate organizational models for pre-commercial producers (complex cooperative models and technology-driven solutions have largely failed) 4. Seasonality of rainfall and related effects on production are strong 32
  • What do you consider to be the most important constraints faced by resource-poor milk producers ? A. Production: No economies of scale B. Inadequate access to finance/credit C. Lack of organisation(s) D. Seasonality E. Policies F. Other Production:N o econom i.. Inadequate accessto fin... Lack oforganisation(s)Seasonality Policies O ther 0% 0% 0%0%0%0%
  • Distribution Channels 34 Milk marketing outlets (NBS, 2003) Milk Buyer % Neighbours 86.1 Local market 5.5 Secondary market 0.5 Processors 1.4 Large scale farms 0.2 Trader at farm 4.5 Other 1.7 TOTAL 100.0
  • Milk processing installation 1995-2000. (Total approx. 315,000 l/day) Processor name Installed capacity (litres/day) 1 Azam Dairy 3,000 2 Tommy Dairy (Hakifanyikazi) 15,000 3 Tan Dairies 15,000 4 Tanga Fresh Ltd 40,000 5 Ammy Brothers Ltd 2,000 6 Brookside (T) Ltd (Hakifanyikazi) 45,000 7 International Dairy Products 5,000 8 Mountain Green Dairy 1,500 9 Arusha Dairy Company 5,000 10 Kijimo Dairy Cooperative 1,000 11 Longido (Engiteng) 500 12 LITI Tengeru 500 13 Terrat (Engiteng) 500 14 Orkesumet (Engiteng) 500 15 Naberera (Engiteng) 1,000 16 Nronga Women 3,500 17 West Kilimamnjaro 1,000 18 Mboreni Women 1,000 19 Marukeni 1,000 20 Ng'uni Women 1,000 21 Kalali Women 1,000 22 Same (Engiteng) 500 23 Fukeni Mini Dairies 3,000 24 Kondiki Small Scale Dairy 1,200 25 Musoma Dairy 40,000 26 Utegi Plant (Ex TDL ) (Hakifanyikazi) 45,000 27 Makilagi SSDU 1,500 28 Baraki Sisters 3,000 29 Mara Milk 15,000 30 Mwanza Mini Dairy 3,000 31 Kagera Milk (KADEFA) 3,000 32 Kyaka Milk Plant 1,000 33 Del Food 1,000 34 Bukoba Market Milk Bar 500 35 Bukoba Milk Bar - Soko Kuu 500 36 Mutungi Milk Bar 800 37 Salari Milk Bar 800 38 Kashai Milk Bar 800 39 Kikulula Milk Processing Plant 1,000 40 Kayanga Milk Processing Plant 1,000 41 MUVIWANYA 1,000 42 SUA 3,000 43 Shambani Graduates 4000 44 New Tabora Dairies 16,000 45 ASAS Dairy 12,000 46 CEFA Njombe Milk Factory 10,000 47 Mbeya Maziwa 1,000 48 Vwawa Dairy Cooperative Society 900 49 Gondi Foods 600 Less than 5000 litres/day 5000-30,000 litres/day More than 40,000 litres/day Key 26 12 16 6 7 8 1 2 9 4 5 10 3 11131415 17 18 19 20 21 22 23 24 42 45 25272829 3031 32 32 33 34 35 36 37 38 39 40 41 43 4647 48 49 46 D.R.C Pemba Unguja LINDI RUKWA TABORA IRINGA MBEYA RUVUMA SINGIDA MOROGORO KIGOMA PWANI ARUSHA DODOMA SHINYANGA TANGA MARA KAGERA MANYARA MTWARA MWANZA MANYARA KILIMANJARO DAR ES SALAAM LakeTang a n yi k a La ke Nyasa INDIANOCEAN KENYA UGANDA RWANDA BURUNDI ZAMBIA MOZAMBIQUE Milk processing installation 1995-2000. (Total approx. 315,000 l/day) Processor name Installed capacity (litres/day) 1 Azam Dairy 3,000 2 Tommy Dairy (Hakifanyikazi) 15,000 3 Tan Dairies 15,000 4 Tanga Fresh Ltd 40,000 5 Ammy Brothers Ltd 2,000 6 Brookside (T) Ltd (Hakifanyikazi) 45,000 7 International Dairy Products 5,000 8 Mountain Green Dairy 1,500 9 Arusha Dairy Company 5,000 10 Kijimo Dairy Cooperative 1,000 11 Longido (Engiteng) 500 12 LITI Tengeru 500 13 Terrat (Engiteng) 500 14 Orkesumet (Engiteng) 500 15 Naberera (Engiteng) 1,000 16 Nronga Women 3,500 17 West Kilimamnjaro 1,000 18 Mboreni Women 1,000 19 Marukeni 1,000 20 Ng'uni Women 1,000 21 Kalali Women 1,000 22 Same (Engiteng) 500 23 Fukeni Mini Dairies 3,000 24 Kondiki Small Scale Dairy 1,200 25 Musoma Dairy 40,000 26 Utegi Plant (Ex TDL ) (Hakifanyikazi) 45,000 27 Makilagi SSDU 1,500 28 Baraki Sisters 3,000 29 Mara Milk 15,000 30 Mwanza Mini Dairy 3,000 31 Kagera Milk (KADEFA) 3,000 32 Kyaka Milk Plant 1,000 33 Del Food 1,000 34 Bukoba Market Milk Bar 500 35 Bukoba Milk Bar - Soko Kuu 500 36 Mutungi Milk Bar 800 37 Salari Milk Bar 800 38 Kashai Milk Bar 800 39 Kikulula Milk Processing Plant 1,000 40 Kayanga Milk Processing Plant 1,000 41 MUVIWANYA 1,000 42 SUA 3,000 43 Shambani Graduates 4000 44 New Tabora Dairies 16,000 45 ASAS Dairy 12,000 46 CEFA Njombe Milk Factory 10,000 47 Mbeya Maziwa 1,000 48 Vwawa Dairy Cooperative Society 900 49 Gondi Foods 600 Less than 5000 litres/day 5000-30,000 litres/day More than 40,000 litres/day Key 26 12 16 6 7 8 1 2 9 4 5 10 3 11131415 17 18 19 20 21 22 23 24 42 45 25272829 3031 32 32 33 34 35 36 37 38 39 40 41 43 4647 48 49 46 Less than 5000 litres/day 5000-30,000 litres/day More than 40,000 litres/day Key Less than 5000 litres/day 5000-30,000 litres/day More than 40,000 litres/day Less than 5000 litres/dayLess than 5000 litres/day 5000-30,000 litres/day5000-30,000 litres/day More than 40,000 litres/dayMore than 40,000 litres/day Key 26 12 16 6 7 8 1 2 9 4 5 10 3 11131415 17 18 19 20 21 22 23 24 42 45 25272829 3031 32 32 33 34 35 36 37 38 39 40 41 43 4647 48 49 46 26 12 16 6 7 8 1 2 9 4 5 10 3 11131415 17 18 19 20 21 22 23 24 42 45 25272829 3031 32 32 33 34 35 36 37 38 39 40 41 43 4647 48 49 46 D.R.C Pemba Unguja LINDI RUKWA TABORA IRINGA MBEYA RUVUMA SINGIDA MOROGORO KIGOMA PWANI ARUSHA DODOMA SHINYANGA TANGA MARA KAGERA MANYARA MTWARA MWANZA MANYARA KILIMANJARO DAR ES SALAAM LakeTang a n yi k a La ke Nyasa INDIANOCEAN KENYA UGANDA RWANDA BURUNDI ZAMBIA MOZAMBIQUE D.R.C Pemba Unguja LINDI RUKWA TABORA IRINGA MBEYA RUVUMA SINGIDA MOROGORO KIGOMA PWANI ARUSHA DODOMA SHINYANGA TANGA MARA KAGERA MANYARA MTWARA MWANZA MANYARA KILIMANJARO DAR ES SALAAM LakeTang a n yi k a La ke La k La ke Nyasyasyasa INDIANOCEAN KENYA UGANDA RWANDA BURUNDI ZAMBIA MOZAMBIQUE Milk processing installation 35
  • Gender: Women participation in milk related tasks 36
  • BREEDS • Dearth of artificial insemination technicians due to restrictive certification system • Unreformed sector (improved breeding bill not yet submitted) • Breeding regulator and practitioner are one and the same • Inadequate, disjointed service delivery, with different agencies overseeing animal registration, performance and genetic evaluation • Brucellosis is not listed as a notifiable disease so testing and control are neither mandatory nor publicly funded • No information systems to capture livestock identification, registration and performance for breed improvement and animal traceability programs FEEDS, HEALTH – WHAT ABOUT GENDER ? Policy constraints
  • Livestock & Fish research interventions addresses value chain holistically: Strategic cross-cutting areas such as KM/Comms, Partnership and Capacity Development Technology Generation Market Innovation Targeting, Gender, Learning and Impact Consumers Value chain development team + research partners GLOBAL RESEARCH PUBLIC GOODS INTERVENTIONS TO SCALE OUT REGIONALLY Major intervention with development partners 38 Policy Source: Tom Randolph, referred to in CRP L&F proposal, 2012 Value chain analysis approach: Research for Development
  • CGIAR is a global partnership that unites organizations engaged in research for a food secure future. The CGIAR Research Program on Livestock and Fish aims to increase the productivity of small-scale livestock and fish systems in sustainable ways, making meat, milk and fish more available and affordable across the developing world. CGIAR Research Program on Livestock and Fish livestockfish.cgiar.org