A new approach to livestock service delivery

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Presented by Christie Peacock (Founder and Chairman Sidai Africa Ltd) at an ILRI Livestock Live Talk, Addis Ababa, 5 September 2013

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A new approach to livestock service delivery

  1. 1. A new approach to livestock service delivery Dr Christie Peacock Founder and Chairman Sidai Africa Ltd ILRI Livestock Live Talk, Addis Ababa, 5 September 2013
  2. 2. The problem for livestock farmers in Africa Lackofaccessto: qualityinputs effectiveadvice reliablemarkets Lackofaccessto: qualityinputs effectiveadvice reliablemarkets
  3. 3. Post 1990’s decline in govt vet service in Kenya - Two worlds Dairy/poultry areas Unregulated private sector anything goes Animal production medicalised Arid and semi arid areas Short-term donor- funded subsidies distort local market
  4. 4. Post 1990’s decline in govt vet service in Kenya - Two worlds Dairy/poultry areas Unregulated private sector anything goes Animal production medicalised Arid and semi arid areas Short-term donor- funded subsidies distort local market
  5. 5. The future of livestock service delivery? PRIVATE GOODS • Feeding, breeding, reproduction, housing etc • Routine vaccination • Herd Health • Clinical health care • Market information • R&D new products PUBLIC GOODS • National disease surveillance and eradication of trans- boundary diseases • Regulation of feed, drug, semen input markets and service providers • Food hygiene & public health • Infrastructure roads, crushes etc • Research on goods not researched by private sector
  6. 6. Most drugs below manufacturing standard Drug type % below manufacturing standard - Cameroon % below manufacturing standard - Senegal Trypanocidal drugs 100 70 Anthelmintics 52 13 Antibiotics 71 93 Average 69 67 (43-61%)
  7. 7. Toxic cycle of drug misuse & farmers wasted money Poor quality manufacturing Poor transport and handling Inaccurate diagnosis Incorrect dosage & administration Poor outcomes & drug resistance Incorrect product
  8. 8. Toxic cycle of drug misuse & farmers wasted money Poor quality manufacturing Poor transport and handling Inaccurate diagnosis Incorrect dosage & administration Poor outcomes & drug resistance Good quality manufacturing Incorrect product
  9. 9. Drug resistance e.g. Trypanocidal drugs Zambia • T. congolense - Diminazene resistance increase from 13% in 1996 63% 2003 Delespaux et al (2008) Kenya & Somalia • T. vivax resistant to all drugs except Diminazene aceturate Schonefield, Rottcher & Moloo (1987)
  10. 10. Unregulated, unfair competition force private vets to become input shop keepers competing on price alone Sidai creates a framework of incentives to support professionals to do the right thing
  11. 11. A solution- Sidai Africa Ltd Sidai Africa Ltd is a social business offering: quality veterinary and livestock services through a network of branded franchises owned by qualified personnel Focus on • preventing disease • financial viability
  12. 12. Sidai’s business format franchising model Franchise Franchise Franchise OPEN NEW VALUE CHAINS •Livestock traders •Food processors •Supermarkets FRANCHISEE VALUE PROPOSITION •Source and purchase products •Branding & marketing •Business training & IT •Technical training, diagnostics • Access to competitive finance •New business opportunities e.g ECF vaccine FARMERS FARMERSPASTORALISTS
  13. 13. Why franchising ? • Quality assured products and services • Offers farmers choice -> Drives out malpractice Quality-assured services • Ease of entry `Business in a Box’ • Greater chance of business success Scalable and durable • Increased buying power of the network • Opens up marketing and processing opportunities Economies of scale
  14. 14. Sidai footprint after 18 months Somali Pastoral area North East Dairy area North Rift Valley Maasai pastoral Narok & Kajiado Eastern 43 Franchises & 6 distribution Hubs ~60,000 customers
  15. 15. Sidai: a brand farmers can trust
  16. 16. Revolutionise customer service From this......
  17. 17. To this......
  18. 18. Open farmer-friendly, information-rich interior, farmers meet qualified people Transforming retail space into a learning environment Laboratory Prices displayed
  19. 19. Dr Tiony, Kapsabet franchisee “Farmers like the new layout and heard about Sidai on the radio, I have doubled my customer numbers in 6 months. I now offer vaccination and farmer training services. Soon I will have a small diagnostic lab” Branded outlet Qualified staff
  20. 20. Improving current agro-vet practice Current practice Sidai practice Treat symptoms Prevent disease through good feeding, management and routine vaccination (Herd Health Packages) Poor quality products Good quality products Remote diagnosis Accurate diagnosis using mini labs, PAD tests etc No farmer training Regular farmer training and support to co-ops, groups etc Selling on price Adding value to product through training and advice Transactional relationship with farmer Lifetime relationship with farmer
  21. 21. Taking services onto farms - not just a shop Building a self-financing ethical extension service Farmer training AI, Vaccination, Diagnostics, Insurance Herd Health Packages
  22. 22. Sidai: GOK-appointed ECF-ITM Distributor Sidai franchisees trained as vaccinators Sidai vaccinating in three regions GALVmed partner
  23. 23. Sidai Franchise Kitengela • Started with one livestock technician & motorbike • Now wants to add 2 extension agents as they are driving business growth
  24. 24. PRIVATE MILK HUB MILK PROCESSOR Pays farmers after deducting cost of inputs SIDAI FRANCHISE Supplies inputs and services MILK COOLER Farmers deliver milk Payments through check-off system
  25. 25. Supermarket partnerships Sidai franchises in up-country supermarkets Potential for sourcing products from Sidai customers
  26. 26. Acute problems in Northern Kenya • 2.6m Cattle • 7.8m Goats • 4.7m Sheep, 1.7m Camels No vets in private practice Drought prone, poor infrastructure, insecurity Al-Shabaab • Livestock mortality normal 20-30% epidemic rates of up to 100%
  27. 27. Bringing sustainable veterinary services to remote communities Shukri Selase Sidai franchise Garba-Tula, North East Kenya Sidai’s vision for the North A vibrant, professionally supported, pastoral economy • Effective, co-ordinated, financially viable network distributing products, information and opening access to markets • Stable professional livelihoods Sidai – Garissa market Sukri Selase – Sidai Garba Tula
  28. 28. Northern Kenyan 1990-2013 Humanitarian viewpoint interventions Livestock interventions • Donor-funded short-term poorly structured subsidies through GOK or NGOs • E.g. Free drugs, vaccines etc • Recently a few quasi commercial NGO interventions Impact on people & market • Psychological dependency on donor-funded support • Markets distorted/corrupted • Undermines local private sector leading to limited confidence in livelihoods from business alone • ‘Grasshopper’ professional staff not practising • Poor CAHW training • No effective supply/cold chain • High product prices • No commercial outlook
  29. 29. Adapting the Sidai model to ASAL areas Livestock Service Centres as distribution hubs 1/county Franchisees 10/county Sidai Appointed Agents 10/franchise Vaccine, Drug & feed supply chain Sidai-owned Cold chain Vaccines Solar Refrigerators Vaccine carriers
  30. 30. Opening up new markets Sidai can offer: • Better quality livestock • Traceability • Aggregation and consistency • Market information • Export linkages • Fodder market • ‘Fodder for livestock’
  31. 31. Challenges of building a fair & sustainable input supply chain • Short-termism – input suppliers & donors • Need sustainable pricing along the supply chain to support good practice at grassroots What is a fair margin for Shukri?
  32. 32. A fair & sustainable input supply chain Suppliers (Importers) Rural service- providers Farmers 40% -50%+ margin 10%-20% margin
  33. 33. A fair & sustainable input supply chain Suppliers (Importers) Rural service- providers Farmers 40% -50%+ margin 10%-20% margin
  34. 34. Research Partners Diagnostics for All, USA – PAD oestrus test University of Notre Dame, USA – PAD tests for drug quality
  35. 35. University of Notre Dame, USA Development of drug quality PAD tests 1. Swipe sample at orange line 2. Set in water to blue line 3. Remove from water when timer spot appears 4. Text picture to padsproj@nd.edu 1 minute 3 minutes 6 minutes 0 minutes 35
  36. 36. University of Notre Dame, USA Development of drug quality PAD tests 1. Swipe sample at orange line 2. Set in water to blue line 3. Remove from water when timer spot appears 4. Text picture to padsproj@nd.edu 1 minute 3 minutes 6 minutes 0 minutes 36
  37. 37. University of Notre Dame, USA Development of drug quality PAD tests 1. Swipe sample at orange line 2. Set in water to blue line 3. Remove from water when timer spot appears 4. Text picture to padsproj@nd.edu 1 minute 3 minutes 6 minutes 0 minutes 37
  38. 38. University of Notre Dame, USA Development of drug quality PAD tests 1. Swipe sample at orange line 2. Set in water to blue line 3. Remove from water when timer spot appears 4. Text picture to padsproj@nd.edu 1 minute 3 minutes 6 minutes 0 minutes 38
  39. 39. The future of livestock service delivery PRIVATE GOODS • Feeding, breeding, reproduction, housing etc • Routine vaccination & preventative & clinical health care • Market information • R&D new products PUBLIC GOODS • National disease surveillance and eradication of trans- boundary diseases • Regulation of feed, drug, semen input markets and service providers • Food hygiene & public health • Infrastructure roads, crushes etc • Research on goods not researched by private sector
  40. 40. The future of livestock service delivery PRIVATE GOODS • Feeding, breeding, reproduction, housing etc • Routine vaccination & preventative & clinical health care • Market information • R&D new products PUBLIC GOODS • National disease surveillance and eradication of trans- boundary diseases • Regulation of feed, drug, semen input markets and service providers • Food hygiene & public health • Infrastructure roads, crushes etc • Research on goods not researched by private sector PUBLIC-PRIVATE PARTNERSHIPS
  41. 41. Sidai’s Vision More secure and profitable rural livelihoods

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