The Role of Women Entrepreneurs in Dairy Value Chain Activities:  Examples from Ethiopian women farmers and Ruth and Hirut Milk Production & Milk Processing PLC
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The Role of Women Entrepreneurs in Dairy Value Chain Activities: Examples from Ethiopian women farmers and Ruth and Hirut Milk Production & Milk Processing PLC

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Presented by Kassahun Belay at the Gender and Market Oriented Agriculture (AgriGender 2011) Workshop, Addis Ababa, Ethiopia, 31st January–2nd February 2011

Presented by Kassahun Belay at the Gender and Market Oriented Agriculture (AgriGender 2011) Workshop, Addis Ababa, Ethiopia, 31st January–2nd February 2011

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    The Role of Women Entrepreneurs in Dairy Value Chain Activities:  Examples from Ethiopian women farmers and Ruth and Hirut Milk Production & Milk Processing PLC The Role of Women Entrepreneurs in Dairy Value Chain Activities: Examples from Ethiopian women farmers and Ruth and Hirut Milk Production & Milk Processing PLC Presentation Transcript

    • The Role of Women Entrepreneurs in Dairy Value Chain Activities Examples from Ethiopian women farmers and Ruth and Hirut Milk Production & Milk Processing PLC Kassahun Belay Ethiopia Dairy Development Project Presented at the Gender and Market Oriented Agriculture (AgriGender 2011) Workshop, Addis Ababa, Ethiopia 31 st January-2 nd February 2011
    • Overview
      • Introduction
      • Ethiopian women in Dairy
      • Study of Ruth and Hirut Milk Production and Processing PLC
      • Study Findings
      • Discussion
      • Conclusion
    • Introduction
      • Ruth & Hirut Milk Production and Processing PLC (RHMPP) and Land O’Lakes’ Ethiopia Dairy Development Project began collaboration in 2007
      • Land O’Lakes provides technical assistance on improved milk production, milk quality, and cooperative development to farmers in region.
      • This presentation will outline the role women entrepreneurs play in the dairy sector. Today’s discussion will:
        • Review the consistent, emerging, and diminishing challenges women are experiencing,
        • Discuss opportunities for increased or more efficient inclusion of women
        • Provide recommendations to aid in meeting these opportunities.
    • Introduction – Project Objectives
      • Ruth and Hirut MPP PLC and EDDP collaborate to:
        • Transition subsistence level dairy farms into dairy enterprises managed as a business
        • Increase dairy’s returns to the household and to create a viable income source for households
        • Provide local communities with different solutions to management, organization and business problems primarily through dairy cooperative development
        • Identify alternative enterprise initiatives which support overall growth of the local dairy value chain
    • Women in Dairy - Challenges
      • In Ethiopia, cultural norms prevent women from being primary owner of any valuable asset (land, livestock, buildings).
      • Globally and in Ethiopia, lack of finance for both start-up and expansion is an significant challenge women entrepreneurs face.
        • RHMPP experienced challenges in securing line of credit. Local financial institutions require collateral valued 25 – 100% the loan value
      • Women often rely on their husbands or fathers to sign for a loan and are not in full control of the finances
    • Women in Dairy - Challenges
      • Social pressure against women entrepreneurs can be great.
        • RHMPP’s founder experienced negative responses when she attempted to use legally acquired land for her dairy business
      • Ethiopian women often lack technical skills and access to training needed to move beyond subsistence dairy farming or dairy-product marketing beyond the informal sector
      • Technology transfer became major challenge
        • Lack of access to artificial insemination (AI) and veterinary services hinder women’s advancement in the dairy sector
    • Ruth & Hirut Milk Production & Processing PLC
      • Ruth and Hirut Milk Production and Milk Processing PLC
        • Woman owned & operated dairy farm & processing plant
        • 80 kilometers from Addis Ababa in Angolele Natera woreda, North Shewa zone, Amhara region
      • RHMPP initiated payment for quality milk system
          • Initial price/L = 2 .50 Eth.Birr
          • Quality price/L = 5.60 Eth.Birr
    • RHMPP Continued
      • RHMPP has mission to integrate female dairy farmers into the formal dairy sector
        • 110 women (68 male) dairy farmers within 5 km radius supply RHMPP daily
        • Prior to RHMPP’s establishment, no female dairy farmers supplied the formal milk sector
      • November 2010 Land O’Lakes carried out targeted study to identify impact of RHMPP activities at household and community level
    • Study Findings
      • RHMPP reports
        • Women are more motivated to increase production and improve quality.
        • Peer-pressure among beneficiary milk producers increased farmer’s desire to replicate a model farm.
        • Women continue to face restricted access to service markets
        • Attempts at forming women-led dairy cooperatives have failed in the project area due to local resistance.
    • Study Findings Continued
      • Integrating a specific gender approach increased female participation and adoption rates.
        • When only one person per farm is trained there is a lack of information exchange between the direct trainee, often the husband, and the animal caretaker, often the wife.
        • Conducting animal husbandry trainings to both heads of household increases adoption rates.
      • Increases women’s control over dairy farming resources improves overall farm productivity
      • Home to home visit to women farmers encouraged them to be dairy actors
    • Study Findings-out comes
      • Addressing market linkages and inefficiencies
      • For example, RHMPP provided consistent demand for milk produced by local small-holders.
      • RHMPP guaranteed the purchase of local milk because they were able to process and effectively ‘clean’ the milk and extend its shelf life
      • Creating awareness and imparting skills on both husband and wife :
      • to address resource and power disparities within a household.
      • to transfer technical knowledge equally,
      • Improved quality of inputs used, resulted in higher yields, a better quality of the product and improved earnings for all dairy value chain actors .
    • Recommendations
      • Important to analyze traditional gender roles and division of household and farm labour:
        • “ the sky crashes down when half the population is ignored or overburdened’’
      • Extension activities must be designed in consideration of women’s labour burden:
        • Post-training home visits and peer to peer home visits accommodate women’s labour demands
        • Training both heads of household together increases household adoption rates
    • Recommendations Continued
      • Increasing production is not enough
        • Barriers to lack of access to finance must be addressed. Example: work with MFIs to recalculate loans if no collateral available
        • Negative gender-biased social norms can hinder women’s economic empowerment as much as negative policies.
        • In this situation price differentiation has played “a vital role in addressing the social, cultural and economic constraints faced by women”
        • Women entrepreneurs attempt to organize farmers in to dairy cooperatives should be encouraged
    • Thank you
      • Give a man a fish and he’ll eat for a day. Teach a man to fish and he’ll feed himself forever.
      • Teach a woman to fish, and she’ll feed herself, her family, her neighbors and her guests.
      • Give a woman a cow and teach her to care for it, and everyone gets fed, schools and clinics get built, government becomes more accountable, and the cow doesn’t do too badly either!
      • - Land O’Lakes Uganda