Mrs Mary Munene: Strengthening Cooperatives to promote Trade and Market Access


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Mrs Mary Munene, Land O'Lakes International Development at the International Co-operative Alliance Global Conference in Cape Town, November 2013.

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  • Where we came from … Formed nearly 90 years ago as a dairy marketing cooperative by farmers representing 300 local Minnesota creameries
    The idea was … to give producers a stronger presence in the marketplace and greater influence over their own economic destiny
    From that success … we expanded into farm inputs in 1929 at the request of our members
    Diversity of Membership: Our producer member farms are spread across the United States and range in size
    Nutrition: Dairy is regarded as an essential, and delicious, part of a nutritious diet
    Size and Scale: Land O’ Lakes has almost 3,000 Dairy members who produce 5 billion liters of Milk each year
  • Land O’Lakes has 3,000 direct producer-members and 1,000 member-cooperatives that serve more than 300,000 agricultural producers.
    The parent company, Land O’Lakes, Inc., has several “business units.” IDD is a division of Land O’Lakes.
    Logos contain hyperlinks to websites.
  • Land O’Lakes has 3,000 direct producer-members and 1,000 member-cooperatives that serve more than 300,000 agricultural producers
  • Mrs Mary Munene: Strengthening Cooperatives to promote Trade and Market Access

    1. 1. Strengthening Cooperatives to Promote Trade and Market Access
    2. 2. Land O’Lakes’ Deep Cooperative and Rural Roots - Member-owned ‒ Organized in 1921 as a dairy marketing cooperative - Expanded into farm inputs ‒ Late 1920s, at our members’ request - Now a fully diversified agribusiness ‒ Business Development Services ‒ Innovation and Market Research ‒ Global Reach and Access to New Markets
    3. 3. Farm-to-Market Spectrum
    4. 4. The Bigger Picture Second-largest farmer-owned agricultural cooperative in the U.S. with $14 billion in annual sales in 2012. Ranks first in livestock feed and animal milk replacers in the U.S. Products and seed wholesale, pioneered the Answer Plot® approach and #1 in crop protection and seed wholesales. Dairy foods develops milk powder, whey, butter, cheese and other dairy products. Created the quarter-stick of butter. Part of Corporate Social Responsibility Arm. Operates like a not-forprofit. Over 30 year history.
    5. 5. Who We Are - Division of Land O’Lakes, Inc. founded in 1981 - Our mission is to help farmers around the world improve incomes and quality of life - Leverage corporate experience and expertise - Part of Land O’Lakes Corporate Social Responsibility Program - Programs primarily funded by USAID and USDA
    6. 6. Where We Work - Since 1981, we have implemented 275+ projects in 76 countries
    7. 7. 2012 Results and Impact − 100,000 rural households supported − 21,000 jobs created/strengthened − 42,000 farmers adopted new technologies − 64,000 received technical assistance/food security training − 40,000 use improved health/nutrition services − 61,000 producer group members supported − 22,000 rural households adapted to better natural resource management techniques
    8. 8. Promoting Access to Trade and Markets in Kenya and Uganda - USAID Kenya Dairy Sector Competitiveness Program (KDSCP) - 5-year, $9 million program that closed in 2013 and impacted 338,000 households by increasing smallholder incomes by over 200 percent - Cooperative Development Program (CDP) - - 5-year program funded by USAID Designed to help cooperatives become more competitive, increase their revenues and profits, and expand the benefits they provide to farmer-members Potential to expand to Rwanda and Bangladesh
    9. 9. KDSCP Implementation Approach
    10. 10. KDSCP Approach Led to Big Impact - Milk purchased from smallholders increased by 105 MT and $180 million - Volume of milk conforming to quality standards increased by 140 percent - Resourced $28 million in non-project funds - 135 producer organizations strengthened - More than 1,000 firms now providing new business services to producers - 155,000 producers received short-term training
    11. 11. CDP’s Focus on Vertical Integration - Key components: - Quality management Member relationship Governance: board and management interaction Patronage and member loyalty - In the next two years, the program expects to show: - 25 percent increase in household income for members of vertically integrated dairy cooperatives 25 percent increase in revenue for vertically integrated cooperatives
    12. 12. Dairy Development In Uganda and Kenya
    13. 13. Capacity Building Approach - Value addition and quality to final product - Link members to services - Ensure transparency for members, including record keeping and communications - Focus on strong, fair leadership and governance
    14. 14. Accessing Markets ‒ Support set-up of management information systems for efficiencies to deal with internal and external customers ‒ Capacity building of cooperatives on the law of contract and providing guidelines on developing win-win contracts ‒ Support in implementation of HACCP systems; achieve ISO certification in food and safety management makes it easy for them to get contracts
    15. 15. Accessing Markets ‒ Create and support forums for players to meet and make business deals, breeders shows, trade fairs, field days, exhibitions etc. ‒ Stimulate demand for products and services (e.g. - milk consumption campaigns) ‒ Product development and branding of products ‒ Support cooperatives to lobby government to create enabling business environment (e.g. -review of policies that stifle trade)
    16. 16. Learn More - Visit our Website: - Follow us on Facebook: alDevelopment - Follow us on Twitter: @LandOLakesIDD