Progress on Micro-Franchise Pilot


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  • 1. Smallholder farmers account for majority of national production 2. Misaligned incentives for formal private sector to reach BoP 3. These include extremely weak value chains (Ahmed et al., 2009) 4. Which influences limited access to productivity enhancing inputs and markets 5. Informal or semi-formal collectors are therefore able to manipulate the market, reducing trust and milk quality 6. Government ineffective at improving practices (Jabbar, 2010) 7. Gender norms perpetuate negative pressures on HH quality of life. The impact of these factors is illustrated by the fact that the formal dairy sector continues to import 30% of its milk despite the domestic potential to fully meet existing processing capacity and growing urban market demand.
  • Progress on Micro-Franchise Pilot

    1. 1. Progress on Micro-franchise pilot Finn Brooks Family Foundation October 28, 2011
    2. 2. Bangladesh Dairy Value Chain Key Statistics 36,397 households reached 83% women 40% increase income Total savings greater than $70,000
    3. 3. Pilot Objectives <ul><li>Select and intensively support 50 micro-franchisees </li></ul><ul><li>Develop all components of the microfranchise shop networks, focusing on a small number of initial shops </li></ul><ul><li>Develop partnerships with a wide-range of formal sector service and product companies </li></ul><ul><li>Explore opportunities to expand shop product lines beyond the dairy sector </li></ul>
    4. 4. The microfranchise model progess 1. Market & Demand Creation 2. Franchise Operating Manual & Processes 3. Training and Certification 4. Information, Capacity Building & Education 5. Technology Platform PARTNERS CARE BANGLADESH (MASTER FRANCHISOR) AGRI SHOPS (MICRO FRANCHISEES) SMALLHOLDER FARMERS Output Market and Logistics Vet. Drug Companies AI Service Providers Seeds & Fertilizers Animal Feed companies Agricultural tools Financial Services
    5. 5. Input Shop 1 Name of the shop: Information & Service center Name of the owner: Asmaul Husna Address: Kumorganj Bazar, Mithapukur, Rangpur Start at: March 2009 Baseline sales: 500 Current monthly sales: 26500 Sales growth: 16% Average patient per day: 15 Group coverage: 8 Services: Feed, Medicine, AI, Treatment, Info
    6. 6. Input Shop 2 Name of the shop: S I Medicine Corner Name of the owner: Shoriful Islam Address: Banglabazar, Shirajganj Start at: April 2008 Baseline sales:4000 Current monthly sales:17000 Sales growth: 11% Average patient per day:5 Group coverage: 8 Services: Feed, Medicine, AI, Treatment, Info
    7. 7. Information on 48 Input Shops Average 1 Area Coverage in KM (Diameter) 5.3 2 Number of Treatment/Month 145 3 Number of AI/Month 24 4 Number of group covering/Shop 9 5 Average Client Number/Month 249 6 Average Project dairy farmers/Month 107 7 Average neighboring dairy farmers/Month 142 9 Sales growth (%)/Month 15% 10 Current Average sales/Shop/month (USD) 300 11 Govt linkage available in ISC 42 12 Number of PrivateSector linkage/shop 7 13 Schedule Treatment of vet doc (percent of total shops) 50
    8. 8. Activity Progress and Next Steps 1) Review current network X 2) Select target micro franchises X 3) Build capacity (training and mentoring) X 4) Build relationship with suppliers X 5) What should the franchise look like 6) Build prototypes 7) Branding 8) Round out prototype business model 9) Monitor and optimize 10) Take to scale