Strengthening the Dairy Value Chain in Bangladesh through Private Sector Partnerships
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Strengthening the Dairy Value Chain in Bangladesh through Private Sector Partnerships

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Objectives: Introduce CARE, CARE-Bangladesh and Strengthening the Dairy Value Chain (SDVC) project; Framework for private sector engagement; Examples of our work with the private sector

Objectives: Introduce CARE, CARE-Bangladesh and Strengthening the Dairy Value Chain (SDVC) project; Framework for private sector engagement; Examples of our work with the private sector

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  • Include total number of 22 upazillas
  • Productivity and capacity building also includes Feed and medicine, artificial insemination etc. what we are doing with RSP, possibly in AI research and implementation of access to inputs. Say that the coloured ones was originally thought, the project later on put emphasis on the other capacity building initiative.
  • Note that some dairy producers may sell directly to traders/whole sellers or sweetshop. Sweet produced in the rural areas can find urban markets

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  • 1. Strengthening the Dairy ValueChain in Bangladesh through Private Sector Partnerships Muhammad Siddiquee Project Director Strengthening the Dairy Value Chain CARE Bangladesh Schulich School of Business, October 20, 2011
  • 2. Presentation ObjectivesObjectives•Introduce CARE, CARE-Bangladesh and Strengthening theDairy Value Chain (SDVC) project•Framework for private sector engagement•Examples of our work with the private sector 2
  • 3. CARE – An Overview Global emergency response and development organization CARE offices around the Created in 1946, 60 plus years world Network of 12 national members Operates in 70 countries 1000 projects, 14,500 staff  over 95% nationals. 50 million plus beneficiaries each year We seek transformational changes Partnerships with multiple stakeholders 90% resources support program activities. 3
  • 4. CARE – In Bangladesh BASIC FACTS PROGRAMS- In Bangladesh for 55 years !!! Health / Education / Food Security / Economic Dev / WATSAN- Working in Poorest districts - One third of geography- Close to a Million BoP poor clients PROGRAMMING STRENGTHS: We - Analyze underlying causes of poverty - Are guided by “theories of change’ - Foster a learning atmosphere - Encourage bottom-up Innovation - Over 50 PARTNERSHIPS Private Civil Society Government Academics Organizations SectorThey build in trust with CARE in Bangladesh: 4
  • 5. Our Impact GroupsMarginalized women & girls Extreme poor people in rural areas Marginalized groups in urban areas Climate change and disaster vulnerable poor How do we do it? CARE’s Mission CARE Bangladesh amplifies the voices of the poor and marginalized inways that influence public opinion, development practice, and policy at all levels. This happens as knowledge drawn from our grassroots and global experience ischanneled through purposeful relationships with civil society, government, and the private sector. 5
  • 6. Strengthening the Dairy Value Chain• Bill and Melinda Gates Foundation funded dairy value chain project (2007-2012) to double-dairy related incomes of 35,000 small farmers in northwest Bangladesh• Working with the private sector at all levels of the value chain towards sustainable solutions 6
  • 7. SDVC Project Region 7
  • 8. Target Dairying Households• Hamida Begum is married, has three children, works as a day laborer and tends her family’s two cows• Average Household: – Very poor – Own 0.75 acres of land – $25 monthly income – 1-3 cows• 79% of SDVC farmers are women 8
  • 9. Bangladesh Dairy Value Chain 9
  • 10. Challenges in the Dairy Sector• Bangladeshi Dairy Sector/Livestock – Part of a large agro economy/ agro residue based – Smallholder farmers account for majority of national production, but rely on subsistence methods – 30% of national milk demand met by imported powdered milk – Limited access to productivity enhancing inputs and markets – Collectors and collection systems reduce trust and milk quality – Gender norms – Lack of a supportive policy environment 10
  • 11. Theory of Value Chain Enhancement 11
  • 12. Target and impact group Current (% of women)Total milk producing (participating) 36,397 (83%) Household Total milk producer group 1182 Farmer Leader 3425 (71%) Milk Collector 308 (9%) Livestock Health Worker (LHW) 201 (23%) Information Service Center (ISC) 48 Community Agri-Shop (CAS) 102 HHs Avg. production increase 75% HHs milk consumption increase 40% # of groups engaged in savings 538 12
  • 13. Private Sector Engagement Framework 13
  • 14. Private Sector EngagementChallenges•Unwillingness of private sector to reach the bottom of the pyramid•Limited access to inputs and markets•Lack of transparency and trust CDVF BRAC Microfranchised •Intermediary •BRAC Dairy Village Input Shops organization •AI •One-stop service centers •Aim to provide •Transaction – Feed community veterinary Transparency – AI service – Animal health services – Medicines •Links to markets – Information 14
  • 15. CDVF Gateway AgencyOpportunity – Community Dairy Veterinary Foundation – Successful gateway agency brokering between informal and formal sector – Currently operating with donor funding – Potential to scale through a financially self- funding model 15
  • 16. CDVF Gateway AgencyResponse – Built relationship with CDVF founder – Replicated model amongst poorest farmers – Co-funded a business plan and strategic plan to transition from donor organization to financially self-reliant social enterpriseChallenge – Couldn’t make the case to the private sector – Ultimately walked away 16
  • 17. Value Chain Transaction TransparencyChallenges – Lack of transparency across the dairy sector in formal sector purchasing practices – Collectors and collection practices – Disincentive for quality milk production 17
  • 18. BRAC Dairy and VC TransparencyResponse and Results – Worked with BRAC to understand their constraints – Risk for BRAC to acknowledge problem (a destructive innovation) – Trust building and patience – Piloted fat testing meters, expanding – Potential to transform purchasing practices across the sector, benefiting smallholders, quality 18
  • 19. Micro-franchised Diary Input ShopsChallenges – Lack of access to inputs • concentrate feed • animal health services • medicines • artificial insemination – Gap in the value chain Business relationship versus partnership 19
  • 20. Micro-franchised Dairy Input ShopsResponse and Results – Worked to ensure input shop owners are trusted – Community members (farmer leaders, paravets) – Provided business and technical training – Moving toward a micro- franchise model – Farmers willing to travel further to get inputs from someone they trust 20
  • 21. Micro-franchised Dairy Input Shops 21
  • 22. Thank You Muhammad Siddiquee Project Director Strengthening the Dairy Value Chain CARE Bangladesh 22