Participatory Market Mapping participation making markets work for marginalised dairy farmers in Nepal

The Markets and Livelihoods Programme how can markets become a means to prosperity?

Our Main Principles Participation Systemic Thinking Facilitation

Participation

Systemic Thinking

Facilitation

The Market Map understanding market systems bringing market actors together

understanding market systems

bringing market actors together

BUSINESS ENVIRONMENT MARKET CHAIN INPUT AND SERVICE PROVIDERS THE ESSENCE OF THE MARKET MAP

Participatory Market Mapping Workshops dialogue and analysis finding blockages and opportunities building trust (and social pressure too!) moving towards joint action promoting ownership building on their resources and interests

dialogue and analysis

finding blockages and opportunities

building trust (and social pressure too!)

moving towards joint action

promoting ownership

building on their resources and interests

How was it done? Work with local partners (initial trust and basis for future implementation) Market mapping training for partners Preliminary market mapping (with the partners) Participatory Market Mapping Workshops (by the partners)

Work with local partners (initial trust and basis for future implementation)

Market mapping training for partners

Preliminary market mapping (with the partners)

Participatory Market Mapping Workshops (by the partners)

Who Participated? (Pre-empowered) farmers Cooperatives’ leaders Microfinance institutions and two large banks Gov’t: Forest, Agriculture and Livestock Veterinaries Intermediaries Seven political parties Local NGOs and INGOs working in the four districts

(Pre-empowered) farmers

Cooperatives’ leaders

Microfinance institutions and two large banks

Gov’t: Forest, Agriculture and Livestock

Veterinaries

Intermediaries

Seven political parties

Local NGOs and INGOs working in the four districts

30% 20 -30% 10 % 20-30% 70-80% 15% 15- 20% Access to Forest (fodder) Policy on AI services Milk supply “holidays” Financial Policy of MFIs Dairy subsidy policy Small holder dairy farmers in region (semi-commercial): - Number = 60K-70K - Vol:300K–350K L/d - Av.price: Rs. 26-28/L Urban Cooperatives - Total number: 15-20 - Total Vol: 50K L/d - Av. price: Rs. 28 - 30/L Rural Cooperatives: - Total number: 100+ - Vol: 100K–150K L/d - Av. price = Rs. 28–30/ L District Level Collection Facilities: Number: 7 - 8 Total Vol: 100K L/d Av. Price: Rs. 30 – 32 / L Small Dairies: Number: less than 10 Total Vol: 10K L/ day Av. Price: Rs. 28-30/L Private chilling vats & collectors: Number: 4 – 5 Vol: <10K L/d Price:Rs30(TBC) Fodder/ Grass/ Feed, pasture improvement info, seeds Transport Services (from large trucks to human-powered transport) Dairy equipment and maintenance Breeding stock Potential small holder dairy farmers in region (non- commercial production level): - Number: 200K– 300K - Potential: 1M L/d Medium/large dairy farmers in region: - Total number: 100 - Vol: 25K-30K L/d Upcoming large processor Chitwan Dairy (Chitwan) Projected Vol: 150 K L/d Large processors (Total Vol: 425K L/d) - Dairy Dev. Corp. (150K L/d) - Sujal Foods (100K L/d) - Small processors (50KL/d) - Himalayan dairy (100K L/d) - Sita Ram Gokul (25K L/d) Financial products for poor farmers (e.g. loans, insurance, revolving funds) etc Milk testing technologies Info & knowledge (public and private; mass media and targeted communication and training) Artificial Insemination Services (public and private) Animal health advice and drugs (public and private) Inadequate infrastructure (roads, water, electricity) Pricing scheme based on fat and protein content Conflict, strikes and bandhs Technical skills: improved grass, modern dairy practices, basic business management Fresh Milk market Urban Location: Kathmandu, Chitwan, Pokhara Vol: 400K–500K L/d Price: Rs. 34 -38/L Powdered Milk Market Vol: 2.4 MT/day Price: Rs. 30 -34/L Processed Milk Products Vol: 10K L/d (TBC) Price: Rs. 30 -34/L Rural Fresh Milk mrkt Location: Chitwan, Dhading, Tanahu, Gorkha Vol: 70K L/d Price: Rs. 30 -34/L Mass migration of youth

Challenges Empowerment: how much? what? time? Power dynamics Conflict context (Nepal) Finding the right “hooks” Focus on price Mistrust and misconceptions Data collection and display The art of facilitation

Empowerment: how much? what? time?

Power dynamics

Conflict context (Nepal)

Finding the right “hooks”

Focus on price

Mistrust and misconceptions

Data collection and display

The art of facilitation

Our Investments £10,000 for… 6 months 2 full-time staff Studies Meetings and Workshops Field trips

£10,000 for…

6 months

2 full-time staff

Studies

Meetings and Workshops

Field trips

Main impacts New financial products for farmers Competition => driver to improve products More responsive buyers (Sujal Food) Strengthening of cooperatives and farmer groups Our partners using “our” principles, methods and tools in other projects

New financial products for farmers

Competition => driver to improve products

More responsive buyers (Sujal Food)

Strengthening of cooperatives and farmer groups

Our partners using “our” principles, methods and tools in other projects

Key Lessons Participation and looking at the whole picture of the market can produce cost-effective benefits for large numbers of marginalised producers (impact at scale) in short periods of time and build the foundations for sustainability

Participation and looking at the whole picture of the market

can produce cost-effective benefits

for large numbers of marginalised producers (impact at scale)

in short periods of time

and build the foundations for sustainability

Key Conditions: If there is market demand If marginalised producers are empowered to engage with other market actors If market actors are interested If we behave as facilitators

If there is market demand

If marginalised producers are empowered to engage with other market actors

If market actors are interested

If we behave as facilitators

Many thanks to the Nepal team who are facilitating this process! Sharad Rai: Senior Project Manager Deepak Khadka: MLP Team Leader in Nepal

AND THANK YOU VERY MUCH FOR YOUR SUPPORT! International Markets and Livelihoods Programme