The presentation highlights current challenges in developing countries. From a business perspectives, the current situation in Africa is similar to that of India in 1945. Dairy cooperatives need to evolve, capture attention and establish a network. However, narratives and branding may impair the process.
2. Social context of the dairy industry.
A scalable model.
The role of narratives.
3.
4. “300 million East African Farmers earn less than $2 per day.”
“African Farmers produce food
“Traffic of 10-year old children is widespread in the third world.”
but are, themselves, malnourished.”
5. “Ask a customer if he cares about child slavery in cocoa plantations.”
“Ask that customer if he would pay 30 cents more for his chocolate mousse.”
“Ask your company if they would give up 30 cents of profit per mousse.”
Tarja Neuwirth, Danone
7. How can a single person tackle such huge problems?
How can a firm gather adequate resources to pursue its social mission?
How can we change systems, institutions and beliefs?
8.
9. “Milk Farmers could deliver only 1-2 litres per day.”
“Milk prices were arbitrarily determined by milk processors and corporations.”
“India was not self-sufficient in terms of milk.”
10. “A cooperative model was established inside villages.”
“The model was copied and replicated across the region.”
“Village cooperatives joined the first Milk Federation of India.”
11. “Local strikes were organized against processors and corporations.”
“Amul remained independent and farmer-owned at every organizational layer.”
“Dr. Kurien eventually became leader of a Governmental Development Plan.”
12.
13.
14. “India celebrates the birthday of the legend, Dr. Kurien, as National Milk Day.”
“He was the man with the Billion Litre Idea.”
“He revolutionised the industry producing milk powder from buffalo milk. ”
15. Is there an excessive Heroic Characterization?
16. Was the process straightforward and without inconveniences?
Was Dr. Kurien alone in the process?
Was him a real Hero? Do narratives and branding influence reality?
17. “More than 20 years were needed for farmer cooperatives to achieve recognition.”
“The White Revolution was a 30-year long and uncertain process.”
“In the end, India produced more milk than Indian customers could afford. ”
18. “Mr. Patel founded Amul in 1946. Dr. Kurien joined four years later.”
“Mr Kalaya actually produced milk powder from buffalo milk.”
“Deep political turmoil has always been present across the process. ”
19. “Farmers are trained on breeding strategy, cattle development and animal health .”
“Farmer cooperatives are taught market principles to deal with traders. ”
“In 2008, East Africa Dairy Development started a cooperative model.”
20. “True development is not the development of land, or of cows;
it is the development of men and women.”
Dr. Verghese Kurien
Thank you !
21. References
Allison, Thomas H., Aaron F. McKenny and Jeremy C. Short (2013) “The effect of entrepreneurial rhetoric on microlending investment. An examination of the
warm-glow effect.” Journal of Business Venturing 28, 690-707.
Andersson, A. R., Warren L. (2011) “The entrepreneur as hero and jester: Enacting the Entrepreneurial discourse.” International Small Business Journal 29(6), 569-
589
Dacin, M. Tina, Peter A. Dacin, and Paul Tracey (2011) "Social entrepreneurship: A critique and future directions." Organization Science 22(5), 1203-1213.
Dawkins, Paul (ed.) Stories of Change. Fellows and their Journeys . Ashoka Foundation
Dichter, T., 1999. Non-government organisations (NGOs) in microfinance: past, present and future — an essay. Case Studies in Microfinance. World Bank
Sustainable Banking Project.
Hugging, R., Thompson, P.. (2015). Entrepreneurship, Innovation and regional growth: a network theory. Small Business Economics (45), 103-128
Light, P. C. 2009. “Social entrepreneurship revisited: Not just anyone, anywhere, in any organization can make breakthrough change.” Stanford Soc. Innovation
Rev. (Summer) 21–22.
Prasad, R., Satsangi, R. (2013). A case study of Amul co-operative in India in relation to organizational design and operational efficiency. International Journal of
Scientific & Engineering Research Volume. 4(1)
Waddock, S.A., Post, J.E., 1995. Catalytic alliances for social problem solving. Human Relations 48 (8), 951–973.
Zahra, Shaker A., Eric Gedajlovic, Donald O. Neubaum, and Joel M. Shulman (2009) "A typology of social entrepreneurs: Motives, search processes and ethical
challenges." Journal of Business Venturing 24 (5), 519-532.
22. Additional Sources
Neuwirth, Tarja (2015), Danone Company Presentation, attended on 30/11/2015 at Maastricht University.
http://www.heifer.org/join-the-conversation/blog/2014/October/state-of-the-african-farmer.html
http://www.foodispower.org/slavery-chocolate/
http://www.fao.org/wairdocs/lead/x6170e/x6170e2z.htm
https://en.wikipedia.org/wiki/Verghese_Kurien
https://en.wikipedia.org/wiki/Amul
http://www.drkurien.com/content/march-24-1994
http://9dc3f407a257cfd3f7ea-d14ef12e680aa00597bdffb57368cf92.r6.cf2.rackcdn.com/eadd/eadd-2014-progress-report.pdf
http://www.heifer.org/eadd/index.html
http://www.thehindubusinessline.com/2004/09/13/stories/2004091300610700.htm
http://www.drkurien.com/biography
http://www.nationalmilkday.in
Editor's Notes
Smallhold farmers produce intensive crops. Focus on non-risky, high-revenue crops and sell them to best offerer (low prices). Lack of funds for re-investment.
There’s no infrastructure, no water, no resources. They don’t earn a living, most of their produced food is sold. http://www.heifer.org/join-the-conversation/blog/2014/October/state-of-the-african-farmer.html
Children work since their infancy, either in family-owned farms or as slaves. Children may be sold, in change of the promise for “education” and better lives. http://www.foodispower.org/slavery-chocolate/
Danone, company presentation (30/11, UM).
Discussion: What are the problems related to social enterprises? Are social enterprises scalable?
Social bricoleurs have knowledge to tackle problems in their local settings by leveraging local tacit knowledge. However, they rely on local resources and hardly scale their businesses. Specific knowledge may not be replicated in different context, resources might not be available as they depend on the individual’s local embeddedness. (Zahr 2005)
Social constructionists face the problem of managing financial and human resources, in a complex network of relations, donors, volunteers and bureaucracy. What's the trade-off between outreach and sustainability?Should you make more profit or reach new people? Why would you solve problems, if it requires energy and resources? (Dichter 1999)
Social engineers face tradition and customs rooted in people’s beliefs (Waddock 1995). They need independence, determination, vision (step-by-step) and awareness. Catalytic alliances use marketing approach, raising awareness towards a problem rather than directly solving it. Communication is as important as direct approach. You need to be recognized as “visionary”. Gray (1985) social entrepreneurs are those who can “catalyze” and “convene” attention to problems.
Are there any similarities between Africa today and India in 1945?
Obstacles are dealt with at every stage of growth. Even after becoming a governmental partner, Kurien could not affirm his model easily.
Share risk, share revenues at the village level. Provide milk for upper level. Receive aid, veterinary, instruments. They were similar to social bricoleurs: have a small problem and try to solve it, deliver milk by themselves.
Commercialization and services at the district level. Process milk and send to the market. Chilling facilities, network services: university, technology, new techniques etc. Networks as a mean to share knowledge, improve practices, share cooperative objectives among communities, reach new areas of development and tackle more social problems. (Skoll 2015)(Huggins 2015)
Commercial power and laws at national level. Marketing, management, brand and image. Entirely owned by farmers, bottom-up strategy and decisions. Difference between routine (managers) and decision (farmers). (Prasad 2013)
The image of Kurien today is spread and promoted across a variety of media.
Famous quotes about dr. Kurien. They are, at best, only half true. http://www.drkurien.com/biography http://www.nationalmilkday.in
Discussion: to what extent narratives are real? To what extent Dr. Kurien has been “herofied”? Why all entrepreneurs have the same “heroic” traits?
what’s the role of failures? (Light 2006) Is there bias against the collective action? (Light 2006)
Social entrepreneurship focuses on individuals rather than on change. Networks and cooperatives are not considered. There’s no focus on the process [could be replicated], role of team, resources and situations that influence the pattern-breaking idea. (Light 2006)
Why branding might have been used? (Anderson 2011)
Identity creates uniqueness and differentiates from self and others. Amul might have self-told kurien’s history, amplified in the media, benefit for the company, cohesion of employees and nation around the brand. Identity is a social construct, who you are juxtaposed to who you are seen to be. Press is always “who we want to be”.
http://www.drkurien.com/content/march-24-1994 Failures and dark sides are most often hidden or modified.
http://www.thehindubusinessline.com/2004/09/13/stories/2004091300610700.htm The narrative highlights Kurien’s role, but rarely the roles of his partners, supporters and farmers.
Even though we don’t know if Kurien was the hero we are told, we know that his model works and is being replicated in today’s underdeveloped countries. http://9dc3f407a257cfd3f7ea-d14ef12e680aa00597bdffb57368cf92.r6.cf2.rackcdn.com/eadd/eadd-2014-progress-report.pdf http://www.heifer.org/eadd/index.html