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Accelerated Value Chain Development (AVCD) Dairy Component

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Presented by James Rao, ILRI, at the AVCD End of Project Conference, ILRI, Nairobi, 26–27 April 2018

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Accelerated Value Chain Development (AVCD) Dairy Component

  1. 1. Accelerated Value Chain Development (AVCD) Dairy Component James Rao, ILRI AVCD End of Project Conference, ILRI, Nairobi, 26–27 April 2018
  2. 2. PROJECT GOALS AND OBJECTIVES GOAL improving diet diversity, food security and rural incomes for 38,000 smallholder OBJECTIVES i. Increased milk productivity and production among 38,000 smallholder dairy households ii. Enhanced market access via linkage of 20,000 smallholder dairy households to diverse milk markets iii. Improved access to diverse and quality food and change in nutrition-related behavior among 30,000 households
  3. 3. • Project implemented in 9 counties • Six counties in Western/Nyanza regions • Migori, Homa Bay, Kisumu, Busia, Vihiga & Siaya • Three (3) counties in Lower Eastern regions • Kitui, Makueni & Taita Taveta • Through consultative engagement with county governments • Thirty five (35) sub-counties were selected for project implementation • This covers 108 wards • Sites considered non-traditional dairy areas • Limited dairy farming & low milk production • Implementing partners include: • County governments • TechnoServe • Heifer Project Kenya • Farm Inputs Promotions (FIPS) – Africa PROJECT SITES & IMPLEMENTATION
  4. 4. 2. Higher prevalence of ECF among other diseases discouraging adoption of improved breeds Suitable vector conditio n Few service provide rs High mortality of improved cows High ECF prevalenc e High treatment cost Few improved cows Higher cost of production Few input & service providers Low productiv ity Low milk supply Less marketab le surplus Less returns from dairy enterpris e Less investme nt in dairy 1. Vicious cycle of low adoption and high cost of production 3. Vicious cycle of low productivity and low investment in dairy COUNTY DEFINING CHARACTERISTICS
  5. 5. COUNTY DEFINING CHARACTERISTICS Nutritional status of children under 5 years of age Burden of malnutrition in project counties • Malnutrition is a public health concern in the counties of operation • Diets of children and women are not diverse and predominantly starch-based • Animal source foods are nutrient dense but not optimally consumed by women and children
  6. 6. WHAT HAVE WE DONE?
  7. 7. More improved cows Low cost of production Input & service providers crowded in 1. Vicious cycle of high adoption and low cost of production REVERSE THE VICIOUS CYCLES Accelerated breeding based on hormone synchronizations (FTAI) • Refresher training to existing AI service providers on FTAI • Subsidized service – AVCD availing hormones; county government supplying semen • Trained new AI service providers in areas with low density • Partnered with county governments to equip newly trained AI service providers • Introduced bull schemes in carefully selected areas with almost no reach of AI Accelerated breeding
  8. 8. 2. Less incidences of ECF; saving costs; less disease burden; improved productivity REVERSE THE VICIOUS CYCLES Securing breeding gains via ECF vaccine • Introduced ECF vaccine via a 20% subsidy • Trained ECF vaccinators • Provided incentives to vaccinators via a seed vaccine • More vaccine suppliers now crowding in to cash in on growing demand • Some county governments investing in further subsidy Introduce ECF vaccine Trained local vaccinato rs Low mortality & reduced disease burden Local vaccine supply More vaccinato rs
  9. 9. 3. Vicious cycle of high productivity and more investment in dairy enterprise REVERSE THE VICIOUS CYCLES Enhancing capacity for improved productivity • Introduced more nutritious & high yielding fodder varieties • Grassroots extension services via village volunteer livestock extension workers (VBDAs/PFTs/Agro-dealer agents) • VBDAs/PFTs/agents backstopped by technical county and agro-dealer staff • Agro-dealer innovations and linkages to enhance input access High productivit y More milk supply Market -able surplus Higher returns More investm ent in dairy Improv ed fodder varietie s Improve d farmer capacity More househol d consumpt ion Agro- dealer innovati ons
  10. 10. FORMALIZING THE INFORMAL MILK SECTOR Market system facilitation for enhance business efficiency • Support milk aggregators to enhance their governance and financial management • Support aggregators to develop and implement strategic and business plans • Supporting milk traders to achieve compliance – Linkages with equipment suppliers to aid acquisition of pasteurizer • Re-brand their shops and adopt hygienic milk handling practices
  11. 11. • Agri-Nutrition trainings cascaded from the County level to the community • Sensitizing DVC actors on agri-nutrition and importance of increased household milk consumption via a 3-tier ToT approach County/Sub County Officers MOA/MOH Lead Farmers Value Chain Actors Sensitized Community Health Extension Workers Community Health Volunteers Mother support group NUTRITION EDUCATION
  12. 12. WHAT HAVE WE ACHIEVED?
  13. 13. ADOPTION & IMPACTS OF IMPROVED FODDER - 5,000 10,000 15,000 20,000 25,000 30,000 - 500 1,000 1,500 2,000 2,500 Migori Homabay Siaya TaitaTaveta Kisumu Vihiga Makueni Busia Kitui TOTAL Uptake of improved fodder No. of Households • More than 28,000 households reached; more 2,500 acres of land under improved fodder
  14. 14. I used to get 2 liters in the morning and 3 liters in the evening before I introduced brachiaria to my cows’ menu. Today I get 5 liters in the morning and 3 liters in the evening, by blending brachiaria in my cow’s fodder mix. Brachiaria has survived where our local fodder did not make it through the dry season …….. Many farmers are all creating space for planting materials to plant when the rains come back. VBDA Stephen Nyamisi harvesting brachiaria (basilisk variety) from his quarter acre plot during February 2017 to feed his cow. ADOPTION & IMPACTS OF IMPROVED FODDER - PRODUCTIVITY
  15. 15. ADOPTION & IMPACTS OF IMPROVED FODDER - INCLUSION Opportunity for smallholder inclusion • Poor farmers with limited land: • From subsistence to high- value fodder commercialization • Mr. Gembe plans to expand area and invest in more dairy cows I sold the 1st harvest from these 6 lines and paid school fee for my son. I am now expanding the area and I plan to buy 2 dairy cows from y next harvest. We cannot even meet the demand
  16. 16. Starting with 9 youths 32 youths in the phase II 60 youths to be supporte d in total ADOPTION & IMPACTS OF IMPROVED FODDER - INCLUSION Opportunity for Inclusion • Youth as direct producers: • AVCD con-investing with youth • Women as direct producers • Women groups allocating land to fodder production • Aggregating and marketing • Further Opportunities • Equipment services by youth • Commercial aggregators
  17. 17. ADOPTION & IMPACTS OF IMPROVED FODDER – STEPPING UP Smallholder with ¼ of an acre allocated to fodder Expands to 1 acre of fodder plot: 4 crops/year = 200*4=800 bales=$2,000 @ $700 this is equivalent to 2 dairy cows Pathway to stepping up
  18. 18. ACCELERATED BREEDING – FOUNDATION FOR A BRIGHTER FUTURE 0 2000 4000 6000 8000 10000 Accelerated breeding - FTAI No. of Animals No. of Households • Many poor farmers with only local cows can upgrade and become future dairy farmers • Even farmers without cows can rent wombs from their neighbors • Service providers are creating new clients – expanding their businesses
  19. 19. ECF VACCINATION – SECURING THE BREEDING GAINS • Reduced disease burden leading to productivity improvement • Low incidence of ECF, low mortality encouraging adoption of improved cows • Expanded business opportunities for service providers bundling services – AI & vaccination 0 2000 4000 6000 8000 ECF Vaccination No. of Animals No. of Households
  20. 20. IMPACTS OF VOLUNTEER EXTENSION APPROACH This is the very cow that used to produce as low as 5 litres a day. Today I milk up to 13 litres a day The secret lies in proper feeding …..and husbandry practices such as deworming, tick control and proper housing,” “I learnt this when I was trained as a Village-Based Dairy Advisor (VBDA), and now I have seen it practically!
  21. 21. IMPROVED ACCESS TO INPUTS & DAIRY SERVICE • Agent network models (ANM): – Bulk orders/lower transaction cost – Cost saving for farmers – transport & time • Increased demand from farmers hence improved agro-dealer business Agro- dealer Agen t Agen t Individu al farmers Farm er group • Improving performance of business selling to smallholders due to shop remodeling to enhance customer interaction
  22. 22. IMPROVED BUSINESS FOR COOPS/POS - 10,000 20,000 30,000 40,000 50,000 - 500 1,000 1,500 Improvement in COOP milk intake Membership Before Membership After
  23. 23. IMPROVED BUSINESS FOR COOPS/POS - 10,000 20,000 30,000 - 500 1,000 1,500 Rongo Kasbondo Sam Malanga Butula Seke Improvment in value of sale Membership Before Membership After
  24. 24.  2,468 MoH and MoA staff trained on the applied agri-nutrition  6,530 children under 2-years reached with messages on agri- nutrition  Increase % in women who consumed 5 or more food groups per day from 46.8% to 53.1%  Hence improved diet quality and nutrition outcomes IMPROVED NUTRITION OUTPUTS & OUTCOMES
  25. 25. WHAT HAVE WE LEARNT?
  26. 26. MULTIPLE BUSINESS OPPORTUNITIES IN FODDER VC FODDER VALUE CHAIN A WATERSHED OF AGRIBUSINESS SALE OF PLANTING MATERIAL PRODUCTION AND SALE OF HAY EQUIPMENT SERVICE BUSINESS COMMERCIAL AGGREGATION OF HAY
  27. 27. FODDER PRODUCTION – AN AVENUE FOR SOCIAL INCLUSION 1. Smallholder inclusion with opportunity for stepping up 2. Youth inclusion at various nodes of fodder VC 3. Women inclusion – production, aggregation and sale
  28. 28. INCLUSIVE COORDINATED BREEDING PROGRAM – PATHWAY TO SUCCESS  Breeding is the foundation of dairy in precommercial dairy areas  While breeding is privatized, county government should play a strong convening, coordination and oversight role  Collaboration among county governments, private sector and research institution necessary for successful breeding programs  An all inclusive platform should help coordinate such programs
  29. 29. ADDRESSING MALNUTRITION VIA MULTI-SECTOR APPROACH  Fathers and grandmothers are key influences of maternal, infant and young child feeding and should be targeted for behavior change communication messages  Cost of Diet – a useful tool in the design of feasible and sustainable diets for communities  Nutrition sensitive programming through a multi-sector approach has great potential in addressing malnutrition.  Ministry of Agriculture and Health have collaborated in the implementation of the AVCD program
  30. 30. COORDINATED DEVELOPMENT INVESTMENT – INNOVATION PLATFORMS County sector coordination mechanism  Inclusive innovation platforms (IP) convened and driven by non-state actors with state participation  Forums engage and co- create pathways for value chain development  All development partners converge and identify complementarities  Avoiding duplication of efforts and waste of development resources
  31. 31. STRUCTURED FEED INTERVENTION GUIDED BY THE FEAST FEAST approach enhances ownership and technology fit  Systematic method to assess local feed resources and use  Designs interventions that optimize feed utilization and animal production  Develops interventions that are site specific  Aid ownership since it involves all stakeholders from extension staff to farmers FEASTTechfitAction What can we do about feed? Is feed the main issue? Context scores: Land, Labour, cash, knowledge, inputs What is priority commodity? Farming system Main constraints: seasonality, biomass, quality? What is the feed issue? Short list of interventions Adoptability PRA Cost benefit analysis ACTION RESEARCH Info for Techfit filters
  32. 32. SUSTAINING AVCD GAINS OPPORTUNITIES AND CHALLENGES
  33. 33. TAKING FODDER INNOVATIONS TO SCALE VIA BUSINESSES FODDER VALUE CHAIN A WATERSHED OF AGRIBUSINESS SALE OF PLANTING MATERIAL PRODUCTION AND SALE OF HAY EQUIPMENT SERVICE BUSINESS COMMERCIAL AGGREGATION OF HAY
  34. 34. INCLUSIVE COORDINATED BREEDING PROGRAM – PATHWAY TO SUCCESS  Enhanced mechanization especially via business models for equipment services  Structured business engagements that build confidence for increased investment  Contracts between producers and aggregators  Cross-value chain engagements for strengthened businesses (FVC-LVC)  Strategic feed reserves especially for fodder-deficit counties in the North
  35. 35. IMPACTS OF VOLUNTEER EXTENSION APPROACH This is the very cow that used to produce as low as 5 litres a day. Today I milk up to 13 litres a day The secret lies in proper feeding …..and husbandry practices such as deworming, tick control and proper housing,” “I learnt this when I was trained as a Village-Based Dairy Advisor (VBDA), and now I have seen it practically!
  36. 36. SUSTAINING VBDA/PFT EXTENSION MODEL VIA COOP/PO No. of farmers Area Yiel d Pric e TOTAL Purchase 100 0.25 250 250 1,562,500 Sales 300 1,875,000 NET PROFIT 312,500 No. of farmers 100 Area per farmer 0.25 No. seedlings/acre 27000 Price per seedling (KES) 0.5 TOTAL REVENUE (KES) 337,500 VBDA/PF T Clusters of COOP members Embed incentives for VBDAs to recruit more farmers
  37. 37. SUSTAINING GRASSROOT EXTENSION • Transition VDBAs/PFTs in agents under the agent network models (ANM): – Bulk orders/lower transaction cost – Cost saving for farmers – transport & time Agro- dealer Agen t Agen t Individu al farmers Farm er group
  38. 38. SUSTAINING GAINS FROM FTAI  Breeding is the foundation of dairy in precommercial dairy areas  While FTAI may have laid a foundation, gains need to be secured  County supported breeding programs are necessary  3 counties supported to develop blue-prints via inclusive platform to coordinate such programs  This needs to be done for the rest of the counties
  39. 39. AI BUSINESS CASE FOR COOPERATIVES Roun d # of semen procured Price of semen/LN from KAGRC AI charges to farmers Sale price of semen to AI providers AMOUNT retained by AI providers Income to COOP for reinvestme nt INCOME TO AI PROVIDER /S 1 200 260 1000 400 600 80,000 120,000 2 308 260 1000 400 600 123,076 184,615 3 473 260 1000 400 600 189,349 284,023 4 728 260 1000 400 600 291,306 436,959 5 1120 260 1000 400 600 448,163 672,245
  40. 40. This presentation is licensed for use under the Creative Commons Attribution 4.0 International Licence www.feedthefuture.gov www.avcdkenya.net

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