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Dairy hubs in East Africa: Lessons from the East Africa Dairy Development project


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Presentation by Isabelle Baltenweck and Gerald Mutinda at a 'livestock live' talk held at the International Livestock Research Institute (ILRI) Nairobi campus on 26 June 2013.

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Dairy hubs in East Africa: Lessons from the East Africa Dairy Development project

  1. 1. Dairy hubs in East Africa: Lessons from the East Africa Dairy Development project Presented by Isabelle Baltenweck and Gerald Mutinda at a „livestock live‟ talk ILRI Nairobi, 26 June 2013
  2. 2. East Africa Dairy Development Project Factsheet  Scope  Duration: Jan 2008-Jun 2013  Budget: USD50 M (BMGF)  Investment fund: USD5.0m  BMGF: USD2.5m  Heifer: USD2.5m  Partners  BMGF  HI - lead  TNS - business  ILRI – knowledge-based learning  ABS – genetics & breeding  ICRAF – feeds & feeding  Structure (120+ staff)  Country offices  Kenya  Rwanda  Uganda  Regional office
  3. 3. EADD Vision and Objectives Vision Transform the lives of 179,000 smallholder farming families (approximately 1 million people) by doubling their household dairy income in 10 years. Objectives • Harness information for decisions and innovation • Expand access to markets • Increase productivity and efficiencies of scale
  5. 5. Advantages of the hub approach ■ Improved access to inputs and services – Physical availability – Quality – Price (bulk purchase) – Possibility to purchase on credit using the “check-off” system ■ Improved access to milk market – Chilling plant – Or bulking raw milk centre (traditional hub)
  6. 6. EADD achievements 124% 0 1 2 3 4 5 6 7 8 2008 2012 2008 2012 2008 2012 Kenya Uganda Rwanda Dairy income (USD/HH/day) 164% 64% • About 200,000 farmers registered, although only 1/3 active suppliers at any given time • Increase in household dairy income in all 3 countries • 82 hubs supported, 17 hubs being „graduated‟ 20% 35% 36% 8% Exit types (%) Graduation (High performance) Phase Over to EADD-2 Phase over to other players Phase out (peri urban TM and poor performing)
  7. 7. From hub model to hub approaches 1. Hubs centered around provision of inputs and services 2. Hubs centered around bulking without cooler 3. Hubs centered around chilling plants
  8. 8. Organization of extension services and sources of funding, by stage Stages Person in charge of extension services Sources of funding Stages 1 and 2 „Liaison‟ officer, possibly a Board member or the PO key staff coordinates extension services (such appointees are explicitly tasked with that responsibility and their capacity is enhanced accordingly via EADD Support) Training and other extension services are fully paid by EADD, but organized/ managed by the PO. EADD and other players provide much of the funding but this time build the POs capacity and thus EADD plays a facilitative role. Stage 3 A PO staff coordinates extension services as part of other duties, e.g. CP manager in charge of extension if s/he has competence PO starts cost sharing on reducing scale for EADD Stages 4 and 5 Full time qualified staff Extension costs partly or fully paid for by PO
  9. 9. Gender in EADD EADD I Proposed for EADD II Gender analysis By product of the baseline “Know Her” - Gender analysis at various levels of the value chains Attention to gender (and youth) limited “Design for Her” - Gender mainstreamed in all Major Objectives + 1 Objective on Gender and Youth Empowerment Partner in charge HI All partners - gender is mainstreamed in all Major Objectives Activities Some Embedded in other activities based on analysis of gender based constraints Monitoring & Evaluation Limited “Be accountable to Her” - Sex and age group disaggregated monitoring template Profile case studies to gain deeper understanding of outputs especially at HH level Evaluation- undertake thematic studies on gender and youth
  10. 10. Stage Gate • The stage gate tool scores sites on a 0 to 100 scale, indicating progress towards sustainability. • The business component includes 6 dimensions (business start-up, governance, value proposition to farmers, value proposition to market, profitability and capital structure) while the production component includes 5 dimensions (nutrition, genetics, animal health and management, milk quality and extension services structures). • Site scores determine stages, with sites below 20% in Stage 1, those between 21% and 40% in Stage 2, 41% to 60% in Stage 3, 61% to 80% in Stage 4 and above 80% in Stage 5.
  11. 11. Stage Gate • On average for the 3 countries, the annual rate of change is 8.3 points per year, which translates into a site reaching stage 4 (or 60 points) in 7.3 years. • Sites in Kenya and Rwanda progress significantly faster than Uganda sites. • Kenya sites move on average at the rate of 9.8 points per year, Rwanda 9.4 and Uganda 7.5. • Pre-existing sites progress significantly faster than all the other hub types