Influencing and Responding to Private Sector Motivations for Pro-Poor Impact in Bangladesh and East Africa
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This document summarizes a presentation about a project called the East Africa Dairy Development (EADD) project. The EADD project aims to transform the lives of smallholder dairy farmers in East Africa by doubling their household dairy incomes over 10 years. It has mobilized over 160,000 farmers in Kenya, Rwanda and Uganda into cooperative groups. Through these groups, farmers have gained access to markets, inputs, and technical assistance. As a result, farmer incomes have increased by 150-754% depending on the country. The project establishes "Dairy Hubs" which are centers that connect farmers to buyers, inputs, financial services and more in a way that creates a virtuous cycle for all.
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Influencing and Responding to Private Sector Motivations for Pro-Poor Impact in Bangladesh and East Africa
- 2. Influencing and Responding to Private Sector Motivations for Pro-Poor Impact in Bangladesh and East Africa
- 3. Private Sector Engagement for Inclusive Value Chain Development Kevin McKague Schulich School of Business, York University, Canada SEEP Annual Conference November 1, 2011
- 6. Bangladesh Dairy Value Chain
- 8. Theory of Change and Role of Intangibles
- 9. Primary Focus of Private Sector Engagement
- 10. Process of Private Sector Engagement
- 12. Thank you Kevin McKague kmckague@schulich.yorku.ca Schulich School of Business, York University, Canada
- 13. Private Sector Motivations for Pro-Poor Impact in Bangladesh and East Africa Muhammad Siddiquee Project Director, Strengthening the Dairy Value Chain CARE Bangladesh SEEP Annual Conference, November 1, 2011
- 17. Bangladesh Dairy Value Chain
- 18. Target and impact group Current (% of women) Total milk producing (participating) Household 36,397 (83%) 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 Avg. production increase (milking stage) 75% HHs' milk consumption increase 40% # of groups engaged in savings 538
- 19. Theory of Value Chain Enhancement
- 20. Private Sector Engagement Framework
- 26. Micro-franchised Dairy Input Shops
- 30. East Africa Dairy Development (EADD): A Heifer International Consortium SEEP Annual Conference Presentation November 1, 2011 Moses Nyabila, EADD (Nairobi) Project Generously Supported by the Bill & Melinda Gates Foundation
- 37. Value Gravitas Gravity Key product Leadership Economics Contracts Solidarity/collectivism
- 38. How the Hub Works – A Virtuous Cycle of Buyers & Sellers TRANSPORTERS TESTING FARMERS FIELD DAYS FEED SUPPLY AI & EXTENSION VILLAGE BANKS OTHER RELATED MEs HARDWARE SUPPLIERS CHILLING HUB
- 45. http://www.gatesfoundation.org/Pages/home.aspx www.heifer.org www.eadairy.org
Editor's Notes
- Almost studied USAID as well UNDP and IFC plus IDRC and CIDA
- This is the Bangladeshi dairy value chain Primary producing households require inputs… in this case feed, medicine, vet services and AI They need to get their milk to market through collectors and collection systems And the market in Bangaldesh consists of an informal market – tea shops, sweet shops, restaruants, hotels, informal markets – unrefrigerated – where 90% of the milk goes And the formal market of large milk processing organizations who have networks of chilling plants, collect and pasteurize, process and package milk and milk products for sale in larger urban centres
- Hot climate without village refrigeration infrastructure
- Animation to circle the three SDVC has a comprehensive theory of change to improve farmer productivity, work to improve the policy environment where opportunities exist and work with private sector organizations from the bottom to the top of the value chain We can think about characterizing project outcomes as either tangible in nature – increased revenues, reduced costs, increased access to material resources and capital – or intangible. Intangible outcomes would include aspects such as increased trust, transparency and capabilities in the value chain as well as reduced risk and uncertainty. The tangibles – economic, money, resources – and the intangibles – aspects of the relationships between value chain actors and the capabilities they possess are interrelated and combine to reduce poverty in a way that recognizes its multidimensional nature. So this is one framework for understanding the role of intangibles in a value chain approach. SDVC has many interventions to overcome obstacles in the value chain, but if we want to explicitly consider where private sector engagement is central, it is in increasing access to inputs, increasing access to markets and enhancing the rules of exchange.
- When we zoom in on these three critical components of value chain enhancement, in the case of the Bangladeshi dairy sector, we can see there are quite a diversity of organizations. We can differentiate them by size, as illustrated here. They are also diverse in terms of how they are formally constituted They also vary in terms of their experience working with the poor We could organize them in different ways, their experience is another helpful dimension But here we focus on size. Go through the diagram So this is a framework for understanding the various private sector actors in the value chain
- In terms of HOW SDVC goes about understanding, influencing and responding to private sector motivations The general process is Acquiring a comprehensive knowledge of the value chain, and for our purposes here, the interests, mindsets and resources of various private sector actors. On the inputs and market sides. From this, an understanding of opportunity spaces is developed – where is movement and change possible. By which actors. And an understanding of what it would take to make change – what incentives or resources need to be provided With an experimental, pilot-based, learning-oriented approach SDVC then works at creating sustainable models to overcome the bottlenecks and challenges in the value chain – providing access to inputs, markets and enhancing rules of exchange. With much trial and error, learning from mistakes, feedback from value chain actors, the models that are most likely to be self-sustaining are nurtured and supported
- 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.
- A small point, but USAID has been mandated by the US Congress to ensure that at least 50% of all USAID micro-enterprise funds benefit the very poor, so good to make the point that all SDVC beneficiaries are in that category.
- Include total number of 24 upazillas, 494 villages
- Note that some dairy producers may sell directly to traders/whole sellers or sweetshop. Sweet produced in the rural areas can find urban markets