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Sidai Africa Ltd
A new approach to livestock service
delivery
Dr Christie Peacock
Founder and Chairman
Sidai Africa Ltd
The problem for livestock farmers
Lackofaccessto:
qualityinputs
effectiveadvice
reliablemarkets
Post 1990’s - Two worlds
Dairy/poultry areas
Unregulated private sector
anything goes
Arid and semi arid areas
Short-term donor- funded
subsidies distort local market
Drug quality
Drug type % below
manufacturing
standard -
Cameroon
% below
manufacturing
standard -
Senegal
Trypanocidal
drugs
100 70
Anthelmintics 52 13
Antibiotics 71 93
Average 69 67 (43-61%)
Toxic cycle of drug misuse &
farmers wasted money
Poor quality
manufacturing
Poor transport
and handling
Inaccurate
diagnosis
Incorrect dosage
& administration
Poor outcomes &
drug resistance
Good quality
manufacturing
Incorrect
product
Drug resistance
e.g. Trypanocidal drugs
Drug resistance
e.g. Trypanocidal drugs
Zambia
• T. congolense - Diminazene resistance increase
from 13% in 1996 63% 2003
Delespaux et al (2008)
Kenya & Somalia
• T. vivax resistant to all drugs except
Diminazene aceturate
Schonefield, Rottcher & Moloo (1987)
A solution- Sidai Africa Ltd
Sidai Africa Ltd is a social
business offering:
quality veterinary and
livestock services
through a network of
branded franchises
owned by
qualified personnel
Focus on
• preventing disease
• financial viability
Unregulated, unfair competition force private vets to
become input shop keepers competing on price alone
Sidai turns them into professional solution
providers
Sidai’s business format franchising model
Franchise
Franchise Franchise
OPEN NEW VALUE
CHAINS
•Livestock traders
•Food processors
•Supermarkets
FRANCHISEE VALUE
PROPOSITION
•Source and purchase products
•Branding & marketing
•Business training & IT
•Technical training, diagnostics
• Access to competitive finance
•New business opportunities
FARMERS FARMERSPASTORALISTS
Why franchising ?
• Quality assured products and services
• Offers farmers choice -> Drives out
malpractice
Quality-assured
services
• Ease of entry `Business in a Box’
• Greater chance of business success
Scalable and
durable
• Increased buying power of the network
• Opens up marketing and processing
opportunities
Economies of
scale
Sidai footprint after 18 months
Somali
Pastoral area
North East
Dairy
area
North
Rift Valley
Maasai
pastoral
Narok &
Kajiado
Eastern
38 Franchises & Distribution Hubs
60,000 customers
Sidai: a brand farmers can trust
Revolutionise customer service
From this......
Open farmer-friendly, information-rich interior,
prices displayed - farmers meet qualified people
Transforming retail
space into a learning
environment
Improving current agro-vet practice
Current practice Sidai practice
Treat symptoms Prevent disease through good
feeding, management and routine
vaccination
Poor quality products Good quality products
Remote diagnosis Accurate diagnosis using mini labs,
PAD tests etc
No farmer training Regular farmer training and support
to co-ops, groups etc
Selling on price Adding value to product through
training and advice
Transactional relationship with
farmer
Lifetime relationship with farmer
Dr Tiony, Kapsabet franchisee
“Farmers like the new layout and heard about Sidai on the radio, I
have doubled my customer numbers in 6 months. I now offer
vaccination and farmer training services. Soon I will have a small
diagnostic lab”
Branded outlet Qualified staff
Bringing sustainable veterinary services to remote communities
Shukri Selase Sidai franchise Garba-Tula, North East Kenya
Bringing financially sustainable
livestock services to remote locations
Sidai – Garissa market
Sukri Selase – Sidai
Garba Tula
• Agent
• Agent
• Agent
• Agent
• Agent
Reaching the ‘last mile’ through
Sidai Business Hubs
Farmers
Farmers
Farmers
Sidai
Distribution Hub
•Agent
•Agent
•Agent
•Agent
Taking services onto farms - not just a shop
Building a self-financing ethical extension service
Farmer training
AI, Vaccination, Diagnostics
Herd Health Packages
Sidai Franchise Kitengela
• Started with one livestock
technician & motorbike
• Now wants to add 2
extension agents as they
are driving business
growth
Challenges of building a
fair & sustainable input and knowledge
supply chain and distribution network
• Short-termism –
input suppliers &
donors
• Need sustainable
pricing along the supply
chain
What is a fair margin for
Shukri?
A fair & sustainable input supply chain
Manufacturers
Importers
Rural service-
providers
Farmers
The future of livestock service delivery
PRIVATE GOODS
• Improved nutrition,
breeding, reproduction,
housing etc
• Routine vaccination &
preventative & clinical
health care
• Market information
• R&D new products
• Conservation of indigenous
breed traits
PUBLIC GOODS
• National disease surveillance
and eradication of trans-
boundary diseases
• Regulation of feed, drug,
semen input markets and
service providers
• Food hygiene & public health
• Infrastructure roads, crushes
etc
• Research on goods not
researched by private sector
PUBLIC-PRIVATE
PARTNERSHIPS
Sidai’s Vision
More secure and profitable rural livelihoods

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Sidai africa ltd a new approach to livestock service delivery

  • 1. Sidai Africa Ltd A new approach to livestock service delivery Dr Christie Peacock Founder and Chairman Sidai Africa Ltd
  • 2. The problem for livestock farmers Lackofaccessto: qualityinputs effectiveadvice reliablemarkets
  • 3. Post 1990’s - Two worlds Dairy/poultry areas Unregulated private sector anything goes Arid and semi arid areas Short-term donor- funded subsidies distort local market
  • 4. Drug quality Drug type % below manufacturing standard - Cameroon % below manufacturing standard - Senegal Trypanocidal drugs 100 70 Anthelmintics 52 13 Antibiotics 71 93 Average 69 67 (43-61%)
  • 5. Toxic cycle of drug misuse & farmers wasted money Poor quality manufacturing Poor transport and handling Inaccurate diagnosis Incorrect dosage & administration Poor outcomes & drug resistance Good quality manufacturing Incorrect product
  • 6. Drug resistance e.g. Trypanocidal drugs Drug resistance e.g. Trypanocidal drugs Zambia • T. congolense - Diminazene resistance increase from 13% in 1996 63% 2003 Delespaux et al (2008) Kenya & Somalia • T. vivax resistant to all drugs except Diminazene aceturate Schonefield, Rottcher & Moloo (1987)
  • 7. A solution- Sidai Africa Ltd Sidai Africa Ltd is a social business offering: quality veterinary and livestock services through a network of branded franchises owned by qualified personnel Focus on • preventing disease • financial viability
  • 8. Unregulated, unfair competition force private vets to become input shop keepers competing on price alone Sidai turns them into professional solution providers
  • 9. Sidai’s business format franchising model Franchise Franchise Franchise OPEN NEW VALUE CHAINS •Livestock traders •Food processors •Supermarkets FRANCHISEE VALUE PROPOSITION •Source and purchase products •Branding & marketing •Business training & IT •Technical training, diagnostics • Access to competitive finance •New business opportunities FARMERS FARMERSPASTORALISTS
  • 10. Why franchising ? • Quality assured products and services • Offers farmers choice -> Drives out malpractice Quality-assured services • Ease of entry `Business in a Box’ • Greater chance of business success Scalable and durable • Increased buying power of the network • Opens up marketing and processing opportunities Economies of scale
  • 11. Sidai footprint after 18 months Somali Pastoral area North East Dairy area North Rift Valley Maasai pastoral Narok & Kajiado Eastern 38 Franchises & Distribution Hubs 60,000 customers
  • 12. Sidai: a brand farmers can trust
  • 14. Open farmer-friendly, information-rich interior, prices displayed - farmers meet qualified people Transforming retail space into a learning environment
  • 15. Improving current agro-vet practice Current practice Sidai practice Treat symptoms Prevent disease through good feeding, management and routine vaccination Poor quality products Good quality products Remote diagnosis Accurate diagnosis using mini labs, PAD tests etc No farmer training Regular farmer training and support to co-ops, groups etc Selling on price Adding value to product through training and advice Transactional relationship with farmer Lifetime relationship with farmer
  • 16. Dr Tiony, Kapsabet franchisee “Farmers like the new layout and heard about Sidai on the radio, I have doubled my customer numbers in 6 months. I now offer vaccination and farmer training services. Soon I will have a small diagnostic lab” Branded outlet Qualified staff
  • 17. Bringing sustainable veterinary services to remote communities Shukri Selase Sidai franchise Garba-Tula, North East Kenya Bringing financially sustainable livestock services to remote locations Sidai – Garissa market Sukri Selase – Sidai Garba Tula
  • 18. • Agent • Agent • Agent • Agent • Agent Reaching the ‘last mile’ through Sidai Business Hubs Farmers Farmers Farmers Sidai Distribution Hub •Agent •Agent •Agent •Agent
  • 19. Taking services onto farms - not just a shop Building a self-financing ethical extension service Farmer training AI, Vaccination, Diagnostics Herd Health Packages
  • 20. Sidai Franchise Kitengela • Started with one livestock technician & motorbike • Now wants to add 2 extension agents as they are driving business growth
  • 21. Challenges of building a fair & sustainable input and knowledge supply chain and distribution network • Short-termism – input suppliers & donors • Need sustainable pricing along the supply chain What is a fair margin for Shukri?
  • 22. A fair & sustainable input supply chain Manufacturers Importers Rural service- providers Farmers
  • 23. The future of livestock service delivery PRIVATE GOODS • Improved nutrition, breeding, reproduction, housing etc • Routine vaccination & preventative & clinical health care • Market information • R&D new products • Conservation of indigenous breed traits PUBLIC GOODS • National disease surveillance and eradication of trans- boundary diseases • Regulation of feed, drug, semen input markets and service providers • Food hygiene & public health • Infrastructure roads, crushes etc • Research on goods not researched by private sector PUBLIC-PRIVATE PARTNERSHIPS
  • 24. Sidai’s Vision More secure and profitable rural livelihoods