EADD Annual Planning & Review Meeting- 2012 2_ARPM_2012_Presentation...EADD Annual Planning & Review...
Transcript of EADD Annual Planning & Review Meeting- 2012 2_ARPM_2012_Presentation...EADD Annual Planning & Review...
EADD Annual Planning & Review
Meeting- 2012
EADD-2 Progress Review
Alice Makochieng & Team. 25th to 30th November 2012
Mt. Kenya Safari Club, Nanyuki, Kenya
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Rwanda
Presentation Content:
Update on EADD 2 Development so far, where we are at
Approaches being used in market access and production
models (what, where, when, how many (key stats on # farmer
numbers, DFBA’s, extension/feed strategies etc),
Response to the key questions raised after Seattle including
external reviewers comments
Key partners and co-fundraising update –
Next steps and Discussion Questions
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Rwanda
EADD 2 Overarching Goal
That the lives of 480 000 smallholder farming
families is transformed through a competitive
and inclusive dairy industry in East Africa
NB: Each country then has its own vision how it is going to
fulfill the above goal
1. production and
productivity practices by
small holder farmers
2. Sustainable Natural
Resources management
3. Increased access to input s
and service provision
4. Increased consumption of
milk and other food groups
at household level
5. Appropriate Milk
1. Functional DFBAs that
effectively bulk, process
and market milk and milk
products
2. Diversified markets for
milk and milk products
3. Increased quantity &
quality milk and milk
products
4. Increased consumption of
milk, and milk products
1. Increased women and
youth access to & control
over productive assets
2. Improved gender relations
at household and
community level
3. Increased participation of
women and youth in
leadership positions at
DFBA level and beyond
1. Appropriate dairy
policies and
regulations in place
and enforced
2. Appropriate public
/private partnerships
established and
strengthened
1. Improved
knowledge
management &
communication
system in place
2. Evidence-based
knowledge and
information
available for
decision-making
Improved sustainable livelihoods of 480,000 small holder
farm families through a competitive and inclusive dairy
industry in East Africa
Leve
rs o
f ch
ange
P
reco
nd
itio
ns
G
oal
EADD ’s Theory of Change
Increased dairy income of small
holder farm families and other
value chain actors* with specific
attention to women and youth
Enhanced market driven
competitive dairy industry
that benefits smallholder
farmers
Improved food security
in dairy farmers
households
Key
ch
ange
s
(im
pac
t Le
vel)
Sustainable
dairy
production &
productivity
Expanded market
& equitable
access to markets
for dairy value
chain actors
Conducive
policy and
regulatory
environment
Learning &
knowledge
driven dairy
industry
Women and
youth
empowerment
* Value chain actors- at the DFBA level.
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Rwanda
A draft look at the nos. & funding
Country no. of Farmers
Co-Funding to be Raised
BMGF Core Funding
Total Budget USD (Millions)
Regional Office
0.00 0.0 10.5 10.5
Kenya 116 000 16.5 8.2 24.7
Uganda 43 000 12.5 6.5 19.0
Ethiopia 65 000 14.0 12.3 26.3
Tanzania 50 000 13.0 7.5 20.5
Total USD 274 000 56.00 mn. 45.00 mn. 101.00 mn.
Needs to
raise more
money!!
Funding
Gap
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Rwanda
A draft look at the nos. & funding
Country no. of Farmers
Regional Office 0.00
Kenya 116 000
Uganda 43 000
Ethiopia 65 000
Tanzania 50 000
Total 274 000
Total EADD 2 Budget 101 000 000
BMGF Funding 45 000 000
Co-funding to be raised 56 000 000
Fund-raising has to meet budget or
substantial reduction in activities and farmer
numbers
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EADD 2 : Where we are at in the proposal design
Key Activities J J A S O N D J F M
VCA finished and Concept Notes written
First write-shop Held
First Draft Submitted to Foundation
Little Rock Write-shop
EADD 2 Version 2 submitted to Foundation
Seattle Workshop held
EADD 2 Version 3 developed n submitted
Revision & Submission of version 4
Design a project that is clear, concise and above all, Bankable to Donors/Investors
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EADD2 Process Development
HQ
Regional
Country Plans:
KE, UG, ET, TZ Reaching targeted EADD Dairy Farmers
Corporate level
decisions/oversight
incl. Steering
Committee
Regional support and
partners/partnerships
Operational
implementation
BMGF mandate
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Rwanda
EADD 2 Design Imperatives
Cost
Time
IDEAL Project
Quality
Project is designed on
lowest cost; esp. in old
countries leveraging
from efficiencies in
learning. Capital
raising targets
met/optimized
Approaches being
used are customized
to the country and
adopt the best
conditions/indicators
Project devt
proposal finished
on time.
Sequencing and
timing of activities
and entry
strategies per
country
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Rwanda
EADD 2 Funding impreatives
Hub model study
results
Leverage on Learning
• Demonstrate lower cost of dong the project in Phase 2 (x-1)
• Learning led to innovation and efficiency
Leadership Gaps filled
• Under Heifer HQ and BMGF Mandate
• Underway
Co-funding targets
• Attract Private and and local investors
• Partners to fund-raise too/bring funded projects
EADD 2
•Is the Hub model delivering
and reaching farmers?
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Rwanda
Key Issues after Seattle Workshop
The definition of the Hub model and how they relate to farmer
productivity levels
State of industry evolution in each country
Production and extension models
Sustainable livelihoods and creating a competitive dairy
industry, do the two mix?
Stage-gating results and readiness for exit?
Environment & Nutrition
Partners in each country
Demand-led strategies especially in Kenya, is this a
comparative advantage? SASHA (sweet potato proposal) and overall feed strategy.
Michael Porter’s 5 forces of Industry Analysis
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EADD 2 : Dairy Industry Evolution Overview
Key Activities Kenya Uganda
Structure, number and entry of new processors into Industry
Concentrated competitive market with three large big processors and all poised for growth, investing in new facilities
Monopolistic market, dominated by Sameer
Rivalry and competition amongst processors Strong Almost a moderate
Bargaining Power of Suppliers (Farmers) Growing especially with formation of and aggregation of milk by DFBA’s Federation
Exploitative; farmer’s voices still weak
Bargaining power of Buyers (Retail) Formal market growing, retailers powers growing as formal milk market grows
Retail is small, informal milk is predominant
Availability of substitutes Local milk consumption is high Processed milk not meeting demand and regional importation is common
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EADD 2 : Dairy Industry Evolution Overview
Key Activities Tanzania Ethiopia
Structure, capacity and entry of new processors into Industry
Fragmented, small capacity of existing processors
Numerous small processors, small players
Rivalry amongst processors Weak, more imports Weak, more imports
Bargaining Power of Suppliers (Farmers) Dairy farming is not aggregated and processors collect milk from individual farmers, small Hubs
Mistrustful relationships
Bargaining power of Buyers (Retail) High Imported milk in retail, local milk sold in informal channels
Formal channel is small
Availability of substitutes High imports to meet urban demand
Consumption of local dairy products dominant as opposed to formal products. Small Imports
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Rwanda
EADD 2 Impacting on the Supply Chain
Farmers DFBA Processor Retail
Artisanal processing and niche
marketing as a minor strategy
Increased
productivity
through better
training &
extension and
BDS support
Different models of
‘Hubs’ that suit the
context Backward linkages with DFBA
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Rwanda
Three indicators of a Project Design
Designing a multi-country Regional Project has its
challenges; but also its opportunities. A good fit/test
would be to answer the following questions:
1. Can the Approaches in this project deliver?- Right
design for right conditions (strategy and size)
2. Connectivity- Can we connect with other
projects/partners in the industry? Diversify risk and
resources
3. Scalability- Can we scale up, deep and wide?
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Rwanda
Co-Funding- Partnerships Developed
Resource Mobilization
Potential Investor Partners- Ethiopia
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Name of partner Type of partner Area of intervention in
DVC Target group Potential
Budget (in
USD)
Remark
EDGET/SNV-Addis Devt Partner DVC SHs 10 million TA signed
ACDI/VOCA Devt Partner Feed Smallholder producers, dairy coops and unions
~ 6 million
ELEMTU integrated milk Inc
Value chain actor- private sector
Feed, health, breed improvement,
Smallholder producers, dairy cooperatives and unions
4 million Support Letter received
MoFA/UNDP Govt + UN agency DVC and finance Smallholders
Barry Shapiro, ILRI Strategic planning & MoA policy support unit
Policy & planning Fed MoA & Reg. board Keen interest
Ada’a Cooperative Dairy coop Feed, collection/ bulking, processing and packaging, distribution/ marketing
Dairy cooperatives and unions Keen interest
ALPPIS AI/Breeding Feed, health, breed improvement
Producers Support Letter received
LIVES/ILRI-Addis Research& Knowledge
R and D Smallholder producers 20 million Keen
TIMRET Agro Industry
Private Processor Prodt/Processing/Distribution
Smallholder producers, dairy coops and unions
Velocity dairy PLc Private Processor Collection/processing Smallholder producers, dairy coops and Unions
38-42 million Keen to set up
Selale Dairy Cooperative
Cooperatives DBH Dairy coops/unions 1.5 million USD
Main COOP
AGP Govt DVC Smallholder farmers Awarded CRGE Govt Climate Smart Agri. Keen Mama/Sebeta/Lame/Sholla
Private processors
TOTAL PROJECTION 79.5
Potential EADD Partners -Tanzania Target Institution.
Category Area of support Potential amount (USD)
Comment
Ministry LFD Public sector Policy and governance Keen to co-fund mostly in kind
Tanzania Dairy Board
Public Sector Stakeholder coordination and regulatory
0.6m Pledged
Local Government
Public Sector Extension services and rural infrastructure
2m Through DADPS estimate
MTI Public sector Policy and SME development
Follow-up required
NARS Public sector Dairy Research and dissemination– feeds and breeds
1m EAAP Program with USD3million funding
SUA/ILRI/CIAT Public/CGIAR Dairy value chain research and feeding
USD6m Close collaboration -
Potential EADD Partners- Tanzania Target Institution/org.
Category Area of support Potential amount (USD)
Comment
MIVARF project Public/Multilateral support
Market access, cold chain equipments and infrastructure
SNV NGO Organizational and Gender development in dairy
1.5m Secured
SAGCOT Private Sector Linkages with potential investors in the target milk sheds
Further negotiation
Processors Tanga Fresh, ASAS, Tan Dairies/CEFA
Private sector Support the Milk supply chain
0.6m 10% of the proposed six year investment
NMB Foundation Private Sector Financial services Piloting in Tanga milk shed – require further negotiation
Potential EADD Partners- Tanzania
Target Institution/org.
Category Area of support Potential amount (USD)
Comment
SCF – Small Scale competitive Facility
Development program
Market access support to SMEs
Currently supporting some Processors
TAMPA, TAMPRODA, SHILDA, NJOLIFA
Dairy associations
Farmer organization and empowerment
In kind contribution
Private Sector Support Program
Development Program
Farmer support in accessing financial services
Further negotiation
Total potential 11.7 mn.
Potential Investor Partners- Uganda Targeted Investor Organization Category Area of support Potential
Amount Status/comment
Dairy Devt. Authority, DDA Public sector/Regulator Policy and regulation 0.20 Keen
MAAIF (Ministry of Agric) Public sector Policy 0.30 Keen
NAADS/ATAAS Public sector National Extension 1.00 Keen
Private Sector Foundation/WB Development Partner Capacity building 0.50 Committed
District Local Government Public sector Infrastructure dev’t 2.00 Engaged
SNV/ABi Trust Development Partner Policy coordination 2.20 Engaged
UNDATA Traders Association Market access 0.10 Keen
Sameer Processor Processing/extension 1.20 Committed
Pearl Dairy Ltd Processor Processing/extension 15.00 Committed
Jessa Dairy Ltd Processor Procession/extension 0.40 keen
UCCU Farmer COOP/Processor Bulking/DFBA set-ups 4.00 Keen
Farmer Organizations (DFBA’s) Farmers Equity/Hubs Bulking & BDS 1.20 Engaged
Grameen Foundation Development Partner Advisory/extension info 0.40 Committed
ABI Trust Development Partner Value-chain financing 6.50 Engaged
Makerere University/COVAB Research & Training Training 0.10 Keen
Microfinance Support Centre Microfinance Finance 1.00 Engaged
Centenary Bank Financing Investment Fund mgmt 0.50 Engaged
Estimated Total 36.6 mn. USD 24
Potential Co-Investors for Kenya
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Targeted Investor Organization
Type of Partner Area of intervention Potential USD Amount
Remarks
UNDP Development Partner Extension 0.15 Approved
Land O Lakes Devt Partner Innovation Fund 0.1 Engaged
SNV Devt Partner Capacity building 1.0 Keen
KTDA Agribusiness Co-investment 0.1 Keen
SDCP/IFAD Devt Partner Capacity building 3.0 Keen
New KCC Processor Milk production 1.4 Commitment Letter
Tetra Pak Packaging/processor Milk production 0.5 Committed
Kenya Rural Rds Authority Public sector Roads ? TBC
CDF Funds Public sector Agribusiness ? TBC
Brookside Processor Milk production ? Keen
Nestle/Kabiyet processor Milk production ? Keen
Daima (Sameer) processor Milk production 0.4 Engaged
Buzeki/Molo Milk processor Milk production 0.3 keen
CFC Bank Bank Direct DFBA financing 5.0 Committed
Cooperative Bank Bank Direct DFBA financing 5.0 Committed
Family Bank Bank Direct DFBA financing 1.2 Engaged
Juhudi Kilimo Micro-finance Direct financing to farmers 1.0 Committed
Pearl Capital/Dyer & Blair Private Equity Venture capital arrangers 1.0 Keen
Safaricom Foundation Private sector IT /Mobile payments 0.7 New prospect
Coca Cola Private sector Water development ? New prospect
Total Potential Co-funding 16.75 mn. USD
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Potential Project Risks
• Low productivity of milk hence Hub model may have
challenges esp. in the new countries. Finding the right
market access models and milk diversion is also still a
challenge in many sites.
•Fundraising may fall short of target/timing mismatch
•Sustainability of DFBA’s is a long process to reach exit
level and embedding services e.g. extension;
•Lack of right local partners hence requiring prolonged EADD support and costly project.
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http://www.gatesfoundation.org/Pages/home.aspx
www.heifer.org www.eadairy.org