Stimulating Growth of Less Developed Dairy Industries –use of Jerseys

Background

Second-largest farmer-owned agricultural cooperative in the U.S. with $14 billion in annual sales in 2012.

Products and seed wholesale, pioneered the Answer Plot® approach and #1 in crop protection and seed wholesales.

Dairy foods develops milk powder, whey, butter, cheese and other dairy products. Created the quarter-stick of butter.

Ranks first in livestock feed and animal milk replacers in the U.S.

Part of Corporate Social Responsibility Arm. Operates like a not-for-profit. Over 30 year history.

- Since 1981, we have implemented 260+ projects in 75 countries- Currently implementing 30 projects in 17 countries, mainly in

Africa and Asia

Where We Work

Opportunity Nutrition Diversification Cash flow Urban – Rural Jobs Veg matter into

Milk, Meat and MANURE

Why Dairy Dev ?

Approaches Results Best Practices Key Innovations

& Takeaways Why Jersey ?

Pro Farm Business Approach

Identifying Needs & Opportunities-Mapping

Major Road

Path

Transaction Point

Potential CustomerExisting Customer

TDDP Producer Groups

TDDP Potential Producer Groups

KEY

Competition

Business

Milk Collection Centre Approach Reduce transaction costs - Farmer

Group

Milk Production

Testing, Bulking, Chilling

Transport

Processing & Packaging

Transportation and Retail

Milk Collection Centers

Processing　plants

Supermarkets/Kiosks

Outputs markets/Services:

1. Business management

2. Transportation

3. Quality Control- Testing

4. Extension support

5. Training

1. Farm Business management

2. Input supplies

3. Financial Services

4. Extension, Services CLWS

5. Training Programs

Input markets/Services:

SERVICES FLOW : Input/Output

Transportation and Retail

- Dairy Value Chain Development project

- Zambia 2% formal Milk to 30 % -5,000 farms

- $5.5 million/year

– Zimbabwe – 748% increase in Farm Incomes

- 100% Repayment on loans

Results

Best Practice: Inclusion of Financial Opportunities Business focus , Pvt sector

- Innovative financial models to rebuild capital

- Financial literacy , graduation

- Achievable terms

- No hand-outs

- Cost/ benefit

- Link Pvt sector-

Key Take away : Diversity of Financing

MCC Cattle Bank Facility

VSL

Key Take away: Business Model

- Building business confidence Takes time Importance of trust between the farmers, milk bulking centers and

milk processors MCC’s without business acumen struggle with interpreting analysis

- Overcoming handouts Takes time but is possible Managing expectations with pro-business approach

- Individual ownership of assets Avoid communal ownership Individual investment, no donation Financing to support individual owners

Which Breed -90% of Breed in the feed

Right cow for Profit = Match Fodder ResourcesType -Example

Mature Size

Milk Yield

Fodder LOW

Fodder Medium

FodderHigh

Indigi Small Low

Jersey X

Small Medium Excellent

Jersey P Small High

G RD H X

Medium Medium Fair Good

Gu RD P Medium High Risky

Host Pu Large High Danger High Risk

Jersey Breed of choice?

- Easy Calving

- Bomb proof

- Heat Resistance Smooth coat

High components

High Feed to milk

- Fertility

- Size

- Temperament

- Type -Longevity

Example from Mixed Commercial Herd in Zambia

Calving Annual

Milk Yield

Type

No cows

Average

B.Fat %

Bfat Kg

Interval

Milk Prod

Per LWT Kg

Holstein Pure 82 4714 3.4% 160.3 449 3832 6.97 550

               

Holstein X Bred 45 4383 3.8% 166.6 420 3809 7.62 500

               

Jersey X Bred 38 4226 4.5% 190.2 375 4113 9.14 450

               

Jersey 47 3998 4.8% 191.9 380 3840 10.97 350

Jersey Next Steps ?

- Promotion

- Stabilized Cross ?

- Milk/Longevity

- Cost/Ben

- Availability AI

- Milk Pricing

THANK YOU